1

A

Preface

This Business project conducted from Daylight Company to have a plan small and

medium-business. This is a part of Project Feasibility study and evaluation 1203302 under the

structure of Bachelor Degree of Business Management in Tourism Program, by School of

Management, Tourism Management Major. For the report of this project provide all of the

information that investor should know about operation of organic vegetables business as well

as Introduction, Industry profile, Market feasibility Study, technical feasibility study,

financial analysis, risk management, and summary of project. Our report tell about problem

analysis and resolvable include of recommendations benefit for investors to invest.

Daylight Company hopes this project that can be build and create better profit return

for the investor.

B

Acknowledgement

First and foremost, we would like to show our gratitude to the lecturer of this course,

Aj.Chaiyawat Thongintr for the valuable advice and gave us a great opportunity to do

this report in order to get a new knowledge about project feasibility study and

evaluation in term of organic vegetables business.

Besides, we would like to thank Mae Fah Luang University for providing us

a nice environment and useful facilities to complete this report. In addition,

we would also thank all of the web site that gives us an information which related

to the topic of our report.

Finally, an honorable mention goes to our families and group members for their

supports. Without helps of the particular that mentioned above, we would face many

problems while doing this report.

C

Exclusive Summary

Daylight company entry to organic vegetable because we know the current

market trend of the market and perception of customers toward organic products. We

plant organic veggies in Suan Phuang district, Ratchaburi province. We also have a

shop in Bangkok. Our target market is customer who lives in Bangkok, supermarket and

restaurants. They are working men and women age around 25-30 years old living in

middle class. Our customer is health lover who concern and taking care of their health

and supermarket and resorts which want to sell organic vegetable to their customer. We

analyze the external environment by using PEST analysis to let we know how to behave

and also analyze five force model to let we know the competitors, customers and

competitive clearly. We have two main competitors which sell organic products similar

to us which are Thai Organic Farm and Lemon Farm Shop. By the way, we analyze our

company by using marketing mix. Our company offers six kinds of organic vegetable to

the market which are Green/Romaine Cos, Butter Head, Red Cos, Red Leaf Lettuce,

Iceberg Lettuce and Green Ock Leaf. Daylight Company comprise people who

specialist in each duty. They have well known and specific skill. The most importance

thing, we concern every process of production toward highest quality and highest

satisfaction for everyone.

D

Table of Contents

Preface ............................................................................................................................................. A

Acknowledgement ................................................................................................................. B

Exclusive Summary .............................................................................................................. C

Chapter 1 Introduction .........................................................................................................1

1.1 Background and Significance of the Project ......................................1

Table 1.1: Weather Temperature in Ratchaburi ..............................3

1.2 Project Objectives ....................................................................................................3

1.3 Benefits of project ....................................................................................................3

1.4 Company Brand and Logo ................................................................................4

1.5 Activities and Gantt Chart .................................................................................5

Chapter 2 Industry Profile ................................................................................................6

2.1 Nature of Industry ....................................................................................................6

2.1.1 History of organic farm ............................................................................6

2.1.2 Organic farm in Thailand.....................................................................7

2.1.3 Organic farm of Daylight. ................................................................... 10

2.2 Situation of Industry............................................................................................ 11

2.2.1 Marketing organic products can be classified into 4

types; ................................................................................................................................... 12

2.2.2 Size of organic markets ......................................................................... 13

2.2.3 Domestic marketing channels and organizations ............. 14

2.3 Products ......................................................................................................................... 15

2.3.1 Green/Romaine Cos .................................................................................. 15

2.3.2 Butter Head Lettuce .................................................................................. 16

2.3.3 Red Cos/Romaine Lettuce ................................................................... 16

2.3.4 Red Leaf Lettuce ......................................................................................... 17

2.3.5 Iceberg Lettuce ............................................................................................. 17

2.3.6 Green Ock Leaf ............................................................................................ 17

2.4 Vision .............................................................................................................................. 18

2.5 Mission ........................................................................................................................... 18

2.6 Business Strategy................................................................................................... 19

E

2.6.1 Corporate Level............................................................................................ 19

2.6.2 Business Level .............................................................................................. 20

2.6.3 Functional Level .......................................................................................... 21

Chapter 3 Market Feasibility Study ....................................................................... 22

3.1 Market Analysis ...................................................................................................... 22

3.1.1 General Environment Analysis ....................................................... 22

Table 3.1: Growth Rate of Gross Domestic Product:

Q1/2010 ............................................................................................................................ 23

Figure 3.1: Agriculture sector growth. .................................................. 23

Figure 3.2: Household Consumption Expenditure Growth ... 24

Figure 5: Table represents the Credit card expense and

consumer confident index (CCI) for the year 2009 – 2010. .. 25

Table 3.2: Growth rate of private consumption expenditure

classified by durable appearance. .............................................................. 25

Table 3.3: Growth Rate of Gross Domestic Product .................. 26

Figure 3.3: Agriculture Sector Growth. ................................................ 26

Figure 3.4: Household Consumption Expenditure Growth of

2Q08-2Q10 .................................................................................................................... 27

Table 3.4: Growth rate of major indicators ....................................... 28

Table 3.5: Growth Rate of GDP on Expenditure (Original) 28

Table 3.6: Private Consumption Expenditure at Current

Market Prices (Original) .................................................................................... 29

Table 3.7: Administration Information ................................................... 30

Figure 3.5: Number of Facebook users in Thailand. .................. 31

3.1.2 Competition Analysis (3C Analysis) .......................................... 32

3.2 STP Analysis ............................................................................................................. 37

Market Targeting ...................................................................................................... 38

Market Positioning .................................................................................................. 39

Table 3.11: Market Positioning .................................................................... 40

3.3 Marketing Mix Strategy ................................................................................... 40

3.3.1 Product................................................................................................................. 40

F

3.3.2 Price ....................................................................................................................... 40

Table 3.12: Price of organic vegetables per Kilogram ............. 41

3.3.3 Place ...................................................................................................................... 41

3.3.4 Promotion .......................................................................................................... 41

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3.4 Sales Forecast ........................................................................................................... 42

Table 3.13: Plantation period of organic vegetables ................. 43

Figure 3.6: Sales Forecast Year 1 .............................................................. 44

Figure 3.7: Sales Forecast Year 2 .............................................................. 45

Figure 3.8: Sales Forecast Year 3 .............................................................. 46

Figure 3.9: Sales Forecast Year 4 .............................................................. 47

Figure 3.10: Sales Forecast Year 5 ........................................................... 48

3.5 Marketing Expenses ............................................................................................ 49

3.6 Conclusion .................................................................................................................. 53

Chapter 4 Technical Analysis ..................................................................................... 54

4.1 Investment Analysis ............................................................................................ 54

4.1.1 Land and Building...................................................................................... 54

4.1.2 Vehicle................................................................................................................. 54

4.1.3 Tools and Equipments ............................................................................ 55

4.1.4 Fee ........................................................................................................................... 59

4.1.5 Depreciation .................................................................................................... 59

4.2 Production and Operations Analysis ..................................................... 60

4.2.1 Fertilizer Cost ................................................................................................ 61

4.2.2 Water Supply .................................................................................................. 64

4.2.3 Seed ........................................................................................................................ 67

4.2.4 Electricity Cost ............................................................................................. 70

4.2.5 Product Characteristic ............................................................................. 73

4.2.6 Production process ..................................................................................... 78

Figure 4.1: Production process Flowchart ......................................... 80

4.2.7 Location .............................................................................................................. 80

4.2.8 Layout .................................................................................................................. 81

G

4.2.10 Logistics Management ........................................................................ 85

4.2.11 Facility Management ............................................................................ 86

4.3 Administration Analysis .................................................................................. 87

4.3.1 Administration Expenses ...................................................................... 87

4.3.2 Organization Chart .................................................................................... 92

4.3.3 Recruitment plan ......................................................................................... 93

4.4 Conclusion ................................................................................................................ 104

Chapter 5 Financial Analysis .................................................................................... 105

5.1 Income Statement ................................................................................................ 106

5.2 Cash Flow Statement ........................................................................................ 112

5.3 Balance Sheet ......................................................................................................... 119

5.4 NPV ................................................................................................................................ 126

5.5 IRR .................................................................................................................................. 126

5.6 Conclusion ................................................................................................................ 126

Chapter 6 Risk Analysis ................................................................................................ 127

6.1 External Risk ..................................................................................................... 127

6.1.2 Economic ......................................................................................................... 127

6.1.3 Socio-cultural ............................................................................................... 128

6.2 Internal Risk............................................................................................................. 128

6.2.1 Strategic Risk ..................................................................................................... 128

6.2.2 Marketing Risk ................................................................................................. 129

6.2.3 Operational Risk .............................................................................................. 129

Figure 6.1: Insurance of AllianzCP. ....................................................... 132

6.2.5 Financial Risk .............................................................................................. 135

6.3 Conclusion ................................................................................................................ 145

Chapter 7 Summary .......................................................................................................... 146

References................................................................................................................................. 147

1

Chapter 1 Introduction

1.1 Background and Significance of the Project

Social lifestyle hurry with time and co-worker. So, fast food play role

in the city. Also it has many factors that people ignore healthy such as food, exercise,

and relaxation. Moreover, some of entrepreneur ignore quality but focus on quantity of

food. All of those factor made people unhealthy or have some problem

about healthy.

Nowadays, people attend healthy more than the past. Maybe one factor which is

healthy trend. So, there are many products about healthy to support this trend.

For examples, supplementary food, vitamin capsule and low cholesterol product.

We think that healthy trend has popular more and more in the future.

So, we see the good opportunity to do the business in this time which is food product.

We think that food is one of four requisites. People can not live without food.

Food also must have nutrition enough to support body and become a good energy.

People need to eat five groups per day which are protein, carbohydrate, vitamin, mineral

and fat. Moreover, some of food had toxin which came from vegetable.

We want people have good healthy so we will produce quality vegetable

to sale people who love healthy. It is organic vegetables. Someone may know well but

someone does not know. Organic vegetable is planting by use humus and carcass that

without toxin, herbicide and chemical fertilizer. In addition, organic vegetable has high

nutrition quality more than normal vegetable for examples, vitamin, mineral and

enzyme. The taste of organic vegetable has well and can slow down some of disease

such as cancer, heart disease and hypertension. So, organic vegetable is clean product

and high quality which is appropriate people who love healthy.

We think healthy trend are booming. It is good opportunity to do the business.

Also it has possible to do the business because people need to eat food.

Vegetable is one of ingredient of food. So, we think this is our opportunity that reaches

to successful.

2

Ratchaburi is one province in western region of Thailand. It is a best location to

planting our organic vegetables. We prefer Suan Phung, Ratchaburi because of it has

many key factors that benefit to planning. Suan Phung is highland and also has Phachee

River and brook flow via this location. We can bring this water to use in our farm. It can

save cost. Moreover, Suanphung has been plentiful from accumulation of bregs from

the flow of Major River into Thai Bay. It included Tha Jeen River, Phet River, Bang Pa

Kong River and Chao Phraya River in order to made Ratchaburi to be a low land.

When Ratchaburi has flood cause dregs. So, the soil also has organism that benefit to

our vegetable. Additionally, the weather of this location is appropriate to planting our

vegetable because of our veggies are according to Compositae family. It’s appropriate

with cold weather that average about 16-18 Celsius. It also planting well in every types

of soil. Moreover, those organic vegetables can plant all the year especially in the cold

weather. Ratchaburi is one province that located on western region of Thailand. It has

temperature in summer season average about 24-28 Celsius, rainy season average about

20-30 Celsius and winter season average about 20-28 Celsius. When we compare with

others region, we saw that the temperature of west region is appropriate location to

planting our organic vegetables.

(Source: http://www.it.mju.ac.th/dbresearch/organize/extention/book-veget/book017.html ,

http://learn.wattano.ac.th/TCH/dalad/book2.htm ,

http://www.paktho.ac.th/ratchaburi/ratchaburi2/location.htm )

3

Region Summer season

March- June

Rainy season

July- October

Winter season

November-

February

Central

Celsius

Fahrenheit

30/20

80/55

32/28

70/65

30/20

80/55

Northern

Celsius

Fahrenheit

44/46

77/56

28/20

77/56

28/24

65/56

South

Celsius

Fahrenheit

32/28

70/65

30/20

80/55

44/46

77/56

East

Celsius

Fahrenheit

28/20

77/56

44/46

77/56

32/28

70/65

West

Celsius

Fahrenheit

28/24

65/56

30/20

80/55

28/20

77/56

Northeast

Celsius

Fahrenheit

30/20

80/55

44/46

77/56

32/28

70/65

Table 1.1: Weather Temperature in Ratchaburi

(Source: http://thai.tourismthailand.org/about-thailand/weather/ )

1.2 Project Objectives

1.2.1 To study the market trend

1.2.2 To study consumer trend/behavior

1.2.3 To study about organic vegetable, technique, related factors and be able to

apply in daily life or future career

1.2.4 To study the feasibility of organic vegetable farm business

1.3 Benefits of project

1.3.1 Understand the current market trend.

1.3.2 Understand the customer need/want and their behavior when purchasing

the veggies.

4

1.3.3 Understand organic vegetable, technique and related factors that are able to

apply in daily life or future career.

1.3.4 Be able to evaluate the possibility of organic vegetable farm business.

1.4 Company Brand and Logo

Our company products are selling under the name “Healthy Veggies”

Logo:

5 1.5 Activities and Gantt Chart

Activities

1-7

/11

/10

8-1

4/1

1/1

0

15

-21/1

1/1

0

22

-28/1

1/1

0

29

/11/1

0-5

/12/1

0

6-1

2/1

2/1

0

13

-19/1

2/1

0

20

-26/1

2/1

0

27

/12/1

0-2

/1/1

1

3-9

/1/1

1

10

-16/1

/11

17

-23/1

/11

24

-30/1

/11

31

/1/1

1-6

/2/1

1

7-1

3/2

/11

14

-20/2

/20

11

Trying to find group member

Establish group

Brainstorming in order to choose the business

Finding the information of chosen business

Submit the business topic to the instructor

Identify background, objective and benefits

Identify STP, 4Ps and market analysis

Find the place for business and make layout

Technical analysis and administration

Making an advertisement

Financial analysis

Consult with financial lecturer

Edit financial analysis

Making the cover page

Risk analysis

Submit the final project

6

Chapter 2 Industry Profile

2.1 Nature of Industry

2.1.1 History of organic farm

Organic vegetables is vegetables no toxin it make not harmful for the body.

Organic farming is the form of agriculture that relies on techniques such as crop

rotation, green manure, compost and biological pest control to maintain soil

productivity and control pests on a farm. Organic farming excludes or strictly limits the

use of manufactured fertilizers and pesticides, plant growth regulators such as

hormones, livestock antibiotics, food additives, and genetically modified organisms.

Organic agriculture is a production system that sustains the health of soils,

ecosystems and people. It relies on ecological processes, biodiversity and cycles

adapted to local conditions, rather than the use of inputs with adverse effects. Organic

agriculture combines tradition, innovation and science to benefit the shared environment

and promote fair relationships and a good quality of life for all involved.

The organic movement began in the 1930s and 1940s as a reaction to

agriculture's growing reliance on synthetic fertilizers. Artificial fertilizers had been

created during the 18th century, initially with superphosphates and then ammonia-based

fertilizers mass-produced using the Haber-Bosch process developed during World War

I. These early fertilizers were cheap, powerful, and easy to transport in bulk. Similar

advances occurred in chemical pesticides in the 1940s, leading to the decade being

referred to as the 'pesticide era' Sir Albert Howard is widely considered to be the father

of organic farming. Further work was done by J.I. Rodale in the United States, Lady

Eve Balfour in the United Kingdom, and many others across the world. Organic farming

has made up only a fraction of total agricultural output from its beginning until today.

Increasing environmental awareness in the general population has transformed the

originally supply-driven movement to a demand-driven one. Premium prices and some

government subsidies attracted farmers. In the developing world, many producers farm

7

according to traditional methods which are comparable to organic farming but are not

certified. In other cases, farmers in the developing world have converted for economic

reasons.

(Source: http://extension.agron.iastate.edu/organicag/history.html,

http://www.wholegrain.com.au/wholegrain-milling-faqs.html)

2.1.2 Organic farm in Thailand

2.1.2.1 Historical development of organic agriculture

Organic agriculture is not a recent phenomenon. Local Thai farmers have

practiced traditional farming for hundreds of years. Such practice have been develop

and enriched through the farmers knowledge of the local agro – ecology and

environmentally sustainable way of farming. Despite the imposition of modern

agriculture, tradition farms continue to exist and local indigenous knowledge of

sustainable farming remain. The survival of this farm is the source of the revitalization

of modern organic agriculture in Thailand today.

The re- emergence of organic farming can be traced back to the collapse of

modern agriculture in the early 1980s. As conventional farm production was geared

toward cash- crop production with heavy reliance on agrochemicals, farmers were

exposed to market instability and health hazards. The dual cost- price squeeze drove

farmers to the edge of bankruptcy when price of agriculture product declined sharply

while production costs rose steadily. Millions of small scale farmers were driven to

indebtedness and forced off their farmland.

At the same time, the impact of the excessive use of agrochemical began to

unfold. Increasingly frequent incident of health hazards to farmers and consumers were

reported. Widespread freshwater fish diseases linked to agrochemical residue pollution

shocked the general public. From 1971- 1981 the rate of patient suffering from chemical

poisoning increase by 1,550 times.

Against this background, many farmers and local NGOs began to search for an

alternative to conventional agriculture in order to break away from the vicious circle of

8

debt and health risks. The Alternative Agriculture Network was established in 1984 as a

nation network of NGOs and farmer organization to foster alternative agriculture

activism in Thailand. It provides a discussion forum for experience sharing and policy

advocacy for sustainable agriculture, including organic farming. It has a decentralized

structure for coordination with regional grouping in the northern, north- eastern, central

and southern region of Thailand. Mr. Daycha Siripatra has serve as the honorable chair

of the Alternative Agriculture Network since the beginning.

As organic agriculture has gained more and more momentum in recent years,

several organizations specializing in organic agriculture have also emerged. Green Net

(founded in 1993) is one of the key movers in the organic agriculture movement in

Thailand in organic conversion, product development, and fair- trade marketing.

Another important organization is the Organic Agriculture Certification Thailand (ACT)

founded in 1995, which provides professional organic certification service for all farm

production as well as processing and handling operations.

On the regulatory side, the first official recognition of sustainable agriculture

occurred in the early 1990s when the seventh National Economic and Social

Development Plan (1992- 1996) expressed an interest in sustainable agriculture.

However, no concrete target or project were set up until the Eighth Plan (1997- 2001).

Until the end of the 1990s, there were no government bodies or research institutions that

were officially engaged in organic agriculture.

(Source: Organic Agriculture and Rural Poverty Alleviation, 2002)

2.1.2.2 Agricultural Sector

The agricultural sector in Thailand accounts for 9.9% of the GDP and involves

49% of the total labour force. The economic growth recorded by the country in the

1970s and the early 1980s was owed mainly to the steady expansion of the agricultural

sector. The sector not only provided for domestic food demand but also produced

substantial surpluses of some commodities for export. With 20.4 million hectares of

farmland, Thailand relies heavily on agricultural sector (ESCAP). Rice is the major crop

9

grown and Thailand is the world's biggest rice exporter. Other crops grown in the

country include: rubber, sugarcane, cassava, fruit, cashew nuts, corn, tobacco, cotton,

cocoa, peanuts, soybeans, medical plants, dairy, and fishery products. Fresh flowers,

especially orchids, are important exports. The land use is divided as follows: arable land

27%, permanent crops 7%, other 65% (FAO, 2006).

2.1.2.3 Brief overview of organic farming

According to IFOAM & FiBL (2006), there are 13.900 hectares of land under

organic management, with a share of total agricultural land of 0.07% and about 2,500

organic farms operating in the country in 2003. Some successful initiatives promoted

the expansion of organic agriculture. Although both the domestic market and exports

have been growing slowly in the last few years, Thai organic agriculture expanded

rapidly and seems to reach a take-off stage. Most organic products are exported to

Europe and the USA, but growing concerns on healthy food among Thai consumers

further contributes to an expanding demand on organic foods. In 2005, the Thai organic

market was valued at US$23 million, up from US$9.4 in 2002 (ITC, 2006).

2.1.2.4 Brief overview of key organic products

The main certified organic products from Thailand are rice, and vegetables.

There is also production of cotton, soybeans and shrimps. Almost all certified organic

products are currently exported with only a small amount sold in domestic market. The

domestic market for certified organic products is estimated to be slightly below US$ 1

million, the non-certified and health food market is estimated to US$ 75 million

(UNEP/UNCTAD, 2006)

2.1.2.5 The network

Thai farmers have practiced traditional farming for hundreds of years and was

enriched it through farmers' knowledge of local agro-ecology and environmentally

sustainable way of farming. Local indigenous knowledge of sustainable farming is still

widely spread, favouring policies aimed at promoting organic agriculture (FAO, 2006).

In 1980, the Thai organic agricultural movement was initiated by farmers and local

10

NGOS and in 1984 the Alternative Agriculture Network (AAN) was established in 1984

as a national network for sustainable agriculture and organic farming. Producer

organizations, private companies, exporters and NGOs have initiated many organic

production projects. Government policies towards organic farming have generally been

favourable. Many organic farming projects aimed at setting national standards and

certification services have been supported by local authorities (IFOAM, 2003). The

Thai Department of Agriculture (DOA) established the Organic Crop Institute (OCI)

with the aim of setting up an organic crop production standards based on the the Codex

Alimentarius Guideline of Organically Produced Food. The Department of Export

Promotion (DEP) has also funded some projects supporting organic production and

exports. Also the Department of Livestock Development (DLD) and the Department of

Land Development have both funded projects aimed at increasing organic production.

As organic agriculture becomes more popular in Thailand, several organizations

working on organic production have emerged. GreenNet and Earth Net Foundation was

founded in 1993 and is now one of the leading organizations with an instrumental role

in organic conversion. A national private certification body, the Organic Agriculture

Certification Thailand ( ACT) founded in 1995 was also set up to provide professional

organic certification services for all farm production as well as processing and handling

operations.

(Source: http://www.intracen.org/Organics/Country-Profile-Thailand.htm)

2.1.3 Organic farm of Daylight.

Daylight is a small organic farm, seed-saving center, and sustainable living and

learning center. We strive to find more ways to live a more self-reliant lifestyle by

cultivating our own food, building our own natural homes, and experimenting with low-

tech appropriate technologies. We seek to bring back the tradition of seed saving

amongst farmers and growers by collecting, propagating, and exchanging indigenous

and rare varieties. We seek to live simply and continue to learn.

11

2.2 Situation of Industry

Nowadays product from organic farm is accepted from many people because of

production method is not destroy environment and produce safe food. It makes public

and private sectors of Thailand try to produce the product organic farm of Thailand to

have a quality and reduce residues do not exceed the requirements of importing

countries because of the first objective to produce the product of organic farm are export

marketing.

The market of organic farm in Thailand is a marketing of produce. That is the

less to produce organic farm, Manufacturer have much of power to set the marketing.

Cost of product from organic farm is higher than other agricultural product 20-50

percent of product. Organic foods have high cost because of the product have insurant

about yield a fair price to manufacturer. Consumers of organic food product at higher

prices will accept no more than 15-20 percent. Channels for sale the organic food

product and customer accept are large supermarket, but in this time medium and small

supermarket will be accept to sell the organic food.

Export products of organic food in this year are increase 5,000million Baht or

expand nearly 40percent from the year 2009 with exports 3,600 million Baht.

Importance products exports are product from rice or rice, vegetable and fruit especially

asparagus, okra, green banana, pineapple, ginger, herb seeds, fruit and vegetables

processing. Importance export markets are Europe, America, Australia, and Singapore.

Demand organic food products in both domestic and export market is continued

to growth, it is an opportunity for Thailand organic food manufacturer. In the present

public sectors have policies to support production and marketing of organic in Thailand

and other country.

Product and marketing of organic farm are faster to expansion, especially in

developed countries. International Federation of Organic Agricultural Movements

(IFOM) found big marketing product of organic farm are in Europe and America, They

have marketing expansion about 96 percent of world organic farm.

12

Importance factor that make market organic farm expansion are uses of certified

organic brand from Organic Agriculture Certification Thailand (ACT) and Department

of Agriculture, this allows consumers facility, and consumer can identify different

between organic products and safety product. We have specifics retailers and they have

especially marketing policies of organic farm such as Lemon Farm. Large retailers such

as Modern Trade has started the trend direction of the organic market, it makes started

to sell organic products in supermarket such as Villa, Carrefour, Top, Emporium, and

Siam Paragon.

We have many necessary for accelerate the development of export markets,

organic farming in Thailand today such as understanding about the system of organic

certification standards, including rules and regulations governing the importance of

organic agricultural products overseas, development about technical and knowledge on

production for maintain continuity and quality are acceptable to the market,

and enhanced to control of the Thai organic agriculture to obtain registration from

the Third Country List EU.

2.2.1 Marketing organic products can be classified into 4 types;

Member Marketing:

As a form of marketing, the oldest of the organic movement. This is the direct

way to communicate between farmers, producers, and consumers. This market system is

the basic principle that consumers deal with farmers who produce, consumer purchase

the products produced organic seasonal, the consumer will pay in advance to the

farmers, after harvest production will be delivered to distribution points at the sub-

agreement. Members and consumers in the neighborhood would come to get a product

manual. In Thailand we have “Organic produce club Suphan Buri” is use this way to

sell their product.

Plaza: Mostly the plaza will alive at many people in that area such as hospital

and so on. In Thailand we have “Market Organic Food” in JJ Chiang-Mai province.

Marketing channels only: Lemon Farm shop, and Thai Sa By shop.

13

Market: Aor Tor Kor Market.

(Sources: http://board.vayoclub.com/index.php?topic=507.0,

http://www.greennet.or.th/Research/t5104.htm)

2.2.2 Size of organic markets

The UNCTAD/ WTO International trade Centre puts an estimate of US$ 13-

13.5 billions as the world market value for organic retail sale in 1998 with an annual

growth rate of 5- 40 percent. The market has been remarkable especially when talking

into account the slow or even stagnant growth in overall food sales experienced in

industrialized countries in recent years. The major markets are Europe, the United States

and Japan.

In world markets, organic food sales are concentrate on dairy product, fresh

fruits and vegetables, cereals and cereal- based products (International Trade Centre

1999: 59). Secondary processed products are increasingly becoming important in

industrialized markets. The food manufacturing industries have started to pick up the

market trend in organic food. Until very recently, organic foods were manufactured by

specialist organic food producers, with the exception of baby food products. But

nowadays there is an increasing demand for convenience and ready- made food

products, so mainstream food manufacturers are also developing an organic line in their

production.

Regarding the domestic market in Thailand, no studies on the size of the organic

market have been conducted yet. The closet research was done by the Thai farmers

Research Centre of the Thai Farmers Bank from 20 to 25 November 1996. The survey

interviewed 780 consumers in Bangkok on their interest in health food and it estimate

2,300 million Baht/ year as the health market in Thailand. In the domestic market, only

organic fresh vegetables and cereal (mainly rice and bean) are available. No imported

organic product is sold in Thailand at the moment.

14

Findings from the Thai Farmers Research Centre Health Food Market Survey,

1996.

- 62.3 percent or 486 out of 780 questioned consumers in Bangkok said they had

eaten some health food before.

- 71.1 percent of the respondent believed that having health food would make

them healthy, 18.1 percent was afraid of pollution in food contributed to a better

environment.

- The main obstacles identified by respondents presently buying health food were

lack of confidence in organic quality(61.2 percent), difficulties in buying (30.5

percent) and price (8.4 percent)

- 69.2 percent purchased from supermarkets, 21.0 percent from green shops, and

5.5 percent from wholesalers.

- For those who did not buy health products, 58.6 percent said they were not

necessary and 13.8 percent said they were too expensive.

(Source: Organic Agriculture and Rural Poverty Alleviation, 2002)

2.2.3 Domestic marketing channels and organizations

Thailand is still under a severe economic recession, the domestic market is still

shrinking. As a result, almost all certified organic products are currently exported with

only a small amount being sold in the domestic market. However, a number of

environmental- friendly and hygienic products are available in the domestic market.

Consumer often confuses these as organic products because the labeling and

advertisements present them as “health product”. Currently, there are three channels

where such product are sold, supermarket chains, specialized shops, and direct

marketing (membership). It is important to note that there are several producer groups

that also sell their organic produces locally as well as to consumer members, but this is

only very small scale.

In supermarket, organic and/ or “health” product are sold in the same way as

conventional products, for example, on the same product shelves. Only when there is a

product promotion or on a special occasion are organic and health product displayed

15

separately. The main products sold through supermarket channels are fresh fruits,

vegetable and rice. None of these supermarket make explicit advertisement campaigns

on the availability of organic and health product.

In specialized shops, organic and health foods are the main feature of the shops.

Owing to the limited assortment of organic products, these shops have to carry many

conventional health food items. Even where organic products are more predominant,

clear identification or labeling to separate the different product quality is lacking.

Consumers shopping in these shops often assume that all products are “green and/ or

healthy”.

Direct marketing is another marketing channel for organic products. But

directing marketing currently focuses only on fresh vegetables. There are two distinct

concepts behind direct marketing, one based on community support agriculture and

another is based on commercial experience in the home delivery model. In practice,

different logistic and management mechanisms are devised for each scheme, but

generally customers will be delivered a pack of vegetables on a regular basis, normally

once a week, at a designated location, often at home or office.

2.3 Products

2.3.1 Green/Romaine Cos

A long crispy leaf that is eaten as salad or

served with chill paste, minced pork or

grilled meat. There is extremely low

in calorie content and has high water

volume. It is rich in vitamin A, vitamin K,

folate, vitamin C, manganese, chromium,

vitamin B1, vitamin B2 and the minerals

like potassium, molybdenum, iron and

phosphorus. Romaine is, thus, rich in

so many vital elements for the body and is

a highly nutritious food.

16

It is known as Boston, Bibb, Buttercrunch,

or Limestone lettuce. This is a lettuce with

outstanding sweet flavor and smooth, buttery

consistency of the leaves. These types form small,

loose heads and come in colors from green to red to

yellow. This lettuce has both soft and crispy head

leaves. It is usually served with salad, chill paste, tea

leaves, and grilled meat or in spicy salad.

(Sources: http://www.d-veggie.com/catalog.php?idp=67 ,

http://www.zimbio.com/Alkaline+Acid+Diet+Revealed/articles/XJFR1TnUc6d/Romaine+Romaine+Heal

th+Benefits+Vitamin+K )

2.3.2 Butter Head Lettuce

(Source: http://www.gardensablaze.com/Vegetables/VegLettuce.htm )

2.3.3 Red Cos/Romaine Lettuce

(Sources:

http://www.doleeurope.com/Products/FreshVegetables/RedRomaineLettuce/tabid/126/Default.aspx )

Also known as “cos” lettuce (said to have

originated on the Greek island of Kos).

The tender inner leaves have a yellowish

rib and surround a sweet, crispy, creamy

heart. Often used in Caesar salads,

this attractive lettuce has long, crunchy,

spoon-shaped leaves with red fringes and

a large vein running down the centre.

17

One of hundreds of lettuce varieties, red

leaf lettuce is loose-headed with soft,

buttery leaves tinged with red. It has mild

and watery flavor. Red Leaf Lettuce is a

“powerhouse” vegetable contains Vitamin

C and A. It is a good source of Beta-

Carotene. Also includes fiber, calcium,

iron, potassium and folate.

A tender looseleaf baby lettuce,

Baby Green Oak Leaf produces thin,

lobed, dark-green oak-leaf shaped leaves.

It has a mild, earthy taste. Oak Leaf

Lettuce is good source of vitamin A,

vitamin C and folate.

2.3.4 Red Leaf Lettuce

(Sources: http://www.doleeurope.com/Products/FreshVegetables/RedLeafLettuce/tabid/125/Default.aspx

, http://www.hopebuild.org/pdf/REDLEAFLETTUCE.pdf )

2.3.5 Iceberg Lettuce

(Source: http://www.organicfacts.net/nutrition-facts/vegetables/nutritional-value-of-cabbage-and-iceberg-

lettuce.html )

2.3.6 Green Ock Leaf

(Source: http://www.specialtyproduce.com/index.php?item=507 )

Iceberg lettuce is a main constituent in salads

and is known for its crunchy texture. It has

comparatively less nutrients than the other

greens. There is an excellent source of potassium

and manganese and a very good source of iron,

calcium, magnesium and phosphorous. It also

contains traces of sodium, copper, zinc.

18

2.4 Vision

Our company established since realizing main factor of human is eating.

Now, the high prices of food and may not have the quality what customer needs, we

chose do the organic vegetable farm business by realizing the health of customers.

Distributor of quality vegetables throughout the country with the process of chemical-

free, vegetable plots clean and take care very well, along with environmental

conservation. The popularization of eating healthy trend, people chose to eat vegetables

thus we aim to produce high quality vegetables without chemicals.

To serve customer needs, we plant all kind of vegetable and the company has

delivered to the supermarkets, resorts and our shop in Bangkok for more convenience to

customers as we have many ways to distribute our products

We have a slogan: “Healthy plant, Healthy food, Healthy life”

2.5 Mission

Our company has wholesale and retail organic vegetables business. We have a

goal to become major seller of organic vegetables in the country and make customers to

know and recognize our brand even more in two years with the emphasis on organic

vegetable farm with chemical-free and not harmful to the environment or the soil too.

We will be expanding to the interested investors for the future with branches

throughout the country. We are exporters after we have branches in every region of

country. We want local people have job and income by plant our vegetable and sell.

19

2.6 Business Strategy

2.6.1 Corporate Level

Nowadays, people prefer their healthy more than the past because of many

factors such as disease, social trend, technology and also political. So, they careful

about their food such a where vegetable from and how they produced as well.

Hence, people prefer organic product more than normal product cause the growing of

organics market. We think that this market continue to increasing the demand more and

more. So, we will use Concentration Growth Strategy that it focusing on experience and

skill. We see the good opportunity to running this business because we saw that the

customer’s demand more than supply. Today, organic farm has not too much in

Thailand. So, we think that the power to support this demand is not enough. Hence, we

will use Forward Integration which is expanding the business to next period but cover in

the business line. We will focus on our target by do pass agent which are supermarket,

restaurant and hotel. We also build the shop in Bangkok. By we sent our product to the

shop, restaurant and hotel with freshness’s product. This strategy can helping the

customer can access to our product easily. In addition, they will get the comfortable and

saving the money to go to our shop because of they can purchase our product in many

areas that located around Bangkok so it has many choices to choosing. Additionally, we

exert in everything at the beginning until the product on hand the customer in order to

high value and high quality. We focusing all of them are first thing. The other strategy

is Diversification Growth Strategy. We use this one because we want to be different

from our competitors. By we use Concentric Diversification. We will have other

products in our business. So, we will produce organic fruits in order to many of choice

to the customer. Moreover, it helps to reduce the cost because we expand in our

business line. We will plant our fruit follow the seasonal in order to get the good taste,

high quality and can reduce the nature fertilizer as well. At the beginning, we will plant

the pineapple because of our farm located on appropriate soil and atmosphere. So, it

also reduces the cost as well.

20

2.6.2 Business Level

Although the competition of organic product is not too much, we still pay

attention about competitive advantage because it makes us to be successful and also

sustainable growth stage. We also running the business under the law and have an ethic

to do the business. In term of business level, we want to differentiate from our

competitor in order to attract customer and have competitive advantage. So, we use

Differentiation Strategy follow the Porter’s Generic Competitive Strategies. We choose

this one because we focus on board market and our product also differentiates from our

competitor. Hence, we use Differentiation Strategy by we create the product’s value to

be clearly. We also can keep customer loyalty as well. Our strategy has three strategies,

including Service Differentiation, Channel Differentiation and Package Differentiation.

First strategy is Service Differentiation, our employee have well round knowledge about

area of our business. They have known well about how to collect the seed, how to plant,

how long they grow and also how to harvest them. In addition, we also have a training

program to let them know how to behave and how to be a professional. Our employee

always on time and take care every customer equally. This is a core of our service.

Additionally, we have focusing on after-sale service as well. For example, if the product

is rotten, the customer can claim and get a new one immediately. Hence, this is

guarantee that our pat attention both before-sale and after-sale service. We also have a

guarantee our product that the customer will get the best thing. Second strategy is

Channel Differentiation. We make our different from the competitor by we have many

choices to access the product, including retail shop and wholesale shop. Its also cover

both two areas which are Ratchaburi and Bangkok. Our customer will have many

choices to access our shop. Moreover, we offer our product on website. They can order

what they want through online channel. They will save the time, money, and they also

see the production process via the media and pictures. Last strategy is Package

Differentiation. Our product keeps on clean package and also keeping the freshness as

well. We also design the package to save the Global Warming and also beautiful

package. The benefits of the package are it’s cheaper than purchasing retail product and

it can be the gift to give their lover as well.

21

2.6.3 Functional Level

2.6.3.1 Human Resource Management Strategy

Our company will hire local people to work with us in order to save labor cost

and distribute income to local to make them have job and better standard of living.

Moreover, we will hire some professional staff to control the quality of organic

vegetable. Before we hire them we provide them some training course, leaning the

principle of organic vegetable for create good attitude toward their duties. We also want

them to have correct understanding of our products. There is performance assessment

every six months for check their job performance. We provide them a privilege to buy

the products in a cheaper price. There is a sick leave and at the end of the year also have

incentive trip to reward our staff. There is sending staff to attend seminar or other

training course in any related filed.

2.6.3.2 R&D Strategy

Even though Daylight Company is a small company, but we also have research

& development department for conduct the research and improve the species of

vegetables in the farm to have more productivity with good quality in the same time.

The staff in R&D is technical expertise. This department will search for new ideas and

new ways of growing organic vegetables. On the other hand, its also carry out to

monitor the logistic because our company also deliver products to other branches.

2.6.3.3 Marketing Strategy

We would like to create customer awareness toward our organic vegetables that

our products are good for their health and also environmental friendly. Then they will

have good attitude toward our products and buy more and more. In addition, now health

lover trend becomes more popular so we will produce organic vegetable to satisfy

customer needs. Moreover, we will be promoted our organic vegetables through the

Internet (Facebook and Twitter) and publications.

2.6.3.4 Financing Strategy

The major strategy is to maintain liquidity and flexibility of cash .

22

Chapter 3 Market Feasibility Study

3.1 Market Analysis

3.1.1 General Environment Analysis

We use PEST analysis in order to analyze the external environment that may

effect to our business. We have to know this thing because it let we know haw to behave.

PEST analysis includes 4 things which are Politic, Economic, Socio-cultural and

Technology. We also analyze the environment as well.

Politic; Thai government is very support the agriculture of the country because

it is one of main income of Thailand. According to The Thai government is aiming to

improve the structure of agriculture in order to the opportunity in the market and the

changing of behavior’s customer. They have strategy that making Thailand becomes a

center production of the world. By focusing quality of product and also supporting the

new product that is opportunity in the market. So, we are producing the product that

directly response to the demand of customer which is people concern about their heath

more and more. They also focus the product that has high quality. Hence, we produce

organic vegetable to response this demand. Moreover, we focus on the high quality to

follow this policy. By the way focusing on every process in our production. Thai

government also supports organic farming. So, we do an action follow this concept by we

use natural fertilizer that without any chemical fertilizer. Moreover, Thai government has

developed the infrastructure in order to easy and convenient to transfer goods. They

develop both urban and rural as well. So, we can transfer our product more convenient

and faster than the past. Our product will on hand’s customer very fast.

Economic; We analyze the purchasing power of the customer by focusing on

Gross Domestic Product or GDP in order to know the level of money flow in the

economy system. GDP in 1Q2010 increased by 12.0%, the highest grow in past 15 years.

Supporting factors were the expansion of exports of goods and service, along with private

investment and consumption. For agricultural production increased by 0.2% compared

with the fall of 2.9% in previous quarter. In parallel, household consumption increased by

4.0% compared with a rise of 1.4% in previous quarter owing to an increase of durable

23

and semi-durable goods consumption as a consequence of higher farm income, lower

unemployment rate together with government stimulus packages and the overall

economic recovery which boosted up consumer’s confidence.

Table 3.1: Growth Rate of Gross Domestic Product: Q1/2010

(Source: http://www.nesdb.go.th/Default.aspx?tabid=95)

We found that Domestic production in 1Q10 rose by 12.0% affected from an

irregular low base level in 1Q09, which production drop by 7.1%. Agriculture product

in 1Q10 slightly contracted by 0.3% recovering from a fall of 2.9% in previous quarter

as a result of a 0.6% decline in crops production whereas livestock production rose by

2.1%. So, it means that agricultural sector slightly expanded.

Figure 3.1: Agriculture sector growth.

24

This graph shows the number of growing of Agriculture sector. We found that

the beginning at 2Q09 to 4Q09 quite decline but 1Q10 has small number when compare

with previous quarter. Its show Agriculture sector has growth. So, this is opportunity to

make benefit from this sector.

Figure 3.2: Household Consumption Expenditure Growth

This graph shows the number of growing of household consumption

expenditure. It shows household consumption expenditure strongly increased by 4.0%

higher than previous quarter. We assume that people have more income cause money

flow in economic system. This is also good opportunity to create new business because

of people have power to purchase product.

25

Figure 5: Table represents the Credit card expense and consumer confident index (CCI)

for the year 2009 – 2010.

Table shows that people reduce to paid via credit card. So, consumer has

confident in the market. There are increasing when compare 2010 with 2009. In 2010 has

growth by 5.9% from -3.5% of 2009. It means that consumer more increase the

confident.

Table 3.2: Growth rate of private consumption expenditure classified by durable

appearance.

People have consumption for food in 2009 at 1.4 and Q110 has 1.2%. Although

this number has decrease, it’s just a small. We assume that those numbers quite not

change so the number expenditure of food still not too much affect to the market.

26

Table 3.3: Growth Rate of Gross Domestic Product

The Thai economy in 2Q2010 increased by 9.1% compared to a rise of 12.0% in

previous quarter, resulting from that domestic demand expansion comprising household

consumption expenditure grew by 6.5%, mainly driven by higher expenditure on durable

goods such as vehicles, and electrical appliances in line with higher farm income of major

crops, as well as slowdown in inflation rate. Overall investment increased by 12.2%,

originating from private investment expansion whereas public investment contracted as a

result of a reduction of state enterprise. We saw that GDP of agriculture are decreased

from previous quarter because of flood in Thailand. We will explain in deep detail below.

Figure 3.3: Agriculture Sector Growth.

Gross domestic product expanded by 9.1% slowing down from an expansion in

previous quarter, resulting from a 10.0% rise for agriculture whereas agriculture sector

moderately dropped by 1.1%. Crops contracted by 2.0%, which was mainly from a drop

27

of second paddy, rubber, cassava, sugarcane, and maize productions. Falls of production

resulted from dry spell, which water levels reduced in major dams nationwide, along with

pestilence and overheat weather. So, the number of production also decreased so

decreasing of Gross Domestic Product. There are many spaces that got affected from

those problems. For example, Songkhla, where the big farming and famous about

planning of sanitation vegetables.

(Source: http://share.psu.ac.th/blog/tukta-4386/17780)

Figure 3.4: Household Consumption Expenditure Growth of 2Q08-2Q10

Household consumption robustly expanded by 6.5% compared to a rise of 4.0% in

previous quarter. After seasonally adjustment, consumption increased by 2.7%.

28

Table 3.4: Growth rate of major indicators

We found that the income in term of farming has growing when compare 2010

with 2009. The farming is one of indicator in consumer confident index. We also saw that

when the farm income high percentage, the consumer confident will high as well.

Table 3.5: Growth Rate of GDP on Expenditure (Original)

(Source: http://www.nesdb.go.th/Portals/0/eco_datas/account/qgdp/data3_10/detail_Eng.pdf )

We compare the real term of growth rate of GDP on private consumption

expenditure of 2009 with 2010. We found that the number of them is increased. It means

29

that people pay for daily day life more than past. It is good indicator that helps us forecast

sale volume in future.

Table 3.6: Private Consumption Expenditure at Current Market Prices (Original)

(Source: http://www.nesdb.go.th/econSocial/macro/NAD/1_qgdp/statistic/menu.html )

We found that the number of private consumption expenditure on vegetable

sector between Q210 is less than Q310 about 5,383 million baht. It means the number of

expenditure on vegetable is increase. We assume that people prefer to eat vegetable more

so it is good indicator that helps us to assume that in the future people prefer to eat

vegetable more.

30

Socio-cultural;

Administration Information

NO.

Prov

ince

Dista

nce f

rom

Bang

kok

Area

Administration divided into category Population

Distr

ict

Tumb

on

Villa

ge

munic

ipality

Loca

l gov

.

Male

Fema

le

Total

1 Bangkok -

1,568

,737

50 154 - - -

2,721

,380

2,974

,683

5,695

,956

Table 3.7: Administration Information

(Source: http://www.dopa.go.th/padmic/jungwad76/jungwad76.htm)

Bangkok has about 5,695,956 people. It is the capital city of Thailand so it is

lots of people. We sell our product in Bangkok. The social structure of Bangkok has very

complex because it is the capital city of Thailand. So, everything is fast, convenient,

ready to use/get, high technology. Hence, they want the thing that fast and convenient in

order to competition with another people. The way of life of them may effect to our

company so we have to know what they want/need, how to response them directly and

fastest. Moreover, they concern about their health so they want the thing that has high

quality as well.

Technology; the world has high technology now. People can communicate

across the continent. In the big city has developed many things to fulfill their want/need.

So, technology has effect to our product certainly. For examples, people use the Internet

to communicate with other people. They have many social networks such as Facebook

and Twitter. We can see that Thai people use Facebook about 6.9 million people that is

21st of the world.

31

Figure 3.5: Number of Facebook users in Thailand.

(Source: http://www.checkfacebook.com/)

The total number of user is about 575 millions people in the world. In Thailand

has about 6.9 millions user. It means that people pay attention in social network. They use

Facebook to communicate with their friend. We saw that it may our opportunity to use

Facebook to be one tool of advertise. Because of there are lots of number and also

increasing all the time.

Moreover, we pay attention to use website in order to advertisement and also

communicate with our customer. The Internet helps us to more convenient, fast and

correct information. So, it helps us to reduce the cost to advertise. Moreover, we can

attract the new customer who surf the Internet as well. The transportation is one

technology that we focusing on. Nowadays the manufacturer produced the new car that

high quality and very convenient. We choose the pickup car and truck to transfer our

product to the customer. Those cars will help us to comfortable, efficient and fast to

transfer the product on hand of customer. In term of infrastructure, Thai government has

policy to develop the road are convenient and cover every area both rural and urban. So,

we will more comfortable and fast in order to transfer out product to the market.

32

Environment; also has effect to our product because nowadays the earth’s

temperature has higher as we know Global Warming. It is one factor that directs effect to

our farm. The seasonal may change such as the changing of evaporates water. It may too

fast. Moreover, the product may decrease because of lack of water. So, it hard to make

sure that what time is the best to plant.

3.1.2 Competition Analysis (3C Analysis)

3.1.2.1 Competitor Analysis

In Ratchaburi

The main competitor of Daylight Company is Thai Organic Farm

or “Rai Pluk-Rak” was founded in 2000. The farm is located in in Bangpae district,

Rachaburi. It has an area of 6 hectares (60 rai). The farm is located close to the main

road (Petchkasem Road) where is quite easy to access by customers and ease of

transport products to member customers’ homes and other branches. The farm is located

close to the main road (Petchkasem Road) where is quite easy to access by customers

and ease of transport products to member customers’ homes and other branches. They

are the leading organic vegetable supplier in domestic market. There are over 20

branches in Bangkok’s five major supermarkets. The farm also has advisory service

about Organic Farming to farmers, co-operatives, companies, hotels, resorts, spa and

governmental bodies by expertise.

Product

The products of Thai Organic Farm are standard certified by Organic

Agriculture Certification Thailand (ACT), accredited by IFOAM.

There are many kinds of organic product such as fresh vegetables, health

& flower tea, salty egg, salad dressing, cereals and other homemade products.

Price

Now health conscious trend become popular so organic vegetables is a

good alternative for them.

The price range is between 483-8,381 Baht for salad lover set depend on

each set and type of members.

33

Mixed Salad 70g 69Baht.

Rocket sprout 30g 69Baht.

Salad dressing 200g 155Baht.

Place

Thai Organic Farm occupied 6 Hectares (60 Rai) which is large enough

to grow many kinds of vegetable. There is some spare space to do the activities such as

Organic Farm Day with their customers.

The farm has their own website to promote their products. Moreover,

there is Facebook’s page to contact with customers as well.

There is delivery service to member customers’ homes cover almost

Bangkok area and Nakorn Pathom province.

The products are distributes to both international and domestic. There are

over 20 branches in Bangkok’s five major supermarkets. They have their own organic

restaurant “Anothai Restaurant” in Bangkok too.

Promotion

There is sales promotion for customers who apply to be the member

customer within December 2010, they will get 2 tickets of Organic Family Day

(1,300 Baht) for free.

The farm will held “Thai Organic Food Festival” during 29-30 January

2011 for increase awareness of customers. It will have the opportunity for farm to meet

new customers.

In Bangkok

The main competitor in Bangkok is Lemon Farm Shop is an Organic &

Macrobiotic Foods shop. Lemon Farm is an alternative service market that provides

non-toxic products especially concern about consumers and farmers health and

environmental friendly as well. There are 9 branches cover the area of Bangkok.

34

Product

Lemon Farm offers much kind of products to customers For example,

organic vegetable & fruit, rice, cereal, egg, condiments, healthy food and even health

care products.

Price

The price of products in Lemon Farm Shop is varying because it sells

many products so the price depends on each type of product in a period of time.

Place

They have promoted their products through the Internet

(company website, Facebook and Twitter).

Promotion

There is 5-10% discount for customers who buy giftset at the shop.

There is a special discount during New Year’s period as well.

It has planting forest activity to give something back to the society

together with their customers in order to create their image.

3.1.2.2 Customer Analysis

Our customers are health lover people who live in Bangkok age 25-30 years old.

There are 524,971 people who age around 25-30 years old. We assume that 10% of

those people have buying power to buy organic vegetable from our shop at Bangkok.

35

Age Male Female Total

25 38,895 40,102 78,997

26 40,286 42,465 82,751

27 41,386 44,275 85,661

28 43,015 46,186 89,201

29 44,727 48,761 93,488

30 45,350 49,523 94,873

Total 253,659 271,312 524,971

Table 3.8: Number of population in Bangkok age 25-30 years old

(Source: http://203.113.86.149/cgi-

bin/people2_stat.exe?YEAR=52&LEVEL=1&PROVINCE=10%23%A1%C3%D8%A7%E0%B7%BE%

C1%CB%D2%B9%A4%C3&DISTRICT=&TAMBON=)

Another customers group that we focus on is resort around our farm at

Suan Phung, because we see the opportunity to crate the relationship with them by

deliver the products to their resort directly. We have interviewed those resorts on the

telephone and they told us that they have to drive more than 100 Kilometers in order to

buy organic vegetable at supermarket at Nakorn Pathom Province. So, as we said earlier

that we see the opportunity to trade with them because it benefits to them in term of

save cost of fuel and it also benefit to us in term of we will have a customers who buy

our organic vegetable regularly in a fix number in every month. Our customers are The

Scenery Resort, Swiss Valley HIP Resort and The Nagaya Resort. All of them are

located at Suan Phung district which is not that far from our farm and we can deliver the

organic vegetable directly and timely.

Description Amount/month

(kg)

The Scenery Resort 80

Swiss Valley HIP Resort 80

The Nagaya 60

Total 220

Table 3.9: Amount of organic vegetables delivers to the resorts

According to the research result in Chapter 2, we decided to sell to the

supermarkets in Bangkok and Nakorn Pathom. We have interviewed those supermarkets

36

on the telephone about the demand of organic vegetable. The supermarkets in Bangkok

that we will distribute our products are Villa Market; Thonglor Soi 15, Sukhumvit 49,

Silom, Aree and Lung Suan branches. By the way, the supermarket in Nakorn Pathom

that we will distribute organic vegetable is Big C Nakorn Pathom. Our company would

like to sell to supermarkets because some branches of Villa Market have to order

organic vegetable from Australia. So, we see the opportunity to offer a great deal to

them. We will deliver our products to those supermarkets directly and timely as deliver

to the resorts.

Description Amount/month

(kg)

Big C Nakorn Pathom 150

Villa Market;

Thonglor Soi 15 8

Sukhumvit 49 8

Silom 24

Aree 8

Lang Suan 24

Total 222

Figure 3.10: Amount of organic vegetables deliver to Supermarkets

3.1.2.3 Competitive Advantage

We use the Five-Force model by Michael Porter to analyze the competitive

advantage.

Rivalry among existing competitor

According to Green Market we found out that now organic products in

Thailand are export to foreign market 1,000M Baht per year. The biggest market is

Europe. Organic products are certified by Agriculture Certification Thailand (ACT)

accredited by IFOAM which accepted globally. In 2010, there is 16,503.19 Rai of

organic vegetable area which can produce vegetable and herb 5,336.76 Ton (297.18M

Baht) There is supply more than demand. So the rivalry is high in the market.

37

Threats of new entrants

The new entrants in this business require high cost of capital investment to

enter the market, Moreover the new entrants should have expertise/knowledge in this

field. They have to differentiate themselves in term of product because now there are

many organic vegetable shops in the market. Another threat is the difficulty to develop

relationship with supplier such as seed company.

Bargaining power of buyer

Customers have more information about organic vegetable that they

consumed. They have more concern about their health because of health conscious

trend. There are other choices for customers such as Lemon Farm Shop.

Bargaining power of supplier

There are many suppliers in Bangkok and surrounding that serve organic

food to customers. So the bargaining power is not that high in that area. On the other

hand, there is only one organic farm in Ratchaburi which is Thai Organic Farm. It has

high power of brand because Thai Organic Farm has long history was established since

2000. The company serves both domestic and international market. So the bargaining

power of the company is too high.

Threats of substitute product

If the price of organic vegetable increase customers will go for other

products such as organic bread.

3.2 STP Analysis

Company can not profitably serve all consumers in a given market. There are

too many different kinds of consumers with too many different kinds of needs. So, we

must divide up the total market and choose the best segments and also design strategies

for profitably serving chosen segments. We have to plan market segmentation, market

targeting and market positioning.

38

Market Segmentation

The market consists of many types of customers, products and needs. So, we

have to determine which segments offer the best opportunities. We create group of

consumer based on behavioral factor. There are many ways to purchased organic

vegetable which are purchased from supermarket, purchased from green shops,

purchased from direct marketing and purchased from hotel and restaurant. In

supermarket, organic veggies are sold in the same way as conventional products. In

green shops, organic veggies are main feature of the shops. There is limited

classification of organic veggies. There are more predominant, clear identification or

labeling to separate the different product quality is lacking. Consumers shipping in these

shops often assume that all products are healthy. Direct marketing is another marketing

channel for organic products. They focus only fresh vegetables. Generally customers

will be delivered a pack of vegetables on a regular basis, normally once a week at a

designed location such as home and office. In restaurant, and hotel, some of them

prepare food to serving to customers with organic veggies such as salads. So, consumer

can order organic food at restaurant and hotel.

Market Targeting

We have evaluating each market segment’s attractiveness and then selecting

segment to enter. We have 4 segments as according to market segmentation. We have to

target segments in order to can profitably generate the greatest customer value and

sustainability. We have to analyze each segment to know which one is good to us.

According to Thai Farmers Research Centre Health Food Market Survey, 1996, there

are 69.2 percent purchased organic products from supermarket, 21 percent purchased

from green shops and 5.5 percent purchased from wholesalers.

(Source: http://www.unescap.org/rural/doc/oa/Thailand.PDF ).

We found most of consumers are purchased organic vegetables from

supermarket and a few purchased organic vegetables from green shops. Moreover, there

is little number of consumers that purchased organic vegetables from restaurant and

hotel. So, we set target market into three groups which are supermarket, hotel and

restaurant and green shops.

39

Supermarket: We will send our product to them with wholesale price which are

Big C super center and Villa market.

Hotel and Restaurant: We will send our product to them with wholesale price

as well as supermarket. There are The Nagaya Resort, Swiss Valley Hip Resort and The

Scenery Resort & Farm which located on Suan Phung district, Ratchaburi province.

Green Shops: we will build a shop in Bangkok to sell our product to health

lover who concern and taking care about their health. Our target is worker who around

25-30 years old.

Market Positioning

After we has decided which market segments to enter, it also must decide how it

will be differentiate its market offering for each targeted segment and what positions it

wants to occupy in those segments. We have to arrange a product to occupancy a clear,

unique, desirable place relative to competing products in the minds of target consumers.

We identify our position by compare with our competitors which are Thai Organic Farm

and Lemon Farm Shop. Thai Organic Farm established in 2000 that located on Bang

Phae district, Ratchaburi province. Their farm located close Phetkasem Road which is

main road. So, it is easy to access and transfer products to customer and other branches.

They is leading organic vegetable supplier in domestic market. There are over 20

branches in Bangkok. Their products are standard certified by Organic Agriculture

Certification Thailand (ACT), accredited by IFOAM. They have many kinds of

products. Another competitor is Lemon Farm Shop, is an organic & macrobiotic foods

shop. They are alternative service market that provides non toxic products. There are 9

branches that located on Bangkok. They also have many kinds of products as well as

Thai Organic Farm. So we design the market positioning below.

40

Company

Detail Daylight

Thai Organic

Farm Lemon Farm Shop

Variety of product. Low High High

Pricing. Medium High Medium

Quality of product. Good Medium Medium

Location. Good Medium Medium

Promotion. Good Medium Medium

Service Delivery. Good Medium Medium

Table 3.11: Market Positioning

3.3 Marketing Mix Strategy

3.3.1 Product

There are 6 organic vegetable products in Daylight Company such as

Green/Romaine Cos, Butter Head Lettuce, Red Cos/Romaine Lettuce, Iceberg Lettuce

and Green Ock Leaf. Our vegetables are non- toxic, clean, vegetable quality and fresh.

3.3.2 Price

Day Light Farm is a new company. Product of farm is new trend for people who

concern about their health. The customers can buy many vegetables and can be

purchased at a low cost because our product does not sell through intermediaries.

We use market penetration pricing for attract customer to buy our product because we

want to gain a large market and can competitiveness in the market.

The prices of products are varying as following;

41

Description Price Per Kilogram (Baht)

Green/Romaine Cos 70

Butter Head 120

Red Cos 120

Red Leaf 120

Iceberg 80

Green Ock 120

Table 3.12: Price of organic vegetables per Kilogram

3.3.3 Place

We use multiple channels to sell our products. The Internet is the way that we

use for sell to customers directly because now almost everyone uses Internet and can

access easily. There is a company Facebook, Twitter and radio for promote our farm.

We provide information about company, products, location and contact information on

the Internet for those who interested organic vegetables. Our customer can check the

price of products through the Internet as well. If customers want to get more

information they can contact us through the telephone number and online channels.

About the advertising, we post the signage at the major road in Ratchaburi and the road

heading to our farm because this is the way to gain a response from target market. We

also are a sponsorship in Child’s Day and give help to local when they have an event.

3.3.4 Promotion

We use direct marketing which is use leaflet to introduce our products for make

people know about our company more. There is a sales promotion offers to customer

who applies to member customer they will get to buy organic vegetable in a cheaper

price when compare with regular customers. Our company attends the events in

42

Thailand for make more people know about our products. The purpose that we use this

because it has lots of opportunity for our company to introduce our products and meet

new customer. For example, SME Thailand EXPO and Ratchaburi provincial event.

3.4 Sales Forecast

In the beginning of establish the farm, we will grow organic vegetables 60% of

total area. The next year we assume that the demand of market will increase.

So, we expand the vegetation area to be 70%, 80%, 90% and 100%.

We have the stable sale volume because we deliver organic vegetable to

supermarkets and resort as shown on the figure 17.

There are 524,971 people. We assume that 10% of those people have buying

power to buy organic vegetable from our shop at Bangkok. According to the research

result from Chapter 2 found out that there are 21% of customers buy organic vegetable

from green shop as our at Bangkok. For the amount of consumption, it based on the

minimum vegetable requirement per day is 4 servings (320 Grams) per person.

(Source: http://www.bch.cuhk.edu.hk/fns/fun-in-

seven/english/images/HealthyDietPyramid/secondary/p3.html)

In the first year, we assume that there are 8% of customers who buy organic

vegetable will come to buy at our shop. The next year the demand of organic vegetables

will increase to be 9%, 10%, 11% and 12% as following.

At the first month of production, there will be no product because it is the time

for plantation. Each type of organic vegetable has differ plantation period until

harvesting time shown as following;

43

Table 3.13: Plantation period of organic vegetables

(Source: http://www.wangnamkheo.com/vegtech01.htm)

According to the table above, in every plantation period finish, we will rest the

plantation area for 1 month. So, there will be no products at that time.

Description Plantation (Days)

Butter Head 50

Green Cos 40

Red Cos 55

Iceberg 45

Red Leaf 45

Green Ock 40

44

Year 1

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 0 84,240 169,320 27,240 163,800 70,200 0 169,320 82,680 81,000 169,320 19,680 1,036,800

Green Cos 0 25,200 98,770 44,030 37,800 88,200 0 77,700 77,700 0 98,770 65,030 613,200

Red Cos 0 42,660 169,320 72,420 66,960 156,240 0 136,800 136,800 0 169,320 118,680 1,069,200

Iceberg 0 96,000 96,000 0 112,880 46,720 90,000 90,000 0 112,880 70,720 93,840 809,040

Red Leaf 0 143,100 143,100 0 169,320 64,680 134,100 134,100 0 169,320 102,480 144,000 1,204,200

Green Ock 0 169,320 118,680 66,420 154,980 0 169,320 91,680 169,320 102,480 85,536 169,320 1,297,056

Total 0 560,520 795,190 210,110 705,740 426,040 393,420 699,600 466,500 465,680 696,146 610,550 6,029,496

Sales Forecast Year 1

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

1 2 3 4 5 6 7 8 9 10 11 12

Month

Ba

ht

Butter Head

Green Cos

Red Cos

Iceberg

Red Leaf

Green Ock

Figure 3.6: Sales Forecast Year 1

45

Year 2

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 190,560 145,440 0 190,560 132,840 78,120 182,280 0 190,560 99,240 0 190,560 1,400,160

Green Cos 0 111,160 84,840 0 111,160 35,840 27,195 111,160 42,945 56,595 111,160 20,895 712,950

Red Cos 0 190,560 145,440 0 190,560 71,940 47,880 190,560 80,760 98,910 190,560 40,230 1,247,400

Iceberg 109,480 0 127,040 95,560 88,900 88,900 0 127,040 75,960 102,900 102,900 0 918,680

Red Leaf 168,000 0 190,560 145,440 130,200 130,200 0 190,560 105,540 150,150 150,150 0 1,360,800

Green Ock 30,264 190,560 145,440 190,560 141,240 90,720 190,560 21,120 190,560 122,340 190,560 124,440 1,628,364

Total 498,304 637,720 693,320 622,120 794,900 495,720 447,915 640,440 686,325 630,135 745,330 376,125 7,268,354

Sales Forecast Year 2

0

50,000

100,000

150,000

200,000

250,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

Ba

ht

Butter Head

Green Cos

Red Cos

Iceberg

Red Leaf

Green Ock

Figure 3.7: Sales Forecast Year 2

46

Year 3

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 145,440 113,760 211,680 53,760 211,680 105,120 0 211,680 129,120 108,000 211,680 40,320 1,542,240

Green Cos 112,000 112,000 0 123,480 75,320 0 123,480 89,320 0 123,480 89,320 33,600 882,000

Red Cos 192,000 192,000 0 211,680 143,520 0 211,680 143,520 0 211,680 162,720 57,600 1,526,400

Iceberg 141,120 113,280 126,240 126,240 0 141,120 68,480 116,000 116,000 0 141,120 114,880 1,204,480

Red Leaf 211,680 172,320 189,600 189,600 0 211,680 121,920 170,880 170,880 0 211,680 172,320 1,822,560

Green Ock 113,040 211,680 52,080 211,680 172,320 211,680 141,120 100,800 211,680 23,520 211,680 172,320 1,833,600

Total 915,280 915,040 579,600 916,440 602,840 669,600 666,680 832,200 627,680 466,680 1,028,200 591,040 8,811,280

Sales Forecast Year 3

0

50,000

100,000

150,000

200,000

250,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

Ba

ht

Butter Head

Green Cos

Red Cos

Iceberg

Red Leaf

Green Ock

Figure 3.8: Sales Forecast Year 3

47

Year 4

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 0 113,760 232,800 32,640 221,760 95,040 0 232,800 108,000 108,000 232,800 19,200 1,396,800

Green Cos 135,800 78,400 71,820 135,800 31,780 100,800 100,800 0 135,800 84,700 0 135,800 1,011,500

Red Cos 232,800 134,400 113,400 232,800 62,040 189,000 189,000 0 232,800 145,200 0 232,800 1,764,240

Iceberg 140,400 140,400 0 155,200 129,200 135,000 135,000 0 155,200 107,600 138,600 138,600 1,375,200

Red Leaf 210,600 210,600 0 232,800 172,200 189,000 189,000 0 232,800 177,600 210,600 210,600 2,035,800

Green Ock 232,800 172,200 232,800 183,000 0 232,800 134,400 232,800 156,000 118,260 232,800 43,140 1,971,000

Total 952,400 849,760 650,820 972,240 616,980 941,640 748,200 465,600 1,020,600 741,360 814,800 780,140 9,554,540

Sales Forecast Year 4

0

50,000

100,000

150,000

200,000

250,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

Bah

t

Butter Head

Green Cos

Red Cos

Iceberg

Red Leaf

Green Ock

Figure 3.9: Sales Forecast Year 4

48

Year 5

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 0 144,000 254,040 81,960 254,040 213,960 0 254,040 225,960 144,000 254,040 81,960 1,908,000

Green Cos 120,400 0 148,190 131,810 40,425 148,190 80,885 84,000 148,190 47,810 140,000 140,000 1,229,900

Red Cos 206,400 0 254,040 225,960 67,500 254,040 128,460 140,400 254,040 73,560 240,000 240,000 2,084,400

Iceberg 0 169,360 150,640 150,000 150,000 0 169,360 144,640 158,000 158,000 0 169,360 1,419,360

Red Leaf 0 254,040 225,960 207,000 207,000 0 254,040 207,960 234,000 234,000 0 254,040 2,078,040

Green Ock 254,040 225,960 144,000 254,040 220,560 254,040 69,360 254,040 213,960 254,040 225,960 144,000 2,514,000

Total 580,840 793,360 1,176,870 1,050,770 939,525 870,230 702,105 1,085,080 1,234,150 911,410 860,000 1,029,360 11,233,700

Sales Forecast Year 5

0

50,000

100,000

150,000

200,000

250,000

300,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

Ba

ht

Butter Head

Green Cos

Red Cos

Iceberg

Red Leaf

Green Ock

Figure 3.10: Sales Forecast Year 5

49

3.5 Marketing Expenses

The advertising expense is expenses paid for promoting the products and create

customers awareness.

Radio

Radio is an extremely cost effective medium to advertise our products.

Radio spots require a smaller budget than advertising in newspapers and magazines.

The benefit of using radio advertising is the effectiveness of ads on listeners. Radio is

the most intimate of advertising mediums, because people are often alone when

listening to the radio such as when driving to and from work. This is the opportunity for

create relationship with customers and encourage emotions which will increase a chance

of sale. The cost of advertising through radio is 3,000 Baht per hour.

Leaflet

Leaflet distribution is fast method to introduce products to the market and

also cost effective type of medium. It can distribute directly to target customers. There

is higher quality print and color reproduction than newspapers. The expense of leaflet is

3,811.52 Baht per time (1,000 sheets). It is colored leaflet 2 pages in A4 size.

Signboards

We will post the signboards at the major road in Ratchaburi and the road

heading to our farm because this is the way to gain a response from customers. The size

of signboard is 1.2 X 2.4 meters costs 500 Baht per each. We decided to use 5

signboards so it costs us 2,500 Baht. There is the company name board costs 50,000

Baht, it has long useful life for 5 years.

Public Relation

We will be a sponsor on Children’s Day and give help to support local when

they have an event. This is the way to create customers awareness toward our business

that we did not concern only profit we still give something back to society in return.

There will be money for public relation 2,000 Baht per month.

Other

There is contingency budget for support advertising activities 1,000 Baht per

month.

50

Year 1

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Radio 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

Leaflet 3,811.52 0 0 3,811.52 0 0 3,811.52 0 0 3,811.52 0 0 15,246.08

Signboard 52,500 0 0 0 0 0 2,500 0 0 0 0 0 55,000

Public Relation 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

Other 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Total 62,311.52 6,000 6,000 9,811.52 6,000 6,000 12,311.52 6,000 6,000 9,811.52 6,000 6,000 142,246.08

Year 2

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Radio 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

Leaflet 3,811.52 0 0 3,811.52 0 0 3,811.52 0 0 3,811.52 0 0 15,246.08

Signboard 3,000 0 0 0 0 0 3,000 0 0 0 0 0 6,000

Public Relation 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

Other 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Total 12,811.52 6,000 6,000 9,811.52 6,000 6,000 12,811.52 6,000 6,000 9,811.52 6,000 6,000 93,246.08

51

Year 3

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Radio 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

Leaflet 3,811.52 0 0 3,811.52 0 0 3,811.52 0 0 3,811.52 0 0 15,246.08

Signboard 3,500 0 0 0 0 0 3,500 0 0 0 0 0 7,000

Public Relation 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

Other 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 15,600

Total 13,611.52 6,300 6,300 10,111.52 6,300 6,300 13,611.52 6,300 6,300 10,111.52 6,300 6,300 97,846.08

Year 4

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Radio 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

Leaflet 3,811.52 0 0 3,811.52 0 0 3,811.52 0 0 3,811.52 0 0 15,246.08

Signboard 4,000 0 0 0 0 0 4,000 0 0 0 0 0 8,000

Public Relation 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

Other 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 16,800

Total 14,211.52 6,400 6,400 10,211.52 6,400 6,400 14,211.52 6,400 6,400 10,211.52 6,400 6,400 100,046.08

52

Year 5

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Radio 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

Leaflet 3,811.52 0 0 3,811.52 0 0 3,811.52 0 0 3,811.52 0 0 15,246.08

Signboard 4,300 0 0 0 0 0 4,300 0 0 0 0 0 8,600

Public Relation 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

Other 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000

Total 14,611.52 6,500 6,500 10,311.52 6,500 6,500 14,611.52 6,500 6,500 10,311.52 6,500 6,500 101,846.08

53

3.6 Conclusion

Daylight company entry to organic vegetable because we know the current trend

of the market and perception of customers toward organic products. We have one branch

in Bangkok. Moreover, we deliver our products to supermarkets and resorts. Our target

market is customers who live in Bangkok, supermarkets and resorts. They are working

men/women age around 25-30 years old living in middle class. Our customers are health

lover people who concern and taking care of their health and supermarkets and resorts

which want to sell organic vegetable to their customers. We use PEST analysis in order to

analyze the external environment that may effect to our business. We have to know this

thing because it let we know how to behave. The PEST analysis including 4 dimensions

which are Politic, Economic, Socio-cultural and Technology. We also analyze the

environment as well. Daylight company knows the competitor, customers and

competitive clearly after analyze according to Five Force model. There is one main

competitor in Ratchaburi who is Thai Organic farm. The main competitor in Bangkok is

Lemon farm shop. Those two farms sell organic products similar to Daylight Company,

but they are well-known and have long establishment. Our company offers six kinds of

organic vegetable to the market. We use market penetration strategy in order to gain more

market share in the first stage. There are many distribution channels that we use to

promote our products such as Internet (website, Facebook and Twitter), signboards and

be the sponsor in the particular local activities. By the way, we also use leaflet to

introduce ourselves to the market and attend the events in Thailand in order to meet new

customers as well.

54

Chapter 4 Technical Analysis

4.1 Investment Analysis

4.1.1 Land and Building

Description Price Amount Total

Land 35,000 32 1,120,000

Building

Office at Ratchaburi 2,100,000 1 2,100,000

Shop at Bangkok 4,500,000 1 4,500,000

Versatile Building 250,000 1 250,000

Canteen 250,000 1 250,000

Store room 300,000 1 300,000

Total 8,520,000

4.1.2 Vehicle

Description Price Amount Total Note

Pick-Up Car 416,000 1 416,000

MITSUBISHI Triton

Single Cab 2WD 2.4 GL

MT

Refrigerated

Truck 900,000 2 1,800,000 Tailored Made

Tracktor 380,000 1 380,000 KUBOTA L3408

Total

2,596,000

55

4.1.3 Tools and Equipments

Bangkok Branch

Description Price Amount Total Note

Refrigerator

17,400

4

69,600 For keep vegetable

Document Shelf

11,550

2

23,100

Counter

12,000

1

12,000

Sofa

11,500

1

11,500 Index Living Mall

Vase

99

2

198 Index Living Mall

Coffee Table

2,490

1

2,490 Index Living Mall

Dining Table

680

1

680

Chair

95

4

380

Refrigerator

4,590

1

4,590 HITACHI R20NP

Cash Collecting Machine

12,500

1

12,500 CASIO SE-C300M

Television

11,990

1

11,990 LG LCD 32"

Telephone

389

1

389 REACH CID-626

Computer

12,000

1

12,000

Fax

3,200

1

3,200

BROTHER FAX-

878

Multi-Functional Printer

1,890

1

1,890 HP DJ-2050/AIO

Air-Conditioner

13,035

1

13,035 SAIJODENKI

Microwave

1,790

1

1,790 SHARP R-219

Fire Extinguisher

800

1

800

Bin

98

1

98

Odds and Ends

2,000

Total

184,230

56

Ratchaburi Branch

Description Price Amount Total Note

Meeting Table

14,200

1

14,200 Koncept Furniture

Air-Conditioner

13,035

5

65,175 SAIJODENKI

Vase

99

4

396 Index Living Mall

Sofa

11,000

4

44,000 Index Living Mall

Side Table

1,490

2

2,980 Index Living Mall

Table

2,690

5

13,450

Chair

899

5

4,495 NEON BK

Table Set

15,900

1

15,900 Koncept furniture

Coffee Table

2,490

3

7,470 Index living mall

Security Box

9,095

1

9,095

Bin

98

3

294

Table Set

19,900

1

19,900

Computer

12,000

6

72,000

Working Station

25,900

2

51,800 Koncept Furniture

Chair

1,680

4

6,720

Fire Extinguisher

800

4

3,200

Pantry Counter

34,500

1

34,500 Koncept Furniture

Microwave

1,790

1

1,790 SHARP R-219

Vacuum Bottle

699

1

699 TOSHIBA PLK-G22

Refrigerator

4,590

1

4,590 HITACHI R20NP

Coffee ware

50

15

750

Coffee Spoon

28

15

420

57

Multi-Functional Printer

1,890

1

1,890 HP DJ-2050/AIO

Fax

3,200

1

3,200 BROTHER FAX-878

Printer

1,290

1

1,290 HP-DJ2000

Telephone

389

2

778 REACH CID-626

Medicine Box

81

1

81

Fan

2,950

4

11,800

Bin

975

5

4,875 For outdoor use

Vacuum Cleaner

2,850

2

5,700

SAMSUNG

VCC5125

Broom

27

12

324

Mop

385

6

2,310

Dustpan

35

12

420

Toilet Brush

10

12

120

Multi-Purpose Excellent

Cleaner

100

12

1,200

Broom

85

12

1,020

Canteen Table

3,450

8

27,600

Table

1,990

1

1,990

Chair

95

1

95

Water Pump

7,490

1

7,490

Hole

250

60

15,000

Rubber Tube

850

3

2,550

Sprinker

7

120

840

Cultivator

20

30

600

Pipe

42

150

6,300

Foam Box

58

70 30 2,100

Basket

95

30

2,850

Total

476,247

Office Supply

Description Price Amount Total Note

Calculator

260 2

520 CASIO MX-8S

File &

Folder

79 10

790 CHANG 221 A4/BU/P02

Scottape

132 5

660

Glue

29 2

58 PAPERMATE PM-50ML

19 2

38 HORSE 10G

107 1

107 UHU 14-125G

Inkjet

800 5

4,000

Staper

38 5

190 HORSE HD-10

45 1

45 OFFICE WAY 1/P10

44 2

88 CHANG DP-480

Cutter

62 5

310 PS SRC109 6"

Paper

73 10

730

VALUESAVE A4/70G-

450SHT.

68 10

680 SAKURA-324 57X50MM/P3

169 10

1,690

300 1

300 KTV 9/125

Pen

69 5

345 YOYA 1016-BU/P20

Pencil

28 5

140 HORSE H204/P12

Correction

Pen

35 10

350 REYNOLDS

59

Eraser

167 1

167 TEX 910/P24

Ruler

34 5

170 INCA

Other

5,000

5,000

Total

16,378

4.1.4 Fee

Description Fee (Baht)

Registering the commerce 50

Permission to build the building 20

Registering the trademark 500

Ask to use the telephone with telephone authority

Installation 3,350

Insurance 3,500

ACT inspection 16,500

Total 23,920

4.1.5 Depreciation

Investment Amount Depreciation (year) Annual Depreciation Monthly Depreciation

Building

7,400,000 20

370,000.00

30,833.33

Vehicle

2,596,000 5

519,200.00

43,266.67

Machine

223,386 5

44,677.20

3,723.10

Computer

84,000 3

28,000.00

2,333.33

Furniture

295,250 20

14,762.50

1,230.21

Total

10,303,386

976,639.70

81,386.64

60

4.2 Production and Operations Analysis

We buy raw material total 8,551,350 baht for five years which included 8,467,200 Baht

for fertilizer and 84,150 Baht for seed.

Manure: we apply fertilizer to vegetable farm every 10 days. Fertilizer’s price is

3 baht per kilogram and used 1,600 kilograms per 1 Rai.

Seed: we use 1 kilogram of seed per 100 Rai that are 15,000 baht per kilogram.

Water: we water our farm two times everyday which are morning and evening.

It is 6 baht per unit.

Electricity: we use it for pump water into our farm for 4 hours per day.

61

4.2.1 Fertilizer Cost

Year 1

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 28,800 14,400 14,400 28,800 14,400 14,400 28,800 0 28,800 14,400 14,400 28,800 230,400

Green Cos 28,800 28,800 0 28,800 14,400 14,400 28,800 14,400 14,400 28,800 14,400 14,400 230,400

Red Cos 28,800 28,800 0 28,800 14,400 14,400 28,800 14,400 14,400 28,800 14,400 14,400 230,400

Red Leaf 28,800 14,400 14,400 28,800 0 28,800 14,400 14,400 28,800 0 28,800 14,400 216,000

Iceberg 28,800 14,400 14,400 28,800 0 28,800 14,400 14,400 28,800 0 28,800 14,400 216,000

Green Ock 28,800 14,400 14,400 14,400 14,400 28,800 0 28,800 14,400 14,400 14,400 14,400 201,600

Total 172,800 115,200 57,600 158,400 57,600 129,600 115,200 86,400 129,600 86,400 115,200 100,800 1,324,800

Year 2

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 16,800 16,800 33,600 0 33,600 16,800 16,800 33,600 16,800 16,800 33,600 0 235,200

Green Cos 33,600 0 33,600 33,600 0 33,600 33,600 0 33,600 16,800 16,800 33,600 268,800

Red Cos 33,600 0 33,600 33,600 0 33,600 33,600 0 33,600 16,800 16,800 33,600 268,800

Red Leaf 16,800 33,600 0 33,600 16,800 16,800 33,600 0 33,600 16,800 16,800 33,600 252,000

Iceberg 16,800 33,600 0 33,600 16,800 16,800 33,600 0 33,600 16,800 16,800 33,600 252,000

Green Ock 33,600 0 33,600 16,800 16,800 16,800 16,800 33,600 0 33,600 16,800 16,800 235,200

Total 151,200 84,000 134,400 151,200 84,000 134,400 168,000 67,200 151,200 117,600 117,600 151,200 1,512,000

62

Year 3

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 38,400 19,200 19,200 38,400 19,200 19,200 38,400 0 38,400 19,200 19,200 38,400 307,200

Green Cos 19,200 19,200 38,400 19,200 19,200 38,400 0 38,400 38,400 0 38,400 38,400 307,200

Red Cos 19,200 19,200 38,400 19,200 19,200 38,400 0 38,400 38,400 0 38,400 38,400 307,200

Red Leaf 0 38,400 19,200 19,200 38,400 0 38,400 19,200 19,200 38,400 0 38,400 268,800

Iceberg 0 38,400 19,200 19,200 38,400 0 38,400 19,200 19,200 38,400 0 38,400 268,800

Green Ock 19,200 19,200 38,400 0 38,400 19,200 19,200 19,200 19,200 0 38,400 38,400 268,800

Total 96,000 153,600 172,800 115,200 172,800 115,200 134,400 134,400 172,800 96,000 134,400 230,400 1,728,000

Year 4

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 21,600 21,600 43,200 0 43,200 21,600 21,600 43,200 21,600 21,600 43,200 0 302,400

Green Cos 0 43,200 21,600 21,600 43,200 21,600 21,600 43,200 21,600 21,600 43,200 0 302,400

Red Cos 0 43,200 21,600 21,600 43,200 21,600 21,600 43,200 21,600 21,600 43,200 0 302,400

Red Leaf 21,600 21,600 43,200 0 43,200 21,600 21,600 43,200 0 43,200 21,600 21,600 302,400

Iceberg 21,600 21,600 43,200 0 43,200 21,600 21,600 43,200 0 43,200 21,600 21,600 302,400

Green Ock 21,600 21,600 21,600 21,600 43,200 0 43,200 21,600 21,600 21,600 21,600 43,200 302,400

Total 86,400 172,800 194,400 64,800 259,200 108,000 151,200 237,600 86,400 172,800 194,400 86,400 1,814,400

63

Year 5

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 48,000 24,000 24,000 48,000 24,000 24,000 48,000 0 48,000 24,000 24,000 48,000 384,000

Green Cos 48,000 48,000 0 48,000 48,000 0 48,000 24,000 24,000 48,000 24,000 24,000 384,000

Red Cos 48,000 48,000 0 48,000 48,000 0 48,000 24,000 24,000 48,000 24,000 24,000 384,000

Red Leaf 48,000 0 48,000 24,000 24,000 48,000 0 48,000 0 24,000 48,000 0 312,000

Iceberg 48,000 0 48,000 24,000 24,000 48,000 0 48,000 0 24,000 48,000 0 312,000

Green Ock 0 48,000 24,000 24,000 24,000 24,000 48,000 0 48,000 24,000 24,000 24,000 312,000

Total 240,000 168,000 144,000 216,000 192,000 144,000 192,000 144,000 144,000 192,000 192,000 120,000 2,088,000

64

4.2.2 Water Supply

Year 1

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 112.50 75.00 37.50 112.50 37.50 75.00 112.50 0.00 112.50 75.00 37.50 112.50 900.00

Green Cos 112.50 93.75 18.75 112.50 75.00 37.50 112.50 56.25 56.25 112.50 37.50 75.00 900.00

Red Cos 112.50 93.75 18.75 112.50 75.00 37.50 112.50 56.25 56.25 112.50 37.50 75.00 900.00

Red Leaf 112.50 56.25 56.25 112.50 0.00 112.50 56.25 56.25 112.50 0.00 112.50 56.25 843.75

Iceberg 112.50 56.25 56.25 112.50 0.00 112.50 56.25 56.25 112.50 0.00 112.50 56.25 843.75

Green Ock 112.50 37.50 75.00 75.00 37.50 112.50 0.00 112.50 37.50 75.00 75.00 37.50 787.50

Total 675.00 412.50 262.50 637.50 225.00 487.50 450.00 337.50 487.50 375.00 412.50 412.50 5,175.00

Year 2

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 43.75 87.50 131.25 0.00 131.25 87.50 43.75 131.25 43.75 87.50 131.25 0.00 918.75

Green Cos 131.25 21.88 109.38 131.25 0.00 131.25 109.38 21.88 131.25 87.50 43.75 131.25 1,050.00

Red Cos 131.25 21.88 109.38 131.25 0.00 131.25 109.38 21.88 131.25 87.50 43.75 131.25 1,050.00

Red Leaf 65.63 131.25 0.00 131.25 65.63 65.63 131.25 0.00 131.25 65.63 65.63 131.25 984.38

Iceberg 65.63 131.25 0.00 131.25 65.63 65.63 131.25 0.00 131.25 65.63 65.63 131.25 984.38

Green Ock 131.25 0.00 131.25 43.75 87.50 87.50 43.75 131.25 0.00 131.25 43.75 87.50 918.75

Total 568.75 393.75 481.25 568.75 350.00 568.75 568.75 306.25 568.75 525.00 393.75 612.50 5,906.25

65

Year 3

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 150.00 100.00 50.00 150.00 50.00 100.00 150.00 0.00 150.00 100.00 50.00 150.00 1,200.00

Green Cos 75.00 75.00 150.00 50.00 100.00 150.00 25.00 125.00 150.00 0.00 150.00 125.00 1,175.00

Red Cos 75.00 75.00 150.00 50.00 100.00 150.00 25.00 125.00 150.00 0.00 150.00 125.00 1,175.00

Red Leaf 0.00 150.00 75.00 75.00 150.00 0.00 150.00 75.00 75.00 150.00 0.00 150.00 1,050.00

Iceberg 0.00 150.00 75.00 75.00 150.00 0.00 150.00 75.00 75.00 150.00 0.00 150.00 1,050.00

Green Ock 100.00 50.00 150.00 0.00 150.00 50.00 100.00 100.00 50.00 150.00 0.00 150.00 1,050.00

Total 400.00 600.00 650.00 400.00 700.00 450.00 600.00 500.00 650.00 550.00 350.00 850.00 6,700.00

Year 4

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 56.25 112.50 168.75 0.00 168.75 112.50 56.25 168.75 56.25 112.50 168.75 0.00 1,181.25

Green Cos 28.13 168.75 112.50 56.25 168.75 84.38 84.38 168.75 56.25 112.50 168.75 28.13 1,237.50

Red Cos 28.13 168.75 112.50 56.25 168.75 84.38 84.38 168.75 56.25 112.50 168.75 28.13 1,237.50

Red Leaf 84.38 84.38 168.75 0.00 168.75 84.38 84.38 168.75 0.00 168.75 84.38 84.38 1,181.25

Iceberg 84.38 84.38 168.75 0.00 168.75 84.38 84.38 168.75 0.00 168.75 84.38 84.38 1,181.25

Green Ock 56.25 112.50 112.50 56.25 168.75 0.00 168.75 56.25 112.50 112.50 56.25 168.75 1,181.25

Total 337.50 731.25 843.75 168.75 1,012.50 450.00 562.50 900.00 281.25 787.50 731.25 393.75 7,200.00

66

Year 5

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 187.50 125.00 62.50 187.50 62.50 125.00 187.50 0.00 187.50 125.00 62.50 187.50 1,500.00

Green Cos 156.25 187.50 0.00 187.50 156.25 31.25 187.50 125.00 62.50 187.50 93.75 93.75 1,468.75

Red Cos 156.25 187.50 0.00 187.50 156.25 31.25 187.50 125.00 62.50 187.50 93.75 93.75 1,468.75

Red Leaf 187.50 0.00 187.50 93.75 93.75 187.50 0.00 187.50 0.00 93.75 187.50 0.00 1,218.75

Iceberg 187.50 0.00 187.50 93.75 93.75 187.50 0.00 187.50 0.00 93.75 187.50 0.00 1,218.75

Green Ock 0.00 187.50 62.50 125.00 125.00 62.50 187.50 0.00 187.50 62.50 125.00 125.00 1,250.00

Total 875.00 687.50 500.00 875.00 687.50 625.00 750.00 625.00 500.00 750.00 750.00 500.00 8,125.00

67

4.2.3 Seed

Year 1

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 450 0 450 0 0 450 0 0 450 0 450 0 2,250

Green Cos 450 0 450 0 0 450 0 0 450 0 0 450 2,250

Red Cos 450 0 450 0 0 450 0 0 450 0 0 450 2,250

Red Leaf 450 0 450 0 0 450 0 450 0 0 450 0 2,250

Iceberg 450 0 450 0 0 450 0 450 0 0 450 0 2,250

Green Ock 450 0 450 0 450 0 0 450 0 450 0 450 2,700

Total Price 2,700 0 2,700 0 450 2,250 0 1,350 1,350 450 1,350 1,350 13,950

Year 2

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 0 525 0 0 525 0 525 0 0 525 0 0 2,100

Green Cos 0 0 525 0 0 525 0 525 0 0 525 0 2,100

Red Cos 0 0 525 0 0 525 0 525 0 0 525 0 2,100

Red Leaf 525 0 0 525 0 525 0 0 525 0 525 0 2,625

Iceberg 525 0 0 525 0 525 0 0 525 0 525 0 2,625

Green Ock 0 0 525 0 525 0 525 0 0 525 0 525 2,625

Total Price 1,050 525 1,575 1,050 1,050 2,100 1,050 1,050 1,050 1,050 2,100 525 14,175

68

Year 3

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 600 0 600 0 0 600 0 0 600 0 600 0 3,000

Green Cos 0 600 0 0 600 0 0 600 0 0 600 0 2,400

Red Cos 0 600 0 0 600 0 0 600 0 0 600 0 2,400

Red Leaf 0 600 0 600 0 0 600 0 600 0 0 600 3,000

Iceberg 0 600 0 600 0 0 600 0 600 0 0 600 3,000

Green Ock 0 600 0 0 600 0 600 0 600 0 0 600 3,000

Total Price 600 3,000 600 1,200 1,800 600 1,800 1,200 2,400 0 1,800 1,800 16,800

Year 4

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 0 675 0 0 675 0 675 0 0 675 0 0 2,700

Green Cos 675 0 0 675 0 0 675 0 0 675 0 0 2,700

Red Cos 675 0 0 675 0 0 675 0 0 675 0 0 2,700

Red Leaf 0 675 0 0 675 0 675 0 0 675 0 675 3,375

Iceberg 0 675 0 0 675 0 675 0 0 675 0 675 3,375

Green Ock 0 675 0 675 0 0 675 0 675 0 675 0 3,375

Total Price 1,350 2,700 0 2,025 2,025 0 4,050 0 675 3,375 675 1,350 18,225

69

Year 5

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 750 0 750 0 0 750 0 0 750 0 750 0 3,750

Green Cos 750 0 0 750 0 750 0 0 750 0 0 750 3,750

Red Cos 750 0 0 750 0 750 0 0 750 0 0 750 3,750

Red Leaf 0 0 750 0 750 0 0 750 0 0 750 0 3,000

Iceberg 0 0 750 0 750 0 0 750 0 0 750 0 3,000

Green Ock 0 750 0 750 0 750 0 0 750 0 750 0 3,750

Total Price 2,250 750 2,250 2,250 1,500 3,000 0 1,500 3,000 0 3,000 1,500 21,000

70

4.2.4 Electricity Cost

Year 1

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 136.90 84.96 40.79 136.90 40.79 84.96 61.93 0.00 61.93 40.79 40.79 136.90 867.64

Green Cos 136.90 110.32 21.04 136.90 84.96 40.79 61.93 30.82 30.82 61.93 40.79 84.96 842.16

Red Cos 136.90 110.32 21.04 136.90 84.96 40.79 61.93 30.82 30.82 61.93 40.79 84.96 842.16

Red Leaf 136.90 61.93 61.93 136.90 0.00 136.90 30.82 30.82 61.93 0.00 136.90 61.93 856.96

Iceberg 136.90 61.93 61.93 136.90 0.00 136.90 30.82 30.82 61.93 0.00 136.90 61.93 856.96

Green Ock 136.90 40.79 84.96 84.96 40.79 136.90 0.00 61.93 21.04 40.79 84.96 40.79 774.81

Total 821.40 470.25 291.69 769.46 251.50 577.24 247.43 185.21 268.47 205.44 481.13 471.47 5,040.69

Year 2

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 40.79 84.96 136.90 0.00 136.90 84.96 21.04 61.93 21.04 40.79 136.90 0.00 766.21

Green Cos 136.90 21.04 110.32 136.90 0.00 136.90 51.36 12.72 61.93 40.79 40.79 136.90 886.55

Red Cos 136.90 21.04 110.32 136.90 0.00 136.90 51.36 12.72 61.93 40.79 40.79 136.90 886.55

Red Leaf 61.93 136.90 0.00 136.90 61.93 61.93 61.93 0.00 61.93 30.82 61.93 136.90 813.10

Iceberg 61.93 136.90 0.00 136.90 61.93 61.93 61.93 0.00 61.93 30.82 61.93 136.90 813.10

Green Ock 136.90 0.00 136.90 40.79 84.96 84.96 21.04 61.93 0.00 61.93 40.79 84.96 755.16

Total 575.35 400.84 494.44 588.39 345.72 567.58 268.66 149.30 268.76 245.94 383.13 632.56 4,920.67

71

Year 3

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 136.90 84.96 40.79 136.90 40.79 84.96 61.93 0.00 61.93 40.79 40.79 136.90 867.64

Green Cos 61.93 61.93 136.90 40.79 84.96 136.90 12.72 51.36 61.93 0.00 136.90 110.32 896.64

Red Cos 61.93 61.93 136.90 40.79 84.96 136.90 12.72 51.36 61.93 0.00 136.90 110.32 896.64

Red Leaf 0.00 136.90 61.93 61.93 136.90 0.00 61.93 30.82 30.82 61.93 0.00 136.90 720.06

Iceberg 0.00 136.90 61.93 61.93 136.90 0.00 61.93 30.82 30.82 61.93 0.00 136.90 720.06

Green Ock 84.96 40.79 136.90 0.00 136.90 40.79 40.79 40.79 21.04 61.93 0.00 136.90 741.79

Total 345.72 523.41 575.35 342.34 621.41 399.55 252.02 205.15 268.47 226.58 314.59 768.24 4,842.83

Year 4

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 40.79 84.96 136.90 0.00 136.90 84.96 21.04 61.93 21.04 40.79 136.90 0.00 766.21

Green Cos 21.04 136.90 84.96 40.79 136.90 61.93 30.82 61.93 21.04 40.79 136.90 21.04 795.04

Red Cos 21.04 136.90 84.96 40.79 136.90 61.93 30.82 61.93 21.04 40.79 136.90 21.04 795.04

Red Leaf 61.93 61.93 136.90 0.00 136.90 61.93 30.82 61.93 0.00 61.93 61.93 61.93 738.13

Iceberg 61.93 61.93 136.90 0.00 136.90 61.93 30.82 61.93 0.00 61.93 61.93 61.93 738.13

Green Ock 40.79 84.96 84.96 40.79 136.90 0.00 61.93 21.04 40.79 40.79 40.79 136.90 730.64

Total 247.52 567.58 665.58 122.37 821.40 332.68 206.25 330.69 103.91 287.02 575.35 302.84 4,563.19

72

Year 5

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Butter Head 136.90 84.96 40.79 136.90 40.79 84.96 61.93 0.00 61.93 40.79 40.79 136.90 867.64

Green Cos 110.32 136.90 0.00 136.90 110.32 21.04 61.93 40.79 21.04 61.93 61.93 61.93 825.03

Red Cos 110.32 136.90 0.00 136.90 110.32 21.04 61.93 40.79 21.04 61.93 61.93 61.93 825.03

Red Leaf 136.90 0.00 136.90 61.93 61.93 136.90 0.00 61.93 0.00 30.82 136.90 0.00 764.21

Iceberg 136.90 0.00 136.90 61.93 61.93 136.90 0.00 61.93 0.00 30.82 136.90 0.00 764.21

Green Ock 0.00 136.90 40.79 84.96 84.96 40.79 61.93 0.00 61.93 21.04 84.96 84.96 703.22

Total 631.34 495.66 355.38 619.52 470.25 441.63 247.72 205.44 165.94 247.33 523.41 345.72 4,749.34

73

4.2.5 Product Characteristic

There are 6 kinds of organic vegetable that Daylight Company sells to the

market. All of those vegetables are lettuce has the botanical name as “Lactuca sativa”.

4.2.5.1 Green Romaine/Cos

Romaine is believed to have originated on the Aegean island of Cos, and also

known as Cos lettuce. It is sweet and tender. They offer an appealing crunchy,

refreshing texture. Green romaine is a staple in many baby green mixes. There are

many interesting facts such as Green Romaine is heat tolerant, its also called Cos after

the island near Greece where it is believed to have originated and there is a common

staple found in kitchens in Europe, Middle East and North America.

Green Romaine is available the year round. Romaine grows in an elongated head

of sturdy green outer leaves and lighter to pale celadon leaves in the center, all of which

have a firm rib down their centers. It is crisp and crunchy with a slightly bitter flavor.

Its contain vitamin C, vitamin A, folate and iron. One cup of shredded Romaine

has about 10 calories. It can add to mixed green salads or Caesar salads. Pair with green

oak, arugula, tat soi, frisee, mizuna and other green leaf lettuces. Brush head with

vinaigrette and grill. Use as cup for lettuce wraps. Blanch, then braise whole head for

side dish. Add to sandwiches and hamburgers and deal for dips.

(Sources: http://www.specialtyproduce.com/index.php?item=504 , http://arcgreenhouses.com/baby-

greens/green-romainehttp://www.oceanmist.com/products/romaine/romainenutrition.aspx )

74

4.2.5.2 Butter Head Lettuce

Butterhead lettuces have the softest leaves among all lettuces and are tender,

almost floppy, forming a loose but pretty head. Boston resembles a flowering rose,

while bibb has a smaller, cup-shaped head. The leaves come in green, red, or bronze. Its

soft buttery texture and sweet flavour makes it a good companion for stronger tasting

greens. Butterhead varieties also include the cabbage type lettuces.

It has have small, round, loosely formed heads with soft, buttery-textured leaves

ranging from pale green on the outer leaves to pale yellow-green on the inner leaves.

The flavor is sweet and succulent. Because the leaves are quite tender, they require

gentle washing and handling. Butterhead lettuce is fat free, cholesterol free, sodium

f r e e , a n d a g o o d s o u r c e o f v i t a m i n A , v i t a m i n C , a n d f o l a t e .

(Sources: http://www.innvista.com/health/foods/vegetables/lettuce.htm )

75

4.2.5.3 Red Cos/Romaine Lettuce

'Red Romaine' has oblong, burgundy leaves. It is a good alternative to green

romaine in Caesar salads. One of the four basic lettuce types, romaine, or cos, grows

upright heads of thick, long leaves with crunchy midribs.

The red color in 'Red Romaine' develops best in cooler weather. The keys to

producing the best-tasting lettuce are cool weather, an even supply of water, and a little

shade in summer. Without enough water, or with too much hot weather, the leaves

become bitter.

It is Low in calories and rich in nutrients, both Green and Red Romaine are

packed with nutrition. It’s an excellent source of vitamin A (notably through its

concentration of the pro-vitamin A carotenoid, beta-carotene), vitamin K, folate,

vitamin C, manganese, and chromium. With these nutrients and its high fiber, Romaine

can contribute to a heart-healthy diet.

(Source: http://www.marthastewart.com/plant/lactuca-sativa-red-romaine )

76

4.2.5.4 Red Leaf Lettuce

Red leaf lettuce is a form of loose-leaf lettuce, very comparable to green leaf

lettuce. It packs a high nutritional value, far superior to iceberg lettuce, into very few

calories, about 15 per a 12-ounce (340.2 grams) serving. Additionally, red leaf lettuce is

an excellent source of beta carotene, which may be indicated in reducing risk for

developing cataracts.

Red leaf lettuce has the advantage too, of adding some very appealing color to a

salad. A salad made with green and red leaf lettuce is in many people’s opinions, very

pretty. Sandwiches can be made that much more special with a few delicately layered

red and green leafs. The name can be a little deceiving since red leaf lettuces are not

completely red. Instead, the tops of the leaves exhibit some red or purple coloring that

may extend a few inches into the leaf.

Good-quality red leaf lettuce will have fairly large, loose heads and thick,

"crumpled" leaves. The leaves will be medium to dark-red in color at the ends. The rest

of the leaf will be medium to dark-green blending to nearly white ribs or veins. Scratch

the stalk and smell. A sweet or bitter smell means sweet or bitter flavor.

(Source: http://www.wisegeek.com/what-is-red-leaf-lettuce.htm )

77

4.2.5.5 Iceberg Lettuce

Iceberg lettuce is a variety of crisphead lettuce which is widely consumed across

the world. It is characterized by tightly furled, crunchy leaves and a mild, sometimes

watery flavor. There are many uses for iceberg lettuce, including salads, some ethnic

cuisine, and garnishes. Many grocers carry iceberg lettuce, and it is also possible to

grow the food at home; you don't need much room to grow it, and it is very easy to

cultivate.

There are six basic categories of lettuce, divided roughly by their physical

properties. Crisphead lettuce is lettuce which forms a tightly furled head, like a cabbage.

The leaves of a crisphead lettuce will be firm and crunchy, with a distinctive snappy

texture. These lettuces may be lower in nutritional value than some other lettuce types,

although they have a reasonable amount of fiber, minerals, and vitamins such as A and

K.

Butterhead lettuce is lettuce which forms a much looser head, with soft leaves

and a creamy, slightly buttery texture. This lettuce is less shelf-stable than crisphead

lettuce, and it comes in a range of cultivars. Romaine lettuce forms a tight head with

elongated, crisp leaves and it is one of the most nutritionally rich lettuce types.

Looseleaf lettuce is a tender, mildly flavored cultivar which forms very loose heads,

while Chinese lettuce has long, often spear shaped leaves which do not form heads.

Summer crisp lettuce is a mixture of crisphead and butterhead.

(Sources: http://www.wisegeek.com/what-is-iceberg-lettuce.htm ,

http://www.edenbrothers.com/store/lettuce_seeds_iceberg.html )

78

4.2.5.6 Green Ock Leaf

It has colourful borders of autumn and red shades and it is used as a garnish. The

flavour of this type of lettuce is meant to accompany delicate flavours, and it can be

both cooked or stuffed. When buying oak leaf lettuce, everyone should know that this

plant has to be deeply coloured, and its leaves have to be curly, crisp and firm.

Moreover, oak leaf lettuce does not keep for a long time and this is why it must be

stored in the vegetable crisper of the refrigerator or in dark and cool place.

As far as the nutritional values are concerned, oak leaf lettuce is rich in minerals

and vitamins A, vitamin B, vitamin C, vitamin D, and vitamin E. When washing its

leaves you have to do this quickly so that it retains its nutrients. This type of lettuce

goes well with any vinaigrette. For a tasty dish you could try placing a piece of grilled

salmon on oak leaf lettuce, sprinkle with lemon juice and olive oil, lay peach slices on

top, sprinkle with honey and oil, spoon remoulade sauce over oak leaf and top with

sauteed scallops, and sprinkle with walnut oil and walnuts.

(Source: http://recipes.wikia.com/wiki/Oakleaf_lettuce )

4.2.6 Production process

4.2.6.1 The principle of producing organic vegetables

1. Choose the land that has not used to be chemical agriculture land at least 3

years.

2. The land should be plain and clear.

3. Far from the factories.

79

4. Far from chemical agriculture land.

5. Far from main road.

6. There is uncontaminated water source.

4.2.6.2 The plantation method

1. Choose the land for grow organic vegetable should be a separated land and not

close to the chemical agriculture land.

2. Prepare and analyze the soil is the first thing that makes us know the pH of the

soil. It should have soil analysis every year in order to improve the soil.

3. Prepare the land. Sun the soil 1-2 weeks by digging and dry it in order to

eliminate pest, plant diseases, and use lime for balance the pH of the soil. Add

fermented animal fertilizer for increase soil organic matter to be in the proper level

(not less than 3%).

4. Prepare the seeds. Before planting, it should soak the seeds in warm water (the

average temperature is 50-55 degree Celsius) for 10-30 minutes in order to eliminate

bacteria and mould.

5. Cultivate and shift plantation. Organic vegetable plantation emphasize on the

strength of seedling. So, it should have elaborate seedling plantation by using high

quality seedling material such as fermented fertilizer with coconut residue in the 2:1

proportion at the clean place. Shift the seedling to the prepared land when the

seedling have 2-3 leaves and cover the land with rice straws.

5.1 The management of plants nutrient (fertilizer). Organic vegetable fertilizer

made fro, natural material such as

5.2 Fermented fertilizer is the fertilizer made from fermented rice straws, leaves

and vegetable residue.

5.3 Animal fertilizer such as fermented fertilizer.

5.4 Solid organic fertilizer made from plants, weed residues and even herbs by

mixing with molasses and fermented for 7 days. Then mix its with water and spray

on the soil.

5.5 Green manures use for add nitrogen into the soil by planting Legumious.

6. Harvest organic vegetable.

80

All of those methods can be summarized into a flowchart as shown;

Figure 4.1: Production process Flowchart

4.2.7 Location

4.2.7.1 Ratchaburi branch

Location of our farm is located at Tha Khoei, Suan Phung District, Ratchaburi

province. This area has convenience transportation. There is public highway

Ratchaburi-Pha Pok through the district. The landscape is proper for agriculture.

Our farm occupies 32 Rai. There are 30 Rai for organic vegetable plantation.

Another 2 Rai are office, shop, cafeteria, versatile building, store room and parking lot.

81

4.2.7.2 Bangkok branch

Bangkok branch shop located on Chan road, there is Siam Commercial Bank in

front of the alley. Customers can contact our company here in case of they want to

know more information about our products. Moreover, if they want to be a middleman

in order to distribute our products they also can contact here.

4.2.8 Layout

4.2.8.1 Overall layout

82

4.2.8.2 Canteen layout

The cafeteria could accommodate 30-40 people. It has 8 canteen tables for more

convenience to our office staff and gardeners.

83

4.2.8.3 Shop layout

84

This shop sells 6 kinds of organic vegetable to customers. There is

air-conditioner and sofas for make customers have more convenience. It also has toilets

for service customers as well.

4.2.8.4 Office layout

This office of company has 1 manager and 10 staff working here. It has many

windows because it is a choice for staff whether using air-conditioner or fresh weather

from outside. Office is located near the cafeteria for more convenience of staff.

4.2.9 Machine/Tools/Equipments

4.2.9.1 Machine

We buy a tractor to make our production process to be fast, convenient and also

reduce operation cost. Because of we use machine are replace man power. We also use

pump machine in order to pump water from canal to use within our farm. Additionally,

we paid for cash collecting machine to collect money when customer paid.

4.2.9.2 Tools/Equipments

We buy farm’s equipment to make our product is high quality as well as reduce

production cost. For example, hoe, spade, big knife, rubber tube and sprinkler.

Additionally, we also paid office’s equipment to help employee and customer to be

85

faster. Such as computer, printer, television, refrigerator, microwave fire extinguisher,

save and basket.

4.2.10 Logistics Management

We try to run all activities to be convenient and save cost. So, we focus on every

process which are planning, operation, controlling in order to transfer, store, compile

and product distribution. We separate logistics management into two categories which

are material management and physical distribution management.

4.2.10.1 Material Management: we focus on production process. We try to

calculate timing, cost and quality in order to reduce cost, control quality of product,

most convenient and fast to transport raw material from supplier. We focus on two

suppliers which are Lanna Oriental Hydroponics Co., Ltd and Dutch Greenery Co., Ltd.

We compare among them saw that the quality of seed of them are equal but difference

location. Lanna Oriental Hydroponics Co., Ltd located on Lunphoon province but

Dutch Greenery Co., Ltd located on Patumthanee province. We calculate cost of

transportation among them saw that Dutch Greenery Co., Ltd’s transport has less than

Lanna Oriental Hydroponics Co., Ltd. Because of Dutch Greenery Co., Ltd located near

our farm more Lanna Oriental Hydroponics Co., Ltd. Hence, we order seed from Dutch

Greenery Co., Ltd. We also buy the manure from Korat PSL Group Co., Led, located on

Nakhon Ratchasima province. Because of they have standard to produce product that

under suggestion of Ministry of Science and Technology. Moreover, we order

equipment from Thai Inter Accounting Co., Ltd, Bangkok. For example, sprinkler and

pump machine. We also paid for others equipment such as hoe, spade, and big knife.

Etc from Ratchaburi Tractor Co., Ltd. Time to transfer any raw material and equipment

not over a day because of distance between supplier and our farm not far from each

other.

4.2.10.2 Physical Distribution Management: we concern fastest

distribution our product to customer. So, we choose 4 wheels car to transfer our product

within farm and transfer between farms to 2nd

branch which is Bangkok. To be faster,

save cost and convenient.

86

(Source: http://www.poniva.com/moving_cool.php )

(Source: http://www.mitsubishi-motors.co.th/en/model-lineup/triton/triton-

single-cab/price.php )

4.2.11 Facility Management

We desire to balance physical environment and satisfaction of customer. So, we

focus on safety first, cleanness and facilities. We concern safety both customer and

employee first so we hire security guard to take care and provide safety to them for 24

hours. Additionally, we also focus on cleanness of shop, farm, office and toilet. We also

plant the big tree around our farm and shop to reduce temperature and make freshness to

our customer and employee. Moreover, we provide some facility to make them more

convenient and safety as well. For example, parking lot, canteen and air conditioner in

our office.

87

4.3 Administration Analysis

4.3.1 Administration Expenses

The standard administration expense covers the following:

Description Position Salary

(Baht)

Total Salary

(Baht)

Manager 1 20,000 20,000

Secretary 1 10,000 10,000

Finance Department 2 10,000 20,000

Human Resource Department 1 9,000 9,000

R & D Department 2 12,000 24,000

Marketing Department 2 9,000 18,000

General Staff 1 7,000 7,000

Head Gardener 1 6,000 6,000

Gardeners 14 5,400 75,600

Salesperson 2 6,500 13,000

Drivers 2 5,400 10,800

Housekeepers 2 5,400 10,800

Security guard 2 5,500 11,000

Total salary expense / month 33 235,200

88

Year 1

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Employee salary 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 2,756,400

Electricity expense 800 900 1,100 1,200 1,100 1,000 900 950 800 750 800 800 11,100

Water supply expense 300 320 310 300 320 300 310 320 310 300 300 300 3,690

Telephone cost and internet 1,000 1,100 950 1,200 1,050 970 1,100 1,200 980 1,150 800 990 12,490

Fire Insurance 4,454 0 0 0 0 0 0 0 0 0 0 0 4,454

Car insurance 15,450 0 0 0 0 0 0 0 0 0 0 0 15,450

Social security insurance 11,485 0 0 0 0 0 0 0 0 0 0 0 11,485

Training expense 3,000 0 0 3,000 0 0 0 0 3,000 0 0 0 9,000

Ask for ACT IFOAM Accredited 6,000 0 0 0 0 0 0 0 0 0 0 0 6,000

Total 272,189 232,020 232,060 235,400 232,170 231,970 232,010 232,170 234,790 231,900 231,600 231,790 2,830,069

Year 2

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Employee salary 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 2,756,400

Electricity expense 800 900 1,100 1,200 1,100 1,000 900 950 800 750 800 800 11,100

Water supply expense 300 320 310 300 320 300 310 320 310 300 300 300 3,690

Telephone cost and internet 1,000 1,100 950 1,200 1,050 970 1,100 1,200 980 1,150 800 990 12,490

Fire Insurance 4,454 0 0 0 0 0 0 0 0 0 0 0 4,454

Car insurance 15,450 0 0 0 0 0 0 0 0 0 0 0 15,450

Social security insurance 11,485 0 0 0 0 0 0 0 0 0 0 0 11,485

Training expense 3,000 0 0 3,000 0 0 0 0 3,000 0 0 0 9,000

Ask for ACT IFOAM Accredited 6,000 0 0 0 0 0 0 0 0 0 0 0 6,000

Total 272,189 232,020 232,060 235,400 232,170 231,970 232,010 232,170 234,790 231,900 231,600 231,790 2,830,069

89

Year 3

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Employee salary 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 2,756,400

Electricity expense 800 900 1,100 1,200 1,100 1,000 900 950 800 750 800 800 11,100

Water supply expense 300 320 310 300 320 300 310 320 310 300 300 300 3,690

Telephone cost and internet 1,000 1,100 950 1,200 1,050 970 1,100 1,200 980 1,150 800 990 12,490

Fire Insurance 4,454 0 0 0 0 0 0 0 0 0 0 0 4,454

Car insurance 15,450 0 0 0 0 0 0 0 0 0 0 0 15,450

Social security insurance 11,485 0 0 0 0 0 0 0 0 0 0 0 11,485

Training expense 3,000 0 0 3,000 0 0 0 0 3,000 0 0 0 9,000

Ask for ACT IFOAM Accredited 6,000 0 0 0 0 0 0 0 0 0 0 0 6,000

Total 272,189 232,020 232,060 235,400 232,170 231,970 232,010 232,170 234,790 231,900 231,600 231,790 2,830,069

Year 4

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Employee salary 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 2,756,400

Electricity expense 800 900 1,100 1,200 1,100 1,000 900 950 800 750 800 800 11,100

Water supply expense 300 320 310 300 320 300 310 320 310 300 300 300 3,690

Telephone cost and internet 1,000 1,100 950 1,200 1,050 970 1,100 1,200 980 1,150 800 990 12,490

Fire Insurance 4,454 0 0 0 0 0 0 0 0 0 0 0 4,454

Car insurance 15,450 0 0 0 0 0 0 0 0 0 0 0 15,450

Social security insurance 11,485 0 0 0 0 0 0 0 0 0 0 0 11,485

Training expense 3,000 0 0 3,000 0 0 0 0 3,000 0 0 0 9,000

Ask for ACT IFOAM Accredited 6,000 0 0 0 0 0 0 0 0 0 0 0 6,000

Total 272,189 232,020 232,060 235,400 232,170 231,970 232,010 232,170 234,790 231,900 231,600 231,790 2,830,069

90

Year 5

Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Employee salary 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 229,700 2,756,400

Electricity expense 800 900 1,100 1,200 1,100 1,000 900 950 800 750 800 800 11,100

Water supply expense 300 320 310 300 320 300 310 320 310 300 300 300 3,690

Telephone cost and internet 1,000 1,100 950 1,200 1,050 970 1,100 1,200 980 1,150 800 990 12,490

Fire Insurance 4,454 0 0 0 0 0 0 0 0 0 0 0 4,454

Car insurance 15,450 0 0 0 0 0 0 0 0 0 0 0 15,450

Social security insurance 11,485 0 0 0 0 0 0 0 0 0 0 0 11,485

Training expense 3,000 0 0 3,000 0 0 0 0 3,000 0 0 0 9,000

Ask for ACT IFOAM Accredited 6,000 0 0 0 0 0 0 0 0 0 0 0 6,000

Total 272,189 232,020 232,060 235,400 232,170 231,970 232,010 232,170 234,790 231,900 231,600 231,790 2,830,069

91

*** Electricity – the cost per unit is 3.00Baht, cost of FT is 0.9255 per unit, and VAT

7% of cost of electricity plus cost of FT.

***Telephone cost and internet fee – fee for True Internet per month is 599 Baht.

Include with telephone cost for contact to our customer and relevant agencies.

***Water supply cost - The cost per unit of water supply is 5 Baht.

*** Insurance cost – we choose The Deves Insurance public Company Limited

Insurance for fire. Fire insurance we can call from call center of Deves Company 02-

6704444. AIA for social security insurance, Allianz CP+3 Insurance for our car

(Sources: http://www.todayinsure.com/index.php?ui=sales&pid=3366,

http://www.truck2hand.com/index.php?module=InnoForum&func=list&ctrl=posts&id=13354,

http://www.insurance-aiaonline.com/images/1213199832/3InOne.pdf,

http://www.deves.co.th/products/house/products_sme.asp, http://www.trueonline.com/th/package.aspx,

http://www.eppo.go.th/power/pw-Rate-MEA.html)

92

4.3.2 Organization Chart

Figure 4.2: Organization Chart

Manager Of

Daylight Company

Finance Department

Marketing Department

R&D Department

Secretary

General Staff

Seller persons Housekeeping &

Security guard

Head who control gardeners

& drivers

Gardeners

Drivers

93

4.3.3 Recruitment plan

4.3.3.1 Manager of Daylight Company

Job position: 1

Job type : full time

Job time : 9.00am – 16.00pm.

Job qualification

1. Male / female, age at least 30 years.

2. Master's or Bachelor's Degree

3. Thai nationality

4. Knowledge and experience about managing at least 5 years, can control all

department

.

Job description

- He / She can set up targeting of company, planning all of operating which

follow target of company, assigning work to employee appropriately, good

communication inside company, and can evaluation & improvement of all

position in company. Besides, it is include managing and payment salary of

employee, supervise order of stock, and contact suppler for order the product

and negotiation about price.

Job requirement

- We will be post notice about job description for apply a job on front of store

and post in which internet and office of department of employment, we will

post in both ways. We will interview them before start the job and check

her/him job qualification. We will tell about salary, scope of work, test the skill

of control and negotiation, and ask about experience from working.

94

4.3.3.2 Secretary

Job position: 1

Job type : full time

Job time : 9.00am – 16.00pm.

Job qualification

1. Male / female, age at least 24 years.

2. Master's or Bachelor's Degree

3. Thai nationality

4. Knowledge and experience about secretary at least 2 years, Listen to

instructions from the manager well, can contact customer.

Job description

- The secretary provides a list of the common key tasks, activities and

responsibilities associated with the secretarial job. The secretary role will vary

depending on the sector, the size of the employer and the level of the job.

However, almost all secretarial jobs will involve an element of each of these

typical work tasks.

Job requirement

- We will be post notice about job description for apply a job in Ratchaburi

province and post in which internet for another province. We will post in both

ways. We will interview them about secretary’s skill and we will tell about

salary, scope of work.

(Source: http://www.best-job-interview.com/secretary-job-description.html)

95

4.3.3.3 Finance department

Job position: 2

Job type : full time

Job time : 9.00am – 16.00pm.

Job qualification

1. Male or female age at least 22 years old

2. Thai nationality

3. Knowledge and Experience about accounting at least 2 years

4. Well know and well experience of routes

5. Responsibility of duty

Job description

- Task of accountant is management and respond all of activities about finance,

account, record buy-sale, and order in-out of stock before send to manager for

check against. These works start on 9.00am-16.00pm.

Job requirement

- We will post a notice about apply for a job on area in front of store, area in

central of Ratchaburi, and post on internet. If somebody takes an interest, we

will have interview about finance and account skill.

4.3.3.4 Human resource department

Job position: 1

Job type : full time

Job time : 9.00am – 16.00pm.

96

Job qualification

1. Male / female, age at least 25- 30 years.

2. Master's or Bachelor's Degree

3. Thai nationality

4. Knowledge about choose skill each employees.

Job description

- Human resources are the people that staff and operate an organization. Learn

about the people who work in Human Resources. Specifically, learn about the

job description of the HR Manager, the HR generalist and the HR Director.

Job requirement

- We will post a notice about apply for a job on area in front of store, area in

central of Ratchaburi, and post on internet for another province. If somebody

takes an interest, we will have interview about skill. We will tell about salary,

scope of work.

4.3.3.5 R&D Department

Job position: 2

Job type : full time

Job time : 9.00am – 16.00pm.

Job qualification

1. Male / female, age at least 25- 30 years.

2. Master's or Bachelor's Degree.

3. Thai nationality.

4. Knowledge and experience about explore new methods and check of production.

97

Job description

- Focus on research and development to improve quality, and effectiveness of

the production and products for competitive in the market. Including make a

new market leader.

Job requirement

- We will be post notice about job description for apply a job in Ratchaburi

province and post in which internet for another province. We will post in both

ways. We will interview them about research & develop’s skill and we will tell

about salary, scope of work.

4.3.3.6 Marketing department

Job position: 2

Job type : full time

Job time : 9.00am – 16.00pm.

Job qualification

1. Male / female, age at least 25- 30 years.

2. Master's or Bachelor's Degree of business and marketing.

3. Thai nationality.

Job description

- Conduct market research such as customer questionnaires and focus groups,

sourcing advertising opportunities and placing adverts in the press (local,

regional, national and specialist publications) or on the radio (depending on the

organization and the campaign).

98

Job requirement

- We will post at internet and post notice in front of our shop at Ratchaburi and

Bangkok. Then we will interview them.

(Source: http://ww2.prospects.ac.uk/p/types_of_job/marketing_executive_job_description.jsp)

4.3.3.7 General staff

Job position: 1

Job type : full time

Job time : 9.00am – 16.00pm.

Job qualification

1. Male / female, age at least 23- 28 years.

2. Master's or Bachelor's Degree.

3. Thai nationality.

Job description

- Take care general and basic corporate of our company. Sometimes can help task

of each department.

Job requirement

- We will post at internet and post notice in front of our shop at Ratchaburi and

Bangkok. Then we will interview them before start the job and check her/him

job qualification.

99

4.3.3.8 Salesperson

Job position: 2

Job type : part time

Job time : 7.00am – 12.00pm, 12.00 – 17.00 pm.

Job qualification

1. Male / female, age at least 20- 27 years.

2. Thai nationality.

3. Friendly and polite.

Job description

- Task of seller person is selling our vegetable to customers and take care

customer about convenience when customer buy our vegetables including seller

person must have friendly and polite when they do work.

Job requirement

- We will be post notice about job description for apply a job on front of store

and central of Ratchaburi province. Include post on internet. We will interview

them before start the job and check her/him job qualification. We will tell

about salary, scope of work, test the skill, and ask about experience from

working.

4.3.3.9 Head gardener

Job position: 1

Job type : full time

Job time : 9.00am – 16.00pm.

100

Job qualification

1. Male age at least 30-35 years.

2. Professional in grow vegetables.

3. Can control a lot of people

4. Thai nationality.

Job description

- Responsible knowledge about vegetables, characteristic of soil and can control

gardeners including savvy, growing the vegetables.

- Have leadership skill and able to control others.

Job requirement

- We will be post notice about job description for apply a job on front of store.

We will interview them before start the job and check her/him job

qualification. We will tell about salary, scope of work, test the skill of control

and negotiation, and ask about experience from working.

4.3.3.10 Gardeners

Job position: 14

Job type : full time

Job time : 6.00am – 14.00pm.

Job qualification

1. Male / female age at least 25-35 years.

2. Professional in grow vegetables.

3. Thai nationality.

Job description

- Responsible knowledge about vegetables, characteristic of soil and can control

gardeners including savvy, growing the vegetables.

101

Job requirement

- We will be post notice about job description for apply a job on front of store.

We will interview them before start the job and check her/him job

qualification. We will tell about salary, scope of work, test the skill of control

and negotiation, and ask about experience from working.

4.3.3.11 Drivers

Job position: 2

Job type : full time

Job time : 6.00am – 14.00pm.

Job qualification

1. Male age at least 24 years old

2. Permanent driving license

3. Thai nationality

4. Knowledge and Experience about delivery least 2 years

5. Well know and well experience of routes

Job description

- Task of driver respond about delivery by transport. Move the product on the pickup

car to our shop, Move down the product from pickup car. Good car care and well skill

how to treat basic repair tired of pickup car. Well know the street. Perform the traffic

too stick. Do not drink in job time.

Job requirement

- We will post at internet and post notice in front of our shop at Ratchaburi and

Bangkok. Then we will interview them before start the job and check her/him

job qualification.

102

4.3.3.12 Housekeepers

Job position: 2

Job type : full time

Job time : 8.00am – 16.00pm.

Job qualification

1. Female age at least 25 years old

2. Thai nationality

3. Well skill in cleaning

4. Well know and well experience how to use equipment and chemicals for

cleaning.

5. Responsibility of duty

Job description

- Task of house keeper respond about cleaning all of product in farm and our

shop. Maintain the cleaning front of store area. Always clean when dirt. Always

clean the toilet. Care cleans all area of store. Polite confer to customer.

Job requirement

- We will be post notice about job description for apply a job on front of store

and post in which internet and office of department of employment, we will

post in both ways. We will interview them before start the job and check

her/him job qualification. We will tell about salary, scope of work, test the skill

of control and negotiation, and ask about experience from working.

4.3.3.13 Security guard

Job position: 2

Job type : full time

Job time : 6.00am – 18.00pm. , 18.00pm – 6.00 am

103

Job qualification

1. Male age at 25- 40 years old

2. Thai nationality

3. Well skill in fighting

4. Honest and polite

Job description

- Call police or fire departments in cases of emergency, such as fire or presence of

unauthorized persons. Circulate among visitors, patrons, and employees to

preserve order and protect property.

Job requirement

- We will be post notice about job description for apply a job in Ratchaburi

province and post in which internet for another province. We will post in both

ways. We will interview them about skill task and we will tell about salary,

scope of work.

104

4.4 Conclusion

There are 6 organic vegetable products that Daylight Company under the name

of “Happy Veggies” offers to the market. It includes Green/Romaine Cos, Butter Head,

Red Cos, Red Leaf Lettuce, Iceberg Lettuce and Green Ock Leaf.

Daylight Company invests at Ratchaburi and Bangkok because there are

2 branches, but the head office is at Suan Phueng district, Ratchaburi province.

The company has to buy land, building, equipment, vehicles and hire the company to

build the building. The total investment cost is 29,156,984 Baht.

Daylight Company has 33 staff which is 1 manager, 1 secretary, 2 staff of

finance department, 1 staff of HRM department, 2 staff of R&D department, 2 staff of

marketing department, 1 general staff, 1 head gardener, 14 gardeners, 2 sellers,

2 drivers, 2 housekeepers and 2 security guards.

105

Chapter 5 Financial Analysis

This Chapter includes income statement, statement of cash flow, balance sheet,

Net Present Value and Internal Rate of Return.

106

5.1 Income Statement

Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Revenue

Sales on cash 0.00 560,520.00 795,190.00 210,110.00 705,740.00 426,040.00 393,420.00 699,600.00 466,500.00 465,680.00 696,146.00 610,550.00 6,029,496.00

Total sale 0.00 560,520.00 795,190.00 210,110.00 705,740.00 426,040.00 393,420.00 699,600.00 466,500.00 465,680.00 696,146.00 610,550.00 6,029,496.00

Cost of Goods Sold

Raw Materials

Fertilizer 172,800 115,200 57,600 158,400 57,600 129,600 115,200 86,400 129,600 86,400 115,200 100,800 1,324,800.00

Seed 2,700 - 2,700 - 450 2,250 - 1,350 1,350 450 1,350 1,350 13,950.00

Other Cost of Goods Sold

Water Supply 675 412.5 262.5 637.5 225 487.5 450 337.5 487.5 375 412.5 412.5 5,175.00

Electricity Supply 821.40 470.25 291.69 769.46 251.50 577.24 247.43 185.21 268.47 205.44 481.13 471.47 5,040.69

Total other Cost of Goods Sold 821.40 470.25 291.69 769.46 251.50 577.24 247.43 185.21 268.47 205.44 481.13 471.47 5,040.69

Total cost of goods sold 176,321.40 115,670.25 60,591.69 159,169.46 58,301.50 132,427.24 115,447.43 87,935.21 131,218.47 87,055.44 117,031.13 102,621.47 1,343,790.69

Gross income -176,321.40 444,849.75 734,598.31 50,940.54 647,438.50 293,612.76 277,972.57 611,664.79 335,281.53 378,624.56 579,114.87 507,928.53 4,685,705.31

Operating expenses

Selling 62,311.52 6,000.00 6,000.00 9,811.52 6,000.00 6,000.00 12,311.52 6,000.00 6,000.00 9,811.52 6,000.00 6,000.00 142,246.08

General & Administrative 272,189.00 232,020.00 232,060.00 235,400.00 232,170.00 231,970.00 232,010.00 232,170.00 234,790.00 231,900.00 231,600.00 231,790.00 2,830,069.00

Depreciation 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 976,639.70

Total operating expenses 415,887.16 319,406.64 319,446.64 326,598.16 319,556.64 319,356.64 325,708.16 319,556.64 322,176.64 323,098.16 318,986.64 319,176.64 3,948,954.78

Operating Income (Loss) -592,208.56 125,443.11 415,151.67 -275,657.62 327,881.86 -25,743.88 -47,735.59 292,108.15 13,104.89 55,526.40 260,128.23 188,751.89 736,750.53

Interest Expense 107,100.00 106,594.41 106,086.24 105,575.49 105,062.12 104,546.14 104,027.53 103,506.27 102,982.35 102,455.76 101,926.49 101,394.52 1,251,257.32

EBIT -699,308.56 18,848.70 309,065.42 -381,233.11 222,819.74 -130,290.02 -151,763.12 188,601.88 -89,877.46 -46,929.36 158,201.74 87,357.37 -514,506.79

Income Tax 0.00 2,827.30 46,359.81 0.00 33,422.96 0.00 0.00 28,290.28 0.00 0.00 23,730.26 13,103.61 147,734.23

Net Income (Loss) -699,308.56 16,021.39 262,705.61 -381,233.11 189,396.78 -130,290.02 -151,763.12 160,311.60 -89,877.46 -46,929.36 134,471.48 74,253.77 -662,241.02

107

Beginning Retain Earnings 0.00 -699,308.56 -683,287.17 -420,581.56 -801,814.67 -612,417.89 -742,707.91 -894,471.03 -734,159.43 -824,036.90 -870,966.26 -736,494.78 -8,020,246.16

Retain earnings -699,308.56 -683,287.17 -420,581.56 -801,814.67 -612,417.89 -742,707.91 -894,471.03 -734,159.43 -824,036.90 -870,966.26 -736,494.78 -662,241.02 -8,682,487.18

Year 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Revenue

Sales on cash 498,304.00 637,720.00 693,320.00 622,120.00 794,900.00 495,720.00 447,915.00 640,440.00 686,325.00 630,135.00 745,330.00 376,125.00 7,268,354.00

Total sale 498,304.00 637,720.00 693,320.00 622,120.00 794,900.00 495,720.00 447,915.00 640,440.00 686,325.00 630,135.00 745,330.00 376,125.00 7,268,354.00

Cost of Goods Sold

Raw Materials

Fertilizer

151,200

84,000

134,400

151,200

84,000

134,400

168,000

67,200

151,200

117,600

117,600

151,200 1,512,000.00

Seed

1,050

525

1,575

1,050

1,050

2,100

1,050

1,050

1,050

1,050

2,100

525 14,175.00

Other Cost of Goods Sold

Water Supply 568.75 393.75 481.25 568.75 350 568.75 568.75 306.25 568.75 525 393.75 612.5 5,906.25

Electricity Supply 575.35 400.84 494.44 588.39 345.72 567.58 268.66 149.30 268.76 245.94 383.13 632.56 4,920.67

Total other Cost of Goods Sold 1,144.10 794.59 975.69 1,157.14 695.72 1,136.33 837.41 455.55 837.51 770.94 776.88 1,245.06 10,826.92

Total cost of goods sold 153,394.10 85,319.59 136,950.69 153,407.14 85,745.72 137,636.33 169,887.41 68,705.55 153,087.51 119,420.94 120,476.88 152,970.06 1,537,001.92

Gross income 344,909.90 552,400.41 556,369.31 468,712.86 709,154.28 358,083.67 278,027.59 571,734.45 533,237.49 510,714.06 624,853.12 223,154.94 5,731,352.08

Operating expenses

Selling 12,811.52 6,000.00 6,000.00 9,811.52 6,000.00 6,000.00 12,811.52 6,000.00 6,000.00 9,811.52 6,000.00 6,000.00 93,246.08

General & Administrative 272,189.00 232,020.00 232,060.00 235,400.00 232,170.00 231,970.00 232,010.00 232,170.00 234,790.00 231,900.00 231,600.00 231,790.00 2,830,069.00

Depreciation 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 976,639.70

Total operating expenses 366,387.16 319,406.64 319,446.64 326,598.16 319,556.64 319,356.64 326,208.16 319,556.64 322,176.64 323,098.16 318,986.64 319,176.64 3,899,954.78

Operating Income (Loss) -21,477.26 232,993.77 236,922.67 142,114.70 389,597.64 38,727.03 -48,180.57 252,177.81 211,060.85 187,615.90 305,866.48 -96,021.70 1,831,397.30

Interest Expenses 100,859.83 100,322.42 99,782.26 99,239.35 98,693.67 98,145.21 97,593.96 97,039.89 96,482.99 95,923.26 95,360.67 94,795.21 1,174,238.70

108

EBIT -122,337.09 132,671.35 137,140.41 42,875.35 290,903.96 -59,418.19 -145,774.53 155,137.92 114,577.86 91,692.64 210,505.81 -190,816.91 657,158.60

Income Tax 0.00 19,900.70 20,571.06 6,431.30 43,635.59 0.00 0.00 23,270.69 17,186.68 13,753.90 31,575.87 0.00 176,325.80

Net Income (Loss) -122,337.09 112,770.65 116,569.35 36,444.04 247,268.37 -59,418.19 -145,774.53 131,867.23 97,391.18 77,938.75 178,929.94 -190,816.91 480,832.80

Beginning Retain Earnings -662,241.02 -784,578.11 -671,807.46 -555,238.11 -518,794.07 -271,525.70 -330,943.88 -476,718.41 -344,851.17 -247,460.00 -169,521.25 9,408.69 -5,024,270.47

Retain earnings -784,578.11 -671,807.46 -555,238.11 -518,794.07 -271,525.70 -330,943.88 -476,718.41 -344,851.17 -247,460.00 -169,521.25 9,408.69 -181,408.22 -4,543,437.67

Year 3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Revenue

Sales on cash 915,280.00 915,040.00 579,600.00 916,440.00 602,840.00 669,600.00 666,680.00 832,200.00 627,680.00 466,680.00 1,028,200.00 591,040.00 8,811,280.00

Total sale 915,280.00 915,040.00 579,600.00 916,440.00 602,840.00 669,600.00 666,680.00 832,200.00 627,680.00 466,680.00 1,028,200.00 591,040.00 8,811,280.00

Cost of Goods Sold

Raw Materials

Fertilizer

96,000

153,600

172,800

115,200

172,800

115,200

134,400

134,400

172,800

96,000

134,400

230,400 1,728,000.00

Seed

600

3,000

600

1,200

1,800

600

1,800

1,200

2,400

-

1,800

1,800 16,800.00

Other Cost of Goods Sold

Water Supply 400 600 650 400 700 450 600 500 650 550 350 850 6,700.00

Electricity Supply 345.72 523.41 575.35 342.34 621.41 399.55 252.02 205.15 268.47 226.58 314.59 768.24 4,842.83

Total other Cost of Goods Sold 745.72 1,123.41 1,225.35 742.34 1,321.41 849.55 852.02 705.15 918.47 776.58 664.59 1,618.24 11,542.83

Total cost of goods sold 97,345.72 157,723.41 174,625.35 117,142.34 175,921.41 116,649.55 137,052.02 136,305.15 176,118.47 96,776.58 136,864.59 233,818.24 1,756,342.83

Gross income 817,934.28 757,316.59 404,974.65 799,297.66 426,918.59 552,950.45 529,627.98 695,894.85 451,561.53 369,903.42 891,335.41 357,221.76 7,054,937.17

Operating expenses

Selling 13,611.52 6,300.00 6,300.00 10,111.52 6,300.00 6,300.00 13,611.52 6,300.00 6,300.00 10,111.52 6,300.00 6,300.00 97,846.08

General & Administrative 272,189.00 232,020.00 232,060.00 235,400.00 232,170.00 231,970.00 232,010.00 232,170.00 234,790.00 231,900.00 231,600.00 231,790.00 2,830,069.00

Depreciation 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 976,639.70

109

Total operating expenses 367,187.16 319,706.64 319,746.64 326,898.16 319,856.64 319,656.64 327,008.16 319,856.64 322,476.64 323,398.16 319,286.64 319,476.64 3,904,554.78

Operating Income (Loss) 450,747.12 437,609.95 85,228.01 472,399.50 107,061.95 233,293.81 202,619.82 376,038.21 129,084.89 46,505.26 572,048.77 37,745.12 3,150,382.39

Interest Expenses 94,226.86 93,655.62 93,081.47 92,504.38 91,924.36 91,341.37 90,755.42 90,166.47 89,574.52 88,979.55 88,381.55 87,780.50 1,092,372.06

EBIT 356,520.26 343,954.33 -7,853.46 379,895.11 15,137.59 141,952.44 111,864.40 285,871.74 39,510.37 -42,474.29 483,667.22 -50,035.38 2,058,010.33

Income Tax 53,478.04 51,593.15 0.00 56,984.27 2,270.64 21,292.87 16,779.66 42,880.76 5,926.56 0.00 72,550.08 0.00 323,756.02

Net Income (Loss) 303,042.22 292,361.18 -7,853.46 322,910.85 12,866.95 120,659.57 95,084.74 242,990.98 33,583.81 -42,474.29 411,117.14 -50,035.38 1,734,254.31

Beginning Retain Earnings -

181,408.22 121,634.00 413,995.18 406,141.72 729,052.57 741,919.52 862,579.09 957,663.83 1,200,654.81 1,234,238.63 1,191,764.33 1,602,881.47 9,281,116.95

Retain earnings 121,634.00 413,995.18 406,141.72 729,052.57 741,919.52 862,579.09 957,663.83 1,200,654.81 1,234,238.63 1,191,764.33 1,602,881.47 1,552,846.09 11,015,371.26

Year 4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Revenue

Sales on cash 952,400.00 849,760.00 650,820.00 972,240.00 616,980.00 941,640.00 748,200.00 465,600.00 1,020,600.00 741,360.00 814,800.00 780,140.00 9,554,540.00

Total sale 952,400.00 849,760.00 650,820.00 972,240.00 616,980.00 941,640.00 748,200.00 465,600.00 1,020,600.00 741,360.00 814,800.00 780,140.00 9,554,540.00

Cost of Goods Sold

Raw Materials

Fertilizer

86,400

172,800

194,400

64,800

259,200

108,000

151,200

237,600

86,400

172,800

194,400

86,400 1,814,400.00

Seed

1,350

2,700

-

2,025

2,025

-

4,050

-

675

3,375

675

1,350 18,225.00

Other Cost of Goods Sold

Water Supply 337.5 731.25 843.75 168.75 1012.5 450 562.5 900 281.25 787.5 731.25 393.75 7,200.00

Electricity Supply 247.52 567.58 665.58 122.37 821.40 332.68 206.25 330.69 103.91 287.02 575.35 302.84 4,563.19

Total other Cost of Goods Sold 585.02 1,298.83 1,509.33 291.12 1,833.90 782.68 768.75 1,230.69 385.16 1,074.52 1,306.60 696.59 11,763.19

Total cost of goods sold 88,335.02 176,798.83 195,909.33 67,116.12 263,058.90 108,782.68 156,018.75 238,830.69 87,460.16 177,249.52 196,381.60 88,446.59 1,844,388.19

Gross income 864,064.98 672,961.17 454,910.67 905,123.88 353,921.10 832,857.32 592,181.25 226,769.31 933,139.84 564,110.48 618,418.40 691,693.41 7,710,151.81

110

Operating expenses

Selling 14,211.52 6,400.00 6,400.00 10,211.52 6,400.00 6,400.00 14,211.52 6,400.00 6,400.00 10,211.52 6,400.00 6,400.00 100,046.08

General & Administrative 272,189.00 232,020.00 232,060.00 235,400.00 232,170.00 231,970.00 232,010.00 232,170.00 234,790.00 231,900.00 231,600.00 231,790.00 2,830,069.00

Depreciation 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 976,639.70

Total operating expenses 367,787.16 319,806.64 319,846.64 326,998.16 319,956.64 319,756.64 327,608.16 319,956.64 322,576.64 323,498.16 319,386.64 319,576.64 3,906,754.78

Operating Income (Loss) 496,277.82 353,154.53 135,064.03 578,125.72 33,964.46 513,100.68 264,573.09 -93,187.33 610,563.20 240,612.32 299,031.76 372,116.77 3,803,397.03

Interest Expenses 135,322.81 134,761.42 134,195.59 133,625.27 133,050.45 132,471.07 131,887.10 131,298.52 130,705.27 130,107.33 129,504.65 128,897.20 1,585,826.67

EBIT 360,955.01 218,393.11 868.44 444,500.44 -99,085.99 380,629.61 132,685.98 -224,485.85 479,857.93 110,504.99 169,527.11 243,219.57 2,217,570.36

Income Tax 54,143.25 32,758.97 130.27 66,675.07 0.00 57,094.44 19,902.90 0.00 71,978.69 16,575.75 25,429.07 36,482.94 381,171.33

Net Income (Loss) 306,811.76 185,634.14 738.18 377,825.38 -99,085.99 323,535.17 112,783.09 -224,485.85 407,879.24 93,929.24 144,098.04 206,736.63 1,836,399.03

Beginning Retain Earnings 1,552,846.09 1,859,657.85 2,045,292.00 2,046,030.17 2,423,855.55 2,324,769.56 2,648,304.73 2,761,087.81 2,536,601.96 2,944,481.20 3,038,410.45 3,182,508.49 29,363,845.86

Retain earnings 1,859,657.85 2,045,292.00 2,046,030.17 2,423,855.55 2,324,769.56 2,648,304.73 2,761,087.81 2,536,601.96 2,944,481.20 3,038,410.45 3,182,508.49 3,389,245.12 31,200,244.89

Year 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Revenue

Sales on cash 580,840.00 793,360.00 1,176,870.00 1,050,770.00 939,525.00 870,230.00 702,105.00 1,085,080.00 1,234,150.00 911,410.00 860,000.00 1,029,360.00 11,233,700.00

Total sale 580,840.00 793,360.00 1,176,870.00 1,050,770.00 939,525.00 870,230.00 702,105.00 1,085,080.00 1,234,150.00 911,410.00 860,000.00 1,029,360.00 11,233,700.00

Cost of Goods Sold

Raw Materials

Fertilizer

240,000

168,000

144,000

216,000

192,000

144,000

192,000

144,000

144,000

192,000

192,000

120,000 2,088,000.00

Seed

2,250

750

2,250

2,250

1,500

3,000

-

1,500

3,000

-

3,000

1,500 21,000.00

Other Cost of Goods Sold

Water Supply 875 687.5 500 875 687.5 625 750 625 500 750 750 500 8,125.00

Electricity Supply 631.34 495.66 355.38 619.52 470.25 441.63 247.72 205.44 165.94 247.33 523.41 345.72 4,749.34

111

Total other Cost of Goods Sold 1,506.34 1,183.16 855.38 1,494.52 1,157.75 1,066.63 997.72 830.44 665.94 997.33 1,273.41 845.72 12,874.34

Total cost of goods sold 243,756.34 169,933.16 147,105.38 219,744.52 194,657.75 148,066.63 192,997.72 146,330.44 147,665.94 192,997.33 196,273.41 122,345.72 2,121,874.34

Gross income 337,083.66 623,426.84 1,029,764.62 831,025.48 744,867.25 722,163.37 509,107.28 938,749.56 1,086,484.06 718,412.67 663,726.59 907,014.28 9,111,825.66

Operating expenses

Selling 14,611.52 6,500.00 6,500.00 10,311.52 6,500.00 6,500.00 14,611.52 6,500.00 6,500.00 10,311.52 6,500.00 6,500.00 101,846.08

General & Administrative 272,189.00 232,020.00 232,060.00 235,400.00 232,170.00 231,970.00 232,010.00 232,170.00 234,790.00 231,900.00 231,600.00 231,790.00 2,830,069.00

Depreciation 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 81,386.64 976,639.70

Total operating expenses 368,187.16 319,906.64 319,946.64 327,098.16 320,056.64 319,856.64 328,008.16 320,056.64 322,676.64 323,598.16 319,486.64 319,676.64 3,908,554.78

Operating Income (Loss) -31,103.50 303,520.20 709,817.98 503,927.32 424,810.61 402,306.73 181,099.12 618,692.92 763,807.42 394,814.51 344,239.95 587,337.64 5,203,270.88

Interest Expenses 128,284.94 127,667.84 127,045.85 126,418.93 125,787.06 125,150.18 124,508.25 123,861.25 123,209.12 122,551.84 121,889.34 121,221.61 1,497,596.20

EBIT -159,388.44 175,852.36 582,772.13 377,508.39 299,023.55 277,156.55 56,590.86 494,831.67 640,598.29 272,262.67 222,350.60 466,116.03 3,705,674.68

Income Tax 0.00 26,377.85 87,415.82 56,626.26 44,853.53 41,573.48 8,488.63 74,224.75 96,089.74 40,839.40 33,352.59 69,917.40 579,759.47

Net Income (Loss) -159,388.44 149,474.51 495,356.31 320,882.13 254,170.02 235,583.07 48,102.23 420,606.92 544,508.55 231,423.27 188,998.01 396,198.63 3,125,915.21

Beginning Retain Earnings 3,389,245.12 3,229,856.68 3,379,331.19 3,874,687.50 4,195,569.63 4,449,739.65 4,685,322.72 4,733,424.95 5,154,031.87 5,698,540.42 5,929,963.69 6,118,961.70 54,838,675.12

Retain earnings 3,229,856.68 3,379,331.19 3,874,687.50 4,195,569.63 4,449,739.65 4,685,322.72 4,733,424.95 5,154,031.87 5,698,540.42 5,929,963.69 6,118,961.70 6,515,160.33 57,964,590.33

112

5.2 Cash Flow Statement

Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Cash Provided From Operating Activities

Cash Inflow

Sale on cash 0.00 560,520.00 795,190.00 210,110.00 705,740.00 426,040.00 393,420.00 699,600.00 466,500.00 465,680.00 696,146.00 610,550.00 6,029,496.00

Total Cash Inflow 0.00 560,520.00 795,190.00 210,110.00 705,740.00 426,040.00 393,420.00 699,600.00 466,500.00 465,680.00 696,146.00 610,550.00 6,029,496.00

Cash Outflow

Other Cost of goods sold 821.40 470.25 291.69 769.46 251.50 577.24 247.43 185.21 268.47 205.44 481.13 471.47 5,040.69

Selling 62,311.52 6,000.00 6,000.00 9,811.52 6,000.00 6,000.00 12,311.52 6,000.00 6,000.00 9,811.52 6,000.00 6,000.00 142,246.08

General & Administration 272,189.00 232,020.00 232,060.00 235,400.00 232,170.00 231,970.00 232,010.00 232,170.00 234,790.00 231,900.00 231,600.00 231,790.00 2,830,069.00

Interest Expense 107,100.00 106,594.41 106,086.24 105,575.49 105,062.12 104,546.14 104,027.53 103,506.27 102,982.35 102,455.76 101,926.49 101,394.52 1,251,257.32

Tax Expense 0.00 2,827.30 46,359.81 0.00 33,422.96 0.00 0.00 28,290.28 0.00 0.00 23,730.26 13,103.61 147,734.23

Total Cash Outflow 442,421.92 347,911.97 390,797.75 351,556.47 376,906.58 343,093.38 348,596.48 370,151.76 344,040.82 344,372.72 363,737.88 352,759.59 4,376,347.32

Net Cash from Operating Activities -442,421.92 212,608.03 404,392.25 -141,446.47 328,833.42 82,946.62 44,823.52 329,448.24 122,459.18 121,307.28 332,408.12 257,790.41 1,653,148.68

Cash Provided From Investing Activities

Cash Inflow

Sale Equipment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cash Outflow

Purchased Land & Building 8,520,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8,520,000.00

Purchased Vehicle 2,596,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,596,000.00

Purchased Office Supply 16,378.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16,378.00

Purchased Equipment 660,477.00 660,477.00

Purchased Farm Supply 8,551,350.00 8,551,350.00

Fee 23,920.00 23,920.00

Total Cash Outflow 20,368,125.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 20,368,125.00

113

Net Cash from Investing Activities -20,368,125.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -20,368,125.00

Cash Provided From Financing Activities

Cash Inflow

Borrowing Bank 21,000,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 21,000,000.00

Total Cash Inflow 21,000,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 21,000,000.00

Cash Outflow

Principal Payment 99,135.02 99,640.61 100,148.78 100,659.54 101,172.90 101,688.88 102,207.50 102,728.75 103,252.67 103,779.26 104,308.53 104,840.51 1,223,562.94

Total Cash Outflow 99,135.02 99,640.61 100,148.78 100,659.54 101,172.90 101,688.88 102,207.50 102,728.75 103,252.67 103,779.26 104,308.53 104,840.51 1,223,562.94

Net Cash from Financing Activities 20,900,864.98 -99,640.61 -100,148.78 -100,659.54 -101,172.90 -101,688.88 -102,207.50 -102,728.75 -103,252.67 -103,779.26 -104,308.53 -104,840.51 19,776,437.06

Net Cash Increase or Decrease 90,318.06 112,967.42 304,243.47 -242,106.00 227,660.52 -18,742.26 -57,383.97 226,719.49 19,206.51 17,528.02 228,099.59 152,949.90 1,061,460.74

Cash Beginning of the month 0.00 90,318.06 203,285.48 507,528.96 265,422.95 493,083.47 474,341.21 416,957.24 643,676.72 662,883.23 680,411.25 908,510.84 5,346,419.41

Cash Ending of the month 90,318.06 203,285.48 507,528.96 265,422.95 493,083.47 474,341.21 416,957.24 643,676.72 662,883.23 680,411.25 908,510.84 1,061,460.74 6,407,880.15

Year 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Cash Provided From Operating Activities

Cash Inflow

Sale on cash 498,304.00 637,720.00 693,320.00 622,120.00 794,900.00 495,720.00 447,915.00 640,440.00 686,325.00 630,135.00 745,330.00 376,125.00 7,268,354.00

Total Cash Inflow 498,304.00 637,720.00 693,320.00 622,120.00 794,900.00 495,720.00 447,915.00 640,440.00 686,325.00 630,135.00 745,330.00 376,125.00 7,268,354.00

Cash Outflow

Cost of goods sold 1,144.10 794.59 975.69 1,157.14 695.72 1,136.33 837.41 455.55 837.51 770.94 776.88 1,245.06 10,826.92

Selling 12,811.52 6,000.00 6,000.00 9,811.52 6,000.00 6,000.00 12,811.52 6,000.00 6,000.00 9,811.52 6,000.00 6,000.00 93,246.08

General & Administration 272,189.00 232,020.00 232,060.00 235,400.00 232,170.00 231,970.00 232,010.00 232,170.00 234,790.00 231,900.00 231,600.00 231,790.00 2,830,069.00

Interest Expense 100,859.83 100,322.42 99,782.26 99,239.35 98,693.67 98,145.21 97,593.96 97,039.89 96,482.99 95,923.26 95,360.67 94,795.21 1,174,238.70

Tax Expense 0.00 19,900.70 20,571.06 6,431.30 43,635.59 0.00 0.00 23,270.69 17,186.68 13,753.90 31,575.87 0.00 176,325.80

Total Cash Outflow 387,004.45 359,037.71 359,389.01 352,039.31 381,194.99 337,251.54 343,252.89 358,936.12 355,297.18 352,159.61 365,313.42 333,830.27 4,284,706.50

Net Cash from Operating Activities 111,299.55 278,682.29 333,930.99 270,080.69 413,705.01 158,468.46 104,662.11 281,503.88 331,027.82 277,975.39 380,016.58 42,294.73 2,983,647.50

114

Cash Provided From Investing Activities

Cash Inflow

Sale Equipment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cash Outflow

Purchased Land & Building 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Vehicle 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Office Supply 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Shop Supply 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Equipment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Farm Supply 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cash Outflow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Cash from Investing Activities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cash Provided From Financing Activities

Cash Inflow

Borrowing Bank 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cash Outflow

Principal Payment 105,375.19 105,912.61 106,452.76 106,995.67 107,541.35 108,089.81 108,641.07 109,195.14 109,752.03 110,311.77 110,874.36 111,439.82 1,300,581.56

Total Cash Outflow 105,375.19 105,912.61 106,452.76 106,995.67 107,541.35 108,089.81 108,641.07 109,195.14 109,752.03 110,311.77 110,874.36 111,439.82 1,300,581.56

Net Cash from Financing Activities -105,375.19 -105,912.61 -106,452.76 -106,995.67 -107,541.35 -108,089.81 -108,641.07 -109,195.14 -109,752.03 -110,311.77 -110,874.36 -111,439.82 -1,300,581.56

Net Cash Increase or Decrease 5,924.36 172,769.69 227,478.23 163,085.02 306,163.66 50,378.65 -3,978.95 172,308.74 221,275.79 167,663.62 269,142.23 -69,145.08 1,683,065.94

Cash Beginning of the month 1,061,460.74 1,067,385.10 1,240,154.78 1,467,633.01 1,630,718.03 1,936,881.69 1,987,260.34 1,983,281.39 2,155,590.13 2,376,865.92 2,544,529.54 2,813,671.76 22,265,432.41

Cash Ending of the month 1,067,385.10 1,240,154.78 1,467,633.01 1,630,718.03 1,936,881.69 1,987,260.34 1,983,281.39 2,155,590.13 2,376,865.92 2,544,529.54 2,813,671.76 2,744,526.68 23,948,498.35

115

Year 3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Cash Provided From Operating Activities

Cash Inflow

Sale on cash 915,280.00 915,040.00 579,600.00 916,440.00 602,840.00 669,600.00 666,680.00 832,200.00 627,680.00 466,680.00 1,028,200.00 591,040.00 8,811,280.00

Total Cash Inflow 915,280.00 915,040.00 579,600.00 916,440.00 602,840.00 669,600.00 666,680.00 832,200.00 627,680.00 466,680.00 1,028,200.00 591,040.00 8,811,280.00

Cash Outflow

Other Cost of goods sold 745.72 1,123.41 1,225.35 742.34 1,321.41 849.55 852.02 705.15 918.47 776.58 664.59 1,618.24 11,542.83

Selling 13,611.52 6,300.00 6,300.00 10,111.52 6,300.00 6,300.00 13,611.52 6,300.00 6,300.00 10,111.52 6,300.00 6,300.00 97,846.08

General & Administration 272,189.00 232,020.00 232,060.00 235,400.00 232,170.00 231,970.00 232,010.00 232,170.00 234,790.00 231,900.00 231,600.00 231,790.00 2,830,069.00

Interest Expense 94,226.86 93,655.62 93,081.47 92,504.38 91,924.36 91,341.37 90,755.42 90,166.47 89,574.52 88,979.55 88,381.55 87,780.50 1,092,372.06

Tax Expense 53,478.04 51,593.15 0.00 56,984.27 2,270.64 21,292.87 16,779.66 42,880.76 5,926.56 0.00 72,550.08 0.00 323,756.02

Total Cash Outflow 434,251.14 384,692.18 332,666.82 395,742.51 333,986.41 351,753.79 354,008.62 372,222.38 337,509.54 331,767.65 399,496.22 327,488.74 4,355,585.99

Net Cash from Operating Activities 481,028.86 530,347.82 246,933.18 520,697.49 268,853.59 317,846.21 312,671.38 459,977.62 290,170.46 134,912.35 628,703.78 263,551.26 4,455,694.01

Cash Provided From Investing Activities

Cash Inflow

Sale Equipment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cash Outflow

Purchased Land & Building 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Vehicle 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Office Supply 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Equipment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Farm Supply 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cash Outflow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Cash from Investing Activities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cash Provided From Financing Activities

Cash Inflow

116

Borrowing Bank 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cash Outflow

Principal Payment 112,008.16 112,579.40 113,153.56 113,730.64 114,310.66 114,893.65 115,479.61 116,068.55 116,660.50 117,255.47 117,853.47 118,454.53 1,382,448.20

Total Cash Outflow 112,008.16 112,579.40 113,153.56 113,730.64 114,310.66 114,893.65 115,479.61 116,068.55 116,660.50 117,255.47 117,853.47 118,454.53 1,382,448.20

Net Cash from Financing Activities -112,008.16 -112,579.40 -113,153.56 -113,730.64 -114,310.66 -114,893.65 -115,479.61 -116,068.55 -116,660.50 -117,255.47 -117,853.47 -118,454.53 -1,382,448.20

Net Cash Increase or Decrease 369,020.70 417,768.42 133,779.63 406,966.85 154,542.93 202,952.56 197,191.78 343,909.07 173,509.95 17,656.88 510,850.31 145,096.74 3,073,245.81

Cash Beginning of the month 2,744,526.68 3,113,547.38 3,531,315.80 3,665,095.43 4,072,062.28 4,226,605.21 4,429,557.77 4,626,749.55 4,970,658.62 5,144,168.57 5,161,825.45 5,672,675.75 51,358,788.48

Cash Ending of the month 3,113,547.38 3,531,315.80 3,665,095.43 4,072,062.28 4,226,605.21 4,429,557.77 4,626,749.55 4,970,658.62 5,144,168.57 5,161,825.45 5,672,675.75 5,817,772.49 54,432,034.29

Year 4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Cash Provided From Operating Activities

Cash Inflow

Sale on cash 952,400.00 849,760.00 650,820.00 972,240.00 616,980.00 941,640.00 748,200.00 465,600.00 1,020,600.00 741,360.00 814,800.00 780,140.00 9,554,540.00

Total Cash Inflow 952,400.00 849,760.00 650,820.00 972,240.00 616,980.00 941,640.00 748,200.00 465,600.00 1,020,600.00 741,360.00 814,800.00 780,140.00 9,554,540.00

Cash Outflow

Other Cost of good sold 585.02 1,298.83 1,509.33 291.12 1,833.90 782.68 768.75 1,230.69 385.16 1,074.52 1,306.60 696.59 11,763.19

Selling 14,211.52 6,400.00 6,400.00 10,211.52 6,400.00 6,400.00 14,211.52 6,400.00 6,400.00 10,211.52 6,400.00 6,400.00 100,046.08

General & Administration 272,189.00 232,020.00 232,060.00 235,400.00 232,170.00 231,970.00 232,010.00 232,170.00 234,790.00 231,900.00 231,600.00 231,790.00 2,830,069.00

Interest Expense 135,322.81 134,761.42 134,195.59 133,625.27 133,050.45 132,471.07 131,887.10 131,298.52 130,705.27 130,107.33 129,504.65 128,897.20 1,585,826.67

Tax Expense 54,143.25 32,758.97 130.27 66,675.07 0.00 57,094.44 19,902.90 0.00 71,978.69 16,575.75 25,429.07 36,482.94 381,171.33

Total Cash Outflow 476,451.60 407,239.22 374,295.18 446,202.98 373,454.35 428,718.19 398,780.27 371,099.21 444,259.12 389,869.11 394,240.31 404,266.72 4,908,876.27

Net Cash from Operating Activities 475,948.40 442,520.78 276,524.82 526,037.02 243,525.65 512,921.81 349,419.73 94,500.79 576,340.88 351,490.89 420,559.69 375,873.28 4,645,663.73

Cash Provided From Investing Activities

Cash Inflow

117

Sale Equipment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cash Outflow

Purchased Land & Building 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Vehicle 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Office Supply 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Equipment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Farm Supply 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cash Outflow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Cash from Investing Activities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cash Provided From Financing Activities

Cash Inflow

Borrowing Bank 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cash Outflow

Principal Payment 70,912.21 71,473.60 72,039.44 72,609.75 73,184.57 73,763.95 74,347.92 74,936.50 75,529.75 76,127.70 76,730.37 77,337.82 888,993.59

Total Cash Outflow 70,912.21 71,473.60 72,039.44 72,609.75 73,184.57 73,763.95 74,347.92 74,936.50 75,529.75 76,127.70 76,730.37 77,337.82 888,993.59

Net Cash from Financing Activities -70,912.21 -71,473.60 -72,039.44 -72,609.75 -73,184.57 -73,763.95 -74,347.92 -74,936.50 -75,529.75 -76,127.70 -76,730.37 -77,337.82 -888,993.59

Net Cash Increase or Decrease 405,036.19 371,047.18 204,485.38 453,427.27 170,341.08 439,157.86 275,071.81 19,564.29 500,811.13 275,363.19 343,829.31 298,535.45 3,756,670.14

Cash Beginning of the month 5,817,772.49 6,222,808.68 6,593,855.86 6,798,341.24 7,251,768.51 7,422,109.59 7,861,267.45 8,136,339.26 8,155,903.55 8,656,714.67 8,932,077.86 9,275,907.17 91,124,866.33

Cash Ending of the month 6,222,808.68 6,593,855.86 6,798,341.24 7,251,768.51 7,422,109.59 7,861,267.45 8,136,339.26 8,155,903.55 8,656,714.67 8,932,077.86 9,275,907.17 9,574,442.63 94,881,536.46

118

Year 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Cash Provided From Operating Activities

Cash Inflow

Sale on cash 580,840.00 793,360.00 1,176,870.00 1,050,770.00 939,525.00 870,230.00 702,105.00 1,085,080.00 1,234,150.00 911,410.00 860,000.00 1,029,360.00 11,233,700.00

Total Cash Inflow 580,840.00 793,360.00 1,176,870.00 1,050,770.00 939,525.00 870,230.00 702,105.00 1,085,080.00 1,234,150.00 911,410.00 860,000.00 1,029,360.00 11,233,700.00

Cash Outflow

Other Cost of good sold 1,506.34 1,183.16 855.38 1,494.52 1,157.75 1,066.63 997.72 830.44 665.94 997.33 1,273.41 845.72 12,874.34

Selling 14,611.52 6,500.00 6,500.00 10,311.52 6,500.00 6,500.00 14,611.52 6,500.00 6,500.00 10,311.52 6,500.00 6,500.00 101,846.08

General & Administration 272,189.00 232,020.00 232,060.00 235,400.00 232,170.00 231,970.00 232,010.00 232,170.00 234,790.00 231,900.00 231,600.00 231,790.00 2,830,069.00

Interest Expense 128,284.94 127,667.84 127,045.85 126,418.93 125,787.06 125,150.18 124,508.25 123,861.25 123,209.12 122,551.84 121,889.34 121,221.61 1,497,596.20

Tax Expense 0.00 26,377.85 87,415.82 56,626.26 44,853.53 41,573.48 8,488.63 74,224.75 96,089.74 40,839.40 33,352.59 69,917.40 579,759.47

Total Cash Outflow 416,591.80 393,748.85 453,877.05 430,251.23 410,468.34 406,260.29 380,616.12 437,586.44 461,254.81 406,600.09 394,615.34 430,274.73 5,022,145.09

Net Cash from Operating Activities 164,248.20 399,611.15 722,992.95 620,518.77 529,056.66 463,969.71 321,488.88 647,493.56 772,895.19 504,809.91 465,384.66 599,085.27 6,211,554.91

Cash Provided From Investing Activities

Cash Inflow

Sale Equipment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cash Outflow

Purchased Land & Building 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Vehicle 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Office Supply 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Equipment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Purchased Farm Supply 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cash Outflow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Cash from Investing Activities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cash Provided From Financing Activities

Cash Inflow

119

Borrowing Bank 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cash Outflow

Principal Payment 77,950.08 78,567.18 79,189.18 79,816.09 80,447.97 81,084.85 81,726.77 82,373.77 83,025.90 83,683.19 84,345.68 85,013.41 977,224.06

Total Cash Outflow 77,950.08 78,567.18 79,189.18 79,816.09 80,447.97 81,084.85 81,726.77 82,373.77 83,025.90 83,683.19 84,345.68 85,013.41 977,224.06

Net Cash from Financing Activities -77,950.08 -78,567.18 -79,189.18 -79,816.09 -80,447.97 -81,084.85 -81,726.77 -82,373.77 -83,025.90 -83,683.19 -84,345.68 -85,013.41 -977,224.06

Net Cash Increase or Decrease 86,298.12 321,043.96 643,803.78 540,702.68 448,608.70 382,884.87 239,762.11 565,119.79 689,869.29 421,126.73 381,038.98 514,071.85 5,234,330.85

Cash Beginning of the month 9,574,442.63 9,660,740.75 9,981,784.71 10,625,588.49 11,166,291.17 11,614,899.86 11,997,784.73 12,237,546.84 12,802,666.62 13,492,535.92 13,913,662.65 14,294,701.62 141,362,645.98

Cash Ending of the month 9,660,740.75 9,981,784.71 10,625,588.49 11,166,291.17 11,614,899.86 11,997,784.73 12,237,546.84 12,802,666.62 13,492,535.92 13,913,662.65 14,294,701.62 14,808,773.48 146,596,976.83

5.3 Balance Sheet

Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Asset

Current Assets

Cash 90,318.06 203,285.48 507,528.96 265,422.95 493,083.47 474,341.21 416,957.24 643,676.72 662,883.23 680,411.25 908,510.84 1,061,460.74

6,407,880.15

Farm Supply 8,375,850.00 8,260,650.00 8,200,350.00 8,041,950.00 7,983,900.00 7,852,050.00 7,736,850.00 7,649,100.00 7,518,150.00 7,431,300.00 7,314,750.00 7,212,600.00

93,577,500.00

Total Current Assets

8,466,168.06

8,463,935.48

8,707,878.96

8,307,372.95

8,476,983.47

8,326,391.21

8,153,807.24

8,292,776.72

8,181,033.23

8,111,711.25

8,223,260.84

8,274,060.74

99,985,380.15

Fixed Assets

Land & Building

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

102,240,000.00

Equipments

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

7,925,724.00

Office Supply

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

196,536.00

Vehicles

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

31,152,000.00

120

Fee

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

287,040.00

Less : Accumulated

Depreciation

81,386.64

162,773.28

244,159.93

325,546.57

406,933.21

488,319.85

569,706.49

651,093.13

732,479.78

813,866.42

895,253.06

976,639.70

6,348,158.05

Total Fixed Assets

11,735,388.36

11,654,001.72

11,572,615.08

11,491,228.43

11,409,841.79

11,328,455.15

11,247,068.51

11,165,681.87

11,084,295.23

11,002,908.58

10,921,521.94

10,840,135.30

135,453,141.95

Total Assets

20,201,556.42

20,117,937.20

20,280,494.03

19,798,601.39

19,886,825.26

19,654,846.36

19,400,875.75

19,458,458.59

19,265,328.46

19,114,619.83

19,144,782.78

19,114,196.04

235,438,522.10

Liabilities & Owners' Equity

Current Liabilities

Long-term debt 21,000,000.00 20,900,864.98 20,801,224.37 20,701,075.59 20,600,416.05 20,499,243.15 20,397,554.27 20,295,346.78 20,192,618.02 20,089,365.35 19,985,586.09 19,881,277.56

245,344,572.22

Less : Loan Principal 99,135.02 99,640.61 100,148.78 100,659.54 101,172.90 101,688.88 102,207.50 102,728.75 103,252.67 103,779.26 104,308.53 104,840.51

1,223,562.94

Total Liabilities

20,900,864.98

20,801,224.37

20,701,075.59

20,600,416.05

20,499,243.15

20,397,554.27

20,295,346.78

20,192,618.02

20,089,365.35

19,985,586.09

19,881,277.56

19,776,437.06

244,121,009.28

Owners' Equity

Retain Earnings -699,308.56 -683,287.17 -420,581.56 -801,814.67 -612,417.89 -742,707.91 -894,471.03 -734,159.43 -824,036.90 -870,966.26 -736,494.78 -662,241.02

-

8,682,487.18

Total Owners' Equity -699,308.56 -683,287.17 -420,581.56 -801,814.67 -612,417.89 -742,707.91 -894,471.03 -734,159.43 -824,036.90 -870,966.26 -736,494.78 -662,241.02

-

8,682,487.18

Total Liabilities & Owners'

Equity

20,201,556.42

20,117,937.20

20,280,494.03

19,798,601.39

19,886,825.26

19,654,846.36

19,400,875.75

19,458,458.59

19,265,328.46

19,114,619.83

19,144,782.78

19,114,196.04

235,438,522.10

Year 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Asset

Current Assets

Cash 1,067,385.10 1,240,154.78 1,467,633.01 1,630,718.03 1,936,881.69 1,987,260.34 1,983,281.39 2,155,590.13 2,376,865.92 2,544,529.54 2,813,671.76 2,744,526.68

23,948,498.35

Farm Supply 7,060,350.00 6,975,825.00 6,839,850.00 6,687,600.00 6,602,550.00 6,466,050.00 6,297,000.00 6,228,750.00 6,076,500.00 5,957,850.00 5,838,150.00 5,686,425.00

Total Current Assets

8,127,735.10

8,215,979.78

8,307,483.01

8,318,318.03

8,539,431.69

8,453,310.34

8,280,281.39

8,384,340.13

8,453,365.92

8,502,379.54

8,651,821.76

8,430,951.68

100,665,398.35

121

Fixed Assets

Land & Building

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

102,240,000.00

Equipments

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

7,925,724.00

Office Supply

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

196,536.00

Vehicles

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

31,152,000.00

Fee

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

287,040.00

Less : Accumulated Depreciation

1,058,026.34

1,139,412.98

1,220,799.63

1,302,186.27

1,383,572.91

1,464,959.55

1,546,346.19

1,627,732.83

1,709,119.48

1,790,506.12

1,871,892.76

1,953,279.40

18,067,834.45

Total Fixed Assets

10,758,748.66

10,677,362.02

10,595,975.38

10,514,588.73

10,433,202.09

10,351,815.45

10,270,428.81

10,189,042.17

10,107,655.53

10,026,268.88

9,944,882.24

9,863,495.60

123,733,465.55

Total Assets

18,886,483.76

18,893,341.80

18,903,458.39

18,832,906.76

18,972,633.78

18,805,125.79

18,550,710.19

18,573,382.29

18,561,021.44

18,528,648.42

18,596,704.00

18,294,447.28

224,398,863.90

Liabilities & Owners' Equity

Current Liabilities

Long-term debt 19,776,437.06 19,671,061.86 19,565,149.26 19,458,696.50 19,351,700.83 19,244,159.48 19,136,069.67 19,027,428.60 18,918,233.47 18,808,481.44 18,698,169.67 18,587,295.31

230,242,883.13

Less : Loan Principal 105,375.19 105,912.61 106,452.76 106,995.67 107,541.35 108,089.81 108,641.07 109,195.14 109,752.03 110,311.77 110,874.36 111,439.82

1,300,581.56

Total Liabilities

19,671,061.86

19,565,149.26

19,458,696.50

19,351,700.83

19,244,159.48

19,136,069.67

19,027,428.60

18,918,233.47

18,808,481.44

18,698,169.67

18,587,295.31

18,475,855.50

228,942,301.57

Owners' Equity

Retain Earnings -784,578.11 -671,807.46 -555,238.11 -518,794.07 -271,525.70 -330,943.88 -476,718.41 -344,851.17 -247,460.00 -169,521.25 9,408.69 -181,408.22

-

4,543,437.67

Total Owners' Equity -784,578.11 -671,807.46 -555,238.11 -518,794.07 -271,525.70 -330,943.88 -476,718.41 -344,851.17 -247,460.00 -169,521.25 9,408.69 -181,408.22 - 4,543,437.67

Total Liabilities & Owners' Equity

18,886,483.76

18,893,341.80

18,903,458.39

18,832,906.76

18,972,633.78

18,805,125.79

18,550,710.19

18,573,382.29

18,561,021.44

18,528,648.42

18,596,704.00

18,294,447.28

224,398,863.90

122

Year 3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Asset

Current Assets

Cash 3,113,547.38 3,531,315.80 3,665,095.43 4,072,062.28 4,226,605.21 4,429,557.77 4,626,749.55 4,970,658.62 5,144,168.57 5,161,825.45 5,672,675.75 5,817,772.49

54,432,034.29

Farm Supply 5,589,825.00 5,433,225.00 5,259,825.00 5,143,425.00 4,968,825.00 4,853,025.00 4,716,825.00 4,581,225.00 4,406,025.00 4,310,025.00 4,173,825.00 3,941,625.00

57,377,700.00

Total Current Assets

8,703,372.38

8,964,540.80

8,924,920.43

9,215,487.28

9,195,430.21

9,282,582.77

9,343,574.55

9,551,883.62

9,550,193.57

9,471,850.45

9,846,500.75

9,759,397.49

111,809,734.29

Fixed Assets

Land & Building

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

102,240,000.00

Equipments

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

7,925,724.00

Office Supply

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

196,536.00

Vehicles

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

31,152,000.00

Fee

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

287,040.00

Less : Accumulated

Depreciation

2,034,666.04

2,116,052.68

2,197,439.33

2,278,825.97

2,360,212.61

2,441,599.25

2,522,985.89

2,604,372.53

2,685,759.18

2,767,145.82

2,848,532.46

2,929,919.10

29,787,510.85

Total Fixed Assets

9,782,108.96

9,700,722.32

9,619,335.68

9,537,949.03

9,456,562.39

9,375,175.75

9,293,789.11

9,212,402.47

9,131,015.83

9,049,629.18

8,968,242.54

8,886,855.90

112,013,789.15

Total Assets

18,485,481.34

18,665,263.12

18,544,256.10

18,753,436.31

18,651,992.60

18,657,758.52

18,637,363.66

18,764,286.08

18,681,209.39

18,521,479.63

18,814,743.29

18,646,253.39

223,823,523.44

Liabilities & Owners' Equity

Current Liabilities

Long-term debt 18,475,855.50 18,363,847.34 18,251,267.94 18,138,114.38 18,024,383.74 17,910,073.08 17,795,179.43 17,679,699.82 17,563,631.27 17,446,970.77 17,329,715.30 17,211,861.82

214,190,600.38

Less : Loan Principal 112,008.16 112,579.40 113,153.56 113,730.64 114,310.66 114,893.65 115,479.61 116,068.55 116,660.50 117,255.47 117,853.47 118,454.53

1,382,448.20

Total Liabilities

18,363,847.34

18,251,267.94

18,138,114.38

18,024,383.74

17,910,073.08

17,795,179.43

17,679,699.82

17,563,631.27

17,446,970.77

17,329,715.30

17,211,861.82

17,093,407.30

212,808,152.18

Owners' Equity

Retain Earnings 121,634.00 413,995.18 406,141.72 729,052.57 741,919.52 862,579.09 957,663.83 1,200,654.81 1,234,238.63 1,191,764.33 1,602,881.47 1,552,846.09

11,015,371.26

123

Total Owners' Equity 121,634.00 413,995.18 406,141.72 729,052.57 741,919.52 862,579.09 957,663.83 1,200,654.81 1,234,238.63 1,191,764.33 1,602,881.47 1,552,846.09

11,015,371.26

Total Liabilities & Owners'

Equity

18,485,481.34

18,665,263.12

18,544,256.10

18,753,436.31

18,651,992.60

18,657,758.52

18,637,363.66

18,764,286.08

18,681,209.39

18,521,479.63

18,814,743.29

18,646,253.39

223,823,523.44

Year 4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Asset

Current Assets

Cash 6,222,808.68 6,593,855.86 6,798,341.24 7,251,768.51 7,422,109.59 7,861,267.45 8,136,339.26 8,155,903.55 8,656,714.67 8,932,077.86 9,275,907.17 9,574,442.63

94,881,536.46

Farm Supply 3,853,875.00 3,678,375.00 3,483,975.00 3,417,150.00 3,155,925.00 3,047,925.00 2,892,675.00 2,655,075.00 2,568,000.00 2,391,825.00 2,196,750.00 2,109,000.00

35,450,550.00

Total Current Assets

10,076,683.68

10,272,230.86

10,282,316.24

10,668,918.51

10,578,034.59

10,909,192.45

11,029,014.26

10,810,978.55

11,224,714.67

11,323,902.86

11,472,657.17

11,683,442.63

130,332,086.46

Fixed Assets

Land & Building

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

102,240,000.00

Equipments

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

7,925,724.00

Office Supply

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

196,536.00

Vehicles

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

31,152,000.00

Fee

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

287,040.00

Less : Accumulated Depreciation

3,011,305.74

3,092,692.38

3,174,079.03

3,255,465.67

3,336,852.31

3,418,238.95

3,499,625.59

3,581,012.23

3,662,398.88

3,743,785.52

3,825,172.16

3,906,558.80

41,507,187.25

Total Fixed Assets

8,805,469.26

8,724,082.62

8,642,695.98

8,561,309.33

8,479,922.69

8,398,536.05

8,317,149.41

8,235,762.77

8,154,376.13

8,072,989.48

7,991,602.84

7,910,216.20

100,294,112.75

Total Assets

18,882,152.93

18,996,313.47

18,925,012.22

19,230,227.84

19,057,957.28

19,307,728.50

19,346,163.67

19,046,741.31

19,379,090.80

19,396,892.35

19,464,260.02

19,593,658.83

230,626,199.21

Liabilities & Owners' Equity

124

Current Liabilities

Long-term debt 17,093,407.30 17,022,495.08 16,951,021.48 16,878,982.04 16,806,372.30 16,733,187.72 16,659,423.77 16,585,075.85 16,510,139.35 16,434,609.60 16,358,481.90 16,281,751.53

200,314,947.91

Less : Loan Principal 70,912.21 71,473.60 72,039.44 72,609.75 73,184.57 73,763.95 74,347.92 74,936.50 75,529.75 76,127.70 76,730.37 77,337.82

888,993.59

Total Liabilities

17,022,495.08

16,951,021.48

16,878,982.04

16,806,372.30

16,733,187.72

16,659,423.77

16,585,075.85

16,510,139.35

16,434,609.60

16,358,481.90

16,281,751.53

16,204,413.70

199,425,954.32

Owners' Equity

Retain Earnings 1,859,657.85 2,045,292.00 2,046,030.17 2,423,855.55 2,324,769.56 2,648,304.73 2,761,087.81 2,536,601.96 2,944,481.20 3,038,410.45 3,182,508.49 3,389,245.12

31,200,244.89

Total Owners' Equity 1,859,657.85 2,045,292.00 2,046,030.17 2,423,855.55 2,324,769.56 2,648,304.73 2,761,087.81 2,536,601.96 2,944,481.20 3,038,410.45 3,182,508.49 3,389,245.12

31,200,244.89

Total Liabilities & Owners' Equity

18,882,152.93

18,996,313.47

18,925,012.22

19,230,227.84

19,057,957.28

19,307,728.50

19,346,163.67

19,046,741.31

19,379,090.80

19,396,892.35

19,464,260.02

19,593,658.83

230,626,199.21

Year 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Asset

Current Assets

Cash 9,660,740.75 9,981,784.71 10,625,588.49 11,166,291.17 11,614,899.86 11,997,784.73 12,237,546.84 12,802,666.62 13,492,535.92 13,913,662.65 14,294,701.62 14,808,773.48

146,596,976.83

Farm Supply 1,866,750.00 1,698,000.00 1,551,750.00 1,333,500.00 1,140,000.00 993,000.00 801,000.00 655,500.00 508,500.00 316,500.00 121,500.00 0.00

10,986,000.00

Total Current Assets

11,527,490.75

11,679,784.71

12,177,338.49

12,499,791.17

12,754,899.86

12,990,784.73

13,038,546.84

13,458,166.62

14,001,035.92

14,230,162.65

14,416,201.62

14,808,773.48

157,582,976.83

Fixed Assets

Land & Building

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

8,520,000.00

102,240,000.00

Equipments

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

660,477.00

7,925,724.00

Office Supply

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

16,378.00

196,536.00

Vehicles

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

2,596,000.00

31,152,000.00

125

Fee

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

23,920.00

287,040.00

Less : Accumulated Depreciation

3,987,945.44

4,069,332.08

4,150,718.73

4,232,105.37

4,313,492.01

4,394,878.65

4,476,265.29

4,557,651.93

4,639,038.58

4,720,425.22

4,801,811.86

4,883,198.50

53,226,863.65

Total Fixed Assets

7,828,829.56

7,747,442.92

7,666,056.28

7,584,669.63

7,503,282.99

7,421,896.35

7,340,509.71

7,259,123.07

7,177,736.43

7,096,349.78

7,014,963.14

6,933,576.50

88,574,436.35

Total Assets

19,356,320.30

19,427,227.63

19,843,394.76

20,084,460.80

20,258,182.86

20,412,681.08

20,379,056.55

20,717,289.69

21,178,772.34

21,326,512.43

21,431,164.77

21,742,349.98

246,157,413.18

Liabilities & Owners' Equity

Current Liabilities

Long-term debt 16,204,413.70 16,126,463.62 16,047,896.44 15,968,707.26 15,888,891.17 15,808,443.21 15,727,358.36 15,645,631.59 15,563,257.82 15,480,231.92 15,396,548.74 15,312,203.06

189,170,046.91

Less : Loan Principal 77,950.08 78,567.18 79,189.18 79,816.09 80,447.97 81,084.85 81,726.77 82,373.77 83,025.90 83,683.19 84,345.68 85,013.41

977,224.06

Total Liabilities

16,126,463.62

16,047,896.44

15,968,707.26

15,888,891.17

15,808,443.21

15,727,358.36

15,645,631.59

15,563,257.82

15,480,231.92

15,396,548.74

15,312,203.06

15,227,189.65

188,192,822.85

Owners' Equity

Retain Earnings 3,229,856.68 3,379,331.19 3,874,687.50 4,195,569.63 4,449,739.65 4,685,322.72 4,733,424.95 5,154,031.87 5,698,540.42 5,929,963.69 6,118,961.70 6,515,160.33

57,964,590.33

Total Owners' Equity 3,229,856.68 3,379,331.19 3,874,687.50 4,195,569.63 4,449,739.65 4,685,322.72 4,733,424.95 5,154,031.87 5,698,540.42 5,929,963.69 6,118,961.70 6,515,160.33

57,964,590.33

Total Liabilities & Owners' Equity

19,356,320.30

19,427,227.63

19,843,394.76

20,084,460.80

20,258,182.86

20,412,681.08

20,379,056.55

20,717,289.69

21,178,772.34

21,326,512.43

21,431,164.77

21,742,349.98

246,157,413.18

126

5.4 NPV

Net present value equal 3,660,898.67 for 6o months at the discount rate 6.12%

per year.

5.5 IRR

Interest rate return of Daylight Company is equal 10.89%.

5.6 Conclusion

Daylight Company loan money total 21,000,000 baht from The Siam

Commercial Bank. We have to pay back within 12 years. In term of financial statement,

we have sale volume total 6,000,000 baht which did not gain profit. Additionally, we

get profit at year 2 to year 5 respectively because there are continue to increasing of sale

volume.

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Chapter 6 Risk Analysis

6.1 External Risk

6.1.1 Politic

Thai government is extremely support the agriculture of the country because it is

one of main income of Thailand so, in politics it is not too much trouble. Inside of politic,

now is big problem of Thailand, there are conflict between red shirt and yellow shirt. If

this problem happens again, supermarkets in Bangkok will not buying our vegetables at

that time because of many customers afraid of a serious situation and they will stay in

their accommodation. They will not buy organic vegetable in the supermarket and even

our shop in Bangkok. In Ratchaburi province, we can also continue to grow vegetables,

but our products will hold a lot of stock. If the event this happens again. We will solve

problems by send our organic vegetables to hotel, resort, and shop where near our farm

and other areas that does not has a serious situation.

6.1.2 Economic

Economic has an influence to worldwide and is main factor that affect directly

especially the business. Economic is an indicator to predict such as income, GDP,

standard of living, and growth rate of business. If occur economic problem or income

reduce, people will increase more carefully to spend money many businesses will lose of

sale, that may risk to small and new business and may risk to our business. Especially

agriculture:

1.) Volume of agricultural products has exceeded demand always.

2.) Vegetables are limited by the nature. Durability of low or rotten easily.

3.) Government policy that cannot respond to the needs of all groups involved

appropriately and timely.

From all of these reasons, we solve problems by finding markets for organic

vegetables such as send it to resorts in Ratchaburi province, shop in Bangkok and

surrounding that buy organic vegetables in order to avoid lots of organic vegetables

remain in stock and spoilage because organic vegetables can keep in the refrigerator for 2

weeks.

128

6.1.3 Socio-cultural

The world today, people can communicate around the world. Culture of Europe

and America come to Thailand include about food. So, food of Europe will focus on meat

than vegetables. Therefore we will launch campaign for people in the area of Ratchaburi,

Bangkok and surrounding to encourage them to eat more organic vegetables. We will

inform the benefits of organic vegetables as well.

6.2 Internal Risk

6.2.1 Strategic Risk

Our company will hire local people to work with us in order to save labor cost

and distribute income to local community to make them have job and better standard of

living. Each staff has different speed of learning, so some learn quickly but some of

them learn slowly. So, we spend time and cost for staff that learn slowly. In addition,

we evaluate performance every six months. If some staff does not perform their job

well, we may fire them or provide more training. We need to take in getting employees

to add up so, in vegetable farms, it will be delayed because it does not have lots of

labor. We solve this problem by recruit new staff immediately as soon as possible.

Another problem is when we finished training our staff and then they are skillful in

organic vegetables production. Competitors can pull out our staff by offering higher

salaries. So, our company has reward to staff for motivate them to work with us for

long-term. By the way, another problem is our competitors could imitate our products.

So, we try to differentiate from the market by develop modern production methods and

quality to achieve brand royalty. Our products keep in a clean package and also keeping

the freshness as well. We also design the package to save the Global Warming and also

beautiful package.

129

6.2.2 Marketing Risk

Daylight Company has marketing risk in term of customer because customers

can change in product by other factors such as trend, competitor, and etc. customers can

purchase product from competitors or substitute products that it effect to quantities of

sale product and gross profit of company. So, our company used marketing help to

identify and target its best customers and generate qualified leads for the sales team by

use marketing and customer service to make customer loyalty. Our company will

consider need of customers are

1. We try to find and develop our organic vegetables in next future. We will have

other products in our business. So, we will produce organic fruits in order to

many of choice to the customer.

2. We use internet for advertisement and other medium to promote our product

such as Facebook, Twitter, radio and signage.

3. Our product keeps on clean package and also keeping the freshness as well. We

will use technology to design package for modern and customer’s satisfaction in

our products.

4. We also build the shop in Bangkok and we sent our product to the shop,

restaurant and hotel with freshness’s product as well. This strategy can helping

the customer can access to our product easily.

5. Our staff always be on time and take care every customer equally.

6.2.3 Operational Risk

6.2.3.1 Risk of fire

Building is uncovered to a large number of dangers, especially those causing by

fire, lighting or gas explosion. All of these result in damages to properties. We have

building both Bangkok and Ratchaburi province. All of those building are made from

cement and also has circuit within building as well. So, it has possible to be fire

anytime. Moreover, our farm located near the forest that can has fire as a result of the

frictional of tree and spontaneous combustion. We prefer to protect our assets from that

risk. So, we apply fire insurance to protect our building. When it happens to us, we will

130

receive indemnity from insurance. We pay attention to The Deves Insurance public

Company Limited. Because of it is an insurance company that owned by the crown

property bureau which is creditable with financial. We prefer SMEs Care insurance

which is covering both building and accessory’s office that fire, lighting or gas

explosion. They calculate the premium from the area that we have area of building at

Bangkok about 11 square yards. So, we need to pay for premium about 2,600 baht per

year. It is cover about 1,100,000 baht of bail. We also have building at Ratchaburi

province, is about 43.75 square yards. So, we need to pay for premium about 1,854 baht

per year. It is cover about 1,500,000 baht of bail.

(Source: http://www.deves.co.th/products/house/products_sme.asp)

6.2.3.2 Risk of logistic

We buy seed from Dutch Greenery Company that located on Pathum Thani

province and also buy manure form Nakorn Ratchasima province. So, it concern about

transportation cost. By the way, fuel price is continue to increasing because of crude

prices were move higher by political unrest in Egypt and weather of Europe country that

very cold so it has many countries that reserve fuel for protecting the fuel price within

their country.

Last 13 years, Thai can not produce oil that support Thai’s demand so they have

to import instant fuel from other country. This is cause that why Thailand have to refer

the fuel price with Singapore. Because of Singapore is center of fuel trading in ASIA.

Although, Thailand can produce it which is enough to Thai’s demand now. Thai

entrepreneur also apply the imported fuel price of Singapore with fuel price in Thailand

because of fuel can buying and selling according to liberalism. So, the structure of fuel

price has referred to the fuel price of the world.

(Source:http://community.thaiware.com/index.php/topic/263289-eoana-eoeaiazaoauaao-

aoeneoananaeiaee/)

Hence, fuel price in Thai is also continuing to increasing as according to fuel

price of the world. Thai government has a policy that solves this problem. It is

providing fuel fund to help fuel entrepreneurs. It can solve problem in short time but in

the future it is hard to predict the fuel price. So, if the fuel price is add up, it effect to our

business for sure. Because of we have to transfer our product to the shop and delivery to

131

hotel and restaurant that located on Bangkok and surrounding. So, it concern about cost

of transportation. If cost of transport is add up, the price of our veggies will add up

according to transportation cost. So, it effect to the price of our product as well. So, we

find the way to maintain cost of transportation by making contract with supplier in long

term to ensure that they will not add up cost of transport when fuel price are increase.

Moreover, we also apply experiment from The Royal Chitralada Projects that they use

diesohol with machine in order to save fuel. The machine can work well and also save

cost at the same time. So, we apply this experiment with a tractor to reduce cost of fuel.

Additionally, we choose a car that can use with both fuel and gas to save the cost when

fuel price is increase. So, we choose Triton that it can use both fuel and gas.

(Source:http://www.thaigoodview.com/library/contest2551/science04/85/2/energy/html/gasohol.html)

6.2.3.3 Risk of accident from logistic

We always transfer our product to the shop, hotel and restaurant within Bangkok

and surrounding. So, it has possibility to accident. We think life is the most important.

So, we try to find the way out by apply motor insurance to protect any damage that

cover life and asset. We buy motor insurance of AllianzCP because of their insurance is

cover many things which are injured, accident, and medical fee as according to table at

below to maintain our employee and also asset. We have to pay for this insurance about

5,150 baht per year. By the way, we have 3 cars so we have to pay total 15,450 baht per

year.

132

AllianzCP – SMERT (GLOD PLAN)

Responsibility of outsider

Damaging of life, body and sanitation

especially surplus of financial amount

according to Act.

500,000 baht per person

10,000,000 baht per time

Damaging of asset. 1,000,000 baht per time

Loss of car, fire and damage.

Damaging of car. 100,000 baht

Loss of car and fire. -

First of damaging. 2,000 baht

Protecting according to attach of document.

Die, loss of organ and disabled. 100,000 * 3 baht per person

Medical fee. 100,000 * 3 baht per person

Financial amount for bail out of driver. 300,000 baht per time

Figure 6.1: Insurance of AllianzCP.

(Source: http://www.todayinsure.com/index.php?ui=sales&pid=3367)

6.2.4 Compliance Risk

The meaning of compliance risk is mistake from the company the product

method should correct the standard of law; our company produces organic vegetables.

So the method of the production must not involve with chemical. Advertising should

correct with the law is the way to should not saying about the name of other company,

must not say about our product better than the competitors.

(Source: http://aenetwork.spaces.live.com/blog/cns!28384AA32A90031F!498.entry?sa=383364352)

6.2.4.1 Health

Our company has social insurance for our employees because of according to the

law that our companies have more than one staff, so we have to apply social insurance.

133

The social security are insurance benefits to staff in case of injury or illness, disability,

die, maternity, children welfare, old age, and unemployed. By the way, if employee

have less of injure or illness or accident during work, our company have medical box

for first aid.

7 benefits for insured

Department of public welfare have responsibility about take care and protect

employee in the company, and in the company should have employees more than 1

person. When the employees have an injury, disability, and dies but not as work

including confined, welfare of children, old age, and unemployment of social security

act. These benefits will receive the following benefits in each case.

1. Case of injury or illness, not because of work

The employee can admit in the hospital that specify in right certificate. The

insured have not to pay for treatment, but in emergency case, the insured cannot

treatment in the hospital that specify in right certificate, he should treatment in any of

hospital, and the relative of insured should tell the hospital that specify in right

certification immediately. In medical expense, insured can withdrawal medical service

actually paid within 72 hours.

2. Case of disability, not because of work

Benefits of insured are

2.1 Receive medical treatment actually paid that not exceed 2,000 Baht

2.2 Receive compensation for lack of income per month 50 percent of

wage forever.

2.3 Receive cost of rehabilitation process of disability of body, mind, and

occupation in the rule of right certificate actually paid not exceed

40,000 Baht.

3. Case of die, not because of work

Benefits of insured are

3.1 Managing funeral are receive the funeral 40,000 Baht

3.2 Decadences of decades have received subvention as follows

3.2.1 Case of insured contribution more than 3 years, but not

exceed 10 years, decadence or person entitled receive

134

subvention equal with wage average of dead once a

month.

3.2.2 Case of insured contribution more than 10 years,

decadence or person entitled receive subvention equal to

wage average of dead 5 months.

4. Case of maternity

Benefits of insured are

4.1 women insured

4.1.1 Receive maternity benefits 12,000 Baht

4.1.2 Receive subvention of vacation for confined 50 percent of

wage for 90 days

4.2 Insured men who have wife that is not insured

4.2.1 They can use the right 2 times by receive the cost of

confined 12,000 Baht per time, but cannot receive

subvention of vacation for confined.

4.3 Husband and wife are insured

4.3.1 Insured can used the right 2 different times. They should

used wife insurance first because make they receive the

subvention of vacation for confined, however confined

insured not exceed 4 times per family, the children who

used the right issue that cannot be drawn down the

confined again.

5. Case of children welfare

Benefit of insured are

They receive subvention of children 350 Baht per month for per 1 child

for children under the rule that not more than 6 years at a time, and not exceed 2

persons.

6. Case of old age

Benefit of insured are

6.1 Pension of old age

135

- They should received when they save the money completed in

180 month or the ages of insured are 55 years, and finished

insured when the insured receive the money per month forever.

6.2 Retirement pay of old age

- They should received when they save the money uncompleted in

180 months or the age of insured 55 years, and finished the

insured when insured are death, and old. They received a sum of

money at once.

7. Case of unemployed

Benefit of insured are

- Insured should register of unemployed and apply for benefits at

employment of the state within 30 days, since the first day of

unemployment.

- Get a new job, as appropriate

- They will be trained a skilled of work for the new job that they

gets.

(Source: www.sso.go.th/cms/spaw2/uploads/files/123456_1.doc)

6.2.4.2 Safety

Our company has a good safety for everyone in company. For example, we have

guard for take care and observe unusual thing in every area of the company and farm.

We keep the importance information in security box, for reduce risk someone want to

steal the information, and we avoid to keep more money in the safe, but we keep it in

the bank.

6.2.5 Financial Risk

There are three cases in financial risk such as sales decrease, interest increase

and expense increase.

136

6.2.5.1 Sales decrease

We assume that sales volume will be decreased from actual sales 2.5%, 5.0%

and 7.5% as following.

Sales decrease 2.5%

Income Statement Year 1 Year 2 Year 3 Year 4 Year 5

Sales 5,878,758.60 7,086,645.15 8,590,998.00 9,315,676.50 10,952,857.50

Cost of goods sold 1,343,790.69 1,537,001.92 1,756,342.83 1,844,388.19 2,121,874.34

Gross income 4,534,967.91 5,549,643.23 6,834,655.17 7,471,288.31 8,830,983.16

Operating expense 3,948,954.78 3,899,954.78 3,904,554.78 3,906,754.78 3,908,554.78

Operating income 586,013.13 1,649,688.45 2,930,100.39 3,564,533.53 4,922,428.38

Interest expense 1,251,257.32 1,174,238.70 1,092,372.06 1,585,826.67 1,497,596.20

EBIT -665,244.19 475,449.75 1,837,728.33 1,978,706.86 3,424,832.18

Income tax 132,480.18 155,887.21 296,853.67 351,711.79 539,811.24

Net income -797,724.37 319,562.54 1,540,874.66 1,626,995.07 2,885,020.93

Cash Flow Statement Year 1 Year 2 Year 3 Year 4 Year 5

Cash Provided From Operating Activities

Total Cash Inflow 5,878,758.60 7,086,645.15 8,590,998.00 9,315,676.50 10,952,857.50

Total Cash Outflow 4,361,093.27 4,264,267.91 4,328,683.64 4,879,416.73 4,982,196.87

Net Cash From Operating Activities 1,517,665.33 2,822,377.24 4,262,314.36 4,436,259.77 5,970,660.63

Cash Provided From Investing Activities

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00

Total Cash Outflow 20,368,125.00 0.00 0.00 0.00 0.00

Net Cash From Investing Activities - 20,368,125.00 0.00 0.00 0.00 0.00

Cash Provided From Financing Activities

Total Cash Inflow 21,000,000.00 0.00 0.00 0.00 0.00

Total Cash Outflow 1,223,562.94 1,300,581.56 1,382,448.20 888,993.59 977,224.06

Net Cash From Financing Activities 19,776,437.06 - 1,300,581.56 - 1,382,448.20 - 888,993.59 - 977,224.06

Net Cash Increase or Decrease 925,977.39 1,521,795.68 2,879,866.16 3,547,266.18 4,993,436.57

Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5

Assets

Current Assets

Cash 5,608,591.29 21,261,122.54 49,581,197.71 87,608,820.52 136,676,382.47

Farm supply 93,577,500.00 - 57,377,700.00 35,450,550.00 10,986,000.00

Total Current Assets 99,186,091.29 97,978,022.54 106,958,897.71 123,059,370.52 147,662,382.47

Total Fixed Assets 135,453,141.95 123,733,465.55 112,013,789.15 100,294,112.75 88,574,436.35

Total Assets 234,639,233.24 221,711,488.09 218,972,686.86 223,353,483.27 236,236,818.82

Liability & Equity

Total Liability 244,121,009.28 228,942,301.57 212,808,152.18 199,425,954.32 188,192,822.85

Owner's Equity

Total Owner's Equity - 9,481,776.04 - 7,230,813.48 6,164,534.68 23,927,528.95 48,043,995.97

Total Liability & Equity 234,639,233.24 221,711,488.09 218,972,686.86 223,353,483.27 236,236,818.82

137

Sales decrease 5.0%

Income Statement Year 1 Year 2 Year 3 Year 4 Year 5

Sales 5,728,021.20 6,904,936.30 8,370,716.00 9,076,813.00 10,672,015.00

Cost of goods sold 1,343,790.69 1,537,001.92 1,756,342.83 1,844,388.19 2,121,874.34

Gross income 4,534,967.91 5,367,934.38 6,614,373.17 7,232,424.81 8,550,140.66

Operating expense 4,384,230.51 3,899,954.78 3,904,554.78 3,906,754.78 3,908,554.78

Operating income 3,948,954.78 1,467,979.60 2,709,818.39 3,325,670.03 4,641,585.88

Interest expense 1,251,257.32 1,174,238.70 1,092,372.06 1,585,826.67 1,497,596.20

EBIT -815,981.59 293,740.90 1,617,446.33 1,739,843.36 3,143,989.68

Income tax 118,602.73 135,448.62 272,201.98 322,382.51 499,863.02

Net income -10,296,207.46 158,292.28 1,345,244.35 1,417,460.85 2,644,126.66

Cash Flow Statement Year 1 Year 2 Year 3 Year 4 Year 5

Cash Provided From Operating Activities

Total Cash Inflow 5,728,021.20 6,904,936.30 8,370,716.00 9,076,813.00 10,672,015.00

Total Cash Outflow 4,347,215.82 4,243,829.32 4,304,031.95 4,850,087.45 4,942,248.64

Net Cash From Operating Activities 1,380,805.38 2,661,106.98 4,066,684.05 4,226,725.55 5,729,766.36

Cash Provided From Investing Activities

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00

Total Cash Outflow 20,368,125.00 0.00 0.00 0.00 0.00

Net Cash From Investing Activities - 20,368,125.00 0.00 0.00 0.00 0.00

Cash Provided From Financing Activities

Total Cash Inflow 21,000,000.00 0.00 0.00 0.00 0.00

Total Cash Outflow 1,223,562.94 1,300,581.56 1,382,448.20 888,993.59 977,224.06

Net Cash From Financing Activities 19,776,437.06 - 1,300,581.56 - 1,382,448.20 - 888,993.59 - 977,224.06

Net Cash Increase or Decrease 789,117.44 1,360,525.42 2,684,235.85 3,337,731.95 4,752,542.30

Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5

Assets

Current Assets

Cash 4,794,159.87 18,557,227.58 44,695,836.69 80,291,274.84 126,710,697.83

Farm supply 93,577,500.00 76,716,900.00 57,377,700.00 35,450,550.00 10,986,000.00

Total Current Assets 98,371,659.87 95,274,127.58 102,073,536.69 115,741,824.84 137,696,697.83

Total Fixed Assets 135,453,141.95 123,733,465.55 112,013,789.15 100,294,112.75 88,574,436.35

Total Assets 233,824,801.82 219,007,593.13 214,087,325.84 216,035,937.59 226,271,134.18

Liability & Equity

Total Liability 244,121,009.28 228,942,301.57 212,808,152.18 199,425,954.32 188,192,822.85

Owner's Equity

Total Owner's Equity - 10,296,207.46 - 9,934,708.44 1,279,173.66 16,609,983.26 38,078,311.33

Total Liability & Equity 233,824,801.82 219,007,593.13 214,087,325.84 216,035,937.59 226,271,134.18

138

Sales decrease 7.5%

Income Statement Year 1 Year 2 Year 3 Year 4 Year 5

Sales 5,577,283.80 6,723,227.45 8,150,434.00 8,837,949.50 10,391,172.50

Cost of goods sold 1,343,790.69 1,537,001.92 1,756,342.83 1,844,388.19 2,121,874.34

Gross income 4,233,493.11 5,186,225.53 6,394,091.17 6,993,561.31 8,269,298.16

Operating expense 3,948,954.78 3,899,954.78 3,904,554.78 3,906,754.78 3,908,554.78

Operating income 284,538.33 1,286,270.75 2,489,536.39 3,086,806.53 4,360,743.38

Interest expense 1,251,257.32 1,174,238.70 1,092,372.06 1,585,826.67 1,497,596.20

EBIT -966,718.99 112,032.05 1,397,164.33 1,500,979.86 2,863,147.18

Income tax 105,450.63 115,577.58 248,695.12 293,053.24 459,914.79

Net income -1,072,169.62 -3,545.54 1,148,469.20 1,207,926.62 2,403,232.38

Cash Flow Statement Year 1 Year 2 Year 3 Year 4 Year 5

Cash Provided From Operating Activities

Total Cash Inflow 5,577,283.80 6,723,227.45 8,150,434.00 8,837,949.50 10,391,172.50

Total Cash Outflow 4,334,063.72 4,223,958.29 4,280,525.10 4,820,758.18 4,902,300.42

Net Cash From Operating Activities 1,243,220.08 2,499,269.16 3,869,908.90 4,017,191.32 5,488,872.08

Cash Provided From Investing Activities

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00

Total Cash Outflow 20,368,125.00 0.00 0.00 0.00 0.00

Net Cash From Investing Activities - 20,368,125.00 0.00 0.00 0.00 0.00

Cash Provided From Financing Activities

Total Cash Inflow 21,000,000.00 0.00 0.00 0.00 0.00

Total Cash Outflow 1,223,562.94 1,300,581.56 1,382,448.20 888,993.59 977,224.06

Net Cash From Financing Activities 19,776,437.06 - 1,300,581.56 - 1,382,448.20 - 888,993.59 - 977,224.06

Net Cash Increase or Decrease 651,532.14 1,198,687.61 2,487,460.70 3,128,197.73 4,511,648.02

Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5

Assets

Current Assets

Cash 3,971,749.55 15,839,520.44 39,790,341.56 72,944,476.32 116,715,760.37

Farm supply 93,577,500.00 76,716,900.00 57,377,700.00 35,450,550.00 10,986,000.00

Total Current Assets 97,549,249.55 92,556,420.44 97,168,041.56 108,395,026.32 127,701,760.37

Total Fixed Assets 135,453,141.95 123,733,465.55 112,013,789.15 100,294,112.75 88,574,436.35

Total Assets 233,002,391.50 216,289,885.99 209,181,830.71 208,689,139.07 216,276,196.72

Liability & Equity

Total Liability 244,121,009.28 228,942,301.57 212,808,152.18 199,425,954.32 188,192,822.85

Owner's Equity

Total Owner's Equity - 11,118,617.78 - 12,652,415.58 - 3,626,321.48 9,263,184.75 28,083,373.86

Total Liability & Equity 233,002,391.50 216,289,885.99 209,181,830.71 208,689,139.07 216,276,196.72

139

6.2.5.2 Interest increase

We assume that interest rate will be increased become to 6.17%, 6.22%, and

6.27%, but the actual rate is 6.12%

Interest 6.17%

Income Statement Year 1 Year 2 Year 3 Year 4 Year 5

Sales 6,029,496.00 7,268,354.00 8,811,280.00 9,554,540.00 11,233,700.00

Cost of goods sold 1,343,790.69 1,537,001.92 1,756,342.83 1,844,388.19 2,121,874.34

Gross income 4,685,705.31 5,731,352.08 7,054,937.17 7,710,151.81 9,111,825.66

Operating expense 3,948,954.78 3,899,954.78 3,904,554.78 3,906,754.78 3,908,554.78

Operating income 736,750.53 1,831,397.30 3,150,382.39 3,803,397.03 5,203,270.88

Interest expense 1,261,588.89 1,184,163.22 1,101,822.96 1,014,256.14 921,131.01

EBIT -524,838.36 647,234.08 2,048,559.43 2,789,140.89 4,282,139.87

Income tax 146,960.18 175,333.31 322,689.82 452,615.63 659,046.04

Net income -671,798.55 471,900.77 1,725,869.62 2,336,525.26 3,623,093.83

Cash Flow Statement Year 1 Year 2 Year 3 Year 4 Year 5

Cash Provided From Operating Activities

Total Cash Inflow 6,029,496.00 7,268,354.00 8,811,280.00 9,554,540.00 11,233,700.00

Total Cash Outflow 4,385,904.85 4,293,638.53 4,363,970.68 4,408,750.04 4,524,966.47

Net Cash From Operating Activities 1,643,591.15 2,974,715.47 4,447,309.32 5,145,789.96 6,708,733.53

Cash Provided From Investing Activities

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00

Total Cash Outflow 20,368,125.00 0.00 0.00 0.00 0.00

Net Cash From Investing Activities - 20,368,125.00 0.00 0.00 0.00 0.00

Cash Provided From Financing Activities

Total Cash Inflow 21,000,000.00 0.00 0.00 0.00 0.00

Total Cash Outflow 1,219,780.56 1,297,206.22 1,379,546.49 1,467,113.31 1,560,238.44

Net Cash From Financing Activities 19,780,219.44 - 1,297,206.22 - 1,379,546.49 - 1,467,113.31 - 1,560,238.44

Net Cash Increase or Decrease 1,055,685.60 1,677,509.25 3,067,762.83 3,678,676.65 5,148,495.09

Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5

Assets

Current Assets

Cash 6,370,117.95 23,843,115.64 54,261,109.08 94,173,691.67 144,941,382.21

Farm supply 93,577,500.00 76,716,900.00 57,377,700.00 35,450,550.00 10,986,000.00

Total Current Assets 99,947,617.95 100,560,015.64 111,638,809.08 129,624,241.67 155,927,382.21

Total Fixed Assets 135,453,141.95 123,733,465.55 112,013,789.15 100,294,112.75 88,574,436.35

Total Assets 235,400,759.90 224,293,481.19 223,652,598.23 229,918,354.42 244,501,818.56

Liability & Equity

Total Liability 244,145,967.97 229,010,065.99 212,913,411.45 195,795,020.52 177,590,038.38

Owner's Equity

Total Owner's Equity - 8,745,208.07 - 4,716,584.81 10,739,186.78 34,123,333.90 66,911,780.17

Total Liability & Equity 235,400,759.90 224,293,481.19 223,652,598.23 229,918,354.42 244,501,818.56

140

Interest 6.22%

Income Statement Year 1 Year 2 Year 3 Year 4 Year 5

Sales 6,029,496.00 7,268,354.00 8,811,280.00 9,554,540.00 11,233,700.00

Cost of goods sold 1,343,790.69 1,537,001.92 1,756,342.83 1,844,388.19 2,121,874.34

Gross income 4,685,705.31 5,731,352.08 7,054,937.17 7,710,151.81 9,111,825.66

Operating expense 3,948,954.78 3,899,954.78 3,904,554.78 3,906,754.78 3,908,554.78

Operating income 736,750.53 1,831,397.30 3,150,382.39 3,803,397.03 5,203,270.88

Interest expense 1,271,921.97 1,194,092.43 1,111,281.46 1,023,170.25 929,419.55

EBIT -535,171.44 637,304.87 2,039,100.93 2,780,226.78 4,273,851.33

Income tax 146,186.02 174,340.35 321,622.77 451,501.43 657,910.13

Net income -681,357.46 462,964.53 1,717,478.15 2,328,725.35 3,615,941.20

Cash Flow Statement Year 1 Year 2 Year 3 Year 4 Year 5

Cash Provided From Operating Activities

Total Cash Inflow 6,029,496.00 7,268,354.00 8,811,280.00 9,554,540.00 11,233,700.00

Total Cash Outflow 4,395,463.76 4,302,574.77 4,372,362.15 4,416,549.95 4,532,119.10

Net Cash From Operating Activities 1,634,032.24 2,965,779.23 4,438,917.85 5,137,990.05 6,701,580.90

Cash Provided From Investing Activities

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00

Total Cash Outflow 20,368,125.00 0.00 0.00 0.00 0.00

Net Cash From Investing Activities - 20,368,125.00 0.00 0.00 0.00 0.00

Cash Provided From Financing Activities

Total Cash Inflow 21,000,000.00 0.00 0.00 0.00 0.00

Total Cash Outflow 1,216,006.53 1,293,836.07 1,376,647.04 1,464,758.25 1,558,508.96

Net Cash From Financing Activities 19,783,993.47 - 1,293,836.07 - 1,376,647.04 - 1,464,758.25 - 1,558,508.96

Net Cash Increase or Decrease 1,049,900.71 1,671,943.15 3,062,270.82 3,673,231.79 5,143,071.95

Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5

Assets

Current Assets

Cash 6,332,292.05 23,737,554.57 54,089,895.66 93,936,268.32 144,638,186.63

Farm supply 93,577,500.00 76,716,900.00 57,377,700.00 35,450,550.00 10,986,000.00

Total Current Assets 99,909,792.05 100,454,454.57 111,467,595.66 129,386,818.32 155,624,186.63

Total Fixed Assets 135,453,141.95 123,733,465.55 112,013,789.15 100,294,112.75 88,574,436.35

Total Assets 235,362,934.00 224,187,920.12 223,481,384.81 229,680,931.07 244,198,622.98

Liability & Equity

Total Liability 244,170,869.09 229,077,693.34 213,018,490.72 195,931,431.43 177,750,728.31

Owner's Equity

Total Owner's Equity - 8,807,935.09 - 4,889,773.23 10,462,894.09 33,749,499.64 66,447,894.67

Total Liability & Equity 235,362,934.00 224,187,920.12 223,481,384.81 229,680,931.07 244,198,622.98

141

Interest 6.27%

Income Statement Year 1 Year 2 Year 3 Year 4 Year 5

Sales 6,029,496.00 7,268,354.00 8,811,280.00 9,554,540.00 11,233,700.00

Cost of goods sold 1,343,790.69 1,537,001.92 1,756,342.83 1,844,388.19 2,121,874.34

Gross income 4,685,705.31 5,731,352.08 7,054,937.17 7,710,151.81 9,111,825.66

Operating expense 3,948,954.78 3,899,954.78 3,904,554.78 3,906,754.78 3,908,554.78

Operating income 736,750.53 1,831,397.30 3,150,382.39 3,803,397.03 5,203,270.88

Interest expense 1,271,921.97 1,194,092.43 1,111,281.46 1,023,170.25 929,419.55

EBIT -535,171.44 637,304.87 2,039,100.93 2,780,226.78 4,273,851.33

Income tax 146,186.02 174,340.35 321,622.77 451,501.43 657,910.13

Net income -681,357.46 462,964.53 1,717,478.15 2,328,725.35 3,615,941.20

Cash Flow Statement Year 1 Year 2 Year 3 Year 4 Year 5

Cash Provided From Operating Activities

Total Cash Inflow 6,029,496.00 7,268,354.00 8,811,280.00 9,554,540.00 11,233,700.00

Total Cash Outflow 4,395,463.76 4,302,574.77 4,372,362.15 4,416,549.95 4,532,119.10

Net Cash From Operating Activities 1,634,032.24 2,965,779.23 4,438,917.85 5,137,990.05 6,701,580.90

Cash Provided From Investing Activities

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00

Total Cash Outflow 20,368,125.00 0.00 0.00 0.00 0.00

Net Cash From Investing Activities - 20,368,125.00 0.00 0.00 0.00 0.00

Cash Provided From Financing Activities

Total Cash Inflow 21,000,000.00 0.00 0.00 0.00 0.00

Total Cash Outflow 1,216,006.53 1,293,836.07 1,376,647.04 1,464,758.25 1,558,508.96

Net Cash From Financing Activities 19,783,993.47 - 1,293,836.07 - 1,376,647.04 - 1,464,758.25 - 1,558,508.96

Net Cash Increase or Decrease 1,049,900.71 1,671,943.15 3,062,270.82 3,673,231.79 5,143,071.95

Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5

Assets

Current Assets

Cash 6,332,292.05 23,737,554.57 54,089,895.66 93,936,268.32 144,638,186.63

Farm supply 93,577,500.00 76,716,900.00 57,377,700.00 35,450,550.00 10,986,000.00

Total Current Assets 99,909,792.05 100,454,454.57 111,467,595.66 129,386,818.32 155,624,186.63

Total Fixed Assets 135,453,141.95 123,733,465.55 112,013,789.15 100,294,112.75 88,574,436.35

Total Assets 235,362,934.00 224,187,920.12 223,481,384.81 229,680,931.07 244,198,622.98

Liability & Equity

Total Liability 244,170,869.09 229,077,693.34 213,018,490.72 195,931,431.43 177,750,728.31

Owner's Equity

Total Owner's Equity - 8,807,935.09 - 4,889,773.23 10,462,894.09 33,749,499.64 66,447,894.67

Total Liability & Equity 235,362,934.00 224,187,920.12 223,481,384.81 229,680,931.07 244,198,622.98

142

6.2.5.3 Expense increase

We assume that expense will be increase 2.5%, 5% and 7.5%

Expense increase 2.5%

Income Statement Year 1 Year 2 Year 3 Year 4 Year 5

Sales 6,029,496.00 7,268,354.00 8,811,280.00 9,554,540.00 11,233,700.00

Cost of goods sold 1,343,790.69 1,537,001.92 1,756,342.83 1,844,388.19 2,121,874.34

Gross income 4,685,705.31 5,731,352.08 7,054,937.17 7,710,151.81 9,111,825.66

Operating expense 4,023,262.66 3,973,037.66 3,977,752.66 3,980,007.66 3,981,852.66

Operating income 662,442.65 1,758,314.42 3,077,184.51 3,730,144.15 5,129,973.00

Interest expense 1,251,257.32 1,174,238.70 1,092,372.06 1,585,826.67 1,497,596.20

EBIT -588,814.67 584,075.72 1,984,812.45 2,144,317.48 3,632,376.80

Income tax 142,379.94 169,134.30 315,470.57 372,736.63 569,840.29

Net income -731,194.61 414,941.42 1,669,341.88 1,771,580.85 3,062,536.51

Cash Flow Statement Year 1 Year 2 Year 3 Year 4 Year 5

Cash Provided From Operating Activities

Total Cash Inflow 6,029,496.00 7,268,354.00 8,811,280.00 9,554,540.00 11,233,700.00

Total Cash Outflow 4,445,300.91 4,350,597.88 4,420,498.42 4,973,694.45 5,085,523.79

Net Cash From Operating Activities 1,584,195.09 2,917,756.12 4,390,781.58 4,580,845.55 6,148,176.21

Cash Provided From Investing Activities

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00

Total Cash Outflow - 0.00 0.00 0.00 0.00

Net Cash From Investing Activities - 20,368,125.00 0.00 0.00 0.00 0.00

Cash Provided From Financing Activities

Total Cash Inflow 21,000,000.00 0.00 0.00 0.00 0.00

Total Cash Outflow 1,223,562.94 1,300,581.56 1,382,448.20 888,993.59 977,224.06

Net Cash From Financing Activities 19,776,437.06 - 1,300,581.56 - 1,382,448.20 - 888,993.59 - 977,224.06

Net Cash Increase or Decrease 992,507.15 1,617,174.56 3,008,333.38 3,691,851.96 5,170,952.15

Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5

Assets

Current Assets

Cash 5,944,686.64 22,686,352.04 52,391,420.91 92,054,901.06 142,998,606.63

Farm supply 93,577,500.00 - 57,377,700.00 35,450,550.00 10,986,000.00

Total Current Assets 99,522,186.64 99,403,252.04 109,769,120.91 127,505,451.06 153,984,606.63

Total Fixed Assets 135,453,141.95 123,733,465.55 112,013,789.15 100,294,112.75 88,574,436.35

Total Assets 234,975,328.59 223,136,717.59 221,782,910.06 227,799,563.81 242,559,042.98

Liability & Equity

Total Liability 244,121,009.28 228,942,301.57 212,808,152.18 199,425,954.32 188,192,822.85

Owner's Equity

Total Owner's Equity - 9,145,680.69 - 5,805,583.98 8,974,757.88 28,373,609.49 54,366,220.13

Total Liability & Equity 234,975,328.59 223,136,717.59 221,782,910.06 227,799,563.81 242,559,042.98

143

Expense increase 5%

Income Statement Year 1 Year 2 Year 3 Year 4 Year 5

Sales 6,029,496.00 7,268,354.00 8,811,280.00 9,554,540.00 11,233,700.00

Cost of goods sold 1,343,790.69 1,537,001.92 1,756,342.83 1,844,388.19 2,121,874.34

Gross income 4,685,705.31 5,731,352.08 7,054,937.17 7,710,151.81 9,111,825.66

Operating expense 4,097,570.53 4,046,120.53 4,050,950.53 4,053,260.53 4,055,150.53

Operating income 588,134.78 1,685,231.55 3,003,986.64 3,656,891.28 5,056,675.13

Interest expense 1,251,257.32 1,174,238.70 1,092,372.06 1,585,826.67 1,497,596.20

EBIT -663,122.54 510,992.84 1,911,614.57 2,071,064.61 3,559,078.92

Income tax 137,025.65 161,942.80 307,185.12 364,432.20 559,921.11

Net income -800,148.19 349,050.04 1,604,429.46 1,706,632.40 2,999,157.81

Cash Flow Statement Year 1 Year 2 Year 3 Year 4 Year 5

Cash Provided From Operating Activities

Total Cash Inflow 6,029,496.00 7,268,354.00 8,811,280.00 9,554,540.00 11,233,700.00

Total Cash Outflow 4,514,254.49 4,416,489.26 4,485,410.84 5,038,642.90 5,148,902.49

Net Cash From Operating Activities 1,515,241.51 2,851,864.74 4,325,869.16 4,515,897.10 6,084,797.51

Cash Provided From Investing Activities

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00

Total Cash Outflow 20,368,125.00 0.00 0.00 0.00 0.00

Net Cash From Investing Activities - 20,368,125.00 0.00 0.00 0.00 0.00

Cash Provided From Financing Activities

Total Cash Inflow 21,000,000.00 0.00 0.00 0.00 0.00

Total Cash Outflow 1,223,562.94 1,300,581.56 1,382,448.20 888,993.59 977,224.06

Net Cash From Financing Activities 19,776,437.06 - 1,300,581.56 - 1,382,448.20 - 888,993.59 - 977,224.06

Net Cash Increase or Decrease 923,553.56 1,551,283.19 2,943,420.96 3,626,903.51 5,107,573.45

Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5

Assets

Current Assets

Cash 5,481,493.12 21,424,205.74 50,350,807.53 89,226,963.00 139,398,673.23

Farm supply 93,577,500.00 - 57,377,700.00 35,450,550.00 10,986,000.00

Total Current Assets 99,058,993.12 98,141,105.74 107,728,507.53 124,677,513.00 150,384,673.23

Total Fixed Assets 135,453,141.95 123,733,465.55 112,013,789.15 100,294,112.75 88,574,436.35

Total Assets 234,512,135.07 221,874,571.29 219,742,296.68 224,971,625.75 238,959,109.58

Liability & Equity

Total Liability 244,121,009.28 228,942,301.57 212,808,152.18 199,425,954.32 188,192,822.85

Owner's Equity

Total Owner's Equity - 9,608,874.21 - 7,067,730.29 6,934,144.50 25,545,671.43 50,766,286.73

Total Liability & Equity 234,512,135.07 221,874,571.29 219,742,296.68 224,971,625.75 238,959,109.58

144

Expense increase 7.5%

Income Statement Year 1 Year 2 Year 3 Year 4 Year 5

Sales 6,029,496.00 7,268,354.00 8,811,280.00 9,554,540.00 11,233,700.00

Cost of goods sold 1,343,790.69 1,537,001.92 1,756,342.83 1,844,388.19 2,121,874.34

Gross income 4,685,705.31 5,731,352.08 7,054,937.17 7,710,151.81 9,111,825.66

Operating expense 4,023,262.66 3,973,037.66 3,977,752.66 3,980,007.66 3,981,852.66

Operating income 662,442.65 1,758,314.42 3,077,184.51 3,730,144.15 5,129,973.00

Interest expense 1,251,257.32 1,174,238.70 1,092,372.06 1,585,826.67 1,497,596.20

EBIT -588,814.67 584,075.72 1,984,812.45 2,144,317.48 3,632,376.80

Income tax 142,379.94 169,134.30 315,470.57 372,736.63 569,840.29

Net income -731,194.61 414,941.42 1,669,341.88 1,771,580.85 3,062,536.51

Cash Flow Statement Year 1 Year 2 Year 3 Year 4 Year 5

Cash Provided From Operating Activities

Total Cash Inflow 6,029,496.00 7,268,354.00 8,811,280.00 9,554,540.00 11,233,700.00

Total Cash Outflow 4,445,300.91 4,350,597.88 4,420,498.42 4,973,694.45 5,085,523.79

Net Cash From Operating Activities 1,584,195.09 2,917,756.12 4,390,781.58 4,580,845.55 6,148,176.21

Cash Provided From Investing Activities

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00

Total Cash Outflow - 0.00 0.00 0.00 0.00

Net Cash From Investing Activities - 20,368,125.00 0.00 0.00 0.00 0.00

Cash Provided From Financing Activities

Total Cash Inflow 21,000,000.00 0.00 0.00 0.00 0.00

Total Cash Outflow 1,223,562.94 1,300,581.56 1,382,448.20 888,993.59 977,224.06

Net Cash From Financing Activities 19,776,437.06 - 1,300,581.56 - 1,382,448.20 - 888,993.59 - 977,224.06

Net Cash Increase or Decrease 992,507.15 1,617,174.56 3,008,333.38 3,691,851.96 5,170,952.15

Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5

Assets

Current Assets

Cash 5,944,686.64 22,686,352.04 52,391,420.91 92,054,901.06 142,998,606.63

Farm supply 93,577,500.00 - 57,377,700.00 35,450,550.00 10,986,000.00

Total Current Assets 99,522,186.64 99,403,252.04 109,769,120.91 127,505,451.06 153,984,606.63

Total Fixed Assets 135,453,141.95 123,733,465.55 112,013,789.15 100,294,112.75 88,574,436.35

Total Assets 234,975,328.59 223,136,717.59 221,782,910.06 227,799,563.81 242,559,042.98

Liability & Equity

Total Liability 244,121,009.28 228,942,301.57 212,808,152.18 199,425,954.32 188,192,822.85

Owner's Equity

Total Owner's Equity - 9,145,680.69 - 5,805,583.98 8,974,757.88 28,373,609.49 54,366,220.13

Total Liability & Equity 234,975,328.59 223,136,717.59 221,782,910.06 227,799,563.81 242,559,042.98

145

6.3 Conclusion

Nowadays people have to take care their health more than the past, sometimes it

make easy to selling our product.

At the same time we have many external risks for example in the case of

politics, we have risk from red shirt and yellow shirt, and it makes people less out of the

house and less of purchase too. In the case of economic the customer less of purchase

too because of high standard of living, it make customer want to save the money for

purchase others for purchasing something importance than our products. In the case of

socio-cultural, some cultural value people consumer meat more than vegetable, it makes

less to purchase too.

Our company also has internal risk for example in the case of strategic risk; our

company pays a lot of money for training our employee for make efficiency of the

employee. In the case of operation risk, we have insurance of fire, insurance of logistic

and insurance risk of accidence for logistics, every insurance make for less of

expenditure because of when we have some accidence, we will have a trader insurance

pay for that accidence.

For the compliance risk, our company must to take care about health of our

employees for example we have social insurance for our employees, it has seven

benefits for support our employees such as case of die, case of disability, case of injury

or illness, etc and we have safety for protected our asset and protected our employees.

146

Chapter 7 Summary

Daylight Company located at Tha Khoei, Suan Phung, Ratchaburi

province. The farm occupies 32 Rai. There are 30 Rai for plantation and the

rest are the buildings. Our company produces organic vegetables such as

Butter Head, Green Cos, Red Cos, Red Leaf, Iceberg and Green Ock. Our

target customers are health lover people age 25-30 years old who live in

Bangkok, supermarkets in Nakorn Pathom and Bangkok and the last target

market is resorts around our farm. We also have the shop in Bangkok for

distribute our product as well. Daylight company borrow money from Siam

Commercial Bank 21,000,000 Baht with interest rate 6.12%. At the first

year we did not gain the profit but the year after and following gain the

profit respectively. There are 2 main risks such as external and internal

risk. We also provide the way to eliminate those risks.

147

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milling-faqs.html#organic

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Daylight’s group members (Group 30, Section 2)

1. Patchaneeya Lertlai ID 5131205041

Tel: 089-539-3501 E-mail: pat_3366@hotmail.com

2. Anusara Saeun ID 5131205076

Tel: 083-579-9388 E-mail: kaew_traman@hotmail.com

3. Noor Chaywechit ID 5131205136

Tel: 085-698-6332 E-mail: noodi_z@hotmail.com

4. Satit Suriyakantrong ID 5131205188

Tel: 080-594-5928 E-mail: hawaiian.baby@hotmail.com

5. Supreeda Napajaeng ID 5131205196

Tel: 084-698-6332 E-mail: wanhorizon@hotmail.com

159