Cost and return analysis of organic and conventional rice production in Chachoengsao Province, Thailand

Abstract

The objective of this study was to investigate the cost and return structures of rice cultivation in two farming systems, organic and conventional rice production, in Chachoengsao Province, Thailand, in the 2016/2017 crop year. The sample included 108 farmers selected using a purposive sampling method, consisting of 58 organic rice growers and 50 conventional rice growers. Survey questionnaires were used as the main instrument for data collection. Descriptive statistics and cost and return analysis were used for data analysis. The results indicate that the cost of production was higher, and output was lower under organic rice farming. Despite this, organic rice farming was more profitable than conventional farming, which was attributed to the higher prevailing market price for organic rice. This indicates the importance of price differences across market segments within the distribution channel and the profitability of rice production between the two rice farming systems.