Value Chain Comparison of Parchment Coffee Production Process: A Case Study of Doi Chang Village Community Enterprise

Abstract

The objective of this research was to compare the value and return on investment of the wet and dry processes in the production of parchment coffee by studying the operating costs, investment assets, and production capacity. Data was collected data from operations and interviews with farmers and the community enterprise who produce parchment coffee in Doi Chang Village, Mae Suai, Chaing Rai province. The value chain analysis of the production found that the wet process and dry process produce parchment coffee with values of 47 and 67 baht per kilogram respectively. The wet process investment of 5.26 million baht resulted in a production capacity of 14,400 kilograms of parchment coffee per season, whilst the dry process investment of 1.60 million baht resulted in a production capacity of 3,600 kilograms
of parchment coffee per season. The return on investment by defining a project life
of 10 years found the wet production process has an internal rate of return of 16.4% with a payback period of 6 years and 1 month, while the dry production process has an internal rate of 17.7% with a payback period of 5 years and 10 months. The wet process has lower investment and slower payback period, but suitable for production with large quantity of raw materials, whilst the dry process is suitable for production with less raw material quantity and limitation of investment budget.