Agarwood Oil Production in Chanthaburi Province

Abstract

The objectives of this study were to analyze the operation of commercial agarwood oil refining business and financial returns analysis of agarwood oil production in Chanthaburi. Indepth interviews were used a refined 7 cases during the time of research between August 2013 and February 2014. Those were analyzed using descriptive and simple statistics in order to assess the financial returns of production for one refined and getting net earns per year.

Results of the study indicated that business strategies in Chanthaburi agarwood refinery in general were similar. All of them were available to buy to stimulate aloes compound and were introduced into the process of refining the oil was 100%. Some owners bought the motivated agarwood to distill for sale 28.57%. Some owners bought the distilled agarwood oil for sale 28.57%. The fuel refining used cooking gas (LPG), it was due to convenient temperature control and  operation. The average income of oil refining per entrepreneur per cycle in each round was 72,695.36 Baht, the average cost of oil refining per entrepreneur per cycle in each round was 38,371.71 Baht and the average net profit of oil refining per entrepreneur per cycle in each round was 12,283.51 Baht. The lowest net profit of oil refining cycle in each round was 1,035.86 Baht and the highest one was 31,219.02 Baht. The lowest net profit of 7 entrepreneurs per year was 49,721.44 Baht and the highest was 1,498,513.09 Baht.

Net profit also depended on various factors, the number of condensing boilers in each round, and the frequency of distillation in each month. They also found that the fuel was the highest cost and the labour cost was also high. Those were huge impact on the profitability of each refined. However, agarwood oil refining was a business to invest because it could be made the profit for the entrepreneur.