A Feasibility Study of Establishing Halal Food Factory: A Case Study of Coconut Processing Factory in Pattani Province

Abstract

A Feasibility Study of Establishing a Halal Food Factory, case study with a coconut processing factory in Pattani Provinceใ To build a factory for processing coconuts under the Halal standards. All 5 aspects were studied: marketing, technical, management, environmental and financial.  The results indicated that the target market is the Gulf cooperation Council, which is a group of school and working age.  The appropriated location of the factory is at Pattani Industrial Estate. The plant layout is the considers the flow of the production process and the relationship of each department. The factory built has an area of 3,025 square meters, the volume of coconuts in production is 2,000 coconuts per day. the coconuts are sufficient in area near the factory. yielding 10,000 packets of crispy coconut products per day.  The factory uses semi-automatic machines controlled by human labor. The production process must be under halal standards. Organizational structure management has two portions: production and office. There are two parts to the environment: a wastewater disposal system in the production process with only 10 cubic meters per day and the safety of people and property in the event of unrest in the area, which continued to decline. With respect to financial analysis, the project uses investment capital of 30,000,000 baht, found that the net present value is 28,043,842 baht at a rate of return on investment of 49.31%, payback period of 2 years and 4 months, compared to a minimum rate of return of 29.50%. Therefore, this project is suitable for investment.