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Arabian Journal of Business and Management Review
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  • Research Article   
  • Arab J Bus Manage Rev 2017, Vol 7(4): 310

Cost Benefit Analysis of Kenaf Cultivation for Producing Fiber in Malaysia

Paridah MT1,2, Hamdon A Abdelrhman1,3* and Shahwahid M1,3
1Laboratory of Biocomposite Technology, Institute of Tropical Forestry and Forest Products (INTROP), Universiti Putra Malaysia (UPM), 43400 Serdang, Selangor, Malaysia
2Department of Forestry and Range Sciences, Faculty of NATRES, University of Kordofan, P.O. Box 160, Elobeid, Sudan
3Faculty of Economics and Management, Universiti Putra Malaysia (UPM), 43400, Serdang, Selangor, Malaysia
*Corresponding Author : Hamdon A Abdelrhman, Laboratory of Biocomposite Technology, Institute of Tropical Forestry and Forest Products (INTROP), Universiti Putra Malaysia (UPM), 43400 Serdang, Selangor, Malaysia, Tel: +60 1-800-22-5587, Email: [email protected]

Received Date: Jun 13, 2017 / Accepted Date: Aug 30, 2017 / Published Date: Sep 03, 2017

Abstract

The main objective of this work to assess the cost benefit of kenaf cultivation in Malaysia. The data were collected through the focus group discussion with kenaf farmers as well as from National Company of Kenaf and Tobacco board (NKTB) administrative staff, the production data collected from Kenaf Processing and Marketing Centre Bachok-Kelantan. The cost benefit analysis model was developed using Microsoft Excel software. Three scenarios of kenaf production per hectare were considered which were 15, 12 and 10 ton. According to the data analysis; the investigation of the three scenarios revealed that when the farmers in Kelantan state cultivated kenaf for producing fiber the production of 15 tons per hectare was found to be viable and maximizes their profit. The results suggest that farmers need to increase the productivity and alternate the current cultivated variety V36 with the tested varieties in Malaysian soils.

Keywords: Kenaf cultivation; Kenaf variety; Cost benefit analysis

Citation: Paridah MT, Abdelrhman AH, Shahwahid M (2017) Cost Benefit Analysis of Kenaf Cultivation for Producing Fiber in Malaysia. Arabian J Bus Manag Review 7: 310.

Copyright: © 2017 Paridah MT, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

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