THE FEASIBILITY STUDY OF MEDICAL CANNABIS INDOOR CULTIVATION PROJECT

Abstract

The objective of this study is to study the market, technical, and financial feasibility of Medical Cannabis Indoor Cultivation Project within four closed-system greenhouses on a 1-rai plot of land in Nong Sarai Subdistrict, Pak Chong District, Nakhon Ratchasima Province. The project duration is 10 years. Primary data were collected through interviews with three cannabis growers, and secondary data were gathered from various sources. The study found that there is market feasibility due to the continuous growth of the medical cannabis market in Thailand, driven by government policies. Additionally, the current supply of medical cannabis is insufficient to meet the increasing annual demand. The technical analysis indicated feasibility as the project location is easily accessible, experts are available to provide guidance during the initial phase, and environmental control equipment is used to ensure standard production. Charlotte’s Angel, chosen cannabis strain, is also suitable for cultivation in indoor. The financial feasibility analysis revealed that the project has a Net Present Value (NPV) of 10,518,709.90 THB, an Internal Rate of Return (IRR) of 38%, a Benefit-Cost Ratio (BCR) of 1.35, and a payback period of 2 years, 6 months, and 4 days. Sensitivity analysis showed that the project can withstand changes in revenue and costs within acceptable levels. Therefore, the project is deemed suitable for investment.