| Abstract | This study focused on the oil palm plantation area in northeastern Thailand by studied current trade, market opportunity and future prospects of oil palm plantation. The study area was Nong Ha n, Nam Som and Ban Phu districts in Udon Thani province. Moreover, this study analyzed basic socio - economic characteristics, market opportunity, marketing channel and financial analysis on investment of oil palm plantation. I n the study area , o il palm plan tation are presented small area about 5 - 10 rais and most of oil palm farmers ’experience was 1 and 2 years old because oil palm is a new crop in the northeast ern Thailand and also the government is going on pilot project to promote oil palm plantation area in this region. According to survey, most farmers bought seeding from private - nurseries , development and land preparation by self funded, no water management and waiting rainfall, applied less fertilizer, self harvested and maintained, direct transport u sing own vehicle and direct transport to middleman. For harvesting farmers started to harvest their products in the fourth years which were twice time per month. Moreover, m arket opportunity in international market and domestic market provided excellent ma rket opportunities because raising demand from palm oil consumption market and the requirement for renewable energy or fuel for transportation. However, study area’s market opportunity in northeastern region (Udon Thani province) represented a few market o pportunity for oil palm farmers because this area lacked of palm oil factory, sold their products to middlemen, received low price for selling their products, and produced low yield. In addition, m arketing channels of FFB in Nong Han District is presented from farmers which are independent smallholders to the local trader and next passed to independent mill, FFB price was 2.5 baht per kg. For farmers in Ban Phu district is presented from farmers which are independent smallholders to the oil palm farmers’ a ggregation and next passed to local trader and finally to independent mill, FFB price was 2.3 baht per kg. In Nam Som distrct is started from farmers which are independent smallholder to first local trader and passed to second trader and finally to indepen dent mill, FFB price was 2.0 baht per kg. Finally, f inancial analysis showed that the net present value (NPV) of small farm (10 rais) and large farm (100 rais) represented 88,137.96 baht and 2,644,286.39 baht, consequently. In addition, the internal rate o f return (IRR) was 8.47 percent, 11.63 percent for small and large farm size, so IRR was greater than discount rate (7%). Moreover, the benefit cost ratio (BCR) was 1.19 of small farm and 1.91of large farm that means the project of oil palm plantation in s tudy area can accept to investment . Finally, p ayback period (PB) of small farm (10 rais) was 11 years 8 months and large farm (100 rais) was 8 years 6 months, so large farm presented payback period greater than small farm about 3 years. Moreover, the avera ge cost per kilogram of large farm average 0.95 baht/kg was lower than small farm average 1.47 baht/kg. |