AGRARIS: Journal of Agribusiness and Rural Development Research
Vol. 12 No. 1: January-June 2026

Profit Optimization in Small and Medium Enterprise (SME) Organic Farming Systems in Thailand: A TOC–LP Scenario Analysis of Demand Constraints and Unconstrained Conditions

Rattanawong, Ananya (Unknown)
Ongkunaruk, Pornthipa (Unknown)
Leingpibul, Thaweephan (Duke) (Unknown)



Article Info

Publish Date
30 Jun 2026

Abstract

Demand for organic produce has expanded rapidly in response to increasing consumer awareness of health and environmental concerns. Despite this growth, small and medium-sized enterprise (SME) organic farms in Thailand continue to face significant operational and financial constraints in meeting demand in a sustainable manner. This study employs an integrated analytical framework combining the Theory of Constraints (TOC) and linear programming (LP) to optimize crop planning and resource allocation within an SME organic farming system. The analysis identifies land availability as the primary production bottleneck and evaluates alternative cropping strategies under varying demand scenarios. Results indicate that improved allocation of land and adjustments in planting schedules can enhance overall financial performance. However, profitability remains highly sensitive to demand conditions and seasonal resource constraints. Furthermore, the findings reveal that diversified crop portfolios may conceal inefficiencies, as profitable crops can offset losses from less viable ones, suggesting that diversification does not necessarily enhance resilience. This study contributes a practical decision-support approach for SME organic farmers to better align production decisions with market demand, improve economic performance, and promote long-term sustainability.

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Journal Info

Abbrev

agraris

Publisher

Subject

Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance Social Sciences

Description

AGRARIS: Journal of Agibusiness and Rural Development Research is scientific periodical publication on agribusiness and rural development issue as a media for information dissemination of research result for lecturers, researchers and practitioners. The coverage includes but is not restricted to: ...