Published date: Mar 01 2018

Journal Title: KnE Life Sciences

Issue title: The 3rd International Conference on Agro-Industry 2016 “Competitive & Sustainable Agro-Industry" (3rd ICoA 2016)

Pages: 277-283

DOI: 10.18502/kls.v4i2.1682

Tanachote Boonvorachotetanachote.b@ku.ac.thDepartment of Agro-Industrial Technology, Faculty of Agro-Industry, Kasetsart University, 50 Ngamwongwan Rd., Lad Yao, Chatuchak, Bangkok 10900

Rapeepat SakulveeraphanDepartment of Agro-Industrial Technology, Faculty of Agro-Industry, Kasetsart University, 50 Ngamwongwan Rd., Lad Yao, Chatuchak, Bangkok 10900

This paper aims to rank priority on companies’ performance improvement for Thai medium- and large-sized food industry: cost-efficiency seeking and value-added creation. Listed (large-sized) companies of Thai food industry show better performance than non-listed (medium-sized) companies in every measurement dimension, for examples, larger company sizes, higher profitability and lower costs of capitals. In short run, Thai non-listed food companies should aim for seeking cost-efficiency from production and financial cost reduction including foreign exchange risk due to their main sales volumes relying on export market. To enhance companies’ value for Thai listed food companies, companies’ economic value-added increases by fixed asset turnover, profit margin, sales growth, and time interest earned. On the other hand, Average costs of capitals (WACC) are negatively related to economic value-added. The food companies with high EVA will have lower costs of capitals. The listed companies achieve their value enhancing target quite satisfied, while non-listed companies should set this value-enhancing target for their long-run goal

Keywords: Economic Value-Added; Cost Efficiency; Thai Food Industry