Toward Zero Agro-Waste: A Business Model for Sugarcane Leaves Management in Thailand

Abstract

Sugarcane is one of the oldest crops ever cultivated by humans and has a long history. Currently, the prevalent practice of burning sugarcane fields increases environmental concerns because many farmers frequently use this method to facilitate the harvest process and prepare the area for the next planting crop. Thus, the effective use of sugarcane leaves with proper management can overcome this problem. This paper represents sugarcane leaf management by developing a business model focused on collection, densification, and transportation, explicitly targeting the conversion of waste sugarcane leaves into fuel for a biomass power plant. The business model is categorized into two primary groups: the farmer group and the middleman group. Both groups are incentivized to invest in tools and equipment for collecting and densifying biomass, thereby facilitating the effective performance of the model. Furthermore, an economic analysis has been conducted encompassing an investment cost evaluation and the estimation of the payback period for this business model. The results indicate that the farmer group demonstrates a payback period of 1.72 years, while the middleman group reveals a longer payback period of 2.06 years. This strategic approach not only enhances the value of biomass waste but also significantly reduces the unwanted burn on farming fields, effectively mitigating air pollution.