Measurement and feedback systems for improving market signals for harvesting : SRDC Final report BSS261
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Date
2005
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Abstract
One of the market impediments hindering the adoption of best practice for harvesting is
the one-price, dollar-per-tonne payment method for harvesting. It provides no incentive
for growers to improve farm layout or presentation for harvest, because the same price is
paid for harvesting under all conditions. Harvester operators do have an incentive to
reduce cane loss. However, they have no incentive to reduce extraneous matter and soil in
the cane supply. This project worked with harvesting groups, millers and cane growers at
Maryborough, Mackay and Burdekin to determine and pilot pricing structures to reflect
quality and quantity of work and to improve efficiency through better feedback systems
for improving market signals at harvest.
Initially, surveys were carried out to determine current payment methods and attitudes towards change. At Racecourse and Pioneer, most contractors were paid per tonne of cane, with the only variations being for long haulage distances. At Maryborough, most contracts used a base rate plus fuel. Many survey respondents saw a need to change to a more equitable system that reduced the current cross subsidisation.
Initially, surveys were carried out to determine current payment methods and attitudes towards change. At Racecourse and Pioneer, most contractors were paid per tonne of cane, with the only variations being for long haulage distances. At Maryborough, most contracts used a base rate plus fuel. Many survey respondents saw a need to change to a more equitable system that reduced the current cross subsidisation.
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Keywords
Pricing structures, Feedback systems, Market signals, Farming systems, Production management