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7.2 Component Costs to Supply Chain Component costs of the supply chain include capital costs and operating costs. These are represented in the model as discussed below. Capital, unless otherwise specified, is depreciated over ten thousand hours of use. The model assumes a current capital value and a salvage value at the end of the depreciation period. Depreciation (or loss in value) costs are distributed on an hourly basis using straight line depreciation. Annual capital finance costs are calculated by multiplying the capital value by an assumed interest rate of 8%. This cost is split into cash and non-cash using the owner’s equity in the capital. Thus, if there was 25% equity in the capital equipment then 25% of the capital finance cost would be non-cash representing the opportunity cost of ownership. The remaining 75% would be a cash cost representing the actual finance cost of ownership. These costs are each distributed per hour of operation. Overhead costs, representing registrations, insurance premiums, bank fees, accounting fees etc. are represented in one figure per annum of $18,000. This cost is distributed per hour of operation. It should be noted that no management costs are included in the model. Wage costs are applied at fifty dollars plus a thirty percent on-cost per person per hour. Total fuel use is estimated for the harvester and for each haulout by applying two fuel burn rates (in litres per hour). An idle fuel burn rate is used whenever a machine is waiting or unloading and a working fuel burn rate is applied at all other times. There is no fuel consumed during servicing and repairs (but wages still apply). A cost of fuel, in dollars per litre, is assumed to derive the total cost of fuel. Repairs and maintenance (R&M) costs have been applied at a rate of one dollar per tonne. Consumable blades are accounted for separately. Total costs are reported as gross figures and per hour, per hectare and per tonne. Harvest time performance is used to attribute costs on an hourly basis. The model represents actual operating cost and no profit margin has been included in the model. Model component costs and the assumptions described in this section have been widely used in the sugar industry and are considered appropriate for mallee biomass harvesting. 7.3 Costing Assumptions 7.3.1 Spatial Data Harvesting cost will be affected by field layout. Spatial data, such as block area, row length and haul distance to the nearest trafficable road were derived using Google Earth from two real plantings, one representing a high density planting and the other representing a low to medium density planting. Haul distance was estimated by measuring the straight line distance from the paddock centroid to the nearest trafficable road and multiplying this by √2. The method assumes that rather than travelling in a straight line the haul vehicle would traverse the two shorter sides of a right isosceles triangle associated with the haul distance. This method has been used extensively and has been validated to be within 2% accuracy. 159
It was assumed that there was a fifty kilogram tree every two metres of row and there are two rows per belt. High, medium and low planting densities were modelled by using a belt spacing of 75, 150 and 225 metres respectively. Time spent moving from field to field was modelled as 3%, 6% and 9% respectively to represent increasing time spent moving as the planting density decreases. 7.3.2 Capital Assumptions Three scenarios were derived, each using different capital equipment. All scenarios used: • A harvester with a new value of $750,000 depreciated to $10,000 over 10,000 engine hours. • A machinery shed valued at $150,000 and depreciated to zero over 50,000 hours of operation. • A service vehicle with a fuel trailer and tools at a value of $50,000, depreciated to $5,000 over 10,000 engine hours. Scenario One: Rear-tip trailers Scenario one is a low cost solution and assumes that 25 tonne capacity road-haul trailers are taken into the field and are filled directly from the harvester. These bins, represented in Figure 7.1 are hauled in field behind a tractor and, once full, are hauled to and uncoupled at the nearest trafficable road. It is assumed that the uncoupling would take fifteen minutes. The capital value of the haul trailers are assumed to be accounted for in the road transport cost. Total system cost is $1,377,600.00 and is detailed in Table 7.1 Figure 7.1 Rear-tip trailer Table 7.1 Scenario one capital equipment. Equipment description capital value salvage value equity anticipated use $ $ % hours 160
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Sustainable Biomass Supply Chain fo
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Foreword This report provides an as
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include business development (new p
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Acknowledgments The authors would l
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4.1 Product Options and Supply Chai
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Table 4.2 Assessment of current val
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Figure 3.4 Tracked rigid self-prope
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Executive Summary What the report i
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• Biomass production potential of
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• As the Industry expands, the mo
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Harvesting, transport and storage s
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Biomass processing, supply chain pl
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Key barriers to biomass industries
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Crop-Biomass Production Production
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Figure 1.1 The cropping and pasture
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Table 1.1 Mallee species used for p
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1.1.4 Growth Cycle Mallee System Ma
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northern New South Wales (where it
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Almost 80% of the industry now cuts
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Bark has relatively high ash but as
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Carbon sinks Planting of mallees to
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Table 1.5(a) State Land area devote
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out the fluctuations in farm income
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Mallee system Most of the mallee bi
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inconclusive result may have been d
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For a sustainable woody crop indust
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changed significantly since they we
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Figure 2.2 Biosystems Engineering p
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Whole-of-crop harvesting represents
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During the last decade the harvesti
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single row, as this would improve t
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2.2.2.2 Weight Sugar System The Aus
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Table 2.1 Harvester Comparison Tabl
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The quality of cut may be less impo
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ate than a 170 tonne/ha crop of sta
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Dry Leaf 6.1 - 3.5 17.0 58.9 53.2 T
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Bulk density will be a key consider
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Table 2.4 EM levels in cane supply
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L/T L/T 60 0.97 0.71 80 0.92 0.66 1
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Total 7.5-26 16.5 Mallee System The
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• waiting for mill delivery of em
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perhaps at 10 - 20 km intervals. Th
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transport arrangements, harvest gro
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contractors and growers, and the fa
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experience of the sugar industry wi
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Table 2.11 Alternative harvest paym
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onto the harvester. BR+F still send
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Repairs and maintenance 2.10 Capita
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Figure 2.14 and Table 2.14 describe
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Sichter et al. (2005)), harvest and
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Transport efficiencies may be possi
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3. Transport and Storage Systems Tr
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same time, the potential problems o
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Figure 3.3 Articulated self-propell
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• The harvester will not have any
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Figure 3.7 Gross mass compared with
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external factors dramatically impac
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Figure 3.11 The effect of haulout t
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3.3 Road Transport 3.3.1 Configurat
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Figure 3.15 shows an example of the
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Road distance one way < 20 km 70 km
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Haul distance is largely outside th
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3.6 Recommendations The nature of t
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• The strategy offered lower tota
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sugarcane billets are such that wit
Page 131 and 132: • Transfer the whole tree product
Page 133 and 134: Figure 4.5(b) Energy balance of con
Page 135 and 136: 2010). Table 4.2 presents a summary
Page 137 and 138: 4.4.2 Activated charcoal Activated
Page 139 and 140: Nett Product Value ($/t) $475.00 $
Page 141 and 142: Table 4.9 presents an estimation of
Page 143 and 144: • Oil from leaf @ $2/kg • Synth
Page 145 and 146: • The mallee oil would be extract
Page 147 and 148: 5. Industry and Business Structures
Page 149 and 150: is conducted into tariff levels on
Page 151 and 152: Bx is % brix in first expressed jui
Page 153 and 154: Hildebrand (2002) estimated that th
Page 155 and 156: also has a flow on effect to the sp
Page 157 and 158: Sugar Industry Illustrative Example
Page 159 and 160: with super size multi-lift bins ove
Page 161 and 162: farmer vs. harvester) is the next l
Page 163 and 164: 6. Supply Chain Planning and Manage
Page 165 and 166: Figure 6.1 Building blocks of the s
Page 167 and 168: weighed against the costs of operat
Page 169 and 170: • There is close contact between
Page 171 and 172: 6.4 Planning, Management Tools and
Page 173 and 174: • Harvest and transport logistics
Page 175 and 176: interface. The system allows users
Page 177 and 178: Case Study 6.2 - Model Application
Page 179 and 180: Relationships between sectors and p
Page 181: 7. Supply Chain Modelling and Econo
Page 185 and 186: Table 7.2 Scenario two capital equi
Page 187 and 188: Table 7.4 Fuel burn rates harvester
Page 189 and 190: Figure 7.5 Effect of capital equipm
Page 191 and 192: Figure 7.7 Effect of annual tonnes
Page 193 and 194: 30 1.8 7.0 12.3 17.5 50 1.1 4.3 7.6
Page 195 and 196: 8. Conclusions and Recommendations
Page 197 and 198: Biomass bulk density has a large im
Page 199 and 200: Vehicles used for infield haulout w
Page 201 and 202: This can be compared with harvest a
Page 203 and 204: While diversification can add value
Page 205 and 206: Appendix 1: Comparative Assessment
Page 207 and 208: and transport conditions. Billet le
Page 209 and 210: that cane production is the most pr
Page 211 and 212: on sugar only, other proceeds (mola
Page 213 and 214: References Agnew, J 2002. A Partici
Page 215 and 216: Enecon 2001. Integrated Tree Proces
Page 217 and 218: Keating, BA, Antony, G, Brennan, LE
Page 219 and 220: Ridge, DR and Linedale, AL, 1997. T
Page 221: Willcox, T, Hussey, B, Chapple, D a
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