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Repairs and maintenance 2.10<br />

Capital ownership 0.76<br />

Overheads 0.45<br />

Total 6.78<br />

Harvesting contractors can influence the size <strong>of</strong> the group. However, there is a substantial argument<br />

to show that the harvesting contractor has less control <strong>of</strong> group size than might be thought. The<br />

contractor does not have formal, written agreements and may lose substantial portions <strong>of</strong> the contract<br />

at any time. Grower decisions to accept, reject or change a contractor are <strong>of</strong>ten made on perceptions<br />

or traditional relationships, rather than on performance criteria. Competition between groups leads to<br />

under-cutting <strong>of</strong> harvesting price. Available cane may be geographically isolated from the remainder<br />

<strong>of</strong> the group, making it less economical to accept.<br />

The effect <strong>of</strong> the size <strong>of</strong> the harvesting group on the cost <strong>of</strong> harvesting is shown in Figure 2.11.<br />

Figure 2.11 Effect <strong>of</strong> group size on harvesting costs (Sandell and Agnew, 2002)<br />

The harvesting contractor has no influence on crop yield, although this has a significant impact on the<br />

cost <strong>of</strong> harvesting as shown in Figure 2.12.<br />

72

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