Dear Kh Berry & Kh Supaporn,
Additional cost for new facility
I understood that you showed us the actual cost and I already shared it with FPP team. It’s needed FPP comments before I come back to you.
While I’m waiting comments from FPP, I also have my comment. You are strategic partnership and mutual benefit are considered.
BC : Thanks !
We should learn the cost from this year and find out the way to minimize the cost for next year. If the cost’s increase 23%(from 4.3 to 5.29) in the first year, it’s not good.
BC : Agree to your point. We do need to make it stable without the change rapidly.
I also saw the direct labor cost increase 84% while volume is only 2300MT. Could you pls explain this point?
BC : Supaporn will check with Chanathip then get you back.
From your experience in this year, I would need your help to propose how to minimize the variable cost. Then we will apply it for next year.
BC : Okay, can we find a date to meet and discuss then work it out together ?
I believe you know Syngenta pay fixed cost 5 years it make us having a high cost. So we try to minimize VC cost by consolidate volume to one vendor.
BC : Yes, same as you are I was hoping the increasing of the volume from old facility’s 1,600 Mt to new facility’s 2,300 Mt which should give us lower cost. It’s the reason why I tried to target the cost from the old cost of THB4.78 to the target THB4.3. But the reality is that the volume is not enough for the Wet season which caused the total average cost per year high. So please assist to arrange and bring in some more volume of the Field corn to reduce the cost.
However, If it’s needed to increase VC, can we control as at 4.78THB/Kg?. This is my expectation.
BC : As the actual cost was shared together, so please feel fine to share and review it together and see how we can meet your expectation and in a win-win situation for both of the company.