It is a common belief of the management that local villages have a stronger sense of ownership to the cane than the Cane Function does, which is why the local villagers are able to produce better cane yield per rai. Their cash in the wallet is directly impacted by the cane yield; therefore, they tend to take better care of the cane than we do. For Mitr Lao, we are putting the salary men to plant cane. The incentive simply isn’t aligned with the output and the quality produced. The incentive that the Cane Function received was a standard 1 to 1.5 months (based on the overall performance of Mitr Lao).
The Cane Function of Mitr Lao has also been tracking another two indicators - % burnt cane and % trash. In Thailand, the amount of burnt cane may accounts as high as 40% of the total cane crushed in the central province. This is because farmers find it easier to harvest the cane without having to cut all the leaves. It saves them time and resources to harvest the cane. Burnt canes that are not crushed within 48 hours will provide lower CCS. In Thailand, it is much harder to control the amount of burnt cane as it is up to the farmers themselves whether to cut fresh cane or to burn prior to cutting. It’s their land and their cane, so they make the call. The Cane Function can only provide higher incentives for fresh cane and educate farmers that cutting cane leaves and leaving them on the field will help improve the soil moister and quality. That is all they can do…
The % trash is the amount of trash in the cane that goes into the production process. Higher trash simply means we pay for dirt and not cane. Trash is a serious problem for Thai operation as they pay cane farmers by weight and CCS. High trash simply means less cane and less sugar.
It is a common belief of the management that local villages have a stronger sense of ownership to the cane than the Cane Function does, which is why the local villagers are able to produce better cane yield per rai. Their cash in the wallet is directly impacted by the cane yield; therefore, they tend to take better care of the cane than we do. For Mitr Lao, we are putting the salary men to plant cane. The incentive simply isn’t aligned with the output and the quality produced. The incentive that the Cane Function received was a standard 1 to 1.5 months (based on the overall performance of Mitr Lao).
The Cane Function of Mitr Lao has also been tracking another two indicators - % burnt cane and % trash. In Thailand, the amount of burnt cane may accounts as high as 40% of the total cane crushed in the central province. This is because farmers find it easier to harvest the cane without having to cut all the leaves. It saves them time and resources to harvest the cane. Burnt canes that are not crushed within 48 hours will provide lower CCS. In Thailand, it is much harder to control the amount of burnt cane as it is up to the farmers themselves whether to cut fresh cane or to burn prior to cutting. It’s their land and their cane, so they make the call. The Cane Function can only provide higher incentives for fresh cane and educate farmers that cutting cane leaves and leaving them on the field will help improve the soil moister and quality. That is all they can do…
The % trash is the amount of trash in the cane that goes into the production process. Higher trash simply means we pay for dirt and not cane. Trash is a serious problem for Thai operation as they pay cane farmers by weight and CCS. High trash simply means less cane and less sugar.
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