Transportation is an essential element of the production-distribution chain. Delays in
transportation are of serious concern since they affect production costs, which are eventually
reflected in the consumer price. The present paper focuses on the assessment of transportation
costs in the sugar cane industry, since they have been found to be very high in proportion to
other variable costs. Owing to constraints, the study focuses only on the north-east region of
Thailand. Data were collected through interviews with sugar-mill owners, sugar cane growers
and truck operators. The study recommends a strategy for the establishment of an effective
management mechanism in the delivery process of sugar cane products.