Implementing sugarcane quality-based payment systems using a decision support system
In sugar industries where growers and millers are independent economic entities, payment systems aim at sharing the annual sugar industry revenue. Payment systems are designed to create incentives to improve milling performance, cane yield and quality. Like most revenue sharing agreements, they tend to be a contentious issue between growers and millers. As far as quality is concerned, they are often based on complex and sophisticated formulae, and may be difficult for stakeholders to understand. In some industries, although modifying the payment system can be the key to increasing industry profitability, mistrust between growers and millers can hamper such improvements. The situation is currently exacerbated by the development of sugarcane co-products, such as ethanol, electricity or by-products for niche markets, which can generate higher profits than sugar, thus calling for a rethink of payment systems. This paper presents a decision support approach to assess new cane payment systems while increasing the transparency of revenue sharing and the effects of quality incentives on income. It is based on a decision support system called PEMPA, which helps to assess the impact of new cane payment systems on growers' incomes and on revenue sharing between stakeholders. Simulations were performed to assess the situation of 3800 growers who supply two mills on Reunion Island. Results showed that both individual incomes and collective revenue could be increased by adopting a new payment system based on a relative formula. The simulation approach could facilitate understanding and implementation of the payment formula. PEMPA is now available as freeware for testing in different settings, especially for multiple-purpose sugarcane.
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Language: | eng |
Subjects: | E16 - Économie de la production, Saccharum officinarum, canne à sucre, qualité, prix à la production, système d'aide à la décision, sous-produit de sucrerie, économie de production, approche participative, http://aims.fao.org/aos/agrovoc/c_6727, http://aims.fao.org/aos/agrovoc/c_7501, http://aims.fao.org/aos/agrovoc/c_6400, http://aims.fao.org/aos/agrovoc/c_6198, http://aims.fao.org/aos/agrovoc/c_49868, http://aims.fao.org/aos/agrovoc/c_7500, http://aims.fao.org/aos/agrovoc/c_26808, http://aims.fao.org/aos/agrovoc/c_9000119, http://aims.fao.org/aos/agrovoc/c_6543, http://aims.fao.org/aos/agrovoc/c_3081, |
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dig-cirad-fr-5527692024-01-28T17:54:17Z http://agritrop.cirad.fr/552769/ http://agritrop.cirad.fr/552769/ Implementing sugarcane quality-based payment systems using a decision support system. Lejars Caroline, Auzoux Sandrine, Siegmund Bertrand, Letourmy Philippe. 2010. Computers and Electronics in Agriculture, 70 (1) : 225-233.https://doi.org/10.1016/j.compag.2009.10.010 <https://doi.org/10.1016/j.compag.2009.10.010> Implementing sugarcane quality-based payment systems using a decision support system Lejars, Caroline Auzoux, Sandrine Siegmund, Bertrand Letourmy, Philippe eng 2010 Computers and Electronics in Agriculture E16 - Économie de la production Saccharum officinarum canne à sucre qualité prix à la production système d'aide à la décision sous-produit de sucrerie économie de production approche participative http://aims.fao.org/aos/agrovoc/c_6727 http://aims.fao.org/aos/agrovoc/c_7501 http://aims.fao.org/aos/agrovoc/c_6400 http://aims.fao.org/aos/agrovoc/c_6198 http://aims.fao.org/aos/agrovoc/c_49868 http://aims.fao.org/aos/agrovoc/c_7500 http://aims.fao.org/aos/agrovoc/c_26808 http://aims.fao.org/aos/agrovoc/c_9000119 La Réunion France http://aims.fao.org/aos/agrovoc/c_6543 http://aims.fao.org/aos/agrovoc/c_3081 In sugar industries where growers and millers are independent economic entities, payment systems aim at sharing the annual sugar industry revenue. Payment systems are designed to create incentives to improve milling performance, cane yield and quality. Like most revenue sharing agreements, they tend to be a contentious issue between growers and millers. As far as quality is concerned, they are often based on complex and sophisticated formulae, and may be difficult for stakeholders to understand. In some industries, although modifying the payment system can be the key to increasing industry profitability, mistrust between growers and millers can hamper such improvements. The situation is currently exacerbated by the development of sugarcane co-products, such as ethanol, electricity or by-products for niche markets, which can generate higher profits than sugar, thus calling for a rethink of payment systems. This paper presents a decision support approach to assess new cane payment systems while increasing the transparency of revenue sharing and the effects of quality incentives on income. It is based on a decision support system called PEMPA, which helps to assess the impact of new cane payment systems on growers' incomes and on revenue sharing between stakeholders. Simulations were performed to assess the situation of 3800 growers who supply two mills on Reunion Island. Results showed that both individual incomes and collective revenue could be increased by adopting a new payment system based on a relative formula. The simulation approach could facilitate understanding and implementation of the payment formula. PEMPA is now available as freeware for testing in different settings, especially for multiple-purpose sugarcane. article info:eu-repo/semantics/article Journal Article info:eu-repo/semantics/publishedVersion http://agritrop.cirad.fr/552769/1/document_552769.pdf application/pdf Cirad license info:eu-repo/semantics/restrictedAccess https://agritrop.cirad.fr/mention_legale.html https://doi.org/10.1016/j.compag.2009.10.010 10.1016/j.compag.2009.10.010 info:eu-repo/semantics/altIdentifier/doi/10.1016/j.compag.2009.10.010 info:eu-repo/semantics/altIdentifier/purl/https://doi.org/10.1016/j.compag.2009.10.010 |
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E16 - Économie de la production Saccharum officinarum canne à sucre qualité prix à la production système d'aide à la décision sous-produit de sucrerie économie de production approche participative http://aims.fao.org/aos/agrovoc/c_6727 http://aims.fao.org/aos/agrovoc/c_7501 http://aims.fao.org/aos/agrovoc/c_6400 http://aims.fao.org/aos/agrovoc/c_6198 http://aims.fao.org/aos/agrovoc/c_49868 http://aims.fao.org/aos/agrovoc/c_7500 http://aims.fao.org/aos/agrovoc/c_26808 http://aims.fao.org/aos/agrovoc/c_9000119 http://aims.fao.org/aos/agrovoc/c_6543 http://aims.fao.org/aos/agrovoc/c_3081 E16 - Économie de la production Saccharum officinarum canne à sucre qualité prix à la production système d'aide à la décision sous-produit de sucrerie économie de production approche participative http://aims.fao.org/aos/agrovoc/c_6727 http://aims.fao.org/aos/agrovoc/c_7501 http://aims.fao.org/aos/agrovoc/c_6400 http://aims.fao.org/aos/agrovoc/c_6198 http://aims.fao.org/aos/agrovoc/c_49868 http://aims.fao.org/aos/agrovoc/c_7500 http://aims.fao.org/aos/agrovoc/c_26808 http://aims.fao.org/aos/agrovoc/c_9000119 http://aims.fao.org/aos/agrovoc/c_6543 http://aims.fao.org/aos/agrovoc/c_3081 |
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E16 - Économie de la production Saccharum officinarum canne à sucre qualité prix à la production système d'aide à la décision sous-produit de sucrerie économie de production approche participative http://aims.fao.org/aos/agrovoc/c_6727 http://aims.fao.org/aos/agrovoc/c_7501 http://aims.fao.org/aos/agrovoc/c_6400 http://aims.fao.org/aos/agrovoc/c_6198 http://aims.fao.org/aos/agrovoc/c_49868 http://aims.fao.org/aos/agrovoc/c_7500 http://aims.fao.org/aos/agrovoc/c_26808 http://aims.fao.org/aos/agrovoc/c_9000119 http://aims.fao.org/aos/agrovoc/c_6543 http://aims.fao.org/aos/agrovoc/c_3081 E16 - Économie de la production Saccharum officinarum canne à sucre qualité prix à la production système d'aide à la décision sous-produit de sucrerie économie de production approche participative http://aims.fao.org/aos/agrovoc/c_6727 http://aims.fao.org/aos/agrovoc/c_7501 http://aims.fao.org/aos/agrovoc/c_6400 http://aims.fao.org/aos/agrovoc/c_6198 http://aims.fao.org/aos/agrovoc/c_49868 http://aims.fao.org/aos/agrovoc/c_7500 http://aims.fao.org/aos/agrovoc/c_26808 http://aims.fao.org/aos/agrovoc/c_9000119 http://aims.fao.org/aos/agrovoc/c_6543 http://aims.fao.org/aos/agrovoc/c_3081 Lejars, Caroline Auzoux, Sandrine Siegmund, Bertrand Letourmy, Philippe Implementing sugarcane quality-based payment systems using a decision support system |
description |
In sugar industries where growers and millers are independent economic entities, payment systems aim at sharing the annual sugar industry revenue. Payment systems are designed to create incentives to improve milling performance, cane yield and quality. Like most revenue sharing agreements, they tend to be a contentious issue between growers and millers. As far as quality is concerned, they are often based on complex and sophisticated formulae, and may be difficult for stakeholders to understand. In some industries, although modifying the payment system can be the key to increasing industry profitability, mistrust between growers and millers can hamper such improvements. The situation is currently exacerbated by the development of sugarcane co-products, such as ethanol, electricity or by-products for niche markets, which can generate higher profits than sugar, thus calling for a rethink of payment systems. This paper presents a decision support approach to assess new cane payment systems while increasing the transparency of revenue sharing and the effects of quality incentives on income. It is based on a decision support system called PEMPA, which helps to assess the impact of new cane payment systems on growers' incomes and on revenue sharing between stakeholders. Simulations were performed to assess the situation of 3800 growers who supply two mills on Reunion Island. Results showed that both individual incomes and collective revenue could be increased by adopting a new payment system based on a relative formula. The simulation approach could facilitate understanding and implementation of the payment formula. PEMPA is now available as freeware for testing in different settings, especially for multiple-purpose sugarcane. |
format |
article |
topic_facet |
E16 - Économie de la production Saccharum officinarum canne à sucre qualité prix à la production système d'aide à la décision sous-produit de sucrerie économie de production approche participative http://aims.fao.org/aos/agrovoc/c_6727 http://aims.fao.org/aos/agrovoc/c_7501 http://aims.fao.org/aos/agrovoc/c_6400 http://aims.fao.org/aos/agrovoc/c_6198 http://aims.fao.org/aos/agrovoc/c_49868 http://aims.fao.org/aos/agrovoc/c_7500 http://aims.fao.org/aos/agrovoc/c_26808 http://aims.fao.org/aos/agrovoc/c_9000119 http://aims.fao.org/aos/agrovoc/c_6543 http://aims.fao.org/aos/agrovoc/c_3081 |
author |
Lejars, Caroline Auzoux, Sandrine Siegmund, Bertrand Letourmy, Philippe |
author_facet |
Lejars, Caroline Auzoux, Sandrine Siegmund, Bertrand Letourmy, Philippe |
author_sort |
Lejars, Caroline |
title |
Implementing sugarcane quality-based payment systems using a decision support system |
title_short |
Implementing sugarcane quality-based payment systems using a decision support system |
title_full |
Implementing sugarcane quality-based payment systems using a decision support system |
title_fullStr |
Implementing sugarcane quality-based payment systems using a decision support system |
title_full_unstemmed |
Implementing sugarcane quality-based payment systems using a decision support system |
title_sort |
implementing sugarcane quality-based payment systems using a decision support system |
url |
http://agritrop.cirad.fr/552769/ http://agritrop.cirad.fr/552769/1/document_552769.pdf |
work_keys_str_mv |
AT lejarscaroline implementingsugarcanequalitybasedpaymentsystemsusingadecisionsupportsystem AT auzouxsandrine implementingsugarcanequalitybasedpaymentsystemsusingadecisionsupportsystem AT siegmundbertrand implementingsugarcanequalitybasedpaymentsystemsusingadecisionsupportsystem AT letourmyphilippe implementingsugarcanequalitybasedpaymentsystemsusingadecisionsupportsystem |
_version_ |
1792497447421870080 |