Agriculture Reference
In-Depth Information
that can take into account the realities of pro-
duction, whatever its size and complexity.
Proposed model:
Revenue per hectare − Cost per hectare
= Operating margin
the company and approved by the owner/pro-
ducer of the straw:
B1 white hurds - fibre grey white
B2 white hurds - fibre yellow
B3 white hurds - fibre light green
V1 green hurds - fibre dark green
G1 grey hurds - fibre grey
G2 grey hurds - fibre black
8.3.2
Composition of revenues
As mentioned above, the designation of straw
colour is undertaken visually. This procedure is
subjective, however, and the Fraser Institute in
Bremen, Germany, has developed a chromato-
graphic analysis that has the potential to avoid
The revenue generated from the cultivation of
hemp within the 25 member states of the
European Union is derived from three sources:
•
the revenue from chopped straw;
•
the revenue from hemp seed;
•
This is dependent on the following conditions
being met: each producer must ensure that the
straw and hemp seed supplied are of good
quality, meet market standards and are free of
foreign bodies.
the agricultural subsidy payment.
HUMIDITY LEVELS
.
Generally speaking, it is
accepted that the normal humidity of straw is
approximately 15%. Where straw is supplied
with a higher humidity, the suppliers are penal-
ized. Where the humidity exceeds 19-20%,
some companies may even reject the product.
By contrast, a humidity reading inferior to
14% may attract a bonus payment.
The humidity level is evaluated using a
probe, which can be introduced into the heart
of the bale. This testing is usually undertaken
by the producer at the time of loading and then
again on arrival at the factory.
Payments for straw
This is the average price paid to the farmer for
the straw supplied by him that is wholesome
and meets market standards. In reality, compa-
nies buy straw according to the amount and a
number of qualitative variables including:
WEIGHT OF STRAW BALES
.
In order to keep con-
trol of transport costs, the companies that
retain responsibility for transport seek to fill
their vehicles with as heavy a load as possible.
Taking into account the density of the straw, it
is in their interest to take the heaviest bales, as
this will maximize the load on any given lorry.
For this reason, suppliers are penalized for sup-
plying bales that fail to meet a minimum weight.
Any supplier delivering bales directly to the fac-
tory will also find it in their own interest to
ensure that the bales are as heavy as possible.
COLOUR OF THE STRAW
.
The straw must produce
a fibre that is grey-white, yellow or light green
in colour. These qualities will produce hurds,
the broken pieces of the woody inner core of
the hemp stem, which are white in colour.
These criteria are set by industry accord-
ing to their needs. Accordingly, these types of
straw will attract the highest payments.
Where the straw is green in colour, the
plant is immature and the fibre produced will
be dark green, as will the resulting hurds. The
price paid for such straw is likely to suffer as a
result. Where the straw has spent too much
time on the ground, it will become grey or even
black. This can occur where the weather condi-
tions have not been favourable. In such cases,
the fibre and the hurds will themselves be grey
or black.
A large company has identified six colour
grades, although it should be noted that these
are visual characteristics that are designated by
PRESENCE OF STONES AND FOREIGN BODIES
.
Such
foreign objects can increase transport costs
and, more importantly, can interfere with the
factory processing of the straw. Companies
therefore penalize the supplier for a drop in
the quality of the straw.
Companies working for the paper indus-
try must ensure the straw is free from plastic
