The South African Sugar Industry's Division
نویسندگان
چکیده
The division of proceeds is a concept which has been used since 1936 to distribute the sugar industry's earnings between the equal partners in the industry the.milling and growing sections. The formula has been revised over the years to accommodate changes in the structure of the industry. The last major revision the introduction ofthe 'two pools' system was implemented in the 1985/86 season. The intention behind this revision was to improve the price signal to producers moving from a situation where each additional ton of cane produced earned an average price to where that extra ton now attracts the B Pool price. The latter is a price which better reflects the earnings the industry will receive for the additional sugar produced. This is an important point to remember when assessing the impact of new technologies or other changes in individual farm (or mill) circumstances. Unless additional quota can be procured, all additional production should be valued at the B Pool price to avoid overestimating its income-generating potential.
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