At Lower Cost Dr. Yves El Mallat

Particular Wage Rate/Day

US$

Productivity

MT.W.S/Lab/Day Labor Cost US$/MT/Day

Refinery A 16 5 3.2

Refinery B 18 7 2.6

0.6 US$

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The major cost component in any sugar refinery resides

in the raw sugar purchase cost, which could exceed 88 % (Raw sugar melted) of the white sugar produced at Ex-factory cost.

Particulars %

Raw Sugar Melted 88.3%

Labor Cost 3.4%

Energy (Khuff Gas) 2.9%

Packing Cost 2.4%

Chemicals Cost 1.3%

Factory Overheads 1.25%

Repair & Maintenance 0.3%

Other Utilities 0.15%

White Sugar Ex-Factory Cost 100%

97%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

Raw Sugar Melted

Labor Cost

Energy (Khuff Gas)

Packing Cost

Chemicals Cost

Factory Overheads

Repair & Maintenance

Other Utilities

White Sugar Refining Cost Components

Raw sugar hedging is when a company

offsets risks arising out of fluctuations in raw

sugar prices.

Industrial Engineering joins

people, machines and the

organization to achieve

greater productivity.

Advanced Technology

Gasketed Plate

Heat Exchangers

Installation of state-of-the-art sugar packaging equipment comes with

accompanying promise of faster speed coupled with reduced labor, giveaway,

and packaging material waste.

All other packaging cost components are manageable by the means of supply

price negotiations and wastage control.

39

40 Countries with a low productivity increase are

among the poorest of the planet.

41