Handling costs

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It is very easy to overlook handling costs. Each individual time a product is handled the cost per kilogram will be negligible. But a product can be handled many times before it reaches the consumer. The total of ail these small handling costs can end up being quite considerable, particularly in countries with relatively high labour costs.

In some cases it is possible to get an accurate idea of handling costs. For example, porters at wholesale markets usually charge a fixed rate per box or per cart. In other cases, however, there will not be a fixed charge. Costs per container will then need to be worked out approximately by dividing the wage of the employee by the number of packages handled. Where casual employees are recruited on an hourly basis (for example at a market) this might be fairly easy. Where the person is a full-time employee of the trader the calculation is more difficult. The employee may spend many hours sitting on a truck travelling between the farmer and the market. He will be doing nothing during this time but the trader will still have to pay him if he wants his assistance to load and unload.

Referring to a Farmer-Wholesaler-Retailer-Consumer marketing chain we could have the following individual handlings:

• farmer or labourer loads produce on to ox- cart;
• Iabourer unloads produce at assembly market and it is weighed;
• wholesaler or his employee repackages the produce in wholesaler's containers;
• produce is carried to and loaded on wholesaler's truck;
• produce is unloaded at wholesale market and taken to premises occupied by wholesaler or his agent and weighed;
• produce is unpacked and sorted or graded;
• produce is repacked in retailer's containers;
• produce is carried to retailer's transport;
• produce is unloaded at retailer's store;
• produce is repackaged into plastic bags.

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