Transaction costs and processing costs in on-farm use of grain legumes - a prototype calculation tool

Transaction costs and processing costs in on-farm use of legumes - a prototype calculation tool

Goals: A tool to help  farmer answer the following question: should I use it or sell it on the market? To this end, this tool detailed the transaction costs and processing costs in case of farm internal use.

Structure: This prototype is built in a way that it can be adapted to specific contexts. Users can modify, adapt or complete the data depending on their context.

Methods: For the method, a desk research was undertaken to explore the existing tools. Then the prototype for the tool was designed. Based on the literature and farm level data the tool was exemplified with some recommended data. In the second step, this tool was presented and discussed with the stakeholders in order to validate this work.

Results: This tool might be helpful in the second step, after the production. The focus here is on the use for feed. This will be used to make the decision if the harvested grain legumes will be sold on the market or used on farm. In the previous studies (KEZEYA SEPNGANG ET AL., 2018), it was investigated that the feed value (pig feeding) was higher than the producer price, with a difference of 91 €/t. This tool tries to explain this difference by detailing the transaction costs and processing costs from the harvest to the feed trough.

Contacts: Bruno Kezeya (kezeya.bruno@fh-swf.de) and Marcus Mergenthaler (mergenthaler.marcus@fh-swf.de)