Agroindustrial project analysi

54 AGROINDUSTRIAL PROJECT ANALYSISTable 2-2. Cost Structure of Selected Central AmericanExported Fresh Produce, 1971-72(U.S. dollars per box exported)Exported produceMelonsCucumbers___(Guatemala) El Salvador HondurasPer- Per- Per-Cost itemExportcostcentageof totalExportcostcentageof totalExportcostcentageof totalProduction 1.29 16.6 1.96 31.8 3.52 41.3Packing 1.41 18.1 1.20 19.5 1.10 12.9Transport 1.67 21.5 1.96 31.8 2.87 33.6Tariffs 1.42 18.3 0.45 7.3 0.55 6.5Handling andrepacking 1.18 15.1 n.a. n.a. 0.25 2.9Commissions 0.81 10.4 0.59 9.6 0.24 2.8Total 7.78 100.0 6.16 100.0 8.53 100.0n.a., Not available.Source: James E. Austin, direct survey; cited in Ray A. Goldberg, AgribusinessManagement for Developing Countries-Latin America (Cambridge,Mass.: Ballinger Publishing Co., 1974), p. 180.ensuring the patronage of buyers and sellers. One new wholesalemarket in an Asian nation had difficulties getting wholesalers touse the facility because it was located on the outskirts of the cityand was difficult for the wholesalers' retail customers to reach, althoughit was easily accessible to producers and processors supplyingthe wholesalers. Furthermore, people were forbidden to sleepovernight in the new facilities, a proscription that conflicted withsocial traditions.A further motive for analyzing the distribution system's structureand functions is to locate the system's controlling force. Thelocus of power is often indicated by structural concentration-forexample, a few processors who supply many distributors or manyprocessors who supply a few distributors (a large supermarketchain, for instance). When structural concentration occurs, thepower lies with the few because many organizations are dependenton them. Power may also be derived by controlling a central functionsuch as storage or transport. If the distribution system'spower is highly concentrated and the risk to the processor is high,