APPLE PACKING COSTS

E.A. Proctor and E.A. Jackson

No 259536, Department of Economics and Business - Archive from North Carolina State University, Department of Economics

Abstract: The purpose of this report is to determine the comparative costs of packing apples in modern North Carolina plants for a range of output capacities, lengths of season and technologies. Information on investment and operating costs was obtained from packinghouse operators, equipment manufacturers and published research reports. These data are used to derive fixed and variable costs per unit of output for the different plants. Building, equipment for either manual or mechanical dwnping systems, and operating costs are determined for packinghouses with hourly output capacities of 100, 200, 300, 400, 600 and 800 boxes of 40 pounds each. Total season costs are provided for the 200- and 400-box capacities for 300- and 400-hour seasons to illustrate length of season effects and procedure. Results of the study indicate that output increased 100 percent by increasing capacity from 200 tp 400 boxes/hour, with a 50 percent increase in capital investment. Annual costs per box decrease $ .09 when capacity is increased from 200 to 400 boxes per hour for a 300-hour season and $ .06 when length of season is increased from 300 to 400 hours for the 400-box plant. The cost decrease when both length of season and size of plant are increased is $ .15 per box. This information should benefit the N. C. packing industry as it considers future organization of resources for the purpose of maintaining or increasing its competitive position.

Keywords: Crop Production/Industries; Production Economics (search for similar items in EconPapers)
Pages: 29
Date: 1972-06-01
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ncbuar:259536

DOI: 10.22004/ag.econ.259536

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