Costs of Building and Operating Rice Drying and Storage Facilities in the South

Holder, Shelby H.,, Joseph L. Ghetti and Zolon M. Looney

No 313760, Marketing Research Reports from United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program

Abstract: Capital requirements and operating costs were analyzed using economic-engineering techniques to develop average cost curves for concrete upright type commercial rice dryers with storage capacities of approximately 100,000, 300,000 and 600,000 hundredweight. Capital requirements ranged from over three-quarters of a million dollars for the 100,000 hundredweight facility to over 2 million dollars for the 600,000 hundredweight plant. Taken in order of plant size, the operating costs--based on estimated receipts of 135 percent of net storage capacity--were $1.02, $0.60, and $0.49 per hundredweight. The 100,000 hundredweight plant could not cover costs even at a receipt level equivalent to 1.8 times its net storage capacity. Break-even volumes for the 300,000, and 600,000 hundredweight facilities were approximately 1.5 and 1.2 times net storage capacity, respectively.

Keywords: Crop Production/Industries; Labor and Human Capital; Marketing; Production Economics; Research and Development/Tech Change/Emerging Technologies; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 58
Date: 1973-09
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uamsmr:313760

DOI: 10.22004/ag.econ.313760

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