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Abstract

This study evaluates the economic feasibility of establishing a packing house for the New Jersey Tomato Council Cooperative Association. Several scenarios were evaluated using a comprehensive firm-level, dynamic, stochastic, multiple-year, capital-budgeting computer model. Results indicate that the packing house would have difficulty sustaining itself if it packed tomatoes only during the three months a year that local tomatoes are produced. Economic performance of the packing house improved, however, when additional tomatoes were repacked from another supplier during the months that tomatoes are not produced in New Jersey.

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