Cotton Gin Operating Costs in the Midsouth 1968-69 and 1969-70

Gin operating costs in the Midsouth were analyzed for 1968-69 and 1969-70 on the basis of a sample of 48 plants representing over 8 percent of the total ginning capacity of the region. Capacity utilization rates and ginning volumes were down in 1969-70, compared with 1968-69, while per bale operating costs were generally higher. Average capacity utilization declined from 54 percent in 1968-69 to 49 percent in 1969-70, while average total cost per bale increased from $16.33 to $18.05. All overhead costs were up in 1969-70, due mainly to reduced volumes; variable costs rose as a result of general price increases.