Storing and Handling Cotton in Public Facilities: An Evaluation of Cost Structures in 1964-65 and 1969-70

Between 1964-65 and 1969-70, average occupancy levels of warehousing space dropped approximately 58 percent. This resulted in an increase in storage costs of $2.23 per bale per year. The cost structure for the handling functions also increased significantly during this period. The principal forces affecting both the storage and handling functions were declining volume and increasing cost of inputs. These conclusions are based on an analysis of accounting and operating data obtained by personal interviews from a sample of firms in the industry. The results of the analysis also indicated that regional differences existed in the cost structure associated with warehouses and compresses.