Cost of Storing and Handling Cotton at Public Storage Facilities, 1971-1972 with Projections for 1973-74

Decreasing volumes and increasing input costs continued to plague the cotton warehousing industry during fiscal 1971-72. Total storage cost increased almost 60 percent over comparable cost for 1970-71. Total fixed cost and personnel expenses accounted for 75 percent of the total storage cost. These findings are based on an analysis of accounting and operational data obtained from warehouse and compress facilities. Increases occurred in the cost of all other services with the exception of the breakout function. Sample data were also used to develop projected storing and handling costs for fiscal 1973-74. These costs reflect projected changes in volumes handled and stored and expected changes in cost levels. Costs so developed were based on projected production of 11.4 and 13.0 million bales, beginning inventory in public storage of 2.9 million bales, and disappearance of 11.6 million bales.