Capacity utilization and operating costs were analyzed for a sample of 41 gins representing 27 percent of the total ginning capacity and 26 percent of the total ginnings for the San Joaquin Valley of California during the 1971/72 season. Utilization of sample gin plant capacity averaged 53 percent, based on a typical ginning season of 906 operating hours and averages of 16.8 bales in rated hourly capacity and 6,754 bales in annual volume ginned. Operating costs per bale averaged: Out-of-pocket, $18.86; total, $23.24; and total standardized, $26.67.