Cotton ginning charges, harvesting practices, and selected marketing costs, 1993/94 season

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Material Information

Title:
Cotton ginning charges, harvesting practices, and selected marketing costs, 1993/94 season
Series Title:
An Economic Research Service report
Physical Description:
1 sheet : ill. ; 28 x 44 cm., folded to 28 x 22 cm.
Language:
English
Creator:
Glade, Edward H
Johnson, Mae Dean
Meyer, Leslie A
United States -- Dept. of Agriculture. -- Economic Research Service
Publisher:
U.S. Dept. of Agriculture, Economic Research Service
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Cotton gins and ginning -- Economic aspects -- United States   ( lcsh )
Cotton picking -- United States   ( lcsh )
Cotton -- Marketing -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Caption title.
General Note:
"March 1995."
Statement of Responsibility:
Edward H. Glade, Jr., Mae Dean Johnson, and Leslie A. Meyer.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004725460
oclc - 33833893
sobekcm - AA00005262_00001
System ID:
AA00005262:00001

Full Text



United States
Department of
Agriculture


EuS
Statistical
Bulletin
Number 918
March 1995


An Economic Research Service Report


Cotton Ginning Charges, Harvesting
Practices, and Selected Marketing

Costs, 1993/94 Season
E, J, Me 3J, ad

Edward H. Glade, Jr., Mae Dean Johnson, and Ls!ieA. Meyer


Ginning Charges
The average charge for saw-ginning and wrapping a
480-pound net-weight bale of cotton in the United
States was $43.28 per bale during the 1993/94 season,
compared with $42.50 in 1992/93. This increase re-
verses a 5-year decline in the U.S. average ginning
charge. However, charges in most States actually de-
clined slightly from year-earlier levels because of
relatively larger 1993/94 cotton production in a num-
ber of States where ginning charges are traditionally
above the U.S. average charge (fig. 1).

Average charges declined in 10 States and increased
in only 4. The largest drop in ginning charges oc-
curred in California, where average charges fell by
$4.00 per bale, while South Carolina experienced the
largest increase, with average charges up by $1.49 per
bale. For most of the other cotton-producing States,
1993/94 ginning charges remained about the same as
for the 1992/93 season.

Active Gins
There were a total of 1,357 active cotton gins operat-
ing in the 14 major cotton-producing States during
1993/94, compared with 1,383 the previous season.
The small drop in gin numbers reflects little change in
U.S. production and prospects for a much larger
Figure 1
Cotton Ginning Charges, 1993/94 Season
70S/bale
701
601 NM-
60" NW. $43.28 U.S. average
so5 TX OK NC
50 sc
GA AZ CA
30-1 LA MS MO AL AR
TN
20-
10-
o--


State


1994/95 cotton crop. The number of gins increased in
Arkansas, Georgia, South Carolina, and Texas, and de-
creased in each of the other cotton-growing States.
The largest increase in gin numbers was in Texas,
where an additional 18 gins operated to process the
very large 1993 Texas crop. The greatest drop in
numbers occurred in Mississippi, where 163 gins oper-
ated during 1993/94 compared with 181 a year earlier.
The average volume processed per gin was 11,483
bales in 1993/94, an average increase of 143 bales per
gin over 1992/93 volume. Gin volumes varied from
an average high of 25,966 bales in California, to a
low of only 4,262 bales in Oklahoma.

Methods of Harvesting
The proportion of the 1993/94 cotton crop harvested
by the machine-picked method averaged 76 percent-
down from 84 percent the previous season.
Machine-stripping, used primarily in Texas and Okla-
homa, accounted for 24 percent of the total harvested
volume in 1993/94, an increase of 8 percentage points
over 1992/93. Sharply higher 1993/94 production in
these States, combined with lower production in most
States using the machine-picked method of harvest,
was responsible for the increase in the machine-strip-
ping share during 1993/94. Machine-scrapping
(gleaning from the ground) continues to account for
less than 0.5 percent of the harvested volume.

The use of modules as a method of temporary field or
gin yard storage of seed cotton continues to grow
across the Cotton Belt. A record 74 percent of the
1993/94 cotton crop was ginned from modules, with
module use accounting for over 50 percent of gin-
nings in all but three of the major cotton-growing
States (fig. 2). By State, use of modules ranged from
87 percent of the crop in Arizona, to 33 percent in
New Mexico and South Carolina.

Pounds of Seed Cotton Required for a
480-Pound Net-Weight Bale
The average volume of seed cotton that must be har-
vested to yield a 480-pound net-weight bale changed


/- 1^'?L


Go


- .. -10.10 R I









Average charges for saw-ginned ptland cotton, average charges for selected marketing services, and
-----------------------te Unit U.S. AL AZ AR CA
Iter Unit U.S. AL AZ AR CA
----------------------------------------------------------------------------


Bales ginned (running bales) 1/


Active gins 1/


Thou. 15,582


1,357


853 1,081

69 127


Average volume per gin

Ginning and wrapping charges:
Total charge per 480-tb. net-
weight bale 2/


No. 11,483 7,426 12,362 8,512



Dot. 43.28 38.08 41.85 38.13


Method of harvesting:
Machine-picked


Machine-stripped

Machine-scrapped


Pct.

Pct.

Pct.


76 100


98 100


per 480-Lb.


Weight of seed cotton
net-weight bate:
Nachine-picked


Machine-stripped

Mach ine-scrapped


Cotton ginned from:
Trailers

Nodules

Charges for warehousing and related
services: 6/
Charge per bale for receiving

Charge per bale per month for
insured storage

Charge per bate for compressing
to universal density

Charge per bale for outhandling


Lbs.

Lbs.

Lbs.


Pct.

Pct.


Dot.


Dot.


Dot.

Dot.


1,447

2,080

1,766


26

74



2.97


1.86


7.93

5.88


4/ 1,467 1,470



1,801 1,750


3.10


1.74


7.00

5.24


2.01


6.60

5.27


3.12


1.99


8.10

8.43


--- = Zero.
1/ Based on report of May 1994, by National Agricultural Statistics Service, USDA, and includes b
4 active gins in Florida, 1 in Kansas, and 2 in Virginia. 2/ Includes bagging and ties, drying of
transportation to warehouses, industry organization dues, or cotton classing fees. 3/ Less than 0.


3,038

117

25,966



42.42


1,409


1.92


6.60

5.11









Lated information, by State, 1993/94 season
----------------------------------------------------------------------------------
GA LA MS NO MN NC OK SC TN TX
710 1,085 1,509 371 94 420 260 197 537 4,974
710 1,085 1,509 371 94 420 260 197 537 4,974


75 163


53 423


11.639 14,467 9,258 9,049 4,947 10,244 4,262 4,283 10,132 11,759



41.55 35.17 36.33 37.42 56.62 49.12 50.04 47.89 30.40 50.34


98 100


88 100


28 100


4/ 1,427


4/ 1,468 1,482


4/ 1,550

--- 2,187


4/ 1,490 1,483


5/ 2,074


43 36 27


57 64


4.10


2.10


--- 7.80


8.18


3.72


2.08


8.60

8.99


73



1.50


1.95


8.00

8.53


67

33



2.32


1.76


7.50

4.59


45 43


55 57 33


3.36


1.49


2.25


1.82


2.76


1.54


--- 7.80


3.16


4.17


3.79


American-Pima and upland cotton. Excludes bales ginned in Florida and Virginia, also excludes
d cotton, lint cleaning, and insurance, but does not reflect any patronage dividends, rebates,
percent. 4/ Seed cotton usually not weighed. 5/ No data available. 6/ Based on published tariffs.


1.66


4.68


54

46



3.44


2.00


8.30

8.54


15

85



2.52


1.72


8.80

4.64







Figure 2
Module Use Varies by State


UNIVERSITY OF FLORIDA


3 1262 08229611 1
Distribution


of Harvested Seed Cotton, in Pounds


Percent of crop


Seed cotton (machine-picked) 1,447 Ibs.
Cotton lint 480
Trash 147
Gin motes 20


Cottonseed 800


AZ TX CA AL MO GA MS AR LA OK NC TN NM SC


only slightly for both the machine-picked and ma-
chine-scrapped harvesting technologies during
1993/94, compared with the previous season. How-
ever, for the machine-stripped method, the average
seed cotton requirement fell by 153 pounds due to
much improved growing and harvesting conditions,
primarily in Texas.

Under the machine-picked method of harvest, an aver-
age of 1,447 pounds of seed cotton were required in
1993/94, compared with 1,452 pounds a year earlier.
Cotton harvested by machine-stripping required only
2,080 pounds of seed cotton to produce a 480-pound
net-weight bale-153 pounds less than in 1992/93.
Machine-scrappping required that 1,766 pounds of
seed cotton be gleaned per bale ginned, compared
with 1,739 pounds during 1992/93. The product distri-
bution of harvested seed cotton is shown in figure 3.

Selected Marketing Services
After ginning, most cotton bales are moved to local
warehouses for storage and other services necessary
for marketing. With universal density compression
now performed at most gins, however, some bales are
shipped directly to textile mills and ports from gin


points. This practice can result in considerable sav-
ings if the final destination is known at time of
ginning.

Charges for each of the four primary warehousing
services changed modestly for the 1993/94 season.
Warehouse receiving charges averaged $2.97 per bale
in 1993/94, compared with $3.11 in 1992/93. Storage
charges averaged $1.86 per bale per month, up only 1
cent from the 1992/93 season average. Charges for
compressing cotton to universal density increased 13
cents per bale to an average of $7.93 in 1993/94.
Warehouse charges for outhandling or shipping serv-
ices averaged $5.88 per bale during 1993/94,
compared with $6.24 per bale a year earlier.


**************

For more information, call Edward H. Glade. Jr.,
(202) 501-8551, or write: Commercial Agriculture Di-
vision, Economic Research Service, U.S. Department
of Agriculture, Room 1034, 1301 New York Avenue,
NW., Washington, DC 20005-4788.


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