/) /.3M' ^'<5' y ^^\ United States /fl^^l Department of ^ Agriculture DTi: statistical Bulletin Number 918 March 1995 An Economic Research Service Report Cotton Ginning Charges, Harvesting Practices, and Selected Marketing Costs, 1993/94 Season MAY 3 1 7998 Edward H. Glade, Jr., Mae Dean Johnson, and Le^slje A. Meyer univorjij Meyer [f of riu 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 1 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 70 $/bale 60- 50 40-1 30 20 10H TX OK NC $43.28 U.S. average SC GA AZ CA MS MO 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 1 8 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 181a year earlier. The average volume processed per gin was 1 1,483 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. IVIetliods 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 Average charges for saw-girmed i^iland cotton, average charges for selected Marketing services, and Item Unit U.S. AL AZ AR ■ CA Bales ginned (rmiing bales) 1/ Thou. 15,582 453 853 1,081 j 3,038 Active gins 1/ No. 1,357 61 69 127 117 Average volune per gin No. 11,483 7,426 12,362 8.512 25.966 Ginning and wrapping charges: Total charge per 480- lb. net- weight bale 2/ Dol. 43.28 38.08 41.85 38.13 42.42 Method of harvesting: Nachine-picked Pet. 76 100 98 100 100 Pet. 76 Pet. 24 Pet. 3/ Lbs. 1,447 4/ 1.467 1,470 1,409 Lbs. 2,080 --- .-- ... ... Lbs. 1,766 ... 1.801 1,750 ... Pet. 26 23 13 42 18 Pet. 74 77 87 58 82 Nach i ne- st r i pped Machine- scrapped Pet. 3/ — 2 3/ Weight of seed cotton per 480- lb. net-weight bale: Mach i ne- pi eked Mach i ne- St r i pped Machine-scrapped Cotton ginned from: Trai lers Modules Charges for warehousing and related services: 6/ Charge per bale for receiving Dol. 2.97 3.10 — 3.12 — Charge per bale per month for insured storage Dol. 1.86 1.74 2.01 1.99 1.92 Charge per bale for corpressing to Lniversal density Charge per bale for outhandling J — = 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., Dol. 7.93 7.00 6.60 8.10 6.60 Dol. 5.88 5.24 5.27 8.43 5.11 NC OK SC TN TX 420 260 197 537 4,974 41 61 46 53 423 lated inforaation, fay State, 1993/94 season GA LA NS NO NN 710 1,085 1,509 371 94 61 75 163 41 19 11,639 14.467 9,258 9,049 4,947 10,2U 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 50.34 100 100 98 100 88 100 28 100 100 29 12 --- 72 -- 3/ 71 V 1.427 4/ 1,468 1.482 4/ 1,550 4/ 1,490 1,483 5/ -- 2,187 — 5/ 2,074 29 43 36 27 67 45 43 67 54 15 71 57 64 73 33 55 57 33 46 85 3.01 4.10 3.72 1.50 2.32 3.36 2.25 2.76 3.44 2.52 1.66 2.10 2.08 1.95 1.76 1.49 1.82 1.54 2.00 1.72 7.80 8.60 8.00 7.50 — 7.80 — 8.30 8.80 4.68 8.18 8.99 8.53 4.59 3.16 4.17 3.79 8.54 4.64 American- Pi ma and i4>land cotton. Excludes bales ginned in Florida and Virginia, also excludes d cotton, lint cleaning, and insurance, but does not reflect any patronage dividends, rebates, ercent. 4/ Seed cotton usually not weighed. 5/ No data available. 6/ Based on pii)lished tariffs. UNIVERSITY OF FLORIDA 100 80 60 40 20 Figure 2 Module Use Varies by State Percent of crop 87 85 82 77 73 71 64 1 58 1 57 1 57 1 55 1 46 1 33 1 33 1 31262 08229 611 1 Distribution of Harvested Seed Cotton, in Pounds Seed cotton (machine-picked) ■ 1,447 lbs. Cotton lint 480 Trast> 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 1 3 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. To order additional copies, call 1-800-999-6779. Toll free in the United States and Canada. Other areas, please call 1-703-834-0125. 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