The idea of module averaging and the desired results have been well discussed.

First, I want to thank Garland Dye of the El Paso Classing Office for his cooperation and input. Also, I appreciate Paul Karban of the Phoenix Classing Office for his input as well into these pilot projects.

Our cotton at Glenbar Gin, Pima, Arizona, is classed at the El Paso Classing office. We received a print out of the first 1500 bales showing the individual bale strength readings as compared to the module average. Of the first 1500 bales, only five were what we call outliers. An outlier is plus or minus 3.9 grams per tex. 3.9 is a fairly wide range, but I thought it was pretty good to have only five outliers out of 1500 bales. In fact, there were only two gins participating in this pilot project out of the El Paso office, and there were only 160 outliers for the whole season which is a very small percentage. Incidently, when resampled these outliers were rerun and came back into the good range.

As we analyzed several modules, we found, for instance, that a module that had an average of k.1 gram per tex had individual readings of 6.9 to 30.4 grams per tex. Most other modules had about the same range of differences.

The bottom line, of course, is the monetary return to the producers. Using the premiums and discounts based on CCC loan rates, the module mentioned that had an average of 8.1 strength would receive a 150 point premium for each bale in that module. Using the individual readings, the producers would receive a range of premiums from 100 points to 250 points. The average, however, using the individual readings for each module in our module is 164 points. In this case, if each bale had been offered separately using the strength of that individual bale and the grower had received premium at loan value, he would have been better off financially than using the module average

This, however, is not the goal of module averaging. The goal is to reflect as accurately as possible the strength of the fiber in an individual bale of cotton. This will enable our mill customers to buy for their needs and create a rare efficient spinning operation.

How did the grower fare under HV:I and strength measurements? The goal marketing agencies did have premium and discounts based on strength. However, the grower that offered his cotton on the spot market found that the merchant did not put any emphasis on strength measurements. Therefore, no premiums.

In summary, I believe that we should continue to module average. This will more reflect the true strength and quality of the bale. In the final conclusion, the market will be based on quality.