ABSTRACT

In 2001, 970 operating gins processed the largest United States cotton crop in history, averaging 20,400 bales per gin. This trend toward fewer gins and higher ginning capacity has prompted the need to survey costs of cotton ginning. The ginning cost survey resulted in data from 176 ginners that identified production rates and variable ginning costs for the 2001 ginning season. The average variable cost was $19.59 per bale, with seasonal labor as the largest single expense reported in this survey. Full-time labor cost was the second largest expense. Cost comparison based on gin volume showed that larger annual volume reduced the per bale cost, primarily as a result of reduced labor cost. Regional cost data revealed that Southeastern and Mid-South gins have the lowest per bale cost, while California and Texas had the highest cost. California gins reported the highest energy cost per bale in both saw and roller gins. Texas and Oklahoma, where cotton is both picked and stripped, showed that additional repair and energy cost were associated with ginning stripper harvested cotton. Total ginning cost was calculated using a simplified analysis method. Since every gin has a unique cost structure, a worksheet was developed to assist ginners in this analysis. Based on the average variable cost and reasonable assumptions for gin plant fixed costs, $40.67 total cost per bale was determined. The total cost per bale decreases with higher annual volumes, but this incremental decrease becomes smaller at higher annual volumes.