Estimating the Potential Impact of the Module Builder on the Number and Size of Gins

K. W. Paxton, Yuan Chen


The module builder system has improved the timeliness of the harvest operation. In addition, the storage potential of the module enables cotton gins to extend the ginning season and gin larger volumes of cotton. Because larger volumes generally imply lower average ginning costs, there are some incentives for gins to seek additional cotton. This study examines the trade-offs between the reduced costs from additional volume and the added costs associated with obtaining the extra volume. As individual gins increase volume, fewer gins will be required to gin existing production. Results obtained here suggest that there will be increasing economic pressure on gins to obtain larger volumes to reduce costs. Gins unable or unwilling to attract additional volume will be at an economic disadvantage relative to other gins in the industry.

Reprinted from Proceedings of the 1994 Beltwide Cotton Conferences pp. 491 - 495
©National Cotton Council, Memphis TN

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Document last modified Sunday, Dec 6 1998