174 MISC. PUBLICATION 5 4 0, TJ. S. DEPT. OF AGRICULTURE 



ferent raw materials; (3) obtaining accurate control over all phases 

 of operation; (4) keeping the operator informed on current pro- 

 duction costs; and (5) providing a proper and detailed record of 

 operations for future reference or audit. 



In order to simplify their consideration, operating costs are divided 

 into the following main groups: Raw material cost, preparation cost, 

 drying cost, packaging and warehousing costs, indirect and overhead 

 costs (accounts must be set up in which these charges are accumulated 

 before distribution to the first four groups) . 



This is a convenient grouping for discussion, since it covers the major 

 steps most commonly followed in plants that handle vegetables or 

 fruits. Each major step can be considered separately, and factors 

 peculiar to that step need not be confused with any other. From an 

 operating standpoint also, such a grouping has merit. In keeping 

 these costs separate, the operator can compare various methods of 

 operation. If tunnel drying on trays is to be compared with drying 

 on a conveyor, costs associated with the actual drying steps are readily 

 available for comparison. 



For some purposes, a further break-down is desirable. For example, 

 the problems involved in peeling and trimming present a broad field 

 for study. The relative advantages of lye peeling, brine peeling, heat 

 peeling of various kinds, abrasive peeling, and hand peeling, together 

 with related trimming costs, warrant much consideration. For the 

 purpose of making such studies, a detailed break-clown of preparation 

 costs is valuable. For example, peeling, trimming, and blanching may 

 each be given separate consideration. 



RAW-MATERIAL COST 



As a rule, raw material is the largest single item of cost in a vege- 

 table- or fruit-dehydration plant. In some instances, it may amount 

 to as much as 50 percent or more of the total cost per dry pound. Any 

 attempt to reduce operating costs should, therefore, include careful 

 study and control of the raw material. Variety, growing condition^ 

 time of harvest, handling, and storage, all of which affect the quality 

 of raw product, are extremely important in determining costs, yield, 

 and quality of dry product. An operator should contract for his raw 

 material well in advance of actual need, so that the production, trans- 

 portation, and storage will be under his direct supervision and the 

 product delivered to him will be the best obtainable. 



The cost of raw product is magnified in the cost of the dry product 

 to the extent of the overall shrinkage ratio. 17 On cabbage, a cost in- 

 crease of only a dollar a ton will result in an increased cost of almost 1 

 cent per dry pound. On a given vegetable, the quality and condition 

 of the raw material will determine largely the overall shrinkage ratio. 

 It is advisable in many cases to pay relatively high prices in order to 

 obtain high-quality foods, since lower preparation losses and fre- 

 quently lower drying losses will increase the yields and more than 

 offset the higher purchase price. 



A careful analysis of the interrelated variables (raw-material grade, 

 preparation losses, trimming costs, and drying ratio) is essential if the 



17 The "overall shrinkage ratio" is the ratio of the weight of unprepared raw material 

 to the resultant weight of the finished product. The "drying ratio" is the ratio of the 

 weight of prepared material entering the drier to the weight of the same material leaving 

 the drier. The proper use of these terms helps to avoid confusion. 



