Basic raw materials for the manufacture of 
cans are shipped in from Alabama in the form 
of lithographed sheets. All cans manufactured 
are from lithograph stock, Lithography is to 
specifications of retailers who purchase the 
finished goods, 
As all cans manufactured are used exclu- 
sively by Winter Garden, no sales force is 
necessary. Also, Winter Garden maintains 
no research and development personnel; thus, 
administrative overhead is kept ata minimum. 
TYPE OF CANS MANUFACTURED 
Only two types of cans, the 6-oz, and 12-oz, 
metal cans, are produced in the Winter Garden 
plant; these represent the highest volume of 
all cans used, Other cans are purchased from 
the major can manufacturers. 
Management reported the break-even point 
on the 6-oz. and the 12-0z. can at about 30 
million to 50 million, depending on size, 
weight, and competitive prices. 
PROBLEMS IN OPERATION 
Management anticipates that a period of 
change in the can industry during the next 
few years may place the cooperative at a 
definite disadvantage. For this reason, man- 
agement is not interested in any expansion 
program or in taking on new customers as 
the plant does not have the capacity to fully 
supply its own needs at this time. Further 
expansion and sales to other cooperatives 
would result in adding a sales force or tech- 
nical representatives and consequently in- 
crease overhead costs. 
Further Opportunities for Cooperative Purchase or Manufacture 
Most container requirements of the coop- 
erative fruit and vegetable processors are 
supplied direct from the manufacturer. Reports 
from cooperatives indicated that in mostcases 
the market appears to be adequately covered 
by the major container manufacturers, How- 
ever, a few large and medium-size coopera- 
tives operate container manufacturing or fab- 
ricating plants on a profitable basis and at 
considerable savings to growers. Further, 
many other processors find it advisable to 
manufacture a substantial portion of their 
requirements--especially metal cans, 
Although no cooperative purchasing agencies 
served the processors contacted in this study, 
there were examples of successful joint pur- 
chases of containers among processors, Joint 
purchases of packaging supplies were usually 
limited to a relatively small percentage of the 
cooperative's total container expenditures and 
involved items such as freezer cartons, poly 
overwrap, plastic bags, and wine cases, This 
arrangement enabled processors to make sub- 
stantial savings, depending on volume and 
existing prices. 
26 
Cooperative Purchase 
Processors were asked their opinions re- 
garding opportunities for cooperative purchase 
of containers and packaging supplies in their 
respective areas, As shown in table 17, ap- 
proximately 60 percent thought there were 
very limited or no opportunities for coopera- 
tive action, The remainder believed there were 
possible or definite opportunities. 
Processors who thought their opportunities 
for cooperative purchases were limited were 
generally those whose purchases were large, 
and who would gain very little advantage 
through attempts to consolidate purchases 
with other processors, Another anticipated 
difficulty was getting sufficient volume within 
a small enough geographical area to be prac- 
tical, For example, one olive processor in- 
dicated that it was the only olive processor 
in the area. Another processor, a winery, 
believed it would be very difficult to get a. 
sufficient number of wineries to cooperate 
because they had each developed their own 
distinctive bottles over a period of years and 
