were purchased f.o.b, supplier's plant or ware- 
house, the distance from the shipping point to 
the processor's plant was more than 50 miles. 
In these cases, freight costs ranged from 4 to 
10 percent of the initial cost of the containers, 
For instance, Cherry Growers, Inc., Traverse 
City, Mich., was required to ship its cans 150 
to 250 miles to its individual plants. Half were 
shipped by rail and half by truck. For a load 
of 20,000 cans moving from Chicago to Trav- 
erse City, a distance of about 250 miles, 
freight charges were $169; from St. Joseph, 
Mich., a distance of about 175 miles, the cost 
was $121. The average freight charge reported 
by Cherry Growers was about $120 per load. 
Another processor however, reported freight 
costs of about $250 for a load of 2,200 cases 
of cans that was hauled 150 to 200 miles. 
When processors were asked for suggestions 
on reducing transportation costs on containers, 
75 percent indicated that transportation costs 
were about as low as possible, or that freight 
rates were equalized and the processor hadno 
opportunity for further reduction in freight 
rates. Five processors minimized transpor- 
tation costs by using their own trucks on a 
backhaul arrangement. This, of course, is 
practical only when a processor or regional 
cooperative associated with a processor al- 
ready owns or leases a fleet of trucks. 
The use of lighter weight material such as 
aluminum vs. steel is a very real possibility 
for reducing transportation costs. Another 
possibility is to establish acan-manufacturing 
plant in an area if otherwise needed, 
Specifications and Prices Paid 
Comparison of prices paid for containers 
and packaging supplies from various sources 
was not possible since virtually all containers 
were purchased directly from manufacturers, 
In the case of plants owned by cooperatives, 
prices of cans they produce are based on the 
standard industry prices for the area. The 
operating savings are then returned to the 
parent cooperatives at the year end in the 
form of patronage refunds. 
20 
Prices paid by fruit and vegetable processors 
in 1965 for purchases direct from the manu- 
facturer were calculated on the basis of data 
obtained in both personal interview and mail 
survey. They are shown in appendix tables 2-7, 
Prices shown represent net prices paid by 
processors--list prices minus the various 
discounts obtained by the processors, 
The greatest variations in net prices paid 
for metal cans in 1965 were reflected in the 
most commonly reported sizes such as in 6-oz. 
juice, 8-oz, tall, No. 303, No. 2 1/2, 46-oz, 
juice, No. 10, and the No, 30 frozen tin (table 
15), 
The wider variations in prices reflected pos- 
sible regional differences and variations in 
freight costs, quantities purchased, and ma- 
terial specifications. The weight of the metal 
for cans varied widely, depending on the 
product the cans were to be used for, The type 
of finish--plain, inside enamel, and bothinside 
and outside enamel--also varied, 
Prices for glass containers reflected the 
cost of cardboard cases used for shipping the 
empty bottles and the finished product (appendix 
table 3), Little variation, however, was ob- 
served among prices reported by processors 
for glass bottles. Wineries reported an average 
net cost per case of about $1. Since each brand 
of wine is identified partially by its distinctive 
bottle and each winery has developed its own 
type of bottle through arrangements with the 
manufacturer, cost data for each type of bottle 
have little meaning. 
There also was considerable variation in the 
prices paid for the standard-size corrugated 
cardboard cannery cases, such as those for 
the 6-0z, can, No, 303 can, No, 2 1/2 can, and 
the No. 10 can. The high prices were from 3 to 
51 percent over the low prices for this group. 
Differences in type and extent of printing 
counted for some of the variations in container 
prices. Other variations were due to material 
specifications, quantities purchased, freight 
costs, and possible regional differences. Dis- 
counts accounted for a larger percentage of 
