Approximately 60 percent of the processors 
took full advantage of such discounts when of- 
fered, An additional 25 percent indicated that 
they were not always able to take advantage of 
the discounts, but did so whenever it was in 
the interest of the cooperative, Available ware- 
house space, inventory status, and available 
capital were the primary factors considered 
in making this type of purchasing decision. 
Only 14 percent were not able to take ad- 
vantage of the available discount or allowance. 
Lack of sufficient warehouse space was the 
main reason for not doing so. One firm in- 
dicated that it was purchasing glass containers 
from three different suppliers and as a result 
lacked sufficient volume from any one of the 
three firms to qualify. This situation was being 
corrected, 
Quantity discounts were available in several 
forms, ranging from extended credit terms to 
a 5+5+5 percent discount on corrugated card- 
board (table 14),° Most frequently, quantity dis- 
counts were simply 5 percent or 5+5 percent 
for purchase of containers in truckload or 
carload lots. 
The largest discounts were available on 
corrugated cardboard containers, of the four 
processors reporting discounts on cardboard 
of 5+5+5 percent, two indicated these terms 
were available based on length of contract 
period, The most common discount on card- 
board was the simple 5 percent on volume. 
One processor reported 5 percent on volume 
above car lots plus additional discounts in 
terms of printing cost on large orders (table 
14), Twenty percent of the quantity discounts 
on cardboard varied depending on negotiations. 
The maximum discount available on cans 
was 95 percent, This discount, based onvolume, 
was reported by 36 percent of the cooperatives. 
An additional 45 percent of the associations 
reported quantity discounts in the form of 
extended credit terms. 
5 Five percent on volume, 5 percent as a brokerage 
allowance, and an additional 5 percent at year end, 
Warehouse allowances were generally ona 
per month basis, computed from the time the 
processor accepted shipment of the containers 
to the time they were actually filled. Rates for 
can storage varied depending on date of pur- 
chase; reported discounts ranged from $0.18 
per pallet per month to extended cash discount 
terms from 10 to 45 days. 
Rates for corrugated cardboard ranged from 
0.0065 percent per month to 2 percent for 
warehousing; the average was about 0.2 percent 
per month. 
Only two processors reported any type of 
brokerage allowances, and both were for 5 
percent on corrugated cardboard, 
Preseason allowances, reported by five 
processors, normally took the form of ex- 
tended credit terms. 
Transportation 
Containers and packaging supplies were 
normally transported from the _ suppliers' 
plants directly to the processors’ plants in 
truckload lots. An estimated 80 percent of the 
volume was transported in full truckload lots 
and an additional 16 percent was transported 
in full carload lots. The remaining 4 percent 
represented special items or various packag- 
ing supplies such as cello overwrap and labels, 
and were transported in less than truckload 
lots. Tin cans, bottles, canning cases, and other 
cardboard cartons were generally shipped in 
full truckload lots, or if a long haul was re- 
quired, by rail. 
In areas of concentrated fruit and vegetable 
production, processors usually are located 
within a 50-mile radius of the supplier's plant 
or warehouse. In these areas, containers and 
packaging supplies are priced on a uniform 
delivered price, equalized to buyers at the 
closest manufacturing plant, 
Processors purchased approximately 70 
percent of their container and packaging sup- 
plies on a delivered basis. Where containers 
17 
