Table 10,--Value of inventories and purchases of containers and packaging supplies by fruit and 
vegetable processing cooperatives, 1965 
T 
Item {+ 
| Average 
Beginning: Inventory sie1ele 6.16 enele ers 52,095 
PURCHASES) ,/.s: 016 seis ee. este Sis 28-6 | gOS aOO 
Peak inVentOry cic sie lele a leleve. oles) cf ere 210,300 
Ending inventory: << 6< «es 6.06 e» © 46,000 
High 
Containers Packaging materials 
a 
Dollars 
238,000 0 14,600 100,000 0 
20,000,000 10 ~ 76,073 300,000 189 
1,430,000 O 47,585 110,000 40 
200,000 O° 1S, E79 110,000 0 
1 One cooperative used large wooden boxes for bulk shipment purchased in earlier years, These 
boxes usually last for 5 years, and as a result, no purchases were reported, 
Table 11,~-Number and percentage of fruit and vegetable 
processing cooperatives reporting specified amounts 
of storage space used for containers and packaging 
supplies, 1965 
| Number of 
Storage space used coopera- | Percent 
(square feet) tives re- of total 
porting 
NONE mere leveleleretslskelsiohere/ehe) a 3 
Less than 5,000, ...ccccce 6 
3, O00 OOOO ie cre lateve ee ee 3 14 
LO;000 24 000 Te oo. cieerelee 4 
25; 000=49'.990 ore chelate ofers 1 
50,000 and over .....ecee00 Ee aa 
FL Otal Wy ceverevseletetelel cuete 21 100 
Pricing Policies 
Prices cooperative processors paid for 
containers were based on a number of factors 
and varied considerably. 
PURCHASE OF CONTAINERS AND PACK- 
AGING SUPPLIES AT LIST VS. NEGOTIATED 
PRICES 
Seventy percent of the fruit and vegetable 
processors reported the purchase of con- 
tainers and packaging supplies at established 
14 
list prices. The remainder of the cooperatives 
reported that purchases were made at prices 
arrived at through negotiation. 
Standard size and weight cans, bottles, and 
corrugated cardboard cases were purchased 
at established list prices, especially in pro- 
cessing areas. Processors reported that when 
they purchased containers and packaging sup- 
plies are at list prices, they frequently had 
some flexibility to negotiate for various dis- 
counts, service features, delivery schedules, 
or credit terms. 
In situations where special container speci- 
fications were required, such as for grape 
juice or apple juice, specially designed wine 
bottles, or specially printed labels or cartons, 
prices were usually negotiated. 
Volume of purchases and specifications of 
the container were the major factors consid- 
ered in arriving at a negotiated price for pur- 
chases of container and packaging supplies 
(table 12), Other factors were length of the 
contract period (one processor reported a 
40-year arrangement), delivery capability, and 
coordination of production with that of another 
processor. Warehousing agreements were 
also considered in the negotiations. Ware- 
housing allowances are available from manu- 
facturers for accepting delivery of con- 
tainers before the processing season actually 
begins. 
