Cooperatives also believed that a plant would 
have to run one line for several years before 
it became profitable. With cooperative can- 
manufacturing plant volume now relatively 
small, any extensive research and development 
work is nearly prohibitive. 
PURCHASE THROUGH OTHER SUPPLIERS 
Advantages.--Cooperative processors nor- 
mally purchased containers and packaging 
supplies from suppliers other than coopera- 
tives for service reasons. Most purchases 
from private suppliers consisted of special- 
type containers or small lots of various size 
plastic bags and cello wraps. 
Prompt delivery, convenience in dealing 
with the local supplier, and reduced inventory 
needs were other advantages given for dealing 
with private suppliers. 
Disadvantages.--Cooperative processors 
reported that one of the major disadvantages 
in purchasing containers through private sup- 
pliers was related to costs. Because of small 
volumes and wide varieties of containers and 
packaging supplies handled, cost would nor- 
mally be higher than for direct purchases 
from manufacturers. 
Other disadvantages were related to service 
factors such as lack of warehouse facilities, 
lack of service, and poor delivery service. 
Joint Purchases 
Joint purchase, in which several proces- 
sors pool their orders to take advantage of 
quantity discounts or structural price advan- 
tages, was not common among fruit and 
vegetable processors. Only 11 percent of the 
cooperatives interviewed had some experi- 
ence with joint purchases which usually ac- 
counted for a small percentage of the co- 
operatives’ total container expenditures. 
The standard procedure in joint purchases 
is for one cooperative to take the lead, receive 
and pool the orders from the other associa- 
tions involved in the joint venture, and submit 
the pooled order to the manufacturer. The 
manufacturer normally ships the container 
and packaging supplies directly to the user 
associations, but invoices only the lead co- 
operative. This cooperative then invoices and 
receives payment from the other associations 
and pays the manufacturer. The lead coopera- 
tive generally receives a l-percent cash dis- 
count for its effort. In one case the lead 
cooperative was a regional marketing coop- 
erative, and in other cases it was the largest 
cooperative of the group. 
Purchases of this type were usually for 
items such as freezer cartons, berry boxes, 
poly overwrap, plastic bags, and wine cases. 
Processors were able to make certain savings 
through joint purchase, depending on volume 
purchased and the existing price structure. 
No major disadvantages were reported, al- 
though lack of communication and change of 
management were mentioned as possible prob- 
lem areas. 
Frequency of Purchase 
Processors of fruits and vegetables nor-= 
mally purchase containers on a continuing 
basis throughout the processing season. The 
standard practice is to estimate the seasonal 
volume and place an estimated order for the 
year or for the season. Delivery orders are 
then placed on a l- to 3-day basis to corre- 
spond with the processing schedule. Every 
effort is made to schedule the delivery of 
containers to correspond with the actual pack. 
This allows for the movement of containers 
directly from the truck to the processing line. 
Because of the critical timing factor, the 
supplier and the packer necessarily work 
closely together with daily or at least weekly 
contact to insure that a supply of the right 
type of containers will be on hand when 
needed. Thus, the major factor influencing the 
frequency of purchase and delivery arrange- 
ments for containers is the volume of proc= 
essing operations (table 8), 
Ut 
