Purchases of other containers, which in- 
cluded wooden boxes, steel drums, molded pulp 
trays, plastic bags, film and other poly stock, 
ranged from less than $5,000 to $999,999 per 
association, 
Purchases of other packaging supplies, which 
normally included only labels, were reported 
separately only by those firms contacted by 
personal interview. These purchases ranged 
from about $200 to $300,000. The average 
purchase, $76,000, was probably somewhat 
lower than the total cost for labels because 
buyers of the finished goods often supplied 
their own labels. 
Relation to Total Processing 
Costs and to Sales 
The purchase of containers and packaging 
supplies represented the largest single cost 
item in the processing of fruits and vegetables. 
Fifty percent of the firms interviewed re- 
ported that container and packaging supplies 
represented from 13 to 60 percent of their 
total processing cost or an average of 36 
percent. Fifty-three percent of the firms re- 
ported container costs ranging from 30 to 39 
percent of their total processing costs. 
Total costs of container and packaging sup- 
plies represented approximately 22 percent of 
the total value of products sold bythe fruit and 
vegetable processors contacted in the study. 
A percentage distribution of all costs, in- 
cluding returns to the growers, was provided 
by a medium-size cooperative, processing 
both fruits and vegetables, with total sales of 
$6 million (table 5). Metal cans and cases 
represented 16.7 percent of the total sales, 
or about 30 percent of total processing costs 
(total cost minus returns to the grower), With 
the addition of labels, freight, and warehousing, 
total costs of container and packaging supplies 
represented about 22 percent of the value of 
sales, or 35 percent of total processing costs. 
Table 5,--Percentage distribution of all disbursements 
(including expenses and proceeds to growers for 
products) in processing fruits and vegetables by a 
medium-size processing cooperative, 1965 
Percent of 
Item total sales 
Metals cans)’ siieteheve sloie oote evel crelerenere 
GASES cao) ata a iake,ale a ein taceralatslaisioversiets a 
Labels, warehousing, and freight.....e. oie) 
General iselling 7) srerele) elisie ol sie) cuevele) eres 4,8 
Manufacturing COSt. ee eccccccccccce 26,3 
General overhead, ..cccccccsccscces 
Other raw products and field work, ..... 
SUDCOLAL feretere tee) chenetenene elelerehokerele 
Returns to growers (products) ,..secee 
Total 
Container Procurement Practices 
Cooperative fruit and vegetable processors 
were questioned about sources of container 
purchases, inventory and storage practices, 
pricing and discounts, and transportation 
methods. 
Sources of Containers 
Ninety-six percent of the cooperatives con- 
tacted purchased 92 percent of their container 
requirements directly from manufacturers 
(table 6), 
8 
Eight percent of the processors made pur- 
chases from local private suppliers such as 
local jobbers, brokers, and retail suppliers. 
These purchases accounted for an estimated 
5 percent of all container purchases, 
Three cooperatives obtained containers from 
supply cooperatives; these purchases ac- 
counted for an estimated 3 percent of the total 
volume of containers, One of these cooperatives 
reported purchases from the California Fruit 
Exchange, Sacramento, Calif., which operates 
a supply department, while the other two 
