16 



These serv'lcss and studias should be carefully evaluated and fully utilized 

 in the developrasnt ph&ss of the proposed chile project. 



Rayiaond L, Andarsciij Agricultural Economist at Colorado State University, 

 prepared an ecoaoaic appraisal of vegetable processing plants for Philip Lavato, 

 the RGSsIi; project coordiiaatGrj, "ujaich shcuici also prove helpful in considering 

 the pcssibtlicj? of establisalag the proposed ehile processing plant. 



Mr. Anderson aade the following significant coisBsents at the conclusion of 

 his report o 



"With the highly uncertain situation existing in the production; processing^ 

 and marketing of vegetables ^ it appears that to get a program such as this going, 

 the whole prcgrarf* will need to be underwritten by some organisation that does 

 not depend upon return^ from an investment in the very near future. 



It is highly unlikely that all of the problems of production and processing 

 could be worked out ^^-ithin a single processing season. Probably several seasons 

 would have to gc by before the operation could be a financial success. Thus a 

 pilot progrsia subsidising both production and processing would be necessary to 

 get the systeia operational, A aubsidy arrangement involves the danger of the 

 operation never being able to p-tand or,, its owus financially, so a definite cut- 

 off date would have to ba estabiishsd at the out-set to dernand efficiency as 

 soon as possible. °' 



CONGLUS IONS .^HD Pi]GOi€^NDAT IONS ■ 



The fruit packing and storage plant proposal has a chance of success on 

 econoiaic grounds. The raost apparent hasard involved is how weather conditions 

 affect the required supply of fruit. This is particularly pertinent in the 

 early years of the opsration. A successful raarketing program for the produce 

 wouldp in the long run^ require assurances of adequate supplies. 



