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5. Adequate financing, both for facility and operating purposes could 

 probably be obtained more easily and under more favorable conditions by 

 large-scale operation than would be the case for a smaller unit. 



7. A plant located at Entiat would provide employment for people in Entiat, 

 and be a source of tax revenues for the community. 



Disadvantages h , s -^ 



1. Growers' attitudes and opinions regarding relative merits of various 

 sales methods may be difficult to reconcile and combine in a single 

 large-scale selling operation. ^ ' 



2. Determining the equities and investment of the individual members of 

 the two associations would involve a considerable amount of accounting 

 work, and there would be some problems in working out compromises between 

 various past operating methods of the two associations, for example, methods 

 of paying growers for their fruit. 



ALTERftJATIVE Number 3 - Partially Merge the Two Cooperatives . 



Under this alternative the two cooperatives would retain their separate 

 identities, but would jointly finance, construct, and operate one large 

 storing and packing facility. Sales would be handled separately by each 

 cooperative. 



Advantages 



1. The construction of one large modern packing and storing facility would 

 require less investment per box than a smaller facility. (See table 2.) 



2. The total investment of constructing and equipping one large facility 

 would be less than for two smaller units with the equivalent packing 

 capacity. (See table 2.) 



3. A large-scale plant would benefit from the "economies of scale"; that 

 is, the per unit operating costs t^uld be less in a larger plant than in 

 a smaller one. (See tables 4, 5 and 6.) 



4. A large-scale operation would be able to retain or attract, demand, ) 

 and afford top-flight management. v s ..^x■, 



5. By retaining the identity of the two organizations for sales purposes, 

 the individual growers would have more choice as to the method of sale for 

 their fruit. 



6. Except for packing and storage operations, each cooperative would be 

 able to follow other operating practices as they choose, such as methods 

 of grower payment and financing of grower production. 



