Processing, Storage and Selected Storage Service Costs for Flue-Cured Tobacco in Commercial Facilities, 1966-67 and Estimated 1968

Excerpts from the report: This report analyzes the costs of handling, processing, storage, and related services in commercial facilities handling flue-cured tobacco during 1966/67 and presents estimates for 1968. The results are based on accounting records of 15 firms processing and 14 firms storing flue-cured tobacco. All firms processing tobacco redried bundles for a total redried weight of 66 million pounds. Loose leaves were redried by nine firms which handled about 52.5 million pounds in this manner. Tobacco was threshed by seven firms and yielded almost 59.4 million pounds. Total green weight received by all firms for processing amounted to almost 225.9 million pounds of tobacco. Costs were developed for tobacco processing, which included receiving tobacco into the plant through packing it into hogsheads and shipping it out. These costs were for redried weight of tobacco packed as bundle, looseleaf, and strip (lamina). Strip costs included packing and shipping stems. Costs were also developed for tobacco storage and storage services. Services included in this report are innage, outage, sampling, reweighing and restoring, and reweighing while performing other services. The 1966/67 labor costs were updated to reflect minimum wage changes effective February 1, 1968, and changes in other variable costs as of January 1968