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Doc. 13 SURVEY OF COST OF PRODUCTION OF RAW COTTON NOVEMBER 1975 34th Plenary Meeting of the International Cotton Advisory Committee Abidjan, Ivory Coast THIS DOCUMENT AVAILABLE IN ENGLISH ONLY

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Page 1: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

Doc. 13

SURVEY OF COST OF PRODUCTION

OF RAW COTTON

NOVEMBER 1975

34th Plenary Meeting of the

International Cotton Advisory Committee

Abidjan, Ivory Coast

THIS DOCUMENT AVAILABLE IN ENGLISH ONLY

Page 2: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

SURVEY OF COST OF PRODUCTION OF RAW COTTON

Introduction

During the past three years, and since the ICAC's last survey on cotton production cost in 1972, the cost of pro-ducing cotton has significantly increased. In the after-math of the energy crisis of 1973, inflation rates and consequently the cost of most agricultural inputs, notably fertilizers, pesticides and other chemicals, have been well above their earlier levels.

This document updates the ICAC's Document 13 of the 31st Plenary Meeting (Survey of Cost of Production of Raw Cotton) and is based on replies to a questionnaire which was sent out by the Secretariat to cotton producing countries.

The Secretariat acknowledges with appreciation the co-operation of the various member and non-member countries which made this survey possible.

Page 3: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

Replies to the questionnaire received from the following countries:

Page

Angola ............... 1

Australia ............... 2 & 3

Colombia ............... 4 & 5

Ecuador ............... 6 Egypt ............... 7

El Salvador .............. 8 Greece ............... 9 Honduras ............... 10

India ............... 11, 12 & 13

Iran ............... 14

Israel ............... 15

Italy ............... 16

Ivory Coast ............. 17

Kenya ............... 18

Malawi ............... 19 Mexico ............... 20, 21 & 22

Morocco ............... 23 Nicaragua ............... 24 Pakistan ............... 25 Paraguay ............... 26 Spain ............... 27 Sudan ............... 28 Syria ............... 29 Turkey ............... 30 & 31

United States ............. 32, 33, 34 & 35

Upper Volta ............. 36

Page 4: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

CountryANGOLA

Crop year 1974/75

Estimated cost of producing a hectare of cotton

In major producing zones

National Average Average average producer ii producer j

600 1,750

US $ per hectare

Item

Yield used (kilos per hectare) . (Seed cotton)

On farm direct costs

Preharvesting: Labor ............ Power and equipment . Seed Fertilizer .......... Herbicides .......... Insecticides and fungicides Defoliants and other chemicals Irrigation Custom or contract work Other (specify)

Subtotal .........

Harvesting: Labor ............ Power and equipment ..... Custom or contract work Other (specify)

Subtotal .........

Off farm direct costs

Transportation to gin ....... Ginning (including bagging and ties) Other (specify)

Subtotal

Total direct costs ........

Overhead costs:

Management and administration Land cost (typical rental value) Other (specify)

TOTAL COSTS ......

1/ Semi-arid zone. 2/ Sub-humid zone.

73.30 135.50 113.30 143.96

5.00 4.00

58.28 85.92

249.88 369.38

54.00 104.00

54.00 104.00

7.20 28.00 18.24 53.20

25.44 81.20

87.32 128.48

10.53 21.54

427. 17 704.60

Page 5: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

Country AUSTRALIA

Crop year 1973/74

Estimated cost of producing a hectare of cotton

Z

In major producing zones 1/

National Average Above average average producer producer

1,057

US$perhectare

Item

Yield used (kilos per hectare) .

Onfarmdirectcosts

Preharvesting Labor ............ Power and equipment . Seed Fertilizer .......... Herbicides .......... Insecticides and fungicides Defoliants and other chemicals Irrigation Custom or contract work Other (specify)

Subtotal .........

Harvesting: Labor ............ Power and equipment ..... Custom or contract work Other (specify)

Subtotal .........

Offfarmdirectcosts

Transportation to gin ....... Ginning (including bagging and ties) Other (specify)

Subtotal

Total direct costs ........

Overheadcosts:

Management and administration Land cost (typical rental value) Other (specify)

140.00 220.00 16.00 27.00 27. 00

140- 00 20.00 48.00 8.00

646.00

93.00 77.00

170.00

16.00 140.00

156.00

972-00

97.00

TOTAL COSTS ...... 1,069.00

1/ In the State of New South Wales

Page 6: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

3

Country AUSTRALIA

Crop year 1973/74

Estimated cost of producing a hectare of cotton

Item In major producing zones LI National Average Above average average I producer I producer

Yield used (kilos per hectare) .

Onfarmdirectcosts

Preharvesting: Labor ............ Power and equipment . Seed Fertilizer .......... Herbicides .......... Insecticides and fungicides Defoliants and other chemicals Irrigation Custom or contract work Other (specify) Fuel

Subtotal .........

Harvesting: Labor ............ Power and equipment; ..... Custom or contract work Other (specify) Fuel

Subtotal .........

Offfarmdirectcosts

Transportation to gin ....... Ginning (including bagging and ties) Other (specify) Storage,marketing administrationatginnery

Subtotal

Total direct costs ........

Overheadcosts:

Management and administration Land cost (typical rental value) Other (specify) Insurance

Rates Sundry Depreciation

TOTAL COSTS.

1/ In the State of Queensland

I 1,000 I 1,300

US$perhectare

17.00 50.00 8.00

23.00 13.00

112.00 7.00

33.00 33.00 17.00

313.00

10.00 28.00

5.00

43.00

32.00 178.00

154.00 364.00

720.00

100.00

14.00 14.00 8.00

204.00 1. 060.00

Page 7: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

In major producing zones

Average Above average producer producer

1,500 1,800

US $ per hectare

6.33 6.33 47.16 66.66 23.33 23.33

193.50 193.50

2.00 16.66 32.63 32.63 20.66 20.66 40.63 40.63

366.24 400.40

4

Country Colombia

Crop year 1974/75

Estimated cost of producing a hectare of cotton 1/

Item National average

Yield used (kilos per hectare) . . • • 1,650

On farm direct costs

Preharvesting: - - Power and equipment --

6.33

Labor ................

56. 91 23.33

Fertilizer ............ Herbicides ............ Insecticides and fungicides 193.50

Seed ................

Defoliants and other chemicals 9• 33

Custom or contract work . . . 32. 63 Other (specify) Stalk destruction 20.66 Land preparation - interest 40.63

383.32

Harvesting:

Irrigation .............

60.53

Subtotal ..........

Power and equipment -- Custom or contract work . . - Other (specify) --

60.53

Labor ..............

Off farm direct costs

Subtotal ...........

11.83 Ginning (including bagging and ties) 30.26 Other (specify) Loans, insurance.

unions 18.33 60. 42

Total direct costs ........

Transportation to gin ..........

Overhead costs:

Subtotal ...........

Management and administration . . 20.43 Land cost (typical rental value) . . 57.33 Other (specify) Technical assistance

interest 61.20

643.23 TOTAL COSTS .......

60.53 60.53

60.53 60.53

11.83 11.83 30.26 30.26

18.33 18.33 60.42 60.42

20.43 20.43 48.00 66.66

61.20 61.20

616.82 669.64

1/ Data is for coastal crop - however, interior crop cost is comparable to "Above average producer".

Based on reply received March 1975.

Page 8: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

CountryColombia

Crop year 1974/75

5

Item

Yield used (kilos per hectare) .

On farm direct costs

Preharves ting Labor ............ Power and equipment . Seed Fertilizer .......... Herbicides .......... Insecticides and fungicides Defoliants and other chemicals Irrigation Custom or contract work . Other (specify) Roads, fences.

drainage Subtotal .........

Harvesting Labor ............ Power and equipment * Custom or contract work Other (specify) Bagging and ties

Subtotal ......... (*On farm transportation)

Off farm direct costs

Transportation to gin ....... Ginning Other (specify)

Subtotal

Total direct costs ........

Overhead costs:

Management and administration Land cost (typical rental value) Other (specify) Technical assistance, Unions, insurance, interest, etc.

TOTAL COSTS ......

Estimated cost of producing a hectare of cotton

In major producing zones

National Average Above average average producer A..! producer

1.419

US $ per hectare

5.00 108.67

6.50 55.00 18.47

116.80

33.67

6.00 350.11

60. 13 13.33

8.33

81.79

7.67 25.08

32.75

464.65

16.67 66.67

41.34

589.33

1/ Coastal region, including Meta. Based on reply received June 1975,

Page 9: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

Country Ecuador

Crop year 1974

Estimated cost of producing a hectare of cotton

Item

Direct costs: Labor ........ Seed ........ Fertilizer ...... Herbicides Insecticides ..... Machinery - insecticide application soil preparation .

Transport and materials (bags) .

Indirect costs .....

Irrigated

289.00 8.00

98.00

119.00

56.00

1Z.00

114.00

Non-irrigated

US $ per hectare

269.00 8.00

98.00 24.00

119.00

39.00 40.00

12. 00

119.00

728. 00 TOTAL COSTS . . . I 696.00

Page 10: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

7

Country Egypt

Crop year 1973/74

Item Estimated cost of producing a hectare of cotton

US $ per hectare

Workers wages and equipment . . 194.2 5. 9

Fertilizer ............. 72.9 . Planting seed ............

157. 8

Rents ............ 9 Pesticides ............. 60.

Ginning fee and relevant transport . 42.2 Management and other expenses . 12. 1

TOTAL COSTS 546.0

Above costs may be distributed in accordance with the type of agricul- tural procedure, as follow:

30. 4 Planting seed and relevant procedure 12.1

..

Land taxes after sowing, including irrigation, fertilizer, etc. . . . 1 .39. 3

Soil preparation ........... .

Pesticides and pest control . . . 79.1 Picking and soil cleaning . . . 6o.8

157.9 Ginning and relevant transport . . . 42.2 Rents ............. .

Management and other expenses . 24. 2

TOTAL COSTS 546.0

Page 11: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

8

Country EL SALVADOR

Crop year 1974/75

Estimated cost of producing a hectare of cotton

Item In major producing zones

National Average Above average average producer producer

Yield used (kilos per hectare) . . .

US $ per hectare On farm direct costs

Preharvesting: 96. 47 96.47 96.47

Power and equipment . . . 142.33 113.86 170.80 5. 14 5. 14 5.14

122.28 97.82 146.75 - - -- --

Insecticides and fungicides . 313.08 250.05 375.70 Defoliants and other chemicals - - - - - -

-- - - - - Custom or contract work . . -- -- -- Other (specify) Stalk destruction 5.70 5.70 5.70

685.00 569.04 800.56

Harvesting: 91.98 73.58 110.38

Power and equipment .....

Labor ..............

Custom or contract work . Other (specify) Crop super- 9.97 7.98 11.96

vision 101.95 81.56 122.34

Seed ................ Fertilizer .............. Herbicides ...............

Off farm direct costs

Irrigation .............

in 20. 00 16.00 24.00 Ginning (including and ties) 38.50 30.80 46.20

Subtotal .............

Other (specify)

58. 50 46.80 70.20

Labor .................

Subtotal .............

Total direct costs ........

Transportation to gin ............

Overhead costs:

Subtotal .............

Management and administration . . 71.52 71.52 71.52 Land cost (typical rental value) . . 100. 00 100.00 100.00 Other (specify) Interest on cost before and after harvest 47.22

1, 064. 19

39.04

907.96

55.37

1, 219.99 TOTAL COSTS .......

Page 12: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

CountryGREECE

Crop year 1974

Estimated cost of producing a hectare of cotton

Item In major producing zones

Average Above average National average producer producer

Yield used (kilos per hectare) . . 2,500

(Seed cotton) US $ per hectare

On farm direct costs

Preharvesting: 221.80

Power and equipment . . . 145.55 Labor .............

70 36.20

Seed .............24.

21.30 Fertilizer ............

Insecticides and fungicides . 22.30

.

Herbicides ............

Defoliants and other chemicals -- Irrigation ......... 151. 70 Custom or contract work . . . --

Other (specify)

..

623. 55

Harvesting: 333.30

Power and eent quipm 42.00 Custom or contract work . Other (specify) Transportation

Labor .............

of workers 50.00 425.30

Subtotal ...........

Off farm direct costs

Transportation to gin ....... Ginning (including bagging and ties) Other (specify)

Subtotal ..........

Subtotal

Total direct costs ........

Overhead costs:

Management and administration Land cost (typical rental value) . . 266.70 Other (specify) Local tax 35.00

Interest on operating capital 27.30 22.30 2% harvesting and preharvesting costs

TOTAL COSTS ....... 1,400. 15

Page 13: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

10

Country HONDURAS

Crop year 1974/75

Item

Yield used (kilos per hectare) .

Estimated cost of producing a hectare of cotton

In major producing zones

National Average Above average average producer producer

1,945

US $ per hectare On farm direct costs

Preharvesting: Labor ............ Power and equipment . Seed Fertilizer .......... Herbicides .......... Insecticides and fungicides Defoliants and other chemicals Irrigation Custom or contract work Other (specify) Stalk destruction Sacks and hemp cord for picking

Subtotal .........

Harvesting: Labor ............ Power and equipment ..... Custom or contract work . Other (specify)

Subtotal .........

Off farm direct costs

Transportation to gin ....... Ginning (including bagging and ties) Other (specify)

Subtotal

Total direct costs ........

Overhead costs:

Management and administration Land cost (typical rental value) Other (specify)

TOTAL COSTS ......

50.71 71.42 8.57

85.71

142.85

58.56 7.14 9.99

434.95

84.28

84.28

42.85 72.85

115.70

53.56

42.85

731.34

Page 14: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

11

Country INDIA

Crop year 1973/74

Estimated cost of producing a hectare of cotton

Item Irrigated Rairifed Rainfed

MCU-5 H-.4 Laxmi

Yield used (kilos per hectare) . . . . 2,282 1,096 I 340 _ (Seed cotton)

US $perhectare Onfarmdirectcosts

Preharves ting: 163.18 34.08 30.85

Power and equipment . . . - - - - - - 2.97 28.79 5.42

12 9. 62 51.90 10.97 Seed ................. Fertilizer .............

- - - - - - Insecticides and fungicides Defoliants and other chemicals

20.78 5.16

2.97 -- --

Labor ...............

Custom or contract work . . -- -- -- Other (specify)

.

446.30 135.75 52.40

Irrigation ...........

Subtotal .........

Harvesting:

Herbicides ............147.56

34.86 20.66 9.04 Power and equipment - - - - - - Custom or contract work . . -- -- -- Other (specify)

..

34.86 20.66 9.04

Labor ..............

Off farm direct costs

5. 68 1.81 . 77 Transportation to gin .........Ginning (including bagging and ties) 58.09 30.98 8.39

Subtotal ...........

Other (specify)

63.77 32.79 9.16

544. 93 189. 00 70. 60

Subtotal ..........

Overhead costs:

Management and administration N. A. N. A. N. A.

Total direct costs ..........

Land cost (typical rental value) - - - - - - Other (specify) Landrevenue, 1.42 .64 .64 Interestonfixedandoperational 77. 07 25.43 11. 10 capital

TOTAL COSTS ....... 623.42 215.07 82.34

Note: Though there are different producing zones, currently no zone-wide cost assessment has been undertaken. The report from the comprehensive cost study schemes, being implemented during the current year,is expected only during the ensuing years.

Page 15: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

12 Country India

Crop year 1973/74

Average cost of cultivation of cotton

Item Maharashtra - Rainfed

L.147 MCU-5 H-4

Yield - (kg. /ha.) 547 848 1, 096 seed cotton

Uss Labour 33.69 39.50 52.41

Seed 2.32 2.84 28.79

Manure 13.68 22.98 23.37

Fertilizer 7.75 34.08 28.53

Pesticides 7.62 19.24 20.78

Irrigation - - - - -

Land revenue • • 65 • 65 .65

Interest on operational and fixed capital . 10.72 19.62 25.43

Marketing .77 1.42 1.81

TOTAL COSTS . 77.20 140.33 181.77

Page 16: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

Average cost of cultivation of cotton

Tamil Nadu Andhra Pradesh Karnataka

Irrigated MCU-5

Rainfed Hampi

Rainfed Jayadhar

2,282 329 348

198.04

2.97

46.22

83.40

147.56

2.97

1.42

US$ 28.01

5.42

5.80

9.30

5.03

2.58

38.34

2.45

10.72

9.68

10.72

77

Country India

Crop year1973/74

13

Item

Yield - (kg. /ha.) seed cotton

Labour ......

Seed

Manure

Fertilizer .

Pesticides . .

Irrigation . .

Land revenue

Interest on operational and fixed capital.

Marketing . .

TOTAL COSTS

77.07

9.17

11.88

5.68

65

90

565.33

65.96

85.46

Page 17: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

104.47

119,40

149.25

7.46 22.44 8.95

38.85

432.86

22.38 119,40

574.64

8.95 33.00 8.95

50.90

474.76

29.85 119.40

624.01

11.19 49.50 10.40

71.09

614.34

29.85

119.40

Country IRAN

Crop year 1974/75

14

Estimated cost of producing a hectare of cotton

In major producing zones

Average Above average National average producer producer

1,700 2,000 2.500 --3.000

US $ per hectare

141.79 134.32 134.32 22.38 29.85 37.31 5.97 5.97 5.97

29.85 29.85 37,31

44.78 59.70 104.47

44.77 44.77 74.62

289.54 304.46 394.00

104,47 119.40 149,25

Item

Yield used (kilos per hectare) . (Seed cotton)

On farm direct costs

Preharvesting: Labor ............ Power and equipment . Seed Fertilizer .......... Herbicides .......... Insecticides and fungicides Defoliants and other chemicals Irrigation Custom or contract work Other (specify)

Subtotal .........

Harvesting: Labor ............ Power and equipment ..... Custom or contract work Other (specify)

Subtotal .........

Off farm direct costs

Transportation to gin ....... Ginning (including bagging and ties) Other (specify)

Subtotal

Total direct costs ........

Overhead costs:

Management and administration Land cost (typical rental value) Other (specify)

TOTAL COSTS ......

Page 18: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

15

CountryISRAEL

Crop year 1974/75

Item

Yield used (kilos per hectare) .

Estimated cost of producing a hectare of cotton

In major producing zones

National Average Above average average producer producer

4,000

US $ per hectare On farm direct costs

Preharvesting: Labor ............ Power and equipment . Seed Fertilizer .......... Herbicides .......... Insecticides and fungicides Defoliants and other chemicals Irrigation Custom or contract work Other (specify)

Subtotal .........

Harvesting: Labor ............ Power and equipment ..... Custom or contract work Other (specify)

Subtotal .........

Off farm direct costs

Transportation to gin ....... Ginning (including bagging and ties) Other (specify)

Subtotal

Total direct costs ........

Overhead costs:

Management and administration Land cost (typical rental value) Other (specify) Insurance

Research Depreciation -irrigation equipment

Marketing TOTAL COSTS

97.00 48.00 7.00

37.00 25.00 50.00 8.00

58.00 32.00

362.00

20.00 65.00

85.00

20.00 80.00

100.00

547.00

50.00 10.00 8.00 4.00

85.00 40.00

744.00

Page 19: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

16

Country ITALY

Crop year 1973/74

Item

Yield used (kilos per hectare) .

Estimated cost of producing a hectare of cotton

In major producing zones

National Average Above average average producer producer

700

US $ per hectare On farm direct costs

Preharvesting: Labor 101.26 Power and equipment 63.29 Seed 47.47 Fertilizer 99.68 Herbicides 12.66 Insecticides and fungicides - - Defoliants and other chemicals -- Irrigation - - Custom or contract work . . . -- Other (specify) --

Subtotal 324.36

Harvesting: Labor 142.40 Power and equipment -- Custom or contract work . . . -- Other (specify) 5.54

147.94 Subtotal

Off farm direct costs

Transportation to gin 31.64 Ginning (including bagging and ties) 7.91 Other (specify)

3955 Subtotal

Total direct costs 511.85

Overhead costs:

Management and administration . . 31.64 Land cost (typical rental value) . . 79.11 Other (specify)

622.60 TOTAL COSTS

Page 20: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

CountryIVORY COAST

Crop year 1974/75

17

Item

Yield used (kilos per hectare) .

On farm direct costs

Preharves ting: Labor ............ Power and equipment . Seed Fertilizer .......... Herbicides .......... Insecticides and fungicides Defoliants and other chemicals Irrigation Custom or contract work Other (specify)

Subtotal .........

Harvesting: Labor ............ Power and equipment ..... Custom or contract work Other (specify) Shipping

Stalk destruction Subtotal .........

Off farm direct costs

Transportation to gin ...... Ginning (including bagging and ties) Other (specify) Purchasing costs

Subtotal

Total direct costs ........

Overhead costs:

Management and administration Land cost (typical rental value) Other (specify) Supervision

Estimated cost of producing a hectare of cotton

In major producing zones

National Average Above average average producer producer

1,000

US $ per hectare

101. 00 5.00 1.00

68.00

70.00

244.00

45.00

5.00 11.00 61.00

24. 00 57.00 7.00

88.00

55.00

TOTAL COSTS ...... I 448.00

Page 21: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

18

Country KENYA

Crop year 1974/75

Estimated cost of DroducinL, a hectare of cotton

Item In major producing zones

National

Average Above average average producer producer

Yield used (kilos per hectare) 800

1,000 2,200

On farm direct costs

Preharves ting: 130.85

Power and equipment . 51.82 1.75

Labor ..............

- - 5. 60

Insecticides and fungicides 38. 66 Defoliants and other chemicals 6.86

210. 08 Custom or contract work . . -- Other (specify) Handling charges

Herbicides .............

at 401= per ton Seed Cotton 5.60 451.22

Harvesting: 14.01

Seed ...............

Power and equipment --

Fertilizer ............

Custom or contract work . . - - Other (specify) --

Subtotal .........

Irrigation ...........

Off farm direct costs

--

Subtotal ...........

Ginning (including bagging and ties) 78.91

Labor ..............

Other (specify)

Subtotal

Total direct costs ........

Transportation to gin .........

Overhead costs:

Management and administration . . 6.80 Land cost (typical rental value) . Other (specify)

TOTAL COSTS ......

US $ per hectare

Page 22: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

19

CountryMALAWI

Crop year 1974/75

Item

Yield used (kilos per hectare) .

Estimated cost of producing a hectare of cotton

In major producing zones

National Average Above average average producer producer

900 900 2,500

US $ per hectare On farm direct costs

Preharvesting Labor ............ Power and equipment . Seed Fertilizer .......... Herbicides .......... Insecticides and fungicides Defoliants and other chemicals Irrigation Custom or contract work Other (specify) Knapsack

sprayer Subtotal ..........

Harvesting: Labor ............ Power and equipment ..... Custom or contract work Other (specify)

Subtotal .........

Off farm direct costs

Transportation to gin ....... Ginning (including bagging and ties) Other (specify) Marketing

Subtotal

Total direct costs ........

Overhead costs:

Management and administration Land cost (typical rental value) Other (specify)

17.89

11.87 26.30

2.29

26.49

2.47

6.87

10.36

28.80

22.48

62.49

9.52

26.47

TOTAL COSTS ......

Page 23: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

Country Mexico

Crop year 1974

20

Estimated cost of producing a hectare of cotton 1/

Delicias El Fuerte Navojoa C. Obregon Chihuahua Sinaloa Sonora Sonora

Item

Labor .......

Machinery and equipment . .

Seed Fertilizer ..... Herbicides ..... Insecticides and fungicides .....

Defoliantes .....

Ginning and packing

Applications of para-siticides and fertilizer

Water .......

Interest ......

Land

Taxes, etc. .

TOTAL COSTS

US $ per hectare

262.86 I 274.71

77.04

80.91

12.49

12.48

44.96

51.58 3.55

16.97

10.23 6.24

97.32

19.87

22.45

13.46

60.00

28.87

678.12

268.17

82.08

14.31 '9.09

108.28 4.01

82.97

42.29

10.35

22. 24

40.00

78.38

822.17

27.91

18.27

8.46

43.48

57.97

573.96

232.23

60.20

14.58 36.20 3.81

14.04

24.22

15.84

11.50

43.76

31.62

488.00

1/ Gravity irrigated.

Page 24: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

71.96

12.24 38.84 11.28

66.93 6.12

163.62

48.74

67.96

17.37

40.00

38.33

843.71

201.54

68.25

11.07 58.04 10.90

55.27

44.85

135.78

16. 77

40.00

39.15

780.70

US $ per hectare

I 260.32

21

Country Mexico (continued)

Crop year 1974

Estimated cost of producing a hectare of cotton 1/ Item Sto. ]Domingo Hermosillo Caborca

Baja California Sonora Sonora

283.31

Machinery and

Labor ........

equipment . . . . 99.00

13.21 Fertilizer 55.94 Herbicides 7.11 Insecticides and

Seed ..........

fungicides . . . . 34.34 Defoliants - Ginning and packing 130.54

Applications of para- siticides andfertilizer 25.76

134.52 Water ........

Interest 17.14

41.38 Land .........

Taxes, etc. . . . . 61.18

TOTAL COSTS. . 903.43

1/ Pump irrigated.

Page 25: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

69.87

16.74 49.87

57.06

84.76

72.36

12.68 56.80

82.61

93.30

44.14

11.83 23.45

54.42

66.68

12.41 35.37

1.00

63.98

20. 04

115.44

17.88

40.00

66.65

785.64

30.75

9.09

16.64

40.00

60.96

729.00

6.72

107. 12

13.31

40.00

54.48

516.78

22.07

5.66

16.75

40.00

45.21

571.12

Country Mexico (Continued)

Crop year 1974

22

Item

Estimated cost of producing a hectare of cotton

Mexicali Comarca Juarez Baja California Laguna Chihuahua

Irrigation Irrigation Irrigation

Pump f Gravity1 Pump [Gravity Pump Gravity

US $ Der hectare

271. 771206.56 1247.33 I 253.811161.31 I 261.99

77.90 67.32

17.73 7.86 38.67 35.68 - 2.60

78. 551 58. 97

93. 901111.03

61.07 55.97

85.35 30.22

16.95 13.59

40.00 40.00

20.62 25.55

802.51 655.35

Labor

Machinery and equipment.

Seed Fertilizer ..... Herbicides ..... Insecticides and

fungicides. Defoliants .....

Ginning and packing

Applications of para-siticides and fertilizer

Water

Interest ......

Land

Taxes, etc.....

TOTAL COSTS

Page 26: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

Country MOROCCO

Crop year 1974

23

Estimated cost of producing a hectare of cotton

In major producing zones

National Average Above average average producer producer

1,400 1,400 2,000

US$perhectare

75.00 97.50 27.50 27.50 6.00 9.00

37.50 37.50

77.50 87.50

50.00 62.50

273.50 321.50

114.00 160.00

114.00 160.00

4.00 5.00 175.00 250.00

11.00 11.00 62.50 62.50

640.00 810.00

Item

Yield used (kilos per hectare) .

Onfarmdirectcosts

Preharvesting: Labor ............ Power and equipment . Seed Fertilizer .......... Herbicides .......... Insecticides and fungicides Defoliants and other chemicals Irrigation Custom or contract work Other (specify)

Subtotal .........

Harvesting: Labor ............ Power and equipment ..... Custom or contract work Other (specify)

Subtotal .........

Offfarmdirectcosts

Transportation to gin ....... Ginning (including in and ties) Other (specify)

Subtotal

Total direct costs ........

Overheadcosts:

Management and administration Land cost (typical rental value) Other (specify)

TOTAL COSTS ......

Page 27: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

CountryNICARAGUA

Crop year 1974/75

Estimated cost of t)roducine a hectare of cotton

Z4

Item National average

Yield used (kilos per hectare) . . . . 1,109.41

Onfarmdirectcosts

Preharves ting: 95.70

Power and equipment 56.14 Labor .............177.86

6.57 92. 86

Seed ..............

00 Fertilizer ............ Herbicides ........... 9 Insecticides and fungicides

.

Defoliants and other chemicals -- -- Irrigation ..........

Custom or contract work . . -- Other (specify) Hiredlabour. insecticide appli cation and other costs 51.43

489.56

Harvesting: 107.29

Power and equipment -- Custom or contract work . . . --

Other (specify)

107.29

Subtotal ...........

Offfarmdirectcosts

7. 14

Labor ..............

Ginning (including bagging and ties) 66. 00 Transportation to gin .........

Other (specify) Penalty, transport to

.

port,loadingandclassification 33.57 106. 71

Subtotal ...........

Subtotal ........

Total direct costs ........

Overheadcosts:

Management and administration . .

..

11.29 Land cost (typical rental value) . . 102.29 Other (specify) Tax,bankinterest, andownedcapital 45.57

862.71 TOTAL COSTS .......

In major producing zones

Average Above average producera/ I producer b/

I 1,204.51 I 1,299.60

US$perhectare

89.28 87.85 59.72 61.71 6.57 6.29

98.29 90.71 9.00 14.29

177.86 199.57

47.00 58.58 487.72 519.00

116.57 122.71

116.57 122.71

5.71 7.57 71.71 75.57

37.00 39.43 114.42 122.57

11.43 12.00 107.57 95.29

48.00 48.29

885.71 919.86

a/ Average producer - 50 - 300 manzanas in best area of country. b/ Above average producer - over 300 manzanas in best producing area. Note: 1 hectare = 1.431 manzanas.

Page 28: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

Z5

CountryPAKISTAN

Crop year 1974/75

Estimated cost of producing a hectare of cotton

Item National average

In major producing zones

Average Above average Droducer I producer

Yield used (kilos per hectare) .

US $ per hectare On farm direct costs

Preharvesting: Labor ............ Power and equipment . Seed Fertilizer .......... Herbicides .......... Insecticides and fungicides Defoliants and other chemicals Irrigation Custom or contract work Other (specify)

Subtotal .........

Harvesting: Labor ............ Power and equipment ..... Custom or contract work . Other (specify)

Subtotal .........

Off farm direct costs

Transportation to gin ....... Ginning (including bagging and ties) Other (specify)

Subtotal

Total direct costs ........

Overhead costs:

Management and administration Land cost (typical rental value) Other (specify) Bank interest

15.35 52.78 2.25

28.37

5.26

4.00

108.01

18.23

18.23

2.50 14.48

16.98

13.89 78.63 10.06

TOTAL COSTS ...... 245.80

Page 29: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

On farm direct costs

Preharvesting: 38.00

Power and equipment 25.50 6.50 - -

-- Insecticides and fungicides Defoliants and other chemicals --

Labor ...............

-- Custom or contract work . . . -- Other (specify) Stalk destruction 6.00

111.50

Harvesting: 95.00

Power and equipment - - Custom or contract work . . . 3.00

Seed ............... Fertilizer ............35.50 Herbicides .............

Other (specify) --

98. 00

Irrigation ............

Off farm direct costs

in 9. 50

Subtotal ...........

Ginning (including and ties) --

Labor ...............

Other (specify) --

9.50

Subtotal ............

Total direct costs ........

Transportation to gin ..........

Overhead costs:

Subtotal ............

Management and administration . Land cost (typical rental value) . . 6.00 Other (specify) 10% on operating

capital

225.00 TOTAL COSTS .......

US $ per hectare

29.23 19.60 5.00

27.30

4.60

85.73

73.10

2.30

75.40

7.30

7.30

168.43

4.60

16.84

189.87

Z6

CountryPARAGUAY

Crop year 1974/75

Estimated cost of producing a hectare of cotton

Item National average

Yield used (kilos per hectare) . . • 950

In major producing zones

Average Above average oroducer I oroducer

Page 30: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

Country SPAIN

Crop year 1974/75

27

Estimated cost of producing a hectare of cotton

In major producing zones jj

National Average Above average average producer producer

650 750 1,200

US $ per hectare

Item

Yield used (kilos per hectare) .

On farm direct costs

Preharvesting: Labor ............ Power and equipment . Seed Fertilizer .......... Herbicides .......... Insecticides and fungicides Defoliants and other chemicals Irrigation Custom or contract work Other (specify)

Subtotal .........

Harvesting Labor ............ Power and equipment ..... Custom or contract work Other (specify)

Subtotal .........

Off farm direct costs

Transportation to gin ....... Ginning (including bagging and ties) Other (specify)

Subtotal

Total direct costs ........

Overhead costs:

Management and administration Land cost (typical rental value) Other (specify)

109.00

112.00

120.00

53.00

55.00

65.00

23.00

23.00

23.00

142. 00

148.00

160.00

24.00

24.00

32.00

98.00

102.00

110.00

27. 00

27.00

27.00

174.00

180.00

190.00

650.00

671.00

727. 00

262.00

300.00

420.00

262.00

300.00

420.00

11.00

13.00

16.00

60.00

70.00

90.00

71.00

83.00

106.00

73.00

76.00

83.00

220.00

240.00

280.00

TOTAL COSTS .......1,276.00

1,370.00

1,616.00

1/ Andalucia

Page 31: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

Country SUDAN

Crop year 1974/75

Estimated cost of producing a hectare of cotton

28

Item National average

In major producing zones 1/

Average Above average oroducer I oroducer

Yield used (kilos per hectare) . 536

US$_ per hectare

On_ farm direct costs

Preharvesting: Labor ............ Power and equipment . Seed Fertilizer .......... Herbicides (Weeding) ..... Insecticides and fungicides Defoliants and other chemicals Irrigation Custom or contract work Other (specify)

Subtotal .........

Harvesting: Labor ........ Power and equipment Custom or contract work Other (specify)

Subtotal .........

Offfarmdirectcosts

Transportation to gin ....... Ginning (including bagging and ties) Other (specify) Transport to Port Sudan, sacks, stores, loading and off-loading I Marketing Insurance and auditing

Subtotal ......... Overheadcosts:

Management and administration Land cost (typical rental value) Other (specify) Tax Researchandexperiments

TOTAL COSTS ......

21.09 15.26 3.90

20.54 23.97 68.48

14.38

167.62

94.55

2.05

96.60

26.51 27.21

15.06 85

12.07

81.70

35.06 68

25.68 26.24

433.58

1/ Gezira is an average producer. (a) Planting starts in the Gezira Scheme on July 25th. (b) Harvest commences mid January through April.

Page 32: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

29

CountrySYRIA

Crop year 1974/75

Estimated cost of producing a hectare of cotton

Item

Yield used (kilos per hectare) .

National average

Z.000

In major producing zones

Average Above average producer I producer

On farm direct costs

Preharvesting 157.92

Power and equipment . 180.29 15. 79

140. 29

Herbicides ..........

Seed ...............

Insecticides and fungicides 7.90

Defoliants and other chemicals 39. 48

Fertilizer ............

Custom or contract work Other (specify) Sacks and threads Z6.32

Other 2.63 Subtotal .......... 570.62

Labor ..............

Harvesting: 78.96

Power and equipment ..... Custom or contract work .

Irrigation ............

Other (specify) Warehousing 5.26

84.22

Labor ...............

Off farm direct costs

19.74

Subtotal ............

Ginning (including bagging and ties) 37. 77 Other (specify)

57.51

Transportation to gin ..........

712.35

Subtotal ..........

Total direct costs .........

Overhead costs:

Management and administration Land cost (typical rental value) . . 144.76 Other (specify) Interest on capital 26.32

883. 43 TOTAL COSTS .......

US $ per hectare

Page 33: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

Item

CountryTURKEY

Crop year 1974

Estimated cost of producing a hectare of cotton

Region of In major producing zones

çukurova Average Above average average I producer I producer

30

Yield used (kilos per hectare) .

On farm direct costs

Preharvesting: 38.21

Power and equipment . 44.28 9.82

40. 53 --

Labor ...............

Insecticides and fungicides 85. 71 Defoliants and other chemicals --

Fertilizer .............

26. 46

Herbicides .............

Custom or contract work . . . 53.57 Other (specify) 14.28

312.86

Seed ...............

Subtotal ..........

Harvesting 103.71

Power and equipment 28.57 Custom or contract work . . 12.00

Irrigation ............

Other (specify) 21.43

165.71

Off farm direct costs

4.50 Ginning (including bagging and ties) 187. 50

Labor ................

Other (specify)

192.00

Subtotal .............

Total direct costs ........

Transportation to gin .............

Overhead costs:

Subtotal ............

Management and administration . . 88.57 Land cost (typical rental value) . . 178. 57 Other (specify) 77.86

1,015.57 TOTAL COSTS .......

US $ per hectare

Page 34: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

31

CountryTURKEY

Crop year 1974

Item

Yield used (kilos per hectare) .

Estimated cost of producing a hectare of cotton

Region of In major producing zones

Ege Average Above average average producer producer

891

US $ per hectare On farm direct costs

Preharvesting: Labor ............ Power and equipment Seed Fertilizer .......... Herbicides .......... Insecticides and fungicides Defoliants and other chemicals Irrigation Custom or contract work Other (specify)

Subtotal .........

Harvesting: Labor ............ Power and equipment ..... Custom or contract work . Other (specify)

Subtotal .........

Off farm direct costs

Transportation to gin ....... Ginning (including bagging and ties) Other (specify)

Subtotal

Total direct costs ........

Overhead costs:

Management and administration Land cost (typical rental value) Other (specify)

69.44 12.50 45.00 22.22 17.50

44.44

131.94

343.04

173.61

17.36

190.97

3.47 59.37 2.62

65.46

599.47

38.65 208.33

73.05

TOTAL COSTS .......919.50

Page 35: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

Southeast Average

Above average producer producer •/

453

667

US$perhectare

34.82 30.05 133.48 97.93 15.79 8.10 95.43 84.80 36.03 34.96 81.42 54.02 8.20 6.80 .09 0

10.11 6.72

415.37 323.38

16.38 14.13 57.20' 41.98 22.49 14.92

96.07 71.03

11.96 14.70 63.16 93.03

14.97 11.91 90.09 119.64

601.53 514.05

5.93 6.92 115.69 104.65

38.84 31. 13

761.99 656.75

Country UNITED STATES

Crop year 19 74!!

Estimated cost of producing a hectare of cotton

32

Item National average

Yield used (kilos per hectare) . . . . 526

Onfarmdirectcosts

Preharves ting: 42. 80

Power and equipment; • 62.07 18.75 43. 39 19. 03

Insecticides and fungicides 23.82

Defoliants and other chemicals 6.18 33. 88

Custom or contract work . 13. 51

Other (specify)

263. 43

Labor ..............

Harvesting: 14.26

Power and equipment 67. 23

Custom or contract work . . 22.04

Seed ............... Fertilizer ............

Other (specify)

103.53

Subtotal ...........

Herbicides .............

Off farm direct costs

Irrigation ...........

11. 29

Labor ...............

Ginning (including bagging and ties) 75. 27

Other (specify) Interest, operating

Subtotal ...........

capital 11.74 98. 30

465. 26

Transportation to gin ..........

Overheadcosts:

Subtotal ..........

Management; and administration 10.87

Total direct costs .........

Land cost (typical rental value) . . 126.81

Other (specify) General farm over- head 3/ 39.04

641. 98 TOTAL COSTS .......

- Footnotes given on pages 34 and 35.

Page 36: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

33

UNITED STATES Country (continued)

Crop year 19741/

Estimated cost of producing a hectare of cotton

Item Mississippi Delta National Average Above average average I producer I Droducer

Yield used (kilos per hectare) .

US $perhectare Onfarmdirectcosts

Preharvesting: 42.80 43.17 42.43

Power and equipment . . . 62.07 78.45 69.44 18.75 13.94 14.83 43. 39 39.44 36.00 19.03 36.25 34.25

Labor ............. .

Insecticides and fungicides . 23.82 34.40 28. 29

Seed ............. ..

Defoliants and other chemicals 6. 18 7.88 17. 22

Fertilizer ........... .. Herbicides ........... ..

33. 88 .22 0 Custom or contract work . . 13. 51 20.41 29. 65 Other (specify)

263.43 274.16 272.11

Harvesting: 14.26 16.80 16.51

Power and equipment 67. 23 92. 12 81. 52 Custom or contract work . . Z2.04

. 23.97 34.59

Irrigation ............

Other (specify)

103.53 132.89 132.62

Subtotal ...........

Subtotal .........

Off farm direct costs

11.29 14.26 19.30

Labor ............. .

Ginning (including bagging and ties)

..

75. 27 84.41 114.26 Other (specify) Interest, operating

Transportation to girl ..........

capital 11.74 98.30

11.22 109.89

12.50 146.06

465. 26 516. 94 550. 79

Subtotal ......... ..

Overheadcosts:

Management and administration, . . 10.87 17.72 17.42

Total direct costs .........

Land cost (typical rental value) . . 126.81 124.69 112.36 Other (specify) Generalfarmover- head3/ 39.04

641.98

44.33

703. 68

44.77

725. 34 TOTAL COSTS

Page 37: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

US $ perhectare

40.28 36. 15 36.00 28.24 18.80 14.55 23.38 24.09 11.51 7.22

2.40 1.32 1.68 .99

50. 26 26.96 6.03 5.63

190.34 145.15

13.44 12.06 43.98 33. 16 17.20 16.06

74.62 61.28

9.44 14.48 63. 18 96.94

6.20 5.54 78.82 116.96

343.78 323.39

6.65 5.96 109.09 98.07

30.48 23.55

490.00 450.97

UNITED STATES Country (continued)

Crop year 19741/

Estimated cost of producing a hectare of cotton

34

Item National average

Southwest Average Above average producer I producer

Yield used (kilos per hectare) . . . . 52

On farm direct costs

Preharvestirig: 42.80

Power and equipment 62.07 18.75 43. 39 19.03

Labor ..............

Insecticides and fungicides 23. 82 Defoliants and other chemicals 6. 18

Seed ............... Fertilizer ............ Herbicides .............

33.88 Custom or contract work . . . 13.51 Other (specify)

Subtotal .......... 263.43

Irrigation ...........

Harvesting: 14.26

Power and equipment 67. 23 Labor ..............

Custom or contract work . . . 22.04 Other (specify)

Subtotal .........I 103.53

Off farm direct costs

Ginning (including bagging and ties) Other (specify) Interest, operating capital

11. 29 75.27

11.74 98. 30

Transportation to gin ...........

465. 26

Subtotal ............

Overhead costs:

Management and administration . . 10.87

Total direct costs ..........

Land cost (typical rental value) . . 126.81 Other (specify) General farm over- head3/ 39.04

641.98 TOTAL COSTS

!I Based on an update of 1966 survey data. 2/ Represents roughly the top 20 percent of producers.

Page 38: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

35

UNITED STATES Country (continued)

Crop year 19741/

Estimated cost of DroducinLy a hectare of cotton

Item West

National Average

Above average average producer producer

Yield used (kilos per hectare)

526 972

1,154

Onfarmdirectcosts

Preharvesting: Labor ............ Power and equipment . Seed Fertilizer .......... Herbicides .......... Insecticides and fungicides Defoliants and other chemicals Irrigation Custom or contract work Other (specify)

Subtotal .........

Harvesting: Labor ............ Power and equipment ..... Custom or contract work Other (specify)

Subtotal .........

Offfarmdirectcosts

Transportation to gin ....... Ginning (including bagging and ties) Other (specify) Interest,operating

capital Subtotal

Total direct costs ........

Overheadcosts:

Management and administration Land cost (typical rental value) Other (specify) General farm over-

head 3/

TOTAL COSTS ......

US$perhectare

42.80 85.08 102.84 62.07 75. 09 80. 95 18.75 11.98 6.45 43.39 37.71 15.38 19.03 10.45 7. 73 23.82 31.85 35.71

6. 18 21.69 21.89 33.88 193.18 169.24 13.51 36.59 7.36

263.43 503.62 447•55

14.26 31.48 38.05 67.23 91.77 98.94 22.04 38. 10 7. 66

103.53 161.35 144.65

11.29 20.43 25.45 75.27 121.60 151.42

11.74 14.68 14.23 98.30 156.71 191. 10

465.26 821.68 783.30

10.87 33. 66 39. 73 126.81 271.66 183.48

39.04 81.89 62.54

641.98 1,208.89 1,069.05

3/ Includes farm real estate and personal property taxes, insurance, repairs on buildings and fences and miscellaneous items such as telephone, electricity, maintenance and drainage ditches and terraces, and use of personal auto for farm business.

Page 39: SURVEY OF COST OF PRODUCTION OF RAW COTTON · SURVEY OF COST OF PRODUCTION OF RAW COTTON Introduction During the past three years, and since the ICAC's last survey on cotton production

In major producing zones 1/

Average 1 Above average producer

J producer

800 1,500

US $ per hectare

66.90 78.87 1.41 1.41

9.63 17.84

7.77 12.68

22.53 42.25

7.04 8.45

3.71 3.71 38.32 71.84 8.11 15.20

17.75 33.29 27.15 50.91

31.71 59.45

242.03 395.90

CountryUPPER VOLTA

Crop year 1974/75

Estimated cost of producing a hectare of cotton

36

Item National average

Yield used (kilos per hectare) . . 470

(Seed cotton)

On farm direct costs

Preharves ting: 45.07

Power and equipment 94 Labor ..............

- - 4. 46

- - Insecticides and fungicides 4.73

Seed ...............

Defoliants and other chemicals -- - -

Custom or contract work . . . -- Irrigation ..........

Other (specify) - -

Fertilizer ............. Herbicides ............

Subtotal .........

Harvesting: 13.38

Power and equipment -- Custom or contract work . . . -- Other (specify) Labor - stalk destruction and burning 7.04

Subtotal .........

Off farm direct costs

Labor ...............

2. 18 Loan for fertilizer and insecticides 22. 48 Purchase costs seed cotton . . . 4.76

10.43

Loan for seeds ............

15.95 Shipping costs ............ Processing costs ...........

18.63 Overhead costs ............

TOTAL COSTS ....... 150.05

1/ Cotton project West Volta.