ECONOMIC ASPECTS OF VEGETABLE STORAGE

W.L. Hinton
The principal economic features of vegetable storage on the farm are the investment in plant, and the return on the investment. Return on investment is greatly affected by the amount of the investment (a large investment outlay requires more use), the throughput of produce, and the price received for it. The price of produce may be determined by advance contracts with processors for delivery on agreed dates, by market agreements with supermarkets for prepacked produce, or by advantageous selling in the open market at times of relative shortage. There are other features. For instance, better labour organisation over the harvesting season because the farmer is less compelled to harvest in poor weather and ground conditions. The farmer can harvest more produce in the better weather and achieve better quality. Good quality produce adds to the profitability of storage and poor quality produce may, through high wastage and a poor market sample, cause a financial loss on storage.

The paper brings together the various aspects of the economics of vegetable storage and it emphasises their importance. The potential for profitable vegetable storage exists in some situations, but not in all. In the case of high investment storage in

Hinton, W.L. (1974). ECONOMIC ASPECTS OF VEGETABLE STORAGE. Acta Hortic. 38, 531-560
DOI: 10.17660/ActaHortic.1974.38.40
https://doi.org/10.17660/ActaHortic.1974.38.40
38_40
531-560

Acta Horticulturae