An economic analysis of three alternative methods of harvesting, bulk curing and market preparation of burley tobacco

The objectives of this study were to determine and compare the labor and equipment requirements and costs of three nonconventional techniques of harvesting, bulk curing, and market preparation of burley tobacco. The effects of various wage rates and volumes on cost were studied.

The procedure involved collection, description, computation, and analysis of data surrounding the harvesting, curing, and market preparation production stages of the three nonconventional burley systems. The harvesting production stage included: general preparation; priming the leaves in the field; hauling the leaves to the barn; and, loading the racked tobacco into the bam.

The analysis was directed towards the computation of the least-cost alternative of the three selected nonconventional methods at various output levels (in acres) and at various wage rates. A budgeting technique was used to determine the least-cost alternative at selected wage rates and acreage levels.

The walk-priming racking at the barn alternative was least cost at low acreages. However, the break-even price ratios and the percentage reductions in costs required to replace the least-cost alternative illustrated that the decision was unstable with reference to the walkpriming racking in the field alternative. Less than 10 percent reductions in capital costs of the latter alternative or a rise in wage rates would alter the least-cost alternative at selected outputs.