Economic analysis of the cotton industry in Oklahoma

An analysis of the capacity utilization and cost structure of the Oklahoma cotton ginning industry is presented. Significant over-capacity is present in Oklahoma's ginning industry. Larger gins had significantly lower cost per bale and higher profit per bale. The receipt of picked cotton was associated with a longer ginning season and higher profit per bale. Gins which received more modulized cotton also had a longer ginning season, but experienced lower revenues per bale and lower profits per bale. Data for the analysis came from 1991 Annual Gin Reports and a survey of gins.