Georgia Institute of Technology Office of Contract Administration Sponsored Project Initiation

Work Completed or in Progress In updating the 1971 "Peanut Processing Opportunities," Economic Development Laboratory (EDL) is responsible for preparing two main sections, namely (1) transportation analysis and (2) comparative plant and cost analysis. Work related to these two sections, either completed or in progress, is given separately below: A. Transportation Analysis 1. The methodology used in updating the transportation analysis will follow the same methods adopted in 1971. Starting points and ending points will remain the same. For distances over 349 miles, carload freight rates will be applied. For those distances under 349 miles, motor truck rates will be used in the analysis. 2. Two major railway systems and two major trucking companies have been contacted to provide freight rates between various starting and ending points on the basis of certain minimum carload/truckload weights. One trucking company already sent in their rates, while the other three companies are still working on requested data. B. Comparative Plant and Cost Analysis 1. Under this section, investment requirements and production cost analysis are the two major investigating areas. The scale of production, plant location, and the type of end product will follow the same patterns adopted in the 1971 study with the exception that a multi-product line is to be used in the Candy section. Much information needed in this analysis is proprietary in nature. It is difficult to obtain the cooperation of a number of peanut processing companies located in designated areas to provide needed data. EDL has been trying to approach some companies directly for this pur-modity Commission for Peanuts, is seeking such cooperation on the behalf of EDL. However, more efforts are required in order to bring about desirable commitments. 2. Two engineering firms knowledgeable in the plant design of peanut butter processing and salted-nuts processing have promised to provide detailed data on machinery and production flow diagrams. Other matters concerning investment requirements will be checked with these two engineering firms as well as peanut processing companies. 3. Three trade associations were contacted for their membership directories. A list of producers of peanut butter, salted peanuts, and peanut candy was compiled from these directories. Thirty-five producers were selected because they are located in the pre-designated areas of Southwest Georgia, A very brief survey questionnaire was sent to each of these 35 producers for the purpose of finding out their willingness to participate in this program by contributing their production …