The Cost of Ginning Cotton – 2007 Survey Results

The 2007 United States Upland cotton crop produced 18.7 million running bales with 806 active cotton gins, averaging 23,200 bales per gin.  This is 11% below the 2006 cotton production of 21.0 million running bales with 835 gins. Harvested acres in 2007 were 10.2 million acres, down 18% from last year. Cotton yield averaged 879 pounds per acre, up 65 pounds from last year.  From the Beltwide survey results, the average annual volume was 31,569 bales with an average variable cost of $20.22 per bale.  Increased annual volume continues to yield reduced variable ginning cost.  Gins with an annual volume of 40,000 or more bales per year have an average cost of $17.40 per bale, while gins averaging less than 15,000 bales per year have an average cost of $24.14 per bale.