An economic analysis of the cost of packaging milk in plastic pouches

No Thumbnail Available
Wako, Charles B.
Venkatakrishna, Bellur V.
Issue Date
Thesis (M.A.)
Other Identifiers

A number of technological changes have taken place in packaging market milk. Initially, glass bottles were the only means; later on paper cartons entered the scene. At the present time some plants are packaging mil: in plastic pouches. Since no study seem to hale been made to estimate the cost of packaging milk in plastic poaches, this study was designed. The objectives of the study were to: 1. determine investment in land, building, and equipment for packaging milk in plastic pouches in three model plants; 2. determine unit cost of packaging milk in one gallon and one-half gallon plastic pouches for each plant size; 3. compare cost of packaging in pouches in relation to plant size; and 4. identify factors that might contribute towards economies due to plant size.The economic-engineering approach was used to analyze the cost of packaging. Findings off the study were that the per unit. packaging cost varied from 3.1 cents for model plant 1 to 2.8 cents for model plant 3. Therefore, it is reasonable to conclude that it is not only cheaper to package milk in plastic pouches but also the economies of size can be realized up to a certain point by increasing the plant size.