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 ..%CAI/Z,Ol/(/édlgél/VI/8//LL'}
This publication has been prepared in an effort to help those
who plan to build and operate a locker plant. It is intended to IOC
furnish such information as is needed to form a clear picture of the mg
* problems involved in planning a plant. It is not intended that it If
shall be a complete design treatise, but rather that it will enable the be
prospective operator to do his preliminary planning better, and be
` in a position to state his problems clearly and concisely to those
from whom he seeks advice.
. This publication is a product of the joint efforts of the several i
members of the Southeastern States Freezer Locker Engineering
Committee. I
This committee was formed during the Southeastern Freezer-
Locker and Home—Freezer Conference held at the University of
Tennessee, Knoxville, September 0, 7, and 8, 1944. in
These recommendations for locker plant construction have been
approved by all the members. They have also been submitted to
a number of manufacturers who have given many helpful sug- lar
gestions. lm
Southeastern States Freezer Locker Engineering Committee:
Mack Tucker, Chairman, University of Tennessee, Knoxville, C0
Tennessee `
Harry Carlton, University of Tennessee, Knoxville, Tennessee  
P. D. Rogers, Commerce Department, TVA, Knoxville, Teh- lll
nessee _ iw
F. M. Hunter, Mississippi State College, State College M1S- _ 2;%
sippi.
E. H. Chambers, Alabama Polytechnic Institute, Athens, Ala- Sh`
bama.
H. S. Glenn, University of Georgia, Athens, Georgia f0<
R. H. Driftmier, University of Georgia, Athens, Georgia Y6]
C. V. Phagan, Clemson Agricultural College, Clemson, South lee
Carolina Of
D. S. Weaver, North Carolina State College, Raleigh, North an
Carolina I _ col
_ E. T. Swink, Virginia Polytechnic Institute, Blacksburg, V1l" ig
ginia ·
John L. McKitrick, University of Kentucky, Lexington, KG11- ge;
tucky. ‘
- The committee expresses appreciation for the aid furnished bl'
Mr. P. D. Rodgers, Mr. R. D. Haynes and Mr. E. F. Nevvmanlof the mj
Commerce Department of the Tennessee Valley Authority 111 Dl`€’ pl;
paring the material for this publication. mi
 
UNIVERSITY OF KENTUCKY Y?
COLLEGE OF AGRICULTURE AND HOME ECONOMICS sa
EXTENSION SERVICE . . LEXINGTON he
c1RcULAR 413 Fnnnutnrégfi sh
Cooperative ExtcnsionHrl\ir#;;;;i-ISIthgir;-IFI»I&“jr1§u,mqmic5; University 0f`K?“I“°ki' Hf
College of Agriculture amd Home Economics, and the United States Department of —AgI`l°ultini:f
cooucratinx:. Thomas P. Cooper, Director, Issued in furtherance of the Acts of C"“¥"°°°
May 3 zmsl Juno 30, 1914. I//ij;
_ .0

 1 §  
T ’   v
ECONOMIC CONSIl}ERATION S F0!} l
ESTABLISHING A LOCKElI PLANT , , y
those A businessman, in deciding whether or not he should build a y   ·
od to locker plant, can protect himself against failure by carefully analyz- ,  
>f tho iii the factors that contribute to the success of such an enterprise. .  
_ E .
{Bt}? If the enterprise is to be successful two general conditions must Q
€i 9 be met. I j
Qgolgg 1. The plant must be properly designed and engineered j ii
and must be constructed at a reasonable price in order V i g
WYE] - to minimize operating and overhead costs and render ‘ ~
‘ · full service to the community. . g
eering ,
2. The business must be established and conducted on a
eezer- sound financial basis. · ~
ty of The design and construction of the locker plant are discussed
been in the second part of this bulletin.
ied to What constitutes a sound financial basis can be established
Sug. largely by analyzing the business to determine the extent to which
the requirements discussed below are met,
tee: A
xvillc, Community Support y
iessee _ The community must be able to support a locker plant. First, ‘ _
Tm Within the community being considered there must be a potential a j
need for the services offered. The greatest potential need for y
. Mis. l°€k€1` facilities is in communities where agricultural products suit-
’ · able for freezing are readily available. This means that the plant .
V Aly Should be located in or near an agricultural community. A
Both farm and urban families are potential users of frozen if
food lockers. Farm families are the principal patrons since they  
rent about 75 per cent of all lockers. Whether or not they will use .
South lgclgirs depends upon the service offered and the resouiicefulrggss ·
0 e operator. Farmers use locker facilities because t ey 0 er
North an economical method of preserving their own products for home
l consumption and an additional market for their excess production
g, V1l`· at Dl`0f1table prices, Urban families also find that the USB of
I these facilities offers a convenient and economical method of pre-
, Ken- ggrving quantities of fresh products purchased in season for out-
—season consumption.
hiedtii; . 0HlY 10 to 20 per cent of patrons now travel more than ten
,0 my rqlles to use their lockers, Therefore the actual lOCat10H of th€
ml pant $l"lOuld have easy access to both rural and urball _lJ3-t1“0YlS»
inost of whom should be reached within an area extending to a
lflflllls of ten or fifteen miles from the plant. 'Il”1€ Cltyy town, OY
  glgfge that serves as the trading center for the area Wlll LlSL13llY
Batisfy this requirement. As the value of the services becomes
,Y 1946 SE tell kllO`WH, patrons may travel farther; but a new OpQ1`at0I`
;,;;l éf$;;ll101ii* ‘ &0€k€1‘ business in this region. Hovairleiizdir, Elliianiagiaiiilabiiitiyiirof gtheii _
d_ S Of (€m`mOdltl€S for freezing or for other services that the locker oper-
1 lu T ilgémdsvelops may provide opportunities for additional source of A r ,
villagé I l
I t ‘M9.ny locker plant operators have found that the patrons C
r which ihme QHIY 200 01" 300 pounds of frozen foods in their lockers when ·
B in the Etsy fU`Si3 Start using them. If this condition continues, the oper-
rrreeess- p1_01£_€311110t eXpect a very profitable operation, if he can make a
ontmue b 1 at all,. $0me patrons store more food in their lockers as they
, profit, 1_§gOm€ fanllllar with the value of the service, while others fail to
· Stofw thelr locker rental because they find it quite expensive to
Sm? Stuch a small amount of food. A locker plant operator must
Ltisfaet. ed J; 0 persuade his patrons to store at least the amounts indicat-
mduete 0V€ IH order to be assured of successful operation.
5 fruits A A prospective locker
* · ri ,, plant operator should be able to answer
iutgfftég YQS to the following questions:
tarmels T 1- AP6 about 100 beef animals and 200 hogs available for
mdS# gf D1‘0Cess1ng for each 100 lockers in the plant?
 
)0 gullfii »_
jcsg l9li· etrggtglee S°d¤U1€eastern region the average dressed weight (before processing)
{er hogs gd ;?;;€?Sb1¤3t§hereddf0r beef is 260 pounds, and the dressed weight
p0\lI`I S.
5

 2. Are about 6000 pounds of the proper varieties of fruits
and vegetables available for each 100 lockers? We
3. Are about 1000 birds available for the processing of poul- of
try per 100 lockers? if
I Size of Plant  
The prospective volume of business must be sufficient to pay
¥ a reasonable return on the investment. The number of lockers and
` the types of services must be determined by community needs and I0?
the prospective volume of business.
· One of the most important problems a prospective locker oper-
ator faces is how large a plant to build. Plants with 25 to 100
lockers are not economically feasible as independent enterprises al-
though units of this size have been installed in conjunction with
community canneries, which are generally operated on a nonprofit
basis. For plants with fewer than 300 lockers, it is desirable to
combine the industry with some related enterprise in order to re-
duce management and overhead costs. Plants with more than 300 ST
lockers can be operated profitably as separate businesses.
The gross plant income depends upon the number of lockers
rented, kinds of services rendered, and volume of business handled
together with the locker rental rates and processing charges. How- ln,
ever, locker rentals usually produce a lower percentage of the gross *
income than the revenue furnished by the other plant services.
Therefore, a prospective locker operator should not depend toe
T heavily on locker rentals to produce profits but should plan on de-
veloping the maximum number of services that can be rendered to ·
those who rent lockers. He should plan to secure a large enough
volume of processing and freezing business to make the enterprise
profitable.
The plant must be designed to fit the needs of the particular
community. These needs will vary from one locality to another
because of differences in food habits, differences in types and
quantities of foods produced, differences in incomes, and similar
considerations. These considerations need to be weighed not oulf ‘
in estimating the number of lockers which can be rented, but also E,
in deciding upon the type and extent of services to be offered- , `
A careful estimate must be made of the additional income rv
_ be secured in the particular community from such activities RF
slaughtering, bulk storage, commercial processing for the whole-
sale or retail trade, retailing and distribution of frozen fo0dS_, mid
sale, rental, and servicing of farm and home frozen food cabllwff
This estimate must be made before the plant is constructéd, lo}
upon it will depend the physical layout of the facilities. lf the esti-
mate is accurate and the layout well adapted to the servicfzjs ref
quired by the particular community, it will be reflected directli
and favorably in the operating costs and profits, Similarly, Qlalj
out ill-adapted to the needs of the community will result in highel
operating costs or expensive alterations.
6
. .0

 ` l ii? l
Er ., The present trend in locker plant costs is upward. Future i
ms trends are uncertain. Locker plants costs during the latter part
mu, of 1945 ranged from $70 tob$80 per locker. Using $75 as the basis, . , V
' a $37,500 investment may e required for a plant with 500 lockers. l
If the plant services include slaughtering and commercial bulk  
storage and commercial processing, additional capital investment ·  
is required. Q *
  The locker plant may be expected to be profitable if the fol-   i
is and lowing questions can be answered affirmatively: , 1 ,
1. If the anticipated plant will contain fewer than 300 lock- .  
_ _ ers, will it be combined with some other business which 1*
)0l¥66 has proved profitable? . ;
ses al- 2. If the plant will contain more than 300 lockers, will it of- `
1 with fer complete service to the patrons? » .
lpmflt 3. Will the services offered and the volume of business avail-
llggelg able justify the investment?
011300 STATEMENT OF ESTIMATED INCOME AND EXPENSE FOR
I k 1__ THE ANNUAL OPERATION OF A LOCKER
lgidileg PLANT HAVING 500 LOCKERS I
a. How- Income `
e gross L .
zrvices. 1. Locker rentals, 450 @ $13.50 (90% rented) . $6100 , .
ld tw 2. Meat curing, smoking, 90,000 lb. @ 4%¢ .. . 4100  
(mddg V 3. Meat processing, 135,000 lb. @ 2%¢ . ..   .. 3400
emu lg (Chilling, Cllttihg`, Wrapping, freezing) ’ .
iggrie 4. Meat grinding, 13,500 lb. 11,Q¢ . . . .. 200
l 5. Rendering lard, 9,000 lb. @ 3ql . . .. 1 300 1  
rticular 6. Freezing fruits and vegetables, 27,000 lb. @ 2¢ 500 ,
anothel 7. Processing poultry, 4,500 birds @ 15;* 700 t
3S_ wl 8- BYOk€l`3.g€, bulk storage, etc.   .   . 1000
,;},1Tml Gross income ..   . . $16.300
out also Expense
ered. . *
to 1- Salaries and wages r . __ I .... . $6000
clmge as 2. Light and power ..     . . ..     400
tie 9 _
,wh0]€. ·>. Repair-S V V   __,, V VV V V V r___ or 300
and 4- Oth€1` plant expense . . 1000
ads. - ,
mbmets. 0- Offlce expense V . r .   . 400
,€d_ for   Depreciation o V r r . 2400
the esti. l. Interest V V     VV V V 1800
ices re- 0· Taxes and insurance .... 500
directly 9. Other expenses . . . A _ 300
  Gross expense .  
Net Income (before Federal taxes) $ 3200
7

 Data On Expenses E
[tem
1. Salaries and wages include
a. Operator $3,000 OSH
b. Butcher 2000 e if
` c. Helper 1000 im
2. Estimated on basis of 50 kilowatt hours per locker per year. WO
· The cost was calculated by using the TVA basic small lighting pla
and power rate, schedule B-2.1A.
_ 4. Include water, supplies, laundry, and delivery service. fm
5. Includes bank charges, auditing, legal, advertising, postage, of- cid
fice supplies, telephone, and telegraph. an·
6. The average rate of 6.4 per cent was applied to an estimated 001
investment of $37,500 for a 500-locker plant. of
7. On the basis of 5 per cent on an investment of $37,500.
9. Includes bonding, bad debts, and licenses.  
This statement of income and expense is not necessarily typi- ~ mi
cal but is intended to be used as a basis for preparing an estimate ai
to meet a particular local condition. Some of the income items can " to
be increased greatly. Labor expense can be reduced by efficient
management and hard work. ab
ex
Plant Management  
Efficient management is essential to the successful operatiell ` tir
of a locker plant. The operator should possess a technical know-
ledge and business ability required to run the physical plant and W]
manage its business activities, or know where he can secure mall- lm
agement possessing such knowledge and ability for a salary he Call pb
afford to pay. Alert and aggressive management is required to dif
attract patronage and sell services. The number of customers thai pl,
will be attracted to the plant depends upon the type of services Of- 10,
fered and how enterprising management is in selling them.
An operator with good sales ability can show patrons how _tli€l' Q
can save money and get better products by using plant facilities. ·
A manager with a good understanding of the technical problems D]
of freezing and storing food can render a superior quality of S€1`l'· pl
‘ ice by carefully controlling the various plant operations, such ss Ot
chilling, aging, curing, blanching, freezing, etc, Quality CO11tYOllS aq
an important responsibility of management and will result in Gus dg
tomers satisfaction and increased business. Q}
While good management cannot make every plant profitable in
even a well-equipped and well—located plant is not likely to be Sllcj ei
cessful without a capable operator. Experience fails to show all? is
single factor as important to the success or failure of any plant Hs m
the resourcefulness and efficiency of the operator himself. L
8
_ in

 l 2 it
1 g i—
i ' I
ENGINEERING CONSIDERATIONS F0}! Q
BUILDING A LOCKEIl PLANT i ,
Quite frequently requests for information on the "design, i  
construction, and operation of locker plants" are received by agen- . , `
cies interested in this development. The requests are not always ·   A
so all-inclusive, but in most cases the prospective plant operator {  
indicates that he has learned that there are many details to be ?
g§31`· worked out and innumerable possible variations to a locker plant L it
E mg plan. . i,
futu£tO<;)tél;`;1£O?ri11;2 ;ea