I. Labor Costs (Determined by the level of automation)

1. Automation Level

Simple, small-scale lines: Manual loading, unloading, and packaging; requires 3 workers.

Fully automated lines (loading, cooling, packaging): Requires only 1–2 attendants.

2. Local Wage Rates

Labor is expensive in Tier-1 cities and coastal regions, whereas costs are lower in inland areas and townships.

II. Facility, Packaging, and Miscellaneous Management Costs

1. Packaging Consumables

Standard 25kg woven bags, inner liners, and sealing materials; unit prices are lower for bulk purchases, while packaging costs rise for small-batch buyers.

2. Factory and Warehouse Rent

No rental costs for self-owned facilities; leasing factory space or weather-proof storage silos adds fixed overhead costs.

3. Management, Consumables, and Miscellaneous Expenses

Includes management salaries, equipment lubricants, fire safety compliance, consumables, general waste/loss, and storage shrinkage; these costs represent a higher per-unit share for small-scale production lines.

III. Supplementary: Hidden Costs (Often overlooked)

1. Raw Material Storage Loss: Outdoor storage leads to rain damage and mold, resulting in material spoilage and increased losses.

2. Capacity Utilization: Under-utilization or intermittent production causes a sharp rise in allocated labor, depreciation, and electricity costs; continuous, full-capacity production yields the lowest unit cost.

3. Environmental Protection Investment: Costs for dust removal and spray-scrubbing equipment; these represent a small allocated cost for small-scale production lines.