Costs of emergency storage are considered in two ways. 'Capital'
costs for imported stores include packing, freight, insurance, customs'
clearance and erection costs as well as the ex-works price of the structure.
These 'once and for all' costs can be spread over the life of the structure and
with the appropriate addition for interest are then called 'annual' costs. If
warehouses are utilized for their whole working life, their annual costs (see
Table 6) are much lower than tarpaulin annual costs, for example. But for a
short emergency of, say, one year's duration this is not so. The 'break-even'
point will depend on factors unique to each individual emergency. Where a
warehouse has a turnover of relief food once every two months and the emergency
lasts for 4-6 years, then depending on management, the price of relief food, the
losses saved, etc., the annual costs for warehouse storage can be lower than
tarpaulin storage. (For more details of costs see Appendices 9 and 10).
Table 6: Procurement period, capital
and annual costs per tonne for different