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HISTORIC NOTE


The publications in this collection do
not reflect current scientific knowledge
or recommendations. These texts
represent the historic publishing
record of the Institute for Food and
Agricultural Sciences and should be
used only to trace the historic work of
the Institute and its staff. Current IFAS
research may be found on the
Electronic Data Information Source
(EDIS)

site maintained by the Florida
Cooperative Extension Service.






Copyright 2005, Board of Trustees, University
of Florida




R. Clegg Hooks
A. H. Spurlock







Estimated


Economic Information
Report 79
HUME LIBRARY
SEP 19 1977
I.F.A.S. Univ. of Florida


Costs


of Picking and


Hauling Florida Citrus Fru

1975-76


Food and Resource Economics Department
Agricultural Experiment Stations
Institute of Food and Agricultural Sciences
University of Florida, Gainesville 32611


its,


July 1977














ABSTRACT


Florida citrus picking and hauling cost estimates for the 1975-76
season are presented. Data used to develop the estimates were collected
from 19 citrus handling firms. *

Orange picking and roadsiding costs in the 1975-76 season were
85 cents per box--an increase of approximately 1 percent from the figure
estimated for the 1974-75 season. Grapefruit and tangerine picking
and roadsiding costs were estimated to be 69 and 158 cents per box,
respectively.

Hauling costs for all types of fruit were estimated to be 15.4
cents per box, an increase of approximately 1 percent from 1974-75 levels.

Total citrus picking and hauling costs increased slightly in
1975-76 and were higher than in any preceding season except 1973-74.
Total picking and hauling costs estimates for oranges and grapefruit
were higher by 1.2 and 1.4 percent respectively from 1974-75 season
estimates. Tangerines remained virtually unchanged. Overall, picking
and hauling cost for the 1975-76 season remained stable with only a
slight increase.




















ACKNOWLEDGMENTS


We wish to express our appreciation to the participants for
their excellent cooperation, to Dr. Daniel Tilley for his counsel and
to Ms. Pamela Speakes and Mrs. Johnette Arnold for their clerical and
secretarial assistance.















TABLE OF CONTENTS

Page
LIST OF TABLES .......... ..... .. . i

SUMMARY . . . . . . . 1

SAMPLE FIRMS . . . . ... . ... 1

DATA COLLECTED AND COST DISTRIBUTION PROCEDURES . . 2

PICKING AND HAULING COST ESTIMATES. . . . .. 4

COST TRENDS . . . . .. . . 6

SELECTED REFERENCES . . . . ... .... ..12


LIST OF TABLES

Table Page

1 Estimated average cost per box for picking and hauling
citrus fruits for fresh packing and processing, 1975-76
season . . . . . . 5

2 Average cost per box for picking and hauling citrus fruits,
26 seasons, 1950-51 to 1975-76 . . .. 7

3 Relationship of picking and hauling cost to the per-box
price of oranges used for concentrate, 17 seasons,
1960-1976 . . . .... .. ..... 8

4 Index of citrus picking and hauling costs, 1960-61
through 1975-76 seasons (1960-61 1964-65 = 100) . 9

5 Changes in the cost items that make up estimated total
picking and hauling costs for oranges, 16 seasons,
1960-61 through 1975-76 (Index = 1960-61 to 1964-65
average) . . . .... . . 10













COST OF PICKING AND HAULING FLORIDA CITRUS, 1975-76 SEASON


R. Clegg Hooks and A. H. Spurlock


SUMMARY


Florida citrus picking and hauling cost estimates for the 1975-76
season are presented. Data used to develop the estimates were collected
from 19 citrus handling firms.
Orange picking and roadsiding costs in the 1975-76 season were
85 cents per box--an increase of about 1 percent from the figure
estimated for the 1974-75 season. Grapefruit and tangerine picking
and roadsiding costs were estimated to be 69 and 158 cents per box,
respectively.
Hauling costs for all types of fruit were estimated to be 15.4
cents per box, an increase of about 1 percent from 1974-75 levels.
Total citrus picking and hauling costs increased slightly in
1975-76 and were higher than in any preceding season except 1973-74.
Total picking and hauling costs estimates for oranges and grapefruit
were higher by 1.2 and 1.4 percent respectively from 1974-75 season
estimates. Tangerines remained virtually unchanged. Overall, picking
and hauling cost for the 1975-76 season remained stable with only a
slight increase.


SAMPLE FIRMS


Estimates of the cost of picking, roadsiding and hauling oranges,
grapefruit and tangerines were developed by summarizing accounting
records available from 19 citrus handling firms. Of the 19 firms in
the sample, 17 were located in the Interior and two were located in
the Indian River area. Three of the firms were independent citrus








dealers and 16 were packinghouses and/or processors. The larger firms
in the sample handled fruit from throughout the citrus-producing regions.1
The five firms with the largest picking volume in the sample were
responsible for 56 percent of the total boxes of fruit represented in
the sample. The five firms with the largest hauling volume in the
sample accounted for 51 percent of the fruit represented in the sample
and the five firms with the lowest hauling volume accounted for only
8 percent of the fruit represented in the sample.
Picking! cost information was available on 25 million boxes of
fruit or approximately 10 percent of total Florida production [4, p.
6]. Hauling cost information was available on 45.5 million boxes of
fruit or approximately 19 percent of total Florida production [4, p.6].
Picking cost information was provided on an average of 2 million
boxes per firm and hauling cost information was provided on an average
of 2.4 million boxes per firm. Three firms provided data on less than
0.6 million boxes while seven firms provided data on over 2 million boxes.
Most firms contracted with other operators to pick and haul some
of their total volume. The costs of contract crews, if data pertaining
to them could be separated, were not included because it was difficult
to determine the services performed, the kind of fruit and the number
of boxes hauled. However, in many firms, costs for contracting were
inseparably mixed with the information on services performed by the
firms' own crews; therefore, the averages include total costs for
contract and company crews and equipment.


DATA COLLECTED AND COST DISTRIBUTION PROCEDURES2


The data supplied by most firms in the sample were accounting
information from their auditors' reports. Some auditors' reports


lSome firms were responsible for picking and hauling more fruit
than was represented in the sample.

2The procedures described are the same as those described by
Tilley[5].








provided cost information for picking and a separate series of costs
for hauling. Other auditors' reports included only the combined costs
of picking and hauling. Only three firms in the sample provided infor-
mation by type of fruit. For those firms providing only total dollar
amounts for each expense item for picking, roadsiding and hauling oper-
ations, it was first necessary to determine how much of each expense
item should be allocated to picking and to hauling. Then it was neces-
sary to allocate picking expenses, among types of fruit. It was assumed
that hauling cost per box did not vary by type of fruit hauled.
In general, the allocations of expenses between picking and hauling
and among types of fruit are based on personal knowledge of a firm's
operation or on information provided by other firms in the sample.
Quite often it was also necessary to separate a total labor figure into
the five labor categories shown in the following tables. None of the
sample firms provided information in a form comparable with that shown
in Table 1. Therefore, the validity of the comparisons among types of
fruit depends on information provided by the firms that do provide
comparisons.
It has been documented that distance [2], hauling method [1], truck
size [1] and other factors affect picking and hauling costs. The data
used to develop the averages presented in this report were not provided
in sufficient detail to analyze the effects of these factors on total
picking and hauling cost because the auditor's report for each firm
summarizes the cost results for a variety of distances, hauling methods
and truck sizes. Also, fruit delivered to processors is handled dif-
ferently than fruit delivered to packinghouses. It is not known if the
sample firms properly represent the industry distribution of type of
fruit by method or destination.
Picking costs include all amounts paid for direct labor for picking
and delivery to the roadside, field truck and tractor expense, and a
portion of overhead and administrative expenses. Picking labor costs,
when not available by type of fruit, were allocated to the various types
of fruit by estimated piece rates. Fuel and repairs were allocated
equally per box for all kinds of fruit picked. Certain other expenses,
which do not fluctuate directly with changes in volume, were distributed
such that the per-box costs would be in the ratio of 1.00 for grapefruit,









1.50 for oranges and 3.00 for tangerines. Expenses in this group
include licenses and taxes, depreciation, insurance, miscellaneous
items and administrative expense.


PICKING AND HAULING COST ESTIMATES


Picking and loading refers to all activities involved in getting
the fruit from the tree to roadside. Itemized average picking costs
per box for oranges, grapefruit and tangerines and hauling costs are
shown in Table 1. The numbers reported in the tables are calculated by
summing the total dollars spent for each item by the sample firms and
dividing by the total boxes of fruit harvested by the sample firms
(i.e., the averages are weighted averages where the weights are the
number of boxes picked by the firms).
Buyers salaries, commissions and expenses for fruit procurement
and sale are omitted. Costs such as telephone and auto expenses, which
are associated with selling as well as harvesting operations, are
difficult to assign to specific operations and may still be included
in the information obtained from a few firms.
The largest item in the cost of picking citrus is labor. All labor
including payroll taxes and workmen's compensation insurance was 82
percent of the total cost of picking and loading oranges and grapefruit
and 88 percent for tangerines. The amount paid the fruit picker was
approximately more than three-fourths of the labor cost. Total picking
cost in 1975-76 increased from the previous season by 1 percent for
oranges and 2 percent for grapefruit. Tangerine picking cost remained
almost the same.
The hauling operation refers to the transportation of fruit from
the roadside to the processing plant or fresh packinghouse. Labor, in-
cluding payroll taxes and workmen's compensation insurance accounted
for 33 percent of the total hauling cost. Other items of cost were
repairs 25 percent, depreciation 14 percent, fuel 13 percent and admin-
istration 6 percent. Hauling cost for 1975-76 increased 1 percent
from the previous season.
The combined picking and hauling costs for 1975-76 (Table 1)
were obtained by adding the picking cost for each type of fruit to





Table .--Estoimated average cost per box for picking and hauling citrus fruits for fresh packing and processing,
1975-76 season


Service performed and commodity


Picking


Oranges Grapefruit Tangerines


Number of operators
Average volume


17 16
1,494,318 371,515


15
98,335


Hauling
to
plant

19
2,397,445


Total pick & haul


Oranges Grapefruit


Tangerines


Labor
Supervisory
Pickers
Loaders & drivers
Semi-drivers
Other labor
Subtotal
Payroll taxes
Total labor
Other Costs
Fuel & oil
Repairs & maintenance
Licenses & taxes
Depreciation
Insurance
Supplies
Equipment rental
Migratory labor expense
Miscellaneous
Total other costs
Administrative
Total costs


--------------------------------------Cents per box--------------------------------------


6.70
50.61
4.05

1.27
62.63
8.34
7.0.97

2.36
4.91
.21
2.13
.59
.71
.17
.15
.24
11.47
2.82
85.26


5.67
38.46
4.56

.94
49.63
6.39
56.02

2.67
4.88
.25
1.99
.59
.41
.05
.04
.20
11.08
1.95
69.05


11.18
102.97
8.57

1.35
124.07
15.15
139.22

2.69
4.51
.40
4.37
1.01
.60
.06
.12
.26
14.02
4.58
157.82


.05


3.95
.55
4.55
.61
5.16

2.04
3.80
.53
2.14
.57
.05
.08

.18
9.39
.90
15.45


6.75
50.61
4.05
3.95
1.82
67.18
8.95
76.13

4.40
8.71
.74
4.27
1.16
.76
.25
.15
.42
20.86
3.72
100.71


5.72
38.46
4.56
3.95
1.49
54.18
7.00
61.18

4.71
8.68
.78
4.13
1.16
.46
.13
.04
.38
20.47
2.85
84.50


11.23
102.97
8.57
3.95
1.90
128.62
15.76
144.38

4.73
8.31
.93
6.51
1.58
.65
.14
.12
.44
23.41
.5.48
173.27


Range in costs--low 67.44 54.90 137.49 10.86 78.3 65.76 148.35
--high 104.52 84.16 228.09 23.68 122.73 102.37 251.77
Standard deviation 9.09 7.67 25.10 3.46 10.78 9.37 26.66

aIncludes foremen.
Also includes workmen's compensation.
lIncludes management and office salaries, office supplies, auto travel and entertainment, interest paid, legal
and audit, advertising, dues and subscriptions, donations and telephone and telegraph.
A range of one standard deviation above and below the mean usually includes about two-thirds of the observations.
Ninety-five percent of the firms are within the range of two standard deviations from the mean.









the hauling cost. Labor costs accounted for 76, 72, and 83 percent of
total picking and hauling costs for oranges, grapefruit and tangerines
respectively.


COST TRENDS


Citrus picking and hauling costs increased slightly in the 1975-76
season from the preceding season, but remained below the level of the
1973-74 season--which was the highest for which data are available
(Table 2). Total picking and hauling costs for oranges and grapefruit
increased 1.2 and 1.4 percent, respectively, from the 1974-75 season
costs. Tangerine costs remained the same. Some of the season-to-
season variation in cost for eacl service is due to change in the
firms in the sample. However the long-term trend shows that costs
have increased almost steadily over the past 19 seasons before
1975-76 (Table 2).
Orange picking and hauling costs decreased relative to the
delivered-in value of oranges for 1975-76. Table 3 shows the
relationship between picking and hauling cost and the per-box delivered-
in price of oranges reported by the Florida Canners Association. During
the first five seasons reported in Table 3, picking and hauling costs
averaged 16.4 percent of the per-box delivered-in price of oranges.
During the last five-year period, picking and hauling costs averaged
36.8 percent of the delivered-in price for a box of oranges used in
concentrate. In the 1975-76 season, picking and hauling costs represented
32 percent of the delivered-in value of fruit.
Table 4 shows how total picking and hauling costs have changed
compared with the average reported figure for the 1960-61 through
1964-65 seasons--the base period. With few exceptions, the increases
for all types of fruit have been very steady. For the 1975-76 season,
orange and grapefruit picking and hauling costs are about twice the
levels during the base period, while tangerine costs are estimated to
be 1.7 times the average level reported during the base period.
Table 5 shows how the components of total orange picking and
hauling costs have changed in absolute magnitude and relative to their
base-period levels. Note that picking labor, the largest component,









Table 2.--Average cost per box for picking and hauling citrus fruits,
26 seasons, 1950-51 to 1975-76a



Picking & loading Total picking,
SSample Haul- loading & hauling
Season
firms ing
Or s Grape- Tanger- Grape- Tanger-
fruit ines fruit ines


No.


1950-51
1951-52
1952-53
1953-54
1954-55

1955-56
1956-57
1957-58
1958-59
1959-60

1960-61
1961-62
1962-63
1963-64
1964-65

1965-66
1966-67
1967-68
1968-69
1969-70

1970-71
1971-72
1972-73
1973-74
1974-75


-----------------Cents per box------------------


10.31
9.81
9.71
9.61
9.38

9.47
9.27
11.31
11.46
11.23

11.17
10.41
12.94
13.73
11.66

11.96
10.74
13.32
11.98
13.18

13.04
13.61
14.70
15.66
15.36


28.36
28.42
29.12
28.87
28.93

30.52
31.36
33.30
33.30
34.17

34.96
33.79
39.57
43.04
43.43

46.12
46.25
54.09
57.77
61.12

64.86
70.86
82.16
91.08
84.16


18.62
19.51
21.98
20.58
20.91

21.73
23.46
24.09
24.16
25.16

26.69
25.75
28.32
31.47
33.08

37.77
37.65
41.45
42.99
46.98

48.61
52.41
59.11
69.37
67.94


56.93
61.93
59.62
60.86
64.72

66.39
73.96
75.35
74.90
83.68

83.53
81.66
95.97
100.71
102.63

107.47
113.47
118.46
120.55
129.82

134.51
140.46
147.15
158.09
158.23


38.67
38.23
38.83
38.48
38.31

39.99
40.63
44.61
44.76
45.40

46.13
44.20
52.51
56.77
55.09

58.08
56.99
78.41
69.75
74.30

77.90
84.47
98.86
106.74
99.52


28.93
29.32
31.69
30.19
30.29

31.20
32.73
35.40
35.62
36.39

37.86
36.16
41.26
45.20
44.74

49.73
48.39
54.77
54.97
60.16

61.65
66.02
73.81
85.03
83.30


67.24
71.74
69.33
70.47
74.10

75.86
83.23
86.84
86.36
94.91

94.70
92.07
108.97
114.44
114.29

119.43
124.21
131.78
132.53
143.00

147.55
145.07
161.85
173.75
173.59


1975-76 19 15.45 85.26 69.05 157.82 100.71 84.50 173.27


aData for seasons prior to 1975-76 are from Tilley [51.










Table 3.--Relationship of picking and hauling cost to the per-box price
of oranges used for concentrate, 17 seasons, 1960-1976


Delivered-in Estimated per Picking and
Season ending per box price box pick and hauling cost as
in July for oranges used haul costbfor a percentage of
(col. 1) for concentratea oranges delivered-in prices
(col. 2) (col. 3) (col. 4)


---------Dollars per box--------- -----Percent------

1960 2.54 .45 18
1961 3.47 .46 13
1962 2.26 .44 19
1963 2.71 .56 21'
1964 5.25 .57 11

1965 3.37 .55 16
1966 2.28 .58 25
1967 1.29 .57 44
1968 2.76 .67 24
1969 2.70 .70 26

1970 1.94 .74 38
1971 2.07 .78 38
1972 2.91 .84 29
1973 2.36 .97 41
1974 2.58 1.07 41

1975 2.41 1.00 41
1976 3.11 1.01 32


a[3, p. 10A].

From Table 1.


CCol. 4 = (col. 3 col. 2) X 100.









Table 4.--Index of citrus picking and hauling costs, 1960-61
through 1975-76 seasons (1960-61 1964-65 = 100)


Total picking, loading and hauling
Season index for

Oranges Grapefruit Tangerines


---------------------Index-------------------

1960-61 91 92 90
1961-62 87 88 88
1962-63 103 101 104
1963-64 111 110 109
1964-65 108 109 109

1965-66 114 121 114
1966-67 112 118 118
1967-68 132 133 126
1968-69 137 134 126
1969-70 146 147 136

1970-71 153 150 141
1971-72 166 161 147
1972-73 194 180 154
1973-74 210 207 166
1974-75 195 203 166

1975-76 198 206 165









Table 5.--Changes in the cost items that make up estimated total picking and hauling costs for
oranges, 16 seasons, 1960-61 through 1975-76 (Index = 1960-61 to 1964-65 average)


Fuel, oil,
a Fuel, oil, Administrative
Season Picking labor Other labor repairs, Administrative
depreciation


C/box Index C/box Index c/box Index C/box Index

1960-61 18.90 85 12.52 96 8.37 91 6.34 100
1961-62 19.64 88 12.17 93 7.56 82 4.83 76
1962-63 22.50 101 13.29 101 9.98 109 6.74 107
1963-64 24.24 109 14.17 108 10.33 112 8.03 127
1964-65 26.38 118 13.35 102 9.72 106 5.64 89

1965-66 28.54 128 14.43 110 9.88 107 5.23 83
1966-67 29.53 132 13.79 105 8.42 92 5.25 83
1967-68 33.42 150 16.96 129 10.88 118 6.15 97
1968-69 37.51 168 15.69 120 10.82 118 5.73 91
1969-70 38.54 173 17.00 130 12.32 134 6.44 102

1970-71 38.70 173 17.99 137 12.75 139 8.46 134
1971-72 40.92 183 22.34 171 13.38 146 7.83 124
1972-73 52.60 236 22.00 168 15.06 164 7.20 114
1973-74 57.86 259 23.10 176 16.57 180 9.21 146
1974-75 51.87 232 22.87 175 16.53 180 8.25 131

1975-76 50.61 227 25.52 195 17.38 189 7.20 114


aIncludes supervisory, loaders, drivers, semi-drivers, miscellaneous and payroll taxes
and workmen's compensation.

Includes licenses, taxes, insurance, supplies, equipment rental, migratory labor
expense and miscellaneous costs.





11



has shown the greatest increase relative to the base period. While
Table 4 shows that total picking and hauling costs for oranges in
1975-76 were 198 percent of the base-period level, picking labor has
increased to 227 percent of the average in the base period. From the
base period, (1960-61 through 1964-65) total picking and hauling costs
for oranges are estimated to have increased 49.77 cents and picking
labor costs have increased 28.28 cents; that is, 57 percent of the
increase is accounted for by picking labor cost increases. Labor
costs have increased relatively more than any other component and
also account for a major share of the total absolute increase.









SELECTED REFERENCES


[1] Bowman, Earl K., A. H. Spurlock, Scott Hedden and William Grierson.
Modernizing Handling Systems for Florida Citrus from Picking
to Packing Line. USDA Marketing Research Report No. 914.
Washington: U.S. Government Printing Office, December 1971,
pp. 54.

[2] Chern, Wen-Shyong. Determination of the Optimal Number, Size and
Location of Orange Packing and Processsing Plants in Florida.
Unpublished M.S. thesis, University of Florida, Gainesville,
1969.

[3] Florida Canners Association. Statistical Summary, 1975-76 Season.
Winter Haven: 1977.

[4J Florida Division of Fruit and Vegetable Inspection. 1975-76 Season.
Annual Report. Winter Haven: 1976.

[5] Tilley, Daniel S. Estimated Costs of Picking and Hauling Florida
Citrus Fruits, 1974-75 Season. Food and Resource Economics
Department Economic Information Report 53. Gainesville:
Univeristy of Florida, June 1976.