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Group Title: Estimated costs of picking and hauling fresh Florida citrus
Title: Estimated costs of picking and hauling fresh Florida citrus, 1977-78
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Title: Estimated costs of picking and hauling fresh Florida citrus, 1977-78
Series Title: Estimated costs of picking and hauling fresh Florida citrus
Physical Description: Serial
Language: English
Creator: Hooks, R. Clegg
Spurlock, A. H.
Kilmer, Richard L.
Publisher: Food and Resource Economics Dept., Cooperative Extension Service, IFAS, University of Florida
Place of Publication: Gainesville, Fla.
Publication Date: 1979
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General Note: Economic information report - University of Florida Food and Resource Economics Department ; 109
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Bibliographic ID: UF00026325
Volume ID: VID00002
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 001546999
notis - AAB7773
notis - AHG0537

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        Title Page
    Abstract
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    Table of Contents
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    Main
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        Page 2
        Page 3
        Page 4
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        Page 12
Full Text

SR. Clegg Hooks
A. H. Spurlock
Richard L. Kilmer


Estimated


Costs


Economic Information
Report 109


of Picking and


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


March 1979


i


Hauling Fresh Florida Citrus,
1977-78 Season



^ ^
^S ^z










ABSTRACT


Florida citrus picking and hauling cost estimates for the 1977-78

season are presented. Data used to develop the estimates were col-

lected from 20 citrus handling firms.

Orange picking and roadsiding costs in the 1977-78 season were

106 cents per box--an increase of about 12.8 percent from.the figure

estimated for the 1976-77 season. Grapefruit, tangerine and tangelo

picking and roadsiding costs were estimated to be 82, 186 and 130

cents per box, respectively.

Hauling costs for all types of fruit were estimated to be 18.2

cents per box, an increase of about 5.8 percent from 1976-77 levels.

Total citrus picking and hauling costs increased slightly in

1977-78 and were higher than in any preceding season. Total picking

and hauling costs estimates for oranges, grapefruit, tangerines and

tangelos were higher by 11.2, 10.4, 6.5, and 14.1 percent respectively

from 1976-77 season estimates. Overall picking and hauling cost for

the 1977-78 season increased to new highs.


Key Words: citrus picking, citrus hauling, picking costs,

hauling costs, citrus.


ACKNOWLEDGMENTS

We wish to express our appreciation to the participants for their
excellent cooperation, and to Ms. Earlene Lee for her clerical secre-
tarial assistance.










TABLE OF CONTENTS

Page
LIST OF TABLES . . . . . . . . . . . ii

SUMMARY. . . . . . . ....... . . 1

SAMPLE FIRMS .. . .. . . . . . . . .. .

DATA COLLECTED AND COST DISTRIBUTION PROCEDURES . . 2

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

COST TRENDS . ... .... . . . . .. ... 6

SELECTED REFERENCES ....... .. . ....... 11


LIST OF TABLES

Table Page
1' Estimated average cost per box for picking and hauling
citrus fruits for fresh packing and processing,
1977-78 season. . . . . . . . . 5

2 Average cost per box for picking and hauling citrus
fruits, 28 seasons, 1950-51 to 1977-78 .. . . 7

3 Relationship of picking and hauling cost to the per-
box price of oranges used for concentrate, 19 seasons,
1960-19. . ... . .. . . . . 8

4. Index of citrus picking and hauling cost, 1960-61
through 1977-78 seasons (1960-61 1964-65 = 100) . 9

5 Changes in .the cost items that make up estimated
total picking and hauling costs for oranges,
18 seasons, 1960-61 through 1977-78 (Index = 1960-61
to 1964-65 average) . . . . . . . .. 10




ii










COST OF PICKING AND HAULING FLORIDA CITRUS, 1977-78 SEASON


R. Clegg Hooks, A. H. Spurlock and Richard L. Kilmer

SUMMARY


Florida citrus picking and hauling cost estimates for the 1977-78
season are presented. Data used to develop the estimates were col-
lected from 20 citrus handling firms.
Orange picking and roadsiding costs in the 1977-78 season were
106 cents per box--an increase of about 12.8 percent from the figure
estimated for the 1976-77 season. Grapefruit, tangerine and tangelo
picking and roadsiding costs were estimated to be 82, 186 and 130
cents per box, respectively.
Hauling costs for all types of fruit were estimated to be 18.2
cents per box, an increase of about 5.8 percent from 1976-77 levels.
Total citrus picking and hauling costs increased slightly in
1977-78 and were higher than in any preceding season. Total picking
and hauling costs estimates for oranges, grapefruit, tangerines and
tangelos were higher by 11.2, 10.4, 6.5, and 14.1 percent respectively
from 1976-77 season estimates. Overall picking and hauling cost for
.the 1977-78 season increased to new highs.

SAMPLE FIRMS


Estimates of the cost of picking, roadsiding and hauling oranges,
grapefruit and tangerines were developed by summarizing accounting

R. CLEGG HOOKS is an assistant in Agricultural Economics,
A. H. SPURLOCK is emeritus professor of food and resource economics
and RICHARD L. KILMER is an assistant professor in Food and
Resource Economics




2


records available from 20 citrus handling firms. Of the 20 firms in
the sample, 19 were located in the Interior and one was located in the
Indian River area. Three of the firms were independent citrus dealers
and 17 were packinghouses and/or processors. The larger firms in the
sample handled fruit from throughout the citrus-producing regions.
The five firms with the largest picking volume in the sample were
responsible for 54.9 percent of the total boxes of fruit represented
in the sample. The five firms with the largest hauling volume in
the sample accounted for 50.8 percent of the fruit represented in
the sample and the five firms with the lowest hauling volume accounted
for only 7.3 percent of the fruit represented in the sample.
Picking cost information was available on 32.3 million boxes of
fruit or approximately 14.0 percent of total Florida production
[4, p. 7]. Hauling cost information was available on 40.8 million
boxes of fruit or approximately 17.6 percent of total Florida pro-
duction [4, p. 7]. Picking cost information was provided on an
average of 1.7 million boxes per firm and hauling cost information
was provided on an average of 2.0 million boxes per firm. Five firms
provided data on less than 1 million boxes while ten 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 diffi-
cult to determine the services performed, the kind of fruit and the
number of boxes hauled. However, in many firms, costs for con-
tracting were inseparably mixed with the information on services
performed by the firm's 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


1Some 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
Hooks [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 pro-
vided information by type of fruit. For those firms providing only
total dollar amounts for each expense item for picking, roadsiding
and hauling operations, it was first necessary to determine how
much of each expense item should be allocated to picking and to
hauling. Then it was necessary 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 comparison
among types of fruit depends on information provided by the firms
that do provide comparisons.
It has been documented that distance [2], hauling methods [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 differently than fruit delivered to packing-
houses. 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, tangerines and tangelos 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,
80 percent for grapefruit, 87 percent for tangerines and 84 percent
for tangelos. The amount paid the fruit picker was approximately
68 percent of the labor cost.
The hauling operation refers to the transportation of fruit
from the roadside to the processing plant of fresh packinghouse.
Labor, including payroll taxes and workmen's compensation insurance
accounted for 31 percent of the total hauling cost. Other items of
cost were repairs 26 percent, depreciation 12 percent, fuel 13 per-
cent and administration 8 percent. Hauling cost for 1977-78 increased
5.8 percent from the previous season.
The combined picking and hauling costs for 1977-78 (Table 1)
were obtained by adding the picking cost for each type of fruit to
the hauling cost. Labor costs accounted for 74, 71, 81, and 77'-percent






Table 1.--Estimated average cost per box for picking and hauling citrus fruits for fresh packing and processing,
1977-78 season


Service performed and commodity
Hauling


Total Pick & Haul


Oranges Grapefruit Tangerines Tangelos plant Oranges


Grapefruit Tangerines Tangelos


Number of operators
Average volume


19 18 18 11 20
1,219,333 364,671 70,872 85,665 2,041,211


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


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


7.06
58.96
4.53

1.19
71.74
15.03
86.77

2.53
5.94
.31
2.48
1.17
.86
.21
.18
.37
14.05
4.68
105.50


6.30
41.00
5.51

.95
53.76
11.86
65.62

2.70
6.11
.28
2.44
.92
.42
.08
.09
.35
13.39
3.06
82.07


12.26
110.06
9.20

1.35
132.87
27.74
160.61

3.10
5.66
.53
4.98
1.64
.87
.22
.08
.45
17.53
7.51


10.29
73.23
6.69

2.01

16.99
109.21


3.06
5.79
.37
3.29
1.91
.74
.08
.19
.56
15.99


.09


4.20
.40
4.69
.96
5.65

2.42
4.74
.54
2.23
.71
.06
.04

.30
11.04


4.87 1.49


7.15
58.96
4.53
4.20
1.59
76.43
15.99
92.42

4.95
10.68
.85
4.71
1.88
.92
.25
.18
.67
25.09
6.17


185.65 130.07 18.18 123.68


6.39
41.00
5.51
4.20
1.35
58.45
12.82
71.27

5.12
10.85
.82
4.67
1.63
.48
.12
.09
.65
24.43
4.55
100.25


12.35
110.06
9.20
4.20
1.75
137.56
28.70
TIb .~Z


5.52
10.40
.97
7.21
2.35
.93
.26
.08
.75
28.57
9.00


10.38
73.23
6.69
4.20
2.41
96.91
17.95
114.86

5.48
10.53
.91
5.52
2.62
.80
.12
.19
.86
27.03
6.36


Range in costs--low 74.03 57.77 146.79 114.87 11.08 89.90 73.64 162.66 127.79
--high 129.67 99.93 248.78 157.84 36.11 165.78 135.52 284.89 193.95
Standard deviation 14.69 11.65 26.91 14.94 6.02 18.95 16.60 31.76 20.35
aIncludes foremen.


bAlso includes workmen's
CIncludes management and
audit, advertising, dues and


compensation
office salaries, office supplies, auto travel and entertainment, interest
subscriptions; donations and telephone and telegraph.


paid, legal and


d
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.


Picking


203.83 148.25







of total picking and hauling costs for oranges, grapefruit, tan-
gerines, and tangelos respectively.

COST TRENDS


Citrus picking and hauling costs increased significantly during
the 1977-78 season (Table 2). Total picking and hauling costs for
oranges, grapefruit, tangerines and tangelos increased 11.2, 10.4,
6.5 and 14.1 percent from the 1976-77 season. Some of the season-to-
season variation in cost for each service is due to change in the
firms in the sample. However the long-term trend shows that costs
have increased steadily over the past 22 seasons(Table 2).
Orange picking and hauling costs decreased relative to the
delivered-in value of oranges for 1977-78 (Table 3). During the first
five seasons reported in Table 3, picking and hauling costs average
16.4 percent of the per-box delivered-in price of oranges. During
the last five-year period, picking and hauling costs averaged 36 per-
cent of the delivered-in price. In the 1977-78 season, picking and
hauling costs represented 23 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 year. With few exceptions, the increases
for all types of fruit have been very steady. For the 1977-78 season,
orange and grapefruit picking and hauling costs are 2.4 times the
levels during the base period, while tangerine costs are estimated to
be 1.9 times 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,
has shown the greatest increase relative to the base period. While
Table 4 shows that total picking and hauling costs for oranges in
1977-78.were 244 percent of the base-period levels, picking labor
has increased to 264.percent of the base period. From the base period
(1960-61 through 1964-65), total picking and hauling costs for oranges







Table 2.--Average cost per box for picking and hauling citrus fruits,
28 seasons, 1950-51 to 1977-78a


mp Picking & loading Total picking,
Season Sample Haul- loading & hauling
firms ing Grape- Tanger- OGrape- Tanger-
Oranges fruit ines Oranges fruit ines

No. ------------------Cents per box-----------------


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

1975-76
1976-77
1977-78


10.31
9.81
9.71
9.61
9.38

9.47
9.27
11.31
11.46
11.23

11.17
10.41
12.9
13.73
11.66

11.96
.10.74
13.32
11.98
13.18

13.04
13.61
14.70
15.66
15.36

15.45
17.19
18.18


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

85.26
94.00
105.50


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

69.05
73.62
82.07


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

157.82
174.16
185.65


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

100.71
111.19
123.68


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

84.50
90.81
100.25


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

173.27
191.35
203.83


aData for seasons prior to 1977-78 are from Hooks [5].








Table 3.--Relationship of picking and hauling cost to the per-box price
of oranges used for concentrate, 19 seasons, 1960-1978

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


--------Dollars per box-------
2.54 .45
3.47 .46
2.26 .44
2.71 .56
5.25 .57


3.37
2.28
1.29
2.76
2.70

1.94
2.07
2.91
2.36
2.58

2.41
3.11
2.59
5.28


.55
.58
.57
.67
.70

.74
.78
.84
.97
1.07

1.00
1.01
1.11
1.24


-----Percent-------
18
13
19
21
11

16
25
44
24
26

38
38
29
41
41

41
32
43
23


a[3, p. 10A]
p
From Table 1.

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


1960
1961
1962
1963
1964

1965
1966
1967
1968
1969

1970
1971
1972
1973
1974


1975
1976
1977
1978







Table 4.--Index.of citrus picking and hauling costs,
1977-78 seasons (1960-61 1964-65 = 100)


1960-61 through


Total picking, loading and hauling
Season index for

Oranges Grapefruit Tangerines
--------------- -Idex---------------------
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
1976-77 219 221 182
1977-78 244 244 194





Table 5.--Changes in the cost items that make up estimated total picking and hauling costs for
oranges, 18 seasons, 1960-61 through 1977-78 (Index = 1960-61 to 1964-65 average)

Fuel, oil
Season Picking Labor Other labor repairs Administratve
l re rand other
depreciation

C/box Index C/box Index C/box Index /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
1976-77 54.96 246 27.60 211 19.29 210 9.34 148
1977-78 58.96 264 33.46 255 20.34 221 10.92 173


aIncludes
and workmen's


supervisory, loaders,
compensation.


drivers, semi-drivers, miscellaneous and payroll taxes


bIncludes licenses, taxes, insurance, supplies, equipment rental, migratory labor
Expense and miscellaneous costs.




11


are estimated to have increase 72.8 cents and picking labor costs
have increased 36.6 cents; that is, 50 percent of the increase is
accounted for by picking labor cost increases. Labor costs have in-
creased relatively more than any other component and also account for
a major share of the total absolute increase.











SELECTED REFERENCES


[1] Bownan, 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 Processing Plants in Florida.
Unpublished M.S. thesis, University of Florida, Gainesville,
1969.


[3] Florida Citrus Processors Association.
Season. Winter Haven: 1979.


Statistical Summary, 1977-78


[4] Florida Division of Fruit and Vegetable Inspection. .1977-78 Season.
Annual Report. Winter Haven: 1978.

[5] Hooks, R. Clegg, A. H. Spurlock and Richard L. Kilmer. Estimated
Costs of Picking and Hauling Florida Citrus Fruits, 1976-77.
Food and Resource Economics Department Economic Information
Report 94. Gainesville: University of Florida, July 1978.


















This public document was promulgated at an annual cost of $779.00 or
$0.78 per copy to report citrus harvesting research results to country
agricultural directors and firms and agencies in the citrus industry.




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