<%BANNER%>
HIDE
 Front Cover
 Abstract
 Table of Contents
 Main
 Reference














Estimated costs of packing and selling fresh Florida citrus
ALL VOLUMES CITATION SEARCH THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00026328/00002
 Material Information
Title: Estimated costs of packing and selling fresh Florida citrus
Series Title: Economic information report
Physical Description: v. : ; 28 cm.
Language: English
Creator: University of Florida -- Food and Resource Economics Dept
Publisher: Food and Resource Economics Dept., Agricultureal Experiment Stations, Institute of Food and Agricultural Sciences, University of Florida.
Place of Publication: Gainesville
Creation Date: 1975
Frequency: annual
regular
 Subjects
Subjects / Keywords: Citrus fruit industry -- Estimates -- Periodicals -- Florida   ( lcsh )
Genre: statistics   ( marcgt )
serial   ( sobekcm )
 Notes
Dates or Sequential Designation: 1973-74 Season
 Record Information
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 001546940
oclc - 05037813
notis - AHG0478
lccn - 79641526 //r892
System ID: UF00026328:00002
 Related Items
Preceded by: Costs of packing and selling Florida fresh citrus fruits

Table of Contents
    Front Cover
        Front Cover
    Abstract
        (MULTIPLE)
    Table of Contents
        Page i
        Page ii
    Main
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
    Reference
        Page 18
Full Text

R. Clegg Hooks
Richard L. Kilmer


Economic Information


Report 72


Estimated


Costs


of Packing


and Selling Fresh Florida Citrus,


1975-76


Season


May 1977


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













ABSTRACT


Packing costs have increased steadily over the past 16 seasons
and the trend continued through the 1975-76 season. Packing costs
for two 4/5-bushel cartons of Florida oranges and grapefruit were
estimated at $2.22 and $2.27, an increase of 1.8 and 2.9 percent
over 1974-75. Tangerine and tangelo packing costs for two 4/5-
bushel cartons were estimated at $2.59 and $2.35, an increase of 1.6
percent for tangerines. The 1975-76 estimates were based on accounting
information obtained from 39 Florida packinghouses.

Key words: Fresh citrus packing costs, packinghouses cost trends,
fresh fruit, container costs, labor costs.


























ACKNOWLEDGEMENTS


We wish tp express our appreciation to the participant Packinghouses
for their excellent cooperation, to Dr, Daniel Tilley and Mr, A. H.
Spurlock for their counsel and to Ms. Pamela Ppeakqs and'Mrs. Johnette
Arnold for their clerical and secretarial assistance.














TABLE OF CONTENTS

Page

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

SUMMARY . . . . .

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

DATA COLLECTION .... . . .. . .. 2

WEIGHTED AVERAGE PACKING AND BULK HANDLING COSTS . . 6

COST TRENDS . . . . . ....... .. 12

SELECTED REFERENCES . . . . ... .. .. ..18



LIST OF TABLES

Table Page

1 Distribution of citrus handled by class of fruit, 39
Florida packinghouses, 1975-76 season . .... 3

2 Distribution of the sample packinghouses by total volume
packed compared with the industry distribution of firms
in Florida by total volume packed, 1975-76 season . 4

3 Percent of total fruit received which was packed for
shipment by kind of fruit and packinghouse location; 38
packinghouses, 1975-76 season . . 4

4 Volume of citrus handled and total packing and selling
cost by type of container, 39 Florida packinghouses,
1975-76 season . . . .... .. 5

5 Weighted average costs of packing and selling Florida
oranges per 1 3/5-bushel equivalent by type of container,
1975-76 season . . . . .. 7

6 Weighted average costs of packing and selling Florida
grapefruit per 1 3/5-bushel equivalent by type of container,
1975-76 season . . . . . 9









LIST OF TABLES, continued


Table Pag'

7 Weighted average costs of packing and selling Florida
tangerines and tangelos per 1 3/5-bushel equivalent
by type of container, 1975-76 season . . .. .11

8 Weighted average costs of handling bulk Florida citrus,
1975-76 season . . . .... ..... 13

9 Weighted average costs of handling Florida citrus
eliminations, 1975-76 season . . .... 14

10 Percentage change in the items that make up the total
cost of packing 1 3/5-bushel Florida oranges and grape-
fruit in two 4/5-bushel cartons, 1975-76 over 1974-75 .15

11 Total cost per 1 3/5-bushel equivalent for packing and
selling Florida citrus by type of pack, 1959-60
through 1975-76 seasons . . . .... 16

12 Value of packed 4/5-bu. cartons of Florida oranges and
grapefruit relative to packing costs, years, 1967-68
through 1975-76 seasons, 1 3/5-bushel equivalent boxes .17


MMMMMMM













ESTIMATED COSTS OF PACKING AND SELLING
FRESH FLORIDA CITRUS, 1975-76 SEASON


R. Clegg Hooks and Richard L. Kilmer


SUMMARY


Packing costs for two 4/5-bushel cartons of Florida oranges and
grapefruit are estimated at $2.221 and $2.27, respectively, for the
1975-76 season. The estimates are 1.8 and 2.9 percent above 1974-75
season estimates. Tangerine packing costs for two 4/5-bushel cartons
are estimated at $2.59, up 1.6 percent from previous season estimates.
For the 1975-76 season tangelo packing costs were estimated separately.
The cost to pack two 4/5-bushel cartons of tangelos was $2.35.
Packing costs have increased steadily over the past 16 seasons
with the greatest increases shown in direct and indirect operating
expenses.
The 1975-76 estimates are based on accounting information obtained
from 39 Florida packinghouses.


SAMPLE FIRMS


The 39 sample Florida packinghouses packed 20,437,411 equivalent



In past seasons, tangelo packing costs were included in orange
packing costs. This season, the cost of packing tangelos has been
reported separately. This change in reporting will cause packing costs
for oranges to increase relatively less than if tangelo packing costs
had continued to be included in oranges. This is predicated on
information in this report which shows average tangelo packing cost
to be greater than average orange packing cost (Table 4).



R. CLEGG HOOKS is an assistant in Agricultural Economics and
RICHARD L. KILMER is an Assistant Professor in Food and Resource Economics.


I









1 3/5-bushel boxes or approximately 56 percent of total Florida fresh
fruit shipments [2]. As indicated in Table 1, the sample firms
provided information on a total of over 53 million boxes (including
eliminations and direct-to-cannery fruit) or 22 percent of total
Florida citrus production [2,p.6].
The distribution of firms by size category shown in Table 2
indicates that the proportion of existing larger firms represented
in the sample is greater than the proportion of smaller firms in the
sample. The average volume packed per packinghouse for all 167
Florida packinghouses operating during the 1975-76 season was 226,820
equivalent 1 3/5-bushel:boxes [2], while the average sample
packinghouse packed 524,036 equivalent 1 3/5-bushel boxes. This was
65.3 percent of the total volume that went through houses with the
balance composed of eliminations (Table 3). The number and type of
firms in the sample are restricted by availability of accurate data
and firms' willingness to provide information.


DATA COLLECTION


Most of the firms provided information from their auditors' per-box
cost analysis reports. The average costs of packing the more important
containers reported by the sample firms are shown in Table 4.
For those firms that did not allocate costs to different types of
fruit or packages, per-box cost distributions are based on information
provided by houses that keep more detailed records. Quite often.
auditors' reports did not show labor costs for labor categories and it
was necessary to distribute total per-box labor costs into the
categories shown in the following tables. Again the labor cost
distribution was based on information available from packinghouses
showing costs for each labor category.
In general, the firns tended to use similar methods for allocating
materials, general and administrative, and selling expenses, but
labor and other direct operating expenses were allocated by various
methods.
Two different auditing philosophies were reflected by the labor
and direct operating cost allocations shown in the auditors' reports.








Table l.--Distribution of citrus handled by class of fruit,
39 Florida packinghouses, 1975-76 season


Class of fruit


Total volume


1 3/5-bushel equivalent


14 East Coast packinghouses
Packed fruit
Cannery fruit through house
Total through house
Direct, grove-to-cannery
Total

25 Interior packinghouses
Packed fruit
Cannery fruit through house
Total through house
Direct, grove-to-cannery
Total

39 packinghouses
Packed fruit
Cannery fruit through house
Total through house
Direct, grove-to-cannery
Total


6,896,603
2,789,857
9,686,460
671,595
10,358,055


13,540,808
8,050,601
21,591,409
21,118,162
42,709,571


20,437,411
10,840,458
31,277,869
21,789,757
53,067,626


aGrove-to-cannery fruit data were not obtained from
15 houses; had these been included, it would have increased
the volume going directly to cannery. One firm did not
supply information on eliminated fruit.
b
Cannery fruit through the house is fruit with accept-
able internal quality but does not meet fresh market size
or external appearance standards. Cannery fruit through
the house is often called eliminated fruit or eliminations.







Table 2.--Distribution of the sample packinghouses by total volume
packed compared with the industry distribution of firms
in Florida by total volume packed, 1975-76 season


SPercentage of
Total volume Number of Nu o packinghouses
1 3/5 bushel packinghouses in the industry
equivalent in Floridaa included in included in
the sample the sample


Less than 50,000 71 0 0.0
50,001 100,000 15 2 13.3
100,001 200,000 11 1 9.1
200,001 300,000 20 8 40.0
300,001 400,000 15 7 46.7
400,001 600,000 13 4 30.8
Greater than 600,000 22 17 77.3

Total 167 39 23.4


aCalculated from [2].


Table 3.--Percent of total fruit
packed for shipment by
packinghouse location;
1975-76 season


received which was
kind of fruit and
38 packinghouses,


East Coast Interior All
Kind of fruit
houses houses houses


Percent Percent Percent

Oranges 64.8 51.1 59.8
Grapefruit 71.9 64.5 68.6
Tangerines 76.8 70.1 70.8
Tangelos 74.5 71.6 71.9

All fruit 71.2 62.7 65.3









Table 4.--Volume of citrus handled and total packing and selling cost by type of
container, 39 Florida packinghouses, 1975-76 season


Total weighted
Commodity and Sample Total average packing
type of container firms volume and selling
cost per box


----1 3/5-bushel equivalent----


Oranges"
4/5-bu. fiberboard carton
5-lb. vexar bag in master carton
5-lb. poly. bag in master carton
4/5-bu. fiberboard carton--export
4/5-bu. fiberboard carton--white
heavy duty
8-1b. vexar bag in master carton
8-1b. poly. bag in master carton
Bulk in truck sales
Field box
2/5-bu. carton
Miscellaneous containers
Total packed oranges
Grapefruit
4/5-bu. fiberboard carton
4/5-bu. fiberboard carton--export
5-lb. poly. bag in master carton
5-lb. vexar bag in master carton
Field box
8-lb. vexar bag in master carton
8-lb. poly. bag in master carton
Bulk in truck sales
Miscellaneous containers
Total packed grapefruit
Tangerines
4/5-bu. fiberboard carton
4/5-bu. Bruce box--flat
Miscellaneous containers
Total packed tangerines
Tangelos
4/5-bu. fiberboard carton
5-lb. poly. bag in master carton
5-1b. vexar bag in master carton
Miscellaneous containers
Total packed tangelos
Miscellaneous varieties
Miscellaneous containers
Total packed fruit
Bulk fruit through house to cannery
Oranges
Grapefruit
Tangerines
Tangelos
Miscellaneous varieties
Total bulk through house


4,482,182
1,309,132
713,904
324,929

207,456
100,926
100,627
93,852
35,238
32,902
212,214
7,613,362

6,679,022
1,112,569
949,91.1
639,696
152,907
63,958
43,504
12,107
260,157
9,913,831

1,254,410
199,141
444,807
1,898,358

637,065
48,282
25,695
180,413
891,455


120,405
20,437,411


5,108,530
4,531,151
781,860
347,593
71,323
10,840,458


$2.22
3.11
2.83
2.42

2.48
2.99
2.86
1.24
1.42
3.83
2.73
$2.47

$2.27
2.38
2.91
3.21
1.10
2.88
2.74
1.01
2.62
$2.40

$2.59
3.75
2.97
$2.80

$2.35
3.04
3.25
2.98
$2.54

$3.59
$2.47


$0.30
.21
.43
.23
.16
$0.27


aSee footnote 1, page 1.





6


One philosophy is based on the premise that all labor and other direct
operating costs should be allocated to the packed fruit. The other
philosophy is based on the premise that at least some of the direct
operating costs (unloading, grading, etc.) should be borne by the
2
eliminations.
Of the 39 firms in the sample, 19 firms supplied information
consistent with the first philosophy, 19 firms supplied information
consistent with the second philosophy and one firm did not report
elimination handling costs. No correction or adjustment of either
auditing system was made so that the averages shown in the following
tables reflect both auditing philosophies. The procedures used in
calculating the averages shown in this report are the same as those
used in previous reports in this series.
In all tables, administrative expense includes management and
office salaries, office expense, auto and travel, interest paid,
telephone and telegraph. Selling includes sales salaries, travel,
telephone and telegraph, and brokerage. Other items include Florida
citrus advertising tax, federal-state inspection, precooling, coloring
and waxing, and various industry assessments.


WEIGHTED AVERAGE PACKING AND BULK HANDLING COSTS


The weighted average costs of packing and selling Florida citrus
in various types of containers are presented in Tables 5, 6 and 7.
Detailed costs are shown for only the more important containers listed
in Table 4. Costs for the 4/5-bushel fiberboard carton for Interior
and East Coast houses are shown separately.
The costs shown are the weighted average costs for the sample
packinghouses, i.e., the total monetary costs of each item for all
houses were divided by the total number of boxes packed. The use of
weighted averages tends to result in a lower estimated cost than
would the simple average because larger houses, which usually have



2Eliminations are fruit intended for fresh use but not packed
because of exterior appearance or size. Most eliminations are sent to
processing plants.









Table 5.--Weighted average costs of packing and selling Florida orangesa
per 1 3/5-bushel equivalent by type of container, 1975-76 season


4/5-bu. fiberboard box
Type of container
East Interior All Export
Coast houses houses all houses


Number of packinghouses 9 24 33 10

Average volume packed
(1 3/5-bushel equivalent) 55,738 165,855 135,823 32,492


Item of cost ------$ per 1 3/5-bushel equivalent-------
Materials
Containers 0.6973 0.6845 0.6860 0.7636
Other materials 0.0268 0.0216 0.0222 0.0509
Total materials 0.7241 0.7062 0.7082 0.8145
Labor
Receive, truck, dump 0.0537 0.0486 0.0491 0.0549
Cratemaking & labeling 0.0664 0.0682 0.0680 0.0748
Foremen, graders, others 0.1891 0.1800 0.1810 0.1968
Packing 0.1708 0.1555 0.1572 0.1617
Truck, check, load 0.1273 0.1080 0.1101 0.1126
Payroll taxes, comp. ins. 0.1067 0.0810 0.0839 0.0819
Total labor 0.7139 0.6412 0.6493 0.6826
Other direct operating
Power, lights, water 0.0422 0.0387 0.0391 0.0421
Repairs & maintenance 0.1017 0.1014 0.1014 0.0916
Misc. supplies & expense 0.0574 0.0405 0.0424 0.0479
Total other direct 0.2013 0.1807 0.1830 0.1817
Indirect operating
Insurance--fire & casualty 0.0268 0.0136 0.0151 0.0175
Taxes & licenses 0.0181 0.0173 0.0174 0.0216
Depreciation 0.1226 0.0901 0.0938 0.1256
Rent 0.0005 0.0027 0.0024 0.0
Total indirect operating 0.1680 0.1238 0.1287 0.1647
Total packing expense 1.8073 1.6518 1.6692 1.8435
Administrative 0.1417 0.0982 0.1031 0.0999
Selling 0.2016 0.1593 0.1640 0.1832
Other items 0.2300 0.2855 0.2793 0.2945
Total costs 2.3806 2.1948 2.2156 2.4211

Range in total costs--low 1.9095 1.8047 1.8047 2.0509
--high 2.9576 3.1481 3.1481 3.0308
Standard deviation 0.3783 0.2735 0.2931 0.3605


Continued















Table 5.--Weighted average costs of packing and selling Florida oranges per 1 3/5
bushel equivalent by type of container, 1975-76 season--Continued


Type of container


5-lb. poly.
bag i n
master
carton


8-1b. poly.
bag in
master
carton


5-lb. vexar
bag in
master
carton


8-lb. vexar
bag in
master
carton


Number of packinghouses 22 18 22 18


Average volume packed
(1 3/5-bushel equivalent)


Item of cost

Materials
Containers
Other materials
Total materials
Labor
Receive, truck, dump
Cratemaking & labeling
Foreman, graders, others
Packing
Truck, check, load
Payroll'texes, comp. ins.
Total labor
Other direct operating
Power, lights, water
Repairs & maintenance
Misc. supplies & expense
Total other direct
Indirect operating
Insurance--fire & casualty
Taxes & licenses
Depreciation
Rent
Total indirect operating

Total packing expense
Administrative
Selling
Other items
Total costs


------------- pLer_ 3/5-buslel erluivalent-------------


1.1849
0.0254
1.2103


0.0448
0.0647
0.2191
0.2539
0.0952
0.0999
0.7777


0.0464
0.1060
0.0479
0.2002


0.0121.
0.0166
0.0916
0.0055
0.1258
2.3140
0.1066
0.1463
0.2602
2.8271


1.3060
0.0320
1.3379


0.0431
0.0700
0.2221
0.2342
0.1037
0.0912
0.7643


0.0420
0.1085
0.0407
0.1912


0.0096
0.0132
0.0736
0.0
0.0965
2.3899
0.0843
0.3335
0.2511
2.8589


1.4629
0.0266
1.4895


0.0449
0.0777
0.2173
0.2607
0.0971
0.0959
0.7936


0.0430
0.1052
0.0433
0.1915


0.0122
0.0162
0.0858
0.0037
0.1178

2.5925
0.1083
0.1436
0.2672
3.1116


1.h409
0.0242
1.4651


0.0412
0.0627
0.2014
0.2479
0.0869
0.0856
0.7255


0.0386
0.1000
0.0408
0.1794


0.0112
0.0143
0.0779
0.0
0.1033
2.4734
0.1217
0.1384
0.2538
2.9873


Range in total costs--low 2.4554 2.5367 2.7103 2.6583
--high 3.8086 3.5506 4.6200 3.9012
Standard deviation 0.3181 0.2333 0.3232 0..2469


aSee footnote 1, page 1.


32,450


5,590


59,505


5,607


-I- ---~-LI------- -----------







Table 6.--Weighted average costs of packing and selling Florida grapefruit
per 1 3/5-bushel equivalent by type of container, 1975-76
season


4/5-bushel fiberboard box
Type of container
East Interior All Export
Coast houses houses all houses

Number of packinghouses 14 23 37 13

Average volume packed
(1 3/5-bushel equivalent) 316,921 97,483 180,514 85,582


Item of cost --------$ Per 1 3/5-bushel equivalent-------
Materials
Containers 0.7478 0.6810 0.7254 0.8420
Other materials 0.0323 0.0145 0.0263 0.0563
Total materials 0.7801 0.6955 0.7517 0.8983
Labor
Receive, truck, dump 0.0485 0.0434 0.0468 0.0430
Cratemaking & labeling 0.0715 0.0713 0.0714 0.0575
Foremen, graders, others 0.1648 0.1265 0.1520 0.1357
Packing 0.1386 0.1304 0.1359 0.1330
Truck, check, load 0.1285 0.3039 0.1202 0.1178
Payroll taxes, comp. ins. 0.1000 0.0739 0.0912 0.0740
Total labor 0.6520 0.5495 0.6175 0.5610
Other direct operating
Power, lights, water 0.0413 0.0366 0.0397 0.0378
Repairs & maintenance 0.1035 0.0768 0.0945 0.0844
Misc. supplies & expense 0.0335 0.0558 0.0410 0.0445
Total other direct 0.1783 0.1693 0.1752 0.1667
Indirect operating
Insurance--fire & casualty 0.0355 0.0087 0.0265 0.0143
Taxes & licenses 0.0154 0.0126 0.0145 0.0126
Depreciation 0.1064 0.0745 0.0957 0.0901
Rent 0.0030 0.0048 0.0036 0.0003
Total indirect operating 0.1603 0.1007 0.1403 0.1173
Total packingexpense 1.7707 1.5149 1.6848 1.7433
Administrative 0.1925 0.1689 0.1846 0.2219
Selling 0.1958 0.1474 0.1795 0.1879
Other items 0.2230 0.2208 0.2223 0.2296
Total costs 2.3820 2.0519 2.2712 2.3827

Range in total costs--low 1.8591 1.6727 1.6727 1.8868
--high 3.0375 2.8632 3.0375 2.7810
Standard deviation 0.2625 0.3132 0.3209 0.1592


Continued














Table 6.--Weighted average
per 1 3/5-bushel
--Continued


costs of packing and selling Florida grapefruit
equivalent by type of container, 1975-76 season


Type of container


5-1b. poly.
bag in
master
carton


8-1b. poly.
bag in
master
carton


5-lb. vexar
bag in
master
carton


8-lb. vexar
bag in
master
carton


Number of packinghouses 27 18 24 18

Average volume packed
(1 3/5-bushel equivalent) 35,181 2,416 26,654 3,553


Item of cost --------------$ Per 3/5-bushel equivalent-----------
Materials
Containers 1.2212 1.2603 1.5613 1.3870
Other materials 0.0218 0.0336 0.0264 0.0315
Total materials 1.2431 1.2939 1.5877 1.4185
Labor
Receive, truck, dump 0.0451 0.0443 0.0469 0.0422
Cratemaking & labeling 0.0719 0.0740 0.0706 0.0689
Foremen, graders, others 0.2065 .0.1983 0.2230 0.2141
Packing 0.2408 0.2185 0.2584 0.2165
Truck, check, load 0.1032 0.1070 0.1037 0.0973
Payroll taxes, comp. ins. 0.1051 0.0856 0.1045 0.0863
Total labor 0.7724 0.7276 0.8070 0.7253
Other direct operate
Power, lights, water 0.0480 0.0358 0.0469 0.0378
Repairs & maintenance 0.0954 0.0911 0.1041 0.0915
Misc. supplies & expense 0.0697 0.0509 0.0569 0.0534
Total other direct 0.2130 0.1778 0.2078 0.1827
Indirect operating
Insurance--fire & casualty 0.0126 0.0082 0.0105 0.0089
Taxes & licenses 0.0158 0.0118 0.0150 0.0129
Depreciation 0.0940 0.0668 0.0749 0.0641
Rent 0.0056 0.0001 0.0061 .0.0001
Total indirect operating 0.1280 0.0869 0.1065 0.0860

Total packing expense 2.3566 2.2862 2.7091 2.4125
Administrative 0.1878 0.1039 0.1577 0.1167
Selling 0.1554 0.1444 0.1362 0.1535
Other items 0.2081 0.2063 0.2116 0.1982
Total costs 2.9079 2.7408 3.2145 2.8809


Range in total costs--low 2.3354 2.3676 2.6533 2.5372
--high 3.9847 3.5740 4.0490 4.0751
Standard deviation 0.4181 0.2521 0.3224 0.3115


_ ~I~~_ ~
_ ___I_~ _~I__








Table 7.--Weighted average costs of packing and selling
Florida tangerines and tangelos per 1 3/5-bushel
equivalent by type of container, 1975-76 season


Tangerines Tangelos
Type of container 4/5 bushel 4/5 bushel
carton carton

Number of packinghouses 24 10

Average volume packed
(1 3/5-bushel equivalent) 52,267 63,706


Item of cost $ per 1 3/5-bu. equivalent
Materials
Containers 0.7442 0.7557
Other materials 0.0196 0.0226
Total materials 0.7638 0.7783
Labor
Receive, truck, dump 0.0705 0.0634
Cratemaking & labeling 0.0728 0.0669
Foremen, graders, others 0.2781 0.2158
Packing 0.2037 0.1587
Truck, check, load 0.1114 0.1176
Payroll taxes, comp. ins. 0.1199 0.0996
Total labor 0.8563 0.7220
Other direct operating
Power, lights, water 0.0617 0.0491
Repairs & maintenance 0.1517 0.1217
Misc. supplies & expense 0.0686 0.0550
Total other direct 0.2820 0.2258
Indirect operating
Insurance--fire & casualty 0.0199 0.0104
Taxes & licenses 0.0250 0.0219
Depreciation 0.1197 0.1073
Rent 0.0043 -0.0062
Total indirect operating 0.1688 0.1458
Total packing expense 2.0709 1.8719
Administrative 0.1205 0.1037
Selling 0.1687 0.1528
Other items 0.2271 0.2259
Total costs 2.5872 2.3543

Range in total costs--low 2.1022 1.8155
--high 3.9782 3.0368
Standard deviation 0.4337 0.2996







lower costs, influence the average more than smaller houses.
Not all of the houses pack every container listed in Table 4.
The cost estimates presented in Tables 5, 6 and 7 are weighted averages
for the firms packing that container. Because the sample houses and
weights (volumes) change with each container, some of the cost differ-
ences among containers can be attributed to the composition of firms
packing each container. The costs of handling and selling bulk fruit
are shown in Table 8.
The weighted average costs allocated to eliminations are shown
in Table 9. Note that both the range and standard deviation reported
at the bottom of Table 9 are quite large relative to the weighted
average. The broad range reflects differences in accounting procedures
used to allocate expenses to eliminations.


COST TRENDS


Changes in the reported costs of packing oranges and grapefruit
in 4/5-bushel cartons from the 1974-75 to 1975-76 season are shown in
Table 10. Total packing and selling costs for oranges and grapefruit
in 4/5-bushel cartons increased about two and three percent.
Specifically, material costs increased five and nine percent for
oranges and grapefruit while labor costs increased one percent for
oranges and decreased three percent for grapefruit. Other direct
operating costs were unchanged for oranges but decreased 10 percent
for grapefruit. Finally, administrative costs decreased 10 percent
for oranges but increased 21 percent for grapefruit.
Trends in orange and grapefruit packing costs for the past 17
seasons are reported in Table 11. In general, packing costs have
increased over time; however, the rate of cost increase slowed in the
past year when compared with the change between the 1973-74 and
1974-75 seasons.
The relationship between average packing costs and the average
FOB value of packed fruit for 4/5 bushel cartons of oranges and grape-
f#it in the Interior and Indian River regions for the past 9 seasons
ip shown in Table 12. The changes in the ratio have been cyclical.
The value of fruit has shown greater variability than costs which
have tended to increase over time.








Table 8.--Weighted average costs of handling bulk Florida
citrus, 1975-76 season


Bulk in truck sales
Type of container
Oranges Grapefruit

Number of packinghouses 9 7

Average volume packed
(1 3/5-bushel equivalent) 10,428 1,729


Item of cost $ per 1 3/5-bu. equivalent
Materials
Containers 0.0 0.0
Other materials 0.0030 0.0012
Total materials 0.0030 0.0012
Labor
Receive, truck, dump 0.0528 0.0427
Cratemaking & labeling 0.0219 0.0109
Foremen, graders, others 0.1597 0.1060
Packing 0.0387 0.0390
Truck, check, load 0.0626 0.0650
Payroll taxes, comp. ins. 0.0740 0.0503
Total labor 0.4098 0.3139
Other direct operating
Power, lights, water 0.0197 0.0135
Repairs & maintenance 0.0841 0.0531
Misc. supplies & expense 0.0244 0.0291
Total other direct 0.1282 0.0957
Indirect operating
Insurance--fire & casualty 0.0278 0.0204
Taxes & licenses 0.0143 0.0091
Depreciation 0.0788 0.0506
Rent 0.0 0.0
Total indirect operating 0.1209 0.0801
Total packing expense 0.6619 0.4909
Administrative 0.0823 0.1183
Selling 0.1976 0.2011
Other items 0.2992 0.1997
Total costs 1.2409 1.0100

Range in total costs--low 0.4136 0.3921
--high 1.4253 1.1552
Standard deviation 0.1062 0.1503


asee footnote 1, page 1.








Table 9.--Weighted average costs of handling Florida citrus eliminations,
1975-76 season


Bulk through house to cannery

Orangesa Grapefruit Tangerines Tangelos

Number of packinghouses 35 36 29 14

Average volume packed
(1 3/5-bushel equivalent) 145,958 125,865 26,960 24,828
---- -I


Item of cost
Materials
Containers
Other materials
Total materials
Labor
Receive, truck, dump
Cratemaking & labeling
Foremen, graders, others
Packing
Truck, check, load
Payroll taxes, comp. ins.
Total labor
Other direct operating
Power, lights, water
Repairs & maintenance
Misc. supplies & expense
Total other direct
Indirect operating
Insurance--fire & casualty
Taxes & licenses
Depreciation
Rent
Total indirect operating
Total packing expense
Administrative
Selling
Other items
Total costs


---------$ Per I 3/5-bushel equivalent--------


0.0
0.0013
0.0013

0.0322
0.0001
0.0651
0.0
0.0039
0.0218
0.1230

0.0115
0.0386
0.0130
0.0631

0.0081
0.0060
0.0314
0.0
0.0455
0.2329
0.0666
0.0
0.0003
0.2998


0.0
0.0002
0.0002

0.0127
0.0002
0.0176
0.0
0.0()34
0.0061
0.03:99


0.0045
0.0120
0.0091
0.0::55

0.0020
0.0021
0.0109
0.0
0.0150
0.0806
0.1256
0.0
0.0001
0. 2063


0.0
0.0005
0.0005

0.0432
0.0001
0.0996
0.0
0.0058
0.0376
0.1862

0.0187
0.0642
0.0173
0.1002

0.0109
0.0097
0.0455
0.0
0.0660
0.3529
0.0752
0.0
0.0001
0.4281


0.0
0.0
0.0

0.0180
0.0
0.0234
0.0
0.0
0.0119
0.0533

0.0067
0.0312
0.0075
0.0454

0.0026
0.0054
0.0198
0.0
0.0279
0.1265
0.1030
0.0
0.0001
0.2296


aSee footnote 1, page 1,


Range in total costs--low 0.0323 0.0323 0.0323 0.0323
--high 0.6910 0.4933 0.8667 0.6290
Standard deviation 0.1715 0.0905 0.2597 0.2137









Table 10.--Percentage change in the items that make up the total cost of packing 1 3/5-bushel
Florida oranges and grapefruit in two 4/5-bushel cartons, 1975-76 over 1974-75


Volume packed Orangesa Grapefruit
(1 3/5-bu. equivalent) 1975-76 1974-75 Change 1975-76 1974-75 Change


$ per 1 3/5-eeuivalent Percent $ per 1 3/5-equivalent Percent
Materials
Containers 0.6860 0.6493 5.7 0.7254 0.6597 10.0
Other materials 0.0222 0.0254 -12.6 0.0263 0.0306 -14.1
Total materials 0.7082 0.6747 5.0 0.7517 0.6903 8.9
Labor
Receive, truck, dump 0.0491 0.0477 2.9 0.0468 0.0588 -20.4
Cratemaking & labeling 0.0680 0.0719 5-4 0.0714 0.0795 -10.2
Foremen, graders, others 0.1810 0.1733 4.4 0.1520 0.1384 9.8
.Packing 0.1572 0.1627 3.4 .0.1359 0.1590 -14.5
Truck, check, load 0.1101 0.1096 0.5 0.1202 0.1111 8.2
Payroll taxes, comp. ins. 0.0839 0.0797 5.3 0.0912 0.0879 3.8
Total labor 0.6493 0.6449 0.7 0.6175 0.6347 2.7
Other direct operating
Power, lights, water 0.0391 0.0336 16.4 0.0397 0.0316 25.6
Repairs & maintenance 0.1014 0.1045 3.0 0.0945 0.0965 2.1
Misc. supplies & expense 0.0424 0.0448 5.4 0.0410 0.0673 -39.1
Total other direct 0.1829 0.1829 0.0 0.1752 0.1954 -10.3
Indirect operating .
Insurance--fire & casualty 0.0151 0.0127 18.9 0.0265 0.0197 34.5
Taxes & licenses 0.0174 0.0152 14.5 0.0145 0.0158 8.2
Depreciation & rent 0.0962 0.0986 2.4 0.0993 0.0991 0.2
-Total indirect operating 0.1287 0.1265 1.7 0.1403 0.1346 4.2
Total packing expense 1.6692 1.6290 2.5 1.6848 1.6550 1.8
Administrative 0.1031 0.1143 9.8 0.1846 0.1524 21.1
Selling 0.1640 0.1640 0.0 0.1795 0.1806 0.6
Other items 0.2793 0.2693 3.7 0.2223 0.2190 1.5
Total costs 2.2156 2.1766 1.8 2.2712 2.2070 2.9


aSee footnote 1, page 1.










Table 11.--Total cost per 1 3/5-bushlel equivalent for pacing and
selling Florida citrus by type of pack, 1959-60 through
1975-76 seasonsa


4/5-bu. $-lb. poly, 8-lb. poly, 5-lb. vexar 8,lb. vexar
Season fiber- bag in bag in bag in bag in
board master master master master
box carton carton carton carton


---------------------------Oranes----------------------------

1959-60 $1.26 $1.66 --
1960-61 1.33 1.71 --
1961-62 1.32 1.69 --
1962-63 1.50 1.96 --
1963-64 1.42 1.88 -- -
1964-65 1.44 1.74
1965-66 1.49 1.88 -- -
1966-67 1.48 1.87 -- $1.99 $1.76
1967-68 1.57 2.02 -- 2.27 2.12
1968-69 1.64 2.14 -- 2.30 2.16
1969-70 1.76 2.25 $2.21 2.35 2.30
1970-71 1.78 2.23 2.42 2.42 2.33
1971-72 1.81 2.27 2.21 2.41 2.30
1972-73 1.86 2.33 2.22 2.52 2.36
1973-74 2.09 2.63 2.52 2.77 2.67
1974-75 2.18 2.79 2.73 3.01 3.00
1975-76b 2.22 2.83 2,86 3.11 2.99

---------------------------Grapf ---- ---r-

1959-60 $1.18 $1.58 $1.52
1960-61 1.20 1.63 1.50
1961-62 1.28 1.62 1.53
1962-63 1.29 1.77 1.69
1963-64 1.29 1.66 1.85
1964-65 1.37 1.56 1.46
1965-66 1.41 1.74 1.69 -
1966-67 1.41 1.76 1.72 $2.05 $1.79
1967-68 1.56 2.07 2.02 2.27 2.10
1968-69 1.57 1.98 1.99 2.18 2.04
1969-70 1.66 2.12 2.13 2.29 2.16
1970-71 1.71 2.14 2.19 2.35 2.21
1971-72 1.72 2.09 2.12 2.31 2.18
1972-73 1.77 2.16 2.01 2.37 2.10
1973-74 2.06 2.52 2.57 2.77 2.67
1974-75 2.21 2.72 ;.61 3.01 3.28
1975-76 2.27 2.91 2.74 3.21 2.88


Information for seasons prior to 1975-76 is from Tilley (3].

bsee footnote 1, page 1.








Table 12.--Value of packed 4/5-bu. cartons of Florida oranges and
grapefruit relative to packing costs, years, 1967-68
through 1975-76 seasons, 1 3/5-bushel equivalent boxes


Interior East Coast

Season FOB value FOB value
of packed Packig Ratio of packed Packi Ratioc
fruit cost fruit cost


$ per 1 3/5-bu.
equivalent


Percent $ per 1 3/5-bu.
Perct equivalent


Oranges

1967-68
1968-69
1969-70
1970-71
1971-72

1972-73
1973-74
1974-75
1975-76d


Grapefruit


1967-68
1968-69
1969-70
1970-71
1971-72

1972-73
1973-74
1974-75
1975-76


aFrom Florida Citrus Mutual [1].


Seasons prior to 1975-76 are from


Tilley [3].


CRatio = packing cost + value of packed fruit.

See footnote 1, page 1.


Percent


4.56
4.36
3.86
4.26
5.08

4.66
5.14
5.42
5.64



4.68
4.72
4.60
4.86
5.16

5.30
5.16
5.84
5.34


1.53
1.59
1.63
1.75
1.80

1.86
2.04
2.13
2.19



1.84
1.90
2.01
1.89
2.01

2.14
1.87
1.94
2.05


5.50
4.72
4.60
4.86
5.44

4.80
5.30
5.68
6.12



5.70
4.30
5.04
5.20
5.80

6.12
5.74
6.46
6.02


1.84
1.90
2.01
1.89
2.01

2.14
2.47
2.56
2.38



1.67
1.72
1.81
1.84
1.84

1.96
2.21
2.36
2.38













SELECTED REFERENCES


[1] Florida Citrus Mutual. Annual Statistical Report. Lakeland:
various issues.

[23 Florida Division of Fruit and Vegetable Inspection. 1975-76
Season Annual Re ort. Winter Haven: 1976.

[3] Tilley, Daniel S. Estimated Costs of Packing and Selling Florida
Citrus, 1974-75 Season. Food and Resource Economics Depart-
ment Economic Information Report 54. Gainesville: University
of Florida. June 1976.