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 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/UF00026328/00005
 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: 1977
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: UF00026328:00005
 Related Items
Preceded by: Costs of packing and selling Florida fresh citrus fruits

Table of Contents
    Front Cover
        Front Cover
    Abstract
        Page i
    Table of Contents
        Page ii
        Page iii
    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
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ABSTRACT


Packing costs decreased during the 1977-78 season, the first
decrease in 18 seasons, with the greatest decreases shown in labor,
direct and indirect operating expenses. Packing costs for two 4/5-
bushel cartons of Florida oranges and grapefruit weie estimated at
$2,46 and $2.43, a decrease of 5.4 and 4.7 percent below 1976-77.
Tangerine and tangelo packing costs for two 4/5-bushel cartons were
estimated at $2.85 and $2.73, a decrease of 3.4 percent for tangerines
and 2.8 percent for tangelos. The 1977-78 estimates were based on
accounting information obtained from 34 Florida packinghouses.


Key words: Fresh citrus
trends, fresh fruit, container


packing costs, packinghouses cost
costs, labor costs.


ACKNOWLEDGEMENTS


We wish to express our appreciation to the participant Packinghouses
for their excellent cooperation, and to Mrs. Earlene Livingston and Mrs.
Theresa Zerr for their clerical and secretarial assistance.
















TABLE OF CONTENTS

Page

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

SUMlR . .... ... ..... ...... ....... ..

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, 34
Florida packinghouses, 1977-78 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, 1977-78 season . 4
3 Percent of total fruit received which was packed for
shipment by kind of fruit and packinghouse location; 33
packinghouses, 1977-78 season . . . . 4
4 Volume of citrus handled and total packing and selling
cost by type of container, 34 Florida packinghouses,
1977-78 season ................... ..... 5
5 Weighted average costs of packing and selling Florida
oranges per 1 3/5-bushel equivalent by type of container,
1977-78 season ........................ 7
6 Weighted average costs of packing and selling Florida
grapefruit per 1 3/5-bushel equivalent by type of container,
1977-78 season ............. ...... ... ..9








LIST OF TABLES,


continued


Table


Page


Weighted average costs of


tangelos and


packing


tangerines per


arnd selling Florida


3/5-bushel


equivalent


by type of


container,


1977-


season


. a 1.1


Weighted average costs of handling


1977-


season


xbulk Florida citrus,


. . . . . . 13


Weighted average costs of handling Florida


citrus


eliminations,


1977-78


season


a a a . a .. 14


Percentage change in
cost of packing 1 3/


the items


that make up


the total


5-bushel Florida oranges and grape-


fruit in two 4/5-bushel cartons,


1977-78 over


1976-77


. a 15


Total


cost per


1 3/5-bushel equivalent for packing and


selling Florida citrus by type of pack,


1959-60


through 1977-


Value of packed


seasons

4/5-bu.


. . . 16

cartons of Florida oranges and


grapefruit relative to packing costs,


through 1977-78


seasons,


years,


1967-68


1 3/5-buslel equivalent boxes


. a 17












ESTIMATED COSTS OF PACKING AND SELLING
FRESH FLORIDA CITRUS, 1977-78 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 $2.461 and $2.43, respectively, for the
1977-78 season. The estimates are 5.4 and 4.7 percent below 1976-77
season estimates. Tangerine packing costs for two 4/5-bushel cartons
are estimated at $2.85, down 3.4 percent from previous season estimates,
and the cost to pack two 4/5-bushel cartons of tangelos was $2.73, a
decrease of 2.8 percent.
Packing costs decreased during the 1977-78 season, the first
decrease in 18 seasons, with the greatest decreases shown in labor,
direct and indirect operating expenses.
The 1977-78 estimates are based on accounting information obtained
from 34 Florida packinghouses.

SAMPLE FIRMS


The 34 sample Florida packinghouses packed 16,152,227 equivalent



1Beginning with the 1975-76 season, tangelo packing costs were
reported separately from orange packing costs. This change in re-
porting 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. KIIMER is an Assistant Professor in Food and Resource Economics.








1 3/5-bushel boxes or approximately 49.7 percent of total Florida fresh
fruit shipments [2]. As indicated in Table 1, the sample firms
provided information on a total of over 46.6 million boxes (including
eliminations and direct-to-cannery fruit) or 20.1 percent of total
Florida citrus production [2,p.7].
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 151
Florida packinghouses operating during the 1977-78 season was 215,042
equivalent 1 3/5-bushel boxes [2], while the average sample packing-
house packed 475,066 equivalent 1 3/5-bushel boxes. This was 66.0
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 costs categories and
it was necessary to distribute total per-box labor costs into the cate-
gories 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 firms 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 1.-Distribution of citrus handled by class of fruit,
34 Florida packinghouses, 1977-78 season



Class of fruit Total volume


1 3/5-bushel equivalent


9 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

34 packinghouses
Packed fruit
Cannery fruit through house

Total through house
Direct, grove-to-cannery

Total


2,916,272
1,561,033
4,477,305
749,875
5,227,180


13,235,955
6,762,379

19,998,334
21,327,273

41,325,607


16,152,227
8,323,412

24,475,639
22,077,148

46,552,787


aGrove-to-cannery fruit data were not obtained from 14
houses; had these been included, it would have increased
the volume going directly to cannery. One firm did not
supply information on eliminated fruit.

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, 1977-78 season

Percentage of
Number of packinghouses
Total volume Number of packinghouses in the industry
1 3/5-bushel packinghouses included in included in
equivalent in Floridaa the sample the sample

Less than 50,000 66 1 1.5
50,001 100,000 7 1 14.3
100,001 200,000 14 3 21.0
200,001 300,000 28 8 28.6
300,001 400,000 8 5 62.5
400,001 600,000 15 7 46.7
Greater than 600,000 13 9 69.2

Total 151 34 22.5


calculated from [2].



Table 3.--Percent of total fruit received which was
packed for shipment by kid of fruit and
packinghouse location; 33 packinghouses,
1977-78 season


Kind of f East Coast Interior All
Kind of fruit houses houses houses

Percent Percent Percent

Oranges 58.7 65.2 65.1
Grapefruit 65.2 63.7 64.3
Tangerines 83.0 71.1 71.5
Tangelos 74.8 75.5 75.5

All fruit 65.1 66.2 66.0


aOne firm did not report eliminations.















Table 4.-Volure of citrus handled and total packing and selling cost by type of
container, 34 Florida packinghouses, 1977-76 season
Total weighted
Ccrrodity and Sample Total average packing
type of container firms volume and selling
cost per box

-1 3/5-bushel equivalent


45b. fiberboard carton
5-lb. poly. bag in master carton
5-lb. vexar bag in master carton
8-1b. poly. bag in master carton
8-lb. vexar bag in master carton
4/5-bu. fiberboard carton-export
4/5-bu. fiberboard carton-heavy duty
2/5-bu. carton
Bulk in track sales
Field Box
Miscellaneous containers
Total packed oranges
Grapefruit
4/5-bu. fiberboard carton
5-1b. poly. bag in master carton
5-lb. vexar bag in master carton
8-lb. poly. bag in master carton
8-1b. vexar bag in master carton
4/5-bu. fiberboard carton-export
2/5-bu. carton
Bulk in truck sales
Field Box
Miscellaneous containers
Total packed grapefruit
Tangerines
4/5-b. fiberboard carton
4/5-bu. fiberboard carton-heavy duty
4/5-bu. ruce bor--flat
Miscellaneous containers
Total packed tangerines


Tangelos
4/5-bu. iberboard carton 13
5-1b. poly. bag in master carton 8
5-lb. vexar bag in master carton 8
4/5-bu. fiberboard carton-heavy duty 6
Miscellaneous containers 3
Total packed tangelos 17

Total packed fruit 34


BELk fruit through house to cannery
Oranaes 30
Grapefruit 32
Tangerines 26
Tangelos 16
Total bulk through house 33


3,659,154
647,733
1,502,591
21,803
21,782
147,454
323,274
21,268
77,234
16,983
62,687
6,501,963


32 4,037,062
26 890,378
22 791,531
10 11,215
12 12,512
16 1,016,963
7 13,208
7 27,733
4 84,579
1 24,738
33 6,909,919


216,924
779,838
186,684
137,413
1,320,859

687,051
55,473
60,054
516,450
100,458
1,419,486

16,152,227



3,492,765
3,843,677
527,013
459,957
8,323,412


2.46
3.07
3.42
2.96
3.17
2.67
2.47
3.92
1.50
1.95
3.24
2.75

2.43
3.03
3.45
2.85
3.05
2.75
3.77
1.51
1.49
3.53
2.66

2.85
2.86
3.58
3.26
3.00

2.73
3.45
3.67
2.68
3.74
2.85

2.74



.40
.23
.55
.33
.33








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 same of the direct
operating costs (unloading, grading, etc.) should be borne by the
eliminations. 2
Of the 34 firms in the sample, 16 firms supplied information
consistent with the first philosophy, 17 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


Eliminations 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 oranges
per 1 3/5-bushel equivalent by type of container, 1977-78 season



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

Number of packinghouses 6 24 30 7

Average volume packed
(1 3/5-bushel equivalent) 18,233 147,906 121,971 21,064


Item of cost
Materials
Container
Other materials
Total materials
Labor
Receive, Truck, Dump
Cratemaking & Labeling
Foremen, Graders, Others
Packing
Truck, Check, Load
Payroll Taxes, Ccmp. 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 1 3/5-bushel equivalent---------


0.7248
0.0416
0.7664

0.0815
0.0658
0.3015
0.2037
0.1412
0.1746
0.9683

0.0545
0.2038
0.0771
0.3354

0.0876
0.0288
0.2072
0.3236
2.3937
0.1969
0.2493
0.3055


0.6716
0.0251
0.6967

0.0513
0.0777
0.2011
0.1840
0.1267
0.1066
0.7474

0.0476
0.1154
0.0434
0.2064

0.0259
0.0221
0.1145
0.1625
1.8130
0.1538
0.1719
0.2990


0.6732
0.0256
0.6988

0.0522
0.0775
0.2041
0.1846
0.1271
0.1086
0.7541

0.0478
0.1180
0.0444
0.2102

0.0277
0.0223
0.1173
0.1673
1.8304
0.1551
0.1743
0.2992


3.1453 2.4377 2.4590


0.7767
0.0795
0.8562

0.0564
0.0774
0.2256
0.1853
0.0802
0.1113
0.7362

0.0338
0.1398
0.0327
0.2063

0.0343
0.0152
0.1392
0.1887
1.9874
0.1275
0.2056
0.3500
2.6705


Continued


Range in total costs--low 2.6102 1.8901 1.8901 2.1681
--high 3.6400 3.9477 3.9477 3.3832
Standard deviation 0.2385 0.4196 0.4324 0.2744







Table 5.--Weighted average costs of packing and selling Florida orangesa per
1 3/5-bushel equivalent by type of container, 1977-78 season--Continued


5-lb. poly. 8-lb. poly. 5-lb. vexar 8-1b. vexar
bag in bag in bag in bag in
Type of container master master master master
carton carton carton carton

Number of packinghouses 23 14 22 14

Average volume packed
(1 3/5-bushel equivalent) 28,162 1,557 68,299 1,555
Item of cost ----- $ per 1 3/5-bushel equivalent-

Materials
Containers 1.1577 1.2856 1.4597 1.3500
Other materials 0.0397 0.0307 0.0431 0.0476
Total materials 1.1974 1.3163 1.5028 1.3976

Labor
Receive, Truck, Dump 0.0480 0.0512 0.0495 0.0515
Cratemaking & Labeling 0.0786 0.0793 0.0755 0.0718
Foremen, Graders, Others 0.2395 0.2268 0.2461 0.2175
Packing 0.2868 0.2493 0.2781 0.2638
Truck, Check, load 0.1100 0.1146 0.1161 0.1158
Payroll Taxes, Ccnp. Ins. 0.1292 0.1187 0.1262 0.1088
Total Labor 0.8921 0.8399 0.8915 0.8292

Other Direct Operating
Power, Lights, Water 0.0528 0.0412 0.0540 0.0427
Repairs & Maintenance 0.1286 0.1374 0.1337 0.1474
Misc. Supplies & Expense 0.0492 0.0440 0.0476 0.0423
Total Other Direct 0.2306 0.2226 0.2353 0.2324

Indirect Operating
Insurance-Fire & Casualty 0.0239 0.0186 0.0274 0.0243
Taxes & Licenses 0.0227 0.0131 0.0241 0.0185
Depreciation & Rent 0.1076 0.0636 0.1221 0.0985
Total Indirect Operating 0.1542 0.0953 0.1736 0.1413

Total Packing Expense 2.4743 2.4741 2.8032 2.6005
Administrative 0.1581 0.0746 0.1639 0.0955
Selling 0.1633 0.1438 0.1653 0.1857
Other items 0.2696 0.2668 0.2827 0.2881

Total Costs 3.0653 2.9593 3.4151 3.1698

Range in total costs-low 2.4641 2.5341 2.8141 2.6357
-high 4.7698 4.5234 5.2204 4.8414
Standard deviation 0.4807 0.3006 0.4509 0.4612
aSee footnote 1, page 1.









Table 6.-Weighted average costs of packing and selling Florida grapefruit
per 1 3/5-bushel equivalent by type of container, 1977-78 season


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

Number of packinghouses 8 24 32 16

Average volume packed
(1 3/5-bushel equivalent) 197,164 102,489 126,158 63,560
Item of cost ----$ Per 1 3/5-bushel equivalent------
Materials
Containers 0.6989 0.6686 0.6805 0.7945
Other materials 0.0237 0.0170 0.0196 0.0540
Total materials 0.7226 0.6856 0.7001 0.8485

Labor
Receive, Truck, Dump 0.0816 0.0504 0.0626 0.0731
Cratemaking & Labeling 0.1174 0.0757 0.0921 0.0817
Foremen, Graders, Others 0.1951 0.1607 0.1741 0.2133
Packing 0.2084 0.1496 0.1726 0.1588
Truck, Check, Load 0.1306 0.1207 0.1246 0.1354
Payroll Taxes, Camp. Ins. 0.1505 0.1000 0.1197 0.1248
Total.Labor 0.8836 0.6571 0.7457 0.7871

Other Direct Operating
Power, Lights, Water 0.0590 0.0408 0.0479 0.0486
Repairs & Maintenance 0.1424 0.0798 0.1043 0.1426
Misc. Supplies & Expense 0.0435 0.0472 0.0457 0.0544
Total other direct 0.2449 0.1678 0.1979 0.2456

Indirect Operating
Insurance-Fire & Casualty 0.0458 0.0139 0.0264 0.0478
Taxes & Licenses 0.0179 0.0172 0.0174 0.0203
Depreciation & Rent 0.1361 0.0796 0.1016 0.1353
Total indirect operating 0.1998 0.1107 0.1454 0.2034

Total Packing Expense 2.0509 1.6212 1.7891 2.0846
Administrative 0.1970 0.2296 0.2168 0.1866
Selling 0.2225 0.1728 0.1923 0.2369
Other items 0.2404 0.2306 0.2344 0.2454

Total Costs 2.7108 2.2542 2.4326 2.7535

Range in total costs-low 2.2295 1.7627 1.7627 2.0283
-high 3.3082 3.3184 3.3184 3.5384
Standard deviation 0.3373 0.3882 0.4311 0.3000


Continued








Table 6.--Weighted average costs of packing and selling Florida grapefruit
per 1 3/5-bushel equivalent by type of container, 1977-78 season
--Continued


5-lb. poly. 8-lb. poly. 5-lb. vexar 8-1b. vexar
bag in bag in bag in bag in
Type of container master master master master
carton carton carton carton

Number of packinghouses 26 10 22 12

Average volume packed
(1 3/5-bushel equivalent) 34,245 1,121 35,978 1,042
Item of cost ------- $ Per 1 3/5-bushel equivalent-----

Materials
Containers 1.1561 1.3042 1.5404 1.3760
Other materials 0.0351 0.0271 0.0445 0.0341
Total Materials 1.1912 1.3313 1.5849 1.4101

Labor
Receive, Truck, Dump 0.0483 0.0465 0.0487 0.0491
Cratemaking & Labeling 0.0894 0.0802 0.0875 0.0874
Foremen, Graders, Others 0.2312 0.1993 0.2492 0.2422
Packing 0.2617 0.2241 0.2659 0.2449
Truck, Check, Load 0.1131 0.1179 0.1173 0.1201
Payroll Taxes, Cacp. Ins. 0.1329 0.1130 0.1384 0.1170
Total Labor 0.8766 0.7810 0.9070 0.8607

Other Direct Operating
Power, Lights, Water 0.0540 0.0393 0.0522 0.0404
Repairs & Maintenance 0.1153 0.1291 0.1208 0.1418
Misc. Supplies & Expense 0.0534 0.0443 0.0529 0.0436
Total other direct 0.2227 0.2127 0.2259 0.2258

Indirect Operating
Insurance-Fire & Casualty 0.0201 0.0156 0.0188 0.0185
Taxes & Licenses 0.0203 0.0119 0.0202 0.0118
Depreciation& Rent 0.0939 0.0570 0.0938 0.0601
Total indirect operating 0.1343 0.0845 0.1328 0.0904

Total Packing Expense 2.4248 2.4095 2.8506 2.5870
Administrative 0.2193 0.0751 0.2070 0.0798
Selling 0.1636 0.1424 0.1613 0.1535
Other items 0.2235 0.2181 0.2304 0.2286

Total Costs 3.0312 2.8451 3.4493 3.0489

Range in total costs-low 2.4565 2.4882 2.8675 2.6845
--high 4.3511 3.8890 4.6163 4.1213
Standard deviation 0.3956 0.2296 0.3912 0.2319







Table 7.-Weighted average costs of packing and selling Florida tangelos
and tangerines per 1 3/5-bushel equivalent by type of container,
1977-78 season


Tangelos Tangerines
Type of container
S4/5-bushel 4/5-bushel
carton carton

Number of packinghouses 13 14

Average volume packed
(1 3/5-bushel equivalent) 52,850 15,494
Item of cost -- $ Per 1 3/5-bushel equivalent--

Materials
Containers 0.7195 0.7231
Other materials 0.0118 0.0157
Total materials 0.7313 0.7388

Labor
Receive, Truck, Dump 0.0870 0.0800
Cratemaking & Labeling 0.0947 0.0924
Foremen, Graders, Others 0.2634 0.2960
Packing 0.1773 0.2521
Truck, Check, Load 0.1425 0.1260
Payroll Taxes, Canp. Ins. 0.1480 0.1583
Total Labor 0.9129 1.0048

Other Direct Operating
Power, Lights, Water 0.0792 0.0791
Repairs & Maintenance 0.1275 0.1694
Misc. Supplies & Expense 0.0675 0.0571
Total other direct 0.2742 0.3056

Indirect Operating
Insurance-Fire & Casualty 0.0396 0.0546
Taxes & Licenses 0.0324 0.0377
Depreciation & Rent 0.1931 0.1462
Total indirect operating 0.2651 0.2385

Total Packing Expense 2.1835 2.2877
Administrative 0.1210 0.1280
Selling 0.1752 0.1912
Other items 0.2465 0.2398

Total Costs 2.7262 2.8467

Range in total costs-low 2.0591 2.2270
-high 4.0532 4.4536
Standard deviation 0.5328 0.5127










lower costs, influence the average more than smaller houses.
Not all of the houses pack every container listed in Table 4.
The cost estimated 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 elim-
inations are shown in Table 9.

COST TRENDS


Changes in the reported costs of packing oranges and grapefruit
in the 4/5-bushel cartons from the 1976-77 to 1977-78 season are shown
in Table 10. Total packing and selling costs for oranges and grapefruit
,in 4/5-bushel cartons decreased 5.5 and 4.7 percent. Specifically,
labor costs decreased 33.3 percent for oranges while increasing 2.3
percent for grapefruit. Other direct operating costs and indirect
operating costs decreased significantly over last year for both oranges
and grapefruit.
Trends in orange and grapefruit packing costs for the past 19
seasons are reported in Table 11. In general, packing costs have
increased over time; however, the past year was one of the exceptions
where packing costs decreased.
The relationship between average packing costs and the average FOB
value of packed fruit for 4/5-bushel cartons of oranges and grapefruit
in the Interior and Indian River regions for the past 11 seasons is
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 (1977-78 was an exception as cost decreased).









Table 8.--Weighted average costs of handling bulk Florida citrus,
1977-78 season


Bulk in truck sales

Type of contaner Oranges Grapefruit

Number of packinghouses 11 7

Average volume packed
(1 3/5-bushel equivalent) 7,021 3,961
Item of cost --$ Per 1 3/5-bushel equivalent--

Materials
Containers 0.0000 0.0000
Other materials 0.0070 0.0001
Total materials 0.0070 0.0001

Labor
Receive, Truck, Dump 0.0648 0.0745
Cratemaking & Labeling 0.0164 0.0003.
Foremen, Graders, Others 0.2004 0.1955
Packing 0.0812 0.1178
Truck, Check, Load 0.0815 0.0538
Payroll Taxes, Camp. Ins. 0.0817 0.0945
Total labor 0.5260 0.5364

Other Direct Operating
Power, Lights, Water 0.0330 0.0411
Repairs & Maintenance 0.1536 0.1302
Misc. Supplies & Expense 0.0268 0.0315
Total other direct 0.2134 0.2028
Indirect Operating
Insurance-Fire & Casualty 0.0541 0.0388
Taxes & Licenses 0.0172 0.0131
Depreciation & Rent 0.1167 0.0945
Total indirect operating 0.1880 0.1464
Total Packing Expense 0.9344 0.8857
Administrative 0.1389 0.2184
Selling 0.1470 0.2144
Other items 0.2809 0.1880
Total Costs 1.5012 1.5065

Range in total costs--low 0.4985 0.4673
--high 1.9112 1.6554
Standard deviation 0.1655 0.1809

aSee footnote 1, page 1.









Table 9.--Weighted average costs of handling Florida citrus eliminations,
1977-78 season


Bulk through house to cannery

Oranges Grapefruit Tangerines Tangelos

Number of packinghouses 30 32 26 16

Average volume packed
(1 3/5-bushel equivalent) 116,425 120,114 20,269 28,747
Item of cost ----- $ Per 1 3/5-bushel equivalent--
Materials
Containers 0.0000 0.0000 0.0000 0.0000
Other materials 0.0034 0.0006 0.0006 0.0000
Total materials 0.0034 0.0006 0.0006 0.0000

Labor
Receive, Truck, Dump 0.0333 0.0130 0.0469 0.0269
Cratemaking & Labeling 0.0022 0.0058 0.0045 0.0030
Foremen, Graders, Others 0.0698 0.0144 0.0943 0.0249
Packing 0.0000 0.0000 0.0000 0.0000
Truck, Check, Load 0.0068 0.0079 0.0079 0.0034
Payroll Taxes, Cacp. Ins. 0.0316 0.0140 0.0576 0.0203
Total Labor 0.1437 0.0551 0.2112 0.0785

Other Direct Operating
Power, Lights, Water 0.0158 0.0071 0.0262 0.0139
Repairs & Maintenance 0.0694 0.0239 0.1075 0.0554
Misc. Supplies & Expense 0.0157 0.0084 0.0169 0.0128
Total other direct 0.1009 0.0394 0.1506 0.0821

Indirect Operating
Insurance-Fire & Casualty 0.0172 0.0051 0.0265 0.0076
Taxes & Licenses 0.0076 0.0037 0.0134 0.0074
Depreciation & Rent 0.0429 0.0192 0.0751 0.0400
Total indirect operating 0.0677 0.0280 0.1150 0.0550

Total Packing Expense 0.3157 0.1231 0.4774 0.2156
Administrative 0.0850 0.1075 0.0770 0.1139
Selling 0.0000 0.0000 0.0000 0.0000
Other items 0.0002 0.0000 0.0001 0.0006

Total Costs 0.4009 0.2306 0.5545 0.3301

Range in total costs--low 0.0626 0.0626 0.0626 0.0626
--high 0.9793 0.7347 1.1398 0.7850
Standard deviation 0.2136 0.1171 0.3566 0.2510


aSee footnote 1, page 1.






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, 1977-78 over 1976-77

a
Volume packed Oranges Grapefruit
(1 3/5-bushel equivalent)
1977-78 1976-77 Change 1977-78 1976-77 Clhcinjte


$ per 1 3/5-equivalent


Percent $ per 1 3/5-equivalent


Materials
Containers
Other materials
Total materials


Labor
Receive, truck, dump
Cratenaking & labeling
Foremen, graders, others
Packing
Truck, check, load
Payroll taxes, camp. 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


aSee footnote 1, page 1.


Percent


- 7.1
-26.6
- 7.8


0.6732
0.0256
0.6988

0.0522
0.0775
0.2041
0.1846
0.1271
0.1086
0.7541

0.0478
0.1180
0.0444
0.2102

0.0277
0.0223
0.1173
0.1673
1.8304
0.1551
0.1743
0.2992
2.4590


0.6898
0.0246
0.7144

0.0824
0.0824
0.2091
0.1731
0.1234
0.1064
0.7768

0.0528
0.1484
0.0553
0.2565

0.0261
0.0250
0.1430
0.1941
1.9418
0.1657
0.1927
0.3030
2.6032


- 2.4
+ 4.1
- 2.2

-36.7
- 5.9
- 2.4
+ 6.6
+ 3.0
+ 2.1
-33.3

- 9.5
-20.5
-19.7
-18.1


+ 6.1
-10.8
-18.0
-13.8
- 5.7
- 6.4
- 9.5
- 1.3
- 5.5


0.6805
0.0196
0.7001

0.0626
0.0921
0.1741
0.1726
0.1246
0.1197
0.7457

0.0479
0.1043
0.0457
0.1979

0.0264
0.0174
0.1016
0.1454
1.7891
0.2168
0.1923
0.2344
2.4326


0.7325
0.0267
0.7592

0.0529
0.0786
0.1812
0.1660
0.1270
0.1229
0.7286

0.0443
0.1307
0.0482
0.2232


0.0310
0.0164
0.1139
0.1613
1.8723
0.2229
0.2062
0.2523
2.5537


B.8.3
ft1.7.2
- 3.9
+ 4.0
- 1.9
- 2.6
-+ 2.3

I 8.1
-)0.2
-Si. 2
-17.3


-14.8
+ 6.
-10.8
- 9.9
- 4.4
- 2.7
- 6.7
- 7.1
- 4.7






Table 11.--Tal cost per 1 3/5-bushel equivalent for packing and
selling Florida citrus by type of pack, 1959-60 through
1977-78 seasons


4/5-bu. 5-lb. poly 8-lb. poly. 5-1b. vexar 8-lb. vexar
Season fiber- bag in bag in bag in bag in
board master master master Master
box carton carton carton carton

- - - Oranges-

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
1974-75b 2.18 2.79 2.73 3.01 3.00
1975-76 2.22 2.83 2.86 3.11 2.99
1976-77b 2.60 3.20 3.15 3.51 3.30
1977-78 2.46 3.07 2.96 3.42 3.17

-- - ---Grapefruit-- ---- --- -- - ----
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 2.61 3.01 3.28
1975-76 2.27 2.91 2.74 3.21 2.88
1976-77 2.55 3.20 3.08 3.59 3.25
1977-78 2.43 3.03 2.85 3.45 3.05

aInformation for seasons prior to 1977-78 is fran Hooks [3].

See 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 1977-78 seasons, 1 3/5-bushel equivalent boxes


Interior East Coast

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


$ per 1 3/5-bu.
equivalent


Oranges
1967-68
1968-69
1969-70
1970-71
1971-72
1972-73
1973-74
1974-75,
1975-76d
1976-77d
1977-782
Grapefruit
1967-68
1968-69
1969-70
1970-71
1971-72
1972-73
1973-74
1974-75
1975-76
1976-77
1977-78


4.56
4.36
3.86
4.26
5.08
4.66
5.14
5.42
5.64
5.92
9.00


4.68
4.72
4.60
4.86
5.16
5.30
5.16
5.84
5.26
5.68
5.51


Percent


1.53
1.59
1.63
1.75
1.80
1.86
2.04
2.13
2.19
2.56
2.44


1.84
1.90
2.01
1.89
2.01
2.14
1.87
1.94
2.05
2.28
2.25


$ per 1 3/5-bu.
equivalent


5.50
4.72
4.60
4.86
5.44
4.80
5.30
5.68
6.12
5.86
8.96



4.30
5.04
5.20
5.80
6.12
5.74
6.46
6.16
6.60
6.54


1.84
1.90
2.01
1.89
2.01
2.14
2.47
2.56
2.38
3.23
3.15


1.67
1.72
1.81
1.84
1.84
1.96
2.21
2.36
2.38
2.77
2.71


aFrom Florida Citrus Mutual [I].

Seasons prior to 1975-76 are from Hooks and Kilmer [3].

CRatio = packing cost value of packed fruit.


See footnote 1, page 1.


Percent



33
40
44
39
37
44
47
45
39
55
35


29
40
36
35
32
32
39
37
39
42
41













SELECTED REFERENCES


[1] Florida Citrus Mutual. Statistical Bulletin.
various issues.


Lakeland:


[2] Florida Division of Fruit and Vegetable Inspection.
Season Annual Report. Winter Haven: 1978.


1977-78


[3] Hooks, R. Clegg and Richard L. Kilmer, Estimated Costs of
Packing and Selling Florida Citrus, 1976-77 Season.
Food and Resource Economics Department Economic Infor-
mation Report 93. Gainesville: University of
Florida. June 1978.



























This public document was promulgated at an annual cost of $896.00 or
$0.75 per copy to report citrus harvesting research results to
country agricultural directors and firms and agencies in the
citrus industry.