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
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    Reference
        Page 18

Hcle Eonomic Informaioli
, Clegg Hooks &conmif
Se. 1 ". Report-

ichard L. Kilmer -
.a *.. .. ._








Estimated Costs of Packing and


Selling Fresh Florida Citrus, 197879.

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ABSTRACT


Packing costs increased during the 1978-79 season, with the
greatest increases shown in materials and other direct operating
expense. Packing costs for two 4/5-bu. cartons of Florida oranges
and grapefruit were estimated at $2.64 and $2.62 an increase of
7.2 and 7.8 percent above 1977-78. Tangerine and tangelo packing
costs for two 4/5-bu. cartons were estimated at $3.35 and $2.90
an increase of 17.5 percent for tangerines and 6.2 percent for tangelos.
The 1978-79 estimates were based on accounting information obtained
from 27 Florida packinghouses.


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












ACKNOWLEDGEMENTS


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
















TABLE OF CONTENTS


Page

LIST OF TABLES . . . . . . .

SUoMMARY ................... ... .

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

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

WEIGHTED AVERAGE PACKING AND BULK HANDLING COSTS . .. 6

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

SELECTED REFERENCES . . . . . .. 18

LIST OF TABLES

Table Pa
1 Distribution of citrus handled by class of fruit, 27
Florida packinghouses, 1978-79 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, 1978-79 season .. 4
3 Percent of total fruit received which was packed for
shipment by kind of fruit and packinghouse location; 26
packinghouses, 1978-79 season .. . . 4
4 Volume of citrus handled and total packing and selling
cost by type of container, 27 Florida packinghouses,
1978-79 season ..................... 5
5 Weighted average costs of packing and selling Florida
oranges per 1 3/5-bushel equivalent by type of container,
1978-79 season ...................... 7
6 Weighted average costs of packing and selling Florida
grapefruit per 1 3/5-bushel equivalent by type of container,
1978-79 season ................... 9









LIST OF TABLES, continued
Table Page
7 Weighted average costs of packing and selling Florida
tangelos and tangerines per 1 3/5-bushel equivalent
by type of container, 1978-79 season . . 11
8 Weighted average costs of handling bulk Florida citrus,
1978-79 season ................... .13
9 Weighted average costs of handling Florida citrus
eliminations, 1978-79 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, 1978-79 over 1977-78 .15
11 Total cost per 1 3/5-bushel equivalent for packing and
selling Florida citrus by type of pack, 1964-65
through 1978-79 seasons . . .. ... .16
12 Value of packed 4/5-bushel cartons of Florida oranges and
grapefruit relative to packing costs, years, 1967-68
through 1978-79 seasons, 1 3/5-bushel equivalent boxes .17


















ESTIMATED COSTS OF PACKING AND SELLING
FRESH FLORIDA CITRUS, 1978-79 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 $2.641 and $2.62, respectively, for the
1978-79 season. The estimates are 7.2 and 7.8 percent above 1977-78
season estimates. Tangerine packing costs for two 4/5-bushel cartons
are estimated at $3.35, up 17.5 percent from previous season estimates,
and the cost to pack two 4/5-bushel cartons of tangelos was $2.90, an
increase of 6.2 percent.
Packing costs increased during the 1978-79 season, with the greatest
increase shown in materials and other direct operating expense.
The 1978-79 estimates are based on accounting information obtained
from 27 Florida packinghouses.

SAMPLE FIRMS


The 27 sample Florida packinghouses packed 15,170,323 equivalent



Beginning with the 1975-76 season, tangelo packing costs were
reported separately fron orange packing costs. 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.









1 3/5-bushel boxes or approximately 42.2 percent of total Florida fresh
fruit shipments [2]. As indicated in Table 1, the sample firms
provided information on a total of over 34.1 million boxes (including
eliminations and direct-to-cannery fruit) or 15.1 percent of total
Florida citrus production [2,p.8].
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 147 Florida packinghouses
operating during the 1978-79 season was 244,423 equivalent 1 3/5-bushel
boxes [2], while the average sample packinghouse packed 561,864 equivalent
1 3/5-bushel boxes. This was 67.7 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 categories
shown in the following tables. Again the labor costs 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.


















ESTIMATED COSTS OF PACKING AND SELLING
FRESH FLORIDA CITRUS, 1978-79 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 $2.641 and $2.62, respectively, for the
1978-79 season. The estimates are 7.2 and 7.8 percent above 1977-78
season estimates. Tangerine packing costs for two 4/5-bushel cartons
are estimated at $3.35, up 17.5 percent from previous season estimates,
and the cost to pack two 4/5-bushel cartons of tangelos was $2.90, an
increase of 6.2 percent.
Packing costs increased during the 1978-79 season, with the greatest
increase show? in materials and other direct operating expense.
The 1978-79 estimates are based on accounting information obtained
from 27 Florida packinghouses.

SAMPLE FIRMS


The 27 sample Florida packinghouses packed 15,170,323 equivalent



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









1 3/5-bushel boxes or approximately 42.2 percent of total Florida fresh
fruit shipments [2]. As indicated in Table 1, the sample firms
provided information on a total of over 34.1 million boxes (including
eliminations and direct-to-cannery fruit) or 15.1 percent of total
Florida citrus production [2,p.8].
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 147 Florida packinghouses
operating during the 1978-79 season was 244,423 equivalent 1 3/5-bushel
boxes [2], while the average sample packinghouse packed 561,864 equivalent
1 3/5-bushel boxes. This was 67.7 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 COLLECICN

Most of the firms provided information frame 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 categories
shown in the following tables. Again the labor costs 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.


- I*r~p;ail~n;;~-..-,nanrra4








Table 1.--Distribution of citrus handled by class of fruit,
27 Florida packinghouses, 1978-79 season
27 Florida packinghouses, 1978-79 season


Class of fruit


Total volume


1 3/5-bushel equivalent


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

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

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


2,090,164
788,965
2,879,129
602.,693
3,481,822


13,080,159
6,461,598
19,541,757
11,125,219
30,666,976


15,170,323
7,250,563
22,420,886
11,727,912
34,148,798


aGrove-to-cannery fruit data were
had these been included, it would have
directly to cannery. One firm did not
inated fruit.


not obtained from 9 houses;
increased the volume going
supply information on elim-


Cannery fruit through the house is fruit with acceptable
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, 1978-79 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 200,000 81 2 2.5
200,001 400,000 30 9 30.0
400,001 600,000 18 6 33.3
Greater than 600,000 18 10 55.6

Total 147 27 18.4



aCalculated from [2].



Table 3.--Percent of total fruit received which was
packed for shipment by kind of fruit and
packinghouse location; 26a packinghouses,
1978-79 season


East Coast Interior All
ind of fruit houses houses houses


Percent Percent Percent
Oranges 70.5 66.3 66.4
Grapefruit 76.1 66.1 69.0
Tangerines 65.6 65.6
Tangelos 85.3 72.7 72.9

All fruit 72.6 66.9 67.7


alone firm did not report eliminations.








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


costs of packing and selling Florida oranges
equivalent by type of container, 1978-79 season


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

Number of packinghouses 5 20 25 10
Average volume packed
1 3/5-bushel equivalent) 24,704 191,014 157,752 29,626


Item of Cost
Materials
Containers
Other materials
Total materials
Labor
Receive, Truck, Dump
Cratemaking & Labeling
Foremen, Graders, Others
Packing
Truck, Check, Load
Payroll Taxes, Coap. 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-


0.7429
0.0393
0.7822

0.0955
0.0877
0.3057
0.2095
0.1486
0.1749
1.0219

0.0648
0.2767
0.0811
0.4226

0.0658
0.0248
0.2481
0.3387
2.5654
0.2154
0.2073
0.3560
3.3441


0.7352
0.0312
0.7664

0.0561
0.0796
0.2246
0.1807
0.1287
0.1257
0.7954

0.0547
0.1400
0.0532
0.2479

0.0246
0.0237
0.1260
0.1743
1.9840
0.1341
0.1765
0.3222


0.7354
0.0314
0.7668

0.0571
0.0798
0.2266
0.1815
0.1292
0.1269
0.8011

0.0550
0.1434
0.0539
0.2523

0.0257
0.0237
0.1291
0.1785
1.9987
0.1361
0.1772
0.3232


2.6168 2.6352


0.9409
0.0807
1.0216

0.0626
0.0753
0.2506
0.1832
0.1026
0.1224
0.7967

0.0506
0.1516
0.0547
0.2569

0.0260
0.0253
0.1528
0.2041
2.2793
0.1963
0.2194
0.3457
3.0407


Continued


Range in total costs--low 3.1923 2.2518 2.2518 2.5191
--high 3.7400 3.8190 3.8190 4.1386
Standard deviation 0.2198 0.3422 0.3583 0.3646







Table 5.--Weighted average costs of packing and selling Florida orangesa per
1 3/5-bushel equivalent by type of container, 1978-79 season-Continue


5-lb. poly. 8-lb. poly. 5-lb. vexar 8-lb. vexar
bag in bag in bag in bag in
Type of con r master master master master
Type of container
carton carton carton carton

Number of packinghouses 20 14 21 16
Average volume packed
(1 3/5-bushel equivalent) 29,403 1,192 73,533 1,969


Item of cost
Materials
Containers
Other materials
Total materials
Labor
Receive, Truck, Dump
Cratemaking & Labeling
Foremen, Graders, Others
Packing
Truck, Check, Load
Payroll Taxes, Canp. 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 --

1.3473 1.3854 1.6090 1.5898
0.0445 0.0345 0.0822 0.0562
1.3918 1.4199 1.6912 1.6460


0.0579
0.0839
0.2729
0.2946
0.1250
0.1518
0.9861

0.0609
0.1568
0.0597
0.2774

0.0230
0.0218
0.1143
0.1591
2.8144
0.1511
0.1822
0.3030
3.4507


0.0549
0.0850
0.2462
0.2704
0.1181
0.1296
0.9042

0.0502
0.1491
0.0513
0.2506

0.0216
0.0186
0.1039
0.1441
2.7188
0.1325
0.1851
0.3026
3.3390


0.0566
0.0803
0.2778
0.2999
0.1227
0.1572
0.9945

0.0621
0.1586
0.0546
0.2753

0.0227
0.0239
0.1299
0.1765
3.1375
0.1490
0.1739
0.3153
3.7757


0.0547
0.0775
0.2460
0.2772
0.1125
0.1271
0.8950

0.0463
0.1521
0.0466
0.2450

0.0232
0.0198
0.1035
0.1465
2.9325
0.1778
0.1875
0.3066
3.6044


Range in total costs--low 2.8938 2.8678 3.2468 3.1558
--high 4.7037 4.4728 5.1822 4.7923
Standard deviation 0.3719 0.3525 0.3596 0.3028

aSee footnote I, page 1.








Table 6.--Weighted average costs of packing and selling Florida grapefruit
per 1 3/5-bushel equivalent by type of container, 1978-79 season

4/5-bushel fiberboard box

Type of container East Interior All Export
Coast Houses Houses all houses


Number of packinghouses 5 20 25 13
Average volume packed
(1 3/5-bushel equivalent) 270,120 105,711 133,113 59,891


Item of cost
Materials
Containers
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----


0.8472
0.0220
0.8692

0.0771
0.0973
0.2105
0.2046
0.1706
0.1715
0.9316

0.0590
0.1538
0.0365
0.2493

0.0406
0.0196
0.1501
0.2103
2.2604
0.2142
0.1904
0.3144
2.9794


0.7435
0.0194
0.7629

0.0546
0.0797
0.1674
0.1553
0.1293
0.1116
0.6979

0.0466
0.0990
0.0543
0.1999

0.0141
0.0143
0.0827
0.1111
1.7718
0.1748
0.1927
0.3023


0.7785
0.0203
0.7988

0.0623
0.0856
0.1821
0.1720
0.1433
0.1318
0.7771

0.0508
0.1175
0.0483
0.2166

0.0230
0.0161
0.1055
0.1446
1.9371
0.1882
0.1919
0.3063


2.4416 2.6235


0.8948
0.0495
0.9443

0.0720
0.0825
0.1968
0.1749
0.1576
0.1315
0.8153

0.0512
0.2003
0.0562
0.3077

0.0374
0.0193
0.1764
0.2331
2.3004
0.1620
0.2217
0.3286
3.0127


Range in total costs--low 2.6396 2.1614 2.1614 2.3333
--high 3.3934 3.3151 3.3934 3.5772
Standard deviation 0.2839 0.2565 0.3681 0.2189
Continued








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


costs of packing and selling Florida grapefruit
equivalent by type of container, 1978-79 season


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

Number of packinghouses 21 10 21 14
Average volume packed
(1 3/5-bushel equivalent) 37,363 4,664 30,321 774


Item of cost
Materials
Containers
Other materials
Total materials
Labor
Receive, Truck, Dump
Cratemaking & Labeling
Foremen, Graders, Others
Packing
Truck, Check, Load
Payroll Taxes, Ccap. Ins.
Total labor
Other Direct Operating
Power, Lights, Water
Repairs & Maintenance
Misc. Supplies & Expenses
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-buebel equivalent


1.3213
0.0401
1.3614

0.0554
0.0855
0.2470
0.2770
0.1219
0.1496
0.9364

0.0573
0.1231
0.0600
0.2404

0.0175
0.0174
0.0908
0.1257
2.6639
0.1932
0.1821
0.2927
3.3319


1.3706
0.0245
1.3951

0.0496
0.0675
0.2428
0.2599
0.0701
0.1253
0.8152

0.0404
0.0893
0.0348
0.1645

0.0152
0.0237
0.0858
0.1247
2.4995
0.4515
0.1698
0.2997
3.4205


1.6986
0.0721
1.7707

0.0560
0.0875
0.2664
0.2869
0.1256
0.1509
0.9733

0.0542
0.1357
0.0582
0.2481

0.0168
0.0169
0.0863
0.1200
3.1121
0.1741
0.1772
0.2981
3.7615


1.5635
0.0393
1.6028

0.0554
0.0903
0.2536
0.2615
0.1206
0.1374
0.9188

0.0484
0.1316
0.0506
0.2306

0.0166
0.0186
0.0931
0.1283
2.8805
0.2044
0.1751
0.2885
3.5485


Range in total costs-low 2.9367 2.8461 3.3155 3.0057
-high 4.1878 3.9580 4.8649 4.3773
Standard deviation 0.2880 0.1848 0.2712 0.2611








Table 7.--Weighted average costs of packing and selling Florida tangelos
and tangerines per 1 3/5-bushel equivalent by type of container,
1978-79 season



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


Number of packinghouses 12 11
Average volume packed
1 3/5-bushel equivalent) 47,643 28,340
Item of cost ---$ per 1 3/5-bushel equivalent--
Materials
Containers 0.7927 0.8612
Other materials 0.0191 0.0205
Total materials 0.8118 0.8817
Labor
Receive, Truck, Dump 0.0882 0.0980
Cratemaking & Labeling 0.0915 0.0971
Foremen, Graders, Others 0.2729 0.4029
Packing 0.1952 0.2755
Truck, Check, Load 0.1538 0.1437
Payroll Taxes, Comp. Ins. 0.1690 0.1920
Total labor 0.9706 1.2092
Other Direct Operating
Power, Lights, Water 0.0717 0.0855
Repairs & Maintenance 0.1378 0.2163
Misc, Supplies & Expense 0.0627 0.0869
Total other direct 0.2722 0.3887
Indirect Operating
Insurance-Fire & Casualty 0.0271 0.0317
Taxes & Licenses 0.0263 0.0351
Depreciation & Rent 0.1499 0.1781
Total indirect operating 0.2033 0.2449
Total Packing Expense 2.2579 2.7245
Administrative 0.1576 0.1420
Selling 0.2082 0.2281
Other Items 0.2783 0.2525
Total Costs 2.9020 3.3471


Range in costs--low 2.4403 2.7502
--high 4.0066 4.7044
Standard deviation 0.4755 0.3887







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, smae of the cost
differences 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.


COST TRENDS


Changes in the reported costs of packing oranges and grapefruit
in two 4/5-bushel cartons from the 1977-78 to 1978-79 season are shown
in Table 10. Total packing and selling costs for oranges and grapefruit
increased 7.2 and .7.8 percent. Specifically, material costs and labor
costs increased 9.7 and 6.2 percent for oranges while increasing 14.1
and 4.2 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 20
seasons are reported in Table 11. In general, packing costs have
increased over time including 1978-79. The previous 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 two 4/5-bushel cartons of oranges and
grapefruit in the Interior and Indian River regions for the past 12
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.








Table 8.--Weighted average costs of handling bulk Florida citrus,
1978-79 season


Bulk in truck sales
Type of container
Oranges Grapefruit


Number of packinghouses 7 6
Average volume packed
(1 3/5-bushel equivalent) 21,986 5,258
Item of cost ----$ per 1 3/5-bushel equivalent-
Materials
Containers 0.0000 0.0000
Other materials 0.0031 0.0003
Total materials 0.0031 0.0003
Labor
Receive, Truck, Dump 0.0720 0.0782
Cratemaking & Labeling 0.0096 0.0017
Foremen, Graders, Others 0.1936 0.1535
Packing 0.0855 0.1008
Truck, Check, Load 0.1121 0.0658
Payroll Taxes, Camp. Ins. 0.0824 0.0898
Total labor 0.5552 0.4898
Other Direct Operating
Power, Lights, Water 0.0473 0.0331
Repairs & Maintenance 0.1404 0.1159
Misc. Supplies & Expense 0.0455 0.0449
Total other direct 0.2332 0.1939
Indirect Operating
Insurance-Fire & Casualty 0.0333 0.0317
Taxes & Licenses 0.0198 0.0117
Depreciation & Rent 0.1086 0.1103
Total indirect operating 0.1617 0.1537
Total Packing Expense 0.9532 0.8377
Administrative 0.1461 0.2373
Selling 0.1875 0.2068
Other Items 0.2519 0.2095
Total Costs 1.5387 1.4913

Range in total costs-low 1.0772 0.9699
-high 1.7347 1.5861
Standard deviation 0.0715 0.0877


aSee footnote 1, page 1.








Table 9.-Weighted average costs of handling Florida citrus eliminations,
1978-79 season


Bulk through house to cannery


Orangesa Grapefruit Tangerines Tangelos

Number of packinghouses 24 24 20 14
Average volume packed
(1 3/5-bushel equivalent) 147,298 110,008 31,853 31,297
Item of cost ---- $ per 1 3/5-bushel equivalent--
Materials
Containers 0.0000 0.0000 0.0000 0.0000
Other materials 0.0045 0.0011 0.0007 0.0000
Total materials 0.0045 0.0011 0.0007 0.0000
Labor
Receive, Truck, Dump 0.0356 0.0220 0.0667 0.0272
Cratemaking & Labeling 0.0000 0.0000 0.0000 0.0000
Foremen, Graders, Others 0.0740 0.0263 0.0902 0.0344
Packing 0.0000 0.0000 0.0000 0.0000
Truck, Check, Load 0.0072 0.0033 0.0038 0.0006
Payroll Taxes, Carp. Ins. 0.0309 0.0106 0.0469 0.0210
Total labor 0.1477 0.0622 0.2076 0.0832
Other Direct Operating
Power, Lights, Water 0.0161 0.0065 0.0203 0.0109
Repairs & Maintenance 0.0700 0.0254 0.0976 0.0665
Misc. Supplies & Expense 0.0192 0.0092 0.0174 0.0104
Total other direct 0.1053 0.0411 0.1353 0.0878
Indirect Operating
Insurance-Fire & Casualty 0.0137 0.0047 0.0201 0.0054
Taxes & Licenses 0.0070 0.0030 0.0091 0.0063
Depreciation & Rent 0.0425 0.0187 0.0724 0.0437
Total indirect operating 0.0632 0.0264 0.1016 0.0554
Total Packing Expense 0.3207 0.1308 0.4452 0.2264
Administrative 0.1087 0.1844 0.1228 0.2476
Selling 0.0000 0.0000 0.0000 0.0000
Other Items 0.0000 0.0002 0.0002 0.0002
Total Costs 0.4294 0.3154 0.5682 0.4742


Range in total costs--low 0.0726 0.0726 0.0726 0.0726
--high 0.9067 0.5872 1.2627 0.9370
Standard deviation 0.2341 0.1609 0.3398 0.3070


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, 1978-79 over 1977-78

a
Type of Fruit Oranges Grapefruit

Season 1978-79 1977-78 Change 1978-79 1977-78 Change

$ per 1 3/5-equivalent Percent $ per 1 3/5-equivalent Percent
Materials
Containers 0.7354 0.6732 + 9.3 0.7785 0.6805 + 14.4
Other materials 0.0314 0.0256 + 22.7 0.0203 0.0196 + 3.6
Total materials 0.7668 0.6988 + 9.7 0.7988 0.7001 + 14.1
Labor
Receive, Truck, Dump 0.0571 0.0522 + 9.4 0.0623 0.0626 0.5
Cratemaking & Labeling 0.0798 0.0775 + 3.0 0.0856 0.0921 7.1
Foremen, Graders, Others 0.2266 0.2041 + 11.0 0.1821 0.1741 + 4.6
Packing 0.1815 0.1846 1.7 0.1720 0.1726 0.3
Truck, Check, Load 0.1292 0.1271 + 1.7 0.1433 0.1246 + 15.0
Payroll Taxes, Comp. Ins. 0.1269 0.1086 + 16.9 0.1318 0.1197 + 10.1
Total labor 0.8011 0.7541 + 6.2 0.7771 0.7457 + 4.2
Other Direct Operating
Power, Lights, Water 0.0550 0.0478 + 15.1 0.0508 0.0479 + 6.1
Repairs & Maintenance 0.1434 0.1180 + 21.5 0.1175 0.1043 + 12.7
Misc. Supplies & Expense 0.0539 0.0444 + 21.4 0.0483 0.0457 + 5.7
Total other direct 0.2523 0.2102 + 20.0 0.2166 0.1979 + 9.4
Indirect Operating
Insurance-Fire & Casualty 0.0257 0.0277 7.2 0.0230 0.0264 12.9
Taxes & Licenses 0.0237 0.0223 + 6.3 0.0161 0.0174 7.5
Depreciation & Rent 0.1291 0.1173 + 10.1 0.1055 0.1016 + 3.8
Total indirect operating 0.1785 0.1673 + 6.7 0.1446 0.1454 0.5
Total Packing Expense 1.9987 1.8304 + 9.2 1.9371 1.7891 + 8.3
Administrative 0.1361 0.1551 12.3 0.1882 0.2168 13.2
Selling 0.1772 0.1743 + 1.7 0.1919 0.1923 0.2
Other Items 0.3232 0.2992 + 8.0 0.3063 0.2344 + 30.7
Total Costs 2.6352 2.4590 + 7.2 2.6235 2.4326 + 7.8

See footnote 1, paqe 1.







Table l1.-Total cost per 1 3/5-bushel equivalent for packing and
selling Florida citrus by type of pack, 1964-65 through
1978-79 seasons


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

---- --------- Oranges --------------
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 -- .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
1975-76 2.22 2.83 2.86 3.11 2.99
1976-77 2.60 3.20 3.15 3.51 3.30
1977-78b 2.46 3.07 2.96 3.42 3.17
1978-79" 2.64 3.45 3.34 3.78 3.60

----------------- -Grapefruit --------------
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
1978-79 2.62 3.33 3.42 3.76 3.55

Information for seasons prior to 1978-79 is from Hooks 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 1978-79 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
1974-75d
1975-76d
1976-77d
1977-78 d
1978-79
Grapefruit
1967-68
1968-69
1969-70
1970-71
1971-72
1972-73
1973-74
1974-75
1975-76
1976-77
1977-78
1978-79


4.56
4.36
3.86
4.26
5.08
4.66
5.14
5.42
5.64
5.92
9.00
10.20


4.68
4.72
4.60
4.86
5.16
5.30
5.16
5.84
5.26
5.68
5.51
7.00


1.53
1.59
1.63
1.75
1.80
1.86
2.04
2.13
2.19
2.56
2.44
2.62


1.84
1.90
2.01
1.89
2.01
2.14
1.87
1.94
2.05
2.28
2.25
2.44


Percent



32
36
42
41
35
40
40
39
39
43
27
26


$ 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
9.90


5.70
4.30
5.04
5.20
5.80
6.12
5.74
6.46
6.16
6.60
6.54
7.95


1.84
1.90
2.01
1.89
2.01
2.14
2.47
2.56
2.38
3.23
3.15
3.34


1.67
1.72
1.81
1.84
1.84
1.96
2.21
2.36
2.38
2.77
2.71
2.98


From Florida Citrus Mutual [1].

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

CRatio = packing cost value of packed fruit.

dsee footnote 1, page 1.


Percent



33
40
44
39
37
44
47
45
39
55
35
34














SELECTED REFERENCES


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

[2] Florida Division of Fruit and Vegetable Inspection. 1978-79
Season Annual Report. Winter Haven: 1979.

[3] Hooks, R. Clegg and Richard L. Kilmer, Estimated Costs of
Packing and Selling Florida Citrus, 1977-78 Season.
Food and Resource Economics Department Economic Information
Report 118. Gainesville: University of Florida.
August 1979.























This public document was promulgated at an annual cost of $986.00 or
$0.82 per copy to report citrus harvesting research results to
country agricultural directors and firms and agencies in the citrus
industry.