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Estimated costs of processing, warehousing and selling Florida citrus products
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 Material Information
Title: Estimated costs of processing, warehousing and selling Florida citrus products
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., Agricultural Experiment Stations, Institute of Food and Agricultural Sciences, University of Florida.
Place of Publication: Gainesville
Creation Date: 1973
 Subjects
Subjects / Keywords: Citrus fruit industry -- Estimates -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
serial   ( sobekcm )
 Record Information
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 001546941
oclc - 05037841
notis - AHG0479
lccn - 79641503 //r892
System ID: UF00026338:00001

Table of Contents
    Front Cover
        Front Cover
    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
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
Full Text

'Daniel S. Tilley




Estimated Costs
Warehousing
Florida Citru
1973-74


Economic Information
GC~ Report 33



r sing,
and Selling
s Products,
Season


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


July 1975
















SUMMARY . . . .

PARTICIPATING FIRMS . .

FROZEN ORANGE CONCENTRATE .. ..

SINGLE STRENGTH JUICES AND GRAF: iIT SECTI ':...


CITRUS FEED . .

COST AND PRICE TRENDS ..

REFERENCES . .

CONVERSION FACTORS .


. . 14

. . . 17


. . .. 21

. . . 22
4


LIST OF TABLES
Table
1 Volume of citrus products produced by sample
firms relative to the total volume produced
in Florida . . . . .

2 Estimated costs of processing, warehousing and
selling Florida orange concentrate, 45 brix,
48 6-ounce cans in cases, 1973-74 season with
comparisons to 1972-73 season levels ..

3 Estimated costs of processing, warehousing and
selling Florida frozen concentrate in cases,
450 brix, nine firms, 1973-74 season ..

4 Estimated costs of processing, warehousing and
selling Florida ,.- concentrate in cases,
45 brix,1973-74 season .


5 Estimated costs per gallon for processing,
warehousing and selling Florida frozen con-
centrate, 450 brix, 1973-74 season . . .. 7


6 Estimated costs per gallon for processing,
warehousing and selling Florida frozen
concentrate, 580 brix, 1973-74 season ..


Page
1


S5







LIST OF Ti-l I- (Continued)


Table
7 Estimated costs of processing, warehousing and
selling 12 46-ounce cans of single strength Florida
(". *i.. juice in cases, 1973-74 season with
comparisons to 1972-73 levels . .

8 Estimated costs of processing, warehousing and
selling Florida citrus fruit juices, 1973-74
season . .

9 Estimated costs of processing, warehousing and
selling Florida citrus fruit juices, 1973-74
season .. . .

10 Estimated costs of processing, warehousing and
selling Florida canned grapefruit sections
and chilled 'gi: juice, 1973-74 season .

11 Estimated costs of processing, warehousing and
selling Florida citrus feed, in bulk, 1973-74
season with comparisons to 1972-73 . .


12 Total cost for processing, warehousing and
selling Florida frozen, 45 brix orange
concentrate, 1965-66 through 1973-74 seasons


Page


. . 10



. . 11



. . 12


. . 13


. . 17


13 The relative changes in the cost components
that make up the total cost of ,.. .'3ssing,
warehousing and selling 48 6-ounce orange
concentrate, 1965-66 through 1973-74 seasons .. ... 18

14 Estimated average costs of processing,warehousing
and selling Florida citrus juices, excluding
sugar, in 12 46-ounce cases, 1961-62 through
1973-74 seasons . . . . . 19

15 Estimated average costs of processing,warehousing
and selling Florida canned sections and chilled
products, 1961-62 through 1973-74 seasons . . .20












ESTIMATED COSTS OF PROCESSING, WAREHOUSING AND
SELLING FLORIDA CITRUS PRODUCTS, 1973-74 SEASON


Daniel S. Tilley





The costs of processing, warehousing and selling Florida citrus

products for the 1973-74 season are estimated to have increased sub-

stantially over 1972-73 levels. The estimated total cost of producing

48 6-ounce cans of orange concentrate has increased to $3.02--a 16

percent increase above 1972-73 levels while the costs of producing

single strength orange juice in 12 46-ounce cans are estimated to have

increased to $2.40--a 12 percent increase over 1972-73 levels. Proces-

sing costs have risen relative to the retail price of the products.


PARTICIPATING FIRMS


The purpose of this study is to develop estimates of processing

costs for Florida citrus products for the 1973-74 season. Citrus pro-

cessing cost data were obtained from 14 firms. The total volume for

each type of product and the percentage of total Florida production

processed by firms in the sample are shown in Table 1. The sample

firms represent a larger share of concentrate, canned sections and

canned juice production than of chilled juice production.



DANIEL S. TILLEY is assistant professor Qf food and resource economics.







Table l.-Volume of citrus products produced by sample firms relative to
the total volume produced in Florida

Percentage
of total Sample
Total Total Florida firms
Product produced produced production producing
Sin produced by each
iy sample Floridaa saple product
firms
firms


- Equivalent units -


Percent


No.


Orange concentrate
(gallons)

Grapefruit concentrate
(gallons)

Canned single strength
orange juice
(24/2 equivalent)

Canned single strength
grapefruit juice
(24/2 equivalent)

Canned blended single
strength juice
(24/2 equivalent)

Canned grapefruit
sections
(gallons)

Chilled orange juice
(gallons)

Chilled grapefruit
juice
(gallons)

Chilled grapefruit
sections
(gallons)

Chilled citrus salad
(gallons)


68,139,554


1,212,003



6,132,874



11,504,672


964,390


1,236,627


2,665,000


171,845,896


9,025,901



10,884,879



20,575,765


1,782,182


3,027,108


112,774,780


542,214 12,820,904


117,984


304,219


1,893,798


4,268,368


aReported by the Florida Canners' Association [1].





3

Most firms provided average unit costs from their audited financial

statements. The following summaries present estimates of the'average

costs for plant operation, warehousing and selling the finished products.

Fruit costs are not shown. The numbers shown in the following tables

are weighted averages where the weights are the volumes packed of each

product by each firm. Weighted averages tend to place the numbers

reported in the tables closer to the costs for those firms with the

larger volume of each of the products.

The firms were not selected according to a sample design. Some of

the year-to-year cost variation can be attributed to variation in the

firms in the sample and the distribution of the total volume of each

package to the sample firms.

Detailed costs were collected into several major cost categories

for each product and can size to give a total cost unsweetened. If the

product is commonly sweetened, average sugar costs for the firms showing

sweetened production was then added.

Selling costs include brokerage as well as the firms' sales

department expense. Discount allowances and brand royalties have been

omitted.


FROZEN CONCENTRATE


The estimated costs of processing, warehousing and selling orange,

grapefruit and blended frozen concentrate in various retail and bulk

forms are shown in Tables 2, 3, 4, 5 and 6.

Estimated average costs for packing 48 6-ounce cans of orange con-

centrate in cases are shown in Table 2 along with item-by-item comparisons

to 1972-73 estimates. Total costs were estimated at $3.02 per case--a 16







Table 2.--Estimated costs of processing, warehousing and selling Florida
orange concentrate, 450 brix, 48 6-ounce cans in cases, 1973-
74 season with comparisons to 1972-73 season levels

Frozen orange concentrate 48 6-oz.

Cost group Estimated cost
Change in cost
1972-73 1973-74

Number of plants 10 9
Number of cases per plant 905,767 773,562


Materials
Cans
Cartons
Labels
Other
Total materials
Processing labor
Direct
Indirect
Payroll taxes & ins.
Total processing labor
Other processing expense
Power, lights, water
Maintenance & repairs
Depreciation
Royalties on machinery
Taxes, insurance, rent
Miscellaneous expense
Total other processing
Total processing expense
Warehousing expense
Whse. & ship., labor & taxes
Other warehousing expense
Total warehouse expense
Administrati e expense
Selling expense
Brokerage
Other selling expense
Total selling expense
Other expense
Advertising tax & insp.
Other (int., misc., dedct.)
Total other expense
ImtaL_ULo s


Cost per case

$1.1048 $1.2362
.0767 .0879


$1.1815 5

$0.2042
.0604
.0332
$0.2978

$0.1o002
.0900
.0429
.0764
.0258
.0817
TO.4170


.0044
$1.3285

$0.2578
.0877
.0410
$0.3865

$0.1117
.1419
.0537
.0746
.0315
.0730
10-.4864


$1.8963 $2.2014


$0.0613
.0745
10.1358


$0. 0864
.1066
-0.1930


$0.1761 $0.1521


$0.0651
.0738
10.1389

$0.1983
.0656
0. 2639


$0.0491
.0788
$0.1279

$0.2248
.1235
07.3483


$2.6110 $3.0227


Actual Percent


+$0.1314
+ .0112

+ .0044
+170.1470

+$0.0536
+ .0273
+ .0078
+$0.0887

+$0.01 15
+ .0519
+ .0108
S.0018
+ .0057
-.0087
+$0.0694


+11.89
+14.60


+12.44

+26.24'
+45.19
+23.49
+29.78

+11.47
+57.66
+25.17
- 2.35
+22.09
-10.64
+16.64


+$0.3051 +16.08


+$0.0251
+ .0321
+$0.0572


+40.94
+43.08
+42.12


-$0.0240 -13.62

-$0.0160 -24.57
+ .0050 + 6.77
-$0.0110 7.91


+$0.0265
+ .0579
+$0.0844


+13.36
+88.26
+31.98


+$0.4117 +15.76


See footnotes on page 14.


1-'---"-"-~1~-- --~1-^11 --





5

Table 3.--Estimated costs of processing, warehousing and selling Florida
frozen concentrate in cases, 450 brix,nine firms, 1973-74 season


Item Orange concentrate

Container size 24/12 12/32

Number of plants 9 9
Number of cases per plant 1,008,503 138,969

Cost per .case
Materials
Cans $0.8835 $0.6700
Cartons .0874 .1066
Labels
Other .0063 .0064
Total materials 0U.9772 $0.7830
Processing labor
Direct $0.2530 $0.3446
Indirect .0844 .1157
Payroll taxes & ins. .0415 s0537
Total processing labor $0.3789 $0.5140
Other processing expense
Power, lights, water $0.1140 $0.1437
Maintenance & repairs .1308 .1975
Depreciation .0497 .0722
Royalties on machinery .0748 .0972
Taxes, insurance rent .0285 .0410
Miscellaneous .0767 .0972
Total other processing expense -0.4745 $0.6489
Total processing expense $1.8306 $1.9459
Warehouse expense
Whse. & shipping, labor & taxes $0.0840 $0.1232
Other warehouse expense .1032 .1445
Total warehouse expense 0.1872 $0.2677
Administrative expense $0.1683 $0.1980
Selling expense
Brokerage $0.0537 $0.0668
Other selling expense .0747 .1039
Total selling expense 0.1284 $0.1707
Other expense
Advertising tax & insp. $0.2230 $0.3004
Other (int., misc.,deductions) .1103 .1631
Total other expense $0.3333 $0.4635


I


$2.6478


$3.0458


Total cost







Table 4.-- Estimated costs of processing, warehousing and selling Florida
frozen concentrate in cases, 450 brix, 1973-74 season

Concentrate
Item
Orange Grapefruit
Container size 24/16 24/6

7:10' i c of firms 8 7
;i',.ir of cases per firm 381,822 33,651

- Cost per case -
Materials
Cans $1.2983 $0.6258
Cartons .1120 .0756
Othe r .0092 .0043
Total materials .14195 0.7057

Direct $0.3310 $0.1464
Indirect .1060 .0493,
Payroll taxes & ins. .0549 .0255
Total processing 'labor $0.4919 $072212
Other processing expense
Power, lights, water $0.1556 $0.0686
Maintenance & repair .1625 .0537
Depreciation .0590 .0200
Ro -Ities on machinery .0991 .0400
Taxes, insurance & rent .0354 .0120
Miscellaneous expense .1043 .0482
Total other processing expense $0.6159 0.2425
Total irocessiL expense $2.5273 $1.1694

i '-1 .~ : 'ipping, labor & taxes $0.1146 $0.0554
Other warehouse expense .1344 .0610
Total warehouse expense -0.2490 T$0.1164
Administrative expense $0.2326 $0.0983
Selling expense
., : $0.0700 $0.0291
., r selling expense .0984 .0345
Total selling expense 30.1684 T 00636
Other expense
Advertisiu tax & insp. $0.2959 $0.1284
Other (int., misc. deductions) .1387 .0414
Total ;... expense $0.4346 $0.1698
T, :_V. $3.6119 $1.6175






Table 5.--Estimated costs per gallon for processing, warehousing and
selling Florida frozen concentrate, 450 brix, 1973-74 season

Concentrate
Item Gallons, 450 Equivalent gallon
in drums 45 all packs

Number of firms 7 9
Number of gallons per firm 932,413 6,761,934

- Cost per gallon - -

Materials
Drums and liners (total) $0.0281 $0.0000

Processing labor
Direct $0.1181 $0.1131
Indirect .0368 .0373
Payroll taxes, insurance .0207 .0187'
Total processing labor $0.1756 $0.1691

Other processing expense
Power, lights, water $0.0540 $0.0511,
Maintenance & repair .0541 .0584
Depreciation .0217 .0218
Royalties on machinery .0358 .0337
Taxes, insurance & rent .0281 .0142
Miscellaneous expense .0273 .0338
Total other processing $0.2210 $0.2130

Total processing expense $0.4247 $0.3821

Warehouse expense
Whse, & shipping, labor & taxes $0.0383 $0.0383
Other warehouse expense .0524 .0469
Total warehouse expense $0.0907 $0.0852

Administrative expense $0.0438 $0.0718

Selling expense
Brokerage $0.0243 $0.0236
Other selling expense .0317 .0334
Total selling expense $0.0560 $0.0570

Other expense
Advertising tax & inspection $0.0983 $0.0993
Other (int., misc.,deduction) .0568 .0493
Total other expense $0.1551 $0.1486


Total costs


$0.7703


$0.7447







Table 6.-- Estimated costs per gallon for processing, warehousing and selling
Florida frozen concentrate, 580 brix, 1973-74 season

Concentrate

Item Orange Grapefruit
Gallon, 58 Gallon, 580
in drums in drums

:i ,;..'" of firms 3 3
Number of gallons per.firms 917,929 397,062

Cost perallon -
Materials
Drums and liners (total) $0.0242 $0.0645
Processi-.j labor
Direct $0.1587 $0.1392
Indirect .0490 .0427
Payroll taxes, insurance .0226 .0227
Total processing labor $0.2303 -0.2046
Other processing expense
Power, lights, water $0.0588 $0.0641
Maintenance & repair .0837 .0467
Depreciation .0434 .0477
Royalties on machinery .0528 .0506
Taxes, insurance & rent .0151 .0038
Miscellaneous expense .0389 .0496
Total other processing $0.2927 -0.2625
Total proSIcessing_ xense $0.5472 $0.5316
Warehouse expense
Whse. & shipping, labor & taxes $0.0469 $0.0431
I:. ; warehouse expense .0472 .0333
Total warehouse expense $0.0941 0.0764
AdministrJative expense $0.0768 $0.1052
Selin !cxeInse
Brokerage $0.0046 $0.0013
Other selling expense .0114 .0028
Total selling expense 5.0160 $0.0041
Other expense
Advertising tax & inspection $0.1062 $0.0634
Other (int., misc. deductions) .0607 .0272
Total other expense $0.1669 $0.0906
Total cost $0.9010 $0.807.9







percent increase above 1972-73 estimates. The third column of Table 2

shows that cans were the item showing the largest absolute increase.

The fourth column-of Table 2 notes that other miscellaneous expenses

showed the largest percentage increase with indirect labor and ware-

housing expenses showing sizeable percentage increases.

Tables 3, 4, 5 and 6 show costs of packing other retail and

institutional packages as well as bulk concentrate in drums.

The changes in costs for the other retail packs are similar

to those shown for the 48 6-ounce cans in cases. The magnitude of

the can cost increase for the case of 48 6-ounce cans is greater than the

increase in can cost for the other retail containers shown. The total

estimated costs for 24 12-ounce and 12 32-ounce cans in cases both

increased about 19 percent over reported 1972-73 levels.

Bulk 450 brix orange concentrate processing, warehousing and

selling costs shown in Table 5 were up 25 percent over 1972-73

estimates while the cost for equivalent gallons for all packs

(excluding materials) is estimated to have increased 19 percent over

1972-73 levels.

The costs of processing 580 brix bulk orange and grapefruit

concentrate are shown in Table 6. It should be noted that only

three firms reported costs for these products and that estimates

are subject to great variability.


SINGLE STRENGTH JUICES AND GRAPEFRUIT SECTIONS


SEstimated average single strength processing, warehousing and

selling costs are shown in Tables 7, 8, 9 and 10.

Table 7 shows estimated single strength processing costs for

12 46-ounce cans in cases for 1973-74 with comparisons to 1972-73







Table 7.'-Estimated costs of process ,, warehousing and selling 12 46-
ounce cans of single strength Florida orange juice in cases,
1973-7a seasons with r-,- prisons to 1972-73 levels


Cost group


'-ner of plants
Average number of cases per
plant


Materials
Cans
Cartons
Labels
Other
Total materials
Process i~in labor
I;- -- '
Indirect
Pa ."1 taxes & ins.
Total processing labor
Other processing expense

Maintenance & repairs
Depreciation
Royalties oru machinery
Taxes, insurance, rent
iscell aneous expense
Total other processing
Total processing_ expense
Warehouse expense
Whse. & ship., labor & taxes
Other warehouse expense
Total warehouse expense
Admi straw tie expense


Other selling expense
Tot.al selling expense
Other -. r
Advertising tax & insp.
Other (int., misc. dedct.)
Total other v-..i.-
T ... .. .. .. ;-_ _. ..:


0.- -, juice 12 46-oz, (excluding sugar)

Cost pe' case


Change in cost


Actual Percent


.1 86
J t



.04 33
.0407


$0.


o,0357
.0133
.0400

$1 ."


.1855 +$0.1017
S' + .0070

S.0017
,.. + O.1070


$0.1 '
.0463
.0233
e'71976

$0.oC )
.0539
.0318

.0156
.0 401

$1 .1


$0.1065 $0.1414
.0781 .0979

$0.0866 i .14


$0.01460

I ,


$0.03
Qn 7'"
9- SR


$0.0731 $0.o
.0319 .0-55 .
21405 $2.139584
$2.1404 $2.3958


-$0.0226
+ .0025
- .0024
-i0.0225

+,0.0082
+ .0058
+ .0024
- .0056
+ .0023
+ .0001

+$0.0976

+$0.0349
+ .0198
+5T-0547
+$0.0614

-$0.0061
-_ .0021
-$0:.0182

+$0.0264
+ .0235
+T0. 0499
+$0.2555


+ 9.38
+ 6.26

- 2.47
+ 8.46

-15.00
+ 5.70
-9.33
-10.22

+20.60
+12.05
+ 8.16
-15.68
+17.29
+ .25
+ 6.39
+ 5.77

+32.76
+25.35
+29.63
+70.90

-13.26
- 7.60
-11.14

+36.11
+73.66
+47.52
+11.93


1972-73 1973-74







Table 8.--Estimated costs of processing, warehousing and selling
Florida citrus fruit juices, 1973-74 season

Blended
Orange juice juice
juice

Container size 48/6 24/2 '24/2

Number of plants 7 6 4
iiu ii:. of cases per plant i83,408 63,676 2,234
*- Cost per case - -
Materials
Cans $1.5174 $1.2139 $1.2709
Cartons -, .1153 .1174
Labels -- .0539 .0763
Other .0023 .0228 .0018
Total materials 17085 T .4059 .
Processing labor
Direct $0.0956 $0.2086 $0.0971
Indirect .0311 .0648 .0440
Payroll taxes & ins. .0163 .0365 .0198
Total processing labor $0.1430 $0.3099 -.1609
Other processing expense
Power, lights, water $0.0263 $0.0356 $0.0560
Maintenance & repairs .0343 .0397 .0545
Depreciation .0187 .0227 .0388
Royalties on machinery .0180 .0207 .0290
Taxes, insurance, rent .0089 .0087 .0285
Miscellaneous expense .0227 .0320 .0229
Total other processing o0.1289 $0.1594 0.2297
Total processing expense $1.8804 $1.8752 $1.8570
Warehouse expense
Whse. & shipping, labor & taxes $0.1129 $0.1277 $0.1137
Other warehouse expense .0787 .0941 .0845
Total warehouse expense $0.1916 $0.2218 $0.1982
Administrative expense $0.0454 $0.1270 $0.0428
Selling expense
Brokerage $0.0363 $0.0363 $0.0300
Other selling expense .0228 .0213 .0238
Total selling expense $0.0591 $0.0576 $0.0538
Other expense
Advertising tax & insp. $0.0529 $0.0782 $0.0816
Other (int., misc. deductions) .0361 .0462 .0569
Total other expense 0.0890 $0.1244 $0.1385
Total cost unsweetened $2.2655 $2.4060 $2.2903
Sugar .0216 .0279 .0129
Total cost sweetened 2.2871T $2.4339 $2.3032








Table 9.-- Estimated costs of processing, warehunsin
citrus fruit juices, 1973-74 season


e Blended
Item I! ce
0' c


adu selling orida




I- e<' ce


Container' size

;... ; Sro : plants
.i-. rases plant




Can's
Cartons
Labels
Other
Total materials


I nd i i r:, ;
i Pyroli t'.es & ins.
Tot:a iFrocessing labor
Mi: i j-it:P~i;l'O"'i''

Maintp..ince & r. i rs
nation
RpryatiP:s on machi. ;"vo
Taxes., iinurance, rent

TO.& t Tther ,' '. .si.,


i- r -ien se
h. : q.., labor & taxes
S,.;'-ii; i.ouse e ..'.ns r.
Y I, -urehouse -. ,ensi 3


A d i i i'. .-Lv,- i I-., l, ,-,


Broker;!
Other : ing expense
'o"ta e'lling expense


tax & insp.
P.OWth;r Qit., misc. deductions)
l t:& iot' her '- P in
To t cl '.it u.nsw eetened


To': ": i sweetened


.09 2

' a


i i





't 8


O150.




^.1ti'r a


3 '


$0, 1127
$C538


2
S.. ...J .^
: "


i I 8G


Tot' *"
Wjarent 2
1 of
siaY.


I
I,

'







Table 10.--Estimated costs of processing, warehousing and selling Florida
canned grapefruit sections and chilled orange juice, 1973-74 season


Item Grapefruit Chilled orange
sections juice

Container size 24/303 6/64 oz.

Number of plants 3 3
Number of cases per plant 350,647 702,611

- Cost per case - -
Materials
Cans $1.0701 $1.0039
Cartons .0935
Labels .0465 .0112
Other .0261 .0081
Total materials $1.2362 $1.0232
Processing labor
Peeling $0.0935 $
Sectionizing .4936
Other direct .7702 .'1147
Indirect labor .1805 .0420
Payroll taxes, ins. .2162 .0253
Total processing labor $1.7540 $0.1820
Other processing expense
Power, lights, water $0.1668 $0.0553
Maintenance & repairs .1395 .0495
Depreciation .0785 .0289
Royalties on machinery .3775 .0235
Taxes, insurance, rent .0456 .0081
Miscellaneous .0670 .0411
Total other processing $0.8749 $0.2064
Total processing expense $3.8651 $1.4116
Warehouse expense
Whse. & shipping, labor & taxes $0.1598 $0.1225
Other warehouse expense .0816 .1005
Total warehouse expense 0.2414 $0.2230
Administrative expense $0.0473 $0.0555
Selling expense
Brokerage $0.0631 $0.0445
Other selling expense .0460 .0262
Total selling expense $0.1091 $0.0707
Other expense
*Advertising tax & insp. $0.0783 $0.0490
Other (int., misc. deductions) .1224 .0548
Total other expense $0.2007 $0.1038
Total cost unsweetened $4.4636 $1.8646
Sugar .2877 --
Total cost sweetened $4.7513 $1.8646







estimates. Cans were the item showing the largest absolute increases

while selling expenses were the items with the greatest percentage in-

crease. Total estimated costs rose by about 12 percent relative to

1972-73 estimates. The decrease in labor cost resulted because of a

change one of the firms made in their costs allocations to canned

single strength juices.

Tables 8 and 9 show estimated costs for other retail packages of

oranges, grapefruit and blended juices. Table 10 reports the weighted

average cost of producing canned grapefruit sections and chilled

orange juice for the three sample firms producing those products.

The costs are shown only for general information and are not felt to

be reliable estimates of the industry average cost.

CITRUS FEED


The estimated costs of processing citrus feed in bulk are shown in

Table 11.

Citrus feed processing costs are estimated to have increased from

just over $22 per ton to nearly $36 per ton. Nearly 5 of the $14

increase can be attributed to increased utility costs (power, water,

lights, steam). Most of the remaining increases took place in labor,

other processing costs and general and administrative expenses.





aFrom Sherrod, Ward and Spurlock [2].

bIn'all of the following tables administrative expenses include
management and office salaries, office expense, telephone and telegraph
and travel.
cIn all of the following tables selling expense exclude allowances,
discounts, brand royalties.







Table 11.-- Estimated costs of processing, warehousing and selling Florida
citrus feed, in bulk, 1973-74'season with comparisons to-
1972-73


Season
em SeasonPercentage
1972-73 1973-74 change
Number of plants 12 10
Number of tons produced per plant 28,077 33,093

Cost per ton
Materials total $ 0.48 $00.79 + 65
Processing labor
Direct $ 2.54 $ 3.92 + 54
Indirect 1.47 2.03 + 38
Payroll taxes & insurance .53 .75 + 42
Total processing labor $ 4.54 $ 6.70 + 48
Other processing expense
Power, water, lights, steam $ 6.34 $11.15 + 76
Maintenance & repairs 2.46 3.84 + 56
Depreciation 2.52 4.24 + 68
Taxes, insurance & rent .97 1.15 + 19
Miscellaneous expense 1.09 1.08 1
Total other processing expense 13.38 $21.46 + 60
Total processing expense $18.40 $28.95 + 57
Warehouse expense
Warehouse & shipping,
labor & taxes $ 1.37 $ 1.64 + 20
Other warehouse expense 1.08 1.26 + 17
Total warehouse expense $ 2.45 $ 2.90 + 18
Administrative expense $ 0.46 $ 2.36 +513
Selling expense
Brokerage $ 0.30 $ 0.13 67
Other selling expense .31 .41 + 32
Total selling expense $ 0.61 $ 0.54 11
Other expense total $ 0.42 $ 1.07 +255
Total costs $22.44 $35.82 + 60

aReported by Sherrod, Ward and Spurlock [2].







COST AND PRICE TRENDS


Processing, warehousing and selling costs remained reasonably

stable until the 1971-72 season. As shown in Table 12, costs for

processing, warehousing and selling 48 6-ounce cans of concentrate

in cases were at only 107 percent of the 1965-68 average until the

1971-72 season. Since the 1971-72 season the index has risen to 135

percent of the 1965-68 average. In the last two columns of Table 12,

the actual and relative retail prices of 48 6-ounce cans of concentrate

are shown. While 1973-74 processing costs were estimated at 135 percent

of 1965-68 levels, 1973-74 prices were at only 117 percent of 1965-68

levels.

Changes in the cost categories that make up the total processing,

warehousing and selling expenses for 48 6-ounce cans of concentrate

are shown in Table 13. Labor, other processing expenses and warehousing

expenses are the items that increased the most relative to 1965-68

levels while materials, selling and other expenses have shown relatively

small increases.

Tables 14 and 15 show how costs of producing other products have

changed since the 1961-62 season.







Table 12.--Total cost for processing, warehousing and selling Florida
frozen, 450 brix, orange concentrate, 1965-66 through 1973-
74 seasons


Average
Cost per equivalent A
SeasonCost per case, Cost per equivalent retail price
Season 4a gallon (excluding
48/6-oz. per 48/6-oz.,
packing materials) per 48/6-o.b
cans in cases


Actual

$0.589

0.456

0.532

0.533

0.597

0.604

0.587

0.627

0.745


Indexc

112

87

101

101

114

115

112

119

142


Actual Indexc

$8.80 108

7.00 86

8.60 106

9.76 120

8.68 107

8.88 109

9.84 .121

9.56 118

9.55 117


years prior to 1973-74 are from Sherrod, Ward and Spurlock [2].


Reported by the Market

CThe index was computed


Research Corporation of America.

as a percentage of the 1965-68 average.


1965-66

1966-67

1967-68

1968-69

1969-70

1970-71

1971-72

1972-73

1973-74


Actual

$2.38

2.07

2.26

2.24

2.38

2.43

2.39

2.61

3.02


Indexc
107

92

101

100

107

109

107

117

135














Table 13.--The relative changes in the component costs that make up the total cost of processing, warehousing and selling 43/6-ounce orange concentrate,
1965-66 through 1973-74 seasons


Season Materials


Labor


Other
processing


Warehousing


Administrative


$ per Percent $ per
case case
1965-66 .9982 99 .2656

1966-67 1.0208 101 .2117

1967-68 1.0128 100 .2729

1958-69 1.0279 102 .2776

1969-70 1.0271 102 .2943

1970-71 1.0627 105 .2881

1971-72 1.0771 107 .2666

1972-73 1.1815 117 .2978

1973-74 1.2362 122 .3865

Basec 1.0106 100 .2501


Percent $ per
case
106 .3872

85 .2759

109 .3705

111 .3380

118 .3355

115 .3769

107 .3728

119 .4170

155 .4864

100 .3445


Percent $ per
caSe
112 .1234

80 .1053

108 .1395

98 .1112

97 .1278

109 .1354

108 .1147

121 .1358

141 .1930

100 .1228


Percent

100

86

114

91

104'

110

93



157

100


$ per
case
.1444

.0766

.1180

.1203

.1211

.1390

.1623

.1761

.1521

.1130


Percent

128

68

104

106

107

123

143

156

135

100


$ oer
case
.1519

.0935

.1249

.1169

.1223

.1514

.1270

.1389

.1279

.1234


Percent

123

76

101

95

99

127

103

113

104

100


$ per
case
.3163

.2825

.2164

.2481

.3556

.2737

.2646

.2639

.3483

.2717


Percent


$ oer Percent
case


116 2.3870 107

104 2.0663 92

80 2.2550 101

91 2.2400 100

131 2.3837 107

101 2.4272 109

97 2.3851 107

97 2.6110 117

122 3.0227 135

100 2.2361 100


aYears prior to 1973-74 are taken from Sherrod, Ward and Spurlock [2].


bIncludes power, water lights, steam, maintenance, repairs, royalties, taxes,


insurance, rent and miscellaneous expenses.


The index for each it was computed as a ercenage of the 1965-68 av e cost shownn i the last row of the table)
The index for each item was computed as a percentage of the 1965-68 average cost (shown in the last row of the table).


Selling


Other


Total


___~_~_I~__


I_1____I LII__


_I__ _~~ 1_1_1_


__ ___~~1~1~_







Estimated average costs of processing, warehousing and selling
Florida citrus juices, excluding sugar, in 12 46-ounce cases,
1961-62 through 1937-74 seasons


S Orange
Seasonjuice
juice


1961-62

1962-63

1963-64

1964-65

1965-66

1966-67

1967-68

1968-69

1969-70

1970-71

1971-72

1972-73

1973-74


1.57

1.79

1.78

1.66

1.75

1.72

1.91

1.90

2.02

2.02

2.05

2.14

2.43


Grapefruit Blende
juice juice

-Dollars per case -

1.54 1.55

1.72 1.74

1.72 1.75

1.62 1.64

1.70 1.74

1.68 1.70

1.88 1.91

1.86 1.91

1.98 2.00

2.06 2.00

2.06 2.05

2.16 2.15

2.52 2.50


aData for years prior to
and Spurlock [2].


1973-74 are taken from Sherrod, Ward


Table 14.


?d Tangerine
juice

--- - -


1.55

1.70

1.75

1.65

1.72

1:69

1.91

1.95

1.92

2.11

2.11







Table 15.--Estimated average costs of processing, warehousing and selling Florida canned sections and
chilled products, 1961-62 through 1973-74 seasons


Canned
grapefruit
sections


Canned
citrus g
salad


Canned
grapefruit
sections


C d Chilled
Chilled
salad orange
juice


12/46 24/303


12/46 24/303


4/1 gal. 12/32


4/1 gal. 12/32


- - Dollars per case -

4.42 3.22 --
4.93 3,58 4.47
4.52 3.44 4.85 3.30
-- 3.39 4.09 3.09
4.78 3.40 4.10 3.17
4,63 3,36 3,85 3,00
5,14 3.65 4,35 3.35
5.78 4.11 4,72 3,95
5.41 4.00 5.14 4,10
5.62 2.42 5.55 4.43
6.04 4.60 5,36 3.13
5.92 4.32 4.90 5.02
7.75 5.56 5.90 5,51


years prior to 1973-74 are from Sherrod, Ward and Spurlock [2].


12/32


1961-62
1962-63
1963-64
1964-65
1965-66
1966-67
1967-68
1968-69
1969-70
1970-71
1971-72
1972-73
1973-74


3.86
4.27
4.29
3.98
4.01
4.02
4.48
5.06
4.96
5.50
5.10
5.16
6.30


2.67
3.04
3.01
2.94
2.94
3.00
3.27
3.66
3.61
3.78
3.85
4.25
4.75


3.68


,5.22
5.45
5.05
5,80
6,18
6,35
6.98
6,82
6.65
7.56


3.48
3.63
4.02
4.46
4,34
4.90
5.14
5.45
6.43


1.51
1.39
1.48
1,31
1,51
1,54
1,55
1,66
1,71
1.75
2,01


~--- ---------1---~~-11-----c------ ------~--












REFERENCES


[1] Florida Canner's Association. Statistical Summary, 1973-74
Season. Winter Haven: 1975.

[2] Sherrod, W. H., Jr., A. Lewis Ward, Jr. and A. H. Spurlock
Cost of Processing, Warehousing and Selling Florida
Citrus Products, 1972-73 Season. Food and Resource
Economics Department Economics Report 62. Gainesville:
May 1974.





!


This public document was promulgated at an annual cost of $2,551.96 or
$1.82 per copy to report citrus processing research results to county
agricutlural directors and firms and agencies in the citrus industry.







CONVERSION FACTORS


Factors are given in the tables below for converting various packs

of actual cases and can sizes for several processed citrus products into

equivalent cases of 24/2 or into gallons.

Canned citrus, juices and sections


Size of can


Can Capacity Equivalent
tensions (fI. oz.) cases 24/2


6 oz.
8 oz. (tall)
No. 303
No. 2
No. 3 (cyl.)


a1 case 24/2


equals 3.375 gallons


Frozen concentrate, 450 brixa


Size of can


Can
dimensions


Equivalent
gallons


6 oz.
6 oz.
12 oz.
No. 3 (32 oz.)
8 oz. (tall)


202
202
211
404
211


X 314
X 314
X 414
X 414
X 304


1.125
2.250
2.250
3.000
3.000


aTo convert gallons 58 brix concentrate to gallons 450 brix,
multiply by 1.36638.


Chilled juices and sections


Desi nation


Equivalent
cases 24/2


12 1 pint 12/1 pt. or 12/16 0.444
12 1 quart 12/1 qt. or 12/32 .888
6 2 quarts 6/64 .888
4 1 gallon 4/1 gal., 4/8, 4/128 1.185


aAdapted from USDA, Processed Foods Inspection Service, Winter
Haven, Florida.

1,400 copies


Cans per
case


202
211
303
307
404


6,55
8.30
16.20
19,70
49.65


0.658
.844
.821
1.000
1.259


Cans per
case


Jars per
case


Contents


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--_~_ __
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