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 Abstract
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Estimated costs of processing, warehousing and selling Florida citrus products
ALL VOLUMES CITATION SEARCH THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
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Permanent Link: http://ufdc.ufl.edu/UF00026338/00006
 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: 1978
 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: UF00026338:00006

Table of Contents
    Front Cover
        Front Cover
    Abstract
        Page i
    Acknowledgement
        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
Full Text

R. Clegg Hooks
Richard L. Kilmer


Econor


RECEIVED AUG 2 61980
mic Information
Report 136


Estimated Costs of Processing,
Warehousing and Selling Florida
Citrus Products, 1978-79 Season


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


July 1980























ABSTRACT


The costs of processing, warehousing and selling Florida citrus
products for the 1978-79 season are estimated to have increased from
1977-78 levels. The estimated total cost of producing 48 6-ounce cans
of orange concentrate increased to $3.76-a four percent increase
from 1977-78 levels while the costs of producing single strength orange
juice in 12 46-ounce cans are estimated to have increased to $3.51-a
ten percent increase from 1977-78 levels.


Key words: citrus marketing, citrus processing,
margins, processing. costs, citrus.


marketing


ACOWLEDGEM2TS


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























ABSTRACT


The costs of processing, warehousing and selling Florida citrus
products for the 1978-79 season are estimated to have increased from
1977-78 levels. The estimated total cost of producing 48 6-ounce cans
of orange concentrate increased to $3.76-a four percent increase
from 1977-78 levels while the costs of producing single strength orange
juice in 12 46-ounce cans are estimated to have increased to $3.51-a
ten percent increase from 1977-78 levels.


Key words: citrus marketing, citrus processing,
margins, processing. costs, citrus.


marketing


ACOWLEDGEM2TS


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
















TABLE OF CONTENTS


Page
SUMMARY ..........*........* ........ 1
SUMMARY I. . . . . .. . .. 1
INRODUCTION . .......... 1

FROZEN CONCENTRATE . . . . .. 3

SINGLE STRENGTH JUICES . . . . 9

CITRUS FEED ........ ........ . ..... 9

COST AND PRICE TRENDS . ......... ...... 9

REFERENCES .... ......... . .. 18

LIST OF TABLES

Table Page

1 Volume of citrus products produced by sample firms
relative to the total volume produced in Florida,
1978-79 season ........ . . ... 2
2 Estimated costs of processing, warehousing and selling
Florida orange concentrate, 450 brix, 48 6-ounce cans in
cases, 1978-79 season with comparisons to 1977-78
season levels ................... 4
3 Estimated costs of processing, warehousing and selling
Florida frozen concentrate in cases, 45" brix, 1978-79
season .................. . 5
4 Estimated costs of processing, warehousing and selling
Florida frozen concentrate in cases, 450 brix, 1978-79
season ........... ... .. ... 6
5 Estimated costs per gallon for processing, warehousing
and selling Florida frozen orange concentrate, 450 brix,
1978-79 season ..... .. . .
6 Estimated costs per gallon for processing, warehousing and
selling Florida frozen concentrate, 580 brix, 1978-79
season . . . .. 8
















LIST OF TABLES (Continued)


Table Page
7 Estimated costs of processing, warehousing and selling
12 46-ounce cans of single strength Florida orange juice
in cases, 1978-79 season with comparisons to 1977-78
levels .................. ..... 10
8 Estimate costs of processing, warehousing and selling
Florida citrus fruit juices, 1978-79 season . .. 11
9 Estimated costs of processing, warehousing and selling
Florida grapefruit juices, 1978-79 season . .. .12
10 Estimated costs of processing, warehousing and selling
Florida citrus feed, in bulk, 1978-79 season with
comparisons to 1977-78 season . .. .. .. 13
11 Total cost for processing, warehousing and selling
Florida frozen, 45* brix, orange concentrate, 1965-66
through 1978-79 seasons . . .. . 14
12 The relative changes in the component costs that make-up
the total cost of processing, warehousing and selling
48 6-ounce orange concentrate, 1965-66 through 1978-79
seasons .................. .... 16
13 Estimated average costs of processing, warehousing and
selling canned Florida citrus juices, excluding sugar,
in 12 46-ounce cases, 1961-62 through 1978-79 seasons 17
















ESTIDPTED COSTS OF PROCESSING, WAREHOUSING AND
SELLING FLORIDA CITRUS PRODUCTS, 1978-79 SEASON

R. Clegg Hooks and Richard L. Kilmer


SUMARY


The costs of processing, warehousing and selling Florida citrus
products for the 1978-79 season are estimated to have increased from
1977-78 levels. The estimated total costs of producing 48 six-ounce
cans of orange concentrate 450 brix has increased to $3.76-a four
percent increase from 1977-78 levels while the costs of producing
single strength orange juice in 12 46-ounce cans are estimated to have
increased to $3.51-a ten percent increase from 1977-78 levels.

INTRODUCTION


The purpose of this study was to develop estimates of processing
costs for Florida citrus products for the 1978-79 season. Citrus
processing cost data were obtained from 11 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 chilled
juices again were not reported because of lack of participation
by enough firms who produce chilled juice.


iBrix- Quantitative measurement of total soluble solids, chiefly
fruit sugars. Brix equals the percent by weight of fruit sugar solids.
For example, each 100 pounds of 450 Brix concentrate would contain
45 pounds of fruit sugar solids.
R. CLEGG HOOKS is an assistant in Agricultural Economics and
RICHARD L. KIIMER is an assistant professor in Food and Resource Economics.








Table 1.--Volume of citrus products produced by sample firms relative to
the total volume produced in Florida, 1978-79 season


Percentage Sample
Total Total of total
firms
Product produced produced Florida
by sample in production puci
firms Florida sample firms eo
product

--- -UNITS-- Percent No.

Orange concentrate 60,733,453 173,100,309 35 11
(gallons 450 brix)
Grapefruit concentrate 1,801,502 14,242,663 13 6
(gallons 42 brix)
Canned single strength 4,640,395 13,221,780 35 5
orange juice
(cases 24/#2 equivalent)
Canned single strength 6,425,092 16,763,570 38 5
grapefruit juice
(cases 24/#2 equivalent)
Canned blended single 431,307 1,254,732 34 4
strength juice
(.cases 24/#2 equivalent)


aReported by the Florida Citrus Processors Association [1].









Most firms provided average total costs per case or per gallon
from their audited financial statements. The following tables
present estimates of the average costs for plant operation, warehousing
and selling the finished products. Fruit costs are not included.
The numbers shown in the following tables are weighted averages where
the weights are the volumes packed of each product by each firm
during the 1978-79 production year. 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 saniple design. Some
of the year-to-year cost variation can be attributed to firms entering
and leaving the sample and the distribution of the total volume of
each product among sample firms.
Detailed costs were aggregated into several major cost categories
for each product and can size to give a total cost unsweetened.
Selling costs include brokerage as well as the firms' sales
department expense. Discount allowances and brand royalties have been
omitted.


FROZEN CONCENTRA


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 six-ounce cans of orange
concentrate in cases are shown in Table 2 along with item-by-item
comparisons to 1977-78 estimates. Total costs were estimated at
$3.76 per case-a four percent increase above 1977-78 estimates. The
items with the largest increase were: cartons, administrative
expense and other deductions which includes interest expense.
Tables 3,4,5 and 6 show costs of packing other retail and in
institutional packages as well as bulk concentrate in drums and
tank farm.
The changes in costs for the other retail packs are similar to
those shown for the 48 six-ounce cans in cases. The total estimated















Table 2.-Estimated costs of processing, warehousing and selling Florida
orange concentrate, 45* brix, 48 6-ounce cans in cases, 1978-79
season with comparisons to 1977-78 season levels


Frozen orange concentrate 48 6-oz.

Estimated cost change

1978-79 1977-78a in Cost

Number of firms 9 8
Number of cases per firm 420,936 540,740


Materials
Cans
Cartons
Other
Total materials
Processing labor
Direct
Indirect
Payroll taxes & ins.
Total processing labor
Other processing expense
Pa..er, lights, water
Maintenance & repairs
Depreciation & rent
Royalties on machinery
Taxes & insurance
Miscellaneous
Total other processing
Total processing expense
Warehousing expense
Whose. & shipping, labor & taxes
Other warehousing expense
Total warehousing expense
b
Administrative expense
Selling expFnse
Brokerage
Other selling expense
Total selling expense
Other expense
Advertising tax & insp.
Other (int., misc. deductions)
Total other expense
Total cost unsweetened


--- Cost per case Percent

$1.4888 $1.4011 + 6
.1101 .0956 + 15
.0022 .0082 73
$1.6011 $1.5049 + 6


$0.2669
.1187
.0659
$0.4515

$0.1618
.1660
.1094
.0765
.0316
.1162
$0.6615
$2.7141

$0.0761
.1507
$0.2268
$0.1563

$0.1213
.0850
$0.2063

$0.2042
.2520
$0.4562


$0.2553
.1261
.0702
$0.4517

$0.1673
.1573
.1223
.0819
.0328
.1238

$2.6420

$0.0763
.1441
$0.2204
$0.1323

$0.1244
.0995
$0.2239

$0.2474
.1625
$0.4099


+ 5
- 6
- 6
0

3
+ 6
- 11
- 7
- 4
- 6
- 3
+ 3

0
+ 5
+ 3
+ 18

- 2
- 15
- 8

- 17
+ 55
+ 11


$3.7597 $3.6285 + 4


aFrom Hooks [2].
bin this and the following tables
management and office salaries, office
and travel.
CIn this and the following tables
discounts and brand royalties.


administrative expense include
expense, telephone and telegraph,

selling expense excludes allowances,








Table 3.-Estimated cost of processing, warehousing and
selling Florida frozen concentrate in cases,
45" brix, 1978-79 season


Item Orange Concentrate

Containers per case/container size 24/12oz. 12/32oz.
Number of plants -9 9
Average number of cases per plant 981,220 219,975
----Cost per case
Materials
Cans $1.0106 $0..9373
Cartons .1096 .1344
Labels .0000 .0000
Other .0061 .0060
Total materials $1.1263 $1.0777
Processing labor
Direct $0.2651 $0.3627
Indirect .1282 .1664
Payroll taxes & ins. .0685 .0987
Total processing labor $0.4618 $0.6278
Other processing expense
Power, lights, water $0.1552 $0.2168
Maintenance & repairs .1570 .2193
Depreciation & rent .1167 .1735
Royalties on machinery .0788 .1099
Taxes & insurance .0307 .0451
Miscellaneous .1196 .1628
Total other processing $0.6580 $0.9274
Total processing expense $2.2461 $2.6329

Warehouse expense
Whse. & shipping, labor & taxes $0.0699 $0.0967
Other warehouse expense .1424 .1953
Total warehouse expense $0.2123 $0.2920
Administrative expense $0.1516 $0.2174
Selling expense
Brokerage $0.1248 $0.1706
Other selling expense .0893 .1174
Total selling expense $0.2141 $0.2880
Other expense
Advertising tax & insp. $0.2049 $0.2538
Other (int., misc. deductions) .2404 .3522
Total other expense $0.4453 $0.6060

Total cost unsweetened $3.2694 $4.0363







Table 4.--Estimated costs of processing, warehousing and selling
Florida frozen concentrate in cases, 45 brix, 1978-79
season

Item Concentrate

Orange Grapefruit

Container s per case/container size 24/16 oz. 24/6 oz.
Number of firms 9 6
Average number of cases per firm 338,364 34,466
-----Cost per case

Materials
Cans $1.2582 $0.7319
Cartons .1350 .0994
Labels .0000 .0000
Other .0077 .0071
Total materials $1.4009 $0.8384
Processing labor
Direct $0.3567 $0.1252
Indirect .1720 .0677
Payroll taxes & ins. .0941 .0393
Total processing labor $0.6228 $0.2322
Other processing expense
Power, lights, water $0.2151 $0.0841
Maintenance & repairs .2035 .0683
Depreciation & rent .1549 .0562
Royalties on machinery .1055 .0341
Taxes & insurance .0421 .0169
Miscellaneous .1553 .0527
Total other processing $0.8764 $0.3123
Total processing expense $2.9001 $1.3829

Warehouse expense
Whose. & shipping, labor & taxes $0.0913 $0.0479
Other warehouse expense .1831 .0863
Total warehouse expense $0.2744 $0.1342
Administrative expense $0.2003 $0.0679
Selling expense
Brokerage $0.1589 $0.0448
Other selling expense .1161 .0418
Total selling expense $0.2750 $0.0866
Other expense
Advertising tax & insp. $0.2671 $0.1274
Other (Int., misc deductions) .3064 .0858
Total other expense $0.5735 $0.2132


Total cost unsweetened


$4.2233


$1.8848









Table 5.--Estimated costs per gallon for processing, warehousing
and selling Florida frozen orange concentrate, 45" brix,
1978-79 season

Item Concentrate

Gallons, 45" Equivalent gallon
in drums 45T all packs

Number of firms 7 11
Average number of gallons per firm 1,970,088 5,521,223
------Cost per gallon-

Materials
Drums and liners (total) $0.0329 $0.0000
Processing labor
Direct $0.1013 $0.1143
Indirect .0396 .0528
Payroll taxes & ins. .0209 .0287
Total processing labor $0.1618 $0.1958
Other processing expense
Power, lights, water $0.0651 $0.0694
Maintenance & repairs .0695 .0703
Depreciation & rent .0787 .0573
Royalties on machinery .0361 .0354
Taxes & insurance .0182 .0149
Miscellaneous .0431 .0505
Total other processing $0.3107 $0.2978
Total processing expense $0.5054 $0.4936
Warehouse expense
Wnse. & shipping, labor & taxes $0.0149 $0.0276
Other warehouse expense .0427 .0579
Total warehouse expense $0.0576 $0.0855
Administrative expense $0.0787 $0.0706
Selling expense
Brokerage $0.0270 $0.0476
Other selling expense .0137 .0331
Total selling expense $0.0407 $0.0807
Other expense
Advertising tax & insp. $0.0945 $0.0912
Other (int., misc. deductions) .0928 .1023
Total other expense $0.1873 $0.1935


Total cost unsweetened


$0.8697


$0.9239








Table 6.-Estimated costs per gallon for processing, warehousing
and selling Florida frozen concentrate, 58* brix, 1978-79
season

Concentrate
Item
Orange Grapefruit

Gallon, 58 Gallon, 580
in drums in drums

Number of firms 5 3
Average number of gallons per firm 3,203,658 119,115
----Cost per gallon----

Materials
Drums and liner (total) $0.0000 $0.0424

Processing labor
Direct $0.1155 $0.2043
Indirect .0514 .1483
Payroll taxes & ins. .0260 .0660
Total processing labor $0.1929 $0.4186
Other processing expense
Power, lights, water $0.0765 $0.0900
Maintenance & repairs .0770 .0756
Depreciation & rent .0605 .0585
Royalties on machinery .0365 .0429
Taxes & insurance .0142 .0186
Miscellaneous .0620 .0645
Total other processing $0.3267 $0.3501
Total processing expense $0.5196 $0.8111
Warehouse expense
Whse. & shipping, labor.& taxes $0.0325 $0.0249
Other warehouse expense. .0739 .0476
Total warehouse expense $0.1064 $0.0725
Administrative expense $0.0671 $0.0649
Selling expense
Brokerage $0.0373 $0.0160
Other selling expense .0280 .0247
Total selling expense $0.0653 $0.0407
Other expense
Advertising tax & insp. $0.1119 $0.1576
Other (int., misc. deductions) .1889 .1100
Total other expense $0.3008 $0.2676


Total cost unsweetened


$1.2568


$1.0592










costs for 24 12-ounce, 24 16-ounce and 12 32-ounce cans in cases
increases two, two and four percent above 1977-78.
Bulk 450 brix orange concentrate costs shown in Table 5 were
down four percent from 1977-78 estimates while the cost for equivalent
gallons for all packs (excluding materials) is estimated to have
increased 0.5 percent.
The costs of processing 580 brix bulk orange and grapefruit
concentrate are shown in Table 6.


SINGLE STRENGTH JUICES


Estimated average single strength processing, warehousing
and selling costs are shown in Tables 7,8 and 9.
Table 7 shows estimated single strength processing costs for
12 46-ounce cans in cases for 1978-79 with comparisons to 1977-78
estimates. Administrative expense was the item showing the largest
absolute increase, while cost increases for other items ranged from
one to thirty-five percent with the outcome being a ten percent increase
in total costs over 1977-78 estimates.


CITRUS FEED


The estimated costs of processing citrus feed in bulk are shown
I
in Table 10.
Citrus feed processing costs per ton for 1978-79 are estimated
to be $44.61, a five percent increase over the 1977-78 season.


COSTS AND PRICE TRENDS


Costs for processing, warehousing and selling 48 6-ounce cans of
concentrate in cases remained relatively stable through the 1971-72
season (Table 11). From 1971-72 through 1974-75, costs increased by
$1.03 (46 points) while average retail.price increased $.25 (3 points).
Since 1974-75, costs have increased 52 cents (23 points) while the
average retail price has increased $7.51 (92 points).






10

Table 7.--Estimated costs of processing, warehousing and selling 12 46-
ounce cans of single strength Florida orange juice in cases,
1978-79 season with comparisons to 1977-78 levels

Orange juice 12 46-oz. cans
(excluding sugar)
Cost group Season Change
in cost
1978-79 1977-78

Number of firms 5 5
Average number of cases per firm 522,201 555,663
-----Cost per case--- Percent
Materials
Cans $1.9674 $1.7312 + 14
Cartons .1556 .1426 + 9
Labels and other .1197 .1134 + 6
Total materials $2.2427 $1.9872 + 13
Processing labor
Direct $0.1593 $0.1549 + 3
Indirect .0716 .0724 1
Payroll taxes & ins. .0402 .0454 I
Total processing labor $0.2711 $0.2727 1
Other processing expense
Power, lights, water $0.0833 $0.0716 + 16
Maintenance & repairs .1182 .0826 + 43
Depreciation & rent .0528 .0581 9
Royalties on machinery .0415 .0408 + 2
Taxes & insurance .0151 .0162 7
Miscellaneous .0665 .0576 + 15
Total other processing $0.3774 $0.3269 + 15
Total processing expense $2.8912 $2.5868 + 12
Warehouse expense
Whse. & ship., labor & taxes $0.1078 $0.1063 + 1
Other warehouse expense .0991 .0976 + 2
Total warehouse expense $0.2069 $0.2039 + 1
Administrative expense $0.1000 $0.0741 + 35
Selling expense
Brokerage $0.0813 $0.0824 1
Other selling expense .0603 .0573 + 5
Total selling expense $0.1416 $0.1397 + 1
Other expense
Advertising tax & insp. $0.0777 $0.1175 34
Other (int., misc. deduction) .0900 .0649 + 39
Total other expense $0.1677 $0.1824 8


Total cost unsweetened


$3.5074 $3.1869


+ 10








Table 8.-Estimated costs of processing, warehousing and selling
Florida citrus fruit juices, 1978-79 season

Orange juice Blended
juicea

Containers per case/container size 48/6 oz. 12/46 oz.

Number of firms 5 4
Average number of cases per firm 225,924 84,371
--Cost per case ---


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 & rent
Royalties on machinery
Taxes & insurance
Miscellaneous
Total other processing
Total processing expense
Warehouse expense
Whse. & shipping, labor & taxes
Other warehouse expense
Total warehouse expense
Administrative expense
Selling expense
Brokerage
Other selling expense
Total selling expense
Other expense
Advertising tax & insp.
Other (int., misc deductions)
Total other expense
Total cost unsweetened


$2.4611
.1081
.0000
.0091
$2.5783

$0.1121
.0513
.0312
$0.1946

$0.0438
.0589
.0344
.0225
.0090
.0345
$0.2031
$2.9760

$0.0893
.0786
$0.1679
$0.0579

$0.0639
.0488
$0.1127

$0.0338
.0620
$0.0958
$3.4103


$1.9311
.1543
.0707
.0418
$2.1979

$0.1782
.0818
.0456
$0.3056

$0.0966
.0984
.0697
.0326
.0184
.0599
$0.3756
$2.8791

$0.0974
.0816
$0.1790
$0.0761

$0.0635
.0545
$0.1180

$0.0724
.1288
$0.2012
$3.4534


aBlended juice: a blend of orange and grapefruit juices.








Table 9.--Estimated costs of processing, warehousing and selling
Florida grapefruit juices, 1978-79 season

Item Grapefruit juices

Containers per case/container size 48/6 oz. 12/46 oz.

Number of firms 5 5
Average number of cases per firm 219,765 784,298
-----Cost per case

Materials
Cans $2.4640 $1.9490
Cartons .1087 ,1556
Labels .0000 .0831
Other .0069 .0381
Total materials $2.5796 $2.2258
Processing labor
Other direct $0.1078 $0.1630
Indirect labor .0485 .0736
Payroll taxes, ins. .0301 .0439
Total processing labor $0.1864 $0.2805
Other processing expense
Power, lights, water $0.0456 $0.0789
Maintenance & repairs .0550 .1186
Depreciation & rent .0374 .0583
Royalties on machinery .0160 .0311
Taxes & insurance .0092 .0153
Miscellaneous .0332 .0667
Total other processing $0.1964 $0.3699
Total processing expense $2.9624 $2.8762
Warehouse expense
Whse. & ship., labor & taxes. $0.0869 $0.1047
Other warehouse expense .0767 .0967
Total warehouse expense $0.1636 $0.2014
Administrative expense $0.0544 $0.0921
Selling expense
Brokerage $0.0567 $0.0688
Other selling expense .0456 .0537
Total selling expense $0.1023 $0.1225
Other expense
Advertising tax & insp. $0.0423 $0.0970
Other (int., misc. deduction) .0665 .0999
Total other expense $0.1088 $0.1969
Total cost unsweetened $3.3915 $3.4891








Table 10.-Estimated costs of processing, warehousing and selling
Florida citrus feed in bulk, 1978-79 season with
comparisons to 1977-78


Season Change
in cost
1978-79 1977-78a

Number of firms 7 7
Av. number of tons produced per firm 29,589 30,704
---Cost per ton- Percent
Materials total $ 1.71 $ 1.34 + 28
Processing labor
Direct $ 5.17 $ 5.01 + 3
Indirect 1.69 1.45 + 17
Payroll taxes & insurance 1.18 1.24 4
Total processing labor $ 8.04 $ 7.70 + 4
Other processing expense
Power, lights, water $16.05 $14.94 + 7
Maintenance & repairs 6.19 5.50 + 13
Depreciation & rent 5.33 5.55 4
Taxes & insurance 1.02 .96 + 6
Miscellaneous 1.32 1.66 20
Total other processing $29.91 $28.61 + 5
Total processing expense $39.66 $37.65 + 5
Warehouse expense
Whse. & shipping, labor & taxes $ 1.02 $ 1.22 16
Other warehouse expense .99 .99 0
Total warehouse expense $ 2.01 2.21 9
Administrative expense $ 0.86 $ 0.78 + 6
Selling expense
Brokerage $ 0.28 $ 0.28 0
Other selling expense 0.52 0.50 + 4
Total selling expense $ 0.80 $ 0.78 + 3
Other expense total $ 1.28 $ 1.08 + 19
Total costs $44.61 $42.50 + 5


citrus feed -- A by-product of processing fresh citrus into juice,
concentrate or canned fruit. It consists of dried citrus pulp with
lime added. The major use for this by-product is cattle feed.
bReported by Hooks [2].
CDoes not include bag costs.









Table 11.-Total cost for processing, warehousing and
selling Florida frozen, 45 brix, orange concentrate,
1965-66 through 1978-79 seasons


Average retail price
Season Cost per case, a per 48/6-oz.bcans
48/6-oz. cans in cases


Actual Index Actual IndexF

1965-66 $2.38 107 $ 8.80 108
1966-67 2.07 92 7.00 86
1967-68 2.26 101 8.60 106
1968-69 2.24 100 9.76 120
1969-70 2.38 107 8.68 107

1970-71 2.43 109 8.88 109
1971-72 2.39 107 9.84 121
1972-73 2.61 117 9.56 118
1973-74 3.02 135 9.55 117
1974-75 3.42 153 10.09 124

1975-76 3.24 145 10.66 131
1976-77 3.49 156 12.80 157
1977-78 3.63 162 13.16 162
1978-79 3.76 168 17.57 216


years prior to 1977-78 are fron Hooks [2].
Reported by the Market Research Corporation of America.
CThe index was computed as a percentage of the 1965-68 average.






15



Changes in the cost categories that make-up the total processing,
warehousing and selling expenses for 48 6-ounce cans of orange con-
centrate are shown in Table 12. Other processing and selling costs
decreased while the remaining cost categories remained constant
(labor) or increased relative to 1977-78.
Table 13 shows how costs of producing canned products have
changed since the 1961-62 season.















Table 12.--T" i' lativ'L changes in tlh c ci wncnt costs dtit nuink utp t-h total cost of procc-sinj,, wardhousing and Acllinj 4d/u-
otucnc ou3raji co~nxuitratc, 1965-66 tihroujh 197t-79 saiCons'


Soasoa Ma4trials Labor Oulr b Waruiousing Aainistirative Selling Otui.r total
processing


$/ca.se PercrnL $/ca- Prcnt /c Prcernt P /case Percent S/caso Percent S/case Pawco.nt $ase ; Prccont $/case Perc nt
1965-66 .9982 99- .2G56 106 .3872 112 .1234 100 .1444 12U .1519 123 .3163 116 2.3370 107


1966-67 1.0208 101 .2117 85 .2759 80
1967-68 1.0128 100 .2729 109 .3705 108
1968-69 1.0279 102 .2776 111 .3380 98
1969-70 1.0271 102 .2943 118 .3355 97
1970-71 1.0627 105 .2881 115 .3769 109
1971-72 1.0771 107 .2666 108 .3728 108
1972-73 1.1815 117 .2978 119 .4170 121
1973-74 1.3285 131 .3865 155 .4864 141
1974-75 1.65-4 164 .3654 146 .5130 149
1975-76 1.5213 151 .3394 136 .5468 159
1976-77 1.4557 144 .4463 178 .6302 183
1977-78 1.5049 149 .4517 181 .6854 199
1978-79 1.6011 158 .4515 181 .6615 192


Base0 1.0106 100 .2501 100


.1053 86
.1395 114
.1112 91
.1278 104
.1354 110
.1147 93
.1358 111
.1930 157
.2240 182
.2005 163
.2196 179
.2204 179
.2268 185


.3445 100 .1228 100


.0766 68
.1180 104
.1203 106
.1211 107
.1390 123
.1623 143
.1761 156
.1521 135
.1636 145
.1247 110
.1460 129
.1323 117
.1563 138

.1130 100


.0935 76 .2825
.1249 101 .21164
.1169 95 .2481
.1223 99 .3556
.1514 127 .2737
.1270 103 .2646
.1389 113 .2639
.1279 104 .34'3
.1566 127 .3435
.1490 121 .3622
.2006 163 .3900
.2239 131 .4099
.2063 167 .4562


104 2.06G3 92
80 2.2550 101
91 2.240-0 100
131 2.3837 107
101 2.4272 109
97 2.3351 107
97 2.6110 117
122 3.0227 135
126 3.4194 153
133 3.2439 145
144 3.4884 156
151 3.6235 162
168 3.7597 168


.1234 100 .2717 100 2.2361 100


years prior to 1977-78 are taken frma Hooks [2].

bInclud-e power, water lights, steam, muintonance, repairs, royalties, taxes, insurance, rent and miscellaneous Cx=inses.

cThe index for each itE was conputod as a percentage of the 1965-68 average cost (sh un in the last.row of the table).









Table 13.-Estimated average costs of processing, warehousing and
selling canned Florida citrus juices, excluding sugara
in 12 46-ounce cases, 1961-62 through 1978-79 seasons


Season Orange Grapefruit Blended
jlice juice juice

---Dollars per case-

1961-62 1.57 1.54 1.55
1962-63 1.79 1.72 1.74
1963-64 1.78 1.72 1.75
1964-65 1.66 1.62 1.64
1965-66 1.75 1.70 1.74

1966-67 1.72 1.68 1.70
1967-68 1.91 1.88 1.91
1968-69 1.90 1.86 1.91
1969-70 2.02 1.98 2.00
1970-71 2.02 2.06 2.00

1971-72 2.05 2.06 2.05
1972-73 2.14 2.16 2.15
1973-74 2.43 2.52 2.50
1974-75 2.91 2.87 2.93
1975-76 2.89 2.82 2.89

1976-77 2.92 2.92 2.87
1977-78 3.19 3.15 3.16
1978-79 3.51 3.49 3.45


aData for years prior to 1977-78 are taken from Hooks


[2].















REFERENCES


[1] Florida Citrus Processors Association. Statistical Summary,
1978-79 Season. Winter Haven: 1980

[2] Hooks, R. Clegg and Richard L. Kilmer. Estimated Costs of
Processing, Warehousing and Selling Florida Citrus Products,
1977-78 Season. Food and Resource Economics Department.
Economic Information Report 123. Gainesville: November 1979.


























This public document was promulgated at an annual cost of $1057.00 or
$0.88 per copy to report citrus processing research results to county
agricultural directors and firms and agencies in the citrus industry.