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Costs of packing and selling Florida fresh citrus fruits
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Permanent Link: http://ufdc.ufl.edu/UF00027603/00001
 Material Information
Title: Costs of packing and selling Florida fresh citrus fruits
Series Title: <1971-72 season>-1972-73 season Economics report
Portion of title: Cost of packing and selling Florida fresh citrus fruits
Physical Description: v. : ; 27 cm.
Language: English
Creator: University of Florida -- Agricultural Economics Dept
University of Florida -- Food and Resource Economics Dept
Publisher: Dept. of Agricultural Economics, Florida Agricultural Experiment Stations, Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville
Creation Date: 1968
Frequency: annual
regular
 Subjects
Subjects / Keywords: Citrus fruit industry -- Costs -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
serial   ( sobekcm )
 Notes
Dates or Sequential Designation: Ceased with 1972-73 season.
Issuing Body: Issued by: Dept. of Agricultural Economics, University of Florida, <1969-70 season->; Food and Resource Economics Dept., University of Florida, <1971-72 season>-1972-73 season.
General Note: Title varies slightly.
General Note: Description based on: 1969-70 season; title from cover.
Funding: Florida Historical Agriculture and Rural Life
 Record Information
Source Institution: Marston Science Library, George A. Smathers Libraries, University of Florida
Holding Location: Florida Agricultural Experiment Station, Florida Cooperative Extension Service, Florida Department of Agriculture and Consumer Services, and the Engineering and Industrial Experiment Station; Institute for Food and Agricultural Services (IFAS), University of Florida
Rights Management: All rights reserved, Board of Trustees of the University of Florida
Resource Identifier: oclc - 23368100
lccn - 91649936
System ID: UF00027603:00001
 Related Items
Succeeded by: Estimated costs of packing and selling fresh Florida citrus

Table of Contents
    Copyright
        Copyright
    Title Page
        Title
    Table of Contents
        Page 1
    Introduction
        Page 1
        Page 2
    Costs of packing and selling, 1968-69
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
    Variations in packing and selling costs among firms
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
    Relationship of seasonal volume to average cost of packing and selling
        Page 20
    Trends in packing and selling cost
        Page 21
Full Text





HISTORIC NOTE


The publications in this collection do
not reflect current scientific knowledge
or recommendations. These texts
represent the historic publishing
record of the Institute for Food and
Agricultural Sciences and should be
used only to trace the historic work of
the Institute and its staff. Current IFAS
research may be found on the
Electronic Data Information Source
(EDIS)

site maintained by the Florida
Cooperative Extension Service.






Copyright 2005, Board of Trustees, University
of Florida




February 1970


Costs o


Ag. Econ. Report 4


f Packing and Selling


Florida Fresh Citrus Fruits

1968-69 Season


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


A. H. Spurlock
Agricultural Economist


- -e -L ---~~ L- l -~--L -- I L~s~ZII~P. ..... .~e~















COSTS OF PACKING AND SELLING FLORIDA
FRESH CITRUS FRUITS, 1968-69

BY
A. H. SPURLOCK

CONTENTS
Page

Introduction . . . . ... . . .1

Costs of Packing and Selling, 1968-69 . . . 3

Variations in Packing and Selling Costs Among Firms . ... .14

Relationship of Seasonal Volume to Average Cost of Packing
and Selling . . . ... . ... 20

Trends in Packing and Selling Cost . . . ... .21



Introduction

This summary is based on the accounting records of 40 citrus packinghouses
for the citrus marketing season 1968-69. Twelve of these houses were located
in the Indian River section along the East Coast and 28 were in the Interior
section.

The volume of fruit packed by the 40 packinghouses in 1968-69 amounted to
13,111,804 equivalent boxes of 1-3/5 bushels, or approximately 51 percent of
the certified fresh fruit shipments. The packed volume ranged from 11,000 to
951,000 boxes and averaged 327,795 boxes. Thus, the sample packinghouses were
considerably larger than the average of all citrus packinghouses in the state.
These latter averaged only 174,000 boxes for licensed and regulated fresh fruit
shippers who handled fruit from 147 houses in 1968-69.2 Seven of these houses
shipped less than 1,000 boxes.

The distribution of fruit handled by class of fruit is shown in Table 1.
Data on cannery fruit through the house (eliminations) from two houses, and
direct grove-to-cannery fruit from eight houses were not obtained.

Calculated from data in 1968-69 Season Annual Report, Division of Fruit and
Vegetable Inspection, Florida Department of Agriculture.
2
From data compiled by the Growers Administrative Committee from the records
of the Fruit and Vegetable Inspection Division,Florida Department of Agriculture.















COSTS OF PACKING AND SELLING FLORIDA
FRESH CITRUS FRUITS, 1968-69

BY
A. H. SPURLOCK

CONTENTS
Page

Introduction . . . . ... . . .1

Costs of Packing and Selling, 1968-69 . . . 3

Variations in Packing and Selling Costs Among Firms . ... .14

Relationship of Seasonal Volume to Average Cost of Packing
and Selling . . . ... . ... 20

Trends in Packing and Selling Cost . . . ... .21



Introduction

This summary is based on the accounting records of 40 citrus packinghouses
for the citrus marketing season 1968-69. Twelve of these houses were located
in the Indian River section along the East Coast and 28 were in the Interior
section.

The volume of fruit packed by the 40 packinghouses in 1968-69 amounted to
13,111,804 equivalent boxes of 1-3/5 bushels, or approximately 51 percent of
the certified fresh fruit shipments. The packed volume ranged from 11,000 to
951,000 boxes and averaged 327,795 boxes. Thus, the sample packinghouses were
considerably larger than the average of all citrus packinghouses in the state.
These latter averaged only 174,000 boxes for licensed and regulated fresh fruit
shippers who handled fruit from 147 houses in 1968-69.2 Seven of these houses
shipped less than 1,000 boxes.

The distribution of fruit handled by class of fruit is shown in Table 1.
Data on cannery fruit through the house (eliminations) from two houses, and
direct grove-to-cannery fruit from eight houses were not obtained.

Calculated from data in 1968-69 Season Annual Report, Division of Fruit and
Vegetable Inspection, Florida Department of Agriculture.
2
From data compiled by the Growers Administrative Committee from the records
of the Fruit and Vegetable Inspection Division,Florida Department of Agriculture.













Table l.--Distribution of Citrus Fruit Handled by Class of Fruit, 40 Packing-
houses, 1968-69 Season 1


Class of Fruit


Total
Volume


Average Volume
Per House


Percent of
Total Volume


1-3/5 bushel 1-3/5 bushel
equivalents equivalents
12 East Coast Packinghouses:
Packed fruit 2,994,295 249,524 46.3
Cannery fruit through house 1,972,339 164,362 30.6
Total through house 4,966,634 413,886 76.9
Direct, grove-to-cannery 1,494,721 124,560 23.1
Total 6,461,355 538,446 100.0

28 Interior Packinghouses:
Packed fruit 10,117,507 361,340 31.1
Cannery fruit through house 7,786,416 278,076 23.9
Total through house 17,903,923 639,416 55.0
Direct, grove-to-cannery 14,630,956 522,534 44.9
Packed fruit purchased 20,237 723 .1
Total 32,555,116 1,162,673 100.0

40 Packinghouses:
Packed fruit 13,111,802 327,795 33.6
Cannery fruit through house 9,758,755 243,969 25.0
Total through house 22,870,557 571,764 58.6
Direct,grove-to-cannery 16,125,677 403,142 41.3
Packed fruit purchased 20,237 506 .1
Total 39,016,471 975,412 100.0
1
Cannery fruit through house from two houses and grove-to-cannery fruit from
eight houses, not obtained.













Packed fruit represented only 34 percent of the total volume of all houses,
but was 46 percent of the East Coast houses and 31 percent of the other houses.
Fruit going direct from grove-to-cannery was 41 percent of the total of all
houses, but only 23 percent of the East Coast houses. The packed fruit of the
East Coast houses consisted of 76 percent grapefruit, 22 percent oranges, and
2 percent tangerines; the Interior had 40 percent grapefruit, 53 percent oranges
and 9 percent tangerines. The East Coast firms ran a larger percentage of
their total fruit through the house and, except for oranges, got a higher
percentage packout than the other group of packinghouses.

When adjusted for the packinghouses not supplying data on eliminations,
the packout averaged 56.2 percent of the fruit through the house for 38 houses,
with 60.3 percent for the East Coast group, and 55.0 percent for the Interior
houses. (Table 2).

Table 2.--Percent of Total Fruit Received Which was Packed for Shipment, 38
Packinghouses, 1968-69

Kind of Fruit East Coast Interior All
Houses Houses Houses
Percent Percent Percent

Oranges 50.6 53.8 53.4
Grapefruit 63.4 55.7 58.5
Tangerines 79.2 60.8 61.7
All Fruit 60.3 55.0 56.2


Costs of Packing and Selling, 1968-69

The cost data made available by the fresh fruit packinghouses showed the
itemized expenses of each for 1968-69 together with the boxes of fruit handled
by kind of fruit and type of container. Distribution of the various items of
cost to each kind of fruit and each container was usually made by the firm's
own accountants or by outside auditors. For 10 houses which had only total
costs by items of expense, allocations were made to each pack using average
ratios based on labor requirements. Thus, there were several different methods
of cost allocations used in the original data from which the averages were de-
rived. Methods used for distributing materials costs, general and administra-
tive and selling expenses appeared to be similar, but labor and other direct
operating costs were allocated by various methods. In some of the packinghouses,
a proportion of the labor for receiving and dumping and for grading was allocated
to the fruit graded out for canneries (eliminations). A few of ;the houses also
charged a small amount of some other labor to eliminated fruit. Any othir direct
operating expenses allocated to the eliminated fruit were at a lower per-box
rate than to the packed fruit. In a large number of the houses the eliminated
fruit was charged only with administrative expense at the same rate as fruit
going direct from grove-to-cannery.














The total volume of citrus fruit handled by type of container and kind of
fruit is shown in Table 3. The number of sample houses using each container
is also shown with the total cost of packing and selling. Packing and selling
costs for those containers handled in small volumes and by few houses are not
considered representative as they may reflect unusual conditions and costs.
Itemized costs for thh principal packs are treated in subsequent tables.

The 40 packinghouses prepared a total of 30 different packs of fruit plus
a mixed group of miscellaneous containers for each type of fruit. This is a
reduction of more than 25 percent from the previous season in the kinds of
packages used and follows an industry decision to eliminate some types. The
4/5 bushel fiberboard box was the most important container used for oranges
and grapefruit in 1968-69 and carried 62 percent of the total volume of both
fruits (51% oranges, 72% grapefruit). This was followed by the 4/5 bushel
Bruce box and 5-1b. polyethylene and vexar bags in master cartons for oranges.
For grapefruit, 5-lb. polyethylene and 5-lb. vexar bags packed in master
cartons were the principal containers after the fiberboard box. Almost all
of the tangerines were packed in two types of 4/5 bushel wirebound boxes.

Itemized costs of packing and selling oranges, grapefruit and tangerines
for the 1968-69 season are given in Table 4 for 40 packinghouses. This table
shows the weighted average costs for the major items of expenses by type of
pack, together with the number of firms packing each container and the average
volume per house using each. Only the more important packs are included in
these detailed tables, but they represent 96 percent of the packed fruit.

Costs of handling cannery fruit direct-from-grove also are shown in Table
4. This operation was not separated by kind of fruit, but represents a mixture
of all kinds.

Costs for the principal packs handled by the East Coast houses are shown
separately from the other houses. The principal reason for separating the
two sections is that the East Coast houses generally used a heavier fiberboard
box which cost 6 or 7 cents more than the one used by the Interior houses. The
4/5 bushel wirebound boxes were also more expensive for the East Coast houses,
but were used in lower volume.











Table 3.--Number of Firms, Volume of Citrus Fruit Handled and Total Packing and
Selling Cost By Type of Container, 40 Packinghouses, Florida 1968-69.


Number
of
Firms


Total


Volume


Average
Per Firm


Total
ing
Cost Per


1-3/5 bushel equivalent boxes


Oranges:
4/5 bu. fiberboard carton
4/5 bu. Bruce box
5-1b.vexar bag in master carton
5-1b. poly. bag in master carton
Bulk in truck
8-1b. poly.bag in master carton
8-1b. vexar bag in master carton
Field box
4/5 bu. Bruce box-export
4/5 bu. Bruce box-flat
4/5 bu. fiberboard carton-export
8-1b. mesh bag in master carton
5-1b. mesh bag in master carton
Miscellaneous containers
Total backed oranges


Grapefruit:
4/5 bu. fiberboard carton
5-1b. poly.bag in master carton
5-1b. vexar bag in master carton
Bulk in truck
8-lb. poly.bag in master carton
8-1b.vexar bag in master carton
Field box
4/5 bu. Bruce box
4/5 bu.fiberboard carton-export
4/5 bu. Bruce box-export
8-1b.mesh bag in master carton
5-1b.mesh bag in master carton
Miscellaneous containers
Total packed erapefruit


Tangerines:
4/5 bu.Bruce box
4/5 bu. Bruce box-flat
4/5 bu. fiberboard carton
Bulk in truck
Field box
Miscellaneous containers
Total packed tangerines


Container


3,063,337
1,174,969
684,878
617,018
183,980
77,392
53,523
49,465
39,804
37,004
5,671
4,079
1,092
8,068


6.000.280


4,422,996
892,078
491,665
86,296
82,358
43.493
42,656
28,266
23,470
10,416
1,967
1,824
3.197


78,547
34,558
27,395
22,853
12,265
3,365
2,230
6,183
7,961
18,502
1,890
1,020
546
733


153.853


110,575
30,761
19,667
6,164
3,581
2,416
4,266
1,346
5,867
2,083
492
608
355


153.267


24,924
57,708
2,029
1,381
957
826
29,722


$1.6355
1.9395
2.2958
2.1350
.9290
2.1675
2.1621
.8889
1.7953
2.2406
1.5422
2.1482
2.6069
2.2599


$1.8116


$1.5689
1.9814
2.1777
.9466
1.9938
2.0420
.7211
1.8624
1.3550
1.6306
2.2127
2.4050
1.8864


$1.6734


$2.1364
2.3317
2.1023
1.1738
1.0068
2.5702
$2.1666


40


6.130.682


722,805
230,830
10,143
9,666
5,744
1,652
980,840


--o--- n--- -- o-r a- D--- 2 2 9


T ----- nce r----_ -g -e u ,4


--












Table 3. Continued: Number of Firms, Volume of Citrus Fruit Handled and Total
ing and Selling Cost, By Type of Container, 40 Packinghouses, Florida 1968-69


Container Number Volume Total
of Total Average ing &
Firms Per Firm Cost


Total packed fruit


1-3/5 bushel equivalent boxes
40 13,111,802 327,795


$


Per


1.,


Bulk Fruit through house to cannery:
Oranges 37 5,080,927 137,322
Grapefruit 38 4,156,393 109,379
Tangerines 31 521,435 16,820
Total Bulk through house 38 9,758,755 256,809
Direct, Grove to Cannery 32 16,125,677 503,928
Packed fruit purchased 3 20,237 6,746
Total volume all fruit 40 39,016,471 975,412












Table 4.--Weighted Average Costs of
1-3/5 Bushel Equivalent, By Type of


Packing and Selling Florida Citrus Fruits Per
Container, 40 Packinghouses, 1968-69,


ORANGES
5-1b.poly. 8-1b.poly. 5-1b.vexar


Type of container


bag in
master
carton


Number of packinghouses
Average volume packed
(1-3/5 bu.equivalent)


Materials:
Containers
Other materials
Total materials
Labor:
Receive,truck,dump
Cratemaking & labeling
Foremen, graders, others
Packing
Truck, check, load
Payroll taxes, comp. insurance
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-b
Other items /


22,853



$0.7581
.0189
$0.7770

$0.0580
.0777
.1690
.2047
.0965
.0692
$0.6751


$0.0286
.0868
.0373
$0.1527


$0.0140
.0164
.0842
.0222


bag in
master
carton


3,365


bag in
master
carton
25


27,395


8-1b.vexar
bag in
master
carton
24

2,230


Cost per 1-3/5 bushel


$0.7899
.0179
$0.8078


$0.0708
.0919
.1762
.1906
.1199
.0703.
$0.7197


$0.0307
.0883
.0356
$0.1546


$0.0179
.0176
.0619
.0101


$0.9395
.0153
$0.9548


$0.0571
.0777
.1691
.2060
.1052
.0679
$0.6830


$0.0277
.0859
.0348
$0.1484


$0.0140
.0178
.0868
.0072


$0.8789
.0123
$0.8912


$0.0522
.0754
.1499
.1905
.0973
.0631
$0.6284


$0.0283
.0768
.0346
$0.1397


$0.0147
.0181
.0778
.0097


$0.1368 $0.1075 $0.1258 $0.12(


$1.7416
.0670
.0788
.2476


$1.7896
.0685
.0732
.2362


$1.9120 $1.7796


.0613
.0794
.2430


.0672
.0802
.2351


Total Packing & Selling $2.1350 $2.1675 $2.2957 $2.1621
- Administrative expense includes management and office salaries, office expense,
auto and travel, interest paid, telephone and telegraph.
- Selling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges.
c/
Other items include Florida citrus advertising tax, Federal-State inspection,
various industry assessments, coloring and waxing, precooling. Citrus ---
tax of $0.05 per box on round oranges omitted.


J f I


)3











Table 4.--Weighted Average Costs of Packing and Selling Florida Citrus Fruits Per
1-3/5 Bushel Equivalent, By Type of Container, 40 Packinghouses, 1968-69. Contd.


Type of Container


ORANGES
4/5 bu.
East
Coast


Bruce Box
Interior All
Houses Houses


4/5
East
Coast


bu. Fiberboard
Interior All
Houses Houses


Number of Packinghouses 8 26 34 11 28
Average volume packed
(1-3/5 bu.equivalent) 15,776 40,337 34,558 40,843 93,360
Cost per 1-3/5 bushel


Materials:
Containers
Other materials
Total materials


$0.6770
.0365
$0.7135


$0.6400
.0272
$0.6672


$0.6439
.0283
$0.6722


$0.5000
.0203
$0.5203


39


$0.4383
.0157
$0.4540


Labor:
Receive, truck, dump
Cratemaking & labeling
Foremen, graders, others
Packing
Truck, check,load
Payroll taxes, comp.insurance
Total labor
Other direct operating:
Power, lights, water
Repairs & maintenance
Misc. supplies & expense
Total other direct
Indirect operating:
Insurance-fire & casualty
Taxes and licenses
Depreciation
Rent
Total Indirect operating
Total Packing Expense
a/
Administrative -
Selling /
Other items
Total Packing and Selling


$0.0561 $0.0504 $0.0510 $0.0437 $0.0487
.0813 .0872 .0866 .0666 .0756
.2345 .1392 .1494 .2018 .1310
.1524 .1279 .1306 .1480 .1248
.1169 .1014 .1031 .0989 .0943
.0645 .0584 .0590 .0577 .0541
$0.7057 $0.5645 $0.5797 $0.6167 $0.5285

$0.0257 $0.0209 #0.0214 $0.0249 $0.0212
.0564 .0726 .0709 .0719 .0754
.0369 .0354 .0356 .0349 .0300
$0.1190 $0.1289 $0.1279 $0.1317 $0.1266

$0.0244 $0.0128 $0.0140 $0.0305 $0.0116
.0273 .0174 .0184 .0292 .0131
.1164 .0996 .1014 .0951 .0644
.0047 .0016 .0020 .0041 .0070
$0.1728 $0.1314 $0.1358 $0.1589 $0.0961
$1.7110 $1.4920 $1.5156 $1.4276 $1.2052
.1346 .0788 .0847 .1201 .0660
.0817 .0825 .0824 .0765 .0745
.3024 .2513 .2568 .2771 .2441
$2.2297 $1.9046 $1.9395 $1.9013 $1.5898


a/ Administrative expense includes management and office salaries, office expense,
auto and travel, interest paid, telephone and telegraph.
/ Selling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges,
/ Other items include Florida citrus advertising tax, Federal-State inspection,
various industry assessments, coloring and waxing, precooling. Citrus stab
tax of $0.05 per box on round oranges omitted


I


I











Table 4.--Weighted Average Costs of Packing and Selling Florida Citrus Fruits Per
1-3/5 Bushel Equivalent, By Type of Container, 40 Packinghouses, 1968-69. Contd.

ORANGES
Bulk in Bulk through house to cann -
Type of Container truck East Interior All
Coast Houses Houses
Number of Packinghouses 15 11 26 37
Average volume packed
(1-3/5 bu.equivalent) 12,265 57,773 170,978 137,322
Cost per 1-3/5 bushel
Materials:
Containers --
Other materials $0.0047 -- -- --
Total materials $0.0047 -- -- --
Labor:
Receive, truck, dump $0.0390 $0.0346 $0.0254 $0.0266
Cratemaking & labeling .0178 -- --
Foremen, graders, others .1184 .0973 .0483 .0544
Packing .0849 -- -- --
Truck, check, load .0567 .0094 .0023 .0032
Payroll taxes, comp. insurance .0358 .0149 .0156 .0155
Total labor $0.3526 $0.1562 $0.0916 $0.0997
Other direct operating:
Power, lights, water $0.0128 $0.0058 $0.0060 $0.0060
Repairs & maintenance .0625 .0236 .0396 .0376
Misc. supplies & expense .0171 .0041 .0079 .0074
Total other direct $0.0924 $0.0335 $0.0535 $0.0510
Indirect operating:
Insurance-fire & casualty $0.0186 $0.0098 $0.0069 $0.0073
Taxes & licenses .0097 .0083 .0043 .0048
Depreciation .0414 ,0150 .0233 .0222
Rent .0056 .0008 .0028 .0025
Total indirect operating $0.0753 $0.0339 $0.0373 $0.0368
Total Packing Expense $0.5250 $0.2236 $0.1824 $0.1875
Administrative / .0774 .1139 .0555 .0629
Selling b/ .0655 -- .0018 .0016
Other items c/ .26&* .0076 .0152 .0142
Total Packing and Selling $0.9290 $0.3451 $0.2549 $0.2662
a/ Administrative expense includes management 4d office salaries, office expense,
auto and travel, interest paid, telephone and telegraph.
b/ Selling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges.
/ Other items include Florida citrus advertising tax, Federal-State inspection,
various industry.assessments, coloring and waxing, precooling. Citrus stabi:---
tax of $0.05 per box on round oranges omitted.












Table 4.--Weighted Average Costs of Packing and Selling Florida Citrus Fruits Per
1-3/5 Bushel Equivalent, By Type of Container, 40 Packinghouses, 1968-69, Contd.


Type of Container


GRAPEFRUIT
5-1b.poly.
bag in
masterctn;


8-1b.poly. 5-lb.vexar
bag in bag in
masterctn. masterete.


8-lb. vexar
bag in
master otn.


Number of Packinghouses 29 23 25 18
Average volume packed
(1-3/5 bu. equivalent), 30.761 3,581 19,667 2,416
Cost per 1-3/5 bushel


Materials:
Containers
Other materials
Total materials
Labor:
Receive, truck, dump
Cratemaking & labeling
Foremen, graders, other
Packing
Truck, check, load
Payroll taxes, comp. insurance
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 b/
c/
Other items
Total Packing and Selling


$0.7576
.0138
$0.7714


$0.0615
.0740
.1424
.1779
.0961
.0641
$0.6160


$0.7705
.0169
$0.7874

$0.0707
.0880
.1328
.1695
.1096
.0607
$0.6313


$0.9402
.0108
$0.9510

$0.0641
.0800
.1429
.1958
.1023
.0668
O0.6519


$0.8551
.0111
$0.8662


$0.0601
.0747
.1215
.1884
.1008
.0574
S0.6029


$0.0265 $0.0251 $0.0242 $0.0216
.0713 .0718 .0674 .0646
.0302 .0346 .0309 .0318
$0.1280 $0.1315 $0.1225 $0.1180

$0.0143 $0.0170 $0.0127 $0.0149
.0170 .0163 .0171 .0173
.0761 .0654 .0780 .0790
.0047 .0026 .0043 .0006
$0.1121 $0.1013 $0.1121 $0.1118
$1.6275 $1.6515 $1.8375 $1.6989
.0972 .0801 .0831 .0775
.0657 .0803 .0675 .0749
.1910 .1819 .1896 .1907
$1.9814 $1.9938 $2.1777 $2.0420


a/
SAdministrative expense includes management
auto and travel, interest paid, telephone and


and office
telegraph.


salaries, office expense,


- Selling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges.
/ Other items include Florida citrus advertising tax, Federal-State inspection,
various industry assessments, coloring and waxing, precooling. Citrus stabi
tax of $0.05 per box on round oranges omitted.












table 4.--Weighted Average Costs of
1-3/5 Bushel Equivalent, By Type of


Packing and Selling Florida Citrus Fruits Per
Container, 40 Packinghouses, 1968-69, Contd.


GRAPEFRUIT


Type of Container


Bulk in 4/5 bu.
truck Bruce
Box


4/5 Bushel Fiberboard Box
East Interior All
Coast Houses Houses


Number of Packinghouses 14 21 12 28
Average volume packed
(1-3/5 bu. equivalent) 6.164 1,346 175,494 82,753 1


Cost per 1-3/5 bushel


Materials:
Containers
Other materials
Total materials
Labor:
Receive, truck,dump
Cratemaking & labeling
Foremen, graders, others
Packing
Truck, check, load
Payroll taxes, comp. insurance
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 a
Selling b/
Other items c/
Total Packing and Sellina


$0 0002


$0.6641
.0273


$0.4938
.0156


$0.4341
.0101


$1


$0.0002 $0.6914 $0.5094 $0.4442

$0.0502 $0.0443 $0.0545 $0.0485 $
.0008 .0988 .0725 .0729
.1112 .1048 .1420 .0963
.0886 .1207 .1208 .0989
.0680 .1086 .1201 .0957
.0283 .0583 .0518 .0479
$0.3471 $0.5355 $0.5617 $0.4602 $

$0.0123 $0.0192 $0.0176 $0.0211
.0489 .0440 .0606 .0570
.0125 .0458 .0225 .0267
$0.0737 $0.1090 $0.1007 $0.1048 J

$0.0118 $00.101 $0.0252 $0.0088 (
.0107 .0150 .0185 .0118
.0325 .0844 .0623 .0563
-- .0037 .0103 .0032
$0.0550 $0.1132 $0.1163 $0.0801
$0.4760 $1.4491 $1.2881 $1.0893
.1223 .1252 .1127 .0881
.0533 .0934 .0764 .0669
.2950 .1947 .2386 .1911
$0.9466 $1.8624 $1.7158 $1.4354


40


0.4625
.0127




.0727


SAdministrative expense includes management and office salaries, office expense,
auto and travel, interest paid, telephone and telegraph.
/ Selling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges.
/ Other items include Florida citrus advertising tax, Federal-State inspection,
various industry assessments, coloring and waxing, precooling. Citrus stabi
tax of $0.05 per box on round oranges omitted.


--1













Table 4.--Weighted Average Costs of Packing and Selling Florida Citrus Fruits Per
1-3/5 Bushel Equivalent, ByType of Container, 40 Packinghouses, 1968-69, Contda


GRAPEFRUIT


Type of container


Bulk thru.house to cannery
East Interior All
Coast Houses Houses


TANGERINES


4/5 bu.
Bruce
Box


Bulk,
House
to
Cannery


Number of Packinghouses 12 26 38 29 31 32


Average volume
(1-3/5 bu.eauivalent)


110239 108982


109,379 24924 16821 503928


Cost per 1-3/5 bushel


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


-- -- $0.6322 --
-- .-- -- .0351 -- -
-- -- -- $0.6673 -- --


$0.0347

.0506


$0.0176

.0219


.0026 .0013
.0090 .0065
$0.0969 $0.0473


$0.0033
.0150
.0012


$0.0039
.0191
.0068


$0.0230

.0310

.0017
.0073


$0.0799 $0.0392
.0971 --
.2190 .0756
.1717 --
.1179 .0041
.0818 .0229


$0.0630 $0.7674 $0.1418


$0.0037
.0178
.0051


$0.0302
.1179
.0374


$0.0112
.0738
.0141


$0.0017

.0012


.0003
$0.0032


$0.0001
.0039
.0003


$0.0195 $0.0298 $0.0266 $0.1855 $0.0991 $0.1


$0.0052
.0043
.0078
.0015


$0.0023
.0027
.0129
.0009


$0.0188 $0.0188


$0.1352
.1040


$0.0959
.0672


.0007
.0080 .0073


$0.0032
.0032
.0113
.0011


$0.0193
.0229
.1100
.0032


$0.0093
.0088
.0643
.0015


$0.0188 $0.1554 $0.0839
$0.1084 $1.7756 $0.3248
.0789 .0628 .0569
.0005 .0785 --
.0075 .2195 .0073


$0.2472 $0.1711 $0.1953 $2.1364 $0.3890


0043


$0.0002
.0001
.0011

$0.0014


$0.0089
.0536


.0069


80.0694


a/ Administrative expense includes management and office
auto and travel, interest paid, telephone and telegraph.


salaries, office expense,


- Selling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges.
C/
/ Other items include Florida citrus advertising tax, Federal-State inspection,
various industry assessments, coloring and waxing, precooling. Citrus
tax of $0.05 per box on round oranges omitted.


ALL FRUIT
Direct,
Grove to
Cannery


_ _I


-


_













All of the 40 houses in the sample did not use every container listed in
Table 4. Thus, the costs shown for any container are averages of the group
of firms packing that container. Since this grouping of houses and the volume-
weights change with each container, some of the differences in costs between
various packs are due to these variations in the sample.

The average costs shown in each category are weighted averages of the
packinghouses included, i.e., the total money cost of each item for all
houses was divided by the total number of boxes packed. The use of weighted
averages in this summary tends to show the cost of packing and selling at
figures lower than the simple average. This is true because the larger houses,
which usually had somewhat lower costs, affect the average more than smaller
houses. For example, the weighted average cost of packing and selling oranges
in the 4/5 bushel Bruce box by 34 firms was $1.9395, or $0.0400 lower than the
simple average of $1.9795. Eighteen firms had total costs higher than the
weighted average and 16 had lower costs.

The cost of selling as shown in Table 4 includes only the expense of the
firm's own sales department or sales organization. Brokerage, commission and
auction charges are excluded insofar as possible because of the difficulty
of obtaining it consistently at all firms. For the few firms that had un-
determined brokerage included in a contract selling rate, brokerage was el-
iminated at the average proportion existing in available observations. For
four firms where it could be identified, brokerage averaged $0.0489 per box
for all boxes sold, ranging from $0.0372 to $0.0786 per box. This was 39 per-
cent of the total selling expense including brokerage.

In the detailed costs (Table 4) administrative and general costs are con-
densed into one item, and a group of expenses shown as "other items", is also
reduced to one line. A typical distribution of these groups is shown in Table
5. Some of the items such as degreening, color-add and waxing appear lower in
cost per box than the cost of the services, but not all fruit was so treated.
Total expenditure for any item or service was divided by the whole number of
boxes packed.

The Florida citrus advertising tax shown in Table 5 does not include the
special stabilization tax on round oranges beginning February 1, 1968 at $0.05
per box. This adds about $0.03 to $0.045 per box to the tax.












Table 5.--Typical Distribution of Administrative and General Expense and
Other Items, 40 Packinghouses, 1968-69

Oranges Grapefruit Tangerines
4/5 bu. 4/5 bu. 4/5 bu.
fiberboard fiberboard Bruce
box box box
Cost per 1-3/5 bushel
Administrative & General Expense:
Management and office salaries $0.0466 $0.0551 $0.0387
Office supplies and expense .0039 .0046 .0041
Auto & travel, entertainment .0028 .0053 .0023
Operating interest .0033 .0065 .0014
Telephone and telegraph .0031 .0055 .0031
Miscellaneous administrative .0142 .0228 .0132
Total administrative & general $0.0739 $0.0998 $0.0628
Other Items:
Degreening, color-add and wax $0.0569 $0.0352 $0.0455
Precooling .0100 .0192 .0134
Florida citrus advertising tax .1024 .0795 .0500
Federal-State inspection .0566 .0524 .0535
Florida Citrus Mutual .0073 .0074 .0074
Growers Administrative Committee .0058 .0062 .0057
Miscellaneous other .0100 .0138 .0440
Total other items $0.2490 $0.2137 $0.2195

Variations in Packing and Selling Cost Among Firms
There was a wide variation among firms in the cost of packing and selling
citrus in 1968-69. This occurs each season and is due to a variety of f
most of which cannot be identified from accounting summaries of operations.
Some of the variation may be due to the method of allocating aggregate costs
to each pack. An index is prepared annually to eliminate the effect of this
allocation on each firm's over-all costs.

The variation among firms in the total cost of packing and selling citrus
fruits per 1-3/5 bushel equivalent in the various containers is shown in
6 and 7. The costs are arrayed in 10 cent intervals for several types of con-
tainers for each kind of fruit. The number of firms at each cost level is
indicated.

The complete range in total packing and selling costs for the more im-
portant packs is given in Table 8. This tange is further narrowed by el-
iminating the upper and lower quartiles and showing the range for half the
firms in the center.









15


Table 6.--Variations in the Cost Per 1-3/5 Bushel Equivalent of Packing and
Selling Florida ORANGES and TANGERINES, By Type of Container, 40 Packing-
houses, 1968-69 Season

ORANGES TANGERINES
8-1b. 8-1b. 5-lb. 5-1b.
4/5 bu. Poly. Vexar Poly. Vexar
Cost per Carton 4/5 bu. bag in bag in bag in bag in 4/5 bu.
1-3/5 bu. East Inter- Bruce master master master master Bruce
Equivalent Coast ior box carton parton carton carton Box
Number of Packinghouses
Packing & Selling Cost


$1.30-$1.39 -
1.40- 1.49 -
1.50- 1.59 -
1.60- 1.69 2
1.70- 1.79 1
1.80- 1.89 1
1.90- 1.99 4
2.00- 2.09 2
2.10- 2.19 -
2.20- 2.29 -
2.30- 2.39 -
2.40- 2.49 -
2.50- 2.59 1
2.60- 2.69 -
2.70 & over -
Total number 11


I -

6 1 -
7 -
5 8 1 1 -
1 5 1 1
3 8 3 4 1 4
1 3 6 6 5 1 6
4 4 2 6 4 4
2 4 7 4 5 3
1 2 2 3 4 7
- 1 1 1
- 1 1 3 1
2 2
1 2 4 3 6 -


28 34


23 24


25 29


$0.90-$0.99
1.00- 1.09
1.10- 1.19
1.20- 1.29
1.30- 1.39
1.40- 1.49
1.50- 1.59
1.60- 1.69
1.70- 1.79
1.80- 1.89
1.90- 1.99
2.00- 2.09
2.10- 2.19
2.20- 2.29
2.30 & over


(Materials,
1


Packing Cost Only
Labor, Packinghouse Expense)
-


8 31A


vi


28 34 23 2


or 1- n1 v 11 25 2


25 zy


T t l mber 11














table 7.--Variations in the Cost Per 1-3/5 Bushel Equivalent of Packing and
Selling Florida GRAPEFRUIT, By Type of Container, 40 Packinghouses,
1968-69 Season


Cost Per
1-3/5 bushel
Equivalent


4/5 bu. Carton
East Interior
Coast


4/5 bu.
Bruce
Box


-1ib.
Poly.
bag in
master
carton


n 4* r ii if It


0-ID.
Vexar
bag in
master
carton


-J-4D.
yexir
bag in
master
carton


Poly.
bag in
master
carton


Number of Packinghouses
Packing and Selling Cost


$1.20-$1.29
1.30- 1.39
1.40- 1.49
1.50- 1.59
1.60- 1.69
1.70- 1.79
1.80- 1.89
1.90- 1.99
2.00- 2.09
2.10- 2.19
2.20- 2.29
2.30- 2.39
2.40- 2.49
2.50- 2.59
2.60 & over
Total number



$0.90-$0.99
1.00- 1.09
1.10- 1.19
1.20- 1.29
1.30- 1.39
1.40- 1.49
1.50- 1.59
1.60- 1.69
1.70- 1.79
1.80- 1.89
1.90- 1.99
2.00- 2.09
2.10- 2.19
2.20 & over
Total number


L.
19 28 21 23 18 25


Packing Cost Only
(Materials, Labor, Packinghouse Expense)


- -- 7 l 251
1 28 21 23 18 25


1
3
4
7
5
4
1



3
29


1
2
10
5
5
2
1


3
29


carton


_ ~vr23 18 25


t.












Table 8.--Range in Total Packing and Selling Costs for Selected Packs, 40
Citrus Packinghouses, 1968-69


Number
of
Firms


Weighted
Average
Cost Per
Box


Range in Total Cost Per Box


All Firms


Central Ouartiles/


$1.94
1.64

2.14


ORANGES:
4/5 bu. Bruce Box
4/5 bu. fiberboard
5-1b. poly. bag in
master carton
5-1b. vexar bag in
master carton
8-1b.poly. bag in
master carton
8-lb. vexar bag in
master carton

GRAPEFRUIT:
4/5 bu.Bruce Box
4/5 bu.fiberboard
5-1b.poly. bag in
master carton
5-1b.vexar bag in
master carton
8-1b.poly. bag in
master carton
8-1b. vexar bag in
master carton

TANGERINES:
4/5 bu. Bruce Box


2.30

2.17

2.16


1.86
1.57

1.98

2.18

1.99

2.04


2.14


$1.54 $2.73
1.33 2.50

1.72 3.53

1.98 3.18

1.74 2.96

1.87 3.02


1.48 2.07
1.23 2.12

1.67 3.07

1.91 3.00

1.65 2.63

1.79 2.83


1.88 2.69


$1.79 $2.12
1.59 1.90

2.05 2.31

2.23 2.52

2.02 2.27

2.07 2.36


1.54 1.80
1.40 1.64

1.88 2.11

2.01 2.32

1.79 2.10

1.89 2.12


2.03 2.34


Pack


1/
- Range in costs after eliminating 25 percent of the firms with the lowest
costs and 25 percent of the number with the highest costs.












Relationship of Seasonal Volume to Average
Cost of Packing and Selling

The data indicate some relationship between the seasonal volume of fruit
handled and the total packing and selling cost. Houses with the largest volumes
had the lowest unit costs. Proportionately more of the larger houses were in
the lower cost ranges. However,the dispersion about the average was wide for
several groups except the largest.

Packinghouses in the smallest volume group (under 400,000 boxes) had costs
for packing and selling oranges in 4/5 bushel fiberboard boxes of 6 cents more
than the average for all houses. The next larger group (400,000 to 599,999
boxes) had costs of 7 cents more than the average. Houses in the second largest
volume group (600,000 to 899,999 boxes) had costs 10 cents above the average of
all houses. Costs for the largest-volume houses were 16 cents lower than
average and 22 cents per box lower than the smallest volume group. (Table 9).

Table 9.--Variation in the Cost of Packing and Selling Florida ORANGES, in 4/5
Bushel Fiberboard Boxes, By Volume Groups, 28 Interior Packinghouses, 1968-69.

Cost Number of Boxes Through House (packed and bulked)
Per
-Per Under 400,000- 600,000- 900,000 All
1-3/5 Bu.
S400,000 599,999 899,999 and over Volumes
Number of Packinghouses

$1.30 $1.39 1 1
1.40 1.49 1 3 4
1.50 4.59 2 2 2 6
1.60 1.69 1 5 1 7
1.70 1.79 2 2 1 5
1.80 1.89 1 1
1.90 1.99 2 1 3
2.00 2.09 1 1
Total 7 9 6 6 28


Weighted
Average Cost


$1.65


$1.66


$1.69


$1.43 $1.59


For packing and selling grapefruit in 4/5 bushel fiberboard boxes, houses
in the smallest volume group had total costs of 13 cents above the average cost,
while those in the largest volume group had costs 16 cents per box below the
average (Table 10).












Table 10.--Variation in the Cost of Packing and Selling Florida GRAPEFRUIT in
4/5 Bushel Fiberboard Boxes By Volume Groups, 28 Interior Packinghouses,
1968-69

Cost Number of Boxes Through House ( packed and bulked )
Per Under 400,000 600,000 900,000 All
1-3/5 bu. 400,000 599,999 899,999 and Over Volumes
Number of Packinghouses

$1.20 $1.29 1 1 1 2 5
1.30 1.39 1 2 1 2 6
1.40 1.49 1 2 1 2 6
1.50 1.59 1 3 1 5
1.60 1.69 2 1 1 4
1.70 1.79 -
1.80 1.89 1 1 2
Total 7 9 6 6 28
Weighted
Avg. Cost $1.57 $1.47 $1.57 $1.37 $1.44

The relationship between total volume of fruit through the house and cost
per box is imperfect because important factors affecting costs may be unequally
distributed in the volume groups. Some of ;these are length of season or
number, of days operated, percent of house capacity used, investment in pack-
inghouse assets, and extent of mechanization which affects labor costs. The
number of different lots, frequency of change of lots, number of different
containers packed and percent packout probably affect costs also to some extent.
There was not sufficient information on all these factors to account for the
effect of each on costs.

Trends in Packing and Selling Cost

The trend in total cost of packing and selling Florida citrus fruits in
the most common containers during the past 14 seasons has been generally
upward (Table 11). The trend is uneven because of fluctuating total volume
packed each season, but cost components, especially labor and equipment costs,
have continued to rise. A counter trend of increasing efficiency and mechan-
ization has not been able to stem the increase in costs.











Table 11.--Average Total Cost Per 1-3/5 Bushel Equivalent for Packing and
Selling Florida Citrus Fruits for Fresh Consumption, By Type of Pack, 1955-56
Through 1968-69.

4/5 bu. 4/5 bu. 5-lb. poly. 8-lb. poly. 5-1b. vexar 8-1b.
Season Bruce fiberboard bag,master bag,master bag,master bag,
box box carton carton carton carton
ORANGES
1955-56 $1.32 $1.09
1956-57 1.35 1.16 -
1957-58 1.45 1.22 $1.68 -
1958-59 1.47 1.22 1.67 -
1959-60 1.42 1.26 1.66 -
1960-61 1.45 1.33 1.71 -
1961-62 1.43 1.32 1.69 -
1962-63 1.73 1.50 1.96 -
1963-64 1.64 1.42 1.88 -
1964-65 1.59 1.44 1.74 -
1965-66 1.64 1.49 1.88 -
1966-67 1.67 1.48 1.87 $1.99 $1.76
1967-68 1.83 1.57 2.02 2.27 2.12
1968-69 1.94 1.64 2.14 2.30 2.16

GRAPEFRUIT
1955-56 $1.20 $1.00 -
1956-57 1.18 1.05
1957-58 1.29 1.11 -
1958-59 1.29 1.13 $1.58 $1.46 -
1959-60 1.26 1.18 1.58 1.52
1960-61 1.33 1.20 1.63 1.50 -
1961-62 1.29 1.28 1.62 1.53 -
1962-63 1.48 1.29 1.77 1.69 -
1963-64 1.36 1.29 1.66 1.85 -
1964-65 1.35 1.37 1.56 1.46 -
1965-66 1.43 1.41 1.74 1.69 -
1966-67 1.46 1.41 1.76 1.72 $2.05 $1.79
1967-68 1.69 1.56 2.07 2.02 2.27 2.10
1968-69 1.86 1.57 1.98 1.99 2.18 2.04

TANGERINES
4/5 bu. Bruce Box 4/5 bu. Bruce Box-Flat
1955-56 $1.46 $1.47
1956-57 1.55 1.57
1957-58 1.57 1.63
1958-59 1.60 1.60
1959-60 1.55 1.70
1960-61 1.57 1.68
1961-62 1.53 1.65
1962-63 1.81 2.13
1963-64 1.78 1.74
1964-65 1.64 1.66
1965-66 1.72 1.84
1966-67 1.87 1.88




















OTHER MIMEOGRAPHED PUBLICATIONS AVAILABLE ON CITRUS COSTS
Department of Agricultural Economics
Florida Agricultural Experiment Stations
In titute of Food and Agricultural Sciences
Gainesville, Florida 32601



1. COSTS OF PROCESSING, WAREHOUSING AND SELLING FLORIDA CITRUS PRODUCTS,
1967-68 SEASON. Agricultural Economics Mimeo Report 69-7. Mar. 1969.

2. COSTS OF PICKING AND HAULING FLORIDA CITRUS FRUITS, 1968-69 SEASON.
Ag. Econ. Report 3. February 1970.

3. THIRTY-SEVEN YEARS OF CITRUS PRODUCTION COSTS AND RETURNS IN FLORIDA,
1931-1968. Agricultural Extension Service Economic Series 69-l.Sept.1969

4. THIRTY-FIVE YEARS OF ORANGE PRODUCTION COSTS AND RETURNS IN FLORIDA,
1931-1966. Agricultural Extension Service Economic Series 67-6.Nov.1967.

5. COST OF PLANTING AND DEVELOPING FLORIDA CITRUS GROVES THROUGH 10 YEARS
OF AGE. Agricultural Extension Service Economic Series 65-1. Feb.1965

6. SHOULD I BUY A CITRUS GROVE. Agr. Ext. Service. Circular 332. May 1969.












AHS/cl February 1970
Exp. Sta. Agr. Econ. 1000