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FLAG IFAS PALMM UF



Costs of packing and selling Florida fresh citrus fruits
ALL VOLUMES CITATION SEARCH THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00027603/00003
 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: 1970
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: UF00027603:00003
 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 i
    Introduction
        Page 1
        Page 2
    Costs of packing and selling, 1970-71
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
    Variations in packing and selling cost among firms
        Page 15
    Relationship of seasonal volume to average cost of packing and selling
        Page 15
        Page 16
    Trends in packing and selling cost
        Page 17
        Page 18
        Page 19
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




SMarch 1972



Costs


Ag. Econ. Report 34


Of Packing And Selling


Florida Fresh Citrus Fruits,


1970-71


Season


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


A. H. Spurlock


UME LIBRARY


MAY 09 1973


~lbl~4b~lllg~8slll~Ir~~ C- ---- -I










TABLE OF CONTENTS


INTRODUCTION ..... ................. ............................... 1

COSTS OF PACKING AND SELLING, 1970-71.............................. 3

VARIATIONS IN PACKING AND SELLING COST AMONG FIRMS..................15

RELATIONSHIP OF SEASONAL VOLUME TO AVERAGE COST OF PACKING
AND SELLING.....................................................15

TRENDS IN PACKING AND SELLING COST..................................17



LIST OF TABLES

TABLE

1 Distribution of citrus fruit handled by class of fruit,
38 packinghouses, 1970-71.................................. 2

2 Percent of total fruit received which was packed for
shipment, 36 packinghouses, 1970-71 season................. 3

3 Volume of citrus fruit handled and total packing and
selling cost by type of container, 38 packinghouses,
1970-71 season............................................. 4

4 Weighted average costs of packing and selling Florida
citrus fruits per 1 3/5 bushel equivalent, by type of
container, 38 packinghouses, 1970-71 season................. 7

5 Typical distribution of administrative and general ex-
pense and other items, 38 packinghouses, 1970-71 season.....14

6 Relation of total volume of fruit packed to season
average packing and selling cost per 1 3/5 bushel equi-
valents, 38 packinghouses, 1970-71'season...................16

7 Total cost per 1 3/5 bushel equivalent for packing and
selling Florida citrus fruits, by type of pack, 1960-61
through 1970-71 season.....................................18













COSTS OF PACKING AND SELLING FLORIDA
FRESH CITRUS .FRUI'S, 1970-71 SEASON



A. H. Spurlock




INTRODUCTION

This summary is based on the accounting records of 38 citrus
packinghouses for the citrus marketing season 1970-71. Twelve of
these houses were located in the Indian River section along the East
Coast and 26 were in the Interior section.
The volume of fruit packed by the 38 packinghouses in 1970-71
amounted to 14,991,369 equivalent boxes of 1 3/5 bushels, or approxi-
mately 51 percent of the certified fresh fruit shipments. The pack-
ed volume ranged from 18,000 to 1,509,000 boxes and averaged 394,510
boxes. Thus, the sample packinghouses were considerably larger than
the average of all citrus.packinghouses in the state. These latter
averaged only 194,546 boxes for licensed and regulated fresh fruit
2
shippers who handled fruit from 144 houses in 1970-71. Twenty-four
of these houses shipped fewer than 10,000 boxes each and 8 were under

1,000 boxes.
The distribution of fruit handled by class of fruit is shown in
Table 1. Data on direct grove-to-cannery fruit from 7 houses were


Calculated from data in 1970-71 Season Annual Report, Division
of Fruit and Vegetable Inspection, Florida Department of Agriculture.
2
2From data compiled by the Growers Administrative Committee from
the records of the Fruit and Vegetable Inspection Division, Florida
Department of Agriculture.


A. H. Spurlock is an economist in the Food and Resource
Economics Department.









Table .--Distribution of citrus fruit handled by class of fruit, 38
packinghouses, 1970-71 season
packinghouses, 1970-71 season


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


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


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


3,547,287 295,607 44.7
1,921,474 160,123 24.2
5,468,761 455,730 68.9
2,460,679 205,057 31.1
7,929.440 660,787 100.0


11,444,082
7,730,000
19,174,082
14,749,553
22,948
33,946,583


14,991,369
9,651,476
24,642,845
17,210,233
22,948
41,876,026


440,157
297,308
737,465
567,290
883
1,305,638


394,510
253,986
648,496
452,901
604
1,102,001


33.7
22.8
56.5
43.4
.1
100.0


35.8
23.0
58.8
41.1
.1
100.0


a
Grove-to-cannery fruit data not obtained


from seven houses.


not obtained.
Packed fruit represented only 36 percent of the total volume of
all houses, but was 45 percent of the East Coast houses and 34 percent
of the other houses. Fruit going direct from grove-to-cannery was 41
percent of the total of all houses, but only 31 percent of the East
Coast houses. The packed fruit of the East Coast houses consisted of
69 percent grapefruit, 56 percent oranges and 2 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. The packout for all


---


I I I








fruit averaged 60.8 percent through the house, with 64.9 percent for
the East Coast houses and 59.7 percent for Interior houses (Table 2).


Table 2.-Percent of total fruit received which was packed for
shipment, 38 packinghouses, 1970-71 season

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

Oranges 55.0 56.8 56.5
Grapefruit 69.7 64.3 66.3
Tangerines 76.7 62.6 -. 63.3
All fruit 64.9 59.7 60.8


COSTS OF PACKING AND SELLING, 1970-71

The cost data made available by the fresh fruit packinghouses
showed the itemized expenses of each for 1970-71 together with the
boxes of fruit handled by kind of fruit and type of container. Distri-
bution of the various items of cost to each kind of fruit and each con-
tainer was usually made by the firm's own accountants or by outside audi-
tors. For nine houses which. had only total costs by items of expense,
allocations were made to each pack using average ratios based on labor re-
quirements. Thus, there were several different methods of cost allocations
used in the original data from which the averages were derived. Methods
used for distributing materials costs and general and administrative and
selling expenses appeared to be similar, but labor and other direct oper-
ating costs were allocated by various methods. In some of the packing-
houses, a proportion of the labor for receiving and dumping and for gra-
ding 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 elimi-
nated fruit. Any other direct operating expenses allocated to the elimi-
nated 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 principally
with administrative expenses at the same rate as fruit going direct from
grove-to-cannery.









Table 3.-Volume of citrus fruit handled and total packing and sell-
ing cost by type of container, 38 packinghouses, 1970-71
season


Volume Total
Commodity and type of container Firms Total Average pack &
per firm sell per
box
h7/t ..*1 ^ /L h -lilgh l a fi ? Vra 1 j~- ---


Oranges
4/5 bu. fiberboard carton
5-1b. poly. bag in master carton
5-lb vexar bag in master carton
4/5 bu. Bruce box
4/5 bu. fiberboard carton-white
Bulk in truck
8-lb. poly bag in master carton
8-1b. vexar bag in master carton
4/5 bu. Bruce box-flat
Field box
4/5 bu. fiberboard carton-export
2/5 bu. fiberboard carton
4/5 bu. Bruce box-export
Miscellaneous containers
Total packed oranges
Grapefruit
4/5 bu. fiberboard carton
5-lb. poly bag in master carton
5-1b. vexar bag in master carton
Bulk in truck
8-1b. poly bag in master carton
Field box
8-1b. vexar bag in u-nster carton
4/5 bu. fiberboard canton-export
4/5 fiberboard carton-white
4/5 bu. Bruce box
4/5 bu. Bruce box-export
2/5 bu. fiberboard carton
Miscellaneous containers
Total packed grapefruit


3,862,145
1,131,827
867,982
771,529
286,323
173,858
125,332
95,940
67,810
50,966
17,378
4,050
2,688
6,775
7,464,603


37
27
24
15
20
9
19
4
4
10
3
5
23
37


4,486,087
997,661
462,811
190,353
67,352
54,546
34,542
19,062
9,717
3,877
2,247
.....1,000
S 5,279
6.334.534


Tangerines
4/5 bu. Bruce box
4/5 bu. Bruce box-flat
4/5 bu. fiberboard carton-white
4/5 bu. fiberboard carton
Bulk in truck
5-lb. poly bag in master carton


707,491
186,127
175,500
102,314
9,665
7,874


27,211
46,532
35,100
6,821
1,381
3,937


$2.4148
2.9387
1.9942
2.1354
1.4132
2.4201

Continued


107,282
43,532.
'36,166
27,555
47,720
12,418
5,449
4,171
67,810
5,663
4,344
810
1,344
3,388
207,350


121,246
36,950
19,284
12,690
3,368
6,061
1,818
4,766
2,429
388
749
200
2,640
171,204


$1.7770
2.2281
2.4178
2.1994
S1.7836
1.0990
2.4157
2.3273
2.1891
1.0275
1.6873
1.8143
1.8680
.9730
$1.9636


$1.7112
2.1350
2.3470
.9577
2.1929
.8625
2.2149
1.5076
1.5560
1.9515
1.7031
1.8193
.8666
$1.8010


- ~'--~ Yw~W ~UlrYI~-~LC


--


I


, , = a ,


LV









Table 3.--Volume of citrus fruit handled and total packing and sell-
ing cost by type of container, 38 packinghouses, 1970-71
season -- Continued


No. ----1 3/5 bushel equivalent----


Tangerines (continued)
Field box
4/5 bu. Bruce box-export
2/5 bu. fiberboard carton
8-1b. vexar bag in master carton
Miscellaneous containers
Total packed tangerines

Miscellaneous varieties
Miscellaneous containers
Total packed fruit

Bulk fruit through house to canne
Oranges
Grapefruit
Tangerines
Total bulk through house

Other
Direct, grove-to-cannery
Packed fruit purchased
Total all fruit


1,317
402
120
6
796
1.191.612


329
201
120
6
796
38.439


$1.1330
2.1861
2.4628
3.4663
3.0082
$2.4015


1 625 625 $5.2358
38 14.991,369 394.510 $1.9298


5,738,108
3,221,009
692,358
9,651,476


159,392
87,054
21,636
253,476


$0.2645
.2091
.4491
$0.2592


31 17,210,233 555,169 $0.0691
2 22,948 11,474 .1758
38 41,876,023 1,102,001 $0.7791


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 low volume by a.small number of houses are not considered represent-
ative as they may reflect unusual conditions and costs. Itemized costs
for the principal packs are treated in subsequent tables.
The 38 packinghouses prepared a total of 35 different packs of
fruit plus a mixed group of miscellaneous containers. However, some of
the packs differed slightly in container strength and weight or in
preparation for export. This is a wide reduction from the practice










prior to 1968-69 in the kinds of packages used. It follows an industry
decision to eliminate some package types. The 4/5 bushel fiberboard
box, in several variations, was the most important container-used for
oranges and grapefruit in 1970-71; it carried 56 percent of the oranges
and 71 percent of the grapefruit. Most of the remaining oranges and
grapefruit were packed in polyethylene or vexar bags placed in fiber-
board master containers. Seventy-five percent of the tangerines were
packed in two types of 4/5 bushel wire-bound boxes, with fiberboard
boxes being used for 23 percent.
Itemized costs of packing and selling oranges, grapefruit and
tangerines for the 1970-71 season are given in Table 4 for 38 pack-
inghouses. This table shows -the weighted average costs for the major
items of expense 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 93.4 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 about 5 cents more than the
one used by the Interior houses.
All of the 38 houses in the sample did not use every container
listed in Table 4. Thus, the costs shown for any container are aver-
ages 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 varia-
tions in the sample.
The average costs shown in each category are weighted averages
for the packinghouses included, i.e., the total money costs of each
item for all houses was divided by the total number of boxes packed.










Table 4,-Weighted average costs of packing and selling Florida
citrus fruits per 1 3/5 bushel equivalent,by type of con-
tainer, 38 packinghouses, 1970-71 season
Part A -- Oranges.

5-lb. poly 8-lb. poly 5-lb. vexar 8-b.vexar
Type of container bag in bag in bag in bag in
master master master master
carton carton carton carton
Number of packinghouses 26. 23 24 23
Average volume packed
(1 3/5 bushel equivalent) 43,532 5,449 36,166 4,171
Item of cost ----Cost per 1 3/5 bushel equivalent-------


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 & licenses
Depreciation
Rent
Total indirect operating
Total packing expense
Administrative
Selling
Other items


$0.8226
.0100
$0.8326


$0.8214
.0089
$0.8303


$0.9605
.0106
$0.9711


$0.9093
.0098
$0.9191


$0.0475 $0.0491 $0.0440 $0.0448
.0613 .0592 .0613 .0577
.1738 .1921 .1890 .1850
.2104 .1902 .2080 .2061
.0855 .1155 .0922 .0937
.0894 .1551 .0878 .0907
'$0.6679 $0.7612 $0.6823 $0.6780

$0.0277 $0.0643 $0.0331 $0.0347
.0957 .1723 .0948 .1038
.0323 .0328 .0346 .0303
$0.1557 $0.2694 $0.1625 $0.1688

$0.0126 $0.0305 $0.0154 $0.0181
.0150 .0114 .0180 .0135
.0890 .0824 .1137 .0806
.0097 .0078 .0078 .0059
$0.1263 $0.1321 $0.1549 $0.1181
$1.7825 $1.9930 7 $I9708 $1.8840
.0732 .0815 .0694 .0829
.1311 .1073 .1326 .1212
.2413 .2339 .2450 .2392


Total packing & selling $2.2281 $2.4157 $2.4178 $2.3273

Range in total costs(low) $1.8197 $1.7812 $1.9744- $1.9306
(high) 3.8435 3.6764 4.1976 3.8296
Standard deviationd .3003 .4060 .4426 .3536
See footnotes at end of table.










Table 4.--Weighted average costs of p..cking and selling Florida
citrus .fruits per 1 3/5 buslel equivalent, by type of-con-
tainer, 38 packinghouses, 1970-71 season -- Continued
Part A --Oiranges


Type of container


4/5 bi. Bruce box
East Interiorl' All
Coast houses houses


-4-


4/5
East
Coast


bu. fiberboard box
Interior All
Houses houses


Number of packinghouses
Average volume packed
(1 3/5 bushel equivalent)
Item of cost
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
Administrativea
Selling'
Other items


22 28


26 36


23,570 28,641 27,555 77,208 118,918
------Cost per 1 3/5 bushel equivalent-----


$0.7904
.0627
0n 85'31


$0.7410
.0241
$n 76is1


$0.7500
.0312
$0.7812


$0.4936
.0158
S0.5094


$0.4482
.0128
$0.4610


107,282



$0.4573
.0134
$0.4707


$0.0425 $0.0560 $0.0535 $0.0361 $0.0441 $0.0425
.0798 .0713 .0729 .0454 .0615 .0583
.1839 .1586 .1632 .1555 .1534 .1538
.1771 .1259 .1353 .1518 .1286 .1332
.1139 .1040 .1058 .1002 .0&95 .0917
.0692 .0586 .0606 .0697 .0646 .0656
$0.6664 $0.5744 $0.5913 $0.5587 $0.5417 $0.5451

$0.0161 $0.0258 $0.0240 $0.0274 $0.0257 $0.0261
.0404 .0755 .0691 .0729 .0728 .0728
.0315 .0388 .0375 .0408 .0337 .0351
$0.0880 $0.1401 $0.1306 $0.1411 $0.1322 $0.1340

$0.0152 $0.0164 $0.0162 $0.0168 $0.0139 $0.0145
.0167 .0212 .0204 .0231 .0171 .0182
.0532 .1391 .1233 .0776 .1054 .0999
.0003 .0023 .0019 ..0001 .0095 .0076
$0.0854 $0.1790 $0.1618 $0.1176 $0.1459 $0.1402
$1.6929 $1.6586 $1.6649 $i.32b6 1i.2808 $i.-9UU
.0945 .0834 .0855 .1062 .0740 .0804
.1608 .1653 .1644 .1571 .1419 .1450
.3444 .2712 .2846 .3016 .2517 .2616


Total packing & selling $2.2926 $2.1785 $2.1994 $1.8917 $1.7484 $1.7770

Range.in total costs (low) $2.3031 $2.1785 $2.1994 $1.6612 $1.4027 $1.4027
(high) 2.5838 2.8363 2.8363 2.2005 3.1349 3.1349
Standard deviationd .2573 .1804 .2017 .1773 .3339 .3143
See footnotes at end of table.
Continued


22 2










Table 4.-Weighted average costs of packing and selling Florida
citrus fruits per 1 3/5 bushel equivalent, by type of con-
tainer, 38 packinghouses, 1970-71 season-- Continued
Part A--Oranges


Number of packinghouses 14 10 26 36
Average volume packed
(1 3/5 bu. equivalent) 12.418 83.352 188,638 159,392
Item of cost ----Cost per 1 3/5 bushel equivalent---


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 & expenses
Total other direct
Indirect operating
Insurance-fire & casualty
Taxes & licenses
Depreciation
Rent
Total indirect operating
Total packing expense
Administrativea
SellingD
Other items


$0.0000
.0042
$0.0042


$0.0000
.0000
$0.0000


$0.0000
.0000
$0.0000


$0.0000
.0000
$0.0000


$0.0294 $0.0247 $0.0240 $0.0241
.0154 .0000 .0014 .0012
.1414 .0744 .0486 .0524
.0725 .0000 .0000 .0000
.0555 .0066 .0017 .0024
.0530 .0137 .0154 .0151
$0.3672 $0.1194. $0.0911 $0.0952

$0.0206 $0.0073 $0.0064 $0.0065
.0732 .0227 .0312 .0300
.0253 .0082 .0096 .0094
$0.1191 $0.0382 $0.0472 $0.0459

$0.0212 $0.0077 $0.0061 $0.0064
.0151 .0075 .0043 .0047
.0745 .0160 .0253 .0240
.0073 .0000 .0024 .0020
$0.1181 $0.0312 $0.0381 $0.0371
$U.bUnb -U. 865 --0.1/64 _--?.6/02
.0866 .1031 .0664 .0718
.1454 .0000 .0107 .0091
.2584 .0009 .0062 .0054


Total packing and selling $1.0990 $0.2928 $0.2597 $0.2645

Range in total costs (low) $0.8117 $0.1031 $0.0356 $0.0356
(high) 1.7198 .4243 .5897 .5897
Standard deviations .1363 .1078 .1546 .1492


Continued


J


See footnotes at end of table.









Table 4.-Weighted average costs of packing and selling Florida
citrus fruits per 1 3/5 bushel equivalent, by.type.of con-
tainer, 38 packinghouses, 1970-71 season-- Continued
Part B--Grapefruit


C5lbpoly 8-lb.poly 5-lb.vexar 8-lbvexar
Type of container bag in bag in bag in bag in
Type of container
master master master master
carton carton carton carton
Number of packinghouses 27 20 24 19
Average volume packed
(1 3/5 bushel equivalent) 36,950 3,368 19,248 1,818
Item of cost -------Cost per 1 3/5 bushel equivalent---
Materials
Containers $0.7901 $0.8523 $1.0001 $0.8932
Other materials .0140 .0094 .0102 .0095
Total materials $0.8041 $0.8617 $1.0103 $0.9027
Labor
Receive, truck, dump $0.0480 $0.0438 $0.0480 $0.0482
Cratemaking & labeling .0541 .0570 .0501 .0578
Foremen,graders,others .1722 .2185 .1639 .. .1630
Packing .1766 .1543 .1904 .1679
Truck,check,load .0862 .0887 .0916 .0891
Payroll taxes, comp. ins. .0760 .0700 .0871 .0679
Total labor $0.6131 $0.6323 $0.6311 $0.5939
Other direct operating
Power, lights, water $0.0298 $0.0278 $0.0316 $0.0285
Repairs & maintenance .0760 .0840 .0927 .0796
Misc. supplies & expenses .0330 .0384 .0327 .0363
Total other direct $0.1388 $0.1502 $0.1570 $0.1444
Indirect operating
Insurance-fire & casualty $0.0133 $0.0127 $0.0168 $0.0190
Taxes & licenses .0157 .0181 .0155 .0176
Depreciation .0920 .1032. .0957 .1069
Rent .0029 .0020 .0035 .0049
Total indirect operating $0.1239 $0.1360 $0.1315 $0.1484
Total packing expense .6799 $1.7802 $1.9299 $1.789
Administrative a .1095 .1156 .0874 .1032
Selling / .1366 .1033 .1295 .1293
Other items .2090 .1938 .2002 .1930

Total pack ng and selling $2.1350 $2.1929 $2.3470 $2.2149

Range in total costs (low) $1.7737 $1.6988 $1.9309 $1.8330
(high) 3.1151 2.9489 3.3532 3.0549
Standard deviationd .2509 .2624 .3582 .3087
See footnotes at end of table.. Continued
Continued









Table 4.-Weighted average costs of packing and selling Florida
citrus fruits per 1'3/5 bushel equivalent, by type of con-
tainer, 38 packinghouses, 1970-71 season-- Continued
Part B--Grapefruit


4/5 bushel fiberboard box
Type of container Bulk in FieldIn r
c bo East Interior All
truck box
Coast houses houses
Number of packinghouses 15 14 12 25 37
Average volume packed
(1 3/5 bushel equivalent) 12,690 1,744 175,532 95,188 121,246
Item of cost -----Cost per 1 3/5 bushel equivalent------


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
Tax s & licenses
Depreciation
Rerlt
'otal indirect
Totfl packing expense
Administrativea
Sellingb
Other items


$0.0000
.0006


$0.0000
.0000


$0.4842
.0378


$0.0006 $0.0000 $0.5220


$0.4443 $0.4631
.0105 .0233
$0.4548 $0.4864


$0.0374 $0.0458 $0.0434 $0.0434 $0.0434
.0072 .0000 .0455 .0564 .0513
.1064 .1022 .1691 .1142 .1400
.0609 .0290 .1157 .1071 .1111
.0398 .1318 .1042 .0849 .0939
.0379 .0532 .0717 .0605 .0658
$0.2896 $0.3620 $0.5496 $0.4665 $0.5055

$0.0183 $0.0151 $0.0188 $0.0275 $0.0234
.0503 .0506 .0625 .0720 .0675
.0239 .0401 .0253 .0317 .0287
$0.0925 $0.1058 $0.1066 $0.1312 $0.1196

$0.0080 $0.0041 $0.0150 $0.0139 $0.0144
.0087 .0052 .0147 .0148 .0147
.0408 .0535 .0653 .0857 .0762
.0006 .0113 .0028 .0033 .0030
$0.0581 $0.0741 $0.0978. $0.1177 $0.1083
$0.4408 $0.5419 $1.2/60 $1 .1702 $t.i219
.1222 .0887 .1250 .0999 .11.17
.1561 .0518 .1577 .1313 .1437
.2386 .1801 .2779 .1989 .2360


Total packing and selling $.09577 $0.8625 $1.8366 $1.6003 $1.7112

Range in total costs (low) $0.7157 $0.8625 $1.8366 $1.6003 $1.2857
(high) 1.5460 1.6928 1.9727 2.3860 2.3860
Standard deviations 1297 .0977 .1501 .2723 .2526
~ee roonotes t end o tabe Cotne


See footnotes at end of table.


Continued










Table 4.--Weighted average cost of packing and selling Florida
citrus fruits per 1 3/5 bushel equivalent, by type'of con-
tainer, 38 packinghouses, 1970-71 season-- Continued
Part C-Grapefruit, tangerines and all fruit direct to cannery


Grapefruit. Tangerines IAll fruit
ulk thru house-cannery 4/5 bu. Bulk, Direct,
Type of container h,
East Interior All Bruce house tc grove to
Coast houses houses box cannery cannery
Number of packinghouses 12 25 37 26 32 31
Average volume
S(1 3/5 bushel equivalent)88.959 86,140 87.054 27.211 21,636 55.169


Item of cost
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 & licenses
Depreciation
Rent
Total indirect
total packing expense
lAdministrativea
Selling
Other items

Total packing and selling
Range in total costs (low)
(high)
Standard deviationd


--------Cost per 1 3/5 bushel equivalent-------


$0.0000 $0.0000
.0000 .0000


$0.0000 $0.7393 $0.0000 $0.0000
.0000 .0334 .0005 .0000


$0.0000 $0.0000 $0.0000 $0.7727 $0.0005 $0.0000

$0.0134 $0.0194 $0.0174 $0.0696.$0.0359 $0.0000
.0000 .0000 .0000 .0741 .0000 .0000
.0328 .0231 .0264 .2428 ..0701 .0029
.0000 .0000 .0000 .1867 .0000 .0000
.0032 .0010 .0017 .1173 .0016 .0000
.0069 .0073 .0072 .0965 .0200 .0004
$0.0563.$0.0508 $0.0527 $0.7870 $0.1276 $0.0033

$0.0026 $0.0041 $0.0036 $0.0401 $0.0107 $0.0001
.0105 .0178 .0153 .1181 .0515 .0024
.0033 .0080 .0065 .0326 .0130 .0003
$0.0164 $0.0299 $0.0254 $0.1908 $0.0752 $0.0028

$0.0026 $0.0025 $0.0025 $0.0317 $0.0098 $0.0002
-.0031 .0024 .0026 .0208 .0081 .0002
.0066 .0142 .0117 .1500 .0591 .0012
.0000 .0008 .0005 .0033 .0012 -.0000
$0.0123 $0.0199 $0.0173 $0.2058 $0.0782 $0.0016
$0.0850 $0.1006 $0.0954 $1.9563 $0.2815 $0.0077
.1217 .0901 .1006 .0878 .0898 .0602
.0000 .0104 .0070 .1472 .0515 .0006
.0003 .0090- .0061 .2235 .0263 .0006


$0.2070
i U.10 jL"
.3447
.0994


$0.2101

.5987
.1186


$0.2091 $2.4148
'U.U-b'b Si.6441-
.5987 3.1004
.1126 .3328


$0.4491
U. U357
.7978
.2434


$0.0691
U.uzo2
.1561
.0381


See footnotes at end of table.


Concluded


-


r


--








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 ex-
ample, the weighted average costs of packing and selling oranges in
the 4/5 bushel fiberboard box by 38 firms was $1.7770, or $0.0984 low-
er than the simple average of $1.8754. Fifteen firms had total costs
lower than the weighted average and 21 had higher costs.
The cost of selling as shown in Table 4 includes brokerage.
Statements from a few large firms showed brokerage in addition to
their own sales department expense. Firms selling through a separate
sales organization incurred only one charge, which covered brokerage.
For a few other firms with no data on brokerage cost an estimated
amount was added in an attempt to make the selling cost more compar-
able among all. Brokerage cost averaged approximately 35 percent of
the total selling cost for those reporting this item, and was the
basis of estimating this cost for firms with no data. The actual
brokerage.cost to a firm, however, depends upon the extent that bro-
kers are used in the selling process.
In the detailed cost analysis in Table 4, administrative and
general costs were condensed into one item; a group of expenses shown
as "other items" was also reduced to one line. A typical distribution
of these groups of expenses is shown in Table 5. Some of the items




Administrative expense includes management and office salaries,
office expense, auto and travel, interest paid, telephone and tele-
graph.
Selling includes sales salaries, travel, telephone and tele-
graph and brokerage.
Other items include Florida citrus .advertising tax, various in-
dustry assessments, Federal-State inspection, coloring and waxing and
precooling. The stabilization tax of $0.05 per box of oranges ex-
pired in February 1971 and is not included.
A range of one standard deviation above and below the total
average packing and selling cost usually includes about two-thirds of
the observations. Ninety-five percent of the firms are within the
range of two standard deviations from the total cost.









such as waxing, degreening and color-add 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 excludes
the special school marketing or stabilization tax on round oranges
of $0.05 per box. This tax expired in February 1971 and would add
about 2 or 3 cents per box, depending on the proportion of oranges
packed by each firm in the tax period, to the advertising tax shown
in Table 5.








Table 5.-Typical distribution of administrative and general expense
and other items, 38 packinghouses, 1970-71 season


Expense items


Oranges
4/5 bu.
fiber-
board


Grapefruit Tanger-
4/5 bu. ines
fiber- 4/5 bu.
board Bruce


Administrative & general expense
Management & office supplies
Office supplies and expense
Auto & travel, entertainment
Operating interest
Telephone & telegraph
Misc. administrative
Total administrative & general
Other items
Degreening,color-add & wax
Precooling
Florida citrus advertising tax
Federal-State inspection
Florida Citrus Mutual
Growers Administrative Committee
Miscellaneous other
Total other items


Cost per 1 3/5 bushel equivalent

$0.0481 $0.0595 $0.0501
.0045 .0071 .0049
.0030 .0052 .0020
.0025 .0072 .0055
.0036 .0056 .0036
.0187 .0271 .0217
$0.0804 $0.1117 $0.0878


$0.0621 $0.0368 $0.0653
.0096 .0194 .0109
.0998 .0797 .0500
.0593 .0576 .0575
.0074 .0075 .0075
.0046 .0045 .0044
.0188 .0305 .0483
$0.2616 $0.2360 $0.2439


i L









VARIATIONS IN PACKING AND SELLING COST AMONG FIRMS


There was a wide variation among firms in the cost of packing
and selling citrus in 1970-71. This occurs each season and is due
to a variety of factors, 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 overall costs.
In Table 4, below the total cost of packing and'selling,is
given the extreme range in total costs among all the firms having
each pack. However, only a few firms are near either extreme; most
fall within a narrower range about the average cost. To delineate
this group the standard deviation has been given for each total cost.
The standard deviation added to and subtracted from the average total
cost should give a range within which the total average costs for
about two-thirds of the firms fall. Two times the standard deviation
added to and subtracted from the total cost indicates a range that
will include the costs for about 95 percent of the firms.


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.
Packinghouses in the smallest volume group (under 200,000 pack-
ed boxes) had costs for packing and selling oranges in 4/5 bushel
fiberboard boxes of 14.5 cents more than the average for all houses.
The next larger group (200,000 to 399,999 boxes) had costs of 3.5
cents more than the average. Houses in the largest group (600,000 &
over packed boxes) had costs 19 cents below the average of all houses.
Costs for the largest-volume houses were 33.7 cents lower than the









VARIATIONS IN PACKING AND SELLING COST AMONG FIRMS


There was a wide variation among firms in the cost of packing
and selling citrus in 1970-71. This occurs each season and is due
to a variety of factors, 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 overall costs.
In Table 4, below the total cost of packing and'selling,is
given the extreme range in total costs among all the firms having
each pack. However, only a few firms are near either extreme; most
fall within a narrower range about the average cost. To delineate
this group the standard deviation has been given for each total cost.
The standard deviation added to and subtracted from the average total
cost should give a range within which the total average costs for
about two-thirds of the firms fall. Two times the standard deviation
added to and subtracted from the total cost indicates a range that
will include the costs for about 95 percent of the firms.


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.
Packinghouses in the smallest volume group (under 200,000 pack-
ed boxes) had costs for packing and selling oranges in 4/5 bushel
fiberboard boxes of 14.5 cents more than the average for all houses.
The next larger group (200,000 to 399,999 boxes) had costs of 3.5
cents more than the average. Houses in the largest group (600,000 &
over packed boxes) had costs 19 cents below the average of all houses.
Costs for the largest-volume houses were 33.7 cents lower than the









smallest volume groups (Table 6).
For packing and selling grapefruit in 4/5 bushel fiberboard
boxes, houses in the smallest volume group had total costs of 5.5
cents above the average cost, while those.in the largest volume
group had cost 13,7 cents per box below the average. The largest
houses were 19 cents per box lower in cost than those in the smallest
group (Table 6).


Table 6.-Relation of total volume of fruit packed to season average
packing and selling cost per 1 3/5 bushel equivalents, 38
packinghouses, 1970-71 season


Part A-Oranges in 4/5 bushel fiberboard boxes


Volume group Average Total packing &
Volume group Firms
volume selling cost

1,000 boxes 1,000 boxes Number Dollars
Under 200 12.2 9 $2.0204
200 to 399 299 12 1.9101
400 to 599 479 8 .1.8283
600 & over 849 7 1.6833
All groups 402 36 $1.8754


Part B-Grapefruit in 4/5 bushel fiberboard boxes


Average Total packing &
Volume group Firms
volume selling cost

1,000 boxes 1,000 boxes Number Dollars
Under 200 135 8 $1.7502
200 to 399 299 14 1.7483
400 to 599 479 8 1.6637
600 & over 849 7 1.5573
All groups 405 37 $1.6943









The cost data in Table 6 are simple averages of the observa-
tions and are not weighted as are the costs in the detailed tables.
The relationship between total volume of fruit through the
house and cost per box is imperfect because important factors affect-
ing 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 packinghouse 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 11 seasons has
been generally upward (Table 7). 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 mechanization has not
been able to stem the increase in costs.
Since 1969-70 brokerage expense, which was omitted in prior
years, has been included in selling cost. The amount of brokerage
varies somewhat with pack but averaged $0.0455 per box for all
packed fruit in 1969-70 and $0.0476 in 1970-71.










Table 7.-Total cost per 1 3/5 bushel equivalent for packing and
selling Florida citrus fruits, by type of pack, 1960-61
through 1970-71 season

4/5 bu. 4/5 bu. 5-lb.poly 8-lb.poly 5-b.vexar 8-lb.vexar
Season Bruce fiberboard bag in bag in bag in bag in
box box master 'master master master
carton carton carton carton
----------------------Oranges---------------------------
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 I -
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
1969-70 2.08 1.76 2.25 $2.21 2.35 2.30
1970-71 2.20 1.78 2.23 2.42 2.42 2.33

---------------------Grapefruit------------------------
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
1969-70 1.87 1.66 2.12 2.13 2.29 2.16
1970-71 1.95 1.71 2.14 2.19 2.35 2.21


1960-61
1961-62
1962-63
1963-64
1964-65
1965-66
1966-67
1967-68
1968-69
1969-70
1970-71


----------------------Tangerines------------------------
4/5 bu. Bruce box 4/5 bu. Bruce box-flat
$1.57 $1.70
1.53 1.65
1.81 2.13
1.78 1.74
1.64 1.66
1.72 1.84
1.87 1.88
2.05 2.20
2.14 2.33
2.34 2.45
2.41 2.94


- ----

















OTHER MIMEOGRAPHED PUBLICATIONS-AVAILABLE ON CITRUS COSTS ;


FOOD AND RESOURCE. ECONOMICS DEPARTMENT ....
Institute of Food and Agricultural Sciences
University of Florida
Gainesville, Florida 32601


1. Costs of Picking and Hauling-Florida Citrus Fruits, 1970-71
Season. Ag. Econ. Report 32. February 1972.

2. Citrus Production Costs and Returns in Florida, Season 1969-70
with Comparisons. Ag. Econ. Report 29. September 1971.

3. Orange Produccion Costs and Returns in Florida, Season 1968-69
with Comparisons. Fla. Coop. Ext. Service Econ. Series 70-3.
October 1970.

4. Should I Buy a Citrus Grove? Fla. Agr.; Ext..Service Circular 332.
-May 1969.

5. Cost of Planting and Developing Citrus, Groves Through 10 Years of Age.
Fla. Agr. Ext. Service Econ. Series 65-1. .February 1965.

6. Cost of Planting and Developing Citrus-Groves in the Indian River
: Area of Florida Through Six Years of Age. Fla. Coop. Ext. Service
Econ. Series 70-1. July 1970.

7. Cost of Planting and Developing Citrus Groves in Southwest Florida
Through Seven Years of Age. Fla. Coop. Ext. Service Econ. Series
70-4. October 1970.