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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
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Permanent Link: http://ufdc.ufl.edu/UF00027603/00005
 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: 1972
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: UF00027603:00005
 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, 1972-73
        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
    Variations in packing and selling cost among firms
        Page 16
    Relationship of seasonal volume to average cost of packing and selling
        Page 16
        Page 17
    Trends in packing and selling cost
        Page 18
        Page 19
        Page 20
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





" ,April 1974



Costs


Economics Report 61



of Packing and Selling


Florida Fresh Citrus Fruits,


1972-73


Season


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


W. H. Sherrod, Jr.
A. Lewis Ward, Jr.
A. H. Spurlock


----- F ~L Ic ,_~C. L I
II Is I -r I II~ L












TABLE OF CONTENTS

Page


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

COSTS OF PACKING AND SELLING, 1972-73 SEASON . . . 3

VARIATIONS IN PACKING-AND SELLING COST AMONG FIRMS . ... 16

RELATIONSHIP OF SEASONAL VOLUME TO AVERAGE COST OF PACKING
AND SELLING . . . . . . 16

TRENDS IN PACKING AND SELLING COST .... ... . .. 18


LIST OF TABLES

Table

1 Distribution of citrus fruit handled by class of fruit,
35 packinghouses, 1972-73 season . . . 2

2 Percent of total fruit received which was packed for
shipment, 35 packinghouses, 1972-73 season . . 3

3 Volume of citrus fruit handled and total packing and
selling cost by type of container, 35 packinghouses,
1972-73 season . . . . ... . 4

4 Weighted average costs of packing and selling Florida
citrus fruits per 1 3/5-bushel equivalent, by type of
container, 35 packinghouses, 1972-73 season . . 8

5 Typical distribution of administrative and general ex-
pense and other items, 35 packinghouses, 1972-73 season . 15

6 Relation of total volume of fruit packed to season
average packing and selling cost per 1 3/5-bushel
equivalents, 35 packinghouses, 1972-73 season .... .. .17

7 Total cost per 1 3/5-bushel equivalent for packing'and
selling Florida citrus fruits, by type of pack,
1963-64 through 1972-73 seasons . . . ... .19












COSTS OF PACKING AND SELLING FLORIDA FRESH CITRUS FRUITS, 1972-73 SEASON


W.H. Sherrod, Jr., A. Lewis Ward, Jr. and A.H. Spurlock


INTRODUCTION


This summary is .based on the accounting records of 35 citrus pack-

inghouses for the citrus marketing season 1972-73. Ten of these houses

were located in the Indian River section along the East Coast and 25

were in the Interior section.

The volume of fruit packed by the 35 packinghouses in 1972-73

amounted to 15,308,045 equivalent boxes of 1 3/5 bushels, or approx-

imately 24 percent of the certified fresh fruit shipments.1 The packed

volume ranged from 23,000 to 1,187,000 boxes and averaged 437,373 boxes.

Thus, the sample packinghouses were considerably larger than the aver-

age of all 165 citrus packinghouses in the state. The average house in

Florida packed only 194,348 boxes for certified fresh shipment. Forty-

two of these houses shipped fewer than 10,000 boxes of 1 3/5-bushel

equivalent each and 14 were under 1,000 boxes. The average volume of

the 123 packers who shipped over 10,000 boxes each was 259,685 boxes.1



Calculated from data in 1972-73 Season Annual Report, Division of
Fruit and Vegetable Inspection, Florida Department of Agriculture.



W.H. SHERROD, JR., is assistant in food and resource economics. A.
LEWIS WARD, JR., was formerly assistant in food and resource economics.
A.H. SPURLOCK is visiting professor of food and resource economics.








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 not

obtained.

Packed fruit represented only 36 percent of the total volume of all

houses, but was 46 percent of the East Coast houses and 35 percent of

the other houses. Fruit going direct from grove-to-cannery was 36 per-

cent of the total of all houses, but only 26 percent of the East Coast

houses. The packed fruit of the East Coast houses consisted of 79 per-

cent grapefruit, 19 percent oranges and 2 percent tangerines. The inte-

rior houses packed 36 percent grapefruit, 54 percent oranges, 9 percent

tangerines and 1 percent miscellaneous varieties. The East Coast firms


Table 1.--Distribution of citrus fruit handled by class of fruit, 35
packinghouses, 1972-73 season


Class of fruit Total Average Proportion
volume volume per of total
house volume

1 3/5-bushel 1 3/5-bushel
Percent
equivalent equivalent
10 East Coast packinghouses
Packed fruit 2,914,733 291,473 46.5
Cannery fruit through house 1,733,936 173,394 27.7
Total through house 4,648,669 464,867 74.2
Direct, grove-to-cannery 1,617,359 161,736 25.8
Total 6,266,028 626,603 100.0
25 Interior packinghouses
Packed fruit 12,393,311 495,732 34.8
Cannery fruit through house 9,607,188 384,288 26.9
Total through house 22,000,499 880,020 61.7
Direct, grove-to-cannery 13,677,221 547,089 38.3
Total 35,677,720 427,109 100.0

35 packinghouses
Packed fruit 15,308,044 437,373 36.5
Cannery fruit through house 11,341,124 324,032 27.0
Total through house 26,649,168 761,405 63.5
Direct, grove-to-cannery 15,294,580 436,988 36.5
Total 41,943,748 1,198,393 100.0

a
Grove-to-cannery fruit data not obtained from seven houses; had these
been included, it would have increased the volume going direct to cannery.








ran a larger percentage of their total fruit through the house and, ex-

cept for oranges, got a higher percentage packout than the group of inte-

rior packinghouses. The packout for all fruit averaged 57.4 percent of

the total received by the house, with 62.7 percent for the East Coast

houses and 56.3 percent for Interior houses (Table 2).


Table 2.--Percent of total fruit received which was packed for shipment,
35 packinghouses, 1972-73 season


Kinds of fruit East Coast Interior All
houses houses houses

Percent Percent Percent
Oranges 54.1 54.4 54.4
Grapefruit 65.0 58.1 60.2
Tangerines 77.8 63.1 63.5
All fruit 62.7 56.3 57.4



COSTS OF PACKING AND SELLING, 1972-73 SEASON


The cost data made available by the fresh fruit packinghouses

showed the itemized expenses of each for 1972-73 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 firms' own accountants or by outside auditors.

A few packinghouses had incomplete distributions or only total costs by

items of expense; thus allocations using average ratios, were made to

each pack. Consequently, several different methods of cost allocation

were used in the original data from which the averages were derived.

Methods used for distributing materials costs, general and administrative

costs 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








grading was allocated to the fruit graded out for canneries (elimina-

tions). A few of the houses also charged a small amount of labor not

otherwise listed to eliminated fruit. Any other direct operating ex-

penses 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 elimi-

nated fruit was charged principally with administrative expenses at the

same rate as fruit going direct from grove-to-cannery. In a few houses

eliminated fruit bore no charges.


Table 3.--Volume of citrus fruit handled and total packing and selling
cost by type of container, 35 packinghouses, 1972-73 season


Volume Total
Sample pack and
Commodity and type of container f Taler pack and
firms Total Average sell per
per firm box

No. 1 3/5-bushel equivalent -
Oranges
4/5-bu. fiberboard carton 34 4,100,985 120,617 $1.8811
5-1b. vexar bag in master ctn. 22 1,100,686 50,031 2.5159
5-1b. poly. bag in master ctn. 24 808,704 33,696 2.3322
4/5-bu. Bruce 17 425,696 25,041 2.3067
Bulk 10 120,260 12,026 1.1908
4/5-bu. .Bruce flat box 3 81,852 27,284 2.4263
8-lb. poly. bag in master ctn. 22 56,287 2,559 2.2156
8-1b. vexar bag in master ctn. 22 53,863 2,448 2.3639
Field box 7 30,133 4,305 1.2960
2/5-bu. fiberboard carton 3 2,206 735 2.0666
Miscellaneous containers 7 407,951 58,279 1.8407
Total packed oranges 34 7,188,623 211,430 $2.0505

Grapefruit
4/5-bu. fiberboard carton 35 4,878,048 139,373 2.0057
5-lb. poly. bag in master ctn. 24 895,644 37,319 2.1595
5-lb. vexar bag in master ctn. 22 513,541 23,343 2.3736
Bulk 10 88,496 8,850 1.2392
Field box 6 70,828 11,805 1.0726
8-lb. poly. bag in master ctn. 16 20,548 1,284 2.0066
8-1b. vexar bag in master ctn. 16 8,308 519 2.1000
4/5-bu. Bruce box 4 3,526 822 2.3018
Miscellaneous containers 6 310,260 51,710 1.7898
Total packed grapefruit 35 6,789,199 193,977 2.0245


Continued









Table 3.--Volume of citrus fruit handled and total packing and selling
cost by type of container, 35 packinghouses, 1972-73 season--
Continued


No. 1 3/5-bushel equivalent --


Tangerines
4/5-bu. fiberboard carton
4/5-bu. Bruce box
4/5-bu. Bruce flat box
5-lb. poly. bag in master ctn.
Bulk
5-1b. vexar bag in master ctn.
Field box
Miscellaneous containers
Total packed tangerines
Miscellaneous varieties
Miscellaneous containers
Total packed fruit
Bulk fruit through house to cannery
Oranges
Grapefruit
Tangerines
Miscellaneous varieties
Total bulk through house
Other
Direct, grove-to-cannery
Total all fruit


392,757
302,169
164,173
5,746
4,784
1,913
927
295,495
1.167.964


17,853 2.2518
23,244 2.5828
54,724 2.8681
2,873 2.3514
1,196 1.7924
957 2.6027
464 .5417
49,249 2.0823
41.713 2.3790


3 162,258 54,086 2.1560
35 15,308,044 437,373 2.0651


34 6,032,790 117,435 .2618
35 4,480,115 128,003 .1665
28 669,931 23,926 .3307
2 158,288 52,763 .0897
35 11,341,124 324,032 .0897

28 15,294,580 546,235 .0759
35 41,943,748 1,198,393 .8424


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 representative as they may

reflect unusual conditions and costs. Itemized costs for the principal

packs are treated in subsequent tables.

The 35 packinghouses prepared a total of 25 different packs of fruit


II


-^---









plus a mixed group of about 16 miscellaneous packs for the several kinds

of fruit. The 4/5-bushel fiberboard box, in several variations, was the

most important container used for oranges and grapefruit in 1972-73; it

carried 63 percent of the oranges and 76 percent of the grapefruit.

Most of the remaining oranges and grapefruit were packed polyethylene or

vexar bags and placed in fiberboard master containers. Forty percent of

the tangerines were packed in two types of 4/5-bushel, wire-bound boxes,

with fiberboard boxes being used for 59 percent.

Itemized costs of packing and selling oranges, grapefruit and tan-

gerines for the 1972-73 season are given in Table 4 for 35 packinghouses.

This table shows the weighted average costs for the major items of ex-

pense 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

90 percent of the total sample of 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 rep-

resents a mixture of all kinds.

Costs of the 4/5-bushel fiberboard box, the principal pack used by

the East Coast houses, are shown separately from the other houses. The

East Coast houses generally used a heavier fiberboard box which cost

about 7 cents more than the one used by the Interior houses.

All of the 35 packinghouses in the sample did not use every con-

tainer 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 for

the packinghouses included; i.e., the total money costs of each item

for all houses were divided by the total number of boxes packed. The

use of weighted averages in this summary usually 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 costs of packing and selling oranges in the 4/5-bushel

fiberboard box by 34 firms was $1.8811, or $0.1312 lower than the simple

average of $2.0123. Seventeen firms had total costs lower than the

weighted average and 17 had higher costs.

The cost of selling as shown in Table 4 includes brokerage. State-

ments from a few large firms showed brokerage in addition to their own

sales department expense. Firms selling through a separate sales organ-

ization 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 comparable 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, how-

ever, depends upon the extent that brokers are used in the selling

process.








Table 4.--Weighted average costs of packing and selling Florida citrus
fruits per 1 3/5-bushel equivalent, by type of container, 35
packinghouses, 1972-73 season

Part A--Oranges

5-lb.poly 8-1b.poly 5-lb.vexar 8-lb.vexar
of container bag in bag in bag in bag in
master master master master
carton carton carton carton

Number of packinghouses 24 22 22 22

Average volume packed
(1 3/5-bushel equivalent) 33,696 2,558 50,031 2,448


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 operating
Total packing expense
Administrative
Selling
Other items


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


$0.8207 $0.8477 $1.0084 $0.9242
.0272 .0383 .0359 .0409
$0.8479 $0.8860 $1.0443 $0.9651


$0.0445 $0.0387 $0.0449 $0.0411
.0705 .0680 .0688 .0693
.2072 .1966 .2047 .2001
.2330 .1958 .2278 .2115
.0882 .0870 .0896 .0832
.0848 .0772 .0845 .0786
$0.7282 $0.6633 $0.7203 $0.6838

$0.0223 $0.0232 $0.0236 $0.0240
.0870 .0730 .0871 .0790
.0364 .0302 .0379 .0333
$0.1457 $0.1264 $0.1486 $0.1363

$0.0136 $0.0112 $0.0125 $0.0128
.0168 .0158 .0185 .0178
.0870 .0757 .1000 .0922
.0112 .0066 .0047 .0036
$0.1286 $0.1093 $0.1357 $0.1264
$1.8504 $1.7850 $2.0489 $1.9116
.1034 .0870 .1004 .1013
.1356 .1147 .1270 .1235
.2428 .2289 .2396 .2274


Total packing and selling $2.3322 $2.2156 $2.5159 $2.3638

Range in total costs--low $1.8920 $1.9080 $2.1080 $1.9732
--High 3.6022 3.4314 3.9749 3.6691
Standard deviationd .3378 .3146 .4059 .3830


See footnotes at end of table.


Continued








Table 4.--Weighted average costs of packing and selling Florida citrus
fruits per 1 3/5-bushel equivalent, by type of container, 38
packinghouses, 1972-73 season--Continued
Part A--Oranges


4/5-bu. 4/5-bu. fiberboard box
Type of container Bruce Interior
box East Coast houses All houses

Number of packinghouses 17 9 25 34

Average volume packed
(1 3/5-bu. equivalent) 25,041 51,867 145,376 120,617


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
Administrative-
Sellingb
Other items


- Cost per 1 3/5-bushel equivalent -

$0.8500 $0.5422 $0.4737 $0,4815
.0305 .0267 .0170 .0181
$0.8805 $0.5689 $0.4907 $0.4996

$0.0439 $0.0436 $0.0450 $0.0448
.0883 .0561 .0722 .0704
.1672 .2348 .1594 .1680
.1658 .1538 .1420 .1433
.1128 .1184 .1004 .1025
.0736 .1037 .0736 .0770
$0.6516 $0.7104 $0.5926 $0.6060

$0.0234 $0.0513 $0.0208 $0.0242
.0787 .1375 .0811 .0876
.0418 .0658 .0367 .0400
$0.1439 $0.2546 $0.1386 $0.1518

$0.0093 $0.0397 $0.0122 $0.0154
.0195 .0282 .0178 .0189
.0757 .1060 .0813 .0841
.0063 .0000 .0081 .0072
$0.1108 $0.1739 $0.1194 $0.1256
$1.7868 $1.7078 $1.3413 $1.3830
.0996 .1078 .0922 .0940
.1377 .1667 .1469 .1491
.2826 .2779 .2520 .2550


Total packing and selling $2.3067 $2.2602 $1.8324 $1.8811
Range in total costs--low $1.9000 $1.7870 $1.4360 $1.4360
--high 2.8962 3.8442 2.9232 3.8442
Standard deviationd .2599 .5296 .3134 .3707


See footnotes at end of table.


Continued








Table 4.--Weighted average costs of packing and selling Florida citrus
fruits per 1 3/5-bushel equivalent, by type of container, 35
packinghouses, 1972-73 season--Continued
gart A--Oranges


Bulk Bulk through house to cannery
Type of container in. Interior
truck East Coast houses All houses


Number of packinghouses 10 9 25 34

Average volume packed
(1 3/5-bushel equivalent) 12,026 52,577 222,384 177,435


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 & license
Depreciation
Rent
Total indirect operating
Total packing expense
Administrative
.Sellingb
Other items


- Cost per 1 3/5-bushel equivalent -


$0.0000
.0035


$0.0000
.0000


$0.0000 $0.0000
.0000 .0000


$0.0035 $0.0000 $0.0000 $0.0000

$0.0227 $0.0166 $0.0234 $0.0229
.0194 ,0000 .0000 .0000
.1641 .0547 .0511 .0514
.0771 .0000 .0000 .0000
.0580 .0000 .0029 .0027
.0617 .0101 .0202 .0194
$0.4030 $0.0814 $0.0976 $0.0964

$0.0129 $0.0078 $0.0060 $0.0061
.0923 .0249 .0449 .0434
.0183 .0042 .0081 .0078
$0.1235 $0.0369 $0.0590 $0.0573

$0.0214 $0.0116 $0.0081 $0.0083
.0115 .0081 .0047 .0050
.0655 .0208 .0284 .0277
.0022 .0000 .0010 .0010
$0.1006 $0.0405 $0.0422 $0.0420
$0.6306 $0.1588 $0.1988 $0.1957
.0967 .1237 .0581 .0633
.1610 .0000 .0000 .0000
.3025 .0075 .0025 .0028


Total packing and selling $1.1908 $0.2900 $0.2594 $0.2618

Range in total costs--low $0.9160 $0.0000 $0.0560 $0.0000
--high 1.8737 .5903 .4986 .5903
Standard deviationd .2370 .1636 .1705 .1702


See footnotes at end of table.


Continued








Table 4.--Weighted average costs of packing and selling Florida citrus
fruits per 1 3/5-bushel equivalent, by type of container, 35
packinghouses, 1972-73 season--Continued
Part B--Grapefruit


5-lb.poly 8-1b.poly 5-lb.vexar 8-1b.vexar
bag in bag in bag in bag in
Type of container master master master master
carton carton carton carton

Number of packinghouses 24 16 -22 16

Average volume packed
(1 3/5-bushel equivalent) 37,318 1,284 23,343 519


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
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


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


$0.8033
.0183


$0.8729
.0124


$1.0550
.0176


$0.9147
.0171


$0.8216 $0.8853 $1.0726 $0.9318

$0.0375 $0.0199 $0.0370 $0.0296
.0621 .0376 .0591 .0468
.1537 .0950 .1447 .1215
.2040 .1702 .2102 .1882
.0771 .0486 .0736 .0666
.0738 .0483 .0720 .0527
$0.6082 $0.4196 $0.5966 $0.5054

$0.0233 $0.0273 $0.0247 $0.0281
.0674 .0603 .0717 .0585
.0463 .0334 .0468 .0357
$0.1370 $0.1210 $0.1432 $0.1223


$0.0099 $0.0058 $0.0082 $0.0089
.0159 .0096 .0149 .0130
.0831 .1889 .0803 .0737
.0037 .0003 .0028 .0001
$0.1126 $0.2046 $0.1062 $0.0957
$1.6794 $1.6305 $1.9186 $1.6552
.1470 .1016 .1368 .1521
.1322 .0835 .1166 .0962
.2008 .1910 .2016 .1965


Total packing and selling $2.1594 $2.0066 $2.3736 $2.1000

Range in total costs--low $1.7573 $1.7391 .$1.9989 $1.8105
--high 2.9165 3.0116 3.2787 3.0149
Standard deviations .3318 .1186 .3456 .3023


See footnotes at end of table.


'Continued







Table 4.--Weighted average costs of packing and selling Florida citrus
fruits per 1 3/5-bushel equivalent, by type of container, 35
packinghouses, 1972-73 season--Continued
Part B--Grapefruit


4/5-bushel fiberboard box
Field
Type of container East Interior All box
Coast houses houses

Number of packinghouses 10 25 35 6

Average volume packed
(1 3/5-bushel equivalent) 210,854 110,780 139,373 11,805


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 operating
Total packing expense
Administrativea
Selling
Other items


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


$0.5470 $0.4824
.0285 .0128


$0.5103 $0.0000
.0196 .0000


$0.5755 $0.4952 $0.5299 $0.0000

$0.0460 $0.0360 $0.0403 $0.0453
.0560 .0671 .0624 .0000
.2207 .1127 .1594 .1757
.1281 .1160 .1212 .0173
.1234 .0870 .1027 .1494
.1018 .0576 .0767 .0625
$0.6760 $0.4764 $0.5627 $0.4502

$0.0902 $0.0184 $0.0494 $0.0179
.2714 .0565 .1494 .1016
.1373 .0432 .0839 .0467
$0.4989 $0.1181 $0.2827 $0.1662

$0.0637 $0.0071 $0.0316 $0.0093
.0182 .0141 .0159 .0083
.0803 .0704 .0746 .0884
.0000 .0021 .0012 .0052
$0.1622 $0.0937 $0.1233 $0.1112
$1.9126 $1.1834 $1.4986 $0.7276
.1231 .1329 .1286 .1069
.1646 .1480 .1552 .0350
.2508 .2023 .2233 .2031


Total packing and selling $2.4511 $1.6666 $2.0057 $1.0726

Range in total costs--low $1.6348 $1.3610 $1.3610 $0.7551
--high 4.1709 2.2918 4.1709 1.4353
Standard deviationd .8923 .2603 .7305- .2927


See footnotes at end of table.


Continued








Table 4.--Weighted average costs of packing and selling Florida citrus
fruits per 1 3/5-bushel equivalent, by type of container, 38
packinghouses, 1972-73 season--Continued
Part B--Grapefruit


Bulk Bulk through house to cannery
Type of container in East Interior All
truck Coast houses houses

Number of packinghouses 10 10 25 35

Average volume packed
(1 3/5-bushel equivalent) 8,850 124,836 129,270 128,003


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 operating
Total packing expense
Administrativea
Selling
Other items


- Cost per 1 3/5-bushel equivalent -

$0.0000 $0.0000 $0.0000 $0.0000
.0001 .0000 .0000 .0000
$0.0001 $0.0000 $0.0000 $0.0000

$0.0287 $0.0074 $0.0136 $0.0119
.0003 .0000 .0000 .0000
.1449 .0172 .0211 .0200
.0962 .0000 .0000 .0000
.0766 .0000 .0035 .0025
.0440 .0035 .0074 .0063
$0.3907 $0.0281 $0.0456 $0.0407

$0.0129 $0.0025 $0.0028 $0.0027
.0536 .0075 .0187 .0156
.0138 .0013 .0063 .0049
$0.0803 $0.0113 $0.0278 $0.0232

$0.0134 $0.0025 $0.0025 $0.0025
.0119 .0026 .0027 .0027
.0434 .0056 .0130 .0109
.0000 .0000 .0003 .0002
$0.0687 $0.0107 $0.0185 $0.0163
$0.5398 $0.0501 $0.0919 $0.0802
.1476 .1179 .0696 .0831
.1692 .0000 .0000 .0000
.3826 .0089 .0010 .0032


See footnotes at end of table.


Total packing and selling $1.2392 $0.1769 $0.1625 $0.1665
Range in total costs--low $0.7894 $0.0560 $0.0000 $0.0000
--high 1.3685 .4008 .4423 .4423
Standard deviationd .1878 .1257 .0880 .1002


Continued







Table 4.--Weighted average costs of packing and selling Florida citrus
fruits per 1 3/5-bushel equivalent, by type of container, 38
packinghouses, 1972-73 season--Continued
Part C--Tangerines and all fruit direct to cannery

Tangerines All fruit

Bulk Direct
Type of container 4/5-bu. house gre
Bruce 4/5-bu. house grove
box carton. to to
cannery cannery

Number of packinghouses 13 22 28 28

Average volume packed
(1 3/5-bushel equivalent) 23,244 17,853 23,926 546,235


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 operating
Total packing expense
Administrative
Selling
Other items
Total packing and selling


- Cost per 1 3/5-bushel equivalent -

$0.8607 $0.5037 $0.0000 $0.0000
.0269 .0177 .0000 .0000
$0.8876 $0.5214 $0.0000 $0.0000

$0.0659 $0.0652 $0.0277 $0.0000
.0579 .0700 .0000 .0000
.1996 .2644 .0694 .0038
.1916 .2013 .0000 .0000
.1130 .1224 .0045 .0000
.0835 .1013 .0226 .0006
$0.7115 $0.8246 $0.1242 $0.0044


.$0.0284 $0.0351 $0.0091 $0.0002
.1447 .1256 .0602 .0020
.0390 .0507 .0094 .0007
$0.2121 $0.2114 $0.0787 $0.0029

$0.0354 $0.0192 $0.0119 $0.0002
.0226 .0332 .0078 .0003
.2078 .1353 .0370 .0011
.0001 .0008 .0003 : .0000
$0.2659 $0.1885 $0.0570 $0.0016
$2.0771 $1.7459 $0.2599 $0.0089
.1030 .1177 .0691 .0644
.1333 .1582 .0000 .0000
.2694 .2300 .0017 .0025
$2.5828 $2.2518 $0.3307 S0.0758


Range in total cost--low $2.0067 $1.7259 $0.0000 $0.0175
--high 3.5218 3.2503 .8097 .2732
Standard deviationd .4369 .3659 .2628 .0448

aAdministrative expense includes management and office salaries,








In the detailed cost analyses 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 this

group of expenses is shown in Table 5. Some of the items 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 of service was divided by the whole number of boxes packed.


Table 5.--Typical distribution of administrative and general expenses and
other items, 35 packinghouses, 1972-73 season


Oranges Grapefruit Tangerines
Expense items 4/5-bu. 4/5-bu. 4/5-bu.
fiberboard fiberboard Bruce

Cost per 1 3/5-bushel equivalent --
Administrative & general expense
Management & office supplies $0.0532 $0.0706 $0.0475
Office supplies and expense .0048 .0061 .0056
Auto & travel, entertainment .0037 .0053 .0032
Operating interest .0101 .0125 .0088
Telephone & telegraph .0040 .0057 .0046
Miscellaneous .0182 .0284 .0333
Total administrative & general $0.0940 $0.1286 $0.1030
Other items
Degreening, color-add & wax $0.0633 $0.0348 $0.0587
Precooling .0119 .0196 .0315
Florida citrus advertising tax .0999 .0800 .0699
Federal-State inspection .0595 .0603 .0588
Florida Citrus Mutual .0073 .00- .0075
Growers Administrative Committee .0038 .0C .0038
Miscellaneous other .0092 .01, .0392
Total other items $0.2549 $0.2233 $0.2694

office expense, auto and travel, interest paid, telephone and telegraph.
bSelling includes sales salaries, travel, telephone and telegraph
and brokerage.

other items include Florida citrus advertising tax, federal-state
inspection, precooling, coloring and waxing and various industry assess-
ments.
A range of one standard deviation above and below the total average
packing and selling cost usually includes about two-thirds of the obser-
vations. Ninety-five percent of the firms are within the range of two
standard deviations from the average total cost.







VARIATION IN PACKING AND SELLING COST AMONG FIRMS


There was a wide variation among firms in the cost of packing and

selling citrus in 1972-73. 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 (previously.presented) the extreme range in total costs

among all the firms having each pack is shown below the total cost of

packing and selling. However, only a few firms are near either ex-

treme; 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 do not indicate a close 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. However, the middle

range of packinghouses in terms of packed volume had the highest costs.

The smallest volume group for both oranges and grapefruits packing had

costs lower than the average of all groups. Houses in the largest volume

group (600,000 and over packed boxes) had costs about $0.26 per box below

the average of all houses for both oranges and grapefruit (Table 6).







VARIATION IN PACKING AND SELLING COST AMONG FIRMS


There was a wide variation among firms in the cost of packing and

selling citrus in 1972-73. 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 (previously.presented) the extreme range in total costs

among all the firms having each pack is shown below the total cost of

packing and selling. However, only a few firms are near either ex-

treme; 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 do not indicate a close 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. However, the middle

range of packinghouses in terms of packed volume had the highest costs.

The smallest volume group for both oranges and grapefruits packing had

costs lower than the average of all groups. Houses in the largest volume

group (600,000 and over packed boxes) had costs about $0.26 per box below

the average of all houses for both oranges and grapefruit (Table 6).








Table 6.--Relation of total volume of fruit packed to season average
packing and selling cost per 1 3/5-bushel equivalents, 35
packinghouses, 1972-73 season

Part A--Oranges in 4/5-bushel fiberboard boxes


Volume group Average volume Firms Average packing
& selling cost

1,000 boxes 1,000 boxes Number Dollars
Under 200 117 6 $1.8978

200 to 399 311 14 2.2466

400 to 599 496 7 1.9671

600 & over 925 7 1.7709
All groups 437 34 $2.0295


Part B--Grapefruit in 4/5-bushel fiberboard boxes


Total packing
Volume group Average volume Firms & selling cost

1,000 boxes 1,000 boxes Number Dollars
Under 200 117 6 $1.6970

200 to 399 311 15 2.1372

400 to 599 496 7 1.7547

600 & over 925 7 1.6272
All groups 437 35 $1.8833


The cost data in Table 6 are simple averages of the observations.

Some of the cost differences among size groups are due to unavoidable

sample changes this year. However, diverse changes in composition and

volume of output occur each year with a constant sample.

The relationship between total volume of fruit through the house

and the 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 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 pack-

out probably affect costs also to some extent. There was not sufficient

information on all these factors to analyze 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 10 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. In 1972-73 comparatively modest cost

increases occurred in the principal containers while several packs showed

small decreases.

Since 1969-70 brokerage expense, which was omitted in prior years,

has been included in selling cost. The amount of brokerage varies some-

what with pack but averaged $0.0455 per box for all packed fruit in

1969-70, $0.0476 in 1970-71, $0.0541 in 1971-72 and $0.0495 in 1972-73.







Table 7.--Total cost per 1 3/5-bushel equivalent for packing and selling
Florida citrus fruits, by type of pack, 1963-64 through 1972-73
seasons


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

- - - Oranges - - - -

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
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
1971-72 2.21 1.81 2.27 2.21 2.41 2.30
1972-73 2.31 1.88 2.33 2.22 2.52 2.36

- - - Grapefruit - - - -

1963-64 $1.26 $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
1971-72 1.87 1.72 2.09 2.12 2.31 2.18
1972-73 2.30 2.01 2.16 2.01 2.37 2.10

- - Tangerines -- - -
4/5-bu. 4/5-bu.
Bruce Bruce
box box-flat

1963-64 $1.78 $1.74
1964-65 1.64 1.66
1965-66 1.72 1.84
1966-67 1.87 1.88
1967-68 2.05 2.20

1968-69 2.14 2.33
1969-70 2.34 2.45
1970-71 2.41 2.94
1971-72 2.47 2.66
1972-73 2.58 2.87













OTHER MIMEOGRAPHED PUBLICATIONS AVAILABLE ON CITRUS COSTS


FOOD AND RESOURCE ECONOMICS DEPARTMENT

Institute of Food and Agricultural Sciences
University of Floirda
Gainesville, Florida 32611


1. Costs of Picking and Hauling Florida Citrus Fruits, 1972-73 Season.
IFAS Economics.Report 60, March 1974.

2. Citrus Production Costs and Returns in Florida, Season 1971-72 with
Comparisons. IFAS Economics Report 54, September 1973.

3. Orange Production Costs and Returns in Florida, Season 1968-69 with
Comparisons. Florida Cooperative Extension Service Economic Series
70-3, October 1970.

4. Should I Buy a Citrus Grove? Florida Agricultural Extension Service
Circular 332, May 1969.

5. Cost of Planting and Developing Citrus Groves in the Indian River
Area of Florida Through Six Years of Age. Florida Cooperative
Extension Service Economic Series 70-1, July 1970.

6. Cost of Planting and Developing Citrus Groves in Southwest Florida
Through Seven Years of Age. Florida Cooperative Extension Service
Economic Series 70-4, October 1970.


"This public document was promulgated at an annual cost of $3589 or
$2.99 per copy to inform county agricultural directors, fresh fruit
packers and others in the citrus industry of research results of citrus
packinghouse costs for 1972-73."