• TABLE OF CONTENTS
HIDE
 Cover
 Table of Contents
 Nature of the sample and the measurement...
 1954-55 costs of packing and...
 Relative cost of various packs
 Variations in packing and selling...
 Relationship of seasonal volume...
 Trend in packing and selling...














Group Title: Costs of packing and selling Florida fresh citrus fruits ... season
Title: Costs of packing and selling Florida fresh citrus fruits
ALL VOLUMES CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00027603/00007
 Material Information
Title: Costs of packing and selling Florida fresh citrus fruits
Series Title: <1971-72 season>-1972-73 season: Economics report
Alternate 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,
Dept. of Agricultural Economics, Florida Agricultural Experiment Stations, Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville
Publication Date: 1954-1955
Copyright Date: 1969
Frequency: annual
regular
 Subjects
Subject: Citrus fruit industry -- Costs -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
 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.
 Record Information
Bibliographic ID: UF00027603
Volume ID: VID00007
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 23368100
electronic_aleph - 003247079
electronic_oclc - 60395278
lccn - 91649936
 Related Items
Succeeded by: Estimated costs of packing and selling fresh Florida citrus

Table of Contents
    Cover
        Cover
    Table of Contents
        Table of Contents
    Nature of the sample and the measurement of cost
        Page 1
        Page 2
    1954-55 costs of packing and selling
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
    Relative cost of various packs
        Page 9
    Variations in packing and selling cost among firms
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
    Relationship of seasonal volume to average packing and selling cost
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
    Trend in packing and selling cost
        Page 22
        Page 23
Full Text

AGRICULTURAL ECONOMIES MIMEO REPORT 56-5


COST OF PACKING AND SELLING


FLORIDA FRESH CITRUS FRUITS


1954-55


by


Eric Thor and A. H. Spurlock


DEPARTMENT OF AGRICULTURAL ECONOMICS
FLORIDA AGRICULTURAL EXPERIMENT STATION


JANUARY 1956


I Jl











CONTENTS

Page

Nature of the Sample . .. . . . .. 1

The Measurement of Costs . . . ... 1

1954-55 Costs of Packing and Selling . . . 3

Oranges ..... .... ... . 3

Grapefruit . , . . . . .. 9

Tangerines . .. . . . . .. 9

Relative Cost of Various Packs . . . .. 9

Variations in Packing and Selling Cost
Among Firms . . . ............ . .. .. 10

Oranges .... ............ .... 10

Grapefruit . . . . . 0 0 0 13

Tangerines. .*. . . . . * .. 15

Relationship of Seasonal Volume to Average
Packing and Selling Cost .* . . . . .. 15

Trend in Packing and Selling Cost . . .. .. 22











COST OF PACKING AND SELLING
FLORIDA FRESH CITRUS FRUITS, 1954-55i/


Nature of the Sample

Accounting records of 43 citrus packinghouses were the source of infor-

mation for this report. The total volume handled by these houses amounted to

an equivalent of 14,872, 145 1-3/5 bushel boxes, or approximately 35 percent

of the total pack of Florida fresh citrus in 1954-55. Except for the substitution

of another packinghouse to replace one that discontinued operation, the sample

consisted of the same packinghouses which supplied data for the 1953-54 cost

report of the same title.

The original sample of 43 packinghouses was drawn on the basis of

three considerations. First, the sample was restricted to firms which packed

primarily for commercial interstate trade. Second, an attempt was made to

select a proportional sample based upon the total number of houses operating

within each geographic area. Third, only houses that possessed rather de-

tailed cost records were included.


The Measurement of Cost

The primary cost data made available by the fresh citrus fruit packing-

houses show the details of the annual expenditure of each packinghouse in

the sample. The total operating cost is broken down into 35 accounts and


1/ This is a report of one phase of Southern Regional Project SM-4, "Mar-
keting Citrus Fruits". This report was prepared by: Eric Tlor, Associate
Agricultural Economist and A. H. Spurlcck, Agricultural Economist.








2

combined into seven major categories to obtain total packing and total

packing and selling costs. To give a clearer picture of the nature of the

costs of packing and selling fresh Florida citrus fruit, a brief description

of each element of operating cost is presented.

1. Material expense. Material expense includes crates, boxes, bags, fruit

wraps, nails, strips, straps, wire, labels, paste, liners and end guards. Costs

of these materials were allocated to the appropriate type of pack.

2. Labor expense: Labor expense was divided into six categories corres-

ponding with the general departmentalization of a packinghouse. The

classifications are: (a) receiving, trucking and dumping; (b) crate-making

and labeling; (c) foremen, graders and box closer; (d) wrapping and packing;

(e) trucking, checking and loading; and (f) payroll taxes and workmen's

compensation insurance.

3. Other direct operating expense: This expense includes power, light,

water and fuel oil; repairs to buildings and equipment; and miscellaneous

supplies.

4. Indirect operating expense: Included under this heading are fire and

casualty insurance; taxes and licenses; depreciation; interest on long-term

debts; and rent.

5. Administrative expense: Administrative expense includes management

and office salaries; office supplies and expense; auto and travel; interest

on operating capital; and telephone and telegraph.









3

6. Selling expense: Selling expense includes the salaries and operating

expense of the sales section, but does not include commissions and brokerage

fees. It does include assessments made to members for overhead expenses by

a central organization such as the Florida Citrus Exchange and others.

7. Other items: In this category are included degreening; color-add and

waxmaterial and service charges; Florida citrus advertising tax; Federal and

State inspection on grade, maturity and color-add; Florida Citrus Mutual and

Tangerine Co-operative charges; and Growers Administrative Committee

assessments.

Material, labor, and other direct operating and indirect operating

expenses are combined to give total packing expense. To these are added

administrative, selling and other expenses to arrive at the total packing and

selling cost.

1954-55 Costs of Packing and Selling
The costs of packing and selling oranges, grapefruit and tangerines

are given in Tables 1, 2 and 3. These tables show the average costs for

the major expense items by type of pack.

Oranges.--The average cost per box for packing and selling oranges

in the 1-3/5 bushel wirebound box was $0.89. The two major expense

items, material and labor, accounted for 65 % of the total cost. Material

expense, which included the wirebound crate, liner and label, averaged

$0.37 per box. The total average labor expense was $0.21.









Table 1.--Average Total Costs of Packing and Selling Florida Oranges per 1-3/5 Bushel Box Equivalent by Type


of Container, 42 Packinghouses,


1954-55


Type of Container


1-3/5 Bu.
Wirebound
Box


1-3/5 Bu.
Wirebound
Box Export


1-3/5 Bu.
Standard
Box Wrapped


4/5 Bu. 4/5 Bu.
Fiberboard Fiberboard
Box-/ Box Export2/


Number of Packinghouses 42 6 25 35 22 30 30 14
Average volume packed
(1-3/5 bu. equivalents) 96,913 11,322 28,974 11,934 13,474 22,077 17,261 9,962


Costs per 1-3/5 bushel:
Material
Labor:
Receive, truck, dump
Crate-making and labeling
Foreman, graders and box
closer
Wrap and pack
Truck, check, load
Payroll taxes and insurance
Total labor
Other direct operating/
Indirect operating
Total packing
Administrative
Selling
Other itemrn
Total packing and selling


$0.3729 $0.7487 $0.6965


.0103
.0301

.0468
.0616
.0426
.0145


$0.2059
.0516
.0332
$0.6636
.0447
.0638
.1142
$0.8863


.0103
.0301

.0565
.0616
.0426
.0147


$0.2158
.0528
.0377
$1.0550
.0447
.0646
.1142
$1.2785


.0157
.0412

.0840
.1196
.0470
.0225


$0.3300
.0738
.0562
$1.1565
.0641
.0609
.1142
$1.3957


$0.4369 $0.5185 $0.5769 $0.7667 $0.0072


.0166
.0430

.0548
.0844
.0619
.0156


$0.2763
.0632
.0408
$0.8172
.0551
.0643
.1142
$1.0508


.0166
.0503

.0788
.0844
.0619
.0224


$0.3144
.0632
.0408
$0.9369
.0551
.0693
.1142
$1.1755


.0200
.0341

.0789
.0991
.0646
.0288


$0.3255
.0735
.0511
$1.0270
.0578
.0619
.1142
$1 2609


.0178
.0390

.0901
.1148
.0723
.0232


.0154
.0249

.0487
.0359
.0378
.0163


$0.3572 $0.1790
.0815 .0526
.0558 .0360
$1.2612 $0.2748
.0632 .0428
.0619 .0599
.1142 .1142
$1.5005 $0.4917


1/ Includes both telescope and non-telescope type boxes.
2/ Telescope-type fiberboard box.
3/ Fruit passing over the grading table and sold in bulk in interstate trade.
/ Other direct operating expense includespower, lights and water, repairs of buildings and equipment and miscellaneous supplies.
5/ Indirect operating expense includes fire and casualty insurance, taxes and licenses, depreciation, interest and rent.
/ Other items include Florida citrus advertising tax, Federal-State inspection and testing, Growers Administrative Committee
and Florida Citrus Mutual assessments, degreening, and color-add and wax.


8-lb.
Mesh
Bag


5-lb.
Mesh
Bag


Bulk
in
Trucks


I









Table 2.--Average Total Cost of Packing and Selling Florida Grapefruit per 1-3/5 Bushel Box Equivalent by
Type of Container, 41 Packinghouses, 1954-55
1-3/5 Bu. 1-3/5 Bu. 3/5BuBu. -3 Bu u. 4/5 Bu. 8-lb. 5-lb. Bulk
Type of Container Wirebound Wirebound Standard Fiberboard Fiberboard Mesh Mesh in
Box Box Export Box Wrapped Box1/' Box Export/ Bag Bag Trucks3
Number of packinghouses 41 4 26 35 13 30 29 13
Average volume packed
(1-3/5 bu. equivalent) 92,372 3,024 51,112 7,335 7,449 11,544 8,409 2,763
Costs per 1-3/5 bushel:
n 00l-


Material
Labor:
Receive, truck, dump
Crate-making and labeling
Foreman, grader and box
closer
Wrap and pack
Truck, check, load
Payroll taxes and insurance
Total labor
Other direct operating/
Indirect operating/
Total packing
Administrative
Selling
Other items6/
Total packing and selling


$0.3729


.0072
.0255

.0346
.0469
.0330
.0108
$0.1580
.0375
.0256
$0.5940
.0363
.0539
.1142
$0.7984


.0072
.0255

.0398
.0469
.0376
.0123
$0.1693
.0375
.0313
$0.9868
.0363
.0572
.1142
$1.1945


.0083
.0349

.0497
.0844
.0314
.0152
$0.2239
.0409
.0361
$0.9974
.0493
.0557
.1142
$1.2166


.0083
.0410

.0387
.0645
.0428
.0120
$0.2073
.0440
.0289
$0.7171
.0422
.0542
.1142
$0.9277


.0083
.0479

.0460
.0645
.0428
.0180
$0.2275
.0440
.0289
$0.8189
.0422
.0575
.1142
$1.0328


.0190
.0327

.0775
.0961
.0597
.0264
$0.3114
.0687
.0460
$0.9725
.0496
.0528
.1142
$1.1891


.0173 .0102
.0315 .0175


.0805
.1113
.0659
.0229
$0.3294
.0747
.0517
$1.1758
.0536
.0528
.1142
$1.3964


.0287
.0147
.0294
.0136
$0.1141
.0333
.0169
$0.1713
.0339
.0509
.1142
$0.3703


1/ includes both telescope and non-telescope type boxes.
2/ Telescope type fiberboard box.
3/Fruit passing over the grading table and sold in bulk in interstate trade.
'/ Other direct operating expense includes power, lights and water, repairs of building and equipment, and miscellaneous
supplies.
5/ Indirect operating expense includes fire and casualty insurance, taxes and licenses, depreciation, interest and rent.
'i Other items include Florida citrus advertising taxes, Federal-State inspection and testing, Growers Administrative
SCommittee and Florida Citrus Mutual assessments, degreening and color-add and wax.


I


__


$0.7487 $0.6965 $0.4369


$0.5185 $0.5464 $0.720 0


\


~c`L







Table 3.--Average Total Cost of Packing and Selling Florida Tangerines
per 1-3/5 Bushel Box Equivalent by Type of Container,
20 Packinghouses, 1954-55

T 4/5 Bu. 4/5 Bu. 4/5 Bu. 4/5 Bu.
Type of Container Wirebound Wirebound Fiberboard Standard
Box Flat Box Nailed Box
Number of Packinghouses 20 17 9 4
Average volume packed
(1-3/5 bu. equivalent) 29,082 21,295 1,867 687
Costs per 1-3/5 bushel:
Material $0.6145 $0.6520 $0.5417 $0.9145
Labor:
Receive, truck, dump .0229 .0220 .0224 .0286
Crate-making and labeling .0552 .0585 .0557 .0575
Foreman, graders and box
closer .0947 ,0847 .0865 .0888
Wrap and pack .1080 .1060 .1041 .1274
Truck, check, load .0826 .0843 .0803 .1066
Payroll taxes and insurance .0262 .0246 .0252 .0262
Total labor $0.3896 $0.3801 $0.3742 $0.4351
Other direct operating!/ .0972 .0983 .1069 .1052
Indirect operating2/ .0641 .0622 .0610 .0724
Total packing $1.1654 $1.1926 $1.0838 $1.5272
Administrative .0601 .0625 .0674 .0680
Selling .0728 .0728 .0728 .0728
Other items .1283 .1318 .1391 .1264
Total packing and selling $1.4266 $1.4597 $1.3631 $1.7944

1/ Other direct operating expense includes power, lights and water, repairs of
building and equipment and miscellaneous supplies.

2/ Indirect operating expense includes fire and casualty insurance, taxes and
licenses, depreciation, interest and rent.
3/ Other items include Florida citrus advertising tax, Federal-State inspection
and testing, Growers Administrative Committee and Florida Citrus Mutual
assessments, degreening, and color-add and wax.










7

The average total cost of packing and selling oranges sold for export

in 1-3/5 wirebound boxes was $1.28. This was $0.39 higher than oranges

sold in interstate trade. The spread in the cost of the two types of packs

was due primarily to the difference in material costs.

The overage cost of wrapping, packing, and selling oranges in the 1-3/5

bushel standard nailed box was $1.40. Materials, which included the box,

fruit wraps, liners, end guards and labels, accounted for $0.70 of this total

cost, and labor for $0.33 per box.

The cost per 1-3/5 bushel box equivalent for oranges packed in 4/5

bushel fiberboard boxes was $1.05. The labor expense of packing and

handling oranges in 4/5 bushel fiberboard boxes was approximately $0.07

per box higher than for oranges packed and handled in 1-3/5 bushel wire-

bound boxes which were sold in interstate trade.

The average cost per 1-3/5 bushel equivalent of packing oranges in

4/5 bushel fiberboard boxes for the export trade was approximately $0.12

per box higher than oranges packed in 4/5 bushel fiberboard boxes sold in

the domestic market. This difference was to a large extent due to the

difference in container costs. Container cost for export was about 8 cents

higher than for domestic shipments. In general, the export shipments were

made in the telescope type fiberboard box while the interstate trade ship-

ments were made in either telescope or non-telescope type fiberboard box.

Therefore, the average container cost for 4/5 bushel fiberboard boxes sold










in domestic trade was less than the price of telescope type boxes, but

higher than the price of non-telescope type boxes.

The average total cost of packing and selling oranges "loaded bulk

in truck" was $0.49 per 1-3/5 bushel equivalent. This classification

represents oranges sold in bulk in interstate trade. In general, oranges

sold "loaded bulk in truck" passed through all the packing operations that

fruit packed in containers did, with the exception that after the fruit had

been graded and sized it was loaded by conveyor belt directly into the truck.

Some allocations of costs for cratemaking, labeling, trucking, checking and

loading have been made by packinghouses to this fruit. This may be logical

as long as the houses are not set up to handle bulk without slowing down the

volume of other packs. When bulk in trucks is being handled the workers in

the box-supply and truck, check, and load sections do not work at their

regular packing. This delay may properly be charged to bulk.

Since packers are also assured of $1.00 per hour, when bulk in truck

is handled packers do not earn this minimum on a piece-rate basis. Therefore,

some houses have made a special charge for this service.

The average cost for the two major types of mesh bags also is shown in

Table 1. The total cost of packing and selling oranges in mesh bags was

$1.26 for 8-lb. bags and $1.50 for 5-lb. bags. Both material and labor

expense increased as the size of the bag decreased.











Grapefruit.--The average costs of packing and selling grapefruit are

shown in Table 2. The average total cost per 1-3/5 bushel equivalent for

packing and selling grapefruit was $0.80 for the 1-3/5 bushel wirebound

box, of which 66 % was materials and labor. Packing and selling costs

were $1.19 for the 1-3/5 wirebound box export; $1.22 for the 1-3/5 bushel

standard nailed box; $0.93 for the 4/5 bushel fiberboard box sold in inter-

state trade; $1.03 for the fiberboard box sold for export; $1.19 for the

8-lb, mesh bag; $1.40 for the 5-lb. mesh bag; and $0.37 for grapefruit

sold "bulk in truck".

Tangerines.--The seasonal average costs of packing and selling

tangerines are shown in Table 3. The 1-3/5 bushel equivalent costfor packing

and selling tangerines in the 4/5 bushel wirebound box was $1.43; in the 4/5

bushel wirebound flat box, $1.46; and in the 4/5 fiberboard box, $1.36.

As with oranges and grapefruit, material was the greatest single expense

item. The cost of the material, which includes the crate, liner and label

was 43 percent of the total cost for the 4/5 bushel wirebound bruce box,

45 percent for the 4/5 bushel wirebound fiat, and 40 percent for the 4/5

fiberboard box,

Relative Cost of Various Packs

The cost of packing and selling fresh Florida citrus fruit varied with

the type of fruit and type of container. The accounting records showed

grapefruit had lower costs than that of oranges, which ir; turn were less










than tangerines. Also, the cost of packing and selling fruit in wirebound

containers tended to be lower than packing and selling in the other type of

containers. A graphic comparison of the cost of packing and selling the

different types of packs for 1954-55 is shown in Figure 1,


Variations in Packing and Selling Cost Among Firms

Oranges.--There was considerable variation among firms in the total

cost of packing and selling oranges in the various containers. The packing

and selling costs of oranges for the sample are arrayed in five cent intervals

for five types of containers in Table 4. For the 42 firms packing oranges in

1-3/5 bu. wirebound boxes, the total packing and selling costs ranged from

$0.75 to $1.23, with 33 firms falling within the range of $0.85 to $1.09.

For 1-3/5 standard nailed boxes the range was from $0.95 to $2.00 with

15 of the 25 firms within the range of $1.15 to $1.49. Thirty-five firms

packing 4/5 bu. fiberboard boxes had costs between $0.84 and $1.40 with

26 in the range of $0.90 to $1.24.

Packing and selling costs of oranges in 8-lb. mesh bags fell between

$1.04 and $1.70 for 30 packinghouses, of which 21 had costs between $1.20

and $1.44. For 5-lb. mesh bags the average total packing and selling costs

were from $1.31 to $2.06 for 30 firms of which 16 ranged from $1.40 to $1.59.

The variations in packing costs among the firms were similar to the

variations in packing and selling costs. The range for the 42 firms handling
















TANGERINES


1.60





- ....

0.... ..
I1" .* .*

. .40 ,-t" Q
"- 0'0'0. -
0c( .
S.80 xo) x B 0 -

V- ... .
,D 0 3 : -, O


S0- a oa a 0s: s0 . 1
I . ' :,: : .
4- CD X 0 U)

I. X s'" -n
ol oria -F 0r F ... i 0t ..
0 a7..' .
. . .- ,, "










Florida Fresh Citrus Fruit, 1954-55.
Figre1. heAveag ToalCos pr 13/ Buhe Bo fr Pckng< COXlin


ORANGES


GRAPEFRUIT







12
Table 4.--Variation in the Cost per 1-3/5 Bushel Box Equivalent of Packing
and Selling Florida Oranges by Type of Container, 42 Packinghouses,
1954-55

1-3/5 Bu. 1-3/5 Bu. 4/5 Bu. 8-1b. 5-lb.
Cost per Wirebound Standard Fiberboard Mesh Mesh
1-3/5 Bushel
Box Box Wrapped Box Bag Bag
- - - - -Number of packinghouses- - - - -

Packing and Selling
Under $0.80 1 0 0 0 0
$0.80- .84 3 0 1 0 0
.85 .89 8 0 0 0 0
.90- .94 12 0 2 0 0
.95- .99 4 2 3 0 0
1.00- 1.04 5 0 7 1 0
1.05- 1.09 4 0 4 1 0
1.10- 1.14 3 0 5 2 0
1.15- 1.19 0 1 2 2 0
1.20- 1.24 2 2 3 5 0
1.25- 1.29 0 4 4 5 0
1.30- 1.34 0 2 2 4 2
1.35- 1.39 0 2 1 2 1
1.40- 1.44 0 0 1 5 7
1.45- 1.49 0 4 0 0 3
1.50- 1.54 0 2 0 0 5
1.55- 1.59 0 1 0 1 1
1.60- 1,64 0 1 0 1 1
1.65 and over 0 4 0 1 10
Total number of firms 42 25 35 30 30


Packing
0


Under $0.59


$0.60- .64 4 0 0 0 0
.65 .69 15 0 1 0 0
.70- .74 6 0 5 0 0
.75- .79 6 2 5 0 0
.80- .84 5 0 5 0 0
.85- .89 2 1 4 2 0
.90- .94 2 0 4 5 0
.95- .99 1 4 2 8 0
00 1.04 0 0 5 3 0
1.05- 1.09 0 2 3 1 0
1.10- 1.14 0 2 1 2 5
1.15- 1.19 0 1 0 6 4
1.20- 1.24 0 4 0 0 6
1.25- 1.29 0 2 0 0 5
1.30 and over 0 7 0 3 10
Total number of firms 42 25 35 30 30







13

1-3/5 bu. wirebound boxes was from $0.56 to $0.95. The packing cost

for 38 of these firms ranged from $0.60 to $0.89. Twenty-five firms

packing in 1-3/5 bu. standard nailed boxes had costs from $0.77 to

$1.70, with 18 of these firms having packing costs over $1.00. The

variation in the cost of packing oranges in 4/5 bu. fiberboard boxes for

35 firms ranged from $0.66 to $1.13, and for 25 firms from $0.70 to $0.99.

The spread in packing cost for 8-lb, mesh bags for 30 firms was

between $0.85 and $1.47 with 20 firms included within the cost interval

of $0.95 to $1.19. For the 30 firms packing oranges in 5-lb. mesh

bags the packing cost ranged from $1.12 to $1.83 and 15 of these firms had

costs of $1.25 or more per box.

Grapefruit.--The range in grapefruit packing costs among the different

firms was not as great as in oranges, except for 5-lb. bags. The 41 firms

using 1-3/5 bu. wirebound boxes varied between $0.74 and $1.11 for

packing and selling each box, as shown by data in Table 5. Of these firms

38 had costs between $0.75 and $0.99. For the 1-3/5 bu. standard nailed

boxes 26 packinghouses had packing and selling costs from $0.91 to $1.75,

and 16 had costs between $1.10 and $1.29. The 35 firms using 4/5 bu.

fiberboard boxes had total packing and selling costs ranging between $0.78

and $1.28. Of these, 22 had costs from $0.85 to $1.04.

The packing and selling costs for 8-lb. mesh bags were from $1,01 to

$1.64 for 30 firms. For 5-lb. mesh bags, 29 firms ranged from $1.21 to$2.01.








Table 5.--Variation in the Cost per 1-3/5 Bushel Box Equivalent of Packing and
Selling Florida Grapefruit by Type of Container, 41 Packinghouses,
1954-55
1-3/5 Bu. 1-3/5 Bu. 4/5 Bu. 8-lb. 5-lb.
Cost per Wirebound Standard Fiberboard Mesh Mesh
1-3/5 BushelBox Box Wrapped Box Bag Bag
- --- -Number of packinghouses- - - - -
Packing and Selling
Under- $0,70 0 0 0 0 0
$0.70 .74 1 0 0 0 0
.75 .79 10 0 1 0 0
.80- .84 11 0 3 0 0
.85- .89 6 0 7 0 0
.90- .94 6 1 7 0 0
.95- .99 5 0 4 0 0
1.00- 1.04 0 1 4 4 0
1,05- 1,09 1 0 4 5 0
1.10- 1.14 1 5 2 1 0
1.15- 1.19 0 2 0 6 0
1,20- 1.24 0 5 1 5 1
1.25- 1.29 0 4 2 1 5
1.30- 1.34 0 2 0 2 4
1.35- 1,39 0 2 0 3 5
1.40- 1.44 0 1 0 0 5
1,45 1.49 0 0 0 0 0
1.50- 1.54 0 1 0 1 2
1.55 and over 0 2 0 2 7
Total number of firms 41 26 35 30 29
Packing
Under- $0.55 2 0 0 0 0
$0.55- .59 13 0 1 0 0
.60- .64 10 0 5 0 0
.65 .69 10 0 9 0 0
.70- .74 2 1 7 0 0
.75 .79 2 1 3 0 0
.80 .84 2 0 4 6 0
.85 .89 0 4 2 7 0
.90- .94 0 2 1 6 0
.95- .99 0 4 2 1 0
1.00- 1,04 0 2 1 1 3
1.05- 1.09 0 6 0 1 8
1,10- 1.14 0 2 0 5 7
1.15- 1,19 0 1 0 0 1
1.20- 1.24 0 0 0 1 2
1.25- 1.29 0 1 0 0 1
1,30- 1.34 0 1 0 1 0
1.35- 1.39 0 0 0 0 0
1.40- 1.44 0 0 0 1 1
1.45 and over 0 1 0 0 6
Tota number of ms 41" '26 35 30 29









Packing costs for grapefruit in 1-3/5 bu. wirebound boxes for 41

firms varied from $0.54 to $0.80. Thirty-five of these firms ranged

between $0.55 and $0.74. Twenty-six packinghouses had packing costs

ranging from $0.70 to $1.46 for 1-3/5 bu. standard nailed boxes, with

18 of these firms ranging from $0.85 to $1.09. The 35 firms packing 4/5

bu. fiberboard boxes were within the cost range of $0.59 and $1.00, with

23 of the firms falling between $0.65 to $0.84.

The cost of packing in 8-lb. mesh bags for 30 firms ranged from

$0.80 to $1.40. Variation in cost for the 29 firms packing grapefruit in

5-lb. mesh bags ranged from $1.01 to $1.77.

Tangerines,--Packing and selling cost for 4/5 bu. wirebound boxes

ranged from $0.80 to $1.75 for 20 firms; for 4/5 bu. wirebound flat boxes

from $1.24 to $1.78 for 17 firms; and for 4/5 bu. fiberboard boxes from

$0.60 to $1.42 for 9 firms, Table 6.

The unit costs of packing tangerines varied from $0.80 to $1.48 for

4/5 bu. wirebound boxes; from $0.97 to $1.54 for 4/5 bu. wirebound flat

boxes; and from $0.58 to $1.23 for 4/5 bu. fiberboard boxes.


Relationship of Seasonal Volume to Average Packing and Selling Cost

The data indicate that there is a relationship between the average total

packing and selling cost and the seasonal volume handled by the individual

house.--in order to investigate some of the firm variation in cost, the rela-
tionship between the size of the packinghouse, based on the total volume of









Table 6.--Variation in the Cost per 1-3/5 Bushel Box Equivalent of Packing and
Selling Florida Tangerines by Type of Container, 20 Packinghouses,
1954-55

Cost per 4/5 Bu. 4/5 Bu. 4/5 Bu.
1-3/5 Bushel Wirebound Box Wirebound Flat Fiberboard Box
- - - - -Number of packinghouses - - - -
Packing and Selling

Under $1.25 2 1 5
$1.25- 1.29 0 0 1
1.30- 1.34 1 2 0
1.35- 1.39 3 3 0
1.40- 1.44 3 1 3
1.45- 1.49 3 4- 0
1.50- 1.54 1 2 0
1.55- 1.59 2 0 0
1.60 and over 5 4. 0
Total number of firms 20 17 9
Packing
Under- $1.00 2 1 5
$1.00- 1.04 0 0 1
1.05- 1.09 0 2 2
1.10- 1.14 4 5 0
1.15- 1.19 4 1 0
1.20- 1.24 3 0 1
1.25- 1.29 1 4 0
1.30- 1.34 3 1 0
1.35- 1.39 2 1 0
1.40- 1.44 0 0 0
1.45 and over 1 2 0
Total number of firms 20 17 9









17

citrus packed per season, and the average total cost of packing and selling were

considered. The packinghouses were divided into four seasonal volume classes

of (1) under 200,000 boxes, (2) 200,000 to 399,999 boxes, (3) 400,000 to

699,999 boxes, and (4) over 700, C00 boxes. The average total cost of packing

and selling oranges and grapefruit packed in the 1-3/5 bushel wireboundbox

was calculated for each volume group and is shown in Tables 7 and 8. The

average total packing and selling cost also was calculated for each volume

group of tangerines packed in the 4/5 bushel wirebound box, Table 9, The

data in all three of the tables showing average total packing and selling cost

by volume classes, indicate that houses with the larger seasonal volumes tended

to have lower unit costs. However, upon a more detailed study of the data,

it was found that there were houses that had high, and some that had low costs

in all volume groups. This variation within groups is shown in Table 10 and

indicates that the larger volume groups contained more houses with lower costs

than the smaller seasonal volume groups.

The reason for the variation in costs between types of packs can be

accounted for to a certain extent by differences in labor requirements and

container prices. However, this does not account for the variation in cost

among firms for providing the same service. The firm to firm variation in

costs may be associated with economies of scale, or economies associated

with work methods, or a combination of both.








Table 7.--Cost of Packing and Selling Florida Oranges in 1-3/5 Bushel
Boxes, by Volume Groups, 42 Packinghouses, 1954-55


Wirebound


Citrus Fruit Handled (boxes) Under 200, 000- 400, 000- 700,000 Seasonal Avg.
200,000 399,999 699,999 and over All Volumes
Number of packinghouses 4 13 8 17 42
Average pack of oranges
(1-3/5 bu. equivalent) 26,262 25,997 96,385 168,016 96,913
Cost per 1-3/5 bushel:
Material $0.3959 $0.3908 $0.3718 $0.3705 $0.3729
Labor:
Receive, truck, dump .0223 .0090 .0075 .0108 .0103
Crate making and labeling .0375 .0352 .0349 .0280 .0301
Foreman, graders and box
closes .0595 .0548 .0528 .0468 .0468
Wrap and pack .0570 .0563 .0585 .0632 .0616
Truck, check, load .0421 .0471 .0460 .0411 .0426
Payroll taxes and insurance .0164 .0157 .0143 .0144 .0145
Total labor $0.2348 $0.2181 $0.2140 $0.2043 $0.2059
Other direct operating/ .0881 .0548 .0626 .0469 .0516
Indirect operating/ .0756 .0472 .0455 .0320 .0332
Total packing $0.7944 $0.7109 $0.6939 $0.6537 $0.6636
Administrative .1044 .0529 .0545 .0389 .0447
Selling .0800 .0634 .0620 .0610 .0638
Other itemsW .1045 .1033 .1063 .1125 .1142
Total packing and
selling $1.0833 $0.9305 $0.9167 $0.8661 $0.8863
1/ Other direct operating expense includes power, lights and water, repairs of
buildings and equipment, and miscellaneous supplies,
2/ Indirect operating expense includes fire and casualty insurance, taxes and
licenses, depreciation, interest and rent.
3/ Other items include Florida Citrus Advertising tax, Federal-State inspection
and testing, Growers Administrative Committee and Florida Citrus Mutual
assessments, degreening, and color-add and wax.










Table 8.--Cost of Packing and Selling Florida Grapefruit in 1-3/5 Bushel Wirebound
Boxes, by Volume Groups, 41 Packinghouses, 1954-55

Citrus Fruit Handled (boxes) Under 200,000- 400,000- 700, 000 Seasonal Avg.
200,000 399,999 699,999 and over All Volumes
Number of packinghouses 4 13 7 17 41
Average pack of grapefruit
(1-3/5 bu. equivalent) 5,376 38,266 73,146 162,134 92,372
Cost per 1-3/5 bushel:
Material $0.3962 $0.3894 $0.3772 $0.3745 $0.3729
Labor:
Receive, truck, dump .0100 .0063 .0046 .0079 ,0072
Crate making and labeling .0333 .0284 .0238 .0234 .0255
Foreman, graders and box
closer .0485 .0312 .0295 .0360 .0346
Wrap and pack .0534 .0490 .0425 .0472 .0469
Truck, check, load .0280 .0356 .0358 .0319 .0330
Payroll taxes and insurance .0130 .0106 .0084 .0113 .0108
Total labor $0.1862 $0.1611 $0.1446 $0.1577 $0,1580
Other direct operatingr .0598 .0403 .0352 .0373 .0375
Indirect operating .0575 .0301 .0217 .0253 .0256
Total packing $0.6997 $0.6209 $0.5787 $0.5948 $0.5940
Administrative .1172 .0479 .0438 .0320 .0363
Selling .0600 .0538 .0526 .0504 .0539
Other items/ .1157 .1181 .1094 .1143 .1142
Total packing and
selling $0,9926 $0.8407 $0.7845 $0.7915 $0.7984


1/ Other direct operating expense includes power, lights and
buildings and equipment, and miscellaneous supplies.


water, repairs of


2/ Indirect operating expense includes fire and casualty insurance, taxes and
licenses, depreciation, interest and rent.
3/ Other items include Florida advertising tax, Federal-State inspection and
testing, Growers Administrative Committee and Florida Citrus Mutual
assessments, degreening, and color-add and wax.







Table 9.--Cost of Packing and Selling Florida Tangerines in 4/5 Bushel Wirebound
Boxes by Volume Groups, 20 Packinghouses, 1954-55


Citrus Fruit Handled (boxes) Under 200,000- 400, 000- 700,000 Seasonal Avg.
200,000 399,999 699,999 and over All Volumes
Number of packinghouses 2 4 4 10 20
Average pack of tangerines
(1-3/5 Bu.equivalent) 7,443 4,949 9,953 50, 715 29,082
Cost per 1-3/5 bushel:
Material $0.6511 $0.6183 $0.6183 $0.6132 $0.6145
Labor:
Receivetruck, dump .0165 .0161 .0119 .0242 .0229
Crate making and labeling .0747 .0745 .0664 .0523 .0552
Foreman, graders and box
closer .0795 .0857 .1059 .0946 .0947
Wrap and Pack .1024 .1015 .0993 .1116 .1080
Truck, check and load .0881 .0708 .1067 .0825 .0826
Payroll taxes and insurance .0204 .0290 .0286 .0261 .0262
Total labor $0.3816 $0.3776 $0.4188 $0.3913 $0.3896
Other direct operating]/ .0957 .1207 .0637 .0989 .0972
Indirect operating'" .1033 .0589 .0773 .0621 .0641
Total packing $1.2317 $1.1755 $1.1781 $1.1655 $1.1654
Administrative .1328 .0842 .0820 .0554 .0601
Selling .0800 .0890 .0811 .0723 .0728
Other items/ .1597 .1225 .1095 .1291 .1283
Total packing and
selling $1.6042 $1.4712 $1.4507 $1.4223 $1.4266

1/ Other direct operating expense includes power, lights and water, repairs of
buildings and equipment, and miscellaneous supplies.
2/ Indirect operating expense includes fire and casualty insurance, taxes and
licenses, depreciation, interest and rent.
3/ Other items include Florida citrus adva'.tsing tax, Federal-State inspection
and testing, Growers Administrc:-ive Committee and Florida Citrus Mutual
assessments, degreening, and color-add and wax.









21


Table 10.--Volume of Fruit Handled jnd Variation in the Cost of Packing and
Selling Florida Citrus fruit in Wirebound Boxes, 43 Packinghouses,
1954-55

1-3/5 bdshel box equivalent handled_
Cost per Under 200, 000- 400,000- 700, 000- All
1-3/5 bushel 200, 000 399,999 699,999 and over Volumes
Oranges in 1-3/5 wirebound boxes
--- --- Number of firms - -

Under- $0.80 0 0 0 1 1
$0.80- .89 0 2 3 6 11
.90- .99 0 8 2 6 16
1.00- 1.09 2 1 3 3 9
1.10- 1.19 0 2 0 1 3
1.20 and over 2 0 0 0 2

Grapefruit in 1-3/5 wirebound boxes
Under- $0.70 0 0 0 0 0
$0.70- .79 0 1 3 7 11
.80- .89 0 8 2 7 17
.90- .99 2 4 2 3 11
1.00- 1.09 1 0 0 0 1
1.10 and over 1 0 0 0 1

Tangerines in 4/5 wirebound boxes
Under- $1.19 0 0 1 1 2
$1.20- 1.29 0 0 0 0 0
1.30- 1.39 0 1 0 3 4
1.40- 1.49 0 0 1 5 6
1.50- 1.59 1 1 1 0 3
1.60 and over 1 2 1 1 5









Trend in Packing and Selling Cost

The cost of packing and selling Florida citrus is increasing. The

average total cost of packing and selling Florida citrus fruits in the seven

containers shown in Table 11 has increased during the past seven seasons

with minor fluctuations.

The average total cost of oranges packed in 1-3/5 bu. wirebound boxes

increased from $0.83 for the 1948-49 season to $0.94 for the 1953-54 season,

then decreased to $0.89 in 1954-55 principally due to lower containerprices.

A comparison of these seasons for oranges packed in 1-3/5 bu. standard nailed

boxes showed an increase from $1.16 to $1.40 per box; for 8-lb. bags the cost

increased from $1.01 to $1.26; and for 5-lb. bags the average total packing

and selling cost changed from $1.18 to $1.50.

The average total cost of packing and selling grapefruit in 1-3/5 bu.

wirebound boxes increased from $0.74.:in 1948-49 to $0.84 in 1953-54, but

decreased to $0.80 in 1954-55. Grapefruit packed in 1-3/5 standard nailed

boxes increased in cost from $1.08 to $1.22. Cost per 1-3/5 bushel equivalent
for 8-lb. bags ranged from $0.92 in 1948-49 to $1.19 in 1954-55, and for

5-lb. bags from $1.17 to $1.40.

The average total cost per 1-3/5 bushel equivalent for packing and

selling tangerines increased during the seven-year period from $1.19 to

$1.43 for 4/5 bu. wirebound boxes, from $1.21 to $1.46 for 4/5 bu. wire-

bound flat boxes, and from $1.35 to $1.79 for 4/5 bu. standard nailed boxes.











Table 11.--Average Total Cost per 1-3/5 Bushel Equivalent for Packing
and Selling Florida Citrus Sold for Fresh Consumption,
1948-49 through 1954-55Y


., Type of Pack
Boxes Mesh Bas.
Season
1-3/5 Bu. 1-3/5 Bu. 8- 5-Ib
Wirebound Staridard Wrapped
-- -. - -llars per 1-3/5 bu. equivalent- - - --


Oranges


1948-49
1949-50
1950-51
1951-52
1952-53
1953-54
1954-55


.8330
.8785
.9166
.9111
.9530
.9355
.8863


1.1590
1.1368
1.2062
1.2526
1.2730
1.3735
1.3957


1.0052
1.0488
1.1490
1.1069
1.2067
1.2335
1.2609


1.1822
1.2580
1.4086
1.3444
1.4469
1.4597
1.5005


Grapefruit


1948-49
1949-50
1950-51
1951-52
1952-53
1953-54
1954-55


.7359
.8046
.8196
.8487
.8543
.8375
.7984


1.0785
1.0257
1.0945
1.1907
1.1669
1.1871
1.2166


.9153
.9453
1.0849
1.0467
1.1231
1.1659
1.1891


1.1736
1.2387
1.3201
1.2670
1.3233
1.3666
1.3964


4/5 Bu.
Wirebound Box


1.1916
1.2491
1.4250
1.3994
1.4417
1.3689
1.4266


Tangerines
4/5 Bu. 4/5 Bu.
Wirebound Flat Standard NailedBox


1.2125
1.2555
1.3563
1.3589
1.4379
1.4373
1.4597


1.3479
1.5702
1.4938
1.5074
1.5827
1.5768
1.7944


1954-55 -43


1948-49
1949-50
1950-51
1951-52
1952-53
1953-54
1954-55


1/ Number of houses included in each of the years:
1948-49 73 1950-51 77 1952-53 -43
1949-50-73 1951-52-67 1953-54 -43


--- --- - --- -- -




University of Florida Home Page
© 2004 - 2010 University of Florida George A. Smathers Libraries.
All rights reserved.

Acceptable Use, Copyright, and Disclaimer Statement
Last updated October 10, 2010 - - mvs