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 Cover
 Table of Contents
 Nature of the sample
 The measurement of costs
 Costs of packing and selling,...
 Variations in packing and selling...
 Relationship of seasonal values...
 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/UF00027603/00010
 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: 1957-1958
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: VID00010
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
        Page 1
        Page 2
    The measurement of costs
        Page 3
    Costs of packing and selling, 1957-58
        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
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
    Relationship of seasonal values to average cost of packing and selling
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
    Trend in packing and selling cost
        Page 28
        Page 29
Full Text

, 1959


by

A. H. Spurlock and H. G. Hamilton


/1*

I.1~
,.... ~r 3
NL


Cost of Packing and Selling Florida Oranges, per 1-3/5 bu.,1957-58


4/5 bu. wirebound
(half size)

4/5 bu. carton


8-lb. mesh bag


5-1b. mesh bag


Materials Labor Other Other


Admin. &
selling
I


A Study Conducted with Funds Provided by the
Research and Marketing Act



DEPARTMENT OF AGRICULTURAL ECONOMICS
FLORIDA AGRICULTURAL EXPERIMENT STATIONS
GAINESVILLE, FLORIDA


AGRICULTURAL ECONOMICS MIMEO REPORT NO. 59-9





COSTS OF PACKING AND SELLING

FLORIDA FRESH CITRUS FRUITS,_

1957-58 SEASON


r T ~ ~ *" iii> *- -*


~E~t~iiiil 1


~F~t~S~E~t~i-ii~












CONTENTS


Page

NATURE OF THE SAMPLE................... ,, ,..,,,, ........ 1

THE MEASUREMENT OF COSTS ,....,,,,..o. ......................,.... 3

COSTS OF PACKING AND SELLING, 1957-58.......,................ 4

Oranges*....................*.......**...................... .. 13

Grapefruit... ...,,,.............. ...............,,.......,...... 14

Tangerines....................... .............................. 5

Grove-to-Cannery Fruit and Packed-Fruit-Purchased ................. 15

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

Oranges..........................s............................. 16

Grapefruitt..,,................ ............ .......... .......... 17

Tangerines.............. .............. ........ ........ ..... ...*. 18

RELATIONSHIP OF SEASONAL VOLUME TO AVERAGE COST OF PACKING
AND SELLING ............ ....... ............................ 22

TREND IN PACKING AND SELLING COST.............................. 28








COST OF PACKING AND SELLING FLORIDA
FRESH CITRUS FRUITS, 1957-58'

Nature of the Sample

This report is based on the accounting records of 42 citrus packinghouses. The

total packed volume handled by these houses amounted to an equivalent of 11,700,172

1-3/5 bushel boxes, or approximately 40 percent of the total pack of Florida fresh

citrus in 1957-58.2

The original sample of 43 packinghouses drawn in 1952 was restricted to firms

which packed primarily for commercial interstate trcde. Geographic distribution of

the houses and availability of cost records were also considered. An attempt has

been made to include the same firms each year to prevent year to year cost fluctu-

ations due to sample changes. However, some changes have been necessary, and

several new firms have been added to replace those that ceased to operate.

The packed volume of the 42 sample houses in 1957-58 ranged from 26,000 to

816,000 boxes of 1-3/5 bushel equivalent, and averaged 278,575 boxes. This was

considerably larger than the packed volume of all citrus packinghouses in the State.

These averaged only about 176,000 packed boxes, even after excluding the very

small houses of less than 10,000 boxes. However, the packed volume of the 42 sample

houses, as well as all houses in the State averaged only 80 percent of the preceding

season.

This is a report of one phase of Southern Regional Project SM-22, "The Economic
Efficiency of Marketing Florida, Puerto Rico and Texas Citrus Fruit."
2Calculated from data in 1957-58 Season Annual Report, Citrus and Vegetable
Inspection Division, Winter Haven, Florida.








-2-


During the period since the processing industry has become of vital importance

in citrus marketing, an increasing proportion of the fruit controlled or owned by

packinghouses has been going to processing plants. This may affect fresh fruit packing

costs adversely if the packed volume falls much below the normal capacity of the

packinghouse. In some cases, however, the total volume controlled by the packing-

house has grown over the years so that the packed volume still may be near the optimum.

In other firms the packinghouse appears to have an excess capacity, judging by packed

volumes in prior years.

In 1957-58 the proportion of the total volume represented by packed fruit was

as follows:
Total volume Average volume
42 houses(boxes) per house(boxes) Percent

Packed fruit................. 11,700,172 278,575 45.5
Cannery fruit through house ... 5,597,700 133,279 21.8
Total through house....,... T7, 7,-72 TIM54Z -67T3
Direct from grove to cannery
and tree sales............. 8,319,105 198,074 32.4
Packed fruit purchased........ 71?853 1,711 .3

Total 25,688,830 611,639 100.0


Packed fruit represented 45.5 percent of the total volume which was about the

same percentage packed as in 1956-57. The percent packout averaged 67 in 1957-58

as compared with 62 percent for the preceding season. The proportion of fruit going

direct from grove to cannery increased to 32 percent of the total fruit in 1957-58.

However, total volume of all fruit handled by the packinghouses declined by 18 per-

cent from the preceding season to 611,639 boxes per firm.







-3-


The Measurement of Costs

The primary cost data made available by the fresh citrus fruit packinghouses

showed the details of the annual expenditure of each packinghouse in the sample.

The total operating cost was broken down into about 34 accounts and combined into

seven major categories to obtain total packing and total packing and selling costs.

Distribution of the various items of cost to each kind of fruit and each container was

made by the firm's auditors in most cases. These costs were used without substantial

changes in preparing the averages by containers. For the few firms included who had

only total costs, allocations were made to .he various containers with ratios developed

for this purpose by studying packing operations in a number of packinghouses.l

There was some variation among accountants in method or formula for distributing

costs. Materials cost, general and a&dinistrative and selling expenses were rather

uniformly distributed, but labor and other direct operating costs were allocated by

various methods. In most of the packinghouses, the fruit graded out for canneries

(eliminations) was charged with the labor for receiving and dumping, and often grading

labor was charged. Only 13 of the houses allocated any other class of labor to elimi-

nated fruit. Costs for other direct operating expenses were usually allocated to the

eliminated fruit at a lower per-box rate than to the packed fruit. In several of the

houses the eliminated fruit was charged principally with administrative expense, the

same as fruit going direct from grove to cannery. This method was based on the

assumption that the packinghouse expense incident to handling the bulk fruit is incurred

in order to get packed fruit.

1"A Method of Allocating Citrus Packinghouse Costs," Agricultural Economics
Mimeo Report No. 58-1, July, 1957.







-4-


Costs of Packing and Selling, 1957-58

The total cost of packing and selling oranges, grapefruit and tangerines for

the 1957-58 season are given in Table 1. No detail of cost is shown here since the

more important containers are treated in detail in subsequent tables.

The 1-3/5 bushel wirebound box was the most important container used in 1957-58

from the standpoint of volume. Fourty-four percent of the packed oranges and 43 per-

cent of the grapefruit were placed in this package. The 4/5 bushel boxes, including

the fiberboard and the various wirAbounds, were used for 40 percent of the packed

oranges and 42 percent of t0e. grcpofruit. Almost a!l of the pocked tangerrines were

placed in 4/5 bushel boxes.

Itemized costs of packing and selling oranges, grapefruit and tangerines for the

1957-58 season are given in Tables 2, 3 and 4. These tables show the weighted average

costs for the major expense items 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.

Costs of handling cannery fruit direct-from-grove, and packed-fruit-purchased

also are shown in Table 4. These operations are not separated by kind of fruit, but

represent a mixture of all kinds.

None of the containers shown were packed by all of the 42 houses in the sample.

Thus, the costs shown for any container are averages of the group of firms packing that

container. Since this grouping of houses changes with each container, some of the

differences in costs between various packs are due to variations in the sample. This.








-5-


can be illustrated by comparing the container cost of the 1-3/5 wirebound box for

oranges and grapefruit (Tables 2 and 3). For oranges 34 houses had an ao.eroge con-

tainer cost of $0.3843 and for grapefruit 36 houses had a cost of $0.3893, yet the

container was identical for each type of fruit, Other items of cost show sirrllar vari-

ations. The average costs shown in each ccatgory are weighted averages of the packing-

houses included, i.e., the total money cost of each item for all houses is divided by

the total number of boxes packed. The use of weighted averages in this summary tends

to fix the co:s of poaking and selling somewhat lower than the sir:ple average. This is

true because the larger houses, which usually have lower costs, have more effect on the

average than smaller houses. For example, the simple average cost of packing and

selling oranges in the 1-3/5 bushel wirebound box by 34 firms was $1,151, or 3-1/2

cents higher than the weighted average of $1.116 as shown in Table 2. Twenty-one

firms had total costs higher than the weighted average, and 13 had lower costs.

The cost of selling as shown in Tables 2, 3 and 4 includes only the expense of

the firm's own sales department or scues organization. Brokerage, commission and

auction charges are not included. Data were obtained when possible on the cost of

brokerage, but this cost was available for a smaller number of firms than were the other

handling costs. Brokerage cost on about half of the total sample of packed fruit averaged

$0.0876 per box, This cost may be added to the selling cost given in Tables 2, and 4

if desired, but it is derived from a different sample and may not be as representative.

Brokerage costs were higher than the average given but were not incurred on all

fruit sold.






-6-


Table 1 .--Volume of Citrus Fruit Handled, by Type of Container, and Total Packing
and Selling Cost, 42 Packinghouses, 1957-58

: Number: Volume (1-3/5 bu. equiv.): Total
Container : of : Average : packing and
SFirms : Total : Per Firm : selling cost per box
. _% Ii i Ig N I I I] I


Oranges:
1-3/5 bu. wirebound box 34
4/5 bu. wirebound box 17
4/5 bu. fiberboard carton 39
Half size wirebound box
(4/5 bu.) 30
5-lb. mesh bag 28
4/5 bu. wirebound flat box 20
Bulk in truck 15
8-lb. mesh bag 29
5-1b. bags in master container 18
Half size wirebound, export 7
1-3/5 bu. standard box 14
1-3/5 bu. wirebound. box,
export 4
Bulk in field box 5
1/4 box mesh bag 20
8-lb. bags in master container 13
Miscellaneous containers* .
Total packed oranges
Groap.efruit "
1-3/5 bu. wirebound box 36
4/5 bu. wirebound box 12
4/5 bu. fiberboard box 39
Half size wirebound box
(4/5 bu.) 28
8-lb. mesh bag 27
5-lb. mesh bag 26
1-3/5 bu, standard box 17
Bulk in truck 13
5-lb. bags in master container 20
4/5 bu. wirebound box,
export 6
Bulk in field box 6
8-lb. bags in master container 11
1-3/5 bu. wirebound box,export 3
Miscellaneous containers* ..
Total packed grapefruit


2,737,838
841,172
698,589

613,777
282,909
245,616
230,921
218,716
125,066
79,842
26,864

26,299
16,073
14,586
11,916
36,645


2,192,366
949,569
894,887

282,554
191,970
191,403
139,720
81,970
57,205

30,580
19,373
13,900
13,631
20,178
--9a0


80,525
49,481
17,913

20,459
10, 104
12,281
15,395
7,542
6,948
11,406
1,919

6,575
3,215
729
917
e..


60,889
79,131
22,946

10,091
7,110
7,362
8, 219
6,305
2,860

5,097
3,229
1,264
4,544
##


$1.1164
1.4914
1.2150

1.4069
1.6464
1.5441
.6833
1.3644
2.0222
1.5121
1.6053

1.3581
.6551
1.2149
1.8784
...


1.0077
1.3256
1.1057

1.2539
1.3089
1.5805
1.2955
.6159
1.9380

1.3765
.5313
1.7836
1.3190
S. 0


Includes 4/5 bu. standard box, halfstrap, half box bags, 5-lb, polyethylene
bag with master container, bushel baskets, and for grapefruit, 1/4 box bags.







-7-


Table 1 .--Volume of Citrus Fruit Handled, by Type of Container, and Total Packing
and Selling Cost, 42 Packinghouses, 1957-58--Continued

:Number:Volume (1-3/5 bu. equiv.): Total
Container : of : : Average : packing and
: Firms: Total : Per Firm : selling cost per box

Tangerines:
4/5 bu. wirebound box 16 208,359 13,022 $1,6506
4/5 bu. wirebound flat box 19 186,975 9,841 1.6277
Half size wirebound
(4/5 bu.) 5 9,766 1,953 1.4840
Bulk in truck 7 4,306 615 .7206
Miscel:laeous containers* .. 4,631 *.. *..
Total packed tangerines 4,037

TOTAL PACKED FRUIT 11,700. 12.
Bulk fruit thru House to Cannery:
Oranges 42 3,546,258 84,435 $0.2087
Grapefruit 42 1,16,416 45,629 .1825
Tangerines 33 135,026 3,971 .2867
Total Bulk Thru House 5,57
Direct, Grove-to-Cannery 38 8,319,105 218,924 $0.0773
Packed Fruit Purchased 6 71,853 11,975 $0.0837

TOTAL VOLUME ALL FRUIT 25,688,830


*Miscellaneous containers include 1-3/5 bu. wirebound, 1-3/5 bu, standard,
4/5 bu. standard, 4/5 bu. fiberboard box, field box, 1/2 box bag, 1/4 box bag.








Table 2.--Average Costs of Packing and Selling Florida ORANGES per 1-3/5 Bushel
Equivalent, by Type of Container, 42 Packinghouses, 1957-58.

:1-3/5 bu.:1-3/5 bu.:1-3/5 bu.: Half size: 4/5 bu. : 4/5 bu.
Type of Container : standard :wirebound:wirebound:wirebound:wirebound:wirebound
: b6x : box : export :(4/5bu,) box : flat box
il ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ '- qilll IlIl__ liii ll


Number of Packinghouses 14
Average volume packed
(1-3/5 bu. equiv.) 1,919
Costs per 1-3/5 bushel:
Containers $0.6163
Other materials .0886
Total materials $0.7049
Labor:
Receive, truck, dump $0.0530
Cratemaking, labeling .0452
Foremen, graders, others .1124
Wrap and pack .1362
Truck,check,load .0662
Payroll taxes, comp. ins. .0312
Total labor $0.442
Othe- direct operating:
Power, lights, water $0.0236
Repairs-bldgs., auip. .0584
Misc. supplies and exp. .0171
Total other direct T00991
Indirect operating:
Insurance, fire and cas$0.0105
Taxes and licenses .0231
Depreciation .0764
Rent .0001
Total indirect $"W'.1ST
Total packing expense $1.3583
Administrative 0.0801
Selling .0562
Other items .1107
Total Packing and Selling$1.6053


34 4 30 17 20

80,525 6,575 20,459 49,481 12,281

$0.3843 $0,6123 $0.5753 $0,6185 $0.5819
.0169 .0671 .0312 .0298 .0663
$0.4012 $0.6794 $0.6065 $o06483 $0.6482.


$0.0320
.0374
.0687
.0733
.0497
.0222
$0,28337


$0.0303
.0376
.0658
.0704
.0521
.0238
$0.2800


$0.0358
.0613
.0732
.0993
.0670
.0254
$0.3610


$0.0366
.0579
.0983
.1157
.0573
.0266
$0t.39244


$0.0406
.0726
.0789
.0998
.1053
.0292
$0.4264


$0.0153 $0.0138 $0.0157 $0.0157 $0.0170
.0526 .0331 .0609 .0424 .0718
.0120 .0114 .0114 .0100 .0109
$0,0799$ .,7583 $0.0880 I$070681 0. ..0997

$0.0121 $ .0061 $0.0127 $0.0123 $0.0112
.0115 .0089 .0100 .0128 .0094
.0303 .0400 .0355 .0522 .0333
.0058 .0262 .0023 .0046 .0047
"T0.o597 $0.0812 $0.0605 O -0819 OTU
$0.8241 $1.0989 $1.1160 $1.1907 $1.2329
0.0653 0.0637 0.0682 0.0738 0.0641
.0718 .0683 .0731 .0609 .0824
.1552 .1272 .1496 .1660 .1647
$1.1164 $1.3581 $1.4069 $1.4914 $1.5441


oAdministrative expense includes management and office salaries, office expense,
auto and travel, interest, telephone and telegraph.
bSelling includes sales salaries, travel, telephone and telegraph but excludes
brokerage, commission and auction charges.
COther items include Florida citrus advertising tax, Federal-State inspection and
testing, Growers Administrative Committee and Florida Citrus Mutual assessments,
degreening, pre-cooling, color-add and wax.


II


I


-8-





-9-


Table 2.--Average Costs of Packing and Selling Florida ORANGES per 1-3/5 Bushel
Equivalent, by Type of Container, 42 Packinghouses, 1957-58--Continued.

: 4/5 bu. : 8-lb. : 5-lb.: 5-lb. bag: : Bulk thru
Type of Container : fiberboard : mesh : mesh : in master : Bulk : house to
box bag bag pcontaojer ses cnner


Number of Packinghouses
Average volume packed
(1-3/5 bu. equiv.)
Costs per 1-3/5 bushel:
Containers
Other materials
Total materials
Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, comp. ins.
Total labor
Other direct operating:
Power, lights, water
Repairs-bldgs., equip.
Misc. supplies and exp.
Total other direct
Indirect operating:
Insurance, fire and cas.
Taxes and licenses
Depreciation
Rent
Total indirect
Total Packing Expense
Administrative
Selling
Other items
Total Packing and Selling


39 29 28 18 15 42

17,913 7,542 10,104 6,948 15,395 84,435

$0.3932 $0.5636 $0.7706 $1.1784 $ ... $ ...
.0094 .0088 .0090 .0161 0.0013 ...
$0.4026 $0,5724 $05.7796 $1T.945 $0-.003 $ .,,

$0.0338 $0.0389 $0.0415 $0.0364 $0.0318 $0.0302
.0583 .0059 .0088 .0382 .0101 ...
.0851 .1047 .1158 .0938 .0C24 .0350
.0898 .1108 .1377 .1349 .0563 .0004
.0704 .0792 .0895 .0885 .0337 .0045
.0238 .0268 .0291 .0292 .0180 .0072
"$0i362 $0.3663 $0.4224 $0.-4210 $0.232323 $0.0773

$0,0156 $0.0180 $0.0191 $0.0169 $0.0129 $0.0052
.0598 .0667 .0664 .0629 .0482 .0293
.0107 .0099 .0115 .0108 .0082 .0043
$0.0861 $0.0946 $oT.0970 $0.0906 $0.0693 $0 0388

$0.0139 $ .0099 $ .0124 $ .0117 $0.0130 $ .0061
.0113 .0096 .0104 .0102 .0108 .0047
.0349 .0300 .0332 .0279 .0274 .0137
.0039 .0095 .0089 .0081 .0021 .0012
$0.0640 $0.0590 $0.0649 $0.0579 $0.0533 $07.257
$0.9139 $1.0923 $1.3639 $1.7640 $0.3562 $0.1418
0.0658 0.0632 0.0686 0.0573 0.0685 0.0585
.0769 .0681 .0704 .0597 .0790 .
.1584 .1408 .1435 .1412 0.1796 .0084
$1,2150 $1.3644 $1,6464 $2.0222 $0.6833 $0.2087


aAdministrative expense includes management and office salaries, office expense,
auto and travel, interest, telephone and telegraph.
bSelling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges.
cOther items include Florida citrus advertising tax, Federal-State inspection and
testing, Growers Administrative Committee and Florida Citrus Mutual assessments,
degreening, pre-cooling, color-add and wax.






- 10-


Table 3.--Average Costs of Packing and Selling Florida GRAPEFRUIT per 1-3/5 Bushel
Equivalent, by Type of Container, 42 Packinghouses; 1957-58.

:1-3/5bu.: 1-3/5bu.: Half size : 4/5 bu. : 4/5bu..
Type of Container : standard : wirebound: wirebound : wirebound: fiberboard
: box : box : (4/5 bu,) : box : box


Number of Packinghouses
Average volume packed
(1-3/5 bu. equiv.)
Costs per 1-3/5 bushel:
Containers
Other materials
Total materials
Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, camp. ins.
Total labor
Other direct operating:
Power, lights, water
Repairs-bldgs., equip.
Misc. supplies and exp.
Total other direct
Indirect operating;
Insurance, fire and cas.
Taxes and licenses
Depreciation
Rent
Total indirect
Total Packing Expense
Administrativea
Sellingb
Other items
total Pcbktii and Selling


17 36 28 12 39

8,219 60,899 10,091 79, 131 22,946

$0.5765 $0.3893 $0.5860 $0.6249 $0.4487
.0967 .0162 .0266 .0268 .0080
$ .6732 $ .4055 $ .6126 $ .6517 $ .4567

$0.0301 $0.0275 $0.0296 $0.0314 $0.0287
.0290 .0374 .0562 .0499 .0513
.0665 .0473 .0514 .0640 .0564
.0864 .0576 .0741 .0826 .0753
.0280 .0448 .0511 .0449 .0472
.0174 .0196 .0194 .0190 .0187
$0.2574 $0.2342 $0.2818 _$0.2908 "$0.2776

$0.0103 $0.0120 $0.0109 $0.0089 $0.0102
.0377 .0421 .0430 .0273 .0391
.0096 .0103 .0089 .0095 .0099
$0-,0576 $0.0644 $0.0628 $0.0457 $0.0592"


$0.0067
.0104
.0278

$0,0449
$1,0331
.0570
.0492
.1562
$1.2955


$0.0082
.0077
.0262
.0065
$0.0486
$0.7527
.0599
.0633
.1318
$1.0077


$0.0067
.0062
.0237
.0024
$0.0390
$0.9962
.0642
.0595
.1340
$1.2539


$0.0083
.0105
.0302
.0012
$0.0502
$1.0384
.0551
.0481
.1840
$1.3256


$0.0082
.0068
.0226
.0041
$0.041 7
$0.8352
.0602
.0620
.1483
$1.1057


aAdministrative expense includes management and office salaries, office expense,
auto and travel, interest, telephone and telegraph.
bSelling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges.
COther items include Florida citrus advertising tax, Federal-State inspection and
testing, Growers Administrative Committee and Florida Citrus Mutual assessments,
degreening, pre-cooling, color-add and wax.


~IN~ __Y~C __ ___ __
__ ___ _~ 1 ___ _~ I___ __ ____ __ ~__ _____


______


il


*


L: L






-11 -


Table 3.--Average Costs of Packing and Selling Florida GRAPEFRUIT per 1-3/5 Bushel
Equivalent, by Type of Container, 42 Packinghouses, 1957-58--Continued.

S 8-lb. : 5-lb. : 5-lb. bag: : Bulk thru
Type of Container : mesh : mesh : in master : Bulk : house to
: bag : bag : container : sales : cannery


Number of Packinghouses
Average volume packed
(1-3/5 bu. equiv.)
Costs per 1-3/5 bushel:
Containers
Other materials
Total materials
Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, camp. ins.
Total labor
Other direct operating:
Power, lights, water
Repairs-bldgs., equip.
Misc. supplies and exp.
Total other direct
Indirect operating:
Insurance, fire and cas.
Taxes and licenses
Depreciation
Rent
Total indirect
Total Packing Expense
Administrative
Sellingb
Other items
Total Packing and Selling


27 26 20 13 42

7,110 7,362 2,860 6,305 45,629

$0.5748 $0.7689 $1.1504 $ ... $ ...
.00o4 .0070 .0217 .0008
$0.5832 $0.7759 $1.1721 $0.0008 $ ...$

$0.0386 $0.0434 $0.0371 $0.0293 $0.0230
.0052 .0063 .0408 .0045 .
.0934 .1094 .0943 .0615 .0285
.0988 .1187 .1198 .0653 .0008
.0768 .1021 .0715 .0260 .0034
.0232 .0268 .0293 .0136 .0065
$0.3360 $0,4067 $0.3928 $0.2002 $0.0622

$0.0168 $0.0196 $0.0159 $0.0067 $0.0047
.0608 .0611 .0595 .0264 .0263
.0100 .0125 .0108 .0045 .0041
UM.0876 $0.0932 $0.0862 $0.0375 $0.0351-


$0.0067
.0082
.0302
.0073
$50.o524'
$1.0592
.0591
.0611
.1295
$1.3089


$0.0077
.0076
.0278
.0134
$o.0565
$1.3323
.0642
.0590
.1250
$1.5805


$0.0073
.0099
.0316
.0053
$0.0541
$1.7052
.0520
.0519
.1289
$1.9380


$0.0097
.0072
.0116
.0026
$0.T 1
$0.2697
.0535
.0561
.2366
$0.6159


$0.0050
.0038
.0125
.0016
$0.0229
$0.1202
.0542
*.t
.0081
$0.1825


aAdministrative expense includes management and office salaries, office expense,
auto and travel, interest, telephone and telegraph.
bSelling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges.
COther items include Florida citrus advertising tax, Federal-State inspection and
testing, Growers Administrative Committee and Florida Citrus Mutual assessments,
degreening, pre-cooling, color-add and wax.


"


- iL


0


I,


I


II I


--e ~-se -




- 12-


Table 4.--Average Costs of Packing and Selling Florida TANGERINES, GROVE-TO-
CANNERY-FRUIT and PACKED-FRUIT-PURCHASED, per 1-3/5 Bushel"
Equivalent, 42 Packinghouses, 1957-58.

Tangerines All types of fruit
Type of Container : 4/5 bu : 4/5 bu. : Bulk thru : Direct : Packed fruit
: wirebound: wirebound : house to : grove to : purchased
S box : flat : cannery : cannery :
ii ... .. . c III III I I I I I i im ..


Number of Packinghouses
Average volume packed
(1-3/5 bu. equiv.)
Costs per 1-3/5 bushel;
Containers
Other materials
Total materials
Labor: '--
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, comp. ins.
Total labor
Other direct operating:
Power, lights, water
Repairs-bldgs.,eBp t :
Misc. supplies and exp.
Total other direct
Indirect operating:
Insurance, fire and cas.
Taxes and licenses
Depreciation
Rent
Total indirect
Total Packing Expense
Administrativea
Selling
Other items
Total Packing and Selling


16 19 33 38 6

13,022 9,841 3,971 218,924 11,975

$0.5916 $0.6095 $ ... $ ... $ .
.0469 .0419 ... ... 0.0004
S0.6385 $0.6514 $ ... $ ... $0.C004

$0.0473 $0.0426 $0.0392 $0.0015 $ ...
.0632 .0696 ... ... ...
.1293 .1117 .0586 .0005 .0007
.1412 .1242 ... ... ..
.0983 .0839 .0094 ... .0204
.0382 .0352 .0119 .0001 .0017
$0.5175 $0.4672 $0.1191 $0.0021 $0.0228

$0.0303 $0.0230 $0.0088 $ ... $0.0003
.0725 .0947 .0479 .0054 ...
.0246 .0099 .0074 ... ...
$0.1274 $0.1276 $0.0641 $0.0054 $0.0003

$0.0200 $0.0203 $0.0106 $0.0003 $0.0004
,,0204 .0112 .0073 .0002 .0002
.0547 .0389 .0186 .0016 .0005
.0100 .0045 .0009 .0001 *
$0.1051 $0.0749 $0.0374 $0.0022 $0.001
$1.3885 $1.3211 $0.2206 $0.0097 $0.0246
.0659 .0679 .0586 .0617 .0536
.0625 .0851 ... ... .0026
.1337 .1536 .0075 .0059 .0029
$1.6506 $1.6277 $0.2867 $0.0773 $0.0837


oAdministrative expense includes management
auto and travel, interest, telephone and telegraph.


and office salaries, office expense,


bSelling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges.
COther items include Florida citrus advertising tax, Federal-State inspection and
testing, Growers Administrative Committee and Florida Citrus Mutual assessments,
degreening, pre-cooling, color-add and wax.


. .. r II


- I- --







- 13-


The cost of commission and auction charges on sales of citrus fruits was not obtained.

These costs are usually deducted before entering the net proceeds of the sale on the books

and can be obtained, in most instances, only by analyzing the account sales or invoices

on each lot of fruit sold.

Oranges.--The average cost of packing and selling oranges in the 1-3/5 bushel

standard nailed box was $1.61 (Table 2). Materials, which included the box, fruit

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

for $0.44 per box.

The average cost per box for packing and selling oranges in the 1-3/5 bushel

wirebound box was $1.12. The two major expense items, materials and labor, accounted

for 61 percent of the total cost. Materials expense, which included the wirebound crate,

liner and label, averaged $0.40 per box. The average labor expense was $0.28. Costs

for the 1-3/5 bushel wirebound export box averaged $1.36 for packing and selling. The

higher cost for the export box was due to materials which amounted to $0.68, or 69 per-

cent more than the domestic package.

The cost per 1.3/5 bushel box equivalent for oranges packed in the half size

wirebound box was $1.41, and in the 4/5 bushel wirebound boxes, $1.49. Packing

and selling costs for the 4/5 bushel wirebound flat were $1.54, and for the 4/5 bushel

fiberboard box, $1.22. Oranges packed in£ mesh bags averaged $1.36 to pack

and sell, and 5 pound mesh bags cost $1.65. Both materials and labor costs were more

per 1-3/5 bushel equivalent for the smaller bag.

The most expensive pack for oranges in common use in 1957-58 was the 5 pound

mesh bag in master containers. Since it required two types of containers it had the







-14-


highest materials cost, and also a high labor cost. The average cost of packing and

selling this pack was $2.02 per 1-3/5 bushel equivalent.

The average cost of packing and selling oranges loaded bulk-in-truck was $0.68

per 1-3/5 bushel equivalent. This classification represented oranges sold loose in

interstate trade, in general, oranges sold in bulk passed through all the packing oper-

ations 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-truck is being handled the workers in the box-supply and truck, check, and

load sections are not fully employed. 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 may not earn this minimum on a piece-rate basis. Therefore, some houses have

made a special charge for this service,

Bulk oranges thru-house-to-cannery (eliminations) averaged $0.21 per box.

However, there was considerable variation in practices among the houses in assigning

costs to this class of fruit.

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

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

grapefruit was $1.30 for the 1-3/5 bushel standard box, 72 percent of which was

materials and labor. Packing and selling costs were $1.01 for the 1-3/5 wirebound box;






-15-


$1.25 for the half size wirebound box; $1.33 for the 4/5 bushel wirebound box; $1.11

for the 4/5 bushel fiberboard box; $1.31 for the 8 pound mesh bag; $1.58 for the

5 pound mesh bag; $1.94 for the 5 pound bag in master container and $0.62 for

grapefruit sold bulk-in-truck. Bulk grapefruit thru-house-to-cannery (eliminations)

averaged $0.18 per box.

Tangerines.--The season average costs of packing and selling tangerines are

shown in Table 4. The 4/5 bushel wirebound box and the 4/5 bushel wirebound flat

were the two containers in common use in 1957-58. The 1-3/5 bushel equivalent

cost for packing and selling tangerines in the 4/5 bushel wirebound box was $1.65

and in the 4/5 bushel wirebound flat box, $1.63.

As with oranges and grapefruit, materials and labor were the largest expense

items. The cost of the materials, which includes the crate, liner and label was about

40 percent of the total cost, and labor was approximately 30 percent. Bulk tangerines

thru-house-to-cannery averaged $0.29 per box.

Direct Grove-to-Cannery Fruit and Packed-Fruit-Purchased.--Fruit going direct

from the grove to the cannery averaged only $0.0773 per box of the packinghouse

expenses (Table 4). There were no materials or packinghouse labor involved, except

that two firms had supervisory personnel for this operation on the packinghouse payroll,

and a small amount of receiving and trucking labor.

The cost of handling pack-fruit-purchased averaged $0.0837 per box. Some

handling labor was required, and a portion of some of the other operating costs

was charged.







-16-


Variations in Packing and Selling Cost Among Firms


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

1-3/5 bushel equivalent 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 six types of containers in Table 5. For the 34 firms packing oranges in 1-3/5 bushel

wirebound boxes, the total packing and selling costs ranged from $0.92 to $1.36 per

box, with 27 firms falling within the range of $1.00 to $1.24. Thirty-nine firms

packing 4/5 bushel fiberboard boxes had costs between $0.95 and $1.55, with 26 in

the range of $1 .10 to $1.34. Costs for the half size wirebound box (4/5 bu.) varied

from $1.16 to $1.55 per 1-3/5 bushel equivalent, with costs for 20 of the 30 firms

within the range of $1.30 to $1.54. For 4/5 bushel wirebound boxes the range in

cost was from $1.30 to $1.81 per box with 11 of the 17 firms within the range of

$1.35 to $1.54.

Packing and selling costs of oranges in 8 pound mesh bags fell between $1.16

and $1.71 for 29 packinghouses, of which 20 had costs between $1.30 and $1.59.

For 5 pound mesh bags the average total packing and selling costs ranged from $1.42

to $2.08 for 28 firms of which 18 ranged from $1.50 to $1.79.

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

in packing and selling costs. The range for the 34 firms handling 1-3/5 bushel wire-

bound boxes of oranges was from $0,70 to $1.05. The packing cost for 23 of these

firms ranged from $0.75 to $0.94. The variation in the cost of packing oranges in

4/5 bushel fiberboard boxes for 39 firms ranged from $0.75 to $1.23, and for 30 of






-17-


these firms between $0.80 and $1.09. Thirty houses packing half size wirebound boxes

(4/5 bu.) had costs varying from $0.97 to $1.40 per box with 22 firms between $1.00

and $1.24. Seventeen firms packing in the 4/5 bushel wirebound had costs from $1.02

to $1.55 per box, with 11 firms having packing costs between $1.10 and $1.29.

The spread in packing cost for 8 pound mesh bags for 29 firms was between $0.94

and $1.44 with 22 firms included within the cost interval of $0,95 to $1.29. For the

28 firms packing oranges in 5 pound mesh bags the packing cost ranged from $1.19 to

$1.84 and 20 of these firms had costs between $1.20 and $1.54 per box.

Grapefruit.--The range in grapefruit packing and selling costs among the

different firms was not as great as in oranges. The 36 firms using 1-3/5 bushel wire-

bound boxes varied between $0.88 and $1.19 for packing and selling each box, as

shown by data in Table 6. Of these firms, 28 had costs between $0.90 and $1.09.

For the half size wirebound box (4/5 bu.) 28 firms had total packing and selling costs

ranging between $1,08 and $1.53. Of these, 22 had costs from $1.15 to $1.39.
Twelve firms using the 4/5 bushel wirebound box had costs ranging from $1.15 to

$1.41 per box with 8 firms between $1.20 and $1.34. For the 4/5 bushel fiberboard

box 39 houses had costs ranging from $0.87 to $1.31 per box with 32 of these between
$1.00 and $1.24.

The packing and selling costs for grapefruit in 8 pound mesh bags were from

$1.15 to $1.62 for 27 firms, with 19 firms between $1.15 and $1.34. For 5 pound

mesh bags, 26 firms ranged from $1.37 to $2.02, with 17 firms falling between

$1,40 rnd-$1,59 per 1-3/5 bushel equivalent.








-18-


Packing costs only for grapefruit in 1-3/5 bushel wirebound boxes for 36 firms

varied from $0,62 to $0,90. Twenty-seven of these firms ranged between $0.65 and

$0.84. Twenty-eight packinghouses had packing costs ranging from $0.88 to $1.22

for half size wirebound boxes (4/5 bu.), with 21 of these firms ranging from $0.90 to

$1.09. The 12 firms packing the 4/5 bushel wirebound box were within the cost

range of $0.90 and $1,09, with 9 of the firms falling between $1.00 and $1.09.

Packing costs for the 4/5 bushel fiberboard box varied from $0.70 to $1.04 per box

for 39 firms, with 32 between $0.70 and $0.94.

The cost of packing in 8 pound mesh bags for 27 firms ranged from $0.87 to

$1.38 per box, with 18 houses between $0.90 and $1.09. Variation in cost for

the 26 firms packing grapefruit in 5 pound mesh bags ranged from $1.11 to $1.79.

Costs for 15 houses fell within the range of $1.15 to $1.34

Tangerines.--Packing and selling costs for 4/5 wirebound boxes ranged from

$1.39 to $2.00 per 1-3/5 bushel equivalent for 16 firms, and for 4/5 bushel wire-

bound flat boxes from $1.39 to $1.95 for 19 firms, Table 7.

The costs of packing only for tangerines per 1-3/5 bushel equivalent varied

from $1.10 to $1.75 for 4/5 bushel wirebound boxes and from $1.11 to $1.67 for

4/5 bushel wirebound flat boxes.




-19-


Table 5.-Variation in the Cost per 1-3/5 Bushel Box Equivalent of Packing and Selling
Florida ORANGES by Type of Container, 42 Packinghouses, 1957-58.

: 1-3/5bu : 4/5 bu. : Holf size : 4/5bu. : 8-lb. : 5-lb.
Cost per : wirebound : fiberboard : wirebound :wirebound t mesh : mesh
1- bushel : box : box (4/5bu.) : box i bag : bag

C-----------.I Number of Packingheous-s---------------
Packing and Selling
Under $1,00 2 1 .. ..
$1.00- 1.04 4 .
1.05- 1,09 5 3 ... .
1.10- 1.14 5 5 ,.
1.15- 1.19 6 4 1 w. 1
1.20- 1.24 7 5 .. .. 2
1.25- 1.29 4 5 3 .. 1
1.30- 1.34 .. 7 5 2 5
1.35- 1.39 1 4 4 3 5
1.40- 1.44 .. 3 3 2 3 2
1.45- 1.49 .. .. 3 3 2 ..
1.50- 1.54 .. 2 5 3 3 2
1.55- 1.59 .. .. 2 .. 2 5
1.60- 1.64 .. .. 3 2 1 5
1.65- 1.69 ., ,. 1 1 3 3
1.70- 1.74 .. .. .. .. 1 2
1.75- 1.79 .... .. .. 1
1.80- 1.84 .. .. 1 .. 1
1.85- 1.89 .* .. .. .. 1
1.90.and over .. ., .. 6
Total number %,f firms 34 39 30 17 29 28
Packing
Under $0.70 1 .. .
$0.70- 0.74 4 .. .. ..
0.75- 0.79 7 2 .. .. .
0.80- 0.84 5 7 .. ..
0.85- 0.89 5 4 ..
0.90- 0.94 6 8 .. .. 1
0.95- 0.99 5 6 2 .. 4
1.00- 1.04 .. 3 6 1 5
1.05- 1.09 1 2 4 2 3
1.10- 1,14 .. 3 7 3 4
1.15- 1.,9 .. 2 2 5 3 2
1.20- 1,24 .. 2 3 ., 1 4
1.2r- 1.29 .. .. 3 3 2 2
1.30- 1.34 .. .. 1 .. 4 6
1.35- 1.39 .. 2 2 .. 3
1.40- 1.44 .. .. .. .. 2 2
1.45- 1.49 .. .. .. 1
1.50 and over .. i ,. 8
Total number of firms 34 39 30 17 J9 28






- 20-


Table 6.--Variation in the Cost per 1-3/5 Bushel Box Equivalent of Packing and Selling
Florida GRAPEFRUIT by Type of Container, 42 Packinghouses, 1957-58.

: 1-3/5 bu.: Haif size : 4/5 bu. : 4/5 bu. : 8-lb. : 5-b.
Cost per : wirebound: wirebound : wirebound: fiberboard : mesh mesh
1-3/5 bushel box : (4/5 bu.) : box box : bg : brg

---------------- Number of Packinghouses---.....----.
Packing and S-e'ing
$0.85- $0.89 2 .. .. 1
0.90- 0.94 4 ., .. 1 .
0.95- 0.99 9 .. .. 2 .
1.00- 1.04 4 .. .. 7 .
1,05- 1.09 11 1 .. 6 .. .,
1.10- 1.14 4 .. 5 .,
1.15- 1.19 2 5 1 9 5 ..
1.20- 1.24 .. 3 2 5 6
1.25- 1.29 .. 5 3 1 5 .
1.30- 1.34 .. 7 3 2 3 .
1.35- 1.39 .. 2 1 .. 2 1
1.40- 1.44 .. 1 2 .. .. 6
1.45- 1.49 .. 3 ., .. 2 4
1.50- 1.54 .. 1 .. .. 4
1.55- 159 .. .. .. .. 1 3
1.60- 1.64 .. 3 1
1.65- 1.69 .. .. .. ** ** **
1.70- 1.74 .. .. 1
1.75 and over ... 6
Total number of firms 36 28 12 39 27 26
Packing
$0.60- $0.64 4 ..
0.65- 0.69 5 .. 1
0.70- 0.74 8 .. .. 7 .. ..
0.75- 0.79 8 .. .. ..
0.80- 0.84 6 .. ..8
0.85- 0.89 4 2 .. 6 3
0.90- 0.94 1 6 1 6 5 ..
0.95- 0.99 .. 3 2 5 5
1.00- 1.04 .. 5 3 1 5
1,05- 1.09 .. 7 6 .. 1
1.10- 1.14 .. 1 .. .. 2 3
1.15- 1.19 .. 3 .. .. .. 3
1.20- 1.24 .. 1 .. .. 2 7
1.25- 1.29 ., .. ., 1 2
1.30- 1.34 .. .. .. 2 3
1.35- 1.39 .. .. .. 1 1
1.40- 1.44 .. .. .. .. 2
1.45 and over .. .. ... 5
Total number of firms 36 28 12 39 27 26






- 21 -


Table 7.--Variation in the Cost per 1-3/5 Bushel Box Equivalent of Packing and Selling
Florida TANGERINES by Type of Container, 42 Packinghouses, 1957-58.


Cost per 4/5 bushel 4/5 bushel
1-3/5 bushel : wirebound : wirebound flk'
: box : tox
---------------Number of Packinghouses -------------
Packing and SSgIing
$1.35- $1.39 1 1
1.40- 1.44 1 1
1.45- 1.49 1 2
1.50- 1.54 .. 3
1.55- 1.59 3
1.60- 1.64 2 2
1.65- 1.69 2 2
1.70- 1.74 1 2
1.75- 1,79 1 4
1.80 and over 4 2
Totcl number of firms 16 14

P.'cking
$1.10- $.14 1 3
.15- 1.19 2 1
1.20- 1.24 1 2
1.25- 1.29 .. 1
1.30- 1,34 1 3
1.35- 1.39 4 2
1.40- 1.44 1 2
1.45- ,49 1 1
1.50- 1,54 1 3
1,55 and over 4 1
Total number of firms 16 19







- 22-


Relationship of Seasonal Volume to Average
Cost of Packing and Selling

The data indicate that there is a relationship between the seasonal volume

handled by the individual house and the total packing and selling cost. In order to

investigate some of the firm variation in cost, an analysis was made of the relation-

ship between the size of the packinghouse, oased on the total volume of citrus per

season (packed and bulk-through-house), and the average total cost of packing and

selling. 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 700,000 boxes. The average total cost of packing and selling

oranges and grapefruit packed in the 1-3/5 bushel wirebound box was calculated

for each volume group and is shown in Tables 8 and 9. The average total packing

and selling cost also was calculated for each volume group of tangerines packed in

the 4/5 bushel wirebound flat box, Table 10. 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,

differences in cost favoring larger houses were less pronounced this season than in

previous years.

Packinghouses in the smallest volume group had costs for packing and selling

oranges in 1-3/5 bushel wirebour;d coxes of 6 cents more than the average for all

the houses. While those in the largest volume group had costs 6 cents less than the

average. For packing and selling grapefruit in 1-3/5 bushel wirebound boxes, houses

in the smallest volume group had costs about 4 cents per box more than the average of

all houses. Packinghouses in the largest volume group had costs of 4 cents less than the

average.






- 23 -


Table 8.--Costs of Packing and Selling Florida ORANGES in 1-3/5 Bushel Wirebound
Boxes, by Volume Groups, 34 Packinghouses, 1957-58.

Citrus fruit handled (boxes) : UIbdrt : 200,000- : 400,000-: 700,000 : Season avg.
: 200,000: 399,999 : 699,999 : and over : all volumes

Number of packinghouses 8 11 9 6 34
Average pack of oranges
(1-3/5 bu. equiv.) 21,665 43,869 120,532 166,195 80,525
Cost per 1-3/5 bushel:
Material $0.4131 $0.3983 $0.4022 $0.3996 $0.4012
Labor:
RLceive, truck, dump $0.0426 $0.0296 $0.0341 $0,0289 $0.0320
Cratemaking and labeling .0434 .0391 .0349 .0382 .0374
Foremen, graders, box
closer .0644 .0726 .0827 .0522 .0687
Wrap and pack .0708 .0722 .0739 .0735 .0733
Truck, check, load .0509 ,0464 ,0476 .0534 .0497
Payroll taxes, insurance .0182 .0233 .0244 .0203 .0222
Total labor $0.2903 0 0.832 $7296 $0.2665 0. 833
Other direct operating $0.1071 $0.0783 $0.0764 $0.0797 $0.0799
Indirect operating $0.0715 $0.0556 $0.0676 $0.0510 $0.0597
Total Packing $0.8820 $0.8154 $0.8438 $0.7968 $0.8241
Administrative $0.0673 $0.0767 $0.0716 $0.0526 $0.0653
Selling .0743 .0844 .0758 .0608 .0718
Other items .1521 .1660 .1597 .1457 .1552
Tofal Packing and
S e~in $1.1757 $1.1425 $1.1509 $1.0559 $1.1164
'"'~~ ~ ~ ~ : ,I .;' -' --,.J -- --., . __ -,,., - ,p,_ ,! ..
. - l L i i i i ll . . ..


aOther direct operating expense includes power, lights and
buildings and equipment, and miscellaneous supplies.


water, repair of


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







- 24-


Table 9.--Costs of Packing and Selling Florida GRAPEFRUIT in 1-3/5 Bushel Wirebound
Boxes, by Volume Groups, 36 Packinghouses, 1957-58.

Citrus fruit handled (boxes) : Under : 200000 -: 400,000 -: 700,000 : Season avg.
: 200,000 : 399,999 : 699,999 : and over : all volumes
-- .. .... -- -----
Number of Packinghouses 7 13 10 6 36
Average pack of grapefruit
(1-3/5 bu. equiv.) 18,094 41,370 57,436 158,924 60,899
Cost per 1-3/5 bushel:
Material $0.4193 $0.4024 $0.4077 $0.4040 $0.4055
Labor:
Receive, truck, dump $0.0416 $0.0250 $0.0307 $0.0251 $0.0275
Cratemaking and labeling ,0416 .0375 ,0356 .0380 .0374
Foremen, graders, box
closer .0437 .0493 .0577 .0403 .0473
Wrap and pack .0584 .0559 .0579 .0583 .0576
Truck, check, load .0403 .0403 .0458 .0475 .0448
Payroll taxes and insurance .0156 .0185 .01t6 ,0206 .0196
Total labor $0.2412 $0.2265 5$0.2473 $0.2298 $0.2342'
Other direct operatinga $0.0677 $0.0587 $0.0590 $0.0705 $0,0644
Indirect operatingb $0.0490 $0.0560 $0.0581 $0.0385 $0.0486
Total Packing $0.7772 $0.7436 $0.7721 $0.7428 $0.7527
Administrative $0.0641 $0.0677 $0.0740 $0.0465 $0.0599
Selling .0590 .0918 .0627 .0482 .0633
Other items .1460 .1288 .1370 .1286 .1318
Total Packing and
ellig $1.0463 $1.0319 $1.0458 $0.9661 $1.0077

aOther direct operating expense includes power, lights and water, repair of
buildings and equipment, and miscellaneous supplies.
bindirect operating expense includes fire and casualty insurance, taxes and
licenses, depreciation, and rent.
cOther items include Florida advertising tax, Federal-State inspection and
testing, Growers Administrative Committee and Florida Citrus Mutual assessments,
degreening, color-add and wax,







-25-


Table 10.--Cost of Packing and Selling Florida TANGERINES in 4/5 Bushel Wirebound
Flat Boxes by Volume Groups, 19 Packinghouses, 1957-58.

Citrus fruit handled (boxes) : Under : 200,000-: 400,000-: 700.000 : Season avg.
: 200,000 : 399,999 : 699,999 : and over : all volumes

Number of Packinghouses 5 7 4 3 19
Average pack of tangerines
(1-3/5 bu. equiv.) 6,018 7,386 10,398 21,198 9,841
Cost per 1-3/5 bushel:
Material $0.6686 $0.6778 $0.5824 $0.6669 $0.6514
Laber:
Receive, truck, dump $0.0450 $'0.0349 $0.0424 $0.0480 $0.0426
Cratemcking and labeling .0344 .0633 .0641 .0714 .0696
Foremen, graders, box
closer .0944 .1282 .1188 '.1018 .1117
Wrap and pack .1282 .1169 .1322 .1230 .1242
Truck, check, load .0595 .0913 .0610 .1042 .0839
Payroll taxes and insurance .0275 ,0399 0328 .03. 03 03252
Total labor $0.390 _14745 $04513' $0.4850 $0.4672-
Other direct operating $0.1804 $0.1471 $0,0983 $0.1060 $0.1276
Indirect operating $0.1130 $0.0989 $0.0561 $0.0497 $0.0749
Total Packing $1.4010 $ 13983 $1.1881 $1.3076 $1.3211
Administrative $0.1053 $0.0772 $0.0528 $0.0526 $0.0679
Selling .0753 .1220 .0750 .0663 .0851
Other items .1876 .1295 .1812 .1388 .1536
Total Packing and
Selli g $1.7692 $1.7270 $1.4971 $1.5653 $1.6277

aOther direct operating expense includes power, lights and water, repair of
buildings and equipment, and miscellaneous supplies,
bIndirect operating expense includes fire and casualty insurance, taxes and
licenses, depreciation, and rent.
Other items include Florida citrus advertising tax, Federal-State inspection and
testing, Growers Administrative Committee and Florida Citrus Mutual assessments,
degreening, color-add and wax.







- 26-


The two volume groups of houses between the smallest and largest had costs for

both oranges and grapefruit in 1-3/5 bushel wirebound boxes above the average of

all houses.

The relationship between total volume and cost is imperfect because there are

other important factors affecting costs. Some of these are length of season or number

of days operated, percent of house capacity used, and physical arrangement of house

and machinery which affect labor costs in particular. 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 infor-

motion on all these factors to account for the effect of each on costs.

Upon a more detailed study of the data, it was found that there were houses

that had high as well as low costs in all volume groups. This variation within groups

is shown in Table 11 and indicates that the larger volume groups contain more houses

with low 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 association with

economies of scale, or economies associated with work methods, or a combination

of both.







- 27-


Table 11 .--Volume of Fruit Handled and Variation in the Cost of Packing and Selling
Florida Citrus Fruit in Wirebound Boxes, 42 Packinghouses, 1957-58.

S Number of boxes handled (1-3/5 bu. equivalent)
Cost per 1-3/5 bushel : Under : 200, U00 : 40U0, U000 : -0, i0 : All
: 200,000 : 399,999 : 699,999 : and over : volumes

Oranges in 1-3/5 bu. wirebound boxes
------------------- Number of firms----........----------
$0.90 $0.99 .. .. .. 2 2
1.00- 1.09 1 4 3 1 9
1.10- 1.19 4 2 2 3 11
1.20- 1.29 2 5 4 .. 11
1 30 and over 1 .. .. ,. 1

Grapefruit in 1-3/5 bu. wirebound boxes

$0.80 $0,89 .. 1 .. 1 2
0.90- 0.99 1 5 5 2 13
1,00- 1.09 6 4 2 3 15
1.10 and over .. 3 3 .. 6

Tangerines in 4/5 bu. wirebound flat boxes

$1.30- $1.39 .. .. 1 .. 1
1.40- 1.49 .. 2 1 .. 3
1.50- 1.59 .. .. 1 2 3
1.60- 1.69 1 1 1 1 4
1.70- 1.79 3 3 .... 6
1.80 and over 1 1 .. .. 2







-28-


Trend in Packing and Selling Cost

The cost of packing and selling Florida citrus is increasing (Table 12). The

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

shown has increased during the past 10 seasons with minor fluctuations.

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

increased from $0.83 for the 1948-49 season to $1.12 for the 1957-58 season. The

decrease noted in 1954-55 was due to a reduction of container prices. A comparison

of the 10 seasons for oranges packed in 1-3/5 bushel standard nailed boxes shows an

increase from $1.16 to $1.61 per box; for 8 pound bags the cost increased from

$1.01 to $1.36 in 1957-58, with a slight decrease in 1955-56; and for 5 pound bags

the average total packing and selling cost changed from $1.18 to $1.65 during the

period.

The average total cost of packing and selling grapefruit in 1*3/5 bushel wire-

bound boxes increased from $0.74 in 1948-49 to $1.01.in 1957-58, excepting a

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

boxes increased in cost from $1.08 to $1.30. Cost per 1-3/5 bushel equivalent for

8 pound bags increased from $0.92 in 1948-49 to $1.31 in 1957-58, and for 5 pound

bags from $1.17 to $1.58.

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

tangerines increased during the 10~-yiar period from $1.19 to $1.65 for 4/5 bushel

wirebound boxes, and from $1.21 to $1.63 for 4/5 bushel wirebound flat boxes.





- 29-


Table 12.--Average Total Cost per 1-/35 Bushel Equivalent for Packing and Selling
Florida Citrus Sold for Fresh Consumption, 1948-49 through 1957-58a

: Type of Pack
Season : 1-3/5 bu. 1-3/5 bu. : b. : b.
:wirobound box : standard box : mesh bag : mesh bag
---------------Doi ars per 1-3/5 bu. equivalent-------------


1948-49
1949-50
1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58

1948-49
1949-50
1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58



1948-49
1949-50
1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58


aNumber
1948-49 73
1949-50 73


$0.8330
,8785
.9166
.9111
.9530
.9355
.8863
.9603
1.0068
1.1164


$0.7359
.8046
.8196
.8487
.8543
.8375
.7984
.8682
.9285
1.0077

4/5 bu.
wirebound box
$1.1916
1.2491
1.4250
1.3994
1.4417
1.3689
1.4266
1.4580
1.5456
1.6506


of houses included
1950-51 77
1951-52 67


Oranges
$1.1590
1.1368
1.2062
1.2526
1.2730
1,3735
1.3957
1.4472
1.5115
1.6053
Grapefruit


$1.0785
1.0257
1.0945
1.1907
1.1669
1,1871
1.2166
1.3038
1.3263
1.2955
Tangerines
4/5 bu.
wirebound flat
$1.2125
1.2555
1.3563
1.3589
1.4379
1.4373
1.4597
1.4725
1.5675
1.6277


in each of tie years:
1952-53 43
1953-54 43


$1.0052
1,0488
1.1490
1.1069
1.2067
1.2335
1.2609
1.2322
1.2639
1.3644


$0.9153
.9453
1.0849
1.0467
1.1231
1.1659
1.1891
1.1724
1.2188
1.3089


1954-55 43
1955-56 42


$1.1822
1.2580
1.4086
1.3444
1.4469
1.4597
1.5005
1.4967
1.5278
1.6464

$1.1736
1.2387
1.3201
1.2670
1.3233
1.3666
1.3964
1.4264
1.4730
1.5805


1956-57 43
1957-58 42


I




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