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 Table of Contents
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 Relationship of seasonal volume...
 Trend in packing and selling...
 Other mimeographed publications...














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/UF00027603/00011
 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: 1958-1959
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: VID00011
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, 1958-59
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
    Variations in packing and selling cost among firms
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
    Relationship of seasonal volume to average cost of packing and selling
        Page 21
    Trend in packing and selling cost
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
    Other mimeographed publications available on citrus costs
        Page 27
Full Text

FEBRUARY, 1960

O' "-,
/ .









COSTS


AGRICULTURAL ECONOMICS MIMEO REPORT NO. 60-10











OF PACKING AND SELLING


FLORIDA FRESH CITRUS FRUITS,

1958-59 SEASON





by

A. H. Spurlock and H. G. Hamilton


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


DEPARTMENT OF AGRICULTURAL ECONOMICS
FLORIDA AGRICULTURAL EXPERIMENT STATIONS
GAINESVILLE, FLORIDA


I:L


'P2












CONTENTS

Page

NATURE OF THE SAMPLE.,...r ....*.....*..~.. ..*..................... I

THE MEASUREMENT OF COSTS ... ........... ........................... 3

COSTS OF PACKING AND SELLING, 1958-59 ............................ 4

Oranges ,..,......,e,.,,.............*.*....,.......*.....*,,...*. 13

Grapefrvut **..........s*.....00... ..*.....*., ..*.... ........ 14

Tangerines ....,, .................*. ,........... **...*... ......... 14

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

VARIATIONS IN PACKING AND SELLING COSTAMONG FIRMS.............. 15

Oranges .,..............s..t........ o*,...,.,...........,.,. 15

Grapefruit .......,........,.......,*,o*.....,.......* .,.* ... 17

Tangerines ................ .................................... 18

RELATIONSHIP OF SEASONAL VOLUME TO AVERAGE COST OF PACKING
AND SELLING .............. ,.....0....... ... ....... 0 ......... 21

TREND IN PACKING AND SELLING COST................................ 22








COST OF PACKING AND SELLING FLORIDA
FRESH CITRUS FRUITS, 1958-591


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 11,970,101 boxes of

1-3/5 bushels each, or approximately 42 percent of the total pack of Florida fresh citrus

in 1958-59.2

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

packed primarily for commercial interstate trade. Geographic distribution of the houses and

availability of cost records were aiso considered. An attempt has been made to include the

same firms each year to prevent year-to-year cost fluctuations due to sample changes.

However, changes have been necessary and several new firms have been added to replace

those discontinued.

The packed volume of the 42 sample houses in 1958-59 ranged from 50,000 to 854,000

boxes of 1-3/5 bushel equivalent, and averaged 285,000 boxes. This was considerably larger

than the average packed volume of all citrus packinghouses in the State. These averaged

only about 161,000 packed boxes for 176 licensed and registered fresh fruit shippers.2 The

packed volume of the 42 sample houses showed an increase of 2.3 percent over the preceding

season, whereas packed volume in all houses in the State decreased by 3.3 percent.

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 1958-L9 Season Annual Report, Citrus and Vegetable
Inspection Division, Winter Haven, Florida.










During the period since the processing industry reached a point 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 packinghouses. In some cases,

however, the total volume controlled by the packinghouses 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 1958-59 the proportion of the total volume represented by packed fruit was as

follows:
Total volume Average volume Percent of
42 houses per house total volume
(1-3/5 bu. (1-3/5 bu.
boxes) boxes)
Packed fruit................. 11,970,101 285,002 43.2
Cannery fruit through house ... 6,117,955 145,666 22.1
Total through house....... 18,088,056 430,668 65.3
Direct from grove to cannery
and tree sales............. 9,602,233 228,625 34.6
Packed fruit purchased........ 30,787 733 .1

Total 27,721,076 660,026 100.0


Packed fruit represented 43.2 percent of the total volume. Lost season the packed

fruit was 45.5 percent of the total volume. The packout averaged 66.2 percent of the fruit

through the house in 1958-59 as compared with 67.6 percent for the preceding season. The

proportion of fruit going direct from grove to cannery increased to 34.6 percent of the total

fruit in 1958-59. The total volume of all fruit handled by the packinghouses increased by

about 8 percent from the preceding season.











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 33 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 the various

containers with ratios developed for this purpose by studying packing operations in a number

of packinghouses.3

There was some variation among accountants in method or formula for allocating costs.

Methods used to allocate materials cost, general and administrative and selling expenses were

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

various methods. In most of the packinghouses, a proportionate share of labor for receiving

and dumping, and often for grading, was allocated to the fruit graded out for canneries

(eliminations). Only 13 of the houses allocated any other class of labor to eliminated 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 is based on the ass o ;ition that the packinghouse expense incident to

handling the bulk fruit is incurred in order to get packed fruit.


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










Costs of Packing and Selling, 1958-59

The total costs of packing and selling oranges, grapefruit and tangerines for the

1958-59 season are given in Table 1 No itemized cost is shown here since the more impor-

tant containers are treated in detail in subsequent tables.

The number of sample houses using the various containers and the average number of

specified containers used per firm are also given in Table 1. The 42 houses prepared a total

of 53 different packs of fruit plus a mixed group of miscellaneous containers.

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

1958-59 from the standpoint of volume. For grapefruit, the 4/5 bushel fiberboard carton

led in number of equivalent boxes with the 1-3/5 bushel wirebound box next. The 4/5 bushel

boxes, including the fiberboard and the various wirebounds, were used for approximately

54 percent of both the packed oranges and grapefruit. Almost all of the packed tangerines

were placed in 4/5 bushel boxes.

Itemized costs of packing and selling oranges, grapefruit and tangerines for the 1958-59

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 finns packing each con-

tainer 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.






Table 1 .--Number of Firms, Volume of Citrus Fruit Handled and Total Packing and Selling
Cost by Type of Container, 42 Packinghouses, Florida, 1958-59


Oranges:
1-3/5 bu. wirebound box
Half Bruce (4/5 bu.) box
4/5 bu. fiberboard carton
4/5 bu. wirebound box
4/5 bu. wirebound flat box
5-lb. mesh bag
Bulk in truck
8-lb. mesh bag
5-lb. bag in master container
Bulk in field box
Half Bruce (4/5 bu.) box-export
1/4 box mesh bag
8-lb. bag in master container
1/2 box mesh bog
1-3/5 bu. standard box
5-lb. polyethylene bag in M.C.
Miscellaneous containers*
Total packed oranges
Grapefruit:
4/5 bu. fiberboard box
1-3/5 bu. wirebound box
Half Bruce (4/5 bu.) box
4/5 bu. wirebound box
8-lb. mesh bag
5-lb. mesh bag
Bulk in truck
5-lb. bags in master container
5-lb. polyethylene bag in M.C.
Half Bruce (4/5 bu.) box-export
Bulk in field box
8-lb. polyethylene bag in M.C.
8-lb. bag in mrbster container
1/2 box mesh bag
1-3/5 bu. standard box
1-3/5 bu. wirebound export
1/4 box mesh bag
4/5 bu. standard box
Miscellaneous containers*
Total packed grapefruit


1,607,753
1,148,169
813,671
659,648
389,472
278,733
248,728
176,356
173,735
58,407
50,936
32,423
12,998
9,507
3,736
2,649
7, 253
5,674,174

1,862,763
1,721,870
727,237
304,035
237,267
180,209
138,277
110,821
64,740
53,086
29,204
22,832
15,985
6,940
3,109
1,562
683
610
31,716
5,512,946


50,242
37,038
22,602
41,228
27,819
10,721
16,582
6,783
8,687
11,681
8,489
1,621
1,083
792
311
1,324
e t



47,763
52,178
25, 077
27,640
9, 886
6, 436
9,877
6,157
7,193
7,584
7,301
5,708
1,453
1,735
259
781
114
305
0


$1.0990
1.4430
1.2247
1.4879
1.5458
1.6682
0,6412
1.4086
2.0808
0.5738
1.6119
1.2506
1.7922
1.1048
1.3656
1.6668
.04



1.1305
0.9719
1.2790
1.3073
1.2972
1.6132
0.4958
1.8494
1.5835
1.3297
0.4448
1.4633
1.7676
0.9552
1.4926
1.0017
1.0056
2.1676
*


Includes for oranges: 1-3/5 bu. wirebound export, 4/5 bu. standard, bu. basket,
haofstrap; and for grapefruit: bu. basket, halfstrap, 5-lb. poly. bag, 8-lb. poly. bag,
1/2 bu, basket.









Table 1 .--Number of Firms, Volume of Citrus Fruit Handled and Total Packing and Selling
Cost by Type of Container, 42 Packinghouses, Florida, 1958-59--Continued


Tangerines:
4/5 bu. wirebound flat box
4/5 bu. wirebound box
Half Bruce (4/5 bu.) box
Bulk in truck
4/5 bu. fiberboard box
1-3/5 bu. wirehound box
Bulk in field box
Miscellaneous containers*
Total packed tangerines

Limes, Lemons, Kumquats:
Miscellaneous containers

TOTAL PACKED FRUIT

Bulk Fruit thru House to Cannery:
Oranges
Grapefruit
Tangerines


Total bulk thru house


Direct, Grove-to-Cannery

Packed Fruit Purchased

TOTAL VOLUME ALL FRUIT


354, 457
204,311
204,262
8,924
3,877
3,484
2,119
695
782,129


852

11,970,101


3, 228,134
2,558,725
331,096

6,117,955

9,602,233

30,787

27,721,076


27,266
20,431
14,590
992
1,938
1,161
1,060
'


426


78,735
62,408
9,460


259,519

4,398


$1.6044
1.6083
1.5909
0.6832
1.5360
1.3725
0.6789
S..


1.7903


0.2069
0.1579
0.2626


0.0756

0.1098


Miscellaneous containers for tangerines include: 1-3/5 bu. standard box, 1/2 box
bag, bu. basket,






Table 2.--Weighted Average Costs of Packing and Selling Florida ORANGES, per 1-3/5
Bushel Equivalent, by Type of Container, 42 Packinghouses, 195Y 59


Type of Container


Number of Packinghouses
Average volume packed
(1-3/5 bu. equiv.)

Materials:
Containers
Other materials
Total materials
Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, toad
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
Adminiftrativea
Selling?
Other items
Total Packing and Selling


1-3/5 bu. HalfBruce 4/5 bu. 4/5 bu. 4/5 bu. 8-lb.mesh
wirebound (4/5 bu.) wirebound wirebound fiberboard bsa
box box box flat box box


32 31 16 14 36 26

50,242 37,038 41,228 27,819 22,602 6,783
--------.---------.Costs per 1-3/5 Bushel-----------------

$0.3914 $0.6031 $0.5920 $0.6576 $0.3907d $0.5640
.0179 .0280 ,0294 .0404 .0088 .0111
$0.4093 $0.6311 $0.6214 $0.6980 $0.3995d $0.5;51

$0.0312 $0.0354 $0.0388 $0.0389 $0.0368 $0.0418
.0349 .0605 .0602 .0626 .0575 .0052
.0686 .1008 .1019 .0958 .0903 .1104
.0737 .1015 .1022 .1046 .0860 .1205
.0449 .0587 .0663 .0795 .0731 .0814
.0198 .0260 .0275 .0281 .0240 .0253
$0.2731 $0.3829 $0.3969 $0.4095 $0.3677 $0.3846

$0.0135 $0.0153 $0.0168 $0.0163 $0.0156 $0.0201
.0442 .0502 .0581 .0414 .0511 .0523
.0098 .0117 .0095 .0135 .0100 .0121
$0.0675 $0.0772 $0.0844 $0.0712 $0.0767 $0.0845

$0.0099 $0.0122 $0.0167 $0.0161 $0.0149 $0.0112
.0090 .0120 .0145 .0092 .0115 .0101
.0311 .0454 .0392 .0239 .0430 .0368
.0043 .0016 .0008 .0097 .0027 .0107
$0.0543 $0.0712 $0.0712 $0.0589 $0.0721 $0.0688
$0.8042 $1.1624 $1.1739 $1.2376 $0.9160 $1.1130
.0666 .0651 .0513 .0779 .0724 .0817
,0804 .0776 .0852 .0936 .0872 .0761
.1478 .1379 .1775 .1367 .1491 .1378
$1.0990 $1.4430 $1.4879 $1.5458 $1.2247 $1.4086


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 bro-
kerage, 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,
.prm-cooling, color-add and wax.
dEast Coast houses had a materials cost of $0.5582 for this container.


"" ----------------- -- ---------------------


~.-;Z=Er.







Table 2.--Weighted Average Costs of Packing and Selling Florida ORANGES, per 1-3/5
Bushel Equivalent, by Type of Container, 42 Packinghouses, 1958-59--Continued

5-lb. 8-lb. bag 5-lb. bag Bulk Bulk in Bulk thru
Type of Container mesh in Master in Master in field house to
bag Container Container truck box cannery


Number of Packinghouses
Average volume packed
(1-3/5 bu. equiv.)

Materials:
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
Selling
Other items
Total Packing and Selling


26 12 20 15 5 41

10,721 1,083 8,687 16,582 11,681 78,735
-------------- Costs per 1-3/5 Bushel-----------------

$0.7698 $0.9954 $1.1834 $ ... $ ... $ ...
.0112 .0129 .0155 0.0012
$0.7810 $1.0083 $1.1989 $0.0012 $ ... $ ...

$0.0423 $0.0395 $0.0351 $0,0363 $0.0311 $0.0285
.0092 .0441 .0432 .0080 .0081 ...
.1201 .0969 .1007 .0982 .0596 .0386
.1431 .1231 .1453 .0560 .0696 .
.0866 .0672 .0688 .0397 .0469 .0038
.0271 .0257 .0283 .0194 .0177 .0070
$0.4284 $0.3965 $0.4214 $0.2576 $0.2330 $0.0779

$0,0196 $0.0151 $0.0181 $0.0125 $0,0120 $0.0054
.0565 .0554 .0695 .0403 .0320 .0269
.0126 .0065 .0085 .0067 .0076 .0030
$0.0887 $0.0770 $0.0961 $0.0595 $0.0516 $0.0353

$0.0130 $0.0065 $0.0133 $0.0123 $0.0058 $0.0058
.0109 .0072 .0076 .0079 .0060 .0041
.0397 .0210 .0591 .0279 .0344 .0153
.0079 .0102 .0012 .0005 .0005 .0002
$0.0715 $0.0449 $0.0812 $0.0486 $0.0467 $0.0254
$1.3696 $1.5267 $1.7976 $0.3669 $0.3313 $0.1386
.0762 .0660 .0485 .0487 .0571 .0512
.0781 .0640 .0796 .0788 .0626 .0075
.1443 .1355 .1551 .1468 .1228 .0096
$1.6682 $1.7922 $2.0808 $0.6412 $0.5738 $0.2069


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 bro-
kerage, 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.





9
Table 3.--Weighted Average Costs of Packing and Selling Florida GRAPEFRUIT, per 1-3/5
Bushel Equivalent, by Type of Container, 42 Packinghouses, 1958-59

1-3/5 bu. Half Bruce 4/5 bu. 4/5 bu. 8-lb.
Type of Container wirebound (4/5 bu.) wirebound fiberboard mesh
box box box box bag


Nlum6er of PnEaeknnIanlscn


Average volume packed
(1-3/5 hu. equiv.)

Materials:
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
Administrativea
Selling
Other items
Total Packing and Selling


oAdministrative expense includes management and office salaries, office expense,


auto and travel, interest, telephone and telegraph.
Selling includes sales salaries, travel, telephone
kerage, commission and auction charges.


and telegraph, but excludes bro-


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.
dEas Coast houses had a materials cost of $0.5582 for this container.


33 29 11 39 24

52,178 25,077 27,640 47,763 9,886
-------------Costs per 1-3/5 Bushel---------------

$0.3927 $0.6203 $0.6254 $0.4862d $0.5898
.0177 .0259 .0208 .0088 .0116
$0.4104 $0.6462 $0.6462 $0.4950d $0.6014

$0.0262 $0.0315 $0.0227 $0.0319 $0.0381
.0345 .0572 .0418 .0525 .0070
.0450 .0680 .0683 .0672 .0896
.0570 .0768 .0747 .0778 .0970
.0378 .0443 .0352 .0458 .0722
.0155 .0200 .0173 .0189 .0199
$0.2150 $0.2978 $0.2600 $0.2941 $0.3238

$0.0097 $0.0094 $0.0093 $0.0077 $0.0167
.0330 .0369 .0358 .0289 .0421
.0084 .0094 .0219 .0080 .0104
$0.0511 $0.0557 $0.0670 $0.0446 $0.0692

$0.0077 $0.0090 $0.0091 $0.0083 $0.0066
,0065 .0082 .0068 .0096 .0070
.0219 .0238 .0212 .0272 .0290
.0039 .0023 ... .0013 .0060
$0.0400 $0.0433 $0.0371 $0.0464 $0.0486
$0.7175 $1.0430 $1.0103 $0.8801 $1.0430
.0563 .0504 .0950 .0593 .0616
.0684 .0617 .0665 .0663 .0686
.1297 .1239 .1355 .1248 .1240
$0.9719 $1.2790 $1.3073 $1.1305 $1.2972







Table 3.--Weighted Average Costs of Packing and Selling Florida GRAPEFRUIT, per 1-3/5
Bushel Equivalent, by Type of Container, 42 Packinghouses, 195~359"Continued

5-lb. 5-lb. bag 5-lb. poly. Bulk Bulk thru
Type of Container mesh in Master bag, Master in house to
bag Container Container truck cannery


Number of Packinghouses
Average volume pocked
(1-3/5 bu. equiv.)

Materials:
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 cos.
Taxes and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrative0
Selling6
Other items
Total Packing and Selling


28 18 9 14 41

6,436 6,157 7,193 9,877 62,408
--- --...---. Costs per 1-3/5 Bushel--- ------


$0.7968
.0097


$1.0462
.0210


$0.7631
.0141


0.0003


*..


$0.8065 $1.0672 $0,7772 $0.0003 $ ..

$0.0429 $0.0410 $0.0426 $0.0298 $0.0205
.0079 .0468 .0445 .0016 ...
.1070 .0862 .1024 .0720 .0272
.1194 .1260 .1410 .0635 ...
.0995 .0754 ,0734 .0230 .0024
.0242 .0234 .0256 .0166 .0054
$0.4009 $0.3988 $0.4295 $0.2065 $0.0555

$0.0189 $0.0152 $0.0155 $0,0065 $0.0035
.0448 ,0515 .0589 .0259 .0196
.0119 .0089 .0072 .0038 .0024
$0.0756 $0.0756 $0.0816 $0.0362 $0.0255

$0.0087 $0.0090 $0.0052 $0.0094 $0.0042
.0081 .0060 .0088 ,0062 .0031
.0334 .0404 ,0331 .0136 .0097
.0086 .0025 .0048 .0006 .0002
$0.0588 $0.0579 $0.0519 $0.0298 $0.0172
$1.3418 $1.5995 $1.3402 $0,2728 $0.0982
,0736 .0472 .0527 .0353 .0457
.0714 .0653 .0664 ,0616 .0056
.1264 .1374 .1242 .1261 .0084
$1,6132 $1.8494 $1,5835 $0.4958 $0.1579
] I i I I l J. _J . ...I I I Z _L U [I I1. .. IL .. : J '1 1 :


*Administrative expense includes management and office salaries, office expense,
auto and travel, interest, telephone and telegraph.
Selling includes sales salaries, travel, telephone and telegraph, but excludes bro-
kerage, 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,
ro-oa, color-add and wax.






Table 4.--Weighted Average Costs of Packing and Selling Florida TANGERINES, GROVE-
TO-CANNERY FRUIT and PACKED FRUIT PURCHASED, per 1-3/5 Bushel
Equivalent, 42 Packinghouses, 1958-59

Tangerines All types of fruit
Type of Container HalfBruce 4/5 bu. 4/5 bu. Bulk thru Direct Packed
(4/5 bu.) wirebound wirebound house to grove-to- fruit
box box flat cannery cannery purchased


Number of Packinghouses
Average volume packed
(1-3/5 bu. equiv.)

Materials:
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
Administrativea
Sellingb
Other items
Total Packing and Selling


14,590 20,431 27,266 9,460 259,519 4,398
.----------------- Costs per 1-3/5 Bushel------------....


$0.5640
.0379


$0,5522
.0359


$0.6575
.0372


$ ...
0


$ ...
*9 *


$0.6019 $0.5881 $0.6947 $ ... $ ... $ ...

$0.0424 $0.0493 $0.0429 $0.0341 $0.0027 $ ...
.0676 .0551 .0658 ... ... ...
.1352 .1555 .0980 .0547 .0004 .
.1352 .1226 .1220 ... ... *.
.0743 .0938 .0805 .0078 ... 0.0076
.0354 .0371 .0313 .0105 .0002 .0006
$0.4901 $0.5134 $0.4405 $0.1071 $0.0033 $0.0082

$0.0209 $0.0320 $0.0175 $0.0084 $ ... $ ...
.0723 .0851 .0550 .0372 0.0052 0.0008
.0136 .0164 .0115 .0043 ... ...
$0.1068 $0.1335 $0.0840 $0.0499 $0.0052 $0.0008

$0.0213 $0.0155 $0.0207 $0.0089 $0.0003 $0.0003
.0144 .0259 .0103 .0074 .0002 .0003
.0506 .0700 .0313 .0210 .0017 .0011
.0044 .0005 .0096 .0004 .0001 .0002
$0.0907 $0.1119 $0.0719 $0.0377 $0.0023 $0.0019
$1.2895 $1.3469 $1.2911 $0.1947 $0.0108 $0.0109
.0666 .0514 .0773 .0541 .0505 .0693
.0787 .0786 .0982 .0053 .0070 .0234
.1561 .1314 .1378 .0085 .0073 .0062
$1.5909 $1.6083 $1.6044 $0.2626 $0.0756 $0.1098
.. . . .. . . I I 1 i_ Il ?im l I i I i [ L I. . I


oAdministrative expense includes management and office salaries, office expense,
auto and travel, interest, telephone and telegraph.
Selling includes sales salaries, travel, telephone and telegraph, but excludes brow
kerage, 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,
"p tctEg,. color-add and wax.










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 con-

tainer. 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 can be illustrated

by comparing the container cost of the 1-3/5 bushel wirebound box for oranges and grapefruit

(Tables 2 and 3). For oranges 32 houses had an average container cost of $0.3914 and for

grapefruit 33 houses had a cost of $0.3927, yet the container was identical for each type of

fruit. Other items of cost show similar variations. The average costs shown in each category

are weighted averages of the packinghouses included; i.e., the total money cost of each

item for all houses is divided by the total number of boxes packed. The use of weighted

averages in this summary tends to fix the cost of packing and selling somewhat lower than

the simple 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 32 firms was $1.130, or

3.1 cents higher than the weighted average of $1.099 as shown in Table 2, Twenty-one firms

had total costs higher than the weighted average and 11 had lower costs.

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

firm's own sales department or sales organization. Brokerage, commission and auction charges

are not included. 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 per box for packing and selling oranges in the 1-3/5 bushel

wirebound box was $1.10. The two major expense items, materials and labor, accounted for

62 percent of the total cost. Materials expense, which included the wirebound crate, liner

and label, averaged $0.41 per box. The overage labor expense was $0.27.

The cost per 1-3/5 bushel box equivalent for oranges packed in the half Bruce (4/5 bu.)

box was $1.44 and in the 4/5 bushel wirebound box $1.49. Packing and selling costs for the

4/5 bushel wirebound flat box were $1.55 and for the 4/5 bushel fiberboard box $1.22.

Oranges packed in 8-pound mesh bags averaged $1.41 to pack and sell and 5-pound mesh bags

cost $1.67. 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 1958-59 was the 5-pound mesh

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

cost and also a high labor cost. The average cost of packing and selling this pack was $2.08

per 1-3/5 bushel equivalent. The average cost of the 8-pound mesh bag in master container

was $1.79.

The average cost of packing and selling oranges loaded bulk-in-truck was $0.64 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 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 se. 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.

Oranges packed and sold in field boxes cost an average of $0.57 per box for five

firms. 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 weighted 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 grape-

fruit was $0.97 for the 1-3/5 bushel wirebound box, 64 percent of which was material and

labor costs. Packing and selling costs were $1.28 for the half Bruce (4/5 bu.) box, $1.31 for

the 4/5 bushel wirebound box, $1.13 for the 4/5 bushel fiberboard box, $1.30 for the 8-pound

mesh bag, $1.61 for the 5-pound mesh bag, $1.85 for the 5-pound mesh bag in master con-

tainer, $1.58 for the 5-pound polyethylene bag in master container and $0.50 for grapefruit

sold bulk-in-truck. Bulk grapefruit thru- house-to-cannery (eliminations) averaged $0.16

per box.

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

shown in Table 4. The 4/5 bushel wirebound boxes were the containers in common use in

1958-59. The 1-3/5 bushel equivalent cost for packing and selling tangerines in the half

Bruce (4/5 bu.) box was $1.59; in the 4/5 bushel wirebound box $1.61; and in the 4/5 bushel

wirebound flat box it was $1.60.










As with oranges and grapefruit, material and labor were the largest expense items.

The cost of the materials, which includes the crate, liner and label, was about 39 percent

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

thru-house-to-cannery averaged $0.26 per box of the total packing and selling cost.

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

the grove to the cannery averaged only $0.08 per box of the packinghouse expenses (Table 4).

There were no materials or packinghouse labor involved except that one firm had supervisory

personnel for this operation on the packinghouse payroll, and three had a small amount of

receiving and trucking labor.

The cost of handling packed fruit purchased averaged $0.11 per box. A small amount

of checking labor was required and a portion of some of the other operating costs were charged

to this operation.


Variations in Packing and Selling Cost Among Firms

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

and selling oranges per 1-3/5 bushel equivalent in the various containers. The packing and

selling costs of oranges for the sample are arrayed in five cent intervals for six types of con-

tainers in Table 5. For the 32 firms packing oranges in 1-3/5 bushel wirebound boxes, the

total packing and selling costs ranged from $0.94 to $1.46 per box with 25 firms falling within

the range of $1.00 to $1.19. Thirty-six firms packing 4/5 bushel fiberboard boxes had costs

between $0.96 and $1.67 with 24 in the range of $1.10 to $1.34. Costs for the half Bruce

(4/5 bu.) box varied from $1.19 to $1.86 per 1-3/5 bushel equivalent with costs for 19 of the

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

cost was from $1.32 to $1.61 per box with 12 of the 16 firms within the range of $1.35 to$1.54.





16
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, 1958-59

Cost per 1-3/5 bu. 4/5 bu. Half Bruce 4/5 bu. 8-lb. 5-lb.
1-3/5 bushel wirebound fiberboard (4/5 bu.) wirebound mesh mesh
equivalent box box box box bag bag
..-----.---------- Number of Packinghouses------------- -- ---
Packing and Selling
Under $1.00 2 1 .. .. *
$1.00- 1.04 5 **
1.05- 1.09 4 3 .. 1
1.10- 1.14 6 4 .. .* *
1.15- 1.19 10 1 1 .. 1
1.20- 1.24 2 6 .. .. **
1.25- 1.29 2 8 4 .* 2
1.30- 1.34 .. 5 2 4
1.35- 1.39 .. 5 4 3 5
1.40- 1.44 .. 1 4 3 3
1.45- 1.49 1 .. 6 3 4 6
1.50- 1.54 .. .. 3 3 2
1.55- 1.59 .. 1 2 1 4
1.60- 1.64 .. 1 2 1 1 1
1.65- 1.69 .. 1 1 .. 1 2
1.70- 1.74 .. .. ** ** ** 5
1.75- 1.79 .. 2 .. .. 1
1.80- 1.84 .. .. .* 2
1.85- 1.89 .. .. .. .. 2
1.90 and over ** .. *. 1 3
Total number of firms 32 36 31 16 26 26
Packing
Under $0.70 2 .. .. o *0 00
$0.70- 0.74 4 *. .. .** **
0.75- 0.79 5 3 .. ..
0.80- 0.84 13 3.. .
0.85- 0.89 3 6 0.. ** **
0.90- 0.94 3 7 .. *.
0.95- 0.99 1 6 4 .. 4 .
1.00- 1.04 .. 3 2 2..
1.05- 1.09 1 3 4 4 5
1.10- 1.14 .. 3 6 2 3..
1.15- 1.19 .. .. 3 5 3 1
1.20- 1.24 .. .. 6 2 4 3
1.25- 1.29 .. 1 2 1 2 6
1.30- 1.34 .. 1 .. 1 3
1.35- 1.39 .. *.. 1 .. 3
1.40- 1.44 .. 1 1 .. 3
1.45- 1.49 .. ., 2 .. *
1.50 and over .. .. 1 ., 1 7
Total number of firms 32 36 31 16 26 26










Packing and selling costs of oranges in 8-pound mesh bags varied between $1.08 and

$1.97 for 26 packinghouses of which 18 had costs between $1.30 and $1.54. For 5-pound

mesh bags, the total packing and selling costs ranged from $1.46 to $2.38 for 26 firms of

which 13 ranged from $1.50 to $1 79.

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

packing and selling costs. The range for the 32 firms handling 1-3/5 bushel wirebound boxes

of oranges was from $0.67 to $1.07. The packing cost for 21 of these firms ranged from $0.75

to $0.89. The variation in the cost of packing oranges in 4/5 bushel fiberboard boxes for

36 firms ranged from $0.77 to $1.44 and for 25 of these firms between $0.85 and $1.09.

Thirty-one houses packing half Bruce (4/5 bu.) boxes had costs varying from $0.98 to $1.56

per box with 21 firms between $1.00 and $1.24. Sixteen firms packing in the 4/5 bushel wire-

bound box had costs from $1.05 to $1.41 per box with 9 firms having packing costs between

$1.10 and $1.24.

The spread in packing cost for 8-pound mesh bags for 26 firms was between $0.75 and

$1.59 with 21 firms included within the cost interval of $0.95 to $1.24. For the 26 firms

packing oranges in 5-pound mesh bags, the packing cost ranged from $1.15 to $2.00 and 18 of

these firms had costs between $1.20 and $1.44 per box.

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

firms was not as great as in oranges. The 33 firms using 1-3/5 bushel wirebound boxes had

costs which varied between $0.85 and $1.27 for packing and selling each box as shown by

data in Table 6. Of these firms, 24 had costs between $0.90 and $1.09. For the half Bruce

(4/5 bu.) box, 29 firms had total packing and selling costs ranging between $1,08 and $1 .59.










Of these, 19 had costs from $1,15 to $1.39. Eleven firms using the 4/5 bushel wirebound box

had costs ranging from $1.20 to $1.59 per box with 7 firms between $1.25 and $1.34. For the

4/5 bushel fiberboard box, 39 houses had costs ranging from $0.74 to $1.40 per box with 26 of

these between $1.00 and $1.24.

The packing and selling costs for grapefruit in 8-pound mesh bags were from $1.13 to

$1.87 for 24 firms with 14 firms between $1.15 and $1.34. For 5-pound mesh bags, 28 firms

ranged from $1.32 to $2.30 with 14 firms falling between $1.40 and $1.69 per 1-3/5 bushel

equivalent.

Packing costs only for grapefruit in 1-3/5 bushel wirebound boxes for 33 firms varied

from $0.61 to $0.92. Twenty-five of these firms ranged between $0.65 and $0.79. Twenty-

nine packinghouses had packing costs ranging from $0.74 to $1.27 for half Bruce (4/5 bu.)

boxes with 17 of these firms ranging from $0.90 to $1.09. The 11 firms packing the 4/5 bushel

wirebound box were within the cost range of $0.94 and $1.41 with 8 of the firms falling between

$0.95 and $1.04. Packing costs for the 4/5 bushel fiberboard box varied from $0.50 to $1.14
per box for 39 firms with 27 between $0.70 and $0.94.

The cost of packing in 8-pound mesh bags for 24 firms ranged from $0.84 to $1.52 per

box with 16 houses between $0.95 and $1.14. Variation in cost for the 28 firms packing grape-

fruit in 5-pound mesh bags ranged from $0.98 to $1.95. Costs for 14 houses fell within the

range of $1.15 to $1.34.

Tangerines.--Packing and selling costs for tangerines per 1-3/5 bushel equivalent

ranged from $1.37 to $1.86 for 4/5 bushel wirebound boxes for 10 firms; for 4/5 bushel wire-

bound flat boxes from $1.34 to $1.84 for 13 firms; and for half Bruce (4/5 bu.) boxes from

$1.38 to $2.04 for 14 firms(Table 7).





19
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, 1958-59

Cost per 1-3/5 bu, Half Bruce 4/5 bu. 4/5 bu. 8-lb. 5-lb.
1-3/5 bushel wirebound (4/5 bu.) wirebound fiberboard mesh mesh
equivalent box box box box bag bag
--.---------- -- Number of Packinghouses--- .----I------
Packing and Selling
Under $0.90 4 .. .. 3
$0.90- 0.94 5 .. .. ..
0.95- 0.99 6 .. .. 4 00 ..
1.00- 1.04 8 .. .. 5 ..
1.05- 1.09 5 1 .. 4 .. ..
1.10- 1.14 2 2 .. 6 2
1.15- 1.19 2 5 .. 4 5
1.20- 1.24 .. 2 1 7 3
1.25- 1.29 1 8 4 2 5 ..
1.30- 1.34 .. 2 3 2 1 2
1.35- 1.39 .. 2 2 1 3
1.40- 1.44 .. 3 .. 1 2 4
1.45- 1.49 .. 2 .. .3 4
1.50- 1.54 .. .. .. 1 2
1.55- 1.59 .. 2 1 .. .. 2
1.60- 1.64 .. .. ** ** **
1.65- 1.69 .. .. .** ** 2
1.70- 1.74 .. .. .* ** 1
1.75 and over .. .. *. .. 1 8
Total number of firms 33 29 11 39 24 28
Packing
Under $0.65 4 .. .. 2
$0.65- 0.69 7 .. .. 3 .. **
-0.70- 0.74 13 1 .. 3
0.75- 0.79 5 .. .. 8 ..
0.80- 0.84 1 5 1
0.85- 0.89 1 5 ., 7 2
0.90- 0.94 2 1 1 4 1 ..
0.95- 0.99 .. 6 4 3 9 1
1.00- 1.04 .. 5 4 3 3 ..
1.05- 1.09 .. 5 1 .. 1 1
1.10- 1.14 .. 2 .. 1 3 3
1.15- 1.19 .. 2 .. .. 1 4
1.20- 1.24 .. 1 .. .. 2 5
1.25- 1.29 .. 1 .. .. .. 4
1.30 1.34 1. .. ** ** ** 1
1.35- 1.39 .. ** ** *
1.40- 1.44 ., .. 1 .. .. 2
1.45 and over* .. .* .-1 7
Total number of firms 33 29 11 39 24 28
i i I II I I I I II IIIL I I 1 I g I I L III I I J II II I










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, 1958-59

Cost per 4/5 bushel 4/5 bushel Malf Bruce
1-3/5 bushel wirebound wirebound flat (4/5 bu.)
equivalent box box box
------------ Number of Packinghouses-----------------
Packing and Selling
Under $1.40 1 1 2
$1.40- 1.44 .. 1 1
1.45- 1.49 1 .. 2
1.50- 1.54 2 2 1
1.55- 1.59 3 2 1
160 1.64 .. 4 2
1.65- 1.69 1 2 3
1.70- 1.74 1
1.75- 1.79 .. .. 1
1.80 and over 1 1 1
Total number of firms 10 13 14
Packing

Under $1.15 1 2 2
$1.15- 1.19 .. .. 1
1.20- 1.24 1 2 2
1.25- 1.29 3 4 1
1,30- 1.34 2 1 3
1.35- 1.39 1 3 3
1.40- 1.44 1 .. 1
1.45 149 .. *
1.50- 1.54 .. ..
1.55 and over 1 1 1
Total number of firms 10 13 14


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

$1.08 to $1.62 for 4/5 bushel wirebound boxes, from $1.08 to $1.65 for 4/5 bushel wire-


bound flat boxes and from $1.09 to $ 1.69 for half Bruce (4/5 bu.) boxes.










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, the packinghouses were divided into four seasonal volume classes

based on total volume of fruit through the house (packed and bulk). The volume groups were:

(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 weighted 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 data in all three of the tables, showing average total

packing and selling cost by volume classes, indicate roughly 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 some previous yearns

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

in 1-3/5 bushel wirebound boxes of 11.7 cents more than the average for all the houses.

Those in the largest volume group had total costs approximating the average. For packing and

selling grapefruit in 1-3/5 bushel wirebound boxes, houses in the smallest volume group had

costs about 5 cents per box more than the average of all houses. Packinghouses in the largest

volume group had costs of 1.4 cents less than the average.

The relationship between total volume and cost is imperfect because some of the impor-

tant factors affecting costs are believed to 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 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 information on all these factors to account for the effect of

each on costs.

There were houses that had high as well as low costs in all volume groups. This

variation within groups is shown in Table 10 and indicates that the larger seasonal 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 associated with economies of scale, or of work methods,

or a combination of both.


Trend in Packing and Selling Cost

The average total cost of packing and selling Florida citrus fruits in the most common

containers has increased during the past 10 seasons with minor fluctuations (Table 11).

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

from $0.88 for the 1949-50 season to $1.10 for the 1958-59 season. The decrease in the trend

of costs noted in 1954-55 was due to a reduction of container prices. The large increase in

1957-58 was probably due, in part, to the freeze which reduced the packed volume by 18 per-

cent from the preceding season. Packing costs in wirebound boxes were slightly lower in 1958-

59 than in 1957-58 because of volume restoration, but probably still represents an upward trend.










Table 8.--Average Costs of Packing and Selling Florida ORANGES in 1-3/5 BushelWirebound
Boxes, by Volume Groups, 32 Packinghouses, 1958-59

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
Average pack of oranges
(1-3/5 bu. equiv.)


Material
Labor:
Receive, truck, dump
Cratemaking and labeling
Foremen, graders, box
closer
Wrap and pack
Truck, check, load
Payroll taxes, insurance
Total labor

Other direct operating

Indirect operating

Total Packing

Administrative
Selling
Other items

Total Packing and Selling


14,325 27,667 59,217 105,794 50,242
---------------- Costs per 1-3/5 Bushel-----------------
$0.4251 $0.4050 $0.4095 $0.4080 $0.4093

$0.0372 $0.0373 $0.0284 $0.0310 $0.0312
.0378 .0369 .0307 .0381 .0349

.0775 .0810 .0669 .0645 .0686
.0675 .0681 .0723 .0781 .0737
.0390 .0494 .0432 .0459 .0449
.0211 .0155 .0190 .0220 .0198
$0.2801 $0.2882 $0.2605 $0.2796 $0.2731

$0.0631 $0.0575 $0.0587 $0.0808 $0.0675

$0.0870 $0.0459 $0.0530 $0.0534 $0.0543

$0.8553 $0.7966 $0.7817 $0.8218 $0.8042

$0.1002 $0.0631 $0.0728 $0.0561 $0.0666
.0908 .0911 .0801 .0752 .0804
.1701 .1437 .1427 .1512 .1478

$1.2164 $1.0945 $1.0773 $1.1043 $1.0990


aOther direct operating expense in,
and equipment and miscellaneous supplies.


eludes power, lights and water, repair of buildings


Indirect operating expeitse 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,











Table 9.--Average Costs of Packing and Selling Florida GRAPEFRUIT in 1-3/5 Bushel
Wirebound Boxes, by Volume Groups, 33 Packinghouses, 1958-59


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
Average pack of grapefruit
(1-3/5 bu. equiv.)


Material
Labor:
Receive, truck, dump
Cratemaking and labeling
Foremen, graders, box
closer
Wrap and pack
Truck, check, load
Payroll taxes, insurance
Total labor

Other direct operatinga

Indirect operatingb

Total Packing

Administrative
Selling
Other items

Total Packing and Selling


6,530 53,987 45,913 122,115 52,178
.-----..--------- Costs per 1-3/5 Bushel--------------
$0.4263 $0.4132 $0.4078 $0.4094 $0.4104

$0.0336 $0.0317 $0.0249 $0.0233 $0.0262
.0397 .0384 .0326 .0331 .0345

.0488 .0483 .0468 .0416 .0450
.0516 .0532 .0555 .0605 .0570
.0287 .0412 .0393 .0354 .0378
.0135 .0130 .0154 .0173 .0155
$0.2159 $0.2258 $0.2145 $0.2112 $0.2160

$0.0474 $0.0402 $0.0487 $0.0595 $0.0511

$0.0427 $0.0408 $0.0430 $0.0372 $0.0400

$0.7323 $0.7200 $0.7140 $0.7173 $0.7175

$0.0816 $0.0558 $0.0624 $0.0506 $0.0563
.0692 .0905 .0640 .0584 .0684
.1367 .1255 .1298 .1316 .1297

$1.0198 $0.9918 $0.9702 $0.9579 $0.9719
.= .. .. . ... Ij i . 111 l i .1-' I j ] WI


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


lights and water, repair of buildings


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


-- - --









The 1-3/5 bushel standard nailed boxes for both oranges and grapefruit were used by too few

houses in 1958-59 far the average cost to be significant. The cost of packing and selling

oranges in the 8-pound mesh bag increased from $1.05 in 1949-50 to$1.41 in 1958-59 with

a slight decrease in 1955-56; and for 5-pound bags the average total packing and selling cost

changed from $1.26 to $1.67 during the period.


Table 10.--Volume of Fruit Handled and Variation in the Cost of Packing and Selling Florida
Citrus Fruit in 1-3/5 Bushel Wirebound Boxes, 42 Packinghouses, 1958-59


Cost per 1-3/5 bushel


$0.90 $0.99
1.00- 1.09
1.10- 1.19
1.20- 1.29
1.30 and over


$0.80 $0.89
0.90- 0.99
1.00- 1,09
1.10 and over


Number of boxes handled (1-3/5 bu. equivalent)
Urjer 200,000 430,000 700,000 All
200,000 399,999 699,999 and over volumes
Oranges
------------------. Number of firms--- ---------------
.* 1 1 2
1 3 3 2 9
3 5 5 3 16
2 .. 2 .. 4
1 .. .. .* 1
Grapefruit
..1 2 1 4
3 3 3 2 11
2 4 5 2 13
3 .. 1 1 5


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

boxes increased from $0.80 in 1949-50 to $0,97 in 1958-59 with declines in 1953-54, 1954-

55 and 1958-59. Cost per 1-3/5 bushel equivalent for 8-pound bags increased from $0.95 in

1949-50 to $1.30 in 1958-59 and for 5-pound bags from $1.24 to $1.61.

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

increased during the 10-year period from $1.25 to $1.61 for 4/5 bushel wirebound boxes and

from $1.26 to $1.60 for 4/5 bushel wirebound flat boxes.









Table 11.--Average Total Cost per 1-3/5 Bushel Equivalent for Packing and Selling Florida
Citrus Sold for Fresh Consumption, 1949-50 through 1958-59a


--------------- Dollars per 1-3/5 bu. equivalent----------------


1949-50
1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59

1949-50
1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59




1949-50
1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59


$1.1368
1.2062
1.2526
1.2730
1.3735
1.3957
1.4472
1.5115
1.6053
1.3656

$1.0257
1.0945
1.1907
1.1669
1.1871
1.2166
1.3038
1.3263
1.2955
1.4926

4/5 bu.


$0.8785
.9166
.9111
.9530
.9355
.8863
.9603
1.0068
1.1164
1.0990

$0.8046
.8196
.8487
.8543
.8375
.7984
.8682
.9285
1.0077
.9719

4/5 bu.
wirebound box
$1.2491
1.4250
1.3994
1.4417
1.3689
1.4266
1.4580
1.5456
1.6506
1.6083


Oranges
$1.0488
1.1490
1.1069
1.2067
1.2335
1.2609
1.2322
1.2639
1.3644
1.4086
Grapefruit
$0.9453
1.0849
1.0467
1.1231
1.1659
1.1891
1.1724
1.2188
1.3089
1.2972
Tangerines
Half Bruce


(4/5 bu.) box
.3..
of **
*** *


$1.5909
$1.5909


aNumber of houses included
1949-50 73 1951-52 67
1950-51 -77 1952-53 43


in each of the years:
1953-54-43 1955-56
1954-55-43 1956-57


-42
-43


1957-58-42
1958-59-42


$1.2580
1.4086
1.3444
1.4469
1.4597
1.5005
1.4967
1.5278
1.6464
1.6682

$1.2387
1.3201
1.2670
1.3233
1.3666
1.3964
1.4264
1.4730
1.5805
1.6132


wirebound flat
$1.2555
1.3563
1.3589
1.4379
1.4373
1.4597
1.4725
1.5675
1.6277
1.6044


.**..


$1.0088
1.0508
1.0939
1.1551
1.2150
1.2247


..0 0
....

$0.9058
.9277
1.0000
1.0549
1.1057
1.1305











Other Mimeographed Publications Available on Citrus Costs
Department of Agricultural Economics
Florida Agricultural Experiment Stations
Gainesville, Florida



1. Costs of Picking and Hauling Florida Citrus Fruits, 1958-59 Season.

Agricultural Economics Mimeo Report No. 60-9, February, 1960.


2. Costs of Processing, Warehousing and Selling Florida Citrus Products, 1957-58 Season.

Agricultural Economics Mimeo Report No. 59-12, June, 1959.


3. The Use of Packing Labor in Florida Citrus Packinghouses.

Agricultural Economics Mimeo Report No. 57-8, June, 1957.


4. A Method of Allocating Citrus Packinghouse Costs.

Agricultural Economics Mimeo Report No. 58-1, July, 1957.


5. Twenty-six Years of Citrus Production Costs and Returns in Florida, 1931-1957.

Agricultural Extension Service Ecoromic Series 59-5, August, 1959.







AHSWms 2/60
Agr. Econ. Exp. Sta. 1250




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