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FLAG IFAS PALMM UF



Costs of packing and selling Florida fresh citrus fruits
ALL VOLUMES CITATION SEARCH THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00027603/00013
 Material Information
Title: Costs of packing and selling Florida fresh citrus fruits
Series Title: <1971-72 season>-1972-73 season Economics report
Portion of title: Cost of packing and selling Florida fresh citrus fruits
Physical Description: v. : ; 27 cm.
Language: English
Creator: University of Florida -- Agricultural Economics Dept
University of Florida -- Food and Resource Economics Dept
Publisher: Dept. of Agricultural Economics, Florida Agricultural Experiment Stations, Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville
Creation Date: 1960
Frequency: annual
regular
 Subjects
Subjects / Keywords: Citrus fruit industry -- Costs -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
serial   ( sobekcm )
 Notes
Dates or Sequential Designation: Ceased with 1972-73 season.
Issuing Body: Issued by: Dept. of Agricultural Economics, University of Florida, <1969-70 season->; Food and Resource Economics Dept., University of Florida, <1971-72 season>-1972-73 season.
General Note: Title varies slightly.
General Note: Description based on: 1969-70 season; title from cover.
Funding: Ag. econ. report.
 Record Information
Source Institution: Marston Science Library, George A. Smathers Libraries, University of Florida
Holding Location: Florida Agricultural Experiment Station, Florida Cooperative Extension Service, Florida Department of Agriculture and Consumer Services, and the Engineering and Industrial Experiment Station; Institute for Food and Agricultural Services (IFAS), University of Florida
Rights Management: All rights reserved, Board of Trustees of the University of Florida
Resource Identifier: oclc - 23368100
lccn - 91649936
System ID: UF00027603:00013
 Related Items
Succeeded by: Estimated costs of packing and selling fresh Florida citrus

Table of Contents
    Title Page
        Page i
        Page ii
    Table of Contents
        Page iii
    Introduction
        Page 1
        Page 2
    Cost of packing and selling, 1960-61
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
    Cost of packing and selling, East Coast and other firms
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
    Relationship of seasonal volume to average cost of packing and selling
        Page 23
        Page 24
        Page 25
    Trend in packing and selling cost
        Page 26
        Page 27
        Page 28
        Page 29
    Available publications
        Page 30
Full Text



APRIL, 1962







COSTS


AGRICULTURAL ECONOMICS MIMEO REPORT NO. 62-14







OF PACKING AND SELLING


FLORIDA FRESH CITRUS FRUITS,


1960-61 SEASON


by

A. H. Spurlock and H. G. Hamilton


Oranges:
1-35S bu. wirbound
4/5 bu. wirebound
4/5 bu. fiberboard*
5-lb. mesh bag in
master carton
5-lb. Poly. bag in
master carton
Grapefruit:
1-3/5 bu. wirebound
4/5 bu. wirebound
4/5 bu. fiberboard*
5-lb. mesh bag in
master carton
5-lb. Poly. bag in
master carton
Tangerines:
4/5 bu. wirebound


*Interior section only.


Costs of Packing and Selling Florida Citrus Fruits, 1960-61
0 $.20 $.40 $.60 $.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 $2.20

$1.12

$1.45
$1.29


$1.71

$1.00
$1.33
$1.12
$2.01
$1.63

$1.57
Materials Labor /" Other t Admin., Other
Packing Selling


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






DEPARTMENT OF AGRICULTURAL ECONOMICS
FLORIDA AGRICULTURAL EXPERIMENT STATIONS
GAINESVILLE, FLORIDA
















CONTENTS



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

COSTS OF PACKING AND SELLING, 1960-61 ... ......... 3

Oranges. ....... ........... . 13

Grapefruit0 .......... .............. .. 14

Tangerines... .. ..... ....... .......... 15

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

COSTS OF PACKING AND SELLING, EAST COAST AND OTHER FIRMS. 16

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

Oranges ...... ... ........ .... ..... 16

Grapefruit ..... ...... .... 21

Tangerines................. . .... 23

RELATIONSHIP OF SEASONAL VOLUME TO AVERAGE COST OF PACKING
AND SELLING 23

TREND IN PACKING AND SELUNG COST . .. .. . . 26











COSTS OF PACKING AND SELLING FLORIDA
FRESH CITRUS FRUITS, 1960-611


Introduction


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

for the citrus marketing season 1960-61. Ten of these houses were located in the

Indian River section along the East Coast and 32 were in the Interior and West

Coast sections.

The volume of packed fruit handled by the 42 packinghouses in 1960-61

amounted to an equivalent of 14,199,597 boxes of 1-3/5 bushels, or approx-

imately 50 percent of the total shipment of Florida fresh citrus.2 The volume

ranged from 58,000 to slightly more than 1,000,000 packed boxes and averaged

338,000 boxes. Thus the sample packinghouses were considerably larger than the

average of all citrus packinghouses in the State. These latter averaged only 161,000

boxes for licensed and registered fresh fruit shippers who shipped fruit from 176 houses

in 1960-61.2

The distribution of fruit handled by type of outlet is shown in Table 1.

Cannery fruit through the house (eliminations) was not obtained from one house

and direct grove to cannery fruit was not obtained from several others. Packed

fruit represented 49.5 percent of the total volume of all houses, but was 59.5

percent of the 10 East Coast houses. Fruit going direct from grove to cannery
I
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 1960-61 Season Annual Report, Citrus and Vege-
table Inspection Division, Winter Haven, Florida

1







2

was 27.2 percent of the total of all houses and 19.6 percent for the East Coast.

When adjusted for the packinghouse not supplying data on eliminations,

the packout averaged 66.6 percent of the fruit through the house for the 42 firms,

74.0 percent for the East Coast group, and 64.4 percent for the other houses.

TABLE 1 .--Distribution of citrus fruit handled by type of outlet, 42 packinghouses,
1960-611


Class of Fruit


I Toal ollrt


Average Volume Percent of
Per House Total Volume


(1-3/5 bu.
boxes)


(1-3/5 bu.
boxes)


10 East Coast Packinghouses:
Packed fruit
Cannery fruit through house
Total through house
Direct from grove to cannery
and tree sales
Total
32 Other Packinghouses:
Packed fruit
Cannery fruit through house
Total through house
Direct from grove to cannery
and tree sales
Packed fruit purchased
Total
42 Packinghouses:
Packed fruit
Cannery fruit through house
Total through house
Direct from grove to cannery
and tree sales
Packed fruit purchased
Total


3,355,636
1,180,588
4,536,224


1,104,206
5,640,430


335,563
118,059
453,622

110,421
564,043


59.5
20.9
80.4

19.6
100.0


10,843,961 338,874 47.0
5,475,818 171,119 23.8
16,319,779 509,993 70.8

6,696,985 209,281 29.0
39,662 1,239 .2
23,056,426 720,513 100,0

14,199,597 338,086 49.5
6,656,406 158,486 23.2
20,856,003 496,572 72.7

7,801,191 185,742 27.2
39,662 944 .1
28,696,856 683,258 100.0


1
Cannery fruit through house not obtained from
cannery not obtained from several additional houses.


one house, and grove-to-


I TtclVo j-m


- --


I--


- ----- --










Costs of Packing and Selling, 1960-61


The cost data made available by the fresh citrus fruit packinghouses

showed the details of the annual expenditures of each packinghouse in the

sample. The total operating cost was broken down into 33 accounts and com-

bined into 7 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 accountants in most cases. These

costs were used without substantial changes in preparing the averages by con-

tainers. For the few firms included who had only total costs, allocations were

made to the various containers with ratios developed for this purpose by study-

ing packing operations in a number of packinghouses.

There was some variation among accountants in method or formula for

allocating costs. Methods used for materials cost, general and administrative

and selling expenses appeared to be rather uniform, but labor and other direct

operating costs were allocated by various methods. In most of the packing-

houses, a proportion of the labor for receiving and dumping and for grading

was allocated to the fruit graded out for canneries (eliminations). A few of

the houses also charged some labor for checking and loading to eliminated

fruit. Any other direct operating expenses allocated to the eliminated fruit

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

the houses the eliminated fruit was charged principally with administrative
3-
3"A Method of Allocating Citrus Packinghouse Costs, Agricultural
Economics Mimeo Report No. 58-1, July, 1957.







4

expense, the same as fruit going direct from grove to cannery.

The volume of citrus fruit handled by type of container and kind of

fruit is shown in Table 2. The number of the sample houses using each con-

tainer is also shown with the total cost of packing and selling. Itemized

costs for the principal containers used are treated in subsequent tables.

Packing and selling costs for those containers handled in small volumes are

not considered representative as they may reflect unusual conditions and

costs.

The 42 houses prepared a total of 56 different packs of fruit plus a

mixed group of miscellaneous containers for each type of fruit. The 4/5

bushel wirebound or half Bruce box was the most important container used

for oranges in 1960-61 from the standpoint of total volume. This was fol-

lowed by the 1-3/5 bushel wirebound box and the 4/5 bushel fiberboard

carton. For grapefruit, the 4/5 bushel fiberboard box was the container used

for the largest volume with the 1-3/5 bushel wirebound box and the half Bruce

next in order. These three containers were packed with 75 percent of the

oranges and 84 percent of the grapefruit. Almost all of the tangerines were

packed in two types of 4/5 bushel wirebound boxes.

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

rines for the 1960-61 season are given in Tables 3, 4 and 5 for 42 packing-

houses. These tables show the weighted average costs for the major expense

items by type of pack, together with the number of firms packing each con-

tainer and the average volume per house using each. Only the more impor-

tant packs are included.








TABLE 2.--Number of firms, volume of citrus fruit handled and total packing and
selling cost, by type of container, 42 packinghouses, Florida, 1960-61

Volume (1-3/5 bu. equiv.) Total
No. of
Container Firms Total Average Packng nd
Per Firm Selling Cost
_Per Box


Oranges:
4/5 bu. half Bruce box
1-3/5 bu. wirebound box
4/5 bu. fiberboard box
4/5 bu. wirebound flat box
Bulk in truck
5-lb. mesh bag
5-lb. poly. bag in Master Ctn.
8-lb. mesh bag
5-lb. mesh bag in Master Ctn.
Field box
1/4 box mesh bag
4/5 bu. wirebound export
5-lb. mesh bag in Master Bruce
8-lb. mesh bag in Master Ctn.
8-lb. mesh bag in Master Bruce
8-lb. poly. bag in Master Ctn.
1-3/5 bu. standard box
4/5 bu. standard box
Miscellaneous Containersa
Total Packed Oranges
Grapefruit:
4/5 bu. fiberboard box
1-3/5 bu. wirebound box
4/5 bu. half Bruce box
5-lb. poly. bag in Master Ctn.
8-lb. mesh bag
Bulk in truck
5-lb. mesh bag
4/5 bu. wirebound export
Field box
5-lb. mesh bag in Master Ctn.
8-lb. poly. bag in Master Ctn.
8-lb. mesh bag in Master Ctn.
5-lb. mesh bag in Master Bruce
8-lb. mesh bag in Master Bruce
1/4 box mesh bag
1-3/5 bu. standard box
1-3/5 bu. wirebound export
4/5 bu. standard box
b
Miscellaneous Containers
Total Packed Grapefruit


1,921,201
1,547,827
880,966
346,018
342,027
280,640
173,243
102,654
67,617
57,521
40,463
21,606
18,852
9,883
7,919
3,863
1,858
839
8,998
5,833,995


2,634,689
2,349,612
837,666
390,346
220,765
160,298
130,695
59,317
36,804
31,367
21,318
16,187
8,249
7,826
4,859
2,478
2,319
692
19,657
6,935,144


49,262
53,373
23, 83
26,617
17,101
10,794
9,625
4,666
2,940
7,190
1,839
7,202
3,142
760
2,640
966
310
279
.. *


67,556
78,320
21,479
21,686
9,598
10,019
5, 027
11,863
4,600
1,494
1,776
1,245
1,650
1,565
540
413
773
231
.. *f


$1.4518
1.1247
1.3328
1.6235
.6507
1.7011
1.7084
1.4411
2.1239
.6050
1.2593
1.3256
2.2453
1.8488
1.9032
1.5833
1.5546
2.1462


1.2042
1.0010
1.3270
1.6277
1.3301
.6049
1.6448
1.2352
.4977
2.0140
1.5007
1.6881
2.1104
1.9435
1.1873
1.4931
1.1539
2.0296
*..











TABLE 2.--Number of firms, volume of citrus fruit handled and total packing and
selling cost by type of container, 42 packinghouses, Florida, 1960-61 (Cont'd)
i ... .. .. i


J Volume (1-3/5 bu. equiv.) Total


Total


Average
Per Firm


Packing and
Selling Cost
Per Box


Tangerines:
4/5 bu. half Bruce box
4/5 bu. wirebound flat box
Bulk in truck
Field box
4/5 bu. fiberboard carton
1-3/5 bu. wirebound box
Miscellaneous Containersc
Total Packed Tangerines
Limes, Lemons, Kumquats:
Miscellaneous Containers
Total Packed Fruit
Bulk Fruit through House to Cannery:
Oranges
Grapefruit
Tangerines
Total Bulk through House

Direct, Grove to Cannery
Packed Fruit Purchased


TOTAL VOLUME ALL FRUIT


877,642
499,615
11,362
10,311
6,503
872
23,684
1,429,989


469
14,199,597


39 3,611,108
40 2,524,976
34 520,322
6,656,406
32 7,801,191
4 39,662

28,696, 856


31,344
49, 961
1,623
1,473
3,251
291
.


$1.5689
1.6754
.8167
.8061
1.5241
1.2885
0..


234 $2.2104



92,593 $0.2182
63,124 .1719
15,304 .2937


243,787 $0.0721
9,916 .0821


a
Includes minor unidentified containers, and in addition, for
half strap, 1-3/5 bu. wirebound export, bushel basket.
bIncludes minor unidentified containers, and in addition, for
4/5 bu. wirebound flat, 4/5 bu. fiberboard carton export.


oranges: 1/2 box bag,

grapefruit: 1/2 box bag,


CMiscellaneous containers for tangerines include: 3-lb. mesh bag in master carton,
8-lb. mesh bag, 5-lb. poly. bag in master carton.


Container


No. of
Firms


I ---


_ ~_~~ .~ --


-








TABLE 3,--Weighted :.~ger1 costs of packing and selling Florida ORANGES, per 1-3/5
bushel eg-.. ~.ialert, by type of conhtiner, 42 packinghouses, 190-6

1113/5 bu. 4/5 bu 4/5 bu. 4/5 bu. 8-lb. 5-lb.
Type of Container Wirebound Half Bruce Wirebound Fiberboard Mesh Mesh
Be, Box Fhit Box Box Bag Bag


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 as.
Taxes and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrative
Selling
Other items
Total Packing and Selling


29 39 13 -38 22 26

53,373 49,262 T2 A617 23,183 4,666 10,794
Costs per 1-3/5 Bushel

$0.3864 $0.5787 $0.6410 $0.4722 $0.5665 $0.7711
.0162 .0271 .0303 .0096 .0154 .0166
$0.4026 $0,6058 $0.6713 $0.4818d $0.5819 $0.7877

$0,0306 $0.0369 $0.0445 $0.0398 $0.0424 $0.0425
.0382 .0666 .0659 .0540 .0053 .0089
.0726 .0954 .1088 .1028 .1136 .1212
.0768 .001 .1125 .0968 .1149 .1358
.0518 .0715 .0869 .0753 .0867 .0946
.0238 .0297 .0360 .0311 .0311 .0335
$0,2938 $0.4002 $0.4546 $0.3998 $0.3940 $0.4365

$0o0144 $006 016 $0.0266 $0.0176 $0o0234 $0.0227
.0492 .0489 .0567 .0575 .0590 .0644
.0112 .0109 .0274 .0145 .0133 .0135
$0.0748 $0.0764 $0.1107 $0.0896 $0,0957 $0.1006

$0.0097 $0.0132 $0.0192 $0.0155 $0.0109 $0.0135
.0090 .0110 .0180 .0124 .0112 .0134
.0331 .0367 .0366 .0554 .0407 .0429
.0002 .0001 0 0 .0001 0
$0.0520 $0.0610 $0.0738 $0.0833 $0.0629 $0.0698
$0.8232 $1.1434 $1.3104 $1.0545 $1.1345 $1.3946
.0692 .0643 .0857 .0575 .0928 .0834
.0728 .0744 .0813 .0653 .0690 .0733
.1595 .1697 .1461 .1555 .1448 .1498
$1.1247 $1.4518 $1.6235 $1.3328 $1.4411 $1.7011


Administrative expense includes management and office salaries, office expense,
auto and travel, interest, telephone and telegraph.
bSelling includes saes 'li::e?. travel, telephone and telegraph but excludes
brokerage, commission and auction charges
cOther items include Florida citrus .:t..eT; .;.g tax, Federal-State inspection, nd
testing, Growers Administrative Committee and Florida Citrus Mutual .:-e .:ment:. degreening,
precooling, color-add and wax.
dMaterials cost for East Coast houses, $0.5571; other houses, $0.4348.









TABLE 3.--Weighted average costs of packing and selling Florida ORANGES, per 1-3/5
bushel equivalent, by type of container, 42 packinghouses,, 1960-61, Cont'd

8-Ib.Bag 5-b B 5-lba -lb.Poly. Bulk Bulk in ulk through
Type of Container in Master in Mater Bag in Mas- in Field Houseto
Carton Carton ter Carton Truck ox 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, comp. ins.
Total labor
Other direct operating:
Power, lights, water
Repairs-b ldgs., 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


760 2,940 9,625 17,101 7,190 92,593
Costs per 1-3/5 Bushel

$0.9466 $1.2012 $0.7614 $ ... $ ... $ .
.0103 .0103 .0167 .0035 .0o oo0
$0.9569 $1.2115 $0.7781 $0.0035 $ oo. $ .

$0.0405 $0.0386 $0.0401 $0.0287 $0.0233 $0.0303
.0433 .0470 .0493 .0060 .0005 .0o
.1092 .1092 .1024 .0793 .0820 .0448
.1273 .1509 .1399 .0651 .0705 .
.0777 .0822 .0735 .0326 .0589 .0029
.0357 .0349 .0321 .0168 .0226 .0088
$0.4337 $0.4628 $0.4373 $0.2285 $0.2578 $0.0868

$0.0215 $0.0192 $0.0217 $0.0118 $0.0118 $0.0059
.0615 .0668 .0637 .0372 .0380 .0283
.0115 .0115 .0117 .0072 .00117 .0034
$0.0945 $0.0975 $0.0971 $0.0562 $0.0615 $0.0376

$0.0118 $0.0138 $0.0141 $0.0091 $0,0060 $0.0069
.0119 .0099 .0094 .0057 .0074 .0045
.0385 .0358 .0674 .0258 .0338 .0148
... .0001 00..o... 0007
$0.0622 $0.0596 $0.0909 $0.0406 $0.0479 $0.0262
$1.5473 $1.8314 $1.4034 $0.3288 $0.3672 $0.1506
.0795 .0673 .0610 .0734 .0539 .0504
.0682 .0693 .0761 .0710 .0710 .0091
.1538 .1559 .1679 .1775 o11129 .0081
$1.8488 $2.1239 $1.7084 $0.6507 $0.6050 $0.2182


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, Fedenal-Sfate ;- pe-;l, n nd
testing, Growers Administrative Committee and FNorida Citrus Mutual asses ments, degreening,
precooling, color-add and wax.








TABLE 4.--Weighted average costs of packing and selling Florida GRAPEFRUIT, per 1-3/5
bushel equivalent, by type of container, 42 packinghouses, 1960-61


Type of Container


1-3/5bu. 4/5 bu.
Wirebound IHf Bruce
Box Box


4/5 bu.
Fiberboard
Box


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-b dgs., 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


30


39 23 26


78,320 21,479 67,556 9,598 5,027 1,245
Costs per 1-3/5 Bushel

$0,3915 $0.5764 $0,5113 $0.5711 $0.7707 $0.9168
.0160 .0246 .0080 .0155 .0136 .0106
$0.4075 $0.6010' $0.5193d $0.5866 $0.7843 $0.9274

$0.0280 $0.0336 $0.0335 $0.0390 $0.0444 $0.0406
.0395 .0720 .0488 .0051 .0073 .0437
.0501 .0657 .0682 .0945 .1171 .0980
.0635 .0766 .0798 .0942 .1223 .0887
.0453 .0724 .0492 .0812 .1077 .0762
.0189 .0259 .0225 .0268 .0318 .0294
$0.2453 $0.3462 $0.3020 $0.3408 $0.4306 $0.3766

$0.0110 $0.0141 $0.0097 $0.0211 $0.0254 $0.0197
.0345 .0400 .0405 .0513 .0517 .0535
.0077 .0101 .0106 .0104 .0131 .0065
$0.0532 $0.0642 $0.0608 $0.0828 $0.0902 $0.0797

$0.0076 $0.0121 $0.0097 $0.0079 $0.0108 $0.0105
.0070 .0104 .0072 .0098 .0128 .0102
.0284 .0322 .0261 .0386 .0460 .0339
.0001 .0002 ... .0001 .0001 o0001
$0.0431 $0.0549 $0.0430 $0.0564 $0.0697 $0.0547
$0.7491 $1.0663 $0.9251 $1.0666 $1.3748 $1.4384
.0665 .0614 .0612 .0775 .0760 .0713
.0542 .0581 .0573 .0568 .0627 .0476
.1312 .1412 .1606 .1292 .1313 .1308
$1.0010 $1.3270 $1.2042 $1.3301 $1.6448 $1.6881


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,
precoolig, color-add and wax.
dMaterials cost for East Coast houses, $0.5387; other houses, $0.4306o


I ~' p II









TABLE 4.--Weighted average costs of packing and selling Florida GRAPEFRUIT, per 1-3/5
bushel equivalent, by type of container, 42 packinghouses, 1960-6, Cont0d

5-Ib. Bag 8-lb. Poly. Bag5-lb. Poly. Bag Bulk 3ulkthrough
Type of Container in Master in Master in Master in House to
Carton Carton Carton Field 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, comp. ins.
Total labor
Other direct operating:
Power, lights,water
Repairs-b dgs., 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


1,494 1,776 21,686 4,600 63,124
Costs per 1-3/5 Bushel

$1.1852 $0.7318 $0.7472 $ $ 000
.0105 .0122 .0157 ...
$1.1957 $0.7440 $0.7629 $ $.. $ .o.

$0.0379 $0.0343 $0.0463 $0.0193 $0.0255
.0522 .0418 .0433 .0018 ooo
.0913 .0894 .1091 .0509 .0293
.1250 .1040 .1205 .0505 ooo
.0854 .0707 .0811 .0476 .0013
.0265 .0275 .0330 .0169 .0058
$0.4183 $0.3677 $0.4333 $0.1870 $0.0619

$0.0168 $0.0246 $0,0232 $0o0080 $0.0032
.0488 .0407 .0648 .0315 .0193
.0116 .0088 .0093 .0071 .0030
$0.0772 $0.0741 $0.0973 $0.0466 $0.0255

$0.0115 $0.0073 $0.0102 $0.0031 $0.0049
.0083 .0098 .0104 .0046 .0028
.0293 .0364 .0614 .0293 .0105
.0001 ... ... .0005 .0001
$0.0492 $0.0535 $0.0820 $0.0375 $0.0183
$1.7404 $1.2393 $1.3755 $0.2711 $0.1057
.0736 .0739 .0677 .0441 .0515
.0625 .0598 .0495 .0654 .0069
.1375 .1277 .1350 .1171 .0078
$2.0140 $1.5007 $1.6277 $0.4977 $0.1719


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,
precooling, color-add and wax.








TABLE 5.--Weighted average costs of packing and selling Florida TANGERINES, GROVE-
TO-CANNERY FRUiT and PACKED FRUIT PURCHASED, per 1-3/5 buheequivalent
packinghouses, 1960-61

Tangerines All Types of Fruit
4/5 bu. 4/5 bu. Bulk Bulk through Direct Packed
Type of Container Half Bruce Wirebound in House to Grove-to- Fruit
Box I Flat Box Truck 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-b dgs., equip.
Misc, supplies and exp.
Total other direct
Indirect operating:
Insurance-fire and cas.
Taxes and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrative0
Selling
Other items
Total Packing and Selling


31,344 49,961 1,623 15,304 243,787 9,916
Costs per 1-3/5 Bushel

$0.5606 $0.6206 $ ... $ ... $ ... $
.0469 .0271 ... ... ... ...
$0.6075 $0.6477 $ ... $ ... $ .o. $ oo

$0.0429 $0.0477 $0.0339 $0.0349 $0.0011 $ .
.0650 .0678 ... .... .. 0oo
.1104 .1294 .1497 .0602 .0013 .
.1221 .1312 .1220 .. ... 0..
.0951 .0952 .0351 .0050 ... .0005
.0352 .0437 .0246 .0133 .0002 0 0
$0.4707 $0,5150 $0.3653 $0.1134 $0.0026 $0.0005

$0.0213 $0.0314 $0.0106 $0.0101 $ ... $ ...
.0754 .0648 .0413 .0520 .0045 ...
.0115 .0183 .0037 .0054 ..0 e 00
$0.1082 $0.1145 $0.0556 $0.0675 $0.0045 $ o..

$0.0150 $0.0221 $0.0182 $0.0095 $0.0003 $ ...
.0146 .0189 .0071 .0071 .0002 ..o
.0581 .0593 .0134 .0323 .0016 ..o
.0001 .o. ... .0001 .0001 0o.
$0.0878 $0.1003 $0.0387 $0.0490 $0.0022 $ 0
$1.2742 $1.3775 $0.4596 $0.2299 $0.0093 $0.0005
.0564 .0724 .0473 .0509 .0488 .0405
.0746 .0678 .0756 .0048 .0067 .0377
.1637 .1577 .2342 .0081 .0073 .0034
$1.5689 $1.6754 $0.8167 $0.2937 $0.0721 $0,0821


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,
precooling, color-add and wax.







12

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

purchased also are shown in Table 5. These operations are not separated by

kind of fruit, but represent a mixture of all kinds.

Costs for packs handled by the East Coast houses are shown separately

from the other houses in Tables 6 and 7.

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 vari-

ations 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 3 and 4).

For oranges, 29 houses had an average container cost of $0.3864, and for

grapefruit, 30 houses, not identical with the orange houses, had a cost of

$0.3915, yet the container was the same for each type of fruit. Other items

of cost show similar small variations. The average costs shown in each cate-

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

cost of each item for all houses was 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 had somewhat 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 29 firms was $1.151 or 2.6 cents

higher than the weighted average of $1.125 as shown in Table 3. Sixteen firms







13

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

The cost of selling as shown in Tables 3, 4 and 5 includes only 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 .12. 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 $0.40 per box. The

average labor expense was $0.29.

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

bushe! half Bruce box was $1 .45 and in the 4/5 bushel wirebound flat box $1.62.

Packing and selling costs for the 4/5 bushel fiberboard box were $1.33; however,

the East Coast houses used a higher cost container which is included in this average.

(See Table 6 for separation of costs for East Coast and other houses). Oranges

packed in 8-pound mesh bags averaged $1.44 to pack and sell and 5-pound mesh

bags cost $1 .70. Both materials and labor costs were more per 1-3/5 bushel

equivalent for the 5-pound than for the 8-pound bag.

The most expensive pack for oranges in common use in 1960-61 was the

5-pound mesh bag in master cartons. Since it required 2 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 $2.12 per 1-3/5 bushel equivalent. The average







14

cost of the 8-pound mesh bag in master carton was $1.85 and for 5-pound poly-

ethylene bags in master cartons, $1.71.

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

was $0.65 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 excep-

tion 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 to this fruit by packinghouses.

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 a minimum earning per hour, when bulk-in-truck is handled packers

may not earn this amount on a piece-rate basis,

Oranges packed and sold in field boxes cost an average of $0.60 per

box for 8 firms. Bulk oranges through-house-to-cannery (eliminations) averaged

$0.22 per box. 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 grape-

fruit are shown in Table 4. The total cost per 1-3/5 bushel equivalent for packing

and selling grapefruit was $1.00 for the 1-3/5 bushel wirebound box, 65 percent

of which was materials and labor costs. Packing and selling costs were $1.33 for








15

the 4/5 bushel half Bruce box and $1.204 for the 4/5 bushel fiberboard box;

$1.33 for the 8-pound mesh bag; $1.64 for the 5-pound mesh bag; $1.69 for

the 8-pound bag in master carton; $2.01 for the 5-pound mesh bag in master

carton; $1.50 fo" the 8-pound polyethylene bag in master carton and $1.63

for the 5-pound polyethylene bag in master carton. Grapefruit sold bulk in

field box cost $0.50 per box and bulk grapefruit through-house-to-cannery

(eliminations) averaged $0.17 per box.

Tangerines.--The season weighted average costs of packing and

selling tangerines are shown in Table 5. Two types of the 4/5 bushel

wirebound box were the containers in most common use in 1960-61. The

1-3/5 bushel equivalent cost for packing and selling tangerines in the 4/5

bushel half Bruce box was $1.57 and in the 4/5 bushel wirebound flat box,

$1.68.

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, and the labor was about 69 percent of the total cost of packing and

selling. Bulk tangerines through-house-to-cannery averaged $0.29 per box

for packing and selling.

Direct grove-to-cannery fruit and packed fruit purchased.-- Packing-

house expenses for fruit going direct from the grove to the cannery averaged

only $0.072 per box (Table 5). There were no materials or packinghouse

labor involved except that several firms set off some fruit in boxes onto the

packinghouse platform and had a small amount of receiving, trucking labor

4Costs for containers were different for East Coast and other houses
(see Table 7 for separation by areas).










and supervisory labor.

The cost of handling packed fruit purchased averaged $0.082 per box. The

principal costs involved were administrative and selling.

Costs of Packing and Selling, East Coast and Other Firms

In Tables 6 and 7, packing and selling costs are shown separately for East

Coast houses and for those located in the Interior or West Coast sections. There

are differences in operating methods between the two groups which have diverse

effects on costs. In Table 1 it may be seen that of the houses in this sample, the

East Coast firms averaged somewhat smaller in total volume of fruit handled, but

ran a larger percentage of their total fruit through the house and got a higher per-

centage packout than the other group of packinghouses. The packed fruit of the

East Coast houses consisted of 71 percent grapefruit, 28 percent oranges and less

than 1 percent tangerines; the other houses had 42 percent grapefruit, 45 percent

oranges and 13 percent tangerines. The East Coast houses also confined their

1960-61 pack to 2 containers almost exclusively--the 4/5 bushel half Bruce and

the 4/5 bushel fiberboard box. The fiberboard box used was different from that

used by the other houses and cost more (Table 6). The only other container used

by the East Coast houses in this sample was the 5-pound polyethylene bag in master

cartons, costs for which are not shown since it was used by only one firm.


Variations in Packing and Selling Cost Among Firms

Oranges.-- There was a wide 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 5-cent intervals for 6 types of








TABLE 6.--Weighted average costs of packing and selling Florida ORANGES, per 1-3/5
bushel equivalent, 10 East Coast and 32 other packinghouses, 1960-61

4/5 bu. 4/5 bu. Through House
Type of Container Half Bruce Fiberboard Box to Cannery
East Coast Other East Coast Other East Coast Other


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
Administrative
Selling
Other items
Total Packing and Selling


58,513 46,874 42,297 18,086 42,949 107,485
Costs per 1-3/5 Bushel

$0.6034 $0.5707 $0.5505 $0.4234 $ ... $ .
.0310 .0259 .0066 .0114 ... ..
$0.6344 $0.5966 $0.5571 $0.4348 $ ... $ ...

$0.0338 $0.0378 $0.0411 $0.0390 $0.0317 $0.0301
.0678 .0662 .0421 .0615
.1096 .0908 .1172 .0938 .0589 .0431
.1168 .0948 .1092 .0890 .
.0431 .0807 .0607 .0844 .0034 .0029
.0287 .0300 .0346 .0290 .0079 .0089
$0.3998 $0.4003 $0.4049 $0.3967 $0.1019 $0.0850

$0.0142 $0.0174 $0.0137 $0.0201 $0.0072 $0.0057
.0460 .0498 .0667 .0518 .0331 .0277
.0075 .0120 .0158 .0136 .0037 .0035
$0.0677 $0.0792 $0.0962 $0.0855 $0.0440 $0.0369


$0.0123
.0090
.0456

$0.0669
$0.1688
.0664
.0705
.1767
$1.4824


$0.0134
.0117
.0339
.0001
$0.0591
$0.1352
.0636
.0756
.1675
$1.4419


$0.0162
.0134
.0730

$0.1026
$0.1608
.0386
.0508
.1506
$1.4008


$0.0150
.0117
.0444
.0001
$0.0712
$0.9882
.0693
.0745
.1585
$1.2905


$0.0124
.0054
.0181

$0.0359
$0.1818
.0544
.0163
.0054
$0.2579


$0.0062
.0044
.0144

$0.0250
$0.1469
.0499
.0082
.0085
$1.2135


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, testing,
Growers Administrative Committee and Florida Citrus Mutual assessments, degreening,
precooling, color-add and wax.


I


I


- -







TABLE 7.--Weighted average costs of packing and selling Florida GRAPEFRUIT, per 1-3/5
bushel equivalent, 10 East Coast and 32 other packinghouses, 1960-61


Number of Packinghouses 8 31 10 29 10 30
A I


-verage 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
Administrative
Selling
Other items
Total Packing and Selling


6,766 25,753 216,310 16,262 79,186 57,604

Costs per 1-3/5 Bushel

$0.5843 $0.5759 $0.5312 $0.4202 $ ... $ ...
.0202 .0248 .0075 .0104 ... ...
$0.6045 $0.6007 $0.5387 $0.4306 $ ... $ ...

$0.0314 $0.0338 $0.0326 $0.0377 $0.0279 $0.0245
.0487 .0736 .0455 .0639 ..
.0780 .0649 .0707 .0567 .0349 .0268
.0805 .0763 .0816 .0712
.0441 .0744 .0433 .0762 .0011 .0014
.0214 .0262 .0224 .0234 .0051 .0061
$0.3041 $0.3492 $0.2961 $0.3291 $0.0690 $0.0588

$0.0066 $0.0146 $0.0089 $0.0132 $0.0032 $0.0032
.0269 .0409 .0402 .0419 .0191 .0194
.0090 .0102 .0106 .0105 .0021 .0035
$0.0425 $0.0657 $0.0597 $0.0656 $0.0244 $0.0261

$0.0110 $0.0122 $0.0097 $0.0097 $0.0069 $0.0039
.0049 .0108 .0070 .0080 .0035 .0025
.0152 .0334 .0242 .0346 .0098 .0109
... 0001 ... .0002 ... .0002
$0.0311 $0.0565 $0.0409 $0.0525 $0.0202 $0.0175
$0.9822 $0.0721 $0.9354 $0.8778 $0.1136 $0.1024
.0563 .0618 .0601 .0660 .0560 .0495
.0654 .0576 .0565 .0617 .0134 .0040
.2193 .1358 .1659 .1358 .0068 .0083
$1.3232 $1.3273 $1.2179 $1.1413 $0.1898 $0.1642


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, testing,
Growers Administrative Committee and Florida Citrus Mutual assessments, precooling, color-
add and wax.







19

containers in Table 7. For the 29 firms packing oranges in 1-3/5 bushel wirebound

boxes, the total packing and selling costs ranged from $1.01 to $1.37 per box

with 17 firms falling within the range of $1.05 to $1.19. Thirty-nine firms packing

4/5 bushel half Bruce boxes had costs between $1.27 and $1.74 with 22 in the range

of $1.35 to $1.54. Costs for the 4/5 bushel fiberboard box varied from $1.10 to

$1.62 per 1-3/5 bushel equivalent. However, this group includes the East Coast

section which had approximately 11-cent higher container costs. Costs for 22

of the 38 firms were within the range of $1.20 to $1.39.

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

$1.30 and $1.73 for 22 packinghouses of which 14 had costs between $1.35 and

$1.54. For 5-pound mesh bags, the total packing and selling cost ranged from

$1.54 to $2.05 for 26 firms of which 12 ranged from $1.60 to $1.84. Costs for

5-pound polyethylene bags in master cartons varied from $1.56 to $2.24 for 18

firms with 10 in the range of $1.65 to $1.89.

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

variations in packing and selling costs. The range for the 29 firms handling

1-3/5 bushel wirebound boxes of oranges was from $0.71 to $1.01. The packing

cost for 14 of these firms ranged from $0.80 to $0.89. The cost of packing

oranges in 4/5 bushel half Bruce boxes for 39 firms ranged from $0.99 to $1.40

and for 25 of these firms between $1.05 and $1.24. Thirty-eight houses packing

4/5 bushel fiberboard boxes had costs varying from $0.89 to $1.29 per box with

24 firms between $0.90 and $1.09. Twenty-two firms packing the 8-pound mesh

bag had packing costs from $1.04 to $1.38 with 13 firms with costs from $1.05

to $1.19.





20

TABLE 7.--Variation in the cost per 1-3/5 bushel box equivalent of packing and selling
Florida ORANGES, by type of container, 42 packinghouses, 1960-61

Cost Per 1-3/5 bu. 4/5 bu. 4/5 bu. 8-lb. 5-lb. 5-lb. Poly.
1-3/5 Bushel Wirebound Half Bruce Fiberboard Mesh Mesh Bag in
Equivalent Box Box Box Bag Bag Master Carton

--------------------Number of Packinghouses---------------
Packing and Selling
$1.00 $1.04 5
1.05- 1.09 5 ..
1.10- 1.14 8 .. 4
1.15- 1.19 4 .. 2
1.20- 1.24 2 .. 4 ..
1.25- 1.29 1 2 7 .....
1.30- 1.34 1 5 5 3 ...
1.35- 1.39 3 2 6 5 ...
1.40 '1.44 .. 8 4 4
1.45- 1.49 .. 5 4 2
1.50- 1.54 .. 7 1 3 1
1.55- 1.59 .. 4 .. 2 6 1
1.60- 1.64 .. 3 1 1 4 2
1.65- 1.69 .. 2 .. 1 1 3
1.70- 1.74 .. 1 .. 1 3 2
1.75- 1.79 .. .... .. 3 2
1.80- 1.84 .. .... 1 1
1.85- 1.89 .. ...... 2 2
1.90- 1.94 ........ 4 1
1.95 and over .. 1 4
Total number of firms 29 39 38 22 26 18
Packing
$0.70 $0.74 2 ......
0.75- 0.79 8 ......
0.80- 0.84 7 .. 2 .....
0.85- 0.89 7 .. 3 ..
0.90- 0.94 3 .. 10 ..
0.95- 0.99 1 2 2 ..
1.00- 1.04 1 2 8 2
1.05- 1.09 .. 8 4 7
1.10- 1.14 .. 5 2 2 ...
1.15- 1.19 .. 6 4 4 ...
1.20- 1.24 .. 6 1 2
1.25- 1.29 .. 4 2 3 6
1.30- 1.34 .. 2 .. 1 5 4
1.35- 1.39 .. 4 .. 1 3 2
1.40- 1.44 .... .... 1 4
1.45- 1.49 .... .... 3 1
1.50- .1.54 .... .... 2 2
1.55 and over .. ...... 6 5
Total number of firms 29 39 38 22 26 18







21

The spread in packing cost for 5-pound mesh bags for 26 firms was between

$1.26 and $1.69 with 14 firms included within the cost interval of $1.30 to $1.54.

For the 18 firms packing oranges in 5-pound polyethylene bags in master cartons,

the packing cost ranged from $1.32 to $2.09 and 9 of these firms had costs between

$1.35 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 30 firms using 1-3/5 bushel

wirebound boxes had costs which varied between $0.89 and $1.27 for packing and

selling each box as shown by data in Table 8. Of these firms, 17 had costs between

$0.95 and $1.09. For the 4/5 bushel half Bruce box, 39 firms had total packing

and selling costs ranging between $1.15 and $1.58. Of these, 20 had costs from

$1.25 to $1.39. Thirty-nine firms using the 4/5 bushel fiberboard box had costs

ranging from $0.98 to $1.45 per box with 19 firms between $1.10 and $1.24. For

the 8-pound mesh bag, 23 houses had costs ranging from $1.19 to $1.63 per box with

15 of these between $1.20 and $1 .44.

The packing and selling costs for grapefruit in 5-pound mesh bags were

from $1.38 to $2.06 for 26 firms with 17 firms between $1.45 and $1.74. For

5-pound polyethylene bags in master cartons, 18 firms ranged from $1.51 to $2.02

with 10 firms falling between $1.55 and $1.79 per 1-3/5 bushel equivalent.

Packing costs only for grapefruit in 1-3/5 bushel wirebound boxes for 30

firms varied from $0.62 to $0.93. Thirteen of these firms ranged between

$0.70 and $0.79. Thirty-nine packinghouses had packing costs ranging from







TABLE 8.--Variation in the cost per 1-3/5 bushel box equivalent of packing and selling
Florida GRAPEFRUIT, by type of container, 42 packinghouses, 1960-61


I
$


















T


Cost Per 1-3/5 bu. 4/5 bu. 4/5 bu. 8-lb. 5-lb. 5-lb. Poly.
-3/5 Bushel Wirebound Half Bruce Fiberboard Mesh Mesh Bag in
Equivalent Box Box Box Bag Bag Master Carton
--------------------Number of Packinghouses------------
Packing and Selling
Jnder $0.90 2 ..
0.90- 0.94 5 .......
0,95- 0.99 4 .. 1 ..
1.00- 1.04 6 .. 5
1.05- 1.09 7 .. 3 ....
1.10- 1.14 2 1 7 ...
1.15- 1.19 1 3 5 2 ..
1.20- 1.24 1 6 7 5 ...
1.25- 1.29 2 5 6 3 ..
1.30- 1,34 .. 8 2 3
1.35- 1.39 .. 7 1 3 2
1.40- 1.44 .. 2 1 1 2
1.45- 1.49 .. 3 1 1 6
1.50- 1.54 .. 3 .. 3 3 4
1.55- 1.59 .. 1 .. 1 1 4
1.60- 1.64 ...... 1 2
1.65- 1.69 .... .. 2 3
1.70- 1 .74 ..... 3 1
1.75 and over ........ 5 6
otal number of firms 30 39 39 23 26 18


Packing
Under $0.65 2 ....
$0.65- 0.69 6 .....
0.70- 0.74 9 .. 2
0.75- 0.79 4 .. 8 ..
0.80- 0.84 7 .. 5 1 ..
0.85- 0,89 1 1 5
0.90- 0.94 1 8 7 4.
0.95- 0.99 .. 6 5 3 ..
1.00- 1.04 .. 7 2 5 1
1.05- 1.09 .. 6 4 2
1.10- 1.14 .. 1 1 4 1
1.15- .19 .. 7 .. 2 4
1.20- 1.24 .. 2 .... 4 1
1.25- 1.29 .. 1 .. 1 4 5
1.30- 1.34 .. .... 1 3
1,35- 1.39 ... .. 1 3 2
1.40- 1.44 .. .. .. 3
1.45 and over .. ...... 5 7
Total number of firms 30 39 39 23 26 18







23

$0.90 to $1.26 for the 4/5 bushel half Bruce box with 20 of these firms ranging

from $0.95 to $1.14. The 39 firms packing the 4/5 bushel fiberboard box were

within the cost range of $0,73 and $1.12 with 22 of the firms falling between

$0.80 and $0.99. Packing costs for the 8-pound mesh bag varied from $0.82

to $1.38 per box for 23 firms with 14 between $0.95 and $1.14.

The cost of packing in 5-pound mesh bags for 26 firms ranged from $1.03

to $1.77 per box with 15 houses between $1.20 and $1.44. Variation in cost for

the 18 firms packing grapefruit in 5-pound polyethylene bags in master cartons

ranged from $1.22 to $1,82. Costs for 7 houses fell within the range of $1.30 to

$1.49.

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

equivalent ranged from $1 40 to $1 .89 for the 4/5 bushel half Bruce box for 28

firms; and for 4/5 bushel wirebound flat boxes from $1 .41 to $2,00 for 10 firms

(Table 9).

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

varied from $1.10 to $1.54 for 4/5 bushel hn:f Bruce boxes.. and from $1.11 to

$1.57 for the 4/5 bushel wirebound flat box.

Relationship of Seasonal Volume to Average
Cost of Packing and Selling

The data indicate some relationship between the seasonal volume of fruit

handled and the total packing and selling cost. Houses with the larger volumes

tended to have lower unit costs. However, differences in total cost favoring

larger houses have been less consistent and pronounced for several seasons than

in some previous years.








24

TABLE 9.--Variation in the cost per 1-3/5 bushel box equivalent of packing and
selling Florida TANGERINES, by type of container, 42 packinghouses, 1960-61

Cost Per 4/5 bu. 4/5 bushel
1-3/5 Bushel Half Bruce Wirebound Flat
Equivalent Box Box
-------- Number of Packinghouses-------
Packing and Selling
Under $1.40 1
$1.40- 1.44 1 2
1.45- 1.49 3
1.50- 1.54 4 1
1.55- 1.59 4
1.60- 1.64 1 1
1.65- 1.69 6
1.70- 1.74 4 1
1.75- 1.79 2 3
1.80 and over 2 2
Total number of firms 28 10
Packing
Under $1.15 2 1
$1.15- 1.19 4 2
1.20- 1.24 1
1.25- 1.29 2
1.30- 1.34 5
1.35- 1.39 4 3
1.40- .1.44 3 2
1.45- 1.49 3 1
1.50- 1.54 4
* 1.55 and over .. 1
Total number of firms 28 10

Packinghouses in the smallest volume group (under 200, 000 boxes) had costs

for packing and selling oranges in 1-3/5 bushel wirebound boxes of 7 cents more

than the average for all houses. Those in the largest volume group (over 700,000

boxes) had costs 2 cents lower than the average. For packing and selling grape-

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








25

costs of only 1 cent above the average cost, while those in the largest volume

group had costs about 2 cents less than the average.

The small volume group had only 4 houses packing oranges and 5 handling

grapefruit. The next larger group (200, 000 to 399,999 boxes), representing more

packinghouses had total packing and selling costs for both oranges and grapefruit

of 9 cents above the average.

If the items of cost are examined by size group, the smaller houses will

be found to have lower costs sometimes than the larger ones. Materials cost did

not seem to vary directly with size, and labor costs were not closely related to

volume by groups. The other direct operating costs and the indirect or fixed costs

did, in general, decrease by size groups.

There were packinghouses that had high as well as low costs in all volume

groups. This variation within groups is shown in Table 10 for 1-3/5 bushel wire-

bound boxes and indicates that the larger volume groups contain more houses with

low costs than the smaller seasonal volume groups.

TABLE 10.--Variation in the cost of packing and selling Florida citrus fruit in
1-3/5 bushel wirebound boxes, by volume groups, 42 packinghouses, 1960-61

Number of Boxes Handled (1-3/5 bu. Equivalent)
Cost per 1-3/5 Bushel Under 200,000 400,000 700,000 All
200,000 399,999 699,999 and over Volumes
ORANGES
------------------ Number of Firms -----------------
$0.90 $0.99 .. ......
1.00- 1.09 1 1 4 4 10
1.10- 1.19 2 3 5 2 12
1.20- 1.29 1 1 .. 1 3
1.30 and over .. 3 1 .. 4
Total 4 8 10 7 29
Wtd. average cost $1.19 $1.21 $1.12 $1.10 $1.12







26

TABLE 10.--Variation in the cost of packing and selling Florida citrus fruit in 1-3/5
bushel wirebound boxes, by volume groups, 42 packinghouses, 1960-61, Cont'd

Number of Boxes Handled (1-3/5 bu. Equivalent)
Cost per 1-3/5 Bushel
Under 200,000 400,000 700,000 All
200 000 399,999 699,999 and over Volumes
GRAPEFRUIT
----------------Number of Firms--------------------
$0.80 $0.89 .. 1 1 .. 2
0.90- 0.99 1 .. 4 4 9
1.00- 1.09 4 4 3 2 13
1.10 and over .. 4 1 1 6
Total 5 9 9 7 30
Wtd. average cost $1.01 $1.09 $1.00 $0.98 $1.00

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

tant factors affecting costs may be unequally distributed in the volume groups. Some

of these are length of season or number of days operated, percent of house capacity

used, investment in packinghouse assets and physical arrangement of house and

machinery which affects 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-

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


Trend in Packing and Selling Cost


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

containers has increased most years during the past 11 seasons with minor fluctuations

(Table 11). With few exceptions costs in 1960-61 were at the highest level of the

entire period. The increases since 1950-51 were from 21 to 25 percent for each pack.










TABLE 11 .--Average total cost per 1-3/5 bushel equivalent for packing and selling
Florida citrus sold for fresh consumption, 1950-51 through 1960-61a

Type of Pack


5-lb. 4/5 bu. 4/5 bu.
Mesh Bag IFiberboard Box HalfBruceBox


$1.1490
1.1069
1.2067
1.2335
1.2609
1.2322
1.2639
1.3644
1.4086
1.3770
1.4411

$1.0849
1.0467
1.1231
1.1659
1.1891
1.1724
1.2188
1.3089
1.2972
1.2668
1.3301


4/5 bu.


ORANG ES
$1.4086
1.3444
1.4469
1.4597
1.5005
1.4967
1.5278
1.6464
1.6682
1.6425
1.7011
GRAPEFRUIT
$1.3201
1.2670
1.3233
1.3666
1.3964
1.4264
1.4730
1.5805
1.6132
1.5785
1.6448
TANGERINES


.
1.0088
1.0508
1.0939
1.1551
1.2150
1.2247
1.2648
1.3328

$ ...


.9058
.9277
1.0000
1.0549
1.1057
1.1305
1.1804
1.2042


...





1.2996
1.4069
1.4430
1.4189
1.4518

..



re.
...
1.1803
1.2539
1.2790
1.2626
1.3270


1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61


Wirebound Flat Half Bruce Box
$1.3563 $ ....


1.3589
1.4379
1.4373
1.4597
1.4725
1.5675
1.6277
1.6044
1.7005
1.6754


.. ..


....
1.5909
1.5534
1.5689


aNumber of houses included
1950-51 77 1952-53 43
1951-52 -67 1953-54 43


in each of the years:
1954-55 43 1956-57- 43
1955-56 42 1957-58- 42


1958-59 42
1959-60- 39
1960-61 42


1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61

1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61


$0.9166
.9111
.9530
.9355
.8863
.9603
1.0068
1.1164
1.0990
1.0782
1.1247

$0.8196
.8487
.8543
.8375
.7984
.8682
.9285
1.0077
.9719
.9462
1.0010


4/5 bu.







28

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

increased from $0.92 for the 1950-51 season to $1.12 for the 1960-61 season. The

cost of packing and selling oranges in the 8-pound mesh bag increased from $1.15

in 1950-51 to $1.44 in 1960-61; for 5-pound bags the average total packing and

selling cost changed from $1.41 to $1.70 during the period.

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

boxes increased from $0.82 in 1950-51 to $1.00 in 1960-61 with declines in several

of the intervening seasons. Cost per 1-3/5 bushel equivalent for 8-pound bags

increased from $1.08 in 1950-51 to $1.33 in 1960-61 and for 5-pound bags from

$1.32 to $1.64.

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

increased during the 11-year period from $1.36 to $1.68.














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, 1960-61 Season.

Agricultural Economics Mimeo Report No. 62-11, March, 1962.

2. Costs of Processing, Warehousing and Selling Florida Citrus Products,
1960-61 Season.

Agricultural Economics Mimeo Report No. 62-12, March, 1962.

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-eight Years of Citrus Production Costs and Returns in Florida,
1931-1959.

Agricultural Extension Service Economic Series 61-10, August, 1961

6. Twenty-seven Years of Orange Production Costs and Returns in Florida,
1931-1958.

Agricultural Extension Service Economic Series 60-2, March, 1960.

7. Cost of Planting and Developing Florida Citrus Groves Through 10
Years of Age.

Agricultural Extension Service Economic Series 59-6, September, 1959



AHS: me 4/62
Experiment Stations; Ag. Ec. 1,250