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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/UF00027603/00014
 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: 1961
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: UF00027603:00014
 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
    Costs of packing and selling, 1961-62
        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
        Page 16
        Page 17
    Variations in packing and selling cost among firms
        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
    Trend in packing and selling cost
        Page 25
        Page 26
        Page 27
    Available publications
        Page 28
Full Text


AGRICULTURAL ECONOMICS MIMEO REPORT NO. 63-9


APRIL, 1963
/O0
/^<^f-w


/20o. ?S3-



COSTS OF PACKING AND SELLING


FLORIDA FRESH CITRUS FRUITS,


1961-62


SEASON


A. H. Spurlock and H. G. Hamilton
Percent of Total

1952-53

1953-54

1954-55

1955-56

1956-57-

1957-58
1958-59

1959-60

1960-61

1961-62


Wirebound boxes/ Nailed Corrugated7
boxes boxes


A f
Mesh Film
bags bags


Type of containers used for packing Florida citrus, 1952-53 to
1961-62.
A Study Conducted with Funds Provided by the
Research and Marketing Act


/1 '


DEPARTMENT OF AGRICULTURAL ECONOMICS .,
FLORIDA AGRICULTURAL EXPERIMENT STATIONS .,
GAINESVILLE, FLORIDA

















CONTENTS


INTRODUCTION .. . . . . 1

COSTS OF PACKING AND SELLING, 1961-62 ........ ... . 3

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

Grapefruit . .... .. 17

Tangerines . . ... * * 17

Direct Grove-to-Cannery Fruit and Packed Fruit Purchased 17


VARIATIONS IN PACKING AND SELLING COST AMONG FIRMS . .. 18

Oranges . .. .. . . 18

Grapefruit . . . * . 19

Tangerines . . ... .. .. . 22


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

TREND IN PACKING AND SELLING COST .. .. .. ...... 25










COSTS OF PACKING AND SELLING FLORIDA
FRESH CITRUS FRUITS, 1961-621



Introduction


This report is based on the accounting records of 42 citrus pack-

inghouses for the citrus marketing season 1961-62. Eleven of these houses

were located in the Indian River section along the East Coast and 31 were

in the Interior and West Coast sections.

The volume packed fruit handled by the 42 packinghouses in 1961-

62 amounted to an equivalent of 18,689,749 boxes of 1-3/5 bushels, or

approximately 54 percent of the total shipment of Florida fresh citrus.2

The volume ranged from 55,000 to 1,300,000 packed boxes and averaged

445,000 boxes. Thus the sample packinghouses were considerably larger

than the average of all citrus packinghouses in the State. These

latter averaged only 206,000 boxes for licensed and registered fresh

fruit shippers who shipped fruit from 169 houses in 1961-62.2

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 12 others. Packed fruit represented 51.5 percent of

the total volume of all houses, but was 61.1 percent of the 11 East

Coast houses. Fruit going direct from grove to cannery was 27.0 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."
2
Calculated from data in 1961-62 Season Annual Report, Division of
Fruit and Vegetable Inspection, Winter Haven, Florida.










TABLE l.--Distribution of Citrus Fruit Handled by type of outlet, 42 Pack-
inghouses, 1961-62 Season1

Average Volume Percent of
Class of Fruit Total Volume Per House Total Volume
(1-3/5 bu. (1-3/5 bu.
boxes) boxes)

11 East Coast Packinghouses:
Packed fruit 4,186,206 380,564 61.1
Cannery fruit through house 1,628,029 148,003 23.8
Total through house 5,814,235 528,567 84.9

Direct from grove to
cannery and tree sales 1,035,417 94,129 15.1
Total 6,8A9,652 622,696 100.0


31 Other Packinghouses:
Packed fruit 14,503,543 467,856 49.0
Cannery fruit thru house 8,216,599 265,052 27.7
Total thru house 22,720,142 732,908 76.7

Direct from grove to
cannery and tree sales 6,885,308 222,107 23.2
Packed fruit purchased 35,247 1,137 .1
Total 29,640,697 956,152 100.0


42 Packinghouses:
Packed fruit 18,689,749 444,994 51.2
Cannery fruit thru house 9,844,628 234,396 27.0
Total thru house 28,534,377 679,390 78.2
Direct from grove to
cannery and tree sales 7,920,725 188,589 21.7
Packed fruit purchased 35,247 839 .1
Total 36,490,349 868,818 100.0

iCannery fruit through house not obtained from one house, and
grove-to-cannery not obtained from 12 houses.

of the total of all houses and 15.1 percent for the East Coast houses.

The packed fruit of the East Coast houses consisted of 75 percent grape-

fruit, 25 percent oranges with less than 1 percent tangerines; the other

houses had 38 percent grapefruit, 55 percent oranges and 7 percent tangerines.











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 percentage packout than the other group of packinghouses.

When adjusted for the packinghouse not supplying data on elimina-

tions, the packout averaged 64.3 percent of the fruit through the house

for the 41 houses; 72.0 percent for the East Coast group, and 62.2 percent

for the other houses (Table 2),


TABLE 2.--Percent of Total Fruit Received which was Packed for Shipment,
41 Packinghouses, 1961-62

East Coast Other All
Kind of Fruit Houses Houses Houses
(percent) (percent) (percent)
Oranges 63.8 60.3 60.7
Grapefruit 75.2 63.2 67.3
Tangerines 83.0 73.9 74.0
All Fruit 72.0 62.2 64.3



Costs of Packing and Selling, 1961-62

The cost data made available by the fresh citrus fruit packinghouses

showed the itemized expenses of each for 1961-62 together with the boxes

of fruit handled by kind of fruit and type of container. Distribution of

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

by the firm's own accountants for three houses and by outside accountants

for 27 additional houses. For 12 packinghouses which had only total costs by

items of expense, 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 thus a possibility of 9 different methods of cost

allocations. However, three of the private auditing firms prepared 25 of the


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











statements. Methods used for distributing materials cost, general and adminis-

trative and selling expenses appeared to be rather uniform among accountants,

but labor and other direct operating costs were allocated by various methods.

In most of the packinghouses, 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 a small amount of some

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

to the eliminated fruit were at a lower per-box rate than to the packed fruit.

In a number of the houses the eliminated fruit was charged principally with

administrative 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 3. 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 and

by few houses are not considered representative as they may reflect unusual

conditions and costs.

The 42 houses prepared a total of 57 different packs of fruit plus a

mixed group of miscellaneous containers for each type of fruit. The 1-3/5

bushel wirebound or Bruce box was the most important container used for oranges

in 1961-62 from the standpoint of total volume. This was followed by the 4/5

bushel wirebound box and the 4/5 bushel fiberboard carton. These three con-

tainers were packed with about 75 percent of the oranges. For grapefruit, the

4/5 bushel fiberboard box was the container used for the largest volume with

the 1-3/5 bushel wirebound box next in order. About 87 percent of the grape-

fruit were sold in these two packs. Almost all of the tangerines were packed

in two types of 4/5 bushel wirebound boxes. There was a difference in container











usage between East Coast and Other Houses. The 4/5 bushel fiberboard box was

the principal container for both oranges and grapefruit in the East Coast

section and with the 4/5 bushel Bruc.e carried almost all citrus packed.


TABLE 3.--Number of firms, volume of citrus fruit handled and total packing and
selling cost, by type of container, 42 packinghouses, Florida, 1961-62

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


Oranges:
1-3/5 bu. wirebound box
4/5 bu. half Bruce box
4/5 bu. fiberboard box
Bulk in truck
5-1b. mesh bag
5-lb. poly. bag in master ctn.
4/5 bu. wirebound flat box
8-lb. mesh bag
5-1b. mesh bag in master ctn.
Field box
1/4 box mesh bag
4/5 bu. wirebound box, export
8-lb. mesh bag in master ctn,
5-1b. mesh bag in master Bruce
8-1b. mesh bag in master Bruce
8-lb. poly. bag in master ctn.
1/2 box mesh bag
1-3/5 wirebound box, export
Miscellaneous Containersal
Total Packed Oranges

Grapefruit:
4/5 bu, fiberboard box
1-3/5 bu. wirebound box
5-lb. poly. bag in master ctn.
4/5 bu. half Bruce box
Bulk in truck
8-lb. mesh bag
5-1b. mesh bag
4/5 bu. wirebound box, export
8-lb. poly. bag in master ctn.
5-lb. mesh bag in master ctn.
8-lb. mesh bag in master ctn.
Field box
5-lb. mesh bag in master Bruce


29
37
39
24
27
23
9
27
20
7
27
4
16
6
6
10
1
1

41


2,873,139
2,272,947
1,606,733
580,054
438,986
395,443
237,242
200,114
99,675
74,702
47,776
44,796
31,507
28,369
16,195
11,290
6,142
2,290
7,656
8,975,056


3,735,878
2,736,352
578,672
559,548
269,888
229,674
155,998
109,999
80,847
45,102
35,748
22,144
16,541


99,074
61,431
41,198
24,169
16,259
17,193
26,360
7,411
4,984
10,671
1,769
11,199
1,969
4,728
2,699
1,129
6,142
2,290


95,792
94,357
26,303
15,120
11,734
8,834
5,778
21,999
4,756
2,374
2,103
3,163
3,308


$1.0726
1.4330
1.3188
.6276
1.6399
1.6883
1.5444
1.3584
2.0858
.4483
1.2071
1.2898
1.7929
2.0658
1.8787
1.5598
1.0016
1.0858


1.2819
.9584
1.6221
1.2862
.5566
1.2863
1.5939
1.2186
1.5267
1.9972
1.7298
.4624
2.0710










TABLE 3.--Number of firms, volume of citrus fruit handled and total packing and
selling cost, by type of container, 42 packinghouses, Florida 1961-62 (Cont'd.)
Total
No. of Total Average Packing and
Container Firms Volume Per Firm Selling Cost
Per Box
(1-3/5 bu. equiv.)


Grapefruit: (Cont'd.)
1/4 box mesh bag
8-1b. mesh bag in master Bruce
1/2 box mesh bag
5-1b. poly. bag
5-lb. poly. bag in master Bruce
Miscellaneous Containersb
Total Packed Grapefruit

Tangerines:
4/5 bu. half Bruce box
4/5 bu. wirebound flat box
Bulk in truck
4/5 bu. fiberboard ctn.
Field box
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


17
6
1
1
1

41


26
12
13
4
6
5
5
37


6,369
6,612
3,854
3,255
2,825
17,240
8,616,546


541,043
480,614
43,686
19,603
6,145
5,691
889
1,097,671


476


42 18,689,749


40
40
33
41


5,535,456
3,952,543
356,629
9,844,628


30 7,920,725
4 35,247
36,490,349


aIncludes minor unidentified containers and in addition, for oranges:
1-3/5 bu. standard box, 4/5 bu. standard box, 5-1b. poly. bag in master Bruce,
8-lb. poly. bag in master Bruce, bushel basket, half strap.


bIncludes minor unidentified containers, and in
fruit: 1-3/5 bu. std. box, 4/5 bu. wirebound flat, 4/5
port, 1-3/5 wirebound export, 8-1b. poly. bag in master
and bushel basket.


addition, for grape-
bu. fiberboard ctn. ex-
Bruce, 4/5 bu, std. box,


cMiscellaneous containers for tangerines include 8-1b.mesh bag also.


375
1,102
3,854
3,255
2,825


20,809
40,051
3,360
490
1,024
1,138


$1.0744
1.8790
.8667
1.1861
1.7564


1.5253
1.6547
.6105
1.5416
.6780
1.3026


2.3495


444,994


138,836
98,814
10,807
240,113

264,024

8,812


.1972
.1531
.2538


.0655

.0701











Itemized costs of packing and selling oranges, grapefruit and tangerines

for the 1961-62 season are given in Table 4, 5 and 6 for 42 packinghouses. These

tables show the weighted average costs for the major expense items by type of

pack, together with the number of firms packing each container and the average

volume per house using each. Only the more important packs are included.

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

purchased also are shown in Table 6. 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. The principal reason for separating the two sections

is that the East Coast houses use a heavier corrugated box which costs 10 to

11 cents more than the one used by other houses. Piece rates for packing

labor were also observed to average somewhat higher.

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

the sample. Thus, the costs shown for any container are averages of the group

of firms packing that container. Since this grouping of houses changes with

each container, some of the differences in costs between various packs are

due to variations in the sample. This can be illustrated by comparing the

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

(Tables 4 and 5). For oranges, 29 houses had an average container cost of

$0.3809, and for grapefruit, 29 houses, not quite identical with the orange

houses, had a cost of $0.3855, 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 category 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










TABLE 4.--Weighted average costs of packing and selling Florida ORANGES, per 1-3/5
bushel equivalent, by type of container, 42 packinghouses, 1961-62.

1-3/5 bu. 4/5 bu. 5-1b. 8-1b. 5-1b. mesh 8-1b. mesh
Type of Container Wirebound Wirebound mesh mesh bag in bag in
Box Flat Box bag bag master ctn. master etn.


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 & exp.
Total other direct
Indirect operating:
Insurance-fire & cas.
Taxes & licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrativea
Sellingb
Other Itemsc
Total Packing & Selling


0.8154
0.0476
0.0573
0.1523
1.0726


1.2888
0.0622
0.0617
0.1317
1.5444


1.3759
0.0575
0.0607
0.1458
1.6399


1.1035
0.0538
0.0582
0.1429
1.3584


1.8282
0.0474
0.0598
0.1504
2.0858


1.5553
0.0405
0.0517
0.1454
1.7929


aAdministrative
pense, auto and travel,


expense includes management and office
interest, telephone and telegraph.


salaries, office ex-


bSelling includes sales salaries, travel, telephone and telegraph but ex-
cludes brokerage, commission and auction charges.

cOther items include Florida citrus advertising tax, Federal-State inspec-
tion and testing, Growers Administrative Committee and Florida Citrus Mutual assess-
ments, degreening, precooling, color-add and wax.


29 9 27 27 20 16

99,074 26,360 16.259 7.411 4,984 1,969
Costs per 1-3/5 Bushel

$0.3809 $0.6313 $0.7604 $0.5548 $1.2086 $0.9821
0.0169 0.0238 0.0157 0.0148 0.0098 n.0090
0.3978 0.6551 0.7761 0.5696 1.2184 0.9911

0.0337 0.0536 0.0462 0.0433 0.0422 0.0419
0.0418 0.0749 0.0130 0.0126 0.0537 0.0482
0.0724 0.1024 0.1158 0.1060 0.1040 0.0965
0.0824 0.1072 0.1441 0.1244 0.1491 0.1325
0.0544 0.0861 0.0998 0.0851 0.0879 0.0818
0.0224 0.0318 0.0318 0.0284 0.0317 0.0321
0.3071 0.4560 0.4507 0.3998 0.4686 0.4330

0.0143 0.0238 0.0214 0.0199 0.0196 0.0200
0.0443 0.0473 0.0597 0.0530 0.0614 0.0526
0.0106 0.0260 0.0153 0.0137 0.0129 0.0130
0.0692 0.0971 0.0964 0.0866 0.0939 0.0856

0.0084 0.0217 0.0102 0.0096 0.0103 0.0080
0.0084 0.0194 0.0097 0.0092 0.0083 0.0084
0.0241 0.0365 0.0324 0.0280 0.0281 0.0286
0.0004 0.0030 0.0004 0.0007 0.0006 0.0006
0.0413 0.0806 0.0527 0.0475 0.0473 0o.L5'


-- u











TABLE 4.--Weighted average costs of packing and selling Florida ORANGES, per 1-3/5
bushel equivalent, by type of container, 42 packinghouses, 1961-62. (Cont'd.)

4/5 bu. Half Bruce Box 4/5 bu. Fiberboard Box
Type of Container East Other All East Other All
Coast Houses Houses Coast Houses Houses


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 & pack
Truck, check, load
Payroll taxes, comp. ins.


Total labor
Other direct operating:
Power, lights, water
Repairs-bldgs., equip.
Misc. suppliess & exp.
Total other direct
Indirect operating:
Insurance-fire & cas.
Taxes & licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrative
Selling"
Other items
Total Packing & Selling


8 29 37 10 29 39

41,861 66,830 61,431 60,244 34,631 41,198
Costs per 1-3/5 Bushel

$0.5940 $0,5543 $0.5602 $0.5451 $0.4347 $0.4761
0.0346 0.0310 0.0315 0.0105 0.0090 0.0096
0.6286 0.5853 0,5917 0.5556 0.4437 0.4857

0.0362 0.0433 0.0423 0.0440 0.0389 0.0409
0.0801 0.0681 0.0698 0.0409 0.0575 0.0512
0.1067 0.0962 0.0978 0.1297 0.0912 0.1056
0.1189 0,1005 0.1032 0.1045 0.0915 0.0964
0.0479 0.0891 0.0830 0.0721 0.0825 0.0786
0.0283 0.0310 0.0306 0.0308 0.0271 0.0285
0.4181 0.4282 0.4267 0.4220 0.3887 0.4012

0.0160 0.0182 0.0179 0.0155 0.0182 0.0172
0.0248 0.0577 0.0528 0.0691 0,0463 0.0548
0.0078 0.0128 0.0120 0.0152 0.0117 0.0130
0.0486 0.0887 0.0827 0.0998 0.0762 0.0850

0.0088 0.0100 0,0099 0.0151 0.0099 0.0118
0.0083 0.0098 0.0096 0.0136 0.0095 0.0111
0.0414 0.0309 0.0325 0.0596 0.0383 0.0463
-- 0.0003 0.0002 -- 0.0001 0.0001
0.0585 0.0510 0.0522 0.0883 0.0578 0.0693
1.1538 1.1532 1.1533 1,1657 0.9664 1.0412
0.0642 0.0475 0.0499 0.0453 0.0577 0.0531
0.0663 0.0614 0.0621 0.0495 0.0628 0.0578
0.2248 0.1578 0.1677 0.1942 0.1503 0.1667


1.5091 1.4199 1.4330 1.4547 1.2372 1.3188


aAdministrative expense includes management and office salaries, office ex-
pense, auto and travel, interest, telephone and telegraph.

Selling includes sales salaries, travel, telephone and telegraph, but ex-
cludes brokerage, commission and auction charges.

cOther items include Florida citrus advertising tax, Federal-State inspec-
tion and testing, Growers Administrative Committee and Florida Citrus Mutual assess-
ments, degreening, precooling, color-add and wax.










TABLE 4.--Weighted average costs of packing and selling Florida ORANGES, per 1-3/5
bushel equivalent, by type of container, 42 packinghouses, 1961-62 (Cont'd.)

5-1b.Poly. 8-1b.Poly. Bulk,thru house to Cann.
Type of Container bag in bag in Bulk in East Other All
master ctn. master ctn. truck Coast Houses HOuses


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 & pack
Truck,check,load
Payroll taxes,comp.ins.
Total labor
Other direct operating:
Power,lights,water
Repairs-bldgs.,equip.
Misc.supplies & exp.
Total other direct
Indirect operating:
Insurance-fire & cas.
Taxes & licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrativea
Selling
Other items
Total Packing & Selling


23 10 24 10 30 40

17,193 1,129 24,169 59,294 164,750 138,386
Costs per 1-3/5 Bushel

$0.7573 $0.6904 $ -- $ -- $ -- $ -
0.0157 0.0119 0.0031
0.7730 0.7023 0.0031 -- -- -

0.0449 0.0485 0.0372 0.0316 0.0278 0.0282
0.0508 0.0481 0.0097 -- -- -
0.1083 0.1118 0.0812 0.0552 0.0401 0.0418
0.1531 0.1469 0.0493 0.0096 -- 0.0010
0.0930 0.0805 0.0469 -- 0.0027 0.0024
0.0342 0.0351 0.0176 0.0073 0.0079 0.0079
0.4843 0.4709 0.2419 0.1037 0.0785 0.0813

0.0205 0.0276 0.0142 0.0065 0.0049 0.0051
0.0664 0.0443 0.0367 0.0230 0.0255 0.0252
0.0125 0.0142 0.0104 0.0031 0.0034 0.0033
0.0994 0.0861 0.0613 0.0326 0.0338 0.0336

0.0108 0.0137 0.0091 0.0082 0.0046 0.0050
0.0088 0.0119 0.0063 0.0044 0.0033 0.0034
0.0476 0.0331 0.0222 0.0128 0.0109 0.0111
0.0003 0.0014 0.0001 -- 0.002 C.0032
0.0675 0.0601 0.0377 0.0254 0.0190 0.0197
1.4242 1.3194 0.3440 0.1617 0.1313 0.1346
0.0449 0.0494 0.0536 0.0502 0.0439 0.0446
0.0614 0.0517 0.0651 0.0158 0.0088 0.0095
0.1578 0.1393 0.1649 0.0055 0.0088 0.0085
$1.6883 $1.5598 $0.6276 $0.2332 $0.1928 $0.1972


aAdministrative
pense, auto and travel,


expense includes management and office salaries, office ex-
interest, telephone and telegraph.


Selling includes sales salaries, travel, telephone and telegraph, but ex-
cludes brokerage, commission and auction charges.

other items include Florida citrus advertising tax, Federal-State inspec-
tion and testing, Growers Administrative Committee and Florida Citrus Mutual assess-
ments, degreening, precooling, color-add and wax.


- -- ---











TABLE 5.--Weighted average costs of packing and selling Florida GRAPEFRUIT, per 1-3/5
bushel equivalent, by type of container, 42 packinghouses, 1961-62.

1-3/5 bu. 5-1b. Poly. 8-1b. Poly. 5-lb. 8-lb. Bulk in
Type of Container Wirebound bag in bag in mesh mesh truck
Box master ctn. master ctn. 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 & pack
Truck,check,load
Payroll taxes,comp.ins.
Total labor
Other direct operating:
Power,lights,water
Repairs-bldgs.,equip.
Misc.supplies & exp.
Total other direct
Indirect operating:
Insurance-fire & cas.
Taxes & licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrative
Selling"
Other items
Total Packing & Selling


29 22 17 27 26 23

94,357 26,303 4,756 5,778 8,834 11,734
Costs per 1-3/5 Bushel

$0.3855 $0.7575 $0.7255 $0.7796 $0.5721 $ --
0.0159 0.0120 0.0096 0.0130 0.0141 0.0024
0.4014 0.7695 0.7351 0.7926 0.5862 0.0024

0.0299 0.0487 0.0468 0.0479 0.0407 0.0321
0.0424 0.0480 0.0479 0.0147 0.0103 0.0027
0.0503 0.1081 0.0992 0.0986 0.0889 0.0595
0.0637 0.1328 0.1161 0.1238 0.0957 0.0398
0.0472 0.0861 0.0860 0.1073 0.0805 0.0445
0.0179 0.0321 0.0301 0.0301 0.0251 0.0146
0.2514 0.4558 0.4261 0.4224 0.3412 0.1932

0.0112 0.0228 0.0215 0.0219 0.0198 0.0109
0.0322 0.0628 0.0517 0.0481 0.0474 0.0361
0.0098 0.0168 0.0156 0.0154 0.0144 0.0106
0.0532 0.1024 0.0888 0.0854 0.0816 0.0576

0.0059 0.0099 0.0087 0.0106 0.0078 0.0086
0.0053 0.0093 0.0087 0.0103 0.0081 0.0054
0.0183 0.0404 0.0274 0.0304 0.0243 0.0253
0.0004 0.0009 0.0009 0.0011 0.0007 0.0002
0.0299 0.0605 0.0457 0.0524 0.0409 0.0395
0.7359 1.3882 1.2957 1.3528 1.0499 0.2927
0.0451 0.0506 0.0503 0.0577 0.0565 0.0665
0.0483 0.0506 0.0493 0.0555 0.0533 0.0573
0.1291 0.1327 0.1314 0.1279 0.1266 0.1401
$0.9584 $1.6221 $1.5267 $1.5939 $1.2863 $0.5566


aAdministrative
pense, auto and travel,


expense includes management and office salaries, office ex-
interest, telephone and telegraph.


bSelling includes sales salaries, travel, telephone and telegraph, but ex-
cludes brokerage, commission and auction charges.
c
Other items include Florida citrus advertising tax, Federal-State inspec-
tion and testing, Growers Administrative Committee and Florida Citrus Mutual assess-
ments, degreening, precooling, color-add and wax.









TABLE 5.--Weighted average costs of packing and selling Florida GRAPEFRUIT, per 1-3/5
bushel equivalent, by type ,of container, 42 packinghouses, 1961-62. (Cont'd.)

4/5 bu. Half Bruce Box 4/5 bu. Fiberboard Box
Type of Container ,East Other All East Other All
Coast Houses Houses Coast Houses Houses


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 & pack
Truck, check, load
Payroll taxes, comp. ins
Total labor
Other direct operating:
Power, lights, water
Repairs-bldgs., equip.
Misc. supplies & exp.
Total other direct
Indirect operating:
Insurance-fire & cas.
Taxes & licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrativea
Sellingb
Other items
Total Packing & Selling


aAdministrative expense includes management and office salaries, office ex-
pense, auto and travel, interest, telephone and telegraph.

selling includes sales salaries, travel, telephone and telegraph, but ex-
cludes brokerage, commission and auction charges.

cOther items include Florida citrus advertising tax, Federal-State inspec-
tion and testing, Growers Administrative Committee and Florida Citrus Mutual assess-
ments, degreening, precooling, color-add and wax.


8 29 37 11 28 39

6,964 17,374 15,120 263,698 29,828 95,792
Costs per 1-3/5 Bushel

$0.5836 $0.5656 $0.5674 $0.5347 $0.4307 $0.5114
0.0326 0.0267 ,0.0273 0.0139 0.0090 0.0128
0.6162 0.5923 0.5947 0.5486 0.4397 0.5242

0.0361 0.0362 0.0362 0.0411 0.0388 0.0406
0.0507 0.0741 0.0717 0.0562 0.0621 0.0575
0.0789 0.0631 0.0647 0.0754 0.0595 0.0718
0.0833 0.0821 0.0823. 0.0907 0.0799 0.0883
0.0563 0.0709 0.0694 0.0635 0.0750 0.0661
0.0234 0.0238 0.0237 0.0254 0.0231 0.0249
0.3287 0.3502 0.3480 0.3523 0.3384 0.3492

0.0081 0.0138 0.0132 .0.0092 0.0137 0.0102
0.0271 0.0352 0.0345 0.0400 0.0363 0.0392.
0.0055 0.0105 0.0100 0.0099 0.0105 0.0100
0.0407 0.0595 0.0577 0.0591 0.0605 0.0594

0.0083 0.0088 0.0088 0.0139 0.0073 0.0124
0.0066 0.0071 0.0070 0.0082 0.0064 0.0078
0.0210 0.0231 0.0229 0.0363 0.0268 0.0342
-- 0.0006 0.0005 -- 0.0003 0.0001
0.0359 0.0396 0.0392 0.0584 0.0408 0.0545
1.0215 1.0416 1.0396 1.0184 0.8794 0.9873
0.0445 0.0506 0.0500 0.0579 0.0509 0.0564
0.0556 0.0504 0.0510 0.0639 0.0510 0.0610
0.2684 0.1320 0.1456 0.1901 0.1324 0.1772
1.3900 1.2746 1.2862 1.3303 1.1137 1.2819










TABLE 5.--Weighted average costs of packing and selling Florida GRAPEFRUIT, per 1-3/5
bushel equivalent, by type of container, 42 packinghouses, 1961-62 (Cont'd.)

5-lb. mesh 8-lb. mesh Bulk, through House to Cannery
Type of Container bag in bag in East Other All
master ctn. master ctn. Coadt Houses Houses


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 & pack
Truck, check, load
Payroll taxes, comp. ins.
Total labor
Other direct operating:
Power, lights, water
Repairs-bldgs., equip.
Misc. supplies & exp.
Total other direct
Indirect operating:
Insurance-fire & cas.
Taxes & licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrative
Selling"
Other items
Total Packing & Selling


$1.9972


$1.7298


$0.1823 $0.1428 $0.1531


aAdministrative expense includes management and office salaries, office ex-
pense, auto and travel, interest, telephone and telegraph.

belling includes sales salaries, travel, telephone and telegraph, but ex-
cludes brokerage, commission and auction charges.

cOther items include Florida citrus advertising tax, Federal-State inspec-
tion and testing, Growers Administrative Committee and Florida Citrus Mutual assess-
ments, degreening, precooling, color-add and wax.


-- --


--- -- ---


19 17 11 29 40

2,374 2,103 93,791 100,719 98,814
Costs per 1-3/5 Bushel

$1.2138 $1.0063 -- -- -
0.0094 0.0106 -- -- --
1.2232 1.0169 -- -- --

0.0395 0.0381 0.0303 0.0226 0.0246
0.0486 0.0450 -- -- --
0.0957 0.0890 0.0325 0.0242 0.0264
0.1249 0.0995 0.0078 -- 0.0020
0.0860 0.0737 -- 0.0018 0.0013
0.0286 0.0272 0.0054 0.0051 0.0052
0.4233 0.3725 0.0760 0.0537 0.0595

0.0213 0.0203 0.0026 0.0032 0.0031
0.0481 0.0448 0.0140 0.0170 0.0162
0.0147 0.0129 0.0014 0.0022 0.0020
0.0841 0.0780 0.0180 0.0224 0.0213

0.0086 0.0076 0.0049 0.0032 0.0036
0.0069 0.0071 0.0030 0.0024 0.0026
0.0242 0.0281 0.0075 0.0070 0.0071
0.0005 0.0003 -- 0.0004 0.0003
0.0402 0.0401 0.0154 0.0130 0.0136
1.7708 1.5075 0.1094 0.0891 0.0944
0.0458 0.0461 0.0532 0.0405 0.0439
0.0505 0.0501 0.0129 0.0037 0.0060
0.1301 0.1261 0.0068 0.0095 0.0088









TABLE 6.--Weighted average costs of packing and selling Florida TANGERINES, GROVE-TO-
CANNERY FRUIT and PACKED FRUIT PURCHASED, per 1-3/5 bushel equivalent, 42 packing-
houses, 1961-62.

Tangerines All Types of Fruit
4/5 bu. 4/5 bu. Bulk Bulk thru Direct Packed
Type of Container Half Bruce Wirebound in House to Grove-to- Fruit
Box 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 & pack
Truck,check,load
Payroll taxes,comp.ins.
Total labor
Other direct operating:
Power,lights,water
Repairs-bldgs.,equip.
Misc.supplies & exp.
Total other direct
Indirect operating:
Insurance-fire & cas.
Taxes & licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrative
Selling
Other items.
Total Packing & Selling


aAdministrative
pense, auto and travel,


expense includes management and office salaries, office ex-
interest, telephone and telegraph.


selling includes sales salaries, travel, telephone and telegraph, but ex-
cludes brokerage, commission and auction charges.

COther items include Florida citrus advertising tax,,Federal-State inspec-
tion and testing, Growers Administrative Committee andFlorida Citrus Mutual assess-
ments, degreening, precooling, color-add and wax.


26 12 13 33 30 4

20,809 40,051 3,360 10,807 264,024 8,812
Costs per 1-3/5 Bushel

$0.5485 $0.6120 $ -- $ -- $ -- $ --
0.0376 0.0265 -- --
0.5861 0.6385. -- -- -

0.0479 0.0525 0.0631 0.0343 0.0015 --
0.0671 0.0746 0.0025 -- -- --
0.1143 0.1312 0.0533 0.0609 0.0017 -
0.1374 0.1359 0.0138 0.0002 -- --
0.0929 0.1025 0.0111 0.0065 -- --
0.0358 0.0412 0.0100 0.0128 0.0002 --
0.4954 0.5379 0.1538 0.1147 0.0034 --

0.0227 0.0333 0.0084 0.0085 0.0001
0.0595 0.0839 0.0403 0.0372 0.0055 --
0.0116 0.0243 0.0097 0.0040 0.0004 --
0.0938 0.1415 0.0584 0.0497 0.0060 --

0.0125 0.0164 0.0119 0.0080 0.0003 --
0.0118 0.0147 0.0119 0.0055 0.0003 --
0.0534 0.0415 0.0891 0.0171 0.0011 --
0.0002 0.0009 -- 0.0003 -- --
0.0779 0.0735 0.1129 0.0309 0.0017 --
1.2532 1.3914 0.3251. 0.1953 0.0111 --
0.0505 0.0529 0.0345 0.0449 .0.0365 0.0470
0.0644 0.0519 0.0666 0.0048 0.0106 0.0176
0.1572 0.1585 0.1843 0.0088 0.0073 0.0055
$1.5253 $1.6547 $0.6105, $0.2538 ,$0.0655; $0.0701










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 grapefruit in the

1-3/5 bushel wirebound box by 29 firms was $0.9915 or 3.3 cents higher than

the weighted average of $0.9584 as shown in Table 4. Sixteen firms had total

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

The cost of selling as shown in Tables 4, 5 and 6 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.

In the detailed cost tables 4, 5 and 6 administrative and general

costs are condensed into one item, and a group of expenses are shown as other

items is also reduced to one line. A typical distribution of these groups

is shown below:


Administrative & General Expense:

Management and office salaries
Office supplies & expense
Auto, travel & entertainment
Operating interest
Telephone & telegraph
Miscellaneous admin.
Total Admin. & General

Other Items:

Degreening, color-add & wax
Precooling
Advertising tax
Federal-state inspection
Florida Citrus Mutual
Grower's Administrative Committee
Miscellaneous other
Total Other Items


Oranges
1-3/5 bu.
wirebound
box
(costs
$0.0313
.0021
.0017
.0010
.0016
.0099
$0.0476


$0.0506
.0077
.0501
.0272
.0075
.0050
.0042
$0.1523


Grapefruit Tangerines
1-3/5 bu. 1-3/5 bu,
wirebound wirebound
box 1/2 Bruce
per 1-3/5 bushel)
$0.0288 $0.0304
.0017 .0026
.0018 .0017
.0012 .0042
.0014 .0020
.0102 .0096
$0.0451 $0.0505


$0.0242
.0024
.0599
.0264
.0075
.0048
.0039
$0.1291


$0.0377
.0106
.0500
.0243
.0075
.0051
.0220
$0.1572










Some of the items, as degreening, color-add and waxing are not enough to

cover the full cost of the service, but not all the fruit was so treated.

Total expenditure for any item or service was divided by the whole number

of boxes packed.

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

in the 1-3/5 bushel wirebound box was $1.07. The two major expense items,

materials and labor, accounted for 66 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 $0.31.

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

bushel half Bruce box was $1.43 and in the 4/5 bushel wirebound flat box $1.54.

Packing and selling costs for the 4/5 bushel fiberboard box were $1.45 on the

East Coast and $1.24 for other packinghouses. East Coast houses used a

higher cost container which is included above. Oranges packed in 8-pound

mesh bags averaged $1.36 to pack and sell and 5-pound mesh bags cost $1.64.

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 1961-62 was

the 5-pound mesh bag in master cartons. Since it required 2 types of con-

tainers it had the highest materials cost and also a comparatively high

labor cost. The average cost of packing and selling this pack was $2.09

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

master carton was $1.79 and for 5-pound polyethylene bags in master cartons,

$1.56.

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

was $0.63 per 1-3/5 bushel equivalent. Bulk oranges through-house-to-cannery

(eliminations) averaged $0.23 per box for East Coast houses and $0.19 for

other houses. 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 5. The total cost per 1-3/5 bushel equivalent for

packing and selling grapefruit was $0.96 for the 1-3/5 bushel wirebound box,

68 percent of which was materials and labor costs. Packing and selling

costs were $1.29 for the 4/5 bushel half Bruce box all areas; $1.33 for

the 4/5 bushel fiberboard box, East Coast houses, and $1.11 for other

houses; $1.29 for the 8-pound mesh bag; $1.59 for the 5-pound mesh bag;

$1.73 for the 8-pound bag in master carton; $2.00 for the 5-pound mesh

bag in master carton; $1.53 for the 8-pound polyethylene bag in master

carton and $1.62 for the 5-pound polyethylene bag in master carton. Grape-

fruit sold bulk in field box cost $0.56 per box and bulk grapefruit through-

house-to-cannery (eliminations) averaged $0.18 per box for East Coast houses

and $0.14 for other houses.

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

tangerines are shown in Table 6. Two types of the 4/5 bushel wirebound box

were the containers in most common use in 1961-62. The 1-3/5 bushel equiva-

lent cost for packing and selling tangerines in the 4/5 bushel half Bruce

box was $1.52 and in the 4/5 bushel wirebound flat box, $1.65.

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 71 percent of the total cost of packing

and selling. Bulk tangerines through-house-to-cannery averaged $0.25 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 $0.066 per box (Table 6). There were no materials or packinghouse labor









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

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

supervisory labor.

The cost of handling packed fruit purchased averaged $0.071 per

box. The principal costs involved were administrative and selling.

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. These costs for oranges are arrayed in 5-cent intervals for

6 types of 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 $0.96 to $1.41 per box with 18 firms falling within the range of $1.00

to $1.19. Thirty-seven firms packing 4/5 bushel half Bruce boxes had costs

between $1.19 and $1.74 with 18 in the range of $1.35 to $1.54 per 1-3/5

bushel equivalent. Costs for the 4/5 bushel fiberboard box varied from

$1.33 to $1.69 for 10 East Coast houses and from $1.03 to $1.59 for 29

other packinghouses. The East Coast section had approximately

11-cent higher container costs. Costs for 14 of the 29 firms other than

East Coast were within the range of $1.15 to $1.29.

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

between $1.24 and $1.71 for 27 packinghouses of which 16 had costs between

$1.30 and $1.44. For 5-pound mesh bags, the total packing and selling

cost ranged from $1.43 to $1.97 for 27 firms of which 15 ranged from $1.55

to $1.74. Costs for 5-pound polyethylene bags in master cartons varied from

$1.57 to $2.07 for 23 firms with 11 in the range of $1.60 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 29 firms









handling 1-3/5 bushel wirebound boxes of oranges was from $0.69 to $1.13.

The packing cost for 20 of these firms ranged from $0.75 to $0.89. The

cost of packing oranges in 4/5 bushel half Bruce boxes for 37 firms ranged

from $0.96 to $1.42 and for 23 of these firms between $1.05 and $1.24. Ten

East Coast houses packing 4/5 bushel fiberboard boxes had costs varying.from

$1.01 to $1.40 per box with 29 other houses ranging from $0.80 to $1.25.

Costs for 15 of the other houses were between $0.90 and $1.04. Twenty-

seven firms packing the 8-pound mesh bag had packing costs from $1.01 to

$1.49 with 15 firms with costs from $1.05 to $1.19.

The spread in packing cost for 5-pound mesh bags for 27 firms was

between $1.20 and $1.74 with 15 firms included within the cost interval

of $1.30 to $1.44. For the 23 firms packing oranges in 5-pound polyethylene

bags in master cartons, the packing cost ranged from $1.33 to $1.72 and 10

of these firms had costs between $1.35 and $1.49 per box.

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

among the different firms was not as great as in oranges. The 29 firms

using 1-3/5 bushel wirebound boxes had costs which varied between $0.86

and $1.21 for packing and selling each box as shown by data in Table 8.

Of these firms, 16 had costs between $0.90 and $1.04. For the 4/5 bushel

half Bruce box, 37 firms had total packing and selling costs ranging between

$1.13 and $1.48. Of these, 17 had costs from $1.20 to $1.34. Eleven East

Coast firms using the 4/5 bushel fiberboard box had costs ranging from $1.05

per box, and 28 other houses varied from $0.95 to $1.30. Fifteen of the

other houses were between $1.05 and $1.19. For the 8-pound mesh bag, 26

houses had costs ranging from $1.09 to $1.52 per box with 14 of these between

$1.20 and $1.34.











TABLE 7.--Variation in the Cost per 1-3/5 bushel box equivalent of packing and sell-
ing Florida ORANGES, by type of container, 42 packinghouses, 1961-62 season.

4/5 bu. Fiber-
Cost Per 1-3/5 bu. 4/5 bu. board Box 8-1b. 5-1b. 5-lb. Poly.
1-3/5 bushel Wirebound Half Bruce East Mesh Mesh Bag in
Equivalent Box Box Coast Other Bag Bag Master Carton
- - Number of Packinghouses - - -
PACKING AND SELLING
$0.95 $0.99 5 -- --
1.00 1.04 6 -- -- 1
1.05 1.09 6 -- -- 1 -
1.10 1.14 2 -- 3
1.15 1.19 4 1 -- 10
1.20 1.24 1 -- -- -- 2
1.25 1.29 1 3 -- 4 1 --
1.30 1.34 3 5 2 1 8 --
1.35 1.39 -- 5 1 6 6 -
1.40 1.44 1 5 1 1 2 1 --
1.45 1.49 -- 6 1 1 1 -
1.50 1.54 -- 2 1 -- 2 4
1.55 1.59 -- 5 1 1 1 4 3
1.60 1.64 -- 2 1 -- 2 5 2
1.65 1.69 -- 2 2 -- 1 3 4
1.70 1.74 -- 1 -- -- 1 3 3
1.75 1.79 -- -- -- -- -- 2
1.80 1.84 -- -- -- -- -- 2 2
1.85 1.89 -- -- -- -- 3 4
1.90 and over -- -- -- -- 2 3
Total Number 29 37 10 29 27 27 23


$0.65 $0.69
.70 .74
.75 .79
.80 .84
.85 .89
.90 .94
.95 .99
1.00 1.04
1.05 1.09
1.10 1.14
1.15 1.19
1.20 1.24
1.25 1.29
1.30 1.34
1.35 1.39
1.40 1.44
1.45 1.49
1.50 1.54
1.55 and over
Total Number


PACKING ONLY


-- 2
-- 4
2
4
-- 8
-- 6
2 1
2 3
1 2
1 2
1 1
1 --

2 --





10 29











TABLE 8.--Variation in the cost per 1-3/5 bushel box equivalent of packing and sell-
ing Florida GRAPEFRUIT, by type of container, 42 packinghouses, 1961-62 season.

4/5 bu. Fiber-
Cost Per 1-3/5 bu. 4/5 bu. board Box 8-lb. 5-1b. 5-lb. Poly.
1-3/5 bushel Wirebound Half Bruce East Other Mesh Mesh Bag in
Equivalent Box Box Coast Houses Bag Bag Master Carton
- - Number of Packinghouses - - -
PACKING AND SELLING
$0.85 $0.89 5
.90 .94 7
.95 .99 5 -- -- 2
1.00 1.04 4 -- -- 6 -
1.05 1.09 3 -- 1 4 1 --
1.10 1.14 3 2 -- 5 2 --
1.15 1.19 -- 6 1 6 4 -
1.20 1.24 2 2 2 3 2 -
1.25 1.29 -- 8 1 2 8 1 --
1.30 1.34 -- 7 2 -- 4 1
1.35 1.39 -- 5 2 -- 2 --
1.40 1.44 -- 5 -- -- -- 3 1
1.45 1.49 -- 2 1 -- 2 4 1
1.50 1.54 -- 1 -- 1 2
1.55 1.59 -- -- -- -- -- 4 8
1.60 1.64 -- -- -- -- -- 4 3
1.65 1.69 -- -- -- -- 3 4
1.70 1.74 -- -- -- -- -- 2
1.75 and over -- -- -- -- -- 3 5
Total Number 29 37 11 28 26 27 22


$0.60 $0.64
.65 .69
.70 .74
.75 .79
.80 .84
.85 .89
.90 .94
.95 .99
1.00 1.04
1.05 1.09
1.10 1.14
1.15 1.19
1.20 1.24
1.25 1.29
1.30 1.34
1.35 1.39
1.40 1.44
1.45 and over
Total Number


PACKING ONLY


-- 1
1 4
-- 8
1 6
1 3
3 3
1 3
2 --

1 --
1 --



11 --28











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

were from $1.29 to $1.87 for 27 firms with 14 firms between $1.45 and $1.64.

For 5-pound polyethylene bags in master cartons, 22 firms ranged from $1.42

to $1.87 with 15 firms falling between $1.55 and $1.69 per 1-3/5 bushel

equivalent.

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

for 29 firms varied from $0.61 to $1.01. Twenty-one of these firms ranged

between $0.65 and $0.79. Thirty-seven packinghouses had packing costs

ranging from $0.90 to $1.22 for the 4/5 bushel half Bruce box with 18 of

these firms ranging from $0.95 to $1.09. The 11 East Coast houses packing

the 4/5 bushel fiberboard box were within the cost range of $0.79 and $1.23

and 28 other houses varied from $0.73 to $1.03. Seventeen of the other

houses had packing costs between $0.80 and $0.94. Packing costs for the

8-pound mesh bag varied from $0.84 to $1.28 per box for 26 firms with 16

between $0.95 and $1.09.

The cost of packing in 5-pound mesh bags for 27 firms ranged from

$1.10 to $1.66 per box with 14 houses between $1.25 and $1.39. Variation

in cost for the 22 firms packing grapefruit in 5-pound polyethylene bags

in master cartons ranged from $1.20 to $1.66. Costs for 12 houses fell

within the range of $1.30 to $1.44.

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

bushel equivalent ranged from $1.40 to $1.78 for the 4/5 bushel half Bruce

box for 26 firms; and for 4/5 bushel wirebound flat boxes from $1.41 to

$2.06 for 12 firms (Table 9).

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

lent varied from $1.12 to $1.57 for 4/5 bushel half Bruce boxes; and from
$1.14 to $1.88 for the 4/5 bushel wirebound flat box.











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, 1961-62.

Cost per 4/5 bushel 4/5 bushel
1-3/5 Bushel Half Bruce Wirebound
Equivalent Box Flat Box
- Number of Packinghouses - -
PACKING AND SELLING
$1.35 $1.39 1
1.40 1.44 4 2
1.45 1.49 6
1.50 1.54 -- 3
1.55 1.59 4 --
1.60 1.64 3 1
1.65 1.69 3 2
1.70 1.74 2
4.75 1.79 3 2
1.80 and over -- 2
Total Number 26 12

PACKING ONLY
$1.10 $1.14 3 1
1.15 1.19 5 1
1.20 1.24 4 1
1.25 1.29 3
1.30 1.34 3 1
1.35 1.39 2 3
1.40 1.44 2 2
1.45 1.49 2 1
1.50 1.54 1
1.55 and over 1 2
Total Number 26 12


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.

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 8-cents

more than the average for all houses. Thosein the largest volume group











(over 800,000 boxes) had costs one cent lower than the average. For packing

and selling grapefruit in 1-3/5 bushel wirebound boxes, houses in the smallest

volume group had total costs of only 9-cents above the average cost, while

those in the largest volume group had costs about 2-cents less than the average.

Materials cost did not seem to vary with size, and total 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 most

all volume groups. This variation within groups is shown in Tables 10 and 11

for 1-3/5 bushel wirebound 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 ORANGES in
1-3/5 bushel wirebound boxes, by volume groups, 42 packinghouses, 1961-62.

Number of Boxes Handled (1-3/5 bu. Equivalent)
Cost per 1-3/5 Bushel Under 400,000 800,000 All


$0.90 .$0.99
1.00 1.09
1.10 1.19
1.20 1.29
1.30 1.39
1.40 1.49
Total
Wtd. average cost


400,000 799,999 and over Volumes
- - Number of Firms - - -
-- 1 4 5
2 4 6 12
-- 2 4 6
2 2
2 1 3
1 -- -- 1
7 8 14 29
$1.15 $1.10 $1.06 $1.07


TABLE 1l.--Variation in the cost of packing and selling Florida GRAPEFRUIT in
1-3/5 bushel wirebound boxes, by volume groups, 42 packinghouses, 1961-62.

Number of Boxes Handled (1-3/5 bu. Equivalent)
Cost per 1-3/5 Bushel Under 400,000 800,000 All
400,000 799,999 and over Volumes
- Number of Firms - - -
$0.80 $0.89 -- 1 4 5
.90 .99 3 4 5 12
1.00 1.09 2 2 3 7
1.10 1.19 -- 1 2 3
1.20 1.29 2 --- 2
Total 7 8 14 29
Wtd. average cost $1.05 $1.01 $0.94 $0.96











The relationship between total volume and cost.is imperfect because,

important factors affecting costs may be unequally distributed in the volume

groups. Some of these are length of season or number of days operated,

percent of house capacity used, investment in packinghouse assetsandphysical

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.


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 12 seasons

with minor fluctuations (Table 12). With few exceptions costs in 1960-61

were at the highest level of the entire period. The increases 1950-51 to

1960-61 were from 21 to 25 percent for each pack. Costs for 1961-62 were

1 to 6 percent lower than 1960-61 for most packs, averaging about 3 percent.

Costs were higher only for the 4/5 bushel fiberboard box of grapefruit.

This is due mainly to the larger proportion of this pack from the East

Coast where the container cost is higher.

Most of the packinghouses had larger volumes of fruit in 1961-62

and operated over a somewhat longer season which tends to favor lower costs

especially in the fixed items.











TABLE 12.--Average total cost per 1-3/5 bushel equivalent for packing and sell-
ing Florida citrus fruits for fresh consumption, 1950-51 through 1961-62.a

Type of Pack

Season 1-3/5 bu. 8-lb. 5-lb. 4/5 bu. 4/5 bu.
Wirebound Box Mesh Bag Mesh Bag Fiberboard Box Half Bruce Box


$1.1490
1.1069
1.2067
1.2335
1.2609
1.2322
1.2639
1.3644
1.4086
1.3770
1.4411
1.3584


$1.0849
1.0467
1.1231
1.1659
1.1891
1.1724
1.2188
1.3089
1.2972
1.2668
1.3301
1.2863


ORANGES

$1.4086
1.3444
1.4469
1.4597
1.5005
1.4967
1.5278
1.6464
1,6682
1.6425
1, 7011
1,6399


$ -


1.0088
1,0508
1.0939
1.1551
1.2150
1.2247
1.2648
1.3328
1,3188


1,2996
1.4069
1.4430
1.4189
1,4518
1.4330
) --













1,1803
1.2539
1.2790
1.2626
1.3270
1.2862


1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62


1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62


4/5 bu.
Wirebound Flat
$1.3563
1.3589
1.4379
1.4373
1,4597
1.4725
1.5675
1.6277
1.6044
1.7005
1.6754
1.6547


TANGERINES
4/5 bu.
Half Bruce Box
$ --







1.5909
1.5534
1,5689
1.5253


aNumber of houses included in
1950-51 77 1952-53 43 1954-55
1951-52 67 1953-54 43 1955-56 -


each of the years:
43 1956-57 43 1958-59 42
42 1957-58 42 1959-60 39


1960-61 42
1961-62 42


$0.9166
0.9111
0.9530
0.9355
0.8863
0.9603
1.0068
1.1164
1.0990
1.0782
1.1247
1.0726


$0.8196
0.8487
0.8543
0.8375
0.7984
0.8682
0.9285
1.0077
0.9719
0.9462
1.0010
0.9584


GRAPEFRUIT
$1,3201 $ --
1,2670
1.3233
1,3666 0.9058
1,3964 0.9277
1.4264 1.0000
1,4730 1,0549
1.5805 1.1057
1.6132 1,1305
1,5785 1.1804
1.6448 1.2042
1.5939 1.2819


1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62












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, 1961-62 Season.

Agricultural Economics Mimeo Report No. 63-7, March, 1963.

2. Costs of Processing, Warehousing and Selling Florida Citrus Products,
1961-62 Season

Agricultural Economics Mimeo Report No. 63-10, April, 1963.

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-nine Years of Citrus Production Costs and Returns in Florida,
1931-1962.

Agricultural Extension Service Economic Series 62-16, Sept., 1962.

6. Thirty Years of Orange Production Costs and Returns in Florida,
1931-1961.

Agricultural Extension Service Economic Series 63-3, April, 1963.

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

Agricultural Extension Service Economic Series, 59-6, Sept., 1959.









AHS: pp 3/63
Experiment Stations; Ag. Ec. 1,250