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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/UF00027603/00015
 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: 1963
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: UF00027603:00015
 Related Items
Succeeded by: Estimated costs of packing and selling fresh Florida citrus

Table of Contents
    Main
        Page i
    Table of Contents
        Page ii
    Introduction
        Page 1
        Page 2
    Cost of packing and selling, 1963-64
        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
    Variation 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
    Available publications
        Page 27
Full Text



(6.


COSTi~S


OF PACKING AND SELLING


FLGOP.DA FRESH CITRUS FRUITS,

1963-64 SEASON


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FLORIDA AGRICULTURAL EXPERIMENT STATIONS
DEPARTMENT OF AGRICULTURAL ECONOMICS
GAINESVILLE, FLORIDA


AGRICULTURAL ECONOMICS MIMEO REPORT EC 65-7
APRIL, 1965


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CONTENTS

INTRODUCTION . . . . . . .

COSTS OF PACKING AND SELLING, 1963-64 . . . 3

Oranges. . . . . . .. 16

Grapefruit . . . . . 17

Tangerines . . . .... 17

Direct Grove-to-Cannery Fruit. . . ... 18

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

Oranges and Tangerines . . . .. 18

Grapefruit . . . . . 21

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

TRENDS IN PACKING AND SELLING COST . . .. 25












COSTS OF PACKING AND SELLING FLORIDA
FRESH CITRUS FRUITS, 1963-64
by
A. H. Spurlock and H. G. Hamilton

Introduction


This summary is based on the accounting records of 38 citrus

packinghouses for the citrus marketing season 1963-64. Eleven of

these houses were located in the Indian River section along the East

Coast and 27 were in the Interior and West Coast sections.

The volume of packed fruit handled by the 38 packinghouses in

1963-64 amounted to an equivalent of 12,823,238 boxes of 1-3/5 bushels,

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

The packed volume ranged from 6,000 to 966,000 boxes and averaged 337,454

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

average of all citrus packinghouses in the State. These latter averaged

only 146,282 boxes for licensed and registered fresh fruit shippers who

shipped fruit from 162 houses in 1963-64.2 Because of the freeze in

December 1962, the sample packinghouses handled only 69 percent as much

packed fruit as in the 1961-62 season, but 20 percent more than in 1962-

63. The loss in volume packed because of the freeze was confined to the

Interior and West Coast houses.


A study conducted with funds provided by the Research and
Marketing Act.

2Calculated from data in 1963-64 Season Annual Report, Division
of Fruit and Vegetable Inspection, Winter Haven, Florida.









The distribution of fruit handled by class of fruit is shown in

Table 1. Cannery fruit through the house (eliminations) was not obtained

from three houses, and direct grove-to-cannery fruit was not obtained

from 13 houses. Packed fruit represented 53 percent of the total volume

of all houses, but was 66 percent of the East Coast houses and 48 percent


TABLE I.--Distribution of Citrus Fruit Handled by Class of Fruit, 38
Packinghouses, 1963-64 Seasonl

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 4,448,869 404,443 66.2
Cannery fruit through house 1.201,819 109,256 17.9
Total through house 5,650,688 513,699 84.1
;Direct grove-to-cannery 1.070.887 97,353 15.9
Total 6,721,575 611,052 100.0

27 Other Packinqhouses:
Packed fruit 8,374,369 310,162 47.5
Cannery fruit through house 3.967,156 146,932 22.5
Total through house 12,341,525 457,094 70.0
Direct grove-to-cannery 5,288,404 195,867 30.0
Packed fruit purchased 2.129 78 .0
Total 17,632,058 653,039 100.0

38 Packinghouses:
Packed fruit 12,823,238 337,454 52.7
Cannery fruit through house 5.168,975 136,025 21.2
Direct grove-to-cannery 6,359,291 167,350 26.1
Packed fruit purchased 2.129 56 .0
Total 24,353,633 640,885 100.0


Cannery fruit through house not obtained from three houses and
grove-to-cannery not obtained from 13 houses.









of the other houses. Fruit going direct from grove-to-cannery was 26

percent of the total of all houses but only 16 percent for the East

Coast houses. The packed fruit of the East Coast houses consisted of

71 percent grapefruit, 28 percent oranges with less than 1 percent

tangerines; the other houses had 40 percent grapefruit, 49 percent

oranges and 11 percent tangerines. The East Coast firms ran a larger

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

centage packout than the other group of packinghouses.

When adjusted for the packinghouses not supplying data on elimina-

tions, the packout averaged 69.3 percent of the fruit through the house

for 35 houses; 78.7 percent for the East Coast group and 64.5 percent

for the other houses (Table 2).


TABLE 2.--Percent of Total Fruit Received Which was Packed for
Shipment, 35 Packinghouses, 1963-64

SEast Coast Other All
Kind of Fruit
Houses Houses Houses
(percent) (percent) (percent)
Oranges 73.3 62.9 65.2
Grapefruit 81.0 65.5 73.0
Tangerines 87.3 69.9 70.4
All Fruit 78.7 64.5 69.3


Costs of Packing and Selling, 1963-64

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

houses showed the itemized expenses of each for 1963-64 together with

the boxes of fruit handled by kind of fruit and type of container. Dis-

tribution of the various items of cost to each kind of fruit and each

container was made by the firm's accountants for 30 packinghouses; and

for eight houses which had only total costs by items of expense, alloca-

tions were made using average ratios of labor used. There was, thus, a









possibility of several different methods of cost allocation. However,

three of the private auditing firms prepared 20 of the statements.

Methods used for distributing materials cost, general and administrative

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


for canneries (eliminations).

amount of some other labor to

ing expenses allocated to the

rate than to the packed fruit.

fruit was charged principally

fruit going direct from grove

The volume of citrus f

of fruit is shown in Table 3.


A few of the houses also charged a small

eliminated fruit. Any other direct operat-

eliminated fruit were at a lower per-box

In a number of the houses the eliminated

with administrative expense, the same as

to cannery.

ruit handled by type of container and kind

The number of the sample houses using each


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

Itemized costs for the principal packs 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 38 houses prepared a total of 51 different packs of fruit plus

a mixed group of miscellaneous containers for each type of fruit. The

4/5 bushel fiberboard box was the most Important container used for

oranges in 1963-64 from the standpoint of total volume. This was fol-

lowed by the 4/5 bushel half Bruce box and the 1-3/5 bushel Bruce box.

These three containers were packed with about 77 percent of the oranges.

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









TABLE 3.--Number of Firms, Volume of Citrus Fruit Handled and Total Packing
and Selling Cost, by Type of Container, 38 Packinghouses,
Florida, 1963-64

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


Oranges :
4/5 bu. fiberboard box
4/5 bu. half Bruce box
1-3/5 bu. wirebound box
5-lb. mesh bag
Bulk in truck
5-lb. poly. bag in master ctn.
4-lb. poly. bag in master ctn.
4/5 bu. Bruce flat box
5-1b. mesh bag in master ctn.
8-lb. mesh bag
20-lb. mesh bag
4/5 bu. Bruce box export
5-1b. poly. bag in wood master cont.
Field box
5-lb. mesh bag in wood master cont.
4-lb. mesh bag
1-3/5 bu. Texas ctn.
4-lb. mesh bag in master ctn.
1-3/5 bu. Bruce box export
8-lb. mesh bag in master ctn.
8-lb. poly. bag in master ctn.
8-lb. mesh bag in wood master cont.
1-3/5 bu. standard box
Miscellaneous containers
Total Packed Oranges

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


2,253,612
1,041,486
799,367
294,426
258,536
187,556
139,786
101,789
65,619
40,771
23,226
22,025
21,842
21,744
5,895
4,244
3,434
2,668
2,590
2,421
2,336
322
313
4.568
5,300,576


4,179,358
948,071
437,187
257,990
203,502
189,126
68,033
64,122
58,812
38,162
29,311
21,356


62,600
30,632
31,975
13,383
12,311
8,931
8,223
16,964
4,375
2,039
1 ,161
4,405
21,842
3,106
1,179
849
1,145
889
1,295
605
389
161
156
1,142
143,259


116,093
39,503
29,146
14,333
7,017
9,006
68,033
3,562
3,921
7,632
2,931
21,256


$ 1.4202
1.6431
1.2504
1.8234
.8594
1.8813
1.8451
1.6773
2.1633
1.6623
1.4729
1.4414
1.7520
.6878
2.3457
2.1171
1.1539
1.8900
1.2968
2.1115
1.7769
1.9900
2.0759
1.3242


1.2900
1.0853
1.6605
.7358
1.3568
1.7152
1.5478
1.4227
2.0297
1.3277
1.8481
1.8849









TABLE 3.--Number of Firms, Volume of Citrus Fruit Handled and Total Packing
and Selling Cost, by Type of Container, 38 Packinghouses,
Florida, 1963-64 (Cont.)

Total
cn ne No. of Total Average Packing and
ntaine Firms Volume per Firm Selling Cost
per Box
(1-3/5 bu. equiv.)


Grapefruit: (Cont.)
4/5 bu. fiberboard box export
5-lb. poly. bag
1-3/5 bu. Texas ctn.
Field box
8-lb. mesh bag in master ctn.
8-lb. mesh bag in master wood cont.
5-lb. mesh bag in master wood cont.
20-lb. mesh bag
8-lb. poly. bag
1-3/5 bu. standard box
40-lb. mesh bag
Miscellaneous containers
Total Packed Grapefruit


Tangrines:
4/5 bu. half Bruce box
4/5 Bruce flat box
Bulk in truck
4/5 bu. fiberboard ctn.
Field box
Miscellaneous containers
Total Packed Tangerines


Misc. (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


20,812
17,026
13,047
9,548
3,321
3,232
2,403
1,573
407
205
63
3,305
6,569,972


588,240
355,342
5,453
725
63
106
949,929


_3 2,761
38 12,823,238


2,639,796
2,198,500
330,679
5,168,975


25 6,359,291 254,372


Packed Fruit Purchased 1
Total Volume All Fruit 38


2 129
24,353,633


4,162
17,026
4,349
1,364
415
646
401
393
407
102
63
1,102
172,894


24,476
39,482
779
363
21
106
30,643


920
337,454


77,641
62,814
11,810


1.2369
1.4161
.9436
.5320
1.9180
1.9033
2.3192
1.3225
1.4102
1.7158
1.1333
1.2923
--


1.7793
1.7420
1.1083
1.5192
.7654
1.8888



2.5554
--


.2275
.1646
.3o46


.0695


_ 1098


2.129
640,885









the largest volume with the 1-3/5 bushel Bruce box next in order. About

78 percent of the grapefruit was 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 Bruce carried almost all citrus packed.

Itemized costs of packing and selling oranges, grapefruit and

tangerines for the 1963-64 season are given in Tables 4, 5 and 6 for 38

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 also are shown

in Table 6. This operation was not separated by kind of fruit, but

represents 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 generally used a heavier

corrugated box which cost about seven cents more than the one used by

other houses. Piece rates for packing labor were also observed to aver-

age somewhat higher.

None of the containers shown in Tables 4, 5 and 6 were packed by

all of the 38 houses in the sample. Thus, the costs shown for any con-

tainer are averages of the group of firms packing that container. Since

this grouping of houses changes with each container, some of the differ-

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









TABLE 4.--Weighted Average Costs of Packing and Selling Florida Oranges, per
1-3/5 Bushel Equivalent, by Type of Container, 38 Packinghouses,
1963-64

1-3/5 bu. 5-lb. 8-lb. 5-lb. Mesh 5-1b. Poly.
Type of Container Bruce Mesh Mesh Bag in Bag in
Box Bag Bag Master Ctn. Master Ctn.


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 & cas.
Taxes and licenses
Depreciation
Rent
Total Indirect
Total packing expense:
Administrative
Selling
Other items
Total Packina & Sellini


25 22 20 15 21


31.975 13,383 2.039 4,375 8.931
Costs per 1-3/5 bushel

$0.3828 $0.7564 $0.5613 $1.1361 $0.6951
.0166 .0191 .0252 .0102 .0170
$0.3994 $0.7755 $0.5865 $1.1463 $0.7121

$0.0370 $0.048o $0.0479 $0.0420 $0.0562
.0439 .0081 .0229 .0436 .0563
.0853 .1362 .1246 .1269 .1211
.0855 .1487 .1412 .1597 .1645
.0548 .1030 .0963 .0830 .1043
S.0283 .0394 .0369 .0396 .0437
$0.3348 $0.4834 $0.4698 $0.4948 $0.5461

$0.0180 $0.0274 $0.0233 $0.0191 $0.0257
.0471 .0555 .0565 .0668 .0802
.0123 .0151 .0139 .0158 .0223
$0.0774 $0.0980 $0.0937 $0.1017 $0.1282

$0.0118 $0.0156 $0.0126 $0.0146 $0.0135
.0115 .0151 .0155 .0137 .0146
.0369 .0473 .0820 .0376 .0653
.0001 .0002 .0001 .0000 .0001
$0.0603 $0.0782 $0.1102 $0.0659 $0.0935


$0.8719
.0673
.0979
.2133
aS1.2Q04


$1.4351
.0727
.1012
.2144
S1_8234


$1.2602
.0952
.1020
.2049
$1.6623


$1.8087
.0623
..0850
.2073
$2.1633


$1.4799
.0705
.1014
.2295
S1 8813


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

Selling includes sales salaries, travel, telephone and telegraph, but
excludes brokerage, commission and auction charges.

COther items include citrus advertising tax, Federal-State inspection
and testing, Growers Administrative Committee and Florida Citrus Mutual
assessments, degreening, precooling, color-add and wax.


I I I I I I I I I m z m


"' "-


1 23









TABLE 4.--Weighted Average Costs of Packing and Selling Florida Oranges, per
1-3/5 Bushel Equivalent, by Type of Container, 38 Packinghouses, 1963-64 (Cont.)
Type of Container /5bu. Half Bruce Box 4/5 bu. Fiberboard Box
ype of Container East Other All East Other :A
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, other
Wrap and pack
Truck, check, load
Payroll taxes, comp. in
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 and
selling


7 27 34 10 26 36


20,643 33.222 30,632 93.672 50.650 62.600
Costs per 1-3/5 Bushel

$0.5910 $0.5616 $0.5657 $0.4619 $0.4026 $0.4272
.0471 .0307 .0329 .0093 .0105 .0100
$0.6381 $0.5923 $0.5986 $0.4712 $0.4131 $0.4372


's


Is


$0.0449
.0520
.1270
.1238
.0570
. .0375


$0.0454
.0735
.1068
.1059
.0915
.0396


$0.0453
.0705
.1096
.1084
.0867
.0393


$0.0400
.0499
.1233
.1226
.0559
.0371


$0.0440
.0537
.1092
.1020
.0827
.0354


$0.0423
.0521
.1151
.1105
.0716
.0361


$0.4422 $0.4627 $0.4598 $0.4288 $0.4270 $0.4277


$0.0147 $0.0204 $0.0196 $0.0153 $0.0209 $0.0186
.0636 .0704 .0695 .0598 .0572 .0583
.0127 .0162 .0157 .0151 .0161 .0157
$0.0910 $0.1070 $0.1048 $0.0902 $0.0942 $0.0926


$0.0125 $0.0168 $0.0162 $0.0139 $0.0143 $0.0141
.0131 .0152 .0149 .0142 .0142 .0142
.0351 .0504 .0483 .0446 .0573 .0521
-- 0 0 -- -- 0
$0.0607 $0.0824 $0.0794 $0.0727 $0.0858 $0o.804

$1.2320 $1.2444 $1.2426 $1.0629 $1.0201 $1.0379
.0669 .0694 .0691 .0562 .0736 .0664
.1192 .0958 .0991 .1044 .1038 .1040
.2641 .2272 .2323 .2098 .2134 .2119


a
Administrative 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.

Other 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.


S1~6833 91 ~h~l


C1 h~~? C1 Lrlno C1 hs~~









TABLE 4.--Weighted Average Costs of Packing and Selling Florida Oranges, per
1-3/5 Bushel Equivalent, by Type of Container, 38 Packinghouses, 1963-64 (Cont.)

4-lb.
Type of Container Poly. Bulk thru house to cannery
Type of Container
Bag in 20-lb. Bulk
Master Mesh in East Other All
Ctn. Bag 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 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
Administrative
Selling
Other items
Total Packing and Selling


17 20 21 10 24 34


8,223 1,161 12,311 45,034 91,228 77,641
Costs per 1-3/5 Bushel

$0,7228 $0.5087 -- -- --
.0226 .0134 $0.0022 -- --
$0.7454 $0.5221 $0.0022 -- -- --


$0.0514 $0.0409 $0.0378 $0.0297 $0.0304 $0.0303
.0531 .0089 .0040 -- -- --
.1181 .1189 .1074 .0614 .0458 .0484
.1864 .1021 .0919 -- -- --
.0950 .0886 .0332 -- .0022 .0018
.0456 .0315 .0230 .0081 .0102 .0099
$0.5496 $0.3909 $0.2973 $0.0992 $0.0886 $0.0904


$0.0250 $0.0230 $0.0100 $0.0065 $0.0049 $0.0052
.0636 .0531 .0367 .0305 .0274 .0279
.0164 .0123 .0052 .0040 .0030 .0031
$0.1050 $0.0884 o0.0519 $0.0410 $0.0353 $0.0362


$0.0134 $0.0137 $0.0103 $0.0082 $0.0078 $0.0079
.0145 .0128 .0072 .0054 .0047 .0048
.0510 .0462 .0229 .0163 .0186 .0183
0 .0001 .0001 -- .0001 0
$0.0789 $0.0728 $0.0405 $0.0299 $0.0312 $0.0310

$1.4789 $1.0742 $0.3919 $0.1701 $0.1551 $0.1576
.0591 .0767 .0715 .0633 .0619 .0622
.0922 .1054 .1255 -- .0001 --
.2149 .2166 .2705 .0057 .0081 .0077
$1.8451 $1.4729 $0.8594 $0.2391 $0.2252 $0.2275


aAdministrative expense includes management and office salaries, office
expense, auto and travel, interest, telephone and telegraph.
Selling includes sales salaries, travel, telephone and telegraph, but
excludes 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
assessments, 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, 38 Packinghouses, 1963-64

5-lb. 8-lb.
Type of Container 1-3/5 Poly. Poly.
"-bu. Bag in Bag in 5-lb. 8-lb.
Bruce Master Master Mesh Mesh Bulk in
Box Ctn. Ctn. Baq Bag Truck


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
Administrative
Sellingb
Other items
Total Packing & Selling


24 15 10 21 18 18


39.503 29,146 2.931 9,006 3,562 14,333
Costs per 1-3/5 Bushel

$0.3843 $0.6910 $0.7475 $o.7635 $0.5653 --
.0147 .0170 .0150 .0160 .0191 $0.0010
$0.3990 $0.7080 $0.7625 Sc.7795 $0.5844 $0.o0010


$0.0327 $0.0571 $0.0577 $0.0498 $0.0435 $0.0396
.0444 .0608 .0763 .0052 .0034 .0005
.0581 .0994 .1138 .1051 .0933 .0778
.0637 .1463 .1340 .1243 .1053 .0702
.0537 .0960 .1176 .1180 .1091 .0365
.0235 .0412 .0452 .0363 .0328 .0186
$0.2761 $0.5008 $0.5446 $0.4387 $0.3874 $0.2432


$0.0164 $0.0251 $0.0365 $0.0308 $0.0279 $0.0074
.0339 .0485 .0945 .0449 .0388 .0358
.0124 .0192 .0119 .0167 .0152 .0028
$0.0627 $0.0928 $0.1429 $0.0924 $0.0819 $0.0460


$0.0070 $0.0067 $0.0166 $0.0152 $0.0132 $0.0096
.0089 .0116 .0194 .0163 ..0123 .0056
.0245 .0333 .0693 .0416 .0350 .0172
.0001 .0001 0 .0003 .0001 0
$0.0405 $0.0517 $0.1053 $0.0734 $0.0606 $0.0324
$0.7783 $1.3533 $1.5553 $1.3840 $1.1143 $0.3226
.0675 .0660 .0601 .0854 .0670 .0733
.0918 .0929 .0900 .0982 .0944 .1102
.1477 .1483 .1427 .1476 .1470 .2297


$1.0853 $1.6605 $1.8481 $1.7152 $1.4227


$0.7358


aAdministrative expense includes management and office
expense, auto and travel, interest, telephone and telegraph.


salaries, office


Selling 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
Mutural assessments, degreening, precooling, color-add and wax.


, ,0.735









TABLE 5.--Weighted Average Costs of Packing and Selling Florida Grapefruit, per
1-3/5 Bushel Equivalent, by Type of Container, 38 Packinghouses, 1963-64 (Cont.)
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 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
Administrative
Sellingb
Other items
Total Packing & Selling


5 24 29 11 25 36

_5.355 7.364 7.017 260.305 52.640 116,093
Costs per 1-3/5 Bushel

$0.6035 $0.5660 $0.5709 $0.4674 $0.3948 $0.4445
.0132 .0281 .0262 .0084 .0097 .0089
$0.6167 $0.5941 $0.5971 $0.4758 $0.4045 $0.4534


$0.0332 $0.0302 $0.0306 $0.0400 $0.0379 $0.0393
.0464 .0736 .0700 .0537 .0572 .0548
.0941 .0698 .0731 .0886 .0755 .0845
.0870 .0857 .0858 .0883 .0846 .0872
.0635 .0664 .0660 .0746 .0800 .0763
.0341 .0298 .0304 .0318 .0301 .0312
$0.3583 $0.3555 $0.3559 $0.3770 $0.3653 $0.3733


$0.0093 $0.0168 $0.0158 $0.0098 $0.0193 $0.0128
.0369 .0425 .0417 .0481 .0346 .0438
.0104 .0126 .0124 .0058 .0125 .0080
0S.0566 $0.0719 $0.0699 $0.0637 $0.0664 $0.0646


$0.0082 $0.0089 $0.0088 $0.0147 $0.0108 $0.0135
.0131 .0110 .0112 .0115 .0112 .0114
.0433 .0281 .0301 .0356 .0363 .0358
-- .0001 .0001 -- .0001 0
$0.0646 $0.0481 $0.0502 $0.0618 $0.0584 $0.0607
$1.0962 $1.0696 $1.0731 $0.9783 $0.8946 $0.9520
.0345 .0614 .0579 .0619 .0684 .0639
.0639 .0805 .0784 .0985 .1005 .0991
.1354 .1493 .1474 .1789 .1528 .1707
$1.3300 $1.3608 $1.3568 $1.3176 $1.2163 $1.2857


aAdministrative expense includes management and office
expense, auto and travel, interest, telephone and telegraph.


salaries, office


Selling 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 Grapefruit, per
1-3/5 Bushel Equivalent, by Type of Container, 38 Packinghouses, 1963-64 (Cont.)
.--- I-- -
5-lb.
Mesh Bulk, Through House to Cannery
Type of Container Bag in -
Master East Other All
Ctn. Coast Houses Houses


Number r TracMKngnouu>e
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
Selling
Other items
Total Packino and Selling


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.


15 11 24 35

3,921 67.862 60,501 62,814
Costs per 1-3/5 Bushel

$1.1433 -
.0112 -- -- "
$1.1545 -- -


$0.0406 $0.0334 $0.0201 $0.0246
.0492 -
.0910 .0330 .0243 .0272
.1286 -
.08:2 .0019 .0013
.0347 .0063 .0060 .0061
$0.4253 $0.0727 $0.0523 $0.0592


$0.0208 $0.0024 $0.0029 $0.0028
.0532 .0163 .0155 .0158
.0171 .0014 .0022 .0019
$0.0911 $0.0201 $0.0206 $0.0205


$0.0088 $0.0042 $0.0044 $0.0043
.0115 .0034 .0026 .0029
.0329 .0096 .0093 .0094
.0001 -- 0 0
$0.0533 $0..0172 $0.0163 $0.0166
$1.7242 $0.1100 $0.0892 $0.0963
.0627 .0617 .0598 .0605
.0910
.1518 .0073 .0081 .0078
S2.0297 $0.1790 $0.1571 $0.1646









TABLE 6.--Weighted Average Costs of Packing and Selling Florida Tangerines and
Grove-to-Cannery Fruit, per 1-3/5 Bushel Equivalent, 38 Packinghouses, 1963-64

Tangerines All Fruit
Type of Container 4/5 bu. 4/5 bu. Bulk Bulk thru Direct
Half Bruce Bruce in House to Grove-to-
Box Flat Box Truck Cannery 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-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


23 9 7 28 25

25,576 39.482 779 11.810 254.372
Costs per 1-3/5 Bushel

$0.5622 $0.6060 -- -- --
.0338 .0285 -- -- --
$0.5960 $0.6345 -- -- --


$0.0572 $0.0553 $0.0455 $0.0380 $0.0001
.0721 .0802 .0039 -- -
.1546 .1455 .1852 .0718 --
.1452 .1423 .1564 -- --
.0949 .0802 .0371 .0035 .0039

.0529 .0476 .0341 .0170 .0004
$0.5769 $0.5511 $0.4622 $0.1303 $0.0044


$0.0308 $0.0439 $0.0109 $0.0093 $0.0002
.0758 .0606 .0546 .0392 .0057
.0136 .0336 .0048 .0032 .0002
$0.1202 $0.1381 $0.0703 $0.0517 $0.0061


$0.0260 $0.0133 $0.0143 $0.0141 $0.0003
.0227 .0203 .0108 .0091 .0003
.0799 .0553 .0312 .0336 .0012
0 .0002 0 -- --
$0.1286 $0.0891 $0.0563 $o.o568 $0.0018
$1.4217 $1.4128 $0.5888 $0.2388 $0.0123
.0664 .0799 .0848 .0581 .u498
.1070 .0889 .1312 .0001 --
.1842 .1608 .3035 .0076 .0074
$1.7793 $1.7424 $1.1083 $0.3046 $0.0695


aAdministrative expense includes management and office salaries, office
expense, auto and travel, interest, telephone and telegraph.
Selling includes sales salaries, travel, telephone and telegraph, but
excludes brokerage, commission and auction charges.
Other 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.









This can be illustrated by comparing the container cost of the 1-3/5

bushel Bruce box for oranges and grapefruit (Tables 4 and 5). For

oranges, 25 houses had an average container cost of $0.3828, and for

grapefruit, 24 houses, not quite identical with the orange houses, had a

cost of $0.3843, 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 sum-

mary 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 Bruce box by 25 firms was $1.4320 or 18 cents

higher than the weighted average of $1.2504 as shown in Table 4. Eighteen

firms had total costs higher than the weighted average and seven had

lower costs.

The cost of selling as shown in Table 4, 5 and 6 includes only the

expense of the firm's own sales department or sales organization. Broker-

age, commission and auction charges are not included.

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

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

"other items," is also reduced to one line. A typical distribution of

these groups is shown in Table 7. Some of the items as degreening, color-

add and waxing are not enough to cover the full cost of the service, but

not all fruit was so treated. Total expenditure for any item or service

was divided by the whole number of boxes packed.









TABLE 7.--Typical Distribution of Administrative and General Expense
and Other Items, 38 Packinghouses, 1963-64

Oranges Grapefruit Tangerines
4/5 bu. 4/5 bu. 4/5 bu.
Fiberboard Fiberboard Half Bruce
Box Box Box

(Costs per 1-3/5 Bushel)
Administrative & General Expense:
Management and office salaries $0.0414 $0.0363 $0.0387
Office supplies & expense .0029 .0054 .0032
Auto, travel & entertainment .0032 .0054 .0026
Operating interest .0046 .0016 .0064
Telephone & telegraph .0025 .0027 .0023
Miscellaneous administrative .0118 .0125 .0132
Total Administrative & General $0.0664 $0.0639 $0.0664

Other Items:
Degreening, color-add & wax $0.0510 $0.0300 $0.0427
Precooling .0129 .0259 .0167
Advertising tax .0904 .0601 .0499
Federal-State inspection .0372 .0357 .0373
Florida Citrus Mutual .0067 .0073 .0074
Growers Administrative Committee .0055 .0055 .0055
Miscellaneous, other .0082 .0062 .0247
Total Other Items $0.2119 $0.1707 $0.1842


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

in the 1-3/5 bushel wirebound box was $1.25. The two major expense items,

materials and labor, accounted for 59 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 $0.335.

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

4/5 bushel half Bruce box was $1.64, and in the 4/5 bushel fiberboard box

was $1.43 on the East Coast and $1.41 for other packinghouses. East

Coast houses used a box of heavier weight fiberboard which was somewhat

more expensive; however, they did not suffer the freeze damage and volume

loss which raised costs in other areas. Oranges packed in 8-pound mesh









bags averaged $1.66 to pack and sell, and 5-pound mesh bags cost $1.82.

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 1963-64 was

the 5-pound mesh bag in master cartons. Since it requires two types of

containers, it had the highest materials cost and also a comparatively

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

$2.16 per 1-3/5 bushel equivalent. The average cost of the 5-pound poly-

ethylene bag in master cartons was $1.88, and the 4-pound polyethylene bag

in master carton $1.85.

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

truck was $0.86 per 1-3/5 bushel equivalent. Bulk oranges through house-

to- cannery (eliminations) averaged $0.24 per box for East Coast houses

and $0.23 for other houses. There was considerable variation in practices

among the houses in assigning costs in this class of fruit.

Grapefruit.--The weighted average costs of packing and selling

grapefruit are shown in Table 5. The total cost per 1-3/5 bushel equiva-

lent for packing and selling grapefruit was $1.09 for the 1-3/5 bushel

Bruce box, 62 percent of which was materials and labor costs. Packing and

selling costs were $1.36 for the 4/5 bushel half Bruce box all areas; $1.29

for the 4/5 bushel fiberboard box, $1.42 for the 8-pound mesh bag; $1.72

for the 5-pound mesh bag; $2.03 for the 5-pound mesh bag in master carton;

$1.85 for the 8-pound polyethylene bag in master carton and $1.66 for the

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

cost $0.74 per box and bulk grapefruit through-house-to-cannery (elimina-

tions) averaged $0.16 per box.

Tanqerines.--The 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 1963-64. The 1-3/5 bushel

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

Bruce box was $1.78 and in the 4/5 bushel wirebound flat box $1.74.

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 were about 66 percent of the total cost of packing

and selling for the half Bruce and 67 percent for the 4/5 bushel flat

Bruce. Bulk tangerines through-house-to-cannery averaged $0.30 per box

for packing and selling.

Direct grove-to-cannery fruit.--Packinghouse expenses for fruit

going direct from the grove to the cannery averaged only $0.07 per box

(Table 6). There were no materials or packing labor involved except that

several firms set off some fruit in boxes onto the packinghouse platform

and had a small amount of receiving, trucking and checking labor.


Variations in Packing and Selling Cost Among Firms

There was an extremely wide variation in the cost of packing and

selling citrus in 1963-64. Some packinghouses on the West Coast and

Interior sections had only a very small percent of their usual volume, with

the result that total per-unit costs went to unusual highs. The variations

in packing and selling cost in 1963-64 reflect operations ranging from

disaster conditions to near-capacity output.

Oranges and Tanqerines.--The variation among firms in the total cost

of packing and selling oranges and tangerines per 1-3/5 bushel equivalent

in the various containers is shown in Table 8. These costs are arrayed

in 5-cent intervals for six types of containers for oranges and one for

tangerines. For the 25 firms packing oranges in 1-3/5 bushel Bruce boxes,







19


TABLE 8.--Variations in the Cost per 1-3/5 Bushel Equivalent of Packing and
Selling Florida Oranaes and Tangerines, by Type of Container, 38
Packinghouses, 1963-64 Season

Oranges Tangeri nes
4/5 bu. Fiber- 4-1b. Poly. 5-1b. Poly. 4/5 bu.
Cost per 1-3/5 bu. 4/5 bu. board Box 5-1b. Bag in Bag in Half
1-3/5 Bushel Bruce Half Bruce East Mesh Master Master Bruce
Equivalent Box Box Coast Other Bag Carton Carton Box
- - - Number of Packinghouses - - -
PACKING AND SELLING COST

Under $1.20 4 -- 2
$1.20 1.24 3 -- 1
1.25 1.29 5 -- -- 1
1.30 1.34 3 2 1 4
1.35 1.39 -- 1 2
1.40 1.44 2 1 -- --
1.45 1.49 4 3 2 5 --
1.50 1.54 1 1 2 4 1
1.55 1.59 -- 4 1 -- 1 -- 3
1.60 1.64 -- 3 2 3
1.65 1.69 -- 7 -- 1 1 2 1
1.70 1.74 4 1 1 1 1 1 6
1.75 1.79 1 1 -- 2 1 2 4
1.80 1.84 -- 1 3 1 --
1.85 1.89 -- 3 -- -- 1 4 3
1.90 1.94 -3 3 1
1.95 1.99 1 3 2
2.00 2.04 3 1 3 1
2.05 and over 2 4 -- 3 6 5 4 3
Total Number 25 34 10 26 22 17 21 23


PACKING COST ONLY (Materials
2 -- -- --
6 -- -- --
5 -- -- 4
3 3
2 -- 4
2 2 3 2
1 3 3
1 4 1 3
-- 5 -- 2
1 2 1 1
-- 7 --
-- 3 1 -
1 4 -
-- -- 1 --
-- 1 -- --
-- 2 -- --


1 -- -- --

1 3 -- 2
25 34 10 26


,Labor



-.





1

1
2
2
3
1
3


1
2

4
22


Packi












1
2

4

l
1

2
--







1
17


nghouse Expenses)












2
3
4
S1
3
1
2
1

1
7 21


Under
$0.80
.85
.90
.95
1.00
1.05
1.10
1.15
:1.20
1.25
1.30
1.35
1.40
1.45
1.50
1.55
1.60
1.65
1.70
1.75
Total


- $0.80
- .84
- .89
- .94
- .99
- 1.04
- 1.09
- 1.14
- 1.19
- 1.24
- 1.29
- 1.34
- 1.39
- 1.44
- 1.49
- 1.54
- 1.59
- 1.64
- 1.69
- 1.74
and over
Number r


1

2
5
2
4
1
2
II









2
-^-
3
23


--~i-ii----


*


----


-


17









the total packing and selling costs ranged from $1.09 to $2.86 per box with

17 firms falling within the range of $1.20 to $1.49. Thirty-four firms

packing 4/5 bushel half Bruce boxes had costs between $1.34 and $3.31 with

20 in the range of $1.50 to $1.79 per 1-4/5 bushel equivalent. Costs for

the 4/5 bushel fiberboard box varied from $1.32 to $1.73 for 10 East Coast

houses and from $1.15 to $3.12 for 26 other packinghouses. The East Coast

section had approximately 7-cent higher container costs. Costs for 15 of

the 26 interior firms were within the range of $1.30 to $1.59.

Packing and selling costs of oranges in 5-pound mesh bags varied

between $1.51 and $4.34 for 22 packinghouses of which 12 had costs between

$1.75 and $2.04. For 5-pound polyethylene bags in master cartons the total

packing and selling cost ranged from $1.67 to $3.60 for 21 firms of which

14 ranged from $1.75 to $2.04. Costs for 4-pound polyethylene bags in master

cartons varied from $1.67 to $2.29 for 17 firms with nine in the range of

$1.80 to $2.04.

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

ranged from $1.57 to $3.77 for the 4/5 bushel half Bruce box for 23 firms.

Thirteen of these had costs between $1.70 and $1.89.

The variations in packing costs only (excluding administrative, sel-

ling and other extraneous costs) were similar to the variations in packing

and selling costs. The range for the 25 firms handling 1-3/5 bushel Bruce

boxes of oranges was from $0.79 to $2.06. The packing cost for 13 of these

firms ranged from $0.85 to $1.14. The cost of packing oranges in 4/5 bushel

half Bruce boxes for 34 firms ranged from $1.01 to $2.51 and for 21 of these

firms between $1.15 and $1.39. Ten East Coast houses packing 4/5 bushel

fiberboard boxes had costs varying from $1.02 to $1.41 per box with 26

Interior houses ranging from $0.86 to $2.32. Costs for 15 of the other









houses were between $0.90 and $1.14. Twenty-two firms packing the 5-pound

mesh bag had packing costs from $1.17 to $3.54 with 11 firms with costs

from $1.40 to $1.69.

The spread in packing cost for the 5-pound polyethylene bag in

master carton for 21 firms was between $1.33 and $2.93 with 12 firms

included within the cost interval of $1.40 to $1.69, For the 17 firms pack-
ing oranges in 4-pound polyethylene bags in master cartons, the packing cost

ranged from $1.33 to $1.93 and 10 of these firms had costs between $1.45 and
$1.64 per box.
The costs of packing only for tangerines per 1-3/5 bushel equiva-

lent varied from $1.18 to $3.20 for 4/5 bushel half Bruce boxes, with 15

of the 23 firms between $1.30 and $1.59.

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

among the different firms was not as wide as in oranges. The 24 firms using

1-3/5 bushel Bruce boxes had costs which varied between $0.93 and $2.05 for

packing and selling each box as shown by data in Table 9. Of these firms,

13 had costs between $1.05 and $1.29. For the 4/5 bushel half Bruce box,

29 firms had total packing and selling costs ranging between $1.20 and $2.43.

Of these, 18 had costs from $1.30 to $1.59. Eleven East Coast firms using

the 4/5 bushel fiberboard box had costs ranging from $1.07 to $1.54 per box,

and 25 Interior houses varied from $0.99 to $2.18. Twelve of the Interior

houses were between $1.15 and $1.39. For the 8-pound mesh bag, 18 houses

had costs ranging from $1.24 to $1.79 per box with 11 of these between

$1.30 and $1.59.

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

were from $1.30 to $2.40 for 21 firms with 14 firms between $1.55 and $1.89.

For 5-pound polyethylene bags in master cartons, 15 firms ranged from $1.48

to $2.01 with 11 firms falling between $1.50 and $1.79 per 1-3/5 bushel

equivalent.










TABLE 9.--Variation in the Cost per 1-3/5 Bushel Equivalent of Packing and
Selling Florida Grapefruit, by Type of Container, 38 Packing-
houses, 1963-64 Season
i L Oi'.


Cost per
1-3/5 Bushel
Equivalent


1-3/5 b
Wirebour
Box


u. 4/5 bu.
)d Half Bruce
Box


4/5 bu. Fiber-
board Box
East
Coast Other
- Number of Pac
PACKING AND Si


8-lb.
Mesh
Baa
:kinghouses
SELLING COST


Under
$1.00
1.05
1.10
1.15
1.20
1.25
1.30
1.35
1.40
1.45
1.50
1.55
1.60
1.65
1.70
1.75
1.80
1.85
1 f-~I.


$1.00
- $1.04
- 1.09
- 1.14
- 1.19
- 1.24
- 1.29
- 1.34
- 1.39
- 1.44
- 1.49
- 1.54
- 1.59
- 1.64
- 1.69
- 1.74
- 1.79
- 1.84
- 1.89
d ~


S1.90 and over I -
Total Number 24 29 11 25 18 21 15
PACKING COST ONLY (Materials, Labor, Packinghouse Expenses)
Under $.75 6 -- 1 1 -- -
.75 .79 4 -- -- 4 -
.80 .84 6 3 -
.85 .89 3 -- 3 2
.90 .94 -- 2 2 1 1 --
.95 .99 1 3 2 5 2 1 --
1.00- 1.04 -- 2 -- 3 4 --
1.05 1.09 2 5 1 1 2 --
1.10 1.14 1 3 -- 2 1 1
1.15 1.19 -- 5 1 1 1 1
1.20 1.24 -- 3 -- 3 1 3
1.25 1.29 -- 1 1 1 1 2 3
1.30- 1.34 -- 1 -- 2 2 2
1.35 1.39 -- 2 -- -- 3 3
1.40 1.44 -- 1 -- -- 1
1.45 1.49 1 -- -- 1 2
1.50 1.54 -- -- -- 2 1
1.55 and over -- 1 -- 1 -- 7 1
Total Number 24 29 11 25 18 21 15


5-lb.
4esh
Bag


ILl. I i l 7


l- iu. vi y.
Bag in
Master
Carton


E uivalent----


--









Packing costs only (excluding administrative, selling and other

extraneous costs) for grapefruit in 1-3/5 bushel Bruce boxes for 24 firms

varied from $0.66 to $1.46. Thirteen of these firms ranged between $0.75

and $0.89. Twenty-nine packinghouses had packing cost ranging from $0.92

to $1.85 for the 4/5 bushel half Bruce box with 18 of these firms ranging

from $1.00 to $1.24. The 11 East Coast houses packing the 4/5 bushel

fiberboard box were within the cost range of $0.75 and $1.26 and 25 Interior

houses varied from $0.75 to $1.60. Fourteen of the Interior houses had

packing costs between $0.80 and $1.04. Packing costs for the 8-pound mesh

bag varied from $0.95 to $1.40 per box for 18 firms with 11 between $1.00

and $1.24.

The cost of packing in 5-pound mesh bags for 21 firms ranged from

$1.00 to $2.07 per box with 13 houses between $1.25 and $1.59. Variation

in cost for the 15 firms packing grapefruit in 5-pound polyethylene bags

in master cartons ranged from $1.21 to $1.65. Costs for eight houses fell

within the range of $1.25 to $1.39.


Relationship of Seasonal Volume to Average
Cost of Packing and Sellina

The data indicate a 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, because of the

reduced fresh volume some houses experienced again this season, there is

probably no relation between actual packinghouse volume this year and house

capacity. These two measures should be constant for most reliable compari-

son of costs and volume.

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

had costs for packing and selling oranges in 1-3/5 bushel Bruce boxes of









49 cents more than the average for all houses. Some of this group were

large-capacity houses and with little fruit to pack, there was no way of

controlling the fixed costs. Houses in the largest volume group (700,000

boxes and over) had costs 10 cents lower than the average (Table 10).

For packing and selling grapefruit in 1-3/5 bushel Bruce boxes,

houses in the smallest volume group had total costs of 27 cents above the

average cost, while those in the largest volume group had costs about eight

cents less than the average (Table 11). The range in total costs this sea-

son was extreme on the high side.


TABLE 10.--Variation in the Cost of Packing and Selling Florida Oranges
in 4/5 Bushel Fiberboard Boxes, by Volume Groups, 38 Packinghouses,
1963-64

No. 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 & over Volumes
- Number of Packinghouses - -
Under $1.50 -- 3 3 6
$1.50 1.59 1 -- 2 2 5
1.60 1.69 -- 4 5 1 10
1.70 1.79 1 4 -- 5
1.80 1.89 1 1 1 1 4
1.90 1.99 -- -
2.00 and over 4 -- -- 4
Total 7 9 11 7 34
Weighted Average Cost $2.13 $1.73 $1.71 $1.54 $1.64


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 assets and

physical arrangement of house and machinery which affect labor costs in

particular. The number of different lots, frequency of change of lots,

number of different containers packed and percent packout probably affect

costs also to some extent. There was not sufficient information on all

these factors to account for the affect of each on costs.










TABLE ll.--Variation in the Cost of Packing and Selling Florida Grapefruit
in 4/5 Bushel Half Bruce Boxes by Volume Groups, 38 Packinghouses, 1963-64

No. 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 & over Volume
- Number of Packinghouses - -
Under $1.50 4 9 12 8 33
$1.50 1.59 1 1 -- 2
1.60 1.69 -- -- -- --
1.70 1.79 -- -- --
1.80 1.89 -- -- -- --
1.90 1.99 -- -- -- --
2.00 and over I -- -- 1
Total 6 10 12 8 36
Weighted Average Cost $1.56 $1.37 $1.21 $1.21 $1.29


Trends in Packing and Selling Cost

The trend in total cost of packing and selling Florida citrus

fruits in the most common containers during the past 13 seasons has been

upward (Table 12). Weighted average costs in 1962-63 rose to unusual

highs, but declined somewhat in 1963-64 as operations for more houses

approached a nearer normal output.









TABLE 12.--Average Total Cost per 1-3/5 Bushel Equivalent for Packing and
Selling Florida Citrus Fruits for Fresh Consumption, 1951-52
Through 1963-64a

Type of Pack
Season 1-3/5 bu. 8-lb. 5-lb. 4/5 bu. 4/5 bu.
Wirebound Box Mesh Bag Mesh Bac Fiberboard Box Half Bruce Box
ORANGES


$0.9111
0.9530
0.9355
0.8863
0.9603
1.0068
1.1164
1.0990
1.0782
1.1247
1.0726
1.4006
1.2504


1951-52 $0.8487


0.8543
0.8375
0.7984
0.8682
0.9285
1.0077
0.9719
0.9462
1.0010
0.9584
1.1581
1.0853


$1.1069
1.2067
1.2335
1.2609
1.2322
1.2639
1.3644
1.4086
1.3770
1.4411
1.3584
1.7465
1.6623

$1.0467
1.1231
1.1659
1.1891
1.1724
1.2188
1.3089
1.2972
1.2668
1.3301
1.2863
1.4978
1.4227


4/5 bu. Wirebound Flat
$1.3589
1.4379
1.4373
1.4597
1.4725
1.5675
1.6277
1.6044
1.7005
1.6754
1.6547
2.1290
1.7424


aNumber
- 67
- 63
- 43


of houses
1954-55
1955-56
1956-57


included
- 43
- 42
- 43


$1.3444
1.4469
1.4597
1.5005
1.4967
1.5278
1.6464
1.6682
1.6425
1.7011
1.6339
2.0385
1.8234
GRAPEFRUIT
$1.2670
1.3233
1.3666
1.3964
1.4264
1.4730
1.5805
1.6132
1.5785
1.6448
1.5939
1.8132
1.7152
TANGERINES


in each
1957-58
1958-59
1959-60


$1.0088
1.0508
1.0939
1.1551
1.2150
1.2247
1.2648
1.3328
1.3188
1.4956
1.4202



$0.9058
0.9277
1.0000
1.0549
1.1057
1.1305
1.1804
1.2042
1.2819
1.2857
1.2857


4/5 bu. Half Bruce Box


of the
- 42
- 42
- 39


years:
1960-61
1961-62
1962-63


42 1963-64 38
42
41


1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62
1962-63
1963-64


--


$1.2996
1.4069
1.4430
1.4189
1.4518
1.4330
1.7311
1.6431

--
-i
--


$1.1803
1.2539
1.2790
1.2626
1.3270
1.2862
1.4847
1.3568


1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62
1962-63
1963-64


1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62
1962-63
1963-64


1951-52
1952-53
1953-54


$1.5909
1.5534
1.5689
1.5253
1.8081
1.7793


-










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, 1963-64 Season.

Agricultural Economics Mimeo Report EC65-6. March, 1965.

2. Costs of Processing, Warehousing and Selling Florida Citrus Products,
1963-64 Season.

Agricultural Economics Mimeo Report EC65-8. April, 1965.

3. Thirty-One Years of Citrus Production Costs and Returns in Florida,
1931-1962.

Agricultural Extension Service Economic Series 64-2. March, 1964.

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

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

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

Agricultural Extension Service Economic Series, 65-1. February,
1965.








AHS:gha 4/65
Experiment Stations; Ag. Ec. 1200