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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/UF00027603/00017
 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: 1965
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: UF00027603:00017
 Related Items
Succeeded by: Estimated costs of packing and selling fresh Florida citrus

Table of Contents
    Title Page
        Title page
    Table of Contents
        Page 1 (MULTIPLE)
        Page 2
    Cost and packing and selling, 1965-66
        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
    Variation in packing and selling cost among firms
        Page 16
        Page 17
        Page 18
        Page 19
    Relationship of seasonal volume to average cost of packing and selling
        Page 20
    Trends in packing and selling cost
        Page 21
        Page 22
    Available publications
        Page 23
Full Text

grcuural Economics
Mimeo Report EC 67-11


COST OF PACKING AND SELLING


FLORIDA FRESH CITRUS FRUITS


1965-66 SEASON

by
A. H. SPURLOCK
Agricultural Economist


HUij
L 18 A R


APR 18 1967


A" in GF;!
---------


Costs of Packing and Selling Florida Oranges, Per I 3/5 bushel, 1965-66
0 $0 20 (0 40 $0 60 $0 80 $1 00 $1 20 $1 40 $1 60 $1 8(


1 3/5 bu.
wirebound
4/5 bu. wirebound

4/5 bu. wire-
bound--Interior

5 lb. mesh bag

5 lb. poly. bag
in master carton


!i 1 i A 1 1 6





SOther Admin. &. Other
Materials Labor Packing Selling Costs
S osts
Costs
IM EB 12MI IB i I


Department of Agricultural Economics
Florida Agricultural Experiment Stations
Gainesville, Florida


March 1967










COSTS OF PACKING AND SELLING FLORIDA
FRESH CITRUS FRUITS, 1965-66

by
A. H. Spurlock


CONTENTS

Page

Introduction........... ........ ...... ..... .............. 1

Costs of Packing and Selling, 1965-66....................... 2

Oranges.... ........... *.................* **... 14
Grapefruit.............. .................... ........ 15
Tanger i nes...*..*..*,* e.,,.... *....,*#***e* ******* ******* 16
Direct Grove-to-Cannery Fruit............................. 16

Variations in Packing and Selling Cost Among Firms............* 16

Oranges and Tangerines.................................. 16
Grapefruit.......... ...... .......... .. ............ ..... 18

Relationship of Seasonal Volume to Average Cost of Packing
and Selling....... ......... ......... .......... ....... 20

Trends in Packing and Selling Cost.......... ................ 21



Introduction


This summary is based on the accounting records of 38 citrus
packinghouses for the citrus marketing season 1965-66. Ten of these
houses were located in the Indian River section along the East Coast
and 28 were in the Interior section.

The volume of packed fruit handled by the 38 packinghouses in
1965-66 amounted to 14,842,405 equivalent boxes of 1-3/5 bushels,
or approximately 52 percent of the certified fresh fruit shipments.
The packed volume ranged from 19,000 to 1,294,000 boxes and averaged
390,590 boxes. Thus, the sample packinghouses were considerably
larger than the average of all citrus packinghouses in the state.


Calculated from data in 1965-66 Season Annual Report, Division
of Fruit and Vegetable Inspection, Winter Haven, Florida.


-1-









These latter averaged only 178,147 boxes for licensed and regulated
fresh fruit shippers who shipped fruit from about 161 houses in
1965-66. Some of these houses were very small units.

The distribution of fruit handled by class of fruit is shown in
Table 1. Cannery fruit through the house (eliminations) was not obtained


Table 1.--Distribution of Citrus Fruit Handled by Class of Fruit,
38 Packinghouses, 1965-66 Seasona


Class of Fruit Total Average Volume Percent of
Volume Per House Total Volume
1-3/5 Bu. 1-3/5 Bu.
Bbxes Boxes
10 East Coast Packinghouses:
Packed fruit 3,517,667 351,767 58.4
Cannery fruit through house 1,587,032 158,702 26.3
Total through house 5,104,699 510,469 84.7

Direct grove-to-cannery 921,858 92,187 15.3
Total 6,026,557 602,656 100.0

28 Other Packinghouses:
Packed fruit 11,324,738 404,455 39.2
Cannery fruit through house 7,334,525 261,947 25.4
Total through house 18,659,263 666,402 64.6

Direct grove-to-cannery 10,155,322 362,690 35.1
Packed fruit purchased 90,467 3,231 .3
Total 28,905,052 1,032,323 100.0

38 Packinghouses:
Packed truit 14,842,405 390,590 42.5
Cannery fruit through house 8,921,557 234,777 25.5
Total through house 23,763,962 625,367 68.0

Direct grove-to-cannery 11,077,180 291,505 31.7
Packed fruit purchased 90,467 2,381 .3
Total 34,931,609 919,253 100.0


aCannery fruit through house not obtained from three
grove-to-cannery not obtained from nine houses.

2bid
Ibid.


houses and






-3-


from three houses, and direct grove-to-cannery fruit was not obtained
from nine houses. Packed fruit represented 42 percent of the total
volume of all houses, but was 58 percent of the East Coast houses and
39 percent of the other houses. Fruit going direct from grove-to
cannery was 32 percent of the total for all houses, but only 15 percent
for the East Coast houses. The packed fruit of the East Coast houses
consisted of 68 percent grapefruit, 31 percent oranges, and
1 percent tangerines; the other houses had 38 percent grapefruit, 52
percent oranges and 10 percent tangerines. The East Coast firms 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 elim-
inations, the packout averaged 61.2 percent of the fruit through the
house for 35 houses; 68.9 percent for the East Coast group, and 58.9
percent for the other houses (Table 2).


Table 2.--Percent of Total Fruit Received Which was Packed for Shipment,
35 Packinghouses, 1965-66


Kind of Fruit East Coast Other All
Houses Houses Houses

Percent Percent Percent

Oranges 61.9 57.5 58.2
Grapefruit 72.4 58.5 63.0
Tangerines 89.0 70.8 71.4

All Fruit 68.9 58.9 61.2


Costs of Packing and Selling, 1965-66


The cost data made available by the fresh citrus fruit packing-
houses showed the itemized expenses of each for 1965-66 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 usually made by the firm's own accountants or by
outside auditors. For eight houses which had only total costs by
items of expense, allocations were made to each pack using average
ratios based on labor requirement. Thus, there were several dif-
ferent methods of cost allocation used in the original data from which
the averages were derived. Methods used for distributing materials
cost, general and administrative and selling expenses appeared to be
similar, but labor and other direct operating costs were allocated by
various methods. In many 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 only with administrative
expense at the same rate 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 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 sub-
sequent tables. Packing and selling costs for those containers
handled in small volumes and by few houses are not considered repre-
sentative as they may reflect unusual conditions and costs.

The 38 packinghouses prepared a total of 57 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 1965-66 from the standpoint of total volume. This
was followed by the 1-3/5 bushel Bruce box and the 4/5 bushel half
Bruce box. These three containers were used for about 70 percent of
the packed oranges. For grapefruit, the 4/5 bushel fiberboard box was
the container used for the largest volume with the 1-3/5 bushel Bruce
box next in order. Closely following was the 5-lb. polyethylene bag
in master carton, About 85 percent of the grapefruit was sold in
these three 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 grape-
fruit in the East Coast section and, with the 4/5 bushel Bruce, the
two containers carried almost all the packed citrus.

Itemized costs of packing and selling oranges, grapefruit and
tangerines for the 1965-66 season are given in Tables 4, 5 and 6 for
38 packinghouses. These tables show the weighted average costs for the
major items of expense 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 in these detailed
tables.

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 sep-
arately 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 six or seven cents more than the one
used by the interior houses. The 4/5 bu. wirebound boxes were also
more expensive for the East Coast houses, but were used in lower
volume.







-5-


Table 3.--Number of Firms, Volume of Citrus
and Selling Cost, by Type of Container, 38


Fruit Handled and Total Packing
Packinghouses, Florida, 1965-66


Total
Co r Number Total Average Packing and
ontaner of Volume Per Firm Selling Cost
Firms Per Box

1-3/5 bu. equivalent


Oranges:
4/5 bu. fiberboard box
4/5 bu. fiberboard box Temples
1-3/5 bu. Bruce box
1-3/5 bu. Bruce box Temples
4/5 bu. half Bruce box
4/5 bu. half Bruce box Temples
5-lb. poly. bag in master carton
5-lb. poly. bag in master carton
- Temples
5-lb. mesh bag
Bulk in truck
Bulk in truck Temples
8-lb. mesh bag
5-lb. mesh bag in master carton
8-lb. poly. bag in master carton
Field box
Field box Temples
1-3/5 bu. Bruce export
20-lb. mesh bag (1/4 box)
4/5 bu. Bruce flat box
4/5 bu. Bruce flat box Temples
4/5 bu. Bruce export
4-lb. poly. bag in master carton
8-lb. mesh bag in master carton
5-lb. Vexar bag in master carton
4/5 bu. fiberboard carton export
1-3/5 bu. fiberboard box (Texas carton)
8-lb. mesh bag in master Bruce
5-lb. mesh bag in master Bruce
4-lb. mesh bag in master carton
1-3/5 bu. standard box
Miscellaneous containers


2,420,506
55,379
1,129,610
3,162
752,113
547,006
514,211

56,389
258,883
208,360
22,145
149,311
146,550
138,293
89,542
14,476
82,823
54,421
41,701
141,072
40,096
38,846
38,442
34,275
5,983
4,789
4,374
2,715
845
296
4,233


Total packed oranges


38 7,000,847


Grapefruit:
4/5 bu. fiberboard box
1-3/5 bu. Bruce box
5-lb. poly. bag in master carton
Bulk in truck
5-lb. mesh bag


67,236
11,076
41,837
3,162
23,504
39,072
20,568

9,398
11,767
10,418
7,382
6,787
7,327
6,585
8,954
2,895
20,706
2,591
13,900
28,214
10,024
2,045
2,136
11,425
1,496
1,197
1,458
543
282
148
1,058


$1.4941
1.5290
; .2676
1.1463
1.5832
1.7252
1.8378

2,2687
1.8574
.7850
1.0771
1.6291
2.3244
1.7995
.8837
.6702
1.1978
1.4536
1.7559
1.8420
1.4613
1.8646
2.0363
2.0207
1.3491
1.0687
1.9751
2.3345
2.4696
1.8924
1.5886


184,233


$1.5380


3,751,031
986,793
955,713
207,342
160,270


101,379
37,954
39,821
10,913
7,285


$1.4120
1.1623
1.7410
.7542
1.7703









Table 3.--Number of Firms, Volume of Citrus Fruit Handled and Total Packing
and Selling Cost, by Type of Container, 38 Packinghouses, Florida, 1965-66
(Concluded)
Total
Number Total
n inr Total Average Packing and
Container of
r o Volume Per Firm Selling Cost
FirmsPer Box

Grapefruit:(Continued) 1-3/5 bu. equivalent
8-lb mesh bag 22 125,221 5,692 $1.5256
4/5 bu. half Bruce 27 122,647 4,542 1.4283
5-lb. mesh bag in master carton 19 114,495 6,026 2.2151
8-lb. poly. bag in master carton 18 62,134 3,452 1.6937
Field box 10 50,983 5,098 .7942
4/5 bu. Bruce export 4 46,144 11,536 1.4860
4/5 bu. fiberboard box export 5 39,463 7,892 1,3063
8-lb. mesh bag in master carton 19 -29,383 1,546 1.9206
1-3/5 bu. fiberboard box (Texas carton) 4 9,286 2,322 .9578
5-lb. mesh bag in master Bruce 5 7,787 1,557 2.2481
20-lb. mesh bag (1/4 box) 9 2,187 243 1.2797
8-lb. mesh bag in master Bruce 3 1,811 604 2.0436
1-3/5 bu. Bruce export 2 906 453 1.1353
1-3/5 bu. standard box 2 230 115 1.7064
Miscellaneous containers 3 2,596 865 1.5651

Total packed grapefruit 38 6,676,422 175,695 $1.4266
Tangerines:
4/5 bu. half Bruce box 25 700,115 28,005 $1.7224
4/5 bu. Bruce flat box 8 433,581 54,198 1.8385
Bulk in truck 7 12,053 1,722 .8550
Field box 6 9,311 1,552 .9217
1-3/5 bu, Bruce box 3 4,802 1,601 1.3256
4/5 bu. fiberboard box 6 2,698 450 1.7761
Miscellaneous containers 2 236 118 1.7698
Total packed tangerines 33 1,162,796 35,236 $1.7531

Misc. (Limes. Lemons. Kumquats):
Miscellaneous Containers 1 2,340 2,340 $27171
Total packed fruit 38 14,842,405 390,590 $1.5049
Bulk Fruit through House to Cannery:
Oranges 35 4,736,769 135,336 $0.2287
Grapefruit 35 3,758,313 107,380 .1689
Tangerines 29 426,475 14,706 ,2796
Total Bulk through house 35 8,921,557 254,902 $0.2059
Direct, Grove to Cannery 29 11,077,180 381,971 $0.0711
Packed Fruit Purchased 4 90,467 22,617 .0794
Total Volume, All Fruit 38 34,931,609 919,253 $0.7148







-7-


Table 4.--Welghted Average Costs of Packing and
1-3/5 Bushel Equivalent, by Type of Container,


Selling Florida Oranges, Per
38 Packinghouses, 1965-66


1-3/5 5-lb. 8-lb. 5-1b.Mesh 5-lb. Poly.
Type of Container Bu. Bruce Mesh Mesh Bag in Bag In
Box Bag Bag Master Master
Box Bag BCarton Carton


Number of packinghouses
Average volume packed
(1-3/5 bu. equivalent)


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
Administrativea
Selling
Other items
Total packing and selling


27 22 22 20 25

41,837 11,767 6,787 7,327 20,568

Cost Per 1-3/5 Bushel

$0.3906 $0.7750 $0.5807 $1.2262 $0.6983
.0155 .0139 .0098 .0089 .0107
$0.4061 $0.7889 $0.5905 $1.2351 $0.7090

$0.0417 $0.0564 $0.0564 $0.0515 $0.0564
.0517 .0115 .0064 .0600 .0554
.0849 .1485 .143N .1254 .1403
.0874 .1593 .1386 .1732 .1691
.0550 .1037 .1032 .0966 .0877
.0356 .0491 .0443 .0472 .0573
$0.3563 $0.5285 $0.4921 $0.5539 $0.5662

$0.0147 $0.0215 $0.0233 $0.0162 $0.0238
.0454 .0630 .0480 .0646 .0635
.0151 .0186 .0188 .0170 .0221
$0.0752 $0.1031 $0.0901 $0.0978 $0.1094

$0.0095 $0.0160 $0.0168 $0.0126 $0.0107
.0095 .0141 .0158 .0107 .0109
.0391 .0482 .0454 .0548 .0558
.0034 .0007 .0004 .0005 .0206
$0.0615 $0.0790 $0.0784 $0.0786 $0.0980


$0.8991
.0712
.0721
.2252
$1,2676


$1.4995
.0642
.0723
.2214
$1.8574


$1.2511
.0767
.0854
.2159
$1.6291


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


$1.9654
.0625
.0644
.2321
$2.3244
salaries,


$1,4826
.0653
.0652
.2247
$1.8378
office


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, degrcening, precooling, color-add and- wax,


I


*


I







-8-


Table 4.--Weighted Average
1-3/5 Bushel Equivalent,


Costs of Packing and Selling Florida Oranges, Per
by Type of Container, 38 Packinghouses, 1965-66
(Continued)


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. equivalent)


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 and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrative
Selling
Other items
Total packing.and selling


14,832 25,109 23,504 67,146 66,482 67,236

Cost Per 1-3/5 Bushel

$0.6223 $0.5221 $0.5320 $0.5005 $0.4343 $0.4528
.0315 .0302 .0303 .0123 .0100 .0106
$0.6538 $0.5523 $0.5623 $0.5128 $0.4443 $0.4634

$0.0466 $0.0436 $0.0439 $0.0470 $0.0479 $0.0477
.0509 .0933 .0891 .0484 .0560 .0539
.1291 .1079 .1100 .1371 .1201 .1248
,1332 .1101 .1124 .1435 .1065 .1169
.0786 .0829 .0825 .0820 .0908 .0883
.0521 .0500 .0502 .0513 .0466 .0479
$0.4905 $0.4878 $0.4881 $0.5093 $0.4679 $0.4795

$0.0219 $0.0158 $0.0164 $0.0194 $0.0188 $0.0189
.0518 .0590 .0583 .0488 .0560 .40540
.0153 .0184 .0181 .0183 .0202 .0197
$0.0890 $0,0932 $0.0928 $0.0865 $0.0950 $0.0926

$0.0149 $00149 $. $0o0148 $0.0167 $0.0122 $0.0134
.0154 .0127 .0130 .0147 .0130 .0135
.0596 .0513 .0522 .0506 .0519 .0515
-- .0024 .0021 -- .0081 .0059
$0.0899 $0.0813 $0.0821 $0.0820 $0.0852 $0.0843


$1.3232
.0555
.0442
.2328
$1.6557


$1.2146
.0585
.0679
.2343
$1.5753


$1.2253
.0582
.0656
.2341
$1.5832


$1.1906
.0604
.0518
.2736
$1.5764


$1.0924
.0699
.0712
.2292
$1.4627


$1.1198
.0671
.0656
.2416
$1.4941


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.


--






-9-


Table 4.--Weighted Average
1-3/5 Bushel Equivalent,


Costs of Packing and Selling Florida Oranges, Per
by Type of Container, 38 Packinghouses, 1965-66
(rnnr lldpfd)


.... V t ,
8-lb. 8-lb.
'esh Poly Bulk Bulk Through House to Cannery
Mesh Poly. Bulk
Type of Container Bag in Bag An In East Other All
Master Master Truck Coast Houses Houses
Carton Carton


Number of packinghouses
Average volume packed
(1-3/5 bu. equivalent)


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 and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrativea
Selling
Other items
Total packing and selling


18 21 20 10 25 35

2,136 6,585 10,418 67,925 162,301 135,336
Cost Per 1-3/5 Bushel

$1.0208 $0.7222 -- -- -
.0112 .0113 $0.0039 -- $0.0006 $0.0005
$1.0320 $0.7335 $0.0039 -. $0.0006 $0.0005

$0.0549 $0.0501 $0.0385 $0.0348 $0.0293 $0.0301
.0599 .0726 .0059 -- ""
.1147 .1351 .0972 .0514 .0449 .0458
.1465 .1580 .0921 -- -- .
.0844 .0910 .0557 .0016 .0018 .0017
.0449 .0519 .0305 .0096 .0126 .0122
$0.5053 $0.5587 $0.3199 $0.0974 $0.0886 $0.0898

$0.0157 $0.0170 $0.0096 $0.0059 $0.0056 $0.0057
.0600 .0542 .0310 .0198 .0288 .0275
.0166 .0155 .0073 .0030 .0045 .0042
$0.0923 $0.0867 $0.0479 $0.0287 $0.0389 $0.0374

$0.0090 $0.0094 $0.0095 $0.0076 $0.0064 $0.0066
.0109 .0125 .0072 .0049 .0050 .0050
.0421 .0416 .0247 .0121 .0230 .0215
.0001 .0065 .0003 -- .0004 .0003
$0.0621 $0.0700 $0.0417 $0.0246 $0.0348 $0.0334


$1.6917
.0723
.0587
.2136
$2.0363


$1.4489
.0703
.0559
.2244
$1.7995


$0.4134
.0623
.0504
.2589
$0.7850


$0.1507
.0678

.0093
$0.2278


$0.1629
.0567
u-
.0093
$0.2289


$0.1611
.0583

.0093
$0.2287


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.






-10-


Table 5.--Weighted Average Costs of Packing and Selling Florida Grapefruit, Per
1-3/5 Bushel Equivalent, by Type of Container, 38 Packinghouses, 1965-66


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


Number of packinghouses
Average volume packed
(1-3/5 bu. equivalent)


Material s:
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 and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrative
Selling
Other items
Total packing and selling


26 24 19 22 22 19

37,954 39,821 6,026 7.285 5,692 10,913
Cost Per 1-3/5 Bushel

$0.4127 $0.7029 $1.2133 $0,7836 $0.5760
.0132 .0113 .0101 .0113 .0097 $0.0024
$0.4259 $0.7142 $1.2234 $0.7949 $0.5857 $0.0024

$0.0394 $0.0605 $0.0566 $0.0584 $0.0569 $0.0423
.0538 .0626 .0637 .0189 .0040 .0005
.0648 .1221 .1167 .1164 .1183 .0797
.0644 .1445 .1413 .1374 .1?00 .0572
.0575 .0925 .0963 .1164 .1229 .0456
.0273 .0483 .0424 .0416 .0373 .0228
$0.3072 $0.5305 $0.5170 $0.4891 $0.4594 $0.2481

$0.0140 $0.0213 $0.0189 $0.0192 $0.0187 $0.0093
.0378 .0531 .0498 .0473 .0474 .0298
.0144 .0190 .0169 .0216 .0162 .0153
$0.0667 $0.0934 $0.0856 $0.0881 $0.0823 $0.0544

$0.0060 $0.0095 $0.0090 $0.0133 $0.0129 $0.0098
.0074 .0116 .0113 .0124 .0130 .0077
.0286 .0507 .0478 .0456 .0455 .0265
.0018 .0041 .0003 .0005 .0003 .0001
so.0438 S0.0759 S0.0684 $0.0718 $0.0717 $0.0441


$0.8430
.0787
.0656
.1750
$1.1623


$1.8944
.0812
.0667
.1791
$1.7410


$1.8944
.0791
.0636
.1780
$2.2151


$1.4439
.0738
.0762
.1764
$1.7703


$1.1991
.0786
.0716
.1763
$1.5256


$0.3490
.0794
.0713
.2545
$0.7542


aAdministrative expenseincludes 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.


,----c- T-r-.c- -







-11-


Table 5.--Weighted Average
1-3/5 Bushel Equivalent,


Costs of Packing and Selling Florida Grapefruit, Per
by Type of Container, 38 Packinghouses, 1965-66
(Continued)


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. equivalent)


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 labbr
Other direct operating:
Power, lights, water
Repairs--bidgs., equip.
Misc. supplies & exp.
Total other direct
Indirect operating:
Insurance--fire & cas.
Taxes and licenses
Depreciation
Rent
Total 4ndtrect
Total packing expense
Administrative
Selling
Other items
Total packing and selling


2 25 27 10 27 37

1,388 4,795 4,542' 210,951 60,392 101,379
Cost Per 1-3/5 Bushel

$0.6208 $0.5644 $0.5657 $0.5034 $0.4335 $0.4729
.0306 .0242 .0243 .0122 .0087 .0106
$0.6514 $0.5886 $0.5900 $0.5156 $0.4422 0.4835

$0.0470 $0.0346 $0.0349 $0.0478 $0.0422 $0.0454
.0714 .0891 .0887 .0578 .0588 .0582
.1011 .0824 .0828 .1055 .0783 .0937
.0863 .0903 .0902 .0988 .0871 .0937
.0919 .0759 .0763 .0969 .0820 .0904
.0388 .0355 .0356 .0454 .0365 .0415
$0.4365 $0.4078 $0.4085 $0.4522 $0.3849 $0.4229

$0.0080 $0.0145 $0.0143 $0.0123 $0.0162 $0,0140
.0266 .0481 .0476 .0331 .0406 .0364
.0057 .0132 .0131 .0314 .0165 .0249
$0.0403 $0.0758 $0.0750 $0.0768 $0.0733 $0.0753

$0.0071 $0.0104 $0.0103 $0.0179 $0.0075 $0,0134
.0077 .0101 .0100 .0136 .0090 .0116
.0192 .0367 .0363 .0464 .0334 .0407
-- .0008 .0008 -- .0040 .0018
$0.0340 $0.0580 $0.0574 $0.0779 $0.0539 $0.0675
$1.1622 $1.1302 $1.1309 $1.1225 $0.9543 $1.0492
.0692 .0699 .0699 .0689 .0747 .0714
.0494 .0515 .0514 .0757 .0741 .0750
.3661 .1717 .1761 .2440 .1807 .2164
$1.6469 $1.4233 $1.4283 $1.5111 $1.2838 $1.4120


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






-12-


Table 5.--Weighted Average Costs of Packing and Selling Florida
Grapefruit, Per 1-3/5 Bushel Equivalent, by Type of Container
38 Packinghouses, 1965-66 (Concluded)


Type of Container


8-lb.
Poly.
Bag in
Master
Carton


Bulk Through House to Cannery

East Other All
Coast Houses Houses


Number of packinghouses
Average volume packed
(1-3/5 bu. equivalent)


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 and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrative
Selling
Other items
Total.papking and selling


18 10 25 35-

3.452 90.235 114,239 107,380
Cost Per 1-3/5 Bushel


$0.7135
,0098
$0.7233


$o.0008 $0.0006
s0.0008 $0,0006


$0.0547 $0.0342 $0.0208 $0.0240
.0717 -- "
.1079 .0333 .0223 .0250
.1288 -
.0942 .0002 .0012 .0009
.0461 .0074 .0060 .oo64
n cni t.n_6n7T1 S0.0503 $0.0563


$0.0169 $0.0030 $0.0036 $0.0035
.0500 .0103 .0161 .0147
.0159 .0033 .0031 .0031
$0.0828 $0.0166 S0.0228 $0.0213

$0.0084 $0.0046 $0.0025 $0.0030
.0113 .0033 .0025 .0027
.0442 .0083 .0108 .0102
.0008 -- .0002 .0001
$0.0647 $0.0162 $0.0160 $0.0160


$1.3742
.0737
.0648
.1810
$1.6937


$0.1079
.0664

.0090
$0.1833


$0.0899
.0651

.0093
$0.1643


$0.0942
.0654

.0093
$0.1689


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


office salaries,
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-adi and wax.


--- -


--


I I


--


--






-13-


Table 6.--Weighted Average Costs of Packing and Selling Florida Tangerines
and Grove to Cannery Fruit, Per 1-3/5 Bushel Equivalent, 38 Packinghouses,
1965-66

Tangerines All Fruit
Type of Container 4/5 Bu. 4/5 Bu. Bulk Direct-
Half Bruce Bruce Through Grove-to-
Box Flat Box House to Cannery
Cannery


Number of packinghouses
Average volume packed
(1-3/5 bu. equivalent)


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 and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrative
Selling
Other items
Total packing and selling


25 8 29 29

28,005 54,198 14,706 381,971

Cost Per 1-3/5 Bushel

$0.5386 $0.6479 --
.0326 .0205 $0.0004 --
$0.5712 $0.6684 0.0004 --

$0.0550 $0.0634 o$00355
.0806 .0777 --
.1467 .1666 .0620 $0.0027
.1472 .1418 --
.1047 .0855 .0024 -
.0571 .0740 .0183 .0003
$0.5913 $0.6090 $0.1182 $0.0030

$0.0216 $0.0340 $0.0087 $0.0001
.0753 .0686 .0367 .0061
.0168 .0298 .0044 .0002
$0.1137 $0.1324 $0.0498 __ 0.0064

$0.0161 $0.0o97 $0.0086 $0,0002
.0158 .0155 .0065 .0002
.0599 .0551 .0232 0010
.0023 .0011 o0001 -
$0.0941- $0. 081 4 C'__'o
$1.3703 $1.4912 ;0,2.063 $00i08
.0645 .0944 .0635 .0522
.0758 .0673
.2118 .1856 .0093 ,0081
$1.7224 $1.8385 $0,2796 30,0711


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 Fiorlda Citrus
Mutual assessments, degreening, precooling, color-add and wax.








-14-


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
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 Bruce box for oranges and grapefruit (Tables 4 and 5).
For oranges, 27 houses had an average container cost for the
1-3/5 bushel Bruce box of $0.3906; and for grapefruit, 26 houses, not
quite identical with the orange houses, had a cost of $0.4127; yet the
container was the same for each type of fruit. Other items of cost
show similar small variations. The average costs shown in each cate-
gory are weighted averages of the packinghouses included, i.e., the
total money cost of each item for all houses was divided by the total
number of boxes packed. The use of weighted averages in this summary
tends to fix the cost of packing and selling somewhat lower than the
simple average. This is true because the larger houses, which
usually had somewhat lower costs, have more effect on the average than
smaller houses. For example, the weighted average cost of packing
and selling oranges in the 1-3/5 bushel Bruce box by 27 firms was
$1.2676, or six cents higher than the simple average of $1.3276.
Eighteen firms had total costs higher than the weighted average and
nine 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.

In the detailed costs (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 dis-
tribution of these groups is shown in Table 7. Some of the items such
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 expendi-
ture 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 Bruce box was $1.27. The two major expense
items--materials and labor--accounted for 60 percent of the total cost.
Materials expense, which included the wirebound crate, liner and label,
averaged about $0.40 per box and labor averaged $0.36.

The cost per 1-3/5 bushel equivalent for oranges packed in the
4/5 bushel half Bruce box was $1.58; and in the 4/5 bushel fiberboard
box was $1.58 on the East Coast, and $1.46 for other packinghouses.
Oranges packed In 5-lb. mesh bags averaged $1.86 to pack and sell,
and 8-lb. mesh bags cost $1.63. Both materials and labor costs were
more per 1-3/5 bushel equivalent for the 5-lb. than for the 8-lb. bag.







-15-


Table 7.--Typical Distribution of Administrative and General Expense
and Other Items, 38 Packinghouses, 1965-66

Oranges Grapefruit Tangerines
4/5 Bu. 4/5 Bu. 4/5 Bu.
Half Bruce Fiberboard Half Bruce
Box Box Box
Cost Per 1-3/5 Bushel
Administrative & General Expense:
Management & office salaries $0.0386 $0.0356 $0.0386
Office supplies & expense .0026 .0039 .0032
Auto, travel & entertainment .0016 .0065 .0023
Operating interest .0008 .0058 .0030
Telephone & telegraph .0016 .0032 .0025
Miscellaneous administrative .0130 .0164 .0149
Total administrative & general $0.0582 $0.0714 $0,0645

Other Items:
Degreening, color-add & wax $0.0621 $0,0278 $0,0439
Precooling .0136 .0273 .0223
Florida citrus advertising tax .0988 .0799 .0501
Federal-State inspection .0404 ,0400 .0376
Florida Citrus Mutual .0089 .0090 .0090
Growers Administrative Committee .0043 .0044 .0043
Miscellaneous other .0060 .0280 .0446
Total other items $0.2341 $0.2164 $0.2118


The most expensive pack for oranges in common use in 1965-66
was the 5-lb. 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 $2.32 per 1-3/5 bushel equivalent. The average cost of
the 5-lb. polyethylene bag in master cartons was $1.84, and the 4-lb.
polyethylene bag in master cartons was $1.86. Polyethylene bag costs
for the same size vary with the type of closure used.

The average cost of packing and selling oranges loaded bulk-in-
truck was $0.78 per 1-3/5 bushel equivalent. Bulk oranges through-
house-to-cannery (eliminations) averaged $0.23 per box for both East
Coast and Interior 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
grapefruit are shown in Table 5. The total cost per 1-3/5 bushel
equivalent for packing and selling grapefruit was $1.16 for the 1-3/5
bushel Bruce box, 63 percent of which was materials and labor costs.
Packing and selling costs were $1.43 for the 4/5 bushel half Bruce







.16-


box all areas; $1.51 for the 4/5 bushel fiberboard box, East Coast,
and $1.28 for Interior houses. Packing and selling costs were $1.77
for the 5-lb. mesh bag; $1.53 for the 8-lb. mesh bag; $2.22 for the
5-lb. mesh bag in master carton; $1,74 for the 5-lb. polyethylene
bag in master carton; and $1.69 for the 8-lb. polyethylene bag in
master carton. Grapefruit sold bulk-in-truck cost $0.75 per box, and
bulk grapefruit through-house-to-cannery (eliminations) averaged
$0.17 per box.

Tangerines.--The weighted average costs of packing and selling
tangerines are shown in Table 6. Two types of 4/5 bushel wirebound
boxes were the containers in most common use in 1965-66. The 1-3/5
bushel equivalent cost for packing and selling tangerines in the
4/5 bushel half Bruce box was $1.72, and in the 4/5 bushel wirebound
flat box, $1.84.

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 67 percent of the
total cost of packing and selling for the half Bruce, and 69 percent
for the 4/5 bushel flat Bruce. Bulk tangerines through-house-to-
cannery averaged $0.28 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 $0,0711 per
box (Table 6). This was principally administrative expense as direct
packinghouse expenses were negligible for this class of fruit.

Variations in Packing and Selling Cost Among Firms

There was a wide variation among firms in the cost of packing
and selling citrus in 1965-66. This occurs each season and is due to
a variety of factors, most of which cannot be identified from accounting
summaries of operations. Some of the variation may be due to the
method of allocating aggregate costs to each pack. An index is
prepared annually to eliminate the effect of this on each firm's
over-all costs.

Oranges and tangerines.--The variation among firms in the total
cost of packing and selling oranges and tangerines per !-3/5 bushel
equivalent in the various containers is shown in Table 8. These costs
are arrayed in 10 cents intervals for six types of containers for
oranges and one for tangerines. For the 27 firms packing oranges
in 1-3/5 bushel Bruce boxes, the total packing and selling costs ranged
from $1.14 to $1.67 per box with 13 firms falling within the range of
$1.20 to $1.39. Thirty-one firms packing 4/5 bushel half Bruce
boxes had costs between $1.37 and $2.15, with 18 in the range of $1.50
to $1.79 per 1-3/5 bushel equivalent. Costs for the 4/5 bushel fiber-
board box varied from $1.44 to $1.89 for 10 East Coast houses, and
from $1.22 to $1,97 for 26 other packinghouses. The East Coast section
had container costs about seven cents higher per box. Costs for 16 of
the 26 Interior firms were within the range of $1.30 to $1.59.






-17-


Table 8.--Variations in the Cost Per 1-3/5 Bushel Equivalent of Packing and
Selling Florida Oranges and Tangerines, by Type of Container, 38 Packing-
houses, 1965-66 Season

Oranges Tangerines
Cost Per 8-lb. 5-lb. 4
1-3/5 Bushel 4/5 Bu. 4/5 Bu. 5-lb. 4/5 Bu.
Equivalent 1-3/5 Bu. Half Carton Mesh Bag in Bag in Ha
Bruce Box Bruce East Other Bag Master Master Br
Box Coast Carton Carton
Number of Packinghouses

Packing and Selling Cost
$1.10 $1.19 7 -
1.20 1.29 5 4 -
1.30 1.39 8 2 7 -
1.40 1.49 2 5 2 4 -
1.50 1.59 3 5 5 1 I 3
.60 1.69 2 6 4 3 3 3 4
1.70 1.79 8 2 1 6 5 6 6
1.80 1.89 4 2 1 2 4 5 3
1.90 1.99 1 1 2 4 6
2.00 2.09 3 3 2 1
2.10 2.19 1 2 2 3 -
2.20 and over 4 3 4 1
Total Number 27 32 10 26 22 21 25 25

Packing Cost Only
(Materials, Labor, Packinghouse Expenses)
$0.70 $0.79 1 -
.80 .89 12 1 -
.90 .99 6 8 -
1.00 1.09 4 5 7 -
1.10 1.19 3 5 5 3 1 2
1.20 1.29 I 10 2 5 2 3
1.30 1.39 6 5 5 1 6
1.40 1.49 4 2 1 3 6 9 4
1.50 1.59 1 1 3 3 6 6
1.60 1.69 2 4 1 4 2
1.70 1.79 1 1
1.80 1.89 1 4 1
1.90 1.99 11
2.00 2.09 2 1 -
2.10 2.37 -- 1 2 -
Total Number 27 32 10 26 22 21 25 25






-18-


Packing and selling costs of oranges in 5-lb. mesh bags varied
between $1.60 and $2.61 for 22 packinghouses of which 10 had costs
between $1.70 and $1.99. For 5-lb. polyethylene bags in master
cartons the total packing and selling cost ranged from $1.51 to $2.69
for 25 firms of which 15 ranged from $1.70 to $1.99. Costs for 8-lb.
polyethylene bags in master cartons varied from $1.51 to $2.42 for 21
firms with 9 in the range of $1.70 to $1.89.

Packing and selling costs for tangerines per 1-3/5 bushel
equivalent ranged from $1.48 to $2.31 for the 4/5 bushel half Bruce
box for 25 firms. Thirteen of these had costs between $1.60 and $1.89.

The variations in packing costs only (excluding administrative,
selling and other extraneous costs) were similar to the variations in
packing and selling costs. The range for the 27 firms handling 1-3/5
bushel Bruce boxes of oranges was from $0.78 to $1.22. The packing
cost for 18 of these firms ranged from $0.80 to $0.99. The cost of
packing oranges in 4/5 bushel half Bruce boxes for 32 firms ranged
from $1.02 to $1.65, and for 21 of these firms between $1.10 and
$1.39. Ten East Coast houses packing 4/5 bushel fiberboard boxes
had costs varying from $1.11 to $1.54 per box with 26 Interior houses
ranging from $0.86 to $1.50. Costs for 15 of the Interior houses
were between $0.90 and $1.09. Twenty-two firms packing the 5-lb.
mesh bag had packing costs from $1.25 to $2.17 with 11 firms with
costs from $1.30 to $1.59.

The spread in packing cost for the 5-lb. polyethylene bag in
master carton for 25 firms was between $1.15 and $2.37 with 15 firms
Included within the cost interval of $1.40 to $1.59.

The costs of packing only for tangerines per 1-3/5 bushel
equivalent varied from $1.16 to $1.84 for 4/5 bushel half Bruce boxes,
with 16 of the 25 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 26 firms
using 1-3/5 bushel Bruce boxes had costs which varied between $0.98
and $1.47 for packing and selling each box as shown by data in Table 9.
Of these firms, 19 had costs between $1.00 and $1.29. For the 4/5
bushel half Bruce box, 27 firms had total packing and selling costs
ranging between $1.20 and $1.89. Of these, 15 had costs from $1.30
to $1.59. Ten East Coast firms using the 4/5 bushel fiberboard box
had costs ranging from $1.28 to $1.62 per box, and 27 interior
houses varied from $1.09 to $1.71. Twelve of the Interior houses
were between $1.20 and $1.39. For the 8-lb. mesh bag, 22 houses had
costs ranging from $1.30 to $1.97 per box with 12 of these between
$1.30 and $1.59.
The packing and selling costs for grapefruit in 5-lb. mesh bags
were from $1.52 to $2.51 for 22 firms with 15 firms between $1.50 and
$1.89. For 5-lb. polyethylene bags in master cartons, 24 firms
ranged from $1,46 to $2.62 with 18 firms falling between $1.50 and
$1.89 per 1-3/5 bushel equivalent.








-19-


Table 9.--Variations in the Cost Per 1-3/5 Bushel Equivalent of Packing and
Selling Florida Grapefruit, by Type of Container, 38 Packinghouses,
1965-66 Season


Cost Per
1-3/5 Bushel
Equivalent


4/5 Bu.
1-3/5 Bu. Half
Bruce Box Bruce
Box


4/5 Bu.
Carton
East Other
Coast


8- b.
Mesh
Bag


5-1b.
Mesh
Bag


5-lb. Poly.
Bag in
Master
Carton


Number of Packinghouses

Packing and Selling Cost


$0.90 $0.99
.00 1.09
1.10 .19
1.20 1.29
1.30 1.39
1.40 .49
1.50 1.59
1.60 1.69
1.70 1.79
1.80 1.89
1.90 1.99
2.00 and over
Total Number


- 2 -
5 -
1 4 2 -
2 8 7 "
4 4 2 =
1 3 3 7
2 6 2
1 3
1 3
1 5
2


10 27 22 22


(Materials,


Packing Cost Only
Labor, Packinghouse


10 1 6 -
5 2 1 12 3 -
2 5 6 4 6 -
11 1 3 3 1
-2 1 2 5 8 4
4 1 3 2 5
-2 3 8
-1 4 2
S1 3 1
S- -1 1

. .. 1 2


Tota Numer 2 27 10 2 22 2 2


1
4
5
6
3
2
3


24


Expenses)


$0.60
.70
.80
.90
S.00
1.10
1.20
1.30
1.40
1.50
1.60
1.70
1.80
1.90


- $0.69
- ..79
- .89
- .99
- 1.09
- 1.19
- 1.29
- 11.39
- 1.49
- 1.59
- 1.69
- 1.79
- 1.89
and over


- -


22 22 24


Total Number 26


27 10 27







-20-


Packing costs only (excluding administrative, selling and other
extraneous costs) for grapefruit in 1-3/5 bushel Bruce boxes for 26
firms varied from $0.67 to $1.06. Seventeen of these firms ranged
between $0.70 and $0.89. Twenty-seven packinghouses had packing costs
ranging from $0.90 to $1.43 for the 4/5 bushel half Bruce box with 16
of these firms ranging from $1.00 to $1.19. The 10 East Coast houses
packing the 4/5 bushel fiberboard box were within the cost range of
$0.95 and $1.32, and 27 Interior houses varied from $0.80 to $1.29.
Eighteen of the Interior houses had packing costs between $0.80 and
$0.99. Packing costs for the 8-lb. mesh bag varied from $0.98 to $1.64
per box for 22 firms, with 14 between $1.00 and $1.29.

The cost of packing in 5-lb. mesh bags for 22 firms ranged from
$1.22 to $2.26 per box with 10 houses between $1.20 and $1.39. Varia-
tion in cost for the 24 firms packing grapefruit in 5-lb. polyethylene
bags in master cartons ranged from $1.13 to $2.37, Costs for 13 houses
fell within the range of $1.30 to $1.49,


Relationship of Seasonal Volume to Average
Cost of Packing and Selling

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.

Packinghouses in the smallest volume group (under 300,000 boxes)
had costs for packing and selling oranges in 4/5 bushel Bruce boxes of
16 cents more than the average for all houses. The next larger group
(300,000 to 499,999 boxes) had average costs of five cents above average.
Houses in the two largest volume groups (500,000 boxes and over) each
had costs about the average or slightly lower (Table 10),

Table 10.--Variatlon in the Cost of Packing and Selling Florida Oranges
in 1-3/5 Bushel Bruce Boxes, by Volume Groups, 27 Interior Packing-
houses, 1965-66

Cost Per Number of Boxes Handled (1-3/5 Bu. Equivalent)
1-3/5 Bushel Under 300,000- 500,0OO- 800,000 All
300,000 499,999 799,999 and over Volumes
Number of Packinghouses
$1.10 $1.19 1 2 4 7
1.20 1.29 3 2 5
1.30 1.39 1 3 1 3 8
1.40 1.49 1 1 2
1.50 1.59 2 1 3
1.60 1.69 1 I 2


Total
Weighted
Average Cost


5 5 7 10 27


$1-24 $1.27


,,,


$1.43


$1.32 $1,26






-21-


For packing and selling grapefruit in 4/5 bushel fiberboard boxes,
houses in the smallest volume group had total costs of 20 cents above
the average cost, while those in the largest volume group had costs
slightly below the average (Table 11).


Table ll.--Variation in the Cost of Packing and Selling Florida Grapefruit
in 4/5 Bushel Fiberboard Boxes by Volume Groups, 27 Interior Packing-
houses, 1965-66

Cost Per Number of Boxes Handled (1-3/5 Bu. Equivalent)
1-3/5 Bushel Under 300,000- 500,000- 800,000 All
300,000 499,999 799,999 and over Volumes
Number of Packinghouses
$1.00 $1.09 2 2
1.10 1.19 1 3 1 5
1.20 1.29 1 3 4
1.30 1.39 2 2 2 2 8
1.40 1.49 2 1 1 4
1.50 1,59 1 11 3
1.60 1.69 -
1.70 1.79 1 1
Total 5 5 7 10 27

Weighted
Average Cost $1.48 $1.36 $1.30 $1.25 $1.28


The relationship between total volume of fruit through the house
and cost per box 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. 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.

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 14 seasons has been
generally upward (Table 12). Weighted average costs in 1962-63 rose to
unusual highs following the severe freeze, but declined somewhat in the
two seasons following as operations for more houses approached a nearer
normal output. However, in 1965-66 per unit costs turned upward again.




-22-


Table 12.--Average Total Cost Per 1-3/5 Bushel Equivalent for Packing and
Selling Florida Citrus Fruits for Fresh Consumption, 1952-53 Through
S1965-66a
--- 2 1 1 1 -! '. .. il II --: -' I
Type of Pack
Season 1-3/5 Bu. 8-lb.4/5 4/5 B. u.
Wirebound Ms 5Sb Fiberboard Half
Mesh Bag Mesh Bag B Bruce Box
B 8ox Box
Oranges
1952-53 $0.9530 $1.2067 $1.4469 --
1953-54 0.9355 1.2335 1.4597 $1.0088
1954-55 0.8863 1.2609 1.5005 1.0508
1955-56 0.9603 1.2322 1.4967 1.0939 -
1956-57 1.0068 1.2639 1.5278 .1551 $1.2996
1957-58 1.1164 1.3644 1.6464 1.2150 1.4069
1958-59 1.0990 1.4086 1.6682 1.2247 1.4430
1959-60 1.0782 1.3770 1.6425 1.2648 1.4189
1960-61 1.1247 1.4411 1.7011 1.3328 1.4518
1961-62 1.0726 1.3584 1.6339 1.3188 1.4330
1962-63 1.4006 1.7465 2.0385 1.4956 1.7311
1963-64 1.2504 1.6623 1,8234 1.4202 1.6431
1964-65 1.2093 1.4758 1.7285 1.4395 1.5877
1965-66 1.2676 1.6291 1.8574 1.4941 1.5832
Grapefruit
1952-53 $0.8543 $1.1231 $1.3233 --
1953-54 0.8375 1.1659 1.3666 $0.9058
1954-55 0.7984 1.1891 1.3964 0.9277
1955-56 0.8682 1.1724 1.4264 1,0000 -
1956-57 0.9285 1.2188 1.4730 1.0549 $1.1803
1957-58 1.0077 1.3089 1.5805 1.1057 1.2539
1958-59 0.9719 1.2972 1.6132 1.1305 1.2790
1959-60 0.9462 1.2668 1.5785 1.1804 1.2626
1960-61 1.0010 1.3301 1.6448 1.2042 1.3270
1961-62 0.9584 1.2863 1.5939 1.2819 1.2862
1962-63 1.1581 1.4978 1.8132 1.2857 1.4847
1963-64 1.0853 1.4227 1.7152 1.2857 1.3568
1964-65 1.0266 1.3320 1.6312 1.3713 1.3493
1965-66 1.1623 1.5256 1.7703 1.4120 1.4283
Tangerines
4/5 Bu. Bruce Flat 4/5 Bu. Half Bruce Box
1952-53 $1.4379
1953-54 1.4373
1954-55 1.4597
1955-56 1.4725
1956-57 1.5675
1957-58 1.6277
1958-59 1.6044 $1.5909
1959-60 1.7005 1.5534
1960-61 1.6754 1.5689
1961-62 1.6547 1.5253
1962-63 2.1290 1.8081
1963-64 1.7424 1.7793
1964-65 1.6626 1.6394
1965-66 1.8385 1.7224
aNumber of houses included in each of the years: 1952-53 63; 1953-
54 43; 1954-55 43; 1955-56 42; 1956-57 43; 1957-58 42; 1958-59 -
42; 1959-60 39; 1960-61 42; 1961-62 42; 1962-63 41; 1963-64 38;
1964-65 38; 1965-66 38,














Other Publications Available on Citrus Costs
Department of Agricultural Economics
Florida Agricultural Experiment Stations
Gainesville, Florida 32601

1. Costs of Processing. Warehousing and Selling Florida Citrus Products.
1965-66 Season. Agricultural Economics Mimeo Report 67-12,
March 1967.

2. Costs of Picking and Hauling Florida Citrus Fruits, 1965-66 Season.
Agricultural Economics Mimeo Report EC 67-10, March 1967.

3. Thirty-four Years of Citrus Production Costs and Returns in Florida,
1931-1965. Agricultural Extension Service Economic Series 67-1,
Jan. 1967.

4. Thirty-two Years of Orange Production Costs and Returns in Florida,
1931-1963. Agricultural Extension Service Economic Series 65-3,
March 1965.

5. Cost of Planting and Developing Florida Citrus Groves Through 10
Years of Age. Agricultural Extension Service Economic Series
65-1, February 1965.


















AHS:lkr April 1967
Exp. Sta., Agr. Econ. 1250