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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/UF00027603/00019
 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: 1967
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: UF00027603:00019
 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 of packing and selling, 1967-68
        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 sellinh
        Page 20
    Trends in packing and selling cost
        Page 21
        Page 22
    Available publications
        Page 23
Full Text

Agricultural Economics
Mimeo Report EC 69-6


February 1969


COSTS OF PACKING AND SELLING



FLORIDA FRESH CITRUS FRUITS



1967-68 SEASON


S UME: LIBRARY

MAY 191 S9

I.F.A.S. Univ. of Florida
1 1- --


by
A. H. SPURLOCK
Agricultural Economist


Department of Agricultural Economics
Florida Agricultural Experiment Stations
Institute of Food and Agricultural Sciences
Gainesville, Florida









COSTS OF PACKING AND SELLING FLORIDA
FRESH CITRUS FRUITS, 1967-68

by
A. H. Spurlock

CONTENTS Page

Introduction *. * *. ......... I

Costs of Packing and Selling, 1967-68 3

15
Oranges . . . . * 14
Grepefruit . * * 15
Tangerines ... * 16
Direct Grove-to-Cannery Fruit . . .. 16

Variations in Packing and Selling Costs Among Firms . 16

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 42 citrus packinghouses
for the citrus marketing season 1967-68. Twelve of these houses were located
in the Indian River section along the East Coast and 30 were in the interior
section.

The volume of fruit packed by the 42 packinghouses in 1967-68 amounted to
16,113,598 equivalent boxes of 1-3/5.bushels, or approximately 54 percent of
the certified fresh fruit shipments. 1/ The packed volume ranged from 25,000
to 1,112,000 boxes and averaged 383,657 boxes. Thus, the sample packinghouses
were considerably larger than the average of all citrus packinghouses in the
state. These latter averaged only 185,000 boxes for licensed and regulated
fresh fruit shippers who shipped fruit from 156 houses in 1967-68." 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 from three
houses, and direct grove-to-cannery fruit was not obtained from nine houses.


1Calculated from data in 1967-68 Season Annual Report, Division of Fruit
and Vegetable Inspection, Florida Department of Agriculture.

From data compiled by the Growers Administrative Committee from the
records of the Fruit and Vegetable Inspection Division, Florida Department
of Agriculture.










Table 1.--Distribution of Citrus Fruit Handled by Class of Fruit, 42
Packinghouses, 1967-68 Season 1/

Total Average Volume Percent of
Class of Fruitolume Per House Total Volume
1-3/5 bushel 1-3/5 bushel
Equivalents Equivalents

12 East Coast Packinghouses:
Packed fruit 3,571,008 297,584 54.0
Cannery fruit through house 1,762,447 146,871 27.0
Total through house 5,333,455 444,455 81.0

Direct to grove-to-cannery 1,259,126 104,927 19.0

Total 6,592,581 549,382 100.0


30 Other Packinghouses:
Packed fruit 12,542,590 418,086 43.3
Cannery fruit through house 7.565.262 252,175 26.1
Total through house 20,107,852 670,261 69.4

Direct grove-to-cannery 8,770,338 292,345 30.3
Packed fruit purchased 79.657 2.655 .3

Total 28,957,847 965,261 100.0


42 Packinghouses:
Packed fruit 16,113,598 383,657 45.3
Cannery fruit through house 9,327,709 222,088 26.3
Total through house 25,441,307 605,745 71.6

Direct grove-to-cannery 10,029,464 238,797 28.2
Packed fruit purchased 79,657 1,897 .2

Total 35.550,428 846,439 100.0


i I
-'Cannery fruit through house not obtained
to-cannery not obtained from nine houses.


from three houses and grove-





-3-


Packed fruit represented 45 percent of the total volume of all houses, but was
54 percent of the East Coast houses and 43 percent of the other houses. Fruit
going direct from grove-to-cannery was 28 percent of the total of all houses,
but <.nly 19 percent for the East Coast houses. The packed fruit of the East
Coast houses consisted of 73 percent grapefruit, 26 percent oranges, and 1
percent tangerines; the other houses had 32 percent grapefruit, 61 percent
oranges and 7 percent tangerines. The East Coast firms ran a larger percentage
of their total fruit through the house and, except for oranges, got a higher
percentage packout than the other group of packinghouses.

When adjusted for the packinghouses not supplying data on eliminations,
the packout averaged 61.8 percent of the fruit through the house for 39 houses,
with 67.0 percent for the East Coast group, and 60.4 percent for the other
houses. (Table 2).

Table 2.--Percent of Total Fruit Received Which was Packed for Shipment,
39 Packinghouses, 1967-68

East Coast Other All
Kind of Fruit Houses Houses Houses


Percent Percent Percent
Oranges 55*0 60.1 59.5
Grapefruit 72.2 59.9 64.5
Tangerines 84.9 66.8 67.5

All Fruit 67*0 60.4 61.8


Costs of Packing and Selling, 1967-68

The cost data made available by the fresh citrus fruit packinghouses
showed the itemized expenses of each for 1967-68 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 13 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
different 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 some of the
packinghouses, a proportion of the labor for receiving and dumping and for
grad:.ng 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 subsequent tables. Packing and selling costs
for those containers handled in small volumes and by few houses are not considered
representative as they may reflect unusual conditions and costs.

The 42 packinghouses prepared a total of 41 different packs of fruit plus a
mixed group of miscellaneous containers for each type of fruit. The number
of different containers was to have been reduced in 1967-68, but container
inventories were first used up, and the period of use was extended for some
packs. However, there was a continued trend toward concentration into fewer
containers. The 4/5 bushel fiberboard box was the most important container
used for oranges in 1967-68 from the standpoint of total volume. This was
followed by the 4/5 bushel half Bruce box and 5-1b. polyethylene and vexar
bags in master carton. These four containers were used for about 90 percent
of the packed oranges. The 4/5 bushel fiberboard box carried 51 percent of the
oranges. For grapefruit, the 4/5 bushel fiberboard box was the container used
for the largest volume (75 percent) with the 5-1b. polyethylene bag and the
5-lb. vexar bagboth in master cartonsnext in order. About 92 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.

Itemized costs of packing and selling oranges, grapefruit and tangerines
for the 1967-68 season are given in Tables 4, 5 and 6 for 42 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 the principal 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
fiberboard box which cost about 7% cents more than the one used by the
interior houses. The 4/5 bushel 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 Fruit Handled and Total Packing
and Selling Cost, by Type of Container, 42 Packinghouses, Florida, 1967-68.


Number
of
Fitrms


Total
Volume


Total Packing
Average & Selling Cost
Per Firm Per Box


Oranges:
4/5 bu. fiberboard box
4/5 bu. half Bruce box
5-lb. Poly. bag in master ctn.
5-1b. Vexar bag in master ctn.
Bulk in truck
4/5 bu. Bruce box-flat
4/5 bu. Bruce box-export
5-1b.mesh bag in master carton
8-lb.Poly. bag in master carton
5-1b.mesh bag
8-1b mesh bag
20-1b. mesh bag
Field box
1-3/5 bu. Bruce box
8-lb.mesh bag in master carton
4-1b.Poly.bag in master carton
8-1b.Vexar bag in master ctn.
4/5 bu.fiberboard carton
1-3/5 bu.fiberboard carton
2/5 bu. fiberboard carton
Miscellaneous containers
Total Packed Oranges


1-3/5 bushel equivalent


4,410,588
1,828,293
778,241
699,015
260,825
91,789
83,278
66,318
61,736
57,235
51,040
42,244
36,847
34,498
31,353
19,846
13,491
10,147
3,856
2,321
21.877


8,604,838


Grapefruit:
4/5 bu. fiberboard carton 41
5-lb.Poly. bag in master carton 27
5-1b.Vexar bag in master carton 26
Bulk in truck 19
5-1b.mesh bag in master carton 21
5-1b.mesh bag 16
4/5 bu.fiberboard ctn.-Export 5
4/5 bu. half Bruce box 23
Field box 9
8-lb. mesh bag 15
1-3/5 bu. Bruce box 16
4/5 bu. Bruce box-Export 4
8-lb. Vexar bag in master cartonl3
8-1b.Poly bag in master carton 15
1-3/5 bu.fiberboard carton 3
8-1b.mesh bag in master carton 9
Miscellaneous containers 16


4,923,060
732,570
370,678
140,884
77,459
53,545
50,864
43,738
41,840
36,359
34,144
16,649
12,517
11,583
9,716
4,877
5,556


Total Packe~d (Grannfruit 365609 168 30 Al648


Container


110,265
50,786
28,824
26,885
13,041
15,298
16,656
3,316
3,087
2,862
2,430
2,112
4,094
1,817
1,844
1,654
642
2,537
1,285
773
2,188


204,877


$1.5713
1.8256
2.0225
2.2684
.7948
1.9997
1.7078
2.6111
2.1237
2.0021
1.7697
1.6407
.7329
1.4915
2.3981
2.2128
2.1225
1.5644
1.1146
2.1073
1.7226


$1.7237


120,075
27,132
14,257
7,415
3,689
3,347
10,173
1,902
4,649
2,424
2,134
4,162
963
772
3,239
542
2.324


$1.5558
2.0700
2.2747
.8228
2.5924
1.8999
1.4077
1.6892
.5453
1.6960
1.4106
1.6895
2.0993
2.0216
.9347
2.2717
2.0317


_v


Total PnckFd rrnnifrlir:


19 h ~h~ ns


lh8 ?kn Slhh8k







-6 -


Table 3.Continued: Number of Firms, Volume of Citrus Fruit Handled and Total
Packing and Selling Cost, by Type of Container, 42 Packinghouses,Florida,1967-68.


Number
of
Wlrms


Container


Total
Vol^m1 eIT


Total Packing
Average .and Selling
Per Firm Cost Per Box


1-3/5 bu. equivalent


Tangerines;
4/5 bu. half Bruce box
4/5 bu. Bruce box-flat
Bulk in truck
4/5 bu.fiberboard carton
1-3/5 bu. Bruce box
Field box
Miscellaneous containers
Total Packed Tangerines


699,523
201,962
15,183
11,526
5,751
3,318
825


938,088


21,860
40,392
1,687
1,921
1,438
553
426


27,591


$2.0455
2.1999
.8327
1.7254
1.4938
.8277
2.6473


$2.0511


Misc. (Lime.Lemons.Kumquats):
Miscellaneous containers 3 4,633 3.651 $2.9240
Total Packed Fruit 42 16,113,598 383,657 $1.7125

Bulk Fruit through House to Cannery:
Oranges 38 5,548,296 209,874 $0.2522
Grapefruit 39 3,427,131 87,875 .2011
Tangerines 31 352,282 11.364 .3383
Total Bulk through House 39 9,327,709 93,277 $0.2366

Direct, Grove to Cannery 33 10,029,464 303,923 $0.0876

Packed Fruit Purchased 4 79,657 19,914 $0.1372

Total Volume All Fruit 42 35,550,428 846,439 $0.8635


'""" '""~


a


I I II


825


I












Table 4.--Weighted Average Costs of Packing and Selling Florida ORANGES, Per
1-3/5 Bushel Equivalent, by Type of Container, 42 Packinghouses, 1967-68.

5-1b. 5-lb. 5-lb. 8-1b.
Poly. Vexar Mesh Poly.
e of Cr 1-3/5 bu. Bag in Bag in Bag in Bag in
Type of ContaineBruce Master Master Master Master
Box Carton Carton Carton Carton


Nunmb.r 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 & expense
Total other direct
Indirect operating:
Insurance-fire & casualty
Taxes & licenses
Depreciation
Rent
Total indirect
Total Packing Expense
Administrative L/
Selling 2/
Other items 3/
Total Packing and Selling


19 27 26 20 20

1,817 28,824 26,885 3,316 3.087
Cost Per 1-3/5 Bushel

$0.4796 $0.7833 $1.0107 $1.3541 $0.8391
.0130 .0120 .0105 .0114 .0140
$0.4926 $0.7953 $1.0212 $1.3655 $0.8531

$0.0483 $0.0548 $0.0563 $0.0570 $0.0628
.0583 .0719 .0741 .0844 .0940
.1012 .1561 .1566 .1639 .1755
.1244 .1768 .1943 .1890 .1770
.0686 .0884 .1016 .1118 .1188
.0405 .0592 .0608 .0536 .0491
$0.4413 $0.6072 $0.6437 $0.6597 $0.6772

$0.0165 $0.0264 $0.0238 $0.0229 $0.0243
.0629 .0693 .0724 .0719 .0644'
.0179 .0234 .0247 .0186 .0168
$0.0973 $0.1191 $0.1209 $0.1134 $0.1055

$0.0121 $0.0129 $0.0116 $0.0151 $0.0151
.0115 .0137 .0131 .0125 .0157
.0522 .0633 .0676 .0575 .0531
.0005 .0142 .0065 .0002 .0018
$0.0763 $0.1041 $0.0988 $0.0853 $0.0857
$1.1075 $1.6257 $1.8846 $2.2239 $1.7215
.0887 .0889 .0785 .0841 .1049
.0588 .0775 .0758 .0674 .0701
.2365 .2304 .2295 .2357 .2272


sL.4QlS S2.0225 $2.2684~4 ilL11 $2.1237...


1/ Administrative expense includes management and office salaries, office expense,
auto and travel, interest, telephone and telegraph.
2/ Selling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges.
SOther items include citrus advertising tax, Federal-State inspection and test-
ing, Growers Administrative Committee and Florida Citrus Mutual assessments, de-
greening, precooling, color-add and wax.


1 4S 56..... -, ..






- 8-


STable 47--.Cont'd.--Weighted Average Costs of Packing and Selling Florida ORANGES,
Per i-3/5 Bushel Equivalent, by Type of Container,42 Packinghouses, 1967-68.


4/5 Bu. Half Bruce Box 4/5 Bu. Fiberboard Box
Type of Container
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. & equipment
Misc. supplies & expense
Total other direct

Indirect operating:
Insurance-fire & casualty
Taxes & licenses
Depreciation
Rent
Total indirect

Total Packing Expense
Administrative 1/
Selling 2/
Other items 3/
Total Packing and Selling


8 28 36 10 30 40

27,968 57.306 50,786 60.534 126.842 110.265
Cost Per 1-3/5 Bushel

$0.6830 $0.6032 $0.6130 $0.5168 $0.4410 $0.4514
.0328 .0249 .0258 .0133 .0130 .0131
$0.7158 $0.6281 $0.6388 $0.5301 $0.4540 $0.4645

$0.0572 $0.0538 $0.0542 $0.0484 $0.0486 $0.0486
.0748 .0926 .0904 .0591 .0726 .0707
.1806 .1321 .1381 .1857 .1236 .1321
.1647 .1083 .1152 .1512 .1156 .1204
.1054 .1018 .1023 .0915 .0931 .0929
.0653 .0561 .0572 .0651 .0516 .0535
$0.6480 $0.5447 $0.5574 $0.6010 $0.5051 $0.5182

$0.0184 $0.0189 $0.0188 $0.0210 $0.0194 $0.0196
.0493 .0655 .0635 .0719 ..0644 .0654
.0263 .0222 .0227 .0235 .0204 .0209
$0.0940 $0.1066 $0.1050 $0.1164 $0.1042 $0.1059


$0.0233 $0.0121 $0.0135 $0.0211 $0.0123 $0.0135
.0254 .0130 .0145 .0237 .0116 .0133
.1027 .0718 .0756 .0784 .0517 .0554
.0003 .0024 .0021 .0006 .0063 .0055
$0.1517 $0.0993 $0.1057 $0.1238 $0.0819 $0.0877

$1.6095 $1.3787 $1.4069 $1.3713 $1.1452 $1.1763
.1168 .0912 .0943 .0993 .0784 .0812
.1054 .0751 .0788 .0952 .0722 .0754
.2974 .2383 .2456 .2730 .2329 .2384
$2.1291 $1.7833 $1.8256 $1.8388 $1.5287 $1.5713


1/
- Administrative expense includes management and office salaries, office expense,
auto and travel, interest, telephone and telegraph.

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

2/Other items include Florida Citrus advertising tax, Federal-State inspection and
testing, Growers Administrative Committee and Florida Citrus Mutual assessments,
degreering, precooling, color-add and wax.








Table 4.--Cont'd.-Weighted Average Costs of Packing and Selling Florida ORANGES,
Per 1-3/5 Bushel Equivalent, by Type of-Container, 42 Packinghouses, 1967-68

20-lb. Bulk Bulk Through House to Cannery
Type of Container Mesh in East Other All
Bag Truck 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
Foreman, 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 & expense
Total other direct

Indirect operating:
Insurance, fire & cas.
Taxes and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrative 1/
Selling 2/
Other items 3/
Total packing & selling


20 20 11 27 38

2,112 13,041 68,169 177,716 146,005
Cost Per 1-3/5 Bushel

$0.5494 -- --
.0185 $0.0023 -- -- --
$0.5679 $0.0023 -- --


$0.0518 $0.0405 $0.0339 $0.0315 $0.0318
.0114 .0215 --.
.1453 .1017 .0611 .0460 .0480
.1327 .0677 -- -.
.1217 .0590 -- .0013 .0012
S .0487 .0337 .0110 .0.146 .0141
$0.5116 $0.3241 $0.1060 $0.0934 $0.0951


$0.0220 $0.0134 $0.0058 $0.0060 $0.0060
.0680 .0551 .0196 .0345 .0324
.0204 .0171 .0026 .0062 .0057
$0.1104 $0.0856 $0.0280 $0.0467 $0.0441


$0.0137 $0.0147 $0.0072 $0.0058 $0.0060
.0122 .0079 .0065 .0043 .0046
.0457 .0302 .0118 .0235 .0219
.0003 .0014 --. .0018 .0016
$0.0719 $0.0542 $0.0255 $0.0354 $0.0341
$1.2618 $0'4662" $0.1595 $0.1755 $0.1733
.0892 .0637 .0986 .0661 .0705
.0665 .0614 V- .0006 .0006
.2232 .2035 .0075 .0078 .0078
$1.6407 $0.7948 $0.2656 $0.2500 $0.2522


1/
Administrative expense includes management and office salaries, office
expense, auto and travel, interest, telephone and telegraph.
2/
Selling includes sales salaries, travel, telephone and telegraph, but
excludes brokerage, commission and auction charges.
3/
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.







-10-


Table 5.--Weighted Average Costs of Packing and Selling Florida GRAPEFRUIT,
Per 1-3/5 Bushel Equivalent, by Type of Container, 42 Packinghouses, 1967-68


5-lb. 5-lb. 5-1b. 8-1b. 8-1b.
1-3/5 Poly. Vexar Mesh Poly. Vexar
Type of Container Bu. Bag in Bag in Bag in Bag in Bag in
Bruce Master Master Master Master Master
Box Carton Carton Carton Carton Carton
Nwmhbr of Packinghouses 16 27 26 21 15 13


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


i 3 '7 1'19 1tL2S7 3.689 ,- -.--


Cost Per 1-3/5 Bushel


Materials:
Containers
Ocher materials
Total materials


$0.4898
.0126
0n Mn0A/


$0.8747
.0126
~ 8RR71


$1.0722
.0102
$1-0824


$1.3285
.0109
S1.3394


%,... ,n R-.-7 1-- 02 --


$0.8264 $0.8705
.0154 .0129
$0.8418 $0.8834


Labor:
Receive, truck, dump $0.0464
Cratemaking, labeling .0657
Foreman, Graders, others.0734
Wrap and pack .0980
Truck,check, load .0727
Payroll taxes,comp.ins. .0283
Total labor $0.3845


$0.0641
.0803
.1400
.1712
.0998
.0518
S0.6072


$0.0653
.0819
.1361
.1875
.1024
.0559
$0.6291


$0.0664 $0.0648 $0.0666
.0851 .0921 .0883
.1414 .1369 .1346
.1696 .1645 .1918
.1089 .1161 .1117
.0554 .0388 .0444
$0.6268 $0.6132 $0.6374


Other direct operating:
Power, lights, water
Repairs-bldgs, equip.
Misc. supplies & exp.
Total other direct


Indirect operating:
Insurance-fire &
Taxes & licenses
Depreciation
Rent
Total indirect


$0.0166
.0591
.0163
$0.0920


$0.0217
.0576
.0215
SO0.1008


$0.0214
.0587
.0231
$0.1032


$0.0250
.0595
.0239
$0.1084


$0.0228 $0.0212
.0567 .0513
.0171 .0185
$0.0966 $0.0910


cas. $0.0117 $0.0128 $0.0103 $0.0129 $0.0159 $0.0177
.0133 .0157 .0134 .0131 .0169 .0181
.0525 .0758 .0730 .0784 .0664 .0733
.0001 .0026 .0025 .0015 .0002 --
$0.0776 $0.1069 $0.0992 $0.1059 $0.0994 $0.1091


Total packing expense $1.0565 $1.7022 $1.9139 $2.1805 $1.6510 $1.7209
Administrative 1/ .1127 .1162 .0988 .1428 ,1259 .1333
Selling 2/ .0641 .0713 .0791 .0853 .0679 .0763
Other items 3/ .1773 .1803 .1829 .1838 .1768 .1688
Total packing & selling$1.4106 $2.0700 $2.2747 $25924 $2.0216 $2.0993
.1 1
S-1/Administrative expense includes management and office salaries, office
expense, auto and travel, interest, telephone and telegraph.

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

3/Other 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.


772


963


Jl


-


__





I


i w --


___


'- t -






-11-
Table5.--Cont'd. Weighted Average Costs of Packing and Selling Florida
GRAPEFRUIT, Per 1-3/5 Bushel Equivalent, by Type of Container, 42 Packing-
houses 1967-68
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
Foreman,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 1/
Selling 2/
Other items 31
Total packing & selling


1 22 23 1 12 29 41

65 1,985 1,902 204,693 85,060 120,075
Cost Per 1-3/5 Bushel

.$0.6895 $0.6058 $0.6059 $0.5153 $0.4416 $0.4734
.0226 .0235 .0235 .0149 .0121 .0184
$0.7121 $0.6293 $0.6294 $0.5302 $0.4537 $0.4918


$0.0335 $0.0512 $0.0512 $0.0519 $0. 499 $0.0509
.0669 .1154 .1154 .0679 .0773 .0726
.1350 .0958 .0958 .1216 .0943 .1079
.0890 .0982 .0982 .1128 .0963 .1046
.0717 .1036 .1035 .1057 .0987 .1022
.0655 .0539 .0539 .0540 .0419 .0480
$0.4616 $0.5181 $0.5180 $0.5139 $0.4584 $0.4862


$0.0103
.0685
.0193
$0.0981


$0.0130
.0216
.1009
.0024
Sn0 1717


$0.0172
.0530
.0223
$0.0925


$0.0166
.0171
.0571
.0012
S0_0920


$0.0171
.0531
.0223
$0.0925


$0.0166
.0172
.0571
.0012
S0-0921


$0.0131 $0.0174 $0.0153
.0630 .0505 .0567
.0209 .0189 .0199
S0.0970 $0.0868 $0.0919...


$0.0213
.0138
.0536
.0001
S0.0888


$0.0101 $0.0157
.0120 .0129
.0567 .0552
.0024 .0012
$0.0812 $0.0850


$1.4097 $1.3319 $1.3320 $1.2299 $1.0801 $1.1549
.1139 .0877 .0877 .0904 .1069 .0987
.1696 .0718 .0720 .1017 .0743 .0880
.2202 .1975 .1975 .2467 .1820 .2142
$1.9134 $1.6889 $1.6892 $1.6687 $1.4433 $15558


-Administrative expense includes management and office salaries, office
expense, auto and travel, interest, telephone and telegraph.
2/
Selling includes sales salaries, travel, telephone and telegraph, but
excludes brokerage, commission and auction charges.
3/
Other items include Florida Citrus advertising tax, Federal-State
inspection and testing, Growers Administrative Committee and Florida Citrus
Mutual assessments, degreening, precoolTng, color-add and wax.


---


.~~ ~ T ... -








-12-

Table 5.--Cont'd. Weighted Average Costs of Packing and Selling Florida
GRAPEFRUIT, Per 1-3/5 Bushel Equivalent, by Type of Container, 42 Packing-
houses 1967-68

Bulk Bulk Through House to Cannery
Type of Container in East Other All
Truck Coast Houses Houses
Number of nackinehouses 19 12 27 39


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

Materials:
Containers
Other materials
Total materials

Labor:
Receive, truck, dump
Cratemaking, labeling
Foreman, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, comp. ins,
Total labor
Other direct operating:
Power, lights, water
Repairs--bldgs., equipment
Misc. supplies & expense
Total other direct

Indirect operating:
Insurance-fire & casualty
Taxes and licenses
Depreciation
Rent
Total indirect

Total packing expense
Administrative 1/
Selling 2/
Other items 3/
Total packing and selling


......... f ....... D .......


1/Adminstratve expense includes
- Administrative expense includes


management and office salaries, office


expense, auto and travel, interest, telephone and telegraph.
2/
Selling includes sales salaries, travel, telephone,and telegraph, but
excludes brokerage, commission and auction charges.

3/
/ 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.


I -


7,415 83,832 89,672 87,875
Cost Per 1-3/5 Bushel

S-- --
$0.0003 -- --
$0.0003 -- -


$0.0510 $0.0356 $0.0224 $0.0263
.0032 -- --
.0923 .0391 .0251 .0292
.0602 *t -"
.0646 -- .0009 .0006
.0284 .0090 .0072 .0078
$0.2997 $0.0837 $0.0556 $0.0639

$0.0115 $0.0026 $0.0041 $0.0037
.0403 .0124 .0192 .0172
.0175 .0006 .0059 .0043
$0.0693 $0.0156 $0.0292 $0.0252


$0.0139 $0.0045 $0.0034 $0.0037
.0088 .0034 .0027 .0029
.0427 .0076 .0145 .0125
.0001 .0006 .0004
$0.0655 $0.0155 $0,0212 $0.0195

$0.4348 $0.1148 $0.1060 $0.1086
.1112 ,0830 .0779 .0794
.0849 -- .0077 .0055
.1919 .0075 .0077 .0076
$0.8228 $0.2053 $0.1993 $0.2011






- 13-


table 6.--Weighted Average Costs of Packing and Selling Florida TANGERINES and
GROVE TO CANNERY FRUIT, Per 1-3/5 Bushel Equivalent, 42 Packinghouses,1967-68.


Tangerines All Fruit
Type of Container 4/5 bu. 4/5 bu. Bulk thru. Direct,
Bruce Bruce House to Grove to
Flat Box Box 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. insurance
Total labor
Other Direct Operating:
Power, lights, water
Repairs-bldgs., equipment
Misc.supplies & expense
Total Other Direct
Indirect Operating:
Insurance- fire & casualty
Taxes and licenses
Depreciation
Rent
Total Indirect

Total Packing Expense
Administrative 1/
Selling 2/
Other Items -/


5 32 31 33

40,392 21,860 11,364 303,923
Cost Per 1-3/5 Bushel

$0.6866 $0.6020
.0201 .0316 -- -
$0.7067 $0.6336 -- --

$0.0982 $0.0868 $0.0434 --
.1128 .0997 -- --
.2170 .1981 .0714 $0.0002
.1622 .1660 -- --
.1098 .1160 .0017 .0027
.0720 .0823 .0236 .0003
$0.7720 $0.7489 $0.1401 $0.0032

$0.0330 $0.0308 $0.0096 $0.0002
.0720 .0979 .0516 .0055
.0318 .0272 .0098 .0002
$0.1368 $0.1559 $0.0710 $0.0059

$0.0152 $0.0204 $0.0117 $0.0002
.0149 .0181 .0075 .0002
.0945 .0920 .0304 .0006
.0029 .0018 .0008 --
$0.1275 $0.1323 $0.0504 $0.0010

$~ 7430. .$1.6707. .$0.2615 $0.0101.
.1726 .0906 .0676 .0653
.0901 .0724 .0015 .0047
.1942 .2118 .0077 .0075


Total Packing and ~pll~nQ


92 19QQ


5i9 Al';' ~AVg?


---- ------ --_ _---_- _____________ _.
- Administrative expense includes management and office salaries, office expense,
auto and travel, interest, telephone and telegraph.
2/
- Selling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges.
3/
- 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.


f0 0876









-14-


None of the containers shown in Tables 4, 5 and 6 were packed by all
of the 42 houses in the sample. Thus, the costs shown for any container
are averages of the group of firms packing that container. Since this
grouping of houses changes with each container, some of the differences in
costs between various packs are due to variations in the sample.

The average costs shown in each category are weighted averages of the
packinghouses included, i.e., the total money cost of each item for all
houses was divided by the total number of boxes packed. The use of weighted
averages in this summary tends to fix the cost of packing and selling 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 4/5 bushel Bruce box by 36 firms was $1.8256, or $0.0624
lower than the simple average of $1.8880. Twenty firms had total costs
higher than the weighted average and 16 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 except in three instances
where it was not possible to make a separation. Brokerage cost has been
omitted because of the difficulty of obtaining it consistently at all firms.
For five firms where it could be identified, brokerage averaged $0.0277 per
box for all boxes sold and was 47 percent of the sales departments' expense.
This was not the cost of selling by broker as the number of boxes sold by this
method was not known. Brokerage cost per box for the five firms varied from
$0.0106 to $0.1256 per box.

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 distribution of these groups
is shown in Table 7. Some of the items such as degreening, color-add and
waxing appear lower in cost per box than the cost of the services, but not
all fruit was so treated. Total expenditure for any item or service was
divided by the whole number of boxes packed,

ORANGE.--The average cost per box for packing and selling oranges in the
1-3/5 bushel Bruce box was $1.49. The two major expense items--materials
and labor--accounted for 63 percent of the total cost. Materials expense,
which included the wirebound crate, liner and label, averaged about $0.49
per box and labor averaged $0.44.

The cost per 1-3/5 bushel equivalent for oranges packed in the 4/5
bushel half Bruce box was $2.13 on the East Coast and $1.78 for the interior
houses; and in the 4/5 bushel fiberboard box was $1.84 on the East Coast,
and $1,53 for other packinghouses. Per-unit costs for containers and for
labor were higher in the East Coast group. Oranges packed in 5-1b. poly-
ethylene bags in master cartons averaged $2.02 to pack and sell, and 5-1b.
vexar bags in master cartons were $2.27.







-15-


Table 7.--Typical Distribution of Administrative and General Expense and
Other Items, 42 Packinghouses, 1967-68

Oranges Grapefruit Tangerines
4/5 Bu. 4/5 Bu. 4/5 Bu.
Fiberboard Fiberboard Half Bruce
Box Box Box
Cost Per 1-3/5 Bushel
Administrative & General Expense:
Management and office salaries $0.0520 $0.0557 $0.0579
Office supplies and expense .0040 .0053 .0040
Auto, travel and entertainment .0033 .0063 .0023
Operating interest .0030 .0085 .0066
Telephone and telegraph .0032 .0044 .0030
Miscellaneous administrative .0157 .0185 .0168
Total administrative and general .$0.0812 $0.0987 $0.0906
Other Items:
Degreening, color-add and wax $0.0539 $0.0277 $0.0433
Precooling .0119 .0225 .0117
Florida citrus advertising tax .1000 .0796 .0508
Federal-State inspection .0542 .0488 .0513
Florida Citrus Mutual .0075 .0074 .0075
Growers Administrative Committee .0040 .0042 .0041
Miscellaneous Other .0069 .0240 .0432
Total other items $0.2384 $0.2142 $0.2119

Packing in bags was more expensive for oranges than packing in boxes.
Both labor and materials, or containers were higher.

The average cost of packing and selling oranges loaded bulk-in-truck
wac $0.79 per 1-3/5 bushel equivalent. Bulk oranges through-house-to-cannery
(eliminations) averaged about $0.23 per box for the'*E.aettfCbast-':arid$0.25.:for the
intarios houses. There was considerable variation in practices among the houses
in-assigningcosts 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 was $2.07
for the 5-1b. polyethylene bag in master carton, 72 percent of which was
materials and labor costs. The 5-1b. vexar bag in master carton cost $2.27.
Packing and selling costs were $1.69 for the 4/5 bushel Bruce box all areas;
$1.67 for the 4/5 bushel fiberboard box, East Coast, and $1.44 for Interior
houses. Grapefruit sold bulk-in-truck cost $0.83 per box, and bulk grapefruit
through-house-to-cannery (eliminations) averaged $0.20 per box.








-16-


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 common use in 1967-68. The 1-3/5 bushel equivalent cost for
packing and selling tangerines in the 4/5 bushel half Bruce box was $2.05
and in the 4/5 bushel wirebound flat box, $2.20.

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 68 percent of the total cost of packing
and selling for the 4/5 Bruce and 72 percent for the 4/5 Bruce flat. Bulk
tangerines through-house-to-cannery averaged $0.34 per box for packing and
selling.

Direct grove-to-cannery fruit.--Packinghouse expenses for fruit going
direct-from the grove to the cannery averaged $0.0876 per box (Table 6).
This was principally administrative expense as direct packinghouse expense
was 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 1967-68. 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 th'f 6 in .eh"firm'sl overall costs.

The variation among firms in the total cost of packing and selling
citrus fruits per 1-3/5 bushel equivalent in the various containers is
shown in Tables 8 and 9. The costs are arrayed in 10 cent intervals for
several types of containers for each kind of fruit. The number of firms
at each cost level is indicated.

The complete range in total packing and selling costs for the more
important packs is given in Table 10. This range is further narrowed by
eliminating the upper and lower quartiles and showing the range for half
the firms in the center of the extremes.











Table 8.--Variations in the Cost Per 1-3/5 Bushel Equivalent of Packing and
Selling Florida ORANGES and TANGERINES, by Type of Container, 42 Packing-
houses, 1967-68 Season

ORANGES TANGERINES
8-1b. 5-1b. 5-1b. 5-lb. 4/5 Bu,
Poly. 4/5 Bu. 4/5 Bushel Poly. Mesh Vexar Half
Cost Per Bag in Half Carton Bag in Bag in Bag in Bruce
1-3/5 Bu. Master Bruce East Master Master Master Box
Equivalent Carton Box Coast Other Carton Carton Carton
Number of Packinghouses
Packing & Selling Cost

$1.20 $1,29 1 -
1.30 1.39 -- 4 "
1.40 1.49 1 6 -
1.50 1.59 2 4 "
1.60 1.69 2 5 3 7 1 -
1.70 1.79 7 1 1 3
1.80 1.89 3 3 1 5 3 1 3
1.90 1.99 3 5 5 1 3 1 3
2.00 2.09 5 5 4 3 4
2.10 2.19 2 6 1 1 2 5 6
2.20 2.29 2 5 3 9
2.30 2.3- 2 2 3 2 1 2
2.40 2.49 3 1 4 5 2
2.50 2. 5.59 3 5 2
2.60 & over -- 1 9 5 -

Total Number 20 36 10 30 27 20 26 32
Packing Cost Only
(Materials, Labor, Packinghouse Expenses)
$0.90 $0.99 2 -
1.00 1.09 6 -
1.10 1.19 3 7 -
1.20 1.29 1 4 4 7 1 -
1.30 1.39 1 5 2 4 1 1
1.40 1.49 1 8 1 3 1 5
1.50 1.59 6 7 3 1 3 2 1
1.60 1.69 4 5 6 2 7
1.70 1.79 2 4 3 4 5
1.80 1.89 2 5 1 5 9
1.90 1.99 2 3 1 2 4
2.00 2.09 1 4 6
2.10 2.19 1 1 3 -
2.20 2.29 1 5 2 -
2.30 & over 1 6 3 -
Total Number 20 36 10 30 27 20 26 32







-18-


Table 9.--Variations in the Cost Per 1-3/5 Bushel Equivalent of Packing and
Selling Florida GRAPEFRUIT, by Type'of Container, 42 Packinghouses,
1967-68 Season

8-lb. 5-lb. 5-1b. 5-1b.
Poly 4/5 Bu. 4/5 Bu. Carton Mesh Vexar Poly
Copt Per Bag in Half East Bag in Bag in Bag in
1-3/5 Bushel Master Bruce Coast Other Master Master Master
Equivalent Carton Box Carton Carton Carton
Number of Packinghouses
Packing and Selling Cost
$1.10 $1.19 1 -
1.20 1.29 6 -
1.30 1,39 4 7 -
1.40 1.49 1 4 4 -
1.50 1.59 1 4 6 1
1.60 1.69 5 4 2 2
1.70 1.79 3 1 2 2 3
1.80 1.89 4 6 2 4 6
1.90 1.99 1 1 5 1
2.00 2.09 2 -3 4
2.10 2.19 3 1 2 3
2,20 2.29 6 3 1
2.30 2.39 1 4 2 3
2.40 2.49 1 2 2 1
2.50 & over 9 5 2

Total Number 15 23 12 29 21 26 27

Packing Cost Only
(Materials, Labor, Packinghouse Expense)
$0.80 $ .89 3 -
90 .99 5 -
1.00 1.09 4 3 9 -
1.10 1.19 2 2 7 1
1.20 1.29 1 4 5 2 1
1.30 1.39 7 1 1 1
1.40 1.49 4 5 1 2 2 4
1,50 1.59 3 2 5
1.60 1.69 4 1 7 5
1.70 1.79 1 4 2
1.80 1.89 3 2 3
1.90 1.99 3 1 3
"2 00 2.09 1 4 3 -
2.10 & over 1 11 5 2

Total Number 15 23 12 29 21 26 27










-19-


Table lO.--Range in Total Packing and Selling Costs for
Citrus Packinghouses, 1967-68


Weighted(


Pack


No.
of
Firms


Average
Cost
Per
Box


All Firms


Selected Packs, 42


Range in Total Cost Per Box


Firms in 1/
Central Quartiles


ORANGES:
1-3/5 bu. Bruce box
4/5 bu. Bruce box
4/5 bu. fiberboard
box
5-lb. poly bag in
master carton
5-1b. vexar bag in
master carton
5-lb. mesh bag in
master carton
8-lb. poly bag in
master carton

GRAPEFRUIT:
1-3/5 bu. Bruce box
4/5 bu. Bruce box
4/5 bu. fiberboard
carton
5-1b. mesh bag in
master carton
5-1b. poly bag in
master carton
5-1b. vexar bag in
master carton
8-1b. poly bag in
master carton

TANGERINES:
4/5 bu. half Bruce
box


$1.49 $1.23 $2.45
1.83 1.45 2.40


1.57

2.02

2.27

2.61

2.12


1.41
1.69

1.56

2.59

2.07

2.27

2.02


2.05


1.24 2.19

1.65 2.82

1.85 2.93

2.30 3.26

1.67 2.49


1.08 2.31
1.35 1.91

1.19 2,00

2,21 3.13

1.60-- 2.62

1.80 2.82

1.58 2.45



1.71 2.50


$1.40 $1.63
1.71 2.07

1.48 1.85

1.99 2.32

2.12 2.57

2.48 2.75

1.93 2.20


1.27 1.45
1.52 1.82

1.34 1.65

2.27 2.66

1.83 2.18

1.96 2.47

1.84 2.11



1.95 2.25


/ Range in costs after eliminating the
and the highest 25 percent.


lowest 25 percent of the firms


-----








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

The data indicate some relationship between the seasonal volume of
fruit handled and the total packing and selling cost. Houses with the
larger volumes tended to have lower unit.costs, Proportionately more of
the larger houses were in the lower cost ranges. However, the dispersion
about the average was wide for all groups and there were houses with low
costs and those with high costs in each volume group.

Packinghouses in the smallest volume group (under 400,000 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 (400,000 to
599,999 boxes) had costs the same as the average. Houses in the second
largest volume group (600,000 to 899,999 boxes) had costs 11 cents above
the average of all houses. Costs for the largest-volume houses were 6
cents lower than average and 22 cents per box lower than the smallest volume
group. (Table 11)

Table ll.--Variation in the Cost of Packing and Selling Florida ORANGES, in
4/5 Bushel Bruce Boxes, by Volume Groups, 28 Interior Packinghouses, 1967-68

Cost Number of Boxes Handled (1-3/5 Bu. Equivalent)
Per
1-3/5 Under 400,000- 600,000- 900,000 All
Bushel 400,000 599,999 899,999 and over Volumes

Number of Packinghouses
$1.40 $1.49 1 1
1.50 1.59 1 1 2
1.60 1.69 1 1 3 5
1.70 1.79 4 3 7
1.80 1.89 1 1 2
1.90 1.99 3 1 4
2.00 2.09 3 1 1 5
2.10 & over 1 1 2

Total 6 8 5 9 28
Weighted
Average Cost $1.94 $1.78 $1.89 $1.72 $1.78


For packing and selling grapefruit in 4/5 bushel fiberboard boxes,
houses in the smallest volume group had total costs of 9 cents above the
average cost, while those in the largest volume group had costs five cents
per box below the average (Table 12).









-21-


Table 12.--Variation in the Cost of Packing and Selling Florida GRAPEFRUIT
in 4/5 Bushel Fiberboard Boxes by Volume Groups, 29 Interior Packinghouses,
1967-68

Cost Per Number of Boxes Handled (1-3/5 Bu. Equivalent)
1-3/5 Under 400,000 600,000 900,000 All
Bushel 400,000 599,999 899,999 and over Volumes
Number of Packinghouses
$1.10 $1.19 1 1
1.20 1.29 1 2 1 2 6
1.30 1,39 3 1 3 7
1.40 1.49 2 1 1 4
1.50 1.59 1 2 2 1 6
1.60 1.69 1 1 2
1.70 1.79 2 2
1.80 & over 1 1

Total 6 9 5 9 29
Weighted
Average Cost $1.53 $1.43 $1.49 $1.37 $1.44

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, invest-
ment in packinghouse assets, and extent of mechanization which affects 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 13), 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, and have increased each
season since,







-22-


Table 13.--Average Total Cost Per 1-3/5 Bushel Equivalent for Packing
Florida Citrus Fruits for Fresh Consumption, 1954-55 Through 1967-68.


Type
5-1b.
Mesh
Ran


of Pack
4/5 Bu.
Fiber-
board Box


and Selling


4/5 Bu.
Half
Bruce Box


1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62
1962-63
1963-64
1964-65
1965-66
19S6-67
1967-68

1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62
1962-63
1963-64
1964-65
1965-66
1966-67
1967-68


1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62
1962-63
1963-64
1964-65
1965-66
1966-67
1967-68


$0.8863
.9603
1.0068
1.1164
1.0990
1.0782
1.1247
1.0726
1.4006
1.2504
1.2093
1.2676
1.2749
1.4915

$0.7984
.8682
.9285
1.0077
.9719
.9462
1.0010
.9584
1.1581
1.0853
1.0266
1.1623
1.2089
1.4106


4/5 Bu. Bruce Flat


$1.4597
1.4725
1.5675
1.6277
1.6044
1.7005
1.6754
1.6547
2.1290
1.7424
1.6626
1.8385
1.8766
2.1999


$1.2609
1.2322
1.2639
1.3644
1.4086
1.3770
1.4411
1.3584
1.7465
1.6623
1.4758
1.6291
1.6437
1.7697

$1.1891
1.1724
1.2188
1.3089
1.2972
1.2668
1.3301
1.2863
1.4978
1.4227
1.3320
1.5256
1.5347
1.6960


$1.2996
1.4069
1.4430
1.4189
1.4518
1.4330
1.7311
1.6431
1.5877
1.5832
1.6692
1.8256


$1.5005
1.4967
1.5278
1.6464
1.6682
1.6425
1.7011
1.6339
2.0385
1.8234
1.7285
1.8574
1.8822
2.0021

$1.3964
1.4264
1.4730
1.5805
1.6132
1.5785
1.6448
1.5939
1.8132
1.7152
1.6312
1.7703
1.8189
1.8999


$1.5909
1.5534
1.5689
1.5253
1.8081
1.7793
1.6394
1.7224
1.8709
2.0455


Season


1-3/5 Bu.
Bruce
Box


8-lb.
Mesh
Ba2


Oranges
$1.0508
1.0939
1.1551
1.2150
1.2247
1.2648
1.3328
1.3188
1.4956
1.4202
1.4395
1.4941
1.4850
1.5713
Grapefruit
$0.9277
1.0000
1.0549
1.1057
1.1305
1.1804
1.2042
1.2819
1.2857
1.2857
1.3713
1.4120
1.4129
1.5558
Tangerines
4/5 Bu.


$1.1803
1.2539
1.2790
1.2626
1.3270
1.2862
1.4847
1.3568
1.3493
1.4283
1.4625
1.6892

Half Bruce Box


Number of houses included in each of the years: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; 1966-67,40; 1967-68,42.


.... rl ----rl


Box


'"'


~'- --~ -~--- ----- ~~














OTHER MIMEOGRAPHED PUBLICATIONS AVAILABLE ON CITRUS COSTS
Department of Agricultural Economics
Florida Agricultural Experiment Stations
Institute of Food & Agricultural Sciences
Gainesville, Florida 32601



1. COSTS OF PROCESSING, WAREHOUSING AND SELLING FLORIDA CITRUS PRODUCTS,
1966-67 SEASON. Agricultural Economics Mimeo Report 68-7.MARCH 1968.

2. COSTS OF PICKING AND HAULING FLORIDA CITRUS FRUITS, 1967-68 SEASON.
Agricultural Economics Mimeo Report EC 69-5. February 1969.

3. THIRTY-SIX YEARS OF CITRUS PRODUCTION COSTS AND RETURNS IN FLORIDA,
1931-1967. Agricultural Extension Service Economic Series 68-6.Nov.1968.

4. THIRTY-FIVE YEARS OF ORANGE PRODUCTION COSTS AND RETURNS IN FLORIDA,
1931-1966. Agricultural Extension Service Economic Series 67-6.NOV.1967.

5. COST OF PLANTING AND DEVELOPING FLORIDA CITRUS GROVES THROUGH 10 YEARS
OF AGE. Agricultural Extension Service Economic Series 65-1.Feb. 1965.



















AHS: cl/eh February 1969
Exp. Sta., Agr. Econ. 1200