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 Front Cover
 Table of Contents
 Introduction
 Costs of packing and selling,...
 Variations in packing and selling...
 Relationship of seasonal volume...
 Trends in packing and selling...
 Other mimeographed publications...














Costs of packing and selling Florida fresh citrus fruits
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Permanent Link: http://ufdc.ufl.edu/UF00027603/00020
 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: 1962
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: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 23368100
lccn - 91649936
System ID: UF00027603:00020
 Related Items
Succeeded by: Estimated costs of packing and selling fresh Florida citrus

Table of Contents
    Front Cover
        Front Cover
    Table of Contents
        Table of Contents
    Introduction
        Page 1
        Page 2
    Costs of packing and selling, 1962-63
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
    Variations in packing and selling cost among firms
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
    Relationship of seasonal volume to average cost of packing and selling
        Page 24
        Page 25
        Page 26
    Trends in packing and selling cost
        Page 27
        Page 28
    Other mimeographed publications available on citrus costs
        Page 29
Full Text


APRIL, 1964


COSTS


AGRICULTURAL ECONOMICS MIMEO REPORT EC 64-9


OF PACKING AND SELLING


FLORIDA FRESH CITRUS FRUITS,


1962-63 SEASON



by

A. H. Spurlock and H. G. Hamilton


Oranges:
1-3/5 bu.
Bruce box
4/5 bu.
Bruce box

4/5 bu.
carton
Grapefruit:
1-3/5 bu.
Bruce box
4/5 bu.
carton
Tangerines:
4/5 bu.
Bruce box


Index of cost (average all houses = 100)
60 70 80 90 100 110 120 130 140 1.

.* : ...1 *: : *


**: :* :*** : ** : *
:


Variation in Citrus Packing and Selling Costs, 1962-63


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


DEPARTMENT OF AGRICULTURAL ECONOMICS
FLORIDA AGRICULTURAL EXPERIMENT STATIONS
GAINESVILLE, FLORIDA


* I


* 4 4


*. :. :. ..... af: 4 4 4. 4* 44


: *


: ie *.:*...: *0* *


* *: .. : .* .* ** *


*: i ** ** I ** *


-e












CONTENTS


INTRODUCTION . . . . . ..

COSTS OF PACKING AND SELLING, 1962-63. . . .

Oranges . . . . . ..

Grapefruit . . . . . ...

Tangerines . . . . . .

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

VARIATIONS IN PACKING AND SELLING COST AMONG FIRMS . .

Oranges . . . . . . .

Grapefruit . . . . .. .

Tangerines . . . . . .

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

TRENDS IN PACKING AND SELLING COST . . . .










COSTS OF PACKING AND SELLING FLORIDA
FRESH CITRUS FRUITS, 1962-631



Introduction


This summary is based on the accounting records of 41 citrus pack-

inghouses for the citrus marketing season 1962-63. Eleven of these houses

were located in the Indian River section along the East Coast and 30 were in

the Interior and West Coast sections.

The volume of packed fruit handled by the 41 packinghouses in 1962-

63 amounted to an equivalent of 10,638,154 boxes of 1-3/5 bushels, or approx-
2
imately 47 percent of the total shipment of Florida fresh citrus.2 The volume

ranged from 9,500 to 1,133,000 packed boxes and averaged 259,500 boxes. Thus,

the sample packinghouses were considerably larger than the average of all

citrus packinghouses in the State. These latter averaged only 118,300 boxes

for licensed and registered fresh fruit shippers who shipped fruit from 190

houses in 1962-63. Because of the severe freeze in December 1962, the sample

packinghouses handled only 62 percent as much packed fruit as in the preceding

season. However, the reduction in volume was confined to the Interior and

West Coast houses, which packed only 46 percent as much as in the preceding

year. The East Coast houses packed 13 percent more fruit.


1This is a report of one phase of Southern Regional Project SM-22,
"The Economic Efficiency of Marketing Florida, Puerto Rico and Texas
Citrus Fruit."

2Calculated from data in 1962-63 Season Annual Report, Division
of Fruit and Vegetable Inspection, Winter Haven, Florida.











The distribution of fruit handled by type of outlet is shown in

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

from 3 houses, and direct grove to cannery fruit was not obtained from 11

houses. Packed fruit represented 45 percent of the total volume of all


TABLE 1.--Distribution of Citrus Fruit Handled by Type of Outlet, 41
Packinghouses, 1962-63 Season

Average Volume Percent of
Class of Fruit Total Volume Per House Total Volume
(1-3/5 bu. (1-3/5 bu.
boxes) boxes)
11 East Coast Packinghouses:
Packed fruit 4,720,077 429,098 70.9
Cannery fruit through house 1,068,501 97,136 16.0
Total through house 5,788,578 526,234 86.9

Direct from grove to cannery
and tree sales 871,260 79,205 13.1
Total 6,659,838 605,439 100.0


30 Other Packinghouses:
Packed fruit 5,918,077 197,269 34.7
Cannery fruit through house 2,610,987 ..87,033 15.3
Total through house 8,529,064 284,302 50.0
Direct from grove to cannery
and tree sales 8,530,561 284,352 49.9
Packed fruit purchased 12,926 431 .1
Total 17,072,551 569,085 100.0

41 Packinghouses:
Packed fruit 10,638,154 259,467 44.8
Cannery fruit through house 3,679,488 89,744 15.5
Total through house 14,317,642 349,211 60.3

Direct from grove to cannery
and tree sales 9,401,821 229,313 39.6
Packed fruit purchased 12,926 315 .1
Total 23,732,389 578,839 100.0


houses, and


1
Cannery fruit through house not obtained from three
grove-to-cannery not obtained from 11 houses,











houses, but was 71 percent of the East Coast houses, and 35 percent of

the other houses. Fruit going direct from grove to cannery was 40 per-

cent of the total of all houses but only 13 percent for the East Coast

houses. The packed fruit of the East Coast houses consisted of 75 per-

cent grapefruit, 25 percent oranges with less than 1 percent tangerines;

the other houses had 45 percent grapefruit, 45 percent oranges and 10 per-

cent tangerines. The East Coast firms averaged somewhat larger in total

volume of fruit handled, 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 packinghouses not supplying data on

eliminations, the packout averaged 74.3 percent of the fruit through

the house for the 38 houses; 81.5 percent for the East Coast group, and

69.4 percent for the other houses (Table 2).


TABLE 2.--Percent of Total Fruit Received Which was Packed for Shipment,
38 Packinghouses, 1962-63

d of F t East Coast Other All
Houses Houses Houses
(percent) (percent) (percent)

Oranges 78.0 64.4 68.0
Grapefruit 82.7 72.6 78.0
Tangerines 89.1 81.3 81.7

All Fruit 81.5 69.4 74.3



Costs of Packing and Selling, 1962-63

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

houses showed the itemized expenses of each for 1962-63 together with the

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

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











made by the firm's accountants for 26 packinghouses; for 15 houses

which had only total costs by items of expense, allocations were made
3
to the various containers with ratios developed for this purpose.

There was thus a possibility of several different methods of cost

allocation. However, three of the private auditing firms prepared

22 of the statements. Methods used for distributing materials cost,

general and administrative and selling expenses appeared to be rather

uniform among accountants, but labor and other direct operating costs

were allocated by various methods. In most of the packinghouses, a

proportion of the labor for receiving and dumping and for grading was

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

of the houses also charged a small amount of some other labor to elimi-

nated fruit. Any other direct operating expenses allocated to the

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

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

with administrative expense, the same as fruit going direct from grove

to cannery.

The volume of citrus fruit handled by type of container and

kind of fruit is shown in Table 3. The number of the sample houses

using each container is also shown with the total cost of packing and

selling. Itemized costs for the principal containers used are treated

in subsequent tables. Packing and selling costs for those containers

handled in small volumes and by few houses are not considered represen-

tative as they may reflect unusual conditions and costs.

The 41 houses prepared a total of 47 different packs of fruit

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


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











TABLE 3.--Number of Firms, Volume of Citru3 Fruit Handled and Total Packing
and Selling Cost, by Type of Container, 41 Packinghouses,
Florida, 1962-63.

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


Oranges:
4/5 bu. fiberboard box
4/5 bu. half Bruce box
1-3/5 bu. wirebound box
Bulk in truck
5-1b. poly. bag in master ctn.
5-lb. mesh bag
4/5 bu. Bruce box export
8-1b. mesh bag
4/5 bu. wirebound flat box
5-1b. mesh bag in master ctn.
Field box
1/4 box mesh bag
1-3/5 bu. Texas ctn.
8-1b. poly. bag in master ctn.
8-lb. mesh bag in master ctn.
5-1b. mesh bag in wood master cont.
8-1b. mesh bag in wood master cont.
1-3/5 bu. Bruce box export
1-3/5 bu. standard box (nailed)
4/5 bu. standard box
1/2 box mesh bag
Miscellaneous containers
Total Packed Oranges

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


1,331,049
944,120
723,659
219,202
170,047
144,051
61,166
59,934
44,318
30,178
21,178
19,118
11,055
5,250
4,729
2,113
1,599
1,100
1,037
270
81
10,915
3,' 6,169


4,073,501
1,039,910
350,270
217,645
178,443
109,151
72,220
44,182
18,760
16,697
15,275
9,708
8,744
7,565
6,739
2,718


34,130
26,226
25,845
9,964
8,097
6,002
10,194
2,606
7,386
1,775
3,530
797
2,211
750
525
528
533
1,100
207
135
81
3,638
95,154


104,449
38,515
10,946
11,455
9,392
4,961
3,439
2,599
4,690
8,348
3,055
809
514
687
1,348
906


$ 1.4956
1.7311
1.4006
.8481
1.9624
2.0385
1.5281
1.7465
1.9227
2.2512
.6176
1.5787
1.1103
1.9979
2.1817
2.6362
2.2900
1.3171
1.8745
2.3219
1.5332
1.3213



$ 1.2857
1.1581
1.4847
1.7747
.6880
1.8132
1.4978
2.2418
1.3633
.8146
1.4470
1.6944
1.3930
1.8915
.6079
2.1960










TABLE 3.--Number of Firms, Volume of Citrus Fruit Handled and Total Packing
and Selling Cost, by Type of Container, 41 Packinghouses,
Florida, 1962-63 (Cont.).

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


Grapefruit: (cont.)
8-1b. mesh bag in wood master cont.
1-3/5 bu. standard box (nailed)
1/2 box mesh bag
4/5 bu. standard box
Miscellaneous containers
Total Packed Grapefruit

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

Misc. (Limes, Lemons, Kumquats):
Miscellaneous containers
Total Packed Fruit

Bulk Fruit Through House to Cannery:
Oranges
Grapefruit
Tangerines
Total Bulk Through House

Direct, Grove to Cannery


Packed Fruit Purchased

Total Volume All Fruit


1,750
769
276
182
34,359
6,208,864


520,232
86,979
4,201
4,067
4,033
2,866
60
70
622,508


2 613
41 10,638,154


36 1,789,681
36 1,750,562
29 139,245
38 3,679,488

30 9,401,821


12,926


583
154
276
91
17,180
159,202


21,676
12,426
525
1,017
1,008
478
60
70
19,453


306
259,4 7


49,713
48,627
43802


313,394


$ 1.8792
1.6511
1.3005
2.0725
1.1872



$ 1.8081
2.1290
.9973
1.6708
.7831
1.8030
1.6235
2.6940



$ 2.1027



$ .2696
.1863
.4679


$ .0778


.1628


41 23,732,389


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

oranges in 1962-63 from the standpoint of total volume. This was followed

by the 4/5 bushel wirebound box and the 1-3/5 bushel wirebound or Bruce

box. These three containers were packed with about 79 percent of the oranges.







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

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

82 percent of the grapefruit was sold in these two packs. Almost all of the

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

was a difference in container usage between East Coast and other houses. The

4/5 bushel fiberboard box was the principal container for both oranges and grape-

fruit in the East Coast section and with the 4/5 bushel Bruce carried almost

all citrus packed.

Packing and selling costs for the principal containers used in 1962-

63 are compared with 1961-62 in Figure 1.

Itemized costs of packing and selling oranges, grapefruit and tangerines

for the 1962-63 season are given in Tables 4, 5 and 6 for 41 packinghouses.

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

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

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

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

purchased also are shown in Table 6. These operations are not separated by

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

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

from the other houses. The principal reason for separating the two sections is

that the East Coast houses generally used a heavier corrugated box which cost

about 8 cents more than the one used by other houses. Piece rates for packing

labor were also observed to average somewhat higher.

None of the containers shown were packed by all of the 41 houses

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

the group of firms packing that container. Since this grouping n' ..ojes

changes with each container, some of the differences in costs between various

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

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

and grapefruit (Tables 4 and 5). For oranges, 28 houses had an average con-
tainer cost of $0,3810, and for grapefruit, 27 houses, not quite identical












Cost per 1-3/5 bu.


$2.00



1.80



1.60



1.40



1.20



1.00



.80



.60



.40



.20



0


1962-63






;::-l 1961-62
: : :. .


.1 N&. I. 1. .ALA I -


0 w Z U' 0
44 W -- --
o ) in u n o0
6 can n uIT


Oranges


.00
u
Lfl


0
00


Grapefruit


u



Tange-
r lines


Figure 1.--Average Costs of Packing and Selling Florida Citrus
in Principal Containers, 1962-63 and 1961-62.


.0
Ij a
u
in u

^2


u

4U






'9



with the orange houses, had a cost of $0.3787, yet the container was the

same for each type of fruit. Other items of cost show similar small

variations. The average costs shown in each category are weighted aver-

ages 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 pack-

ing and selling somewhat lower than the simple average. This is true be-

cause the larger houses, which usually had somewhat lower costs, have

more effect on the average than smaller houses. For example, the simple

average cost of packing and selling oranges in the 1-3/5 bushel wire-

bound box by 28 firms was $1.4828 or 8.2 cents higher than the weighted

average of $1.4006 as shown in Table 4. Sixteen firms had total costs

higher than the weighted average and 12 had lower costs.

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

only the expense of the firm's own sales department or,.sales organization.

Brokerage commission and auction charges are not included. These costs

are usually deducted before entering the net proceeds of the sale on the

books and can be obtained, in most instances, only by analyzing the account

sales or invoices on each lot of fruit sold.

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

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

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

these groups is shown on page 17, Some of the items as degreening,

color-add and waxing are not enough to cover the full cost of the ser-

vice, but not all the fruit was so treated. Total expenditure for any

item or service was divided by the whole number of boxes packed.










TABLE 4.--Weighted Average Costs of Packing and Selling Florida ORANGES, per
1-3/5 Bushel Equivalent, by Type of Container, 41 Packinghouses, .,
1962-63.

1-3/5 bu. 5-1b. 8-lb. 5-1b. Mesh 8-1b. Mesh
Type of Container Wirebound Mesh Mesh Bag in Bag in
box Bag Bag Master Ctn. Master Ctn.


Number of Packinghouses

Average vo lu* i'packed
(1-3/5 bu. equiv.)


Materials:
Containers,.
Other materials
Total materials

Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payrolltaxes, 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 direct

Total packing expense:
Administrativea
Selling
Other itemsc
Total Packing & Selling


28 24 23 17 9


25,845 6,002 2,606 1,775 525
Costs per 1-3/5 bushel

$0.3810 $0.7554'$0.5531 $1.1235 $0.9942
.0187 .0177 .0192 .0134 .0123
$0.3997 :.,$7731 $0.5723 $1.1369 WiL.0065


$0.0406 $0.0554 $0.0511 $0.0435 $0.0454
.0454 .0116 .0082 .0441 .0491
.0989 .1637 .1375 .1382 .1326
.0850 .1500 .1295 .1588 .1398
.0587 .1166 .0948 .0882 .0781
.0324 .0442 .0390 .0409 .0436
$0.3610 $0.5415 $0.4601 $0.5137 $0.4886


$0.0224 $0.0349 $0.0300 $0.0228 $0.0261
.0794 .1014 .1038 .0996 .1220
.0164 .0287 .0249 .0165 .0224
$0.1185 $0.1650 $0- 1587 $0.1389 $0.1705


$0.0214 $0.0251 $0.0210 150.0201 $0.0195
.0175 .0230 .0242 .0162 .0175
.0553 .0787 .0721 .0538 .0537
.0004 .0009 .0010 .0004 .0008
$0.0946 $0.1277 $0.1183 $0.0905 $0.0915

$0.9738 $1.6073 $1.3094 $1.8800 $1.7571
.0838 .0987 .1015 .0621 .0876
.1187 .1140 .1225 .0854 .1087
.2243 .2185 .2131 .2237 .2283
$1.4006 $2.0385 $1.7465 $2.2512 $2.1817


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











TABLE 4.--Weighted Average Costs of Packing and Selling Florida ORANGES, per
1-3/5 Bushel Equivalent, by Type of Container, 41 Packinghouses, 1962-63, (Cont.)

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


Number of Packinghouses

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

Materials:
Containers
Other materials
Total materials

Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap & pack
Truck, check, load
Payroll taxes, comp. ins,
Total labor

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

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

Total packing expense
Administrativea
Selling
Other itemsc
Total Packing & Selling


8 28 36 10 29 39


19,389 28,179 26,226 91,293 14,418 34,129
Costs per 1-3/5 Bushel

$0.5942 $0.5674 $0.5718 $0.4759 $0.4068 $0.4542
.0407 .0309 .0325 .0091 .0111 .0097


$0.6349


$0.0417
.0550
.1216
.1307
.0523
,> .^ .n A


$0.5983


$0.0477
.0785
.1188
.1013
.0978
A) /


$0.6043


$0.0467
.0747
.1193
.1061
.0903
ft*. O


$0.4850


$0.0417
.0547
.1283
.1252
.0527
A\


$0.4179


$0.0512
.0619
.1278
.0996
.0978
A') A et


$0.4639


$0 .4 7
.0570
.1281
.1172
.0668
A')Q A


.09 .0U34 .u041 .O.30 .0JV'O V .0u36O
$0.4352 $0.4875 $0.4789 $0,4382 $0.4779 S0.45017


$0.0127 $0.0277 $0.0252 $0.0150 $0.0294 $0.0195
.0559 .0961 .0895 .0603 .0905 .0698
.0088 .0187 .0171 .0156 .0241 .0183
$0.0774 $0.1425 $0.1318 $0.0909 $0.1440 $0.1076


$0.0114 $0.0241 $0.0220 $0.0121 $0.0215 $0.0150
.0092 .0217 .0196 .0124 .0234 .0159
.0345 .0651 .0601 .0478 .0883 .0605
-- .0002 .0002 -- .0003 .0001
$0.0551 $0.1111 $0.1019 $0.0723 $0.1335 $0,0915

$1.2026 $1.3394 $1.3169 $1.0864 $1.1733 $1.1137
.0632 .0734 .0718 .0671 .0950 .0759
.0865 .1093 .1056 .0712 .1069 .0824
.2698 .2304 .2368 .2262 .2178 .2236
$1.6221 $1.7525 $1.7311 $1.4509 $1.5930 $1.4956


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










TABLE 4.--Weighted Average Costs of
1-3/5 Bushel Equivalent, by Type of


Packing and Selling Florida ORANGFS, per
Container, 41 Packinghouses, 1962-53 (Cont.)


5-lb. 8-lb. Bulk, thru house to cannery
Poly. Poly, Bulk in East Other All
Type of Container Bag in Bag in Truck Coast Houses Houses
Master Master
Ctn. Ctn.


Number of Packinghouses

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


Materials:
Containers
Other materials
Total materials
Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, comp. ins
Total labor

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

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

Total packing expense
Administrativea
Sellingb
Other items c
Total Packing and Selling


21 7 22 10 26 36


8,097 750 9,964 32,718 56,250 49,713
Costs per 1-3/5 Bushel


$0.6865 $0.6688 --
.0163 .0163 $0.0029
$0.7028 $0.6851 $0,0029 -- -- --


$0.0574 $0.0677 $0.0423 $0.0325 $0,0339 $0.0337
.0566 .0732 .0032 -- -
.1291 .1130 .1098 .0568 .0553 .0556
.1540 .1634 .0623 -- --
.0983 .1350 .0436 -- .0022 .0018
..0426 .0391 .0232 .0083 .0128 .0119
$0.5380 $0.5914 $0.2844 $0.0976 $0.1042 $0.1030


$0.0298 $0.0210 $0.0183 $0.0064 $0.0083 $0.0080
.1072 .1194 .0591 .0320 .0427 .0407
.0218 .0192 .0139 .0033 .0056 .0052
$0.1588 $0.1596 $0.0913 $0.0417 $0.0566 $0.0539


$0.0187 $0.0151 $0.0118 $0.0080 $0.0139 $0.0128
.0207 .0180 .0102 .0047 .0079 .0073
.0938 .0648 .0339 .0143 .0244 .0225
.0004 -- .0002 -- .0002 .0002
$0.1336 $0.0979 $0.0561 $0.0270 $0.0464 $0.0428

$1.5332 $1.5340 $0.4347 $0.1663 $0.2072 $0.1997
.0729 .0594 .0752 .0667 .0607 .0618
.1180 .1540 .0985 -- --
.2383 .2505 .2397 .0060 .0085 .0081
$1.9624 $1.9979 $0.8481 $0.2390 $0.2764 $0.2696


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










TABLE 5.--Weighted Average Costs of Packing and Selling Florida GRAPEFRUIT, per
1-3/5 Bushel Equivalent, by Type of Container, 41 Packinghouses, 1962-63.

1-3/5 5-lb. 8-lb. 5-lb. 8-lb.
bu. Poly. Poly. Mesh Mesh Bulk in
Type of Container Wirebound Bag in Bag in Bag Bag Truck
Box Master Master
Ct,. Ctn.
Number of Packinghouses 27 19 12 22 21 19


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

Materials:
Containers
Other materials
Total materials


Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, comp. ins
Total labor
Other direct operating:
Power, lights, water
Repairs-bldgs., equip.
Misc. supplies & exp.
Total other direct
Indirect operating:
Insurance-fire & cas.
Taxes & licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrativea
Selling
Other itemsc
Total Packing & Selling


38,515 11,455 809 4,961 3,439 9,392
Costs per 1-3/5 Bushel

C$.3787 $0.6962 $0.7054 $0.7733 $0.5752 $0.0011
.0172 .0188 .0201 .0181 .0185 .0012
$0.3959 $0.7150 $0.7255 $0.7914 $0.5937 $0.0023


$0.0366
.0458
.0632
.0681
.0570
.0248
$0.2955


$0.0544
.0545
.1051
.1409
.0877
.0396
$0.4822


$0.0494
.0548
.0982
.1199
.0828
.0360
$0.4411


$0.0534
.0203
.1056
.1265
.1292
.0382
$0.4732


$0.0437
.0112
.0933
.1032
.0892
.0320
$0.3726


$0.0379
.0008
.0772
.0543
.0355
.0182
$0.2239


$0.0166 $0.0297 $0.0270 $0.0349 $0.0250 $0.0098
.0604 .0994 .0995 .0883 .0869 .0445
.0125 .0178 .0118 .0200 .0182 .0086
$0.0895 $0.1469 $0.1383 $0.1432 *$0.1301 $0.0629

$0.0114 $0.0102 $0.0078 $0,0169 $0.0134 $0.0076
.0117 .0159 .0165 .0170 .01C, .0056
.0408 .0833 .0554 .0615 .057 .0218
.0004 .0007 .0005 .0002 .0006 .0001
$0.0643 $0.1101 $0.0802 $0,0956 $0.0882 $0.0351
$0.8452 $1.4542 $1.3851 $1.5034 $1.1846 $0.3242
.0658 .0754 .0632 .0675 .07. 0651
.1040 .0989 .1012 .0997 .0970 .0891
.1431 .1462 .1449 .1426 .1422 .2096
$1.1581 $1.7747 $1.6944 $1.8132 $1.4978 $0.6880


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










TABLE 5.--Weighted Average Costs of Packing and Selling Florida GRAPEFRUIT, per
1-3/5 Bushel Equivalent, by Type of Container, 41 Packinghouses, 1962-63 (Ccnt.)

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. equriv.)

Materials:
Containers
Other materials
Total materials
Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, comp. ins.
Total labor
Other direct operating:
Power, lights, water
Repairs-bldgs., equip.
Misc. supplies & exp.
Total other direct
Indirect operating:
Insurance-fire & cas.
Taxes & licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrative
Selling
Other itemsc
Total Packing & Selling


4 28 32 11 28 39

448 11,869 10,946 304,371 25,908 104,449
Costs per 1-3/5 Bushel

$0.5886 $0.5653 $0,5665 $0.4837 $0.4074 $0,4701
.0314 .0281 .0282 .0121 .0097 .0117
$0.6200 $0.5934 $0.5947 $0.4958 $0.4171 $0.4818


$0.0432
.0503
.0710
.0853
.0619
.0267
$0.3384


$0.0390
.0749
.0822
.0860
.0835
.0335
S0.3991


$0.0391
.0737
.0816
.0860
.0824
.0332
S0.3960


$0 .0378
.0510
.0821
.0894
.0670
.0285
$0.3558


$0.0432
.0604
.0826
.0824
.0901
.0328
$0.3915


$0.0388
.0526
.0822
.0882
.0711
.0292
$0.3621


$0.0080 $0.0193 $0.0187 $0.0083 $0.0210 $0,0106
.0364 .0718 .0700 .0494 .0582 .0509
.0068 .0149 .0145 .0103 .0128 .0108
$0.0512 $0.1060 $0.1032 $0,0680 $0.0920 $0.0723

$0.0074 $0.0157 $0.0153 $0.0114 $0.0130 $0.0117
.0058 .0144 .014C .0086 .0138 .0095
.0206 .0453 .0440 .0303 .0501 .0338
-- .0003 .0003 -- .0004 .0001
$0.0338 $0.0757 $0.073 $0.0G03 $0.0773 $0 0551
$1.0434 $1.1742 $1.1675 $0.9699 $0.9779 $0.9713
.0648 .0658 .0658 .0631 .0673 .0639
.0920 .1016 .1011 .0808 .0989 .0840
.2012 .1476 .1503 .1716 .1431 .1665
$1.4014 $1.4892 $1.4847 $1.2854 $1.2872 $1 2S57


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









TABLE 5.--Weighted Average Costs of
1-3/5 Bushel Equivalent, by Type of


Packing and Selling Florida GRAPEFRUIT, per
Container, 41 Packinghouses, 1962-63 (Cont.)


5-1b. 8-1b. Bulk, Through House to Cannery
Mesh Mesh East Other All
Type of Container Bag in Bag in Coast Houses Houses
Master Master
Ctn. Ctn.


Number of Packinghouses


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

Materials:
Containers
Other materials
Total materials
Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, comp. ins
Total labor
Other direct operating:
Power, lights, water
Repairs-bldgs., equip.
Misc. supplies & exp.
Total other direct
Indirect operating:
Insurance-fire & cas.
Taxes & licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrativea
Selling
Other items
Total Packing & Selling


17 11 11 25 36

2,599 688 66,986 405,483 48,627
Costs per 1-3/5 Bushel

$1.1833 $0.9818 -- -- --
.0172 .0110 -- -- --
$1.2005 $0.9928 -- -- --

$0.0509 $0.0354 $0.0313 $0.0273 $0.0290
.0547 .0446 -- -- --
.1085 .0867 .0300 .0317 .0310
.1453 .1079 -- -- --
.0907 .0785 -- .0016 .0009
.0365 .0338 .0054 .0070 .0063
$0.4866 $0.3869 $0.0667 $0.0676 $0.0672

$0.0259 $0.0230 $0.0024 $0.0050 $0.0039
.1181 .0811 .0196 .0288 .0250
.0173 .0157 .0014 .0047 .0033
$0.1613 $0.1198 $0.0234 $0.0385 $0.0322


$0.0157
.0157
.0578
.0003
$0.0895
$1.9379
.0567
.1054
.1418
$2.2418


$0.0151
.0130
.0396
.0019
$0.0696
$1.5691
.0767
.0935
.1522
$1.8915


$0.0041
.0032
.0081

$0.0154
$0.1055
.0639

.0074
$0.1768


$0.0071
.0046
.0162
.0001
$0.0280
$0.1341
.0502

.0089
$0.1932


$0.0058
.0040
.0128
.0CC1
$0.0227
$0.1221
.0559

.0083
$0.1863


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










TABLE 6.--Weighted Average Costs of Packing and Selling florida TANGERINE' GROVE-
TO-CANNERY FRUIT AND PACKED FRUIT PURCHASED, per -3/5 Bushel
Equivalent, 41 Packinghouses, 1962-6j

Tangerines 1___1 Tyes of Fruit
Type of Container 4/5 bu 4/5 bu, Bulk Bulk thri Direct Packed
Half Bruce Wirebound in House to Grove-to, Frutit
Box Flat Box tuck Cannery Cannery Purchased
Number of Packinghouses 24 7 8 29 30 4


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

Materials:
Containers
Other materials
Total materials
Labor:


91 676


$0-5637
.0334
$0. 071


Receive, truck, dump $0.0608
Cratemaking, labeling 0836
Foremen, graders, others 1464
Wrap & pack .1374
Truck, check, load .1044
Payroll, taxes, comp.,


192 426


4.i L802


- 525 4 339--


ctn nr 1-3/5


313.394


RBuhol


$0.6136
,0274
$0.6410


$0 0717
,0995
.1637
.1389
1160


$0,0532
.0021
,1702
,1326
.0452


$0.04'67

,0657

0031


$0,0015

.0025


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


.0474 .0611 .0329 .0219
$0.5800 80.6509 $0.4362 $0.1574


.0003 --
$0.0043 --


$0.0318 $0 0534 $0.0149 $0.0189 $0, 001 --
,1085 .1602 .0706 .0933 .0070 --
.0136 0277 0123 .0132 .0001 --
$0 1539 $0.2413 $0 0978 $0-1254 $0,0072 --

$0.0197 $0.0355 $0.0140 $0,0262 $0,0004
0235 .0402 ,0111 .0180 .0003
.0843 ':26 0397 .0713 .0014
.0001 0020 -- .0006 __


$0.1276 $0.2203 $0,0648 $0.1161 s. 0021 --
$1-4586 $1.7535 $0.5988 $0.3989 $0.0136
.0568 .1109 .0650 .0608 .0562 $0.0799
.1058 .1005 .0959 ..- .0805
.1869 '~1 .2376 .0082 .0080 ,0024


Total Packing & Selling _:. ,81


$2,1290 $0,9973 $0 4679


$0.0778 $0.1628


aAdministrative
pense, auto and travel,


expense includes management and office salaries, office ex-
interest, telephone and telegrap'


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

cOther items include Florida c .rus advertising tax, Federal-State inspection
and testing, Growers Administrative Cominittee and Florida Citrus Mutual assessments,
degreening, precooling, color-add and x.


3.232


1-15 Bshe


I-


---~-----~~---


--~-Y- I













Administrative & General Expense:

Management and office salaries
Office supplies and expense
Auto, travel and entertainment
Operating interest
Telephone and telegraph
Miscellaneous administrative
Total Administrative & General
Other Items:

Degreening, color-add and wax
Precooling
Advertising tax
Federal-State inspection
Florida Citrus Mutual
Growers Administrative Committee
Miscellaneous other
Total Other Items


Oranges Grapefruit Tangerines
1-3/5 bu. 1-3/5 bu. 4/5 bu.
Wirebound Wirebound Wirebound
Box Box (.'2 Bruce)
(Costs per 1-3/5 Bushel)
$0.0518 $0.0398 $0.0367
.0032 .0028 .0019
.002/ .0022 .0015
.0098 .0088 .0057
.0028 .0019 .0022
.0138 .0103 .0088
$0.0838 $0.0658 $( .568


$0.0650
.0095
iCCl
.0317
.0075
.0060
.0045
$0.2243


$0.0292
.0057
.0601
.0288
.0075
.0062
.0056
$0.1431


$0.0434
.0189
.0514
.0311
.0075
.0062
.0284
$0.1869


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

in the 1-3/5 bushel wirebound box was $1.40. The two major expense items,

materials and labor, accounted for 54 percent of the total cost. Materials

expense, which included the wirebound crate, liner and label, averaged $0.40

per box. The average labor expense was $0.36

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

4/5 bushel half Bruce box was $1.73, and in the 4/5 bushel fiberboard box

was $1.45 on the East Coast and $1.59 for other packinghouses. East Coast

houses used a heavier weight box which was somewhat more expensive; however,

they did not suffer the freeze damage and volume loss which raised costs in

other areas. Oranges packed in 8-pound mesh bags averaged $1.75 to pack and

sell, and 5-pound mesh bags cost $2.04. Both materials and labor costs were

more per 1-3/5 bushel equivalent for the 5-pound than for the 8-pound b.

The most expensive pack for oranges in common use in 1962-63 was

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










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

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

$2.25 per 1-3/5 bushel equivalent. The average cost of the 8-pound mesh

bag in master carton was $2.18, and for 5-pound polyethylene bags in

master cartons, $1.96.

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

truck vas $0.85 per 1-3/5 bushel equivalent. Bulk oranges through-house-

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

and $0.28 for other houses. There was considerable variation in practices

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

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

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

lent for packing and selling grapefruit was $1.16 for the 1-3/5 bushel

wirebound box, 60 percent of which was materials and labor costs. Packing

and selling costs were $1.48 for the 4/5 bushel half Bruce box all areas;

$1.29 for the 4/5 bushel fiberboard box, $1.50 for the 8-pound bag; $1.81

for the 5-pound mesh bag; $1.89 for the 8-pound bag in master carton; $2.24

for the 5-pound mesh bag in master carton; $1.69 for the 8-pound polyethylene

bag in master carton and $1.77 for the 5-pound polyethylene bag in master

carton. Grapefruit sold bulk in truck cost $0.69 per box and bulk grape-

fruit through-house-to-cannery (eliminations) averaged $0.18 per box for

East Coast houses and $0.19 for other houses.

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

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

wirebound box were the containers in most common use in 1962-63. The

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

bushel half Bruce box was $1.81 and in the 4/5 bushel wirebound flat box, $2,13.










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 65 percent of the total cost of packing

and selling for the half Bruce and 61 percent for the 4/5 bu. flat Bruce.

Bulk tangerines through-house-to-cannery averaged $0.47 per box for pack-

ing and selling.

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

inghouse expenses for fruit going direct from the grove to the cannery

averaged only $0.078 per box (Table 6). There were no materials or pack-

inghouse labor involved except that several firms set off some fruit in

boxes onto the packinghouse platform and had a small amount of receiving,

trucking labor and supervisory labor.

The cost of handling packed fruit purchased averaged $0.163

per box. The principal costs involved were administrative and selling.


Variations in Packing and Selling Cost Among Firms

There was a wider-than-normal variation in the cost of packing

and selling citrus in 1962-63. The freeze in December 1962 severely re-

duced the crop available for fresh packing. However, the damage was un-

evenly distributed throughout the citrus belt. Some packinghouses on the

West Coast and Interior sections packed only a very small percent of their

usual volume, with the result that total per-unit costs went to unusual

highs. The East Coast section was not so much affected in fresh volume

packing and most houses there, had a favorable cost level per unit.

Some were able to reduce costs below the preceding season, Thus, the

variations in packing and selling cost in 1962-63 reflect operations

ranging from disaster conditions to near-capacity output.










Oranges.--The variation among firms in the :ocal cost of packing

and selling oranges per 1-3/5 bushel equivalent in t:2 various containers

is shown in Table 7. These costs for oranges are arinyed in 5-cent inter-

vals for 6 types of containers. For the 28 firms packing oranges in 1-3/5

bushel wirebound boxes, the total packing and selling costs ranged from

$1.14 to $2.03 per box with 16 firms falling within the range of $1.30 to

$1.59. Thirty-six firms packing 4/5 bushel half Bruce boxes had costs

between $1.36 and $2.44 with 19 in the range of $1.50 to $1.84 per 1-3/5

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

$1.30 to $1.78 for 10 East Coast houses and from $1.23 to $2.45 for 29

other packinghouses. The East Coast section had approximately 8-cent

higher container costs. Costs for 12 of the 29 firms other than East

Coast were within the range of $1.35 to $1.64.

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

between $1.39 and $2.72 for 23 packinghouses of which 12 had costs between

$1.50 and $1.84. For 5-pound mesh bags, the total packing and selling

cost ranged from $1.54 to $3.25 for 24 firms of which 12 ranged from $1.90

to $2.24. Costs for 5-pound polyethylene bags in master cartons varied

from $1.78 to $3.29 for 21 firms with 11 in the range of $1.85 to $2.10.

The variations in packing costs only among the firms were similar

to the variations in packing and selling costs. The range for the 28

firms handling 1-3/5 bushel wirebound boxes of oranges was from $0.78 to

$1.47. The packing cost for 14 of these firms ranged from $0.90 to $1.14.

The cost of packing oranges in 4/5 bushel half Bruce boxes for 36 firms

ranged from $1.02 to $2.02 and for 19 of these firms between $1.20 and

$1.44. Ten East Coast houses packing 4/5 bushel fiberboard boxes had

costs varying from $0.99 to $1.38 per box with 29 other houses ranging






21



TABLE 7.--Variations in the Cost per 1-3/5 Bushel Equivalent of Pack-
ing and Selling Florida ORANGES, by Type of Container, 41 Packinghouses,
1962-63 Seasons.

4/5 bu. Fiber- 5-1b. Poly.
Cost per 1-3/5 bu. 4/5 bu. board Box 8-1b. 5-1b. Bag in
1-3/5 Bushel Wirebound Half Bruce East Other Mesh Mesh Master
Equivalent Box Box Coast Bag Bag Carton
- - - Number of Packinghouses - -
PACKING AND SELLING
Under $1.20 4
$1.20 1.24 2 -- -- 1 --
1.25 1.29 -- -- 1 1
1.30 1.34 4 -- 1 3 -- --
1.35 1.39 2 1 1 2 1 -- --
1.40 1.44 3 1 1 2 -- -- --
1.45 1.49 3 3 1 1 1 -- --
1.50 1.54 2 3 2 3 3 1
1.55 1.59 2 3 1 3 2 -- --
1.60 1.64 -- 3 1 1 -- --
1.65 1.69 1 -- -- 1 1 1 --
1.70 1.74 -- 5 -- 1 4 --
1.75 1.79 -- 3 1 1 2 1 2
1.80 1.84 1 2 -- -- 1 2 2
1.85 1.89 -- -- -- 2 1 1 3
1.90 1.94 2 4 -- -- 1 2 2
1.95 1.99 1 -- 2 -- 6 1
2.00 2.04 1 2 -- -- -- -- 3
2.05 and over -- 6 -- 5 6 10 8
Total Number 28 36 10 29 23 24 21
PACKING ONLY
Under $0.80 1
$0.80 .84 2
.85 .89 4 -- -- 1 --
.90 .94 5 -- -- 2
.95 .99 3 -- 2 4
1.00 1.04 1 1 2 2 1 -- -
1.05 1.09 4 1 -- 2 -- --
1.10 1.14 1 2 1 3 -- -- --
1.15 1.19 1 3 1 3 5 -- --
1.20 1.24 2 5 2 2 3 1 --
1.25 1.29 -- 6 -- -- 2
1.30 1.34 -- 3 1 1 3 1 -
1.35 1.39 1 4 1 -- 2 -- --
1.40 1.44 2 1 -- 3 -- 1 3
1.45 1.49 1 -- -- 2 -- 3 2
1.50 1.54 -- 3 -- -- 1 4 3
1.55 1.59 -- -- -- -- -- 4 3
1.60 1.64 -- 3 -- 1 1 1 2
1.65 1.69 -- 1 -- -- -- -- 2
1.70 1.74 -- -- -- -- -- 1
1.75 and over -- 3 -- 3 5 6 5
Total Number 28 36 10 29 2' 24 21









from $0.86 to $1.89. Costs for 13 of the other houses were between $1.00

and $1.34. Twenty-three firms packing the 8-pound mesh bag had packing

costs from $1.02 to $2.24 with 10 firms with costs from $1.20 to $1.39.

The spread in packing cost for 5-pound mesh bags for 24 firms

was between $1.21 and $2.76 with 12 firms included within the cost in-

terval of $1.50 to $1.74. For the 21 firms packing oranges in 5-pound

polyethylene bags in master cartons, the packing cost ranged from $1.43

$2.81 and 11 of these firms had costs between $1.50 and $1.74 per box.

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

among the different firms was not as great as in oranges. The 27 firms

using 1-3/5 bushel wirebound boxes had costs which varied between $0.98

and $1.72 for packing and selling each box as shown by data in Table 8.

Of these firms, 13 had costs between $1.10 and $1.35. For the 4/5 bushel

half Bruce box, 32 firms had total packing and selling costs ranging be-

tween $1.24 and $2.23. Of these, 17 had costs from $1.35 to $1.69.

Eleven East Coast firms using the 4/5 bushel fiberboard box had costs

ranging from $1.02 to $1.50 per box, and 28 other houses varied from $1.06

to $2.05. Thirteen of the other houses were between $1.20 and $1.59. For

the 8-pound mesh bag, 21 houses had costs ranging from $1.28 to $2.38 per

box with 10 of these between $1.40 and $1.84.

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

bags were from $1.26 to $2.90 for 22 firms with 10 firms between $1.70

and $2.10. For 5-pound polyethylene bags in master cartons, 19 firms

ranged from $1.58 to $2.95 with 13 firms falling between $1.65 and $1.89

per 1-3/5 bushel equivalent.

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

for 27 firms varied from $0.71 to $1.25, Fifteen of these firms r:.naed






23



TABLE 8.--Variation in the Cost per 1-3/5 Bushel Equivalent of Packing and
Selling Florida GRAPEFRUIT, by Type of Container, 41 Packing-
houses, 1962-63 Season


Cost per
1-3/5 Bushel
Ecuival!nt


Under $1.00
$1.00 $1.04
1.05 1.09
1.10 1.14
1.15 1.19
1.20 1.24
1.25 1.29
1.30 1.34
1.35 1.39
1.40 1.44
1.45 1.49
1.50 1.54
1.55 1.59
1.60 1.64
1.65 1.69
1.70 1.74
1.75 1.79
1.80 1.84
1.85 1.89
1.90 and over
Total Number


1-3/5 b
Wirebou
Box



2


4/5 bu. Fiber-
u. 4/5 bu. board Box 8-1b. 5-1b.
nd Half Bruce East Other Mesh Mesh
Box Coast Bag Bag
- - Number of Packinghouses
PACKING AND SELLING
--. -- -- -- .-


5-lb. Poly.
Bag in
Master
Carton


-^~-

1
2
1
1
1
2

1
1









11


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


PACKING ONLY

2 --
3 --
3 --
3 --
4 --
2 4
2 --
5
1 2
2 2
1 1
1 1
1 --
-- 1

3 5
28 21


3
1
2
3
3
7
-9


---


I'


AA


--






24



between $0.75 and $0.94. Thirty-two packinghouses had packing costs rang-

ing from $0.99 to $1.76 for the 4/5 bushel half Bruce box with 19 of these

firms ranging from $1.05 to $1.39. The 11 East Coast houses packing the

4/5 bushel fiberboard box were within the cost range of $0.72 and $1.19

and 28 other houses varied from $0.77 to $1.58. Fifteen of the other

houses had packing costs between $0.85 and $1.19. Packing costs for

the 8-pound mesh bag varied from $1.00 to $1.99 per box for 21 firms

with 11 between $1.10 and $1.34.

The cost of packing in 5-pound mesh bags for 22 firms ranged

from $1.01 to $2.51 per box with 13 houses between $1.35 and $1.59.

Variation in cost for the 19 firms packing grapefruit in 5-pound

polyethylene bags in master cartons ranged from $1.28 to 2.52. Costs

for 8 houses fell within the range of $1.40 to $1.54.

Tangerines.--Packing and selling costs for tangerines per

1-3/5 bushel equivalent ranged from $1.64 to $2.84 for the 4/5 bushel

half Bruce box for 24 firms; and for 4/5 bushel wirebound flat boxes

from $1.94 to $2.56 for 7 firms (Table 9).

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

equivalent varied from $1.30 to $2.36 for 4/5 bushel half Bruce boxes;

and from $1.41 to $2.23 for the 4/5 bushel wirebound flat box.


Relationship of Seasonal Volume to Average
Cost of Packing and Selling

The data indicate some relationship between the seasonal volume

of fruit handled and the total packing and selling cost. Houses with

the larger volumes tended to have lower unit costs, however, because

of the reduced fresh volume some houses experienced this *:eason as a






25



TABLE 9.--Variation in the Cost per 1-3/5 Bushel Box Equivalent of Packing
and Selling Florida TANGERINES, by Type of Container, 41 Packing-
houses, 1962-63.

Cost per 4/5 Bushel 4/5 Bushel
1-3/5 Bushel Half Bruce Wirebound
Equivalent Box Flat Box
- Number of Packinghouses -

PACKING AND SELLING
$1.60 $1.64 2
1.65 1.69 2
1.70 1.74 1 --
1.75 1.79 2
1.80 1.84 4
1.85 1.89 2
1.90 1.94 -- 1
1.95 1.99 1
2.00 2.04 2 1
2.05 2.09 1 2
2.10 2.14
2.15 and over 7 3
Total Number 24 7

PACKING ONLY
$1.30 $1.34 5
1.35 1.39 1
1.40 1.44 1 1
1.45 1.49 2
1.50 1.54 2
1.55 1.59 2
1.60 1.64 1 2
1.65 1.69 2
1.70 1.74
1.75 1.79
1.80 1.84 3 1
1.85 and over 5 3
Total Number 24 7


result of the freeze, there is probably no relation between actual pack-

inghouse volume this year and house capacity. These two measures should

be constant for most reliable comparison of costs and volume.

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

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

of 15 cents more than the average for all houses. Those in the largest

volume group (400,000 and over) had costs 6 cents lower than the average.











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

houses in the smallest volume group had total costs of only 29 cents

above the average cost, while those in the largest volume group had

costs about 6 cents less than the average. The range in total costs

this season was extreme on the high side, but with little change from

the preceding season in the lowest costs.

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

costs were not closely related to volume by groups. The other direct

operating costs and the indirect or fixed costs did, in general, de-

crease by size groups.

There were packinghouses that had high as well as low .:e>s in

each volume group. This variation within groups is shown in Tables 10

and 11 for 1-3/5 bushel wirebound boxes and indicates that the larger

volume groups contained more houses with low cents than the smaller

seasonal volume groups.


TABLE 10.--Variation in the Cost of Packing an.
4/5 Bushel Wirebound Boxes, by Volume Groups,

Number of Boxes Handled
Cost per 1-3/5 Bushel Under 200,000
200.000 399.999


Selling Florida ORANGES in
41 Packinghouses, 1962-63.

(1-3/5 bu. Equivalent
400,000 All
and Over Volumes


- - Number of Packinghouses - -
Under -$1.50 -- 2 3 5
$1.50 1.59 1 -- 5 6
1.60 1.69 -- 2 1 3
1.70 1.79 3 3 2 8
1.80 1.89 -- -- 2 2
1.90 1.99 2 1 1 4
2.00 and over 6 2 -- 8
Total 12 1" 14 36

Wtd. Average Cost $1.88 $1.81 $1.67 $1.73


--










TABLE 11.--Variation in the Cost of Packing and Selling Florida GRAPEFRUIT
4/5 Bushel Wirebound Boxes by Volume Groups, 41 Packinghouses, 1962-63.

Number of Boxes Handled (1-3/5 bu. Equivalent)
Cost per 1-3/5 Bushel Under 200,000 400,000 All
200,000 399,999 and Over Volume
- Number of Packinghouses- - -
Under -$1.50 2 5 8 15
$1.50 1.59 1 2 3 6
1.60 1.69 2 -- -- 2
1.70 1.79 1 1 1 3
1.80 1.89 1 -- -- 1
1.90 1.99 1 1 -- 2
2.00 and over 3 -- 3
Total 11 9 12 32

Wtd. Average Cost $1.77 $1.53 $1.42 $1.48


The relationship between total volume an. cost is imperfect because

important factors affecting costs may be unequally distributed in the volume

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

cent of house capacity used, investment in packinghouse assets and physical

arrangement of house and machinery which affect labor costs in particular.

The number of different lots, frequency of change of lots, number of diff-

erent 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 12 seasons has been

upward (Table 12). Because of the effects of the freeze in December 1962

in reducing volume of fruit, the 1962-63 costs rose to abnormal levels. The

change did not affect the averages of all packinghouses or all containers alike.

The East Coast houses were least affected and the packing and selling costs for

the 4/5 bu. fiberboard box of grapefruit, which was used in largest volume by











East Coast houses, was hardly changed at all. Costs for 1962-63 were

0 to 31 percent higher than 1961-62 for most pacb-, averaging about 12

percent for all packed fruit.


TABLE 12.--Average Total Cost per 1-3/5 Bushel Equivalent for Packing and
Selling Florida Citrus Fruits for Fresh Consumption, 1951-52
Through 1962-63a

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


$0.9111
0.9530
0.9355
0.8863
0.9603
1,0068
1.1164
1.0990
1.0782
1.1247
1.0726
1.4006


$0.8487
0.8543
0.8375
0.7984
0.8682
0.9285
1.0077
0.9719
0.9462
1.0010
0.9584
1.1581


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


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


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


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

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


$1.3444
1.4469
1.4597
1.5C "5
1.4967
1.5278
1.6464
1.6682
1.6425
1.7011
1.6339
2.0385


GRAPEFRUIT
$1.2670
1.3233
1.3666
1.3964
1.4264
1.4730
1.51M5
1.6132
1.5785
1.6448
1.5939
1.8132
TANGERINES


$1.0088
1.0508
1.0939
1.1551
1.2150
1.2247
1.2648
1.3328
1.3188
1.4956




$0.9058
0.9277
1.0000
1.0549
1.1057
1.1305
1.1804
1.2042
1.2819
1.2857
4/5


4/5I


$1.2996
1.4069
1.4430
1.4189
1.4518
1.4330
1.7311


$1.1803
1.2539
1.2790
1.2626
1.3270
1.2862
1.4847
bu. Half Bruce Box


$1.5909
1.5534
1,5689
1.5253
1.,8081


aNumber of houses included in each of the years;
1951-52 67 1933-54 43 1955-35 /.2 1": ... 4- i:5c-60 39 1961-62 42
1952-53 63 1954-55 43 1955-57 43 1958-59 42 1960-61 42 1962-63 41


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


- I --















OTHER MIMEOGRAPHED PUBLICATIONS AVAILABLE ON CITRUS COSTS

DEPARTMENT OF AGRICULTURAL ECONOMICS

FLORIDA ARICULTURAL E :iIM'NT STATIONS

GAINESVILLE, FLORIDA


1. Costs of Picking and Hauling Florida Citrus Fruits, 1962-63 Season.

Agricultural Economics Mimeo Report EC64-8. March, 1963.

2. Costs of Processing, Warehousing and Selling Florida Citrus Products,
1962-63 Season.

Agricultural Economics Mimeo Report EC64-10. April, 1964.

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

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

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

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

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

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










AHS:ghs 4/64
Experiment Stations; Ag. Ec. 1250