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 Introduction
 Method of prorating costs
 Costs of picking and hauling
 Capital investment
 Variation in costs between...
 Comparison of costs with 1950-...














Costs of picking and hauling Florida citrus fruits
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 Material Information
Title: Costs of picking and hauling Florida citrus fruits
Series Title: <1971-72-> Economics report
Portion of title: Cost of picking and hauling Florida citrus fruits
Physical Description: v. : ill. ; 28 cm.
Language: English
Creator: University of Florida -- Agricultural Experiment Station. -- Dept. of Agricultural Economics
University of Florida -- Food and Resource Economics Dept
Publisher: Dept. of Agricultural Economics, Florida Agricultural Experiment Stations, Institute of Food and Agricultural Sciences
Place of Publication: Gainesville Fla
Creation Date: 1951
Publication Date: -1974
Frequency: annual
regular
 Subjects
Subjects / Keywords: Citrus fruits -- Harvesting -- Costs -- Periodicals   ( lcsh )
Citrus fruits -- Transportation -- Costs -- Periodicals   ( lcsh )
Citrus fruit industry -- Costs -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
serial   ( sobekcm )
 Notes
Dates or Sequential Designation: -1972-73.
Issuing Body: Vols. for <1967-68-> issued by the Department of Agricultural Economics, Florida Agricultural Experiment Stations, Institute of Food and Agricultural Sciences; <1971-72-> by the Food and Resource Economics Department, Aggricultural Experiment Stations, Institute of Food and Agricultural Sciences, University of Florida.
General Note: Some issues have title: Cost of picking and hauling Florida citrus fruits.
General Note: Description based on: 1967-68 season.
Funding: Agricultural economics mimeo report.
 Record Information
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 03583885
lccn - 74641566
issn - 0093-6553
System ID: UF00027604:00006
 Related Items
Succeeded by: Estimated costs of picking and hauling Florida citrus fruits

Table of Contents
    Front Cover
        Front Cover
    Introduction
        Page 1
    Method of prorating costs
        Page 1
        Page 2
    Costs of picking and hauling
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
    Capital investment
        Page 9
    Variation in costs between firms
        Page 10
        Page 11
    Comparison of costs with 1950-51
        Page 12
        Page 13
Full Text




Agricultural Economics Series No. 53-2


COST S OF PICKING AND HAULING

FLORIDA CITRUS FRUITS,

1951-52 SEASON







by

A. H. Spurlock
Associate Agricultural Economist



Citrus Picking & Hauling Costs, 1951-52

Costs, Cents Per Box
0 10 20 30 40 50 60 70


Oranges -. : -..'. 41.9#


Grapefruit : 34.0"


Tangerines *' ; -- .' : ... ..t.- 66.6


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





Department of Agricultural Economics
Florida Agricultural Experiment Stations
Gainesville, Florida


'Picking Hauling Buying
"[<*, *:. I't
Picking Hauling Buying


I-


~ ~---


January, 1953


& Selling








COST OF PICKING AND HAULING CITRUS FRUITS, 1951-52 SEASON


Introduction

Costs of hauling citrus fruit from the tree to the plant, for the 1951-52 sea-

son are summarized for 26 operators by type of fruit. Services studied were buying

and selling, picking, which included delivery to the roadside, and hauling from the

grove to the processing or packing plant. Fifteen of the firms were primarily

citrus dealers, specializing in buying and selling, picking, and hauling; ten were

principally packers of fresh fruit, and one operated a cannery and concentration

plant. Some of the firms did not provide all types of services. Two of the citrus

dealers did not pick fruit in 1951-52, and one hauled only. Most of the dealers

contracted with other operators to pick or haul some of their volume.

The location of the citrus dealers was Polk County six, Orange three, Lake

two, Volusia two, Pasco and Hillsborough, one each. Three of the fresh fruit

packers were located in Orange County, two each in Lake and Seminole, one each in

Polk, Pasco, Pinellds and Brevard. Volume of fruit handled by the citrus dealers

ranged from 127,000 to more than 3,000,000 boxes.

Data were used only from firms with detailed records of actual costs. In

order to obtain uniformity, estimates were used for dividing certain items of cost

but total coots were not changed from the book record. Depreciation was estimated

in a few cases from the preceding years amounts.

Method of Prorating Costs

The following is a brief explanation of how costs were allocated to the

various services performed, and distributed by types of fruit. Costs were first

obtained in total from the records, such as total labor, repairs, telephone and

telegraph. If more detail was needed on total costs, they were further analyzed

from subsidiary records, or by estimation of the operator, or in a few cases by

standard ratios developed from records having the needed breakdown. Labor was sub-

divided into classes from payroll records and piece rates.








COST OF PICKING AND HAULING CITRUS FRUITS, 1951-52 SEASON


Introduction

Costs of hauling citrus fruit from the tree to the plant, for the 1951-52 sea-

son are summarized for 26 operators by type of fruit. Services studied were buying

and selling, picking, which included delivery to the roadside, and hauling from the

grove to the processing or packing plant. Fifteen of the firms were primarily

citrus dealers, specializing in buying and selling, picking, and hauling; ten were

principally packers of fresh fruit, and one operated a cannery and concentration

plant. Some of the firms did not provide all types of services. Two of the citrus

dealers did not pick fruit in 1951-52, and one hauled only. Most of the dealers

contracted with other operators to pick or haul some of their volume.

The location of the citrus dealers was Polk County six, Orange three, Lake

two, Volusia two, Pasco and Hillsborough, one each. Three of the fresh fruit

packers were located in Orange County, two each in Lake and Seminole, one each in

Polk, Pasco, Pinellds and Brevard. Volume of fruit handled by the citrus dealers

ranged from 127,000 to more than 3,000,000 boxes.

Data were used only from firms with detailed records of actual costs. In

order to obtain uniformity, estimates were used for dividing certain items of cost

but total coots were not changed from the book record. Depreciation was estimated

in a few cases from the preceding years amounts.

Method of Prorating Costs

The following is a brief explanation of how costs were allocated to the

various services performed, and distributed by types of fruit. Costs were first

obtained in total from the records, such as total labor, repairs, telephone and

telegraph. If more detail was needed on total costs, they were further analyzed

from subsidiary records, or by estimation of the operator, or in a few cases by

standard ratios developed from records having the needed breakdown. Labor was sub-

divided into classes from payroll records and piece rates.








-2-


Next, total costs were allocated to three departments or types of operations

(1) buying and selling, (2) picking with own crews, (3) hauling, own trucks. Some

costs fell naturally into these categories; the management was asked to estimate

the allocation of some others. Buying and selling costs, and hauling costs were

not separated by type of fruit. Contract picking and hauling costs were mixed,

both as to services performed and type of fruit included, and are not shown in

the summary.

Finally, costs allocated to picking were further subdivided by type of fruit

picked, into oranges, grapefruit and tangerines. Labor costs for picking were

distributed by type of fruit from an analysis of the picking payroll, or from

piece rates for all piece-rate workers. Other cost items were prorated to the

three types of fruit in inverse order of the estimated average number of boxes a

picker could pick in a day as estimated by the operators. This resulted in higher

per-box costs for tangerines and lower per-box costs for grapefruit than a

straight box-basis proration would have given.

The rate of picking the various types of fruit, as estimated by the firms,

averaged as follows:


: Estimated number :
Type of Fruit t of boxes picked : Relative picking rate
tper worker per days
Oranges 77 100
Grapefruit 112 145
Tangerines 35 46


An illustration of how the overhead allocations were made to the several

types of fruit is given on Page 3.

For a firm which picked 400,000 boxes of citrus, distributed by type of fruit

as shown above, 54.4 percent of the citrus picking costs (except labor) would have

been charged to orange picking instead of 50 percent. It will be noted that

tangerine picking would have borne 11.83 percent of the overhead costs instead .of

only the 5 percent which a straight box volume would have given.








-3-


Sa : ; A. :. Percent
Type of fruit:ctual no's Percentage :Relative picking: Adjusted :distribution
Sof boxes :Distribution: rate ume of : used in
picked boxes* : prorations
$ a s r a prorations
(1) (2) (3) (4) (5) (6)
Oranges 200,000 50.00 100 200,000 54.40
Grapefruit 180,000 45.00 145 124,138 33.77
Tangerines 20,000 5.00 46 43,478 11.83

Total 400,000 100.00 367,616 100.00
*Column 2 4 by column 4 x 100.

Costs of Picking and Hauling

The average costs per box for picking and hauling citrus fruit for 1951-52

from the grove to the cannery or packinghouse are shown in Tables 1 and 2 by

type of service performed. Since two distinct types of firms or operators were

obtained, the costs for each group are shown separately. Direct comparisons

between the two groups are thus not always valid.

Some overhead costs for fresh fruit packinghouses are also incomplete. Since

their groves are often charged with the direct costs of picking fruit, overhead

may all be charged to the packinghouse and selling operations. Items most often

not found in their picking and hauling costs were interest paid, management and

office salaries, supplies, legal and accounting, dues and donations. These costs

are usually small per box, but would add a little more to the amounts shown for

packinghouses if they had been obtained completely.

The items of cost given in Tables 1 and 2 are believed to be self explanatory,

and represent actual expense paid or accrued, except for depreciation and manage-

ment cost. Depreciation was taken as calculated by the firm's accountants, or in

a few cases estimated from previous periods. Some of the citrus dealers were

partnerships and individual proprietorships and had no paid management. In these

cases the owner was asked to estimate the value of his labor and management. If

only the paid management costs had been included, the per box costs for management








-4-


Table 1.--Average Costs Per Box of Picking and Hauling Citrus Fruit, 1951-52 Season

Citrus Dealers Specializing in Buying and Selling, Picking and Hauling


Pi4 tk-n


s S -<+ r
,Buying & Haulingg
SSelling :Oranges Grape-
fPruit


: All Operations:
S : Buying & Selling,
t: Picking & Hauling
Tange-:OrangessGrape-.Tange-
rianes


: : %fruit :rines
Number of Operators 13 14 13 13 5
I :
Average Volume boxes 809,185 553,265:337,832 39,209: 2,795

Cost Per Box Cents
Lab or
Field Foremen 1.63 1.22 2.16 1.63 1.22 2.16
Pickers 17.42 12.15 38.85 17.42 12.15 38.85
Loaders 2.67 2.20 2.89 2.67 2.20 2.89
Grove Drivers 1.20 .96 1.60 1.20 .96 1.60
Highway Drivers 2.17 2.17 2.17 2.17
Mechanics .02 .41 .14 .04 .25 .57 .47 .68
Other .07 .15 .14 .12 .29 .36 .34 .51

Total Labor .09 2.73 23.20 16,69 46.04 26.02 19.51 48.86

Other Costs:
S.S. & Work. Comp. Taxes .01 .06 .40 .36 .58 .47 .43 .65
Gasoline, Oil, Grease .07 1.71 .55 .39 1.00 2.33 2.17 2.78
Repairs .09 1.97 .80 .49 1.41 2.86 2.55 3.47
Licenses, Taxes, Bonds .02 .31 .12 .12 .03 .45 .45 .36
Depreciation .11 1.60 .64 .48 .66 2.35 2.19 2,37
Insurance .04 .34 .20 .14 .33 .58 .52 .71
Equipment Rental .02 .03 .01 .02 .02 .06 .07 .07
Interest Paid .05 .06 .09 .02 .05 .20 .13 .16
Salaries:
Management .79 .76 1.28 .93 2.04 2.83 2.48 3.59
Office .17 .25 .37 .24 .45 .79 .66 .87
Buyers .48 .48 .48 .48
Brokerage & Commission .64 .64 .64 .64
Supplies, Shop Expense .06 .29 .24 .07 .35 .30 .13
Office Supplies & Expense .02 .03 .05 .05 .04 .10 .10 .09
Telephone & Telegraph .20 .04 .05 .04 .03 .29 .28 .27
Lights, Water, Power .02 .03 .03 .02 .02 .08 .07 .07
Travel Expense .36 .02 .03 .03 .03 .41 .41 .41
Driver's Expense .06 .06 .06 .06
Miscellaneous Expense .19 .13 .22 .15 .26 .54 ,47 .58
Total Other Costs 3.28 7.46 5.13 3.72 7.02 15.87 14.46 17.76

Total Costs 3.37 10.19 28.33 20.41 53.06 41.89 33.97 66.62

*Less than .005 cents.


E


: f








-5-


Table 2.--Average Costs Per Box of Picking and Hauling Citrus Fruits, 1951-52
Season

Fresh Fruit Packinghouses and Processors

s : sTotal
-:-Picking- Total
hauling icing Picking & Hauling
Hauling----------- s ------
:Oranges'Grape- Tange- Oranges Grape- Tange-
Sfruit rines fruit rines

Number of Operators 9 10 10 10
s I *
Average Volume boxes 567,852 371,897'166,955 18,987:

Cost Per Box Cents
Labors
Field Foremen 2.03 1.34 4.80 2,03 1.34 4.80
Pickers 17.63 10.94 4,.67 17.63 10.94 43.67
Loaders 3.11 2.47 3.79 3.11 2.47 3.79
Grove Drivers 1.23 1.07 1.92 1.23 1.07 1.92
Highway Drivers 2.67 2.67 2.67 2.67
Mechanics .27 .06 ,02 .09 .33 .29 *36
Other .13 .08 .05 .13 .21 .18 .26
Total Labor 3.07 24.14 15.89 54.40 27.21 18.96 57.47

Other Costs:
S.S. & Work. Comp. Taxes .16 .39 .34 1.01 .55 .50 1.17
Gasoline, Oil, Grease 1.51 .35 .22 .54 1.86 1.73 2.05
Repairs 1.85 1.42 1.47 2.54 3.27 3.32 4.39
Licenses, Taxes, Bonds .20 .06 .03 .08 .26 .23 .28
Depreciation 1.21 .74 .34 1.41 1,95 1.55 2.62
Insurance .22 .16 .09 .32 .38 .31 .54
Equipment Rental .18 .18 .18 .18
Interest Paid .06 .06
Salaries:
Management .39 .52 .44 .94 .91 .83 1.33
Office .14 .17 .13 ,30 .31 .27 .44
Supplies, Shop Expense .02 .05 .03 .12 .07 .05 .14
Office Supplies & Expense .02 .12 .05 .22 .14 .07 .24
Telephone & Telegraph .04 .04 .03 .07 .08 ,07 .11
Lights, Water & Power .01 .02 .01 .02 .03 .02 .03
Travel Expense .01 .04 .03 .10 .05 .04 .11
Miscellaneous Expense .21 .31 .13 .46 .52 .34 .67
Total Other Costs 6.17 4.39 3.34 8.19 10.56 9.51 14.36

Total Costs 9.24 28.53 19.23 62.59 37.77 28.47 71.83

*Less than .005 cents.










for dealers would have been as follows:


Management
Paid Per Box
Buying and Selling .22 cents
Picking oranges .69 "
grapefruit .21 "
tangerines 2.02 "
Hauling .30 "

However, this procedure would have left some firms with no management expense.

All salaries shown for packinghouses were actually paid.

Buying and selling costs for citrus (Table 1) include the salaries, brokerage

and commission paid fruit buyers, car and travel expense, telephone and telegraph,

a portion of the management and office salaries and general overhead expenses.

When scales are maintained for buying fruit, the operator for these was included

as a buying expense.

The average cost of buying and selling citrus fruits for 1951-52 averaged

3.37 cents per box for 13 dealers. The average volume was 809,185 boxes. The

principal costs for providing this service was buyer's salaries, and commission,

management costs, travel expense, and telephone and telegraph.

Buying and selling unpacked fruit is not a normal function of fresh fruit

packinghouses and no cost for this is shown. However, some of the packers did have

fruit procurement costs.

Hauling costs for 13 citrus dealers with an average volume of 553,265 boxes

was 10.19 cents per box for 1951-52 (Table 1). Costs varied from 6.2 cents to

17.15 cents per box. Nine packinghouses operating their own trucks had an average

cost per box of 9.24 cents (Table 2). The variation was from 5.2 to 15,33 cents

per box. Volume for the packinghouses averaged 567,852 boxes.

The principal items of cost in hauling were driver's and mechanic's wages,

fuel, truck repairs, licenses, depreciation, insurance and management costs,

Hauling fruit is a less definite measure of service rendered than for example,







-7-

picking, where a fixed quantity is given. The average distance of haul is not

known. Some of the fruit is moved from groves to canneries at varying distances,

and some is moved from packinghouses (eliminations of lower grade fruit) to

canneries. Packers trucks mostly move fruit from the grove to the packinghouse,

with some secondary hauling from packinghouse to cannery,

The hauling costs calculated for dealers is principally from roadside to

cannery. Hauling in the grove to roadside is considered a picking cost. Many

packinghouse trucks load the field boxes in the grove onto the truck which trans-

ports them to the packinghouse, though sometimes they are transferred at roadside.

Hauling costs for both dealers and packers are an average of all types of

fruit. Dealers report that they can haul oranges and grapefruit at almost the

same cost per box, but that tangerines cost more because of the more careful

handling and lighter loading required. Based on estimates of operators, and a

few records the number of boxes hauled per load was:

Oranges 340
Grapefruit 374
Tangerines 246

Assuming that distances were the same for each type of fruit, and that the

types of fruit hauled were in the same ratio as that picked, then the average

cost of hauling the various types of fruit by dealers would be:

Oranges 10.26 cents per box
Grapefruit 9.32 "
Tangerines 14.18 "
Average 10.19 "

Picking costs as shown in Tables 1 and 2 include all amounts paid for direct

labor for picking and delivering to the roadside, grove truck expense and a por-

tion of the management and overhead expenses, Picking labor was allocated to the

types of fruit from payroll analyses and piece rates insofar as possible. Costs

for workers not paid on a piece rate were prorated on an adjusted volume basis as

illustrated on pages 2 and 3. The average labor cost per box of 17.42 cents for









orange pickers as shown in Table 1 represents a composite of all rates paid during

the season. Most operators picking cannery fruit reported paying 15 to 20 cents

per box for picking budded oranges, and 25 to 35 cents for seedlings. The cost of

picking budded and seedling oranges was not separated, bu;- the proportion of

seedlings was relatively unimportant.

Pickers' labor for grapefruit averaged 12.15 cents for dealers and 10.94 cents

for fresh fruit packers (Tables 1 and 2). The reason for this difference is not

known. Fresh fruit packers picked much larger quantities of grapefruit per firm

than dealers,--166,955 boxes versus 39,209. Picking rates reported by dealers

for grapefruit varied.from 1Q'to 15 cents, but were,mostly about 12 cents.per boxy

Pickers' labor for tangerines averaged considerably less for citrus dealers

than for packers, being 38.85 cents and 43.67 cents respectively. However,

dealers picked only a very small quantity of tangerines with their own crews.

Packers may have done more spot picking.

For dealers (Table 1) pickers' labor was 75 percent of all labor for oranges,

73 percent for grapefruit and 84 percent for tangerines. Total labor was the

largest item of cost for each type of fruit, being about 82 percent of the total

cost of picking oranges and grapefruit, and 87 percent of the total cost of pick-

ing tangerines.

Total picking costs for citrus dealers (Table 1) averaged 28.33 cents per

box for oranges, 20.41 cents for grapefruit and 53.06 cents for tangerines. Pick-

ing costs for fresh fruit packers which operated their own crews were 28.53 cents

per box for oranges, 19S23 cents for grapefruit, and 62.59 cents for tangerines

(Table 2). As previously pointed out the overhead costs for fresh fruit packing-

houses are less complete than for citrus dealers.

The last section of Table 1 shows the combined average costs for the complete

operation of moving fruit from the grove to the cannery which includes buying and

selling, picking, and hauling. The total handling costs for 1951-52 were 41.89







-9-


cents per box for oranges, 33.97 cents for grapefruit, and 66.62 cents for

tangerines. Only a very small quantity of tangerines was picked by the crews of

the firms included. More tangerines were handled, but the additional volume was

picked by contract with other operators.

Since fresh fruit packinghouses do not normally buy and sell unpacked fruit

their combined costs in Table 2 are only for picking and hauling and thus are not

comparable with those for the dealers. Some packers have fruit procurement costs,

but these were dropped; their selling costs apply to packed fruit principally.

Many citrus firms both dealers and packers contract with other operators

to pick or haul or both. This may be done to help them over a peak period when

their own crews and equipment are inadequate, or to do specialized picking. Rates

or amounts paid to contractors are not given because of the difficulty of obtain-

ing the exact service they were performing (picking or hauling) and the kind of

fruit. Some instances were noted where operators were able to contract picking

and hauling at rates somewhat lower than their own costs.

None of the costs in Tables 1 and 2 includes interest on invested capital.

Interest paid by the firms for the use of operating capital is included, though

only one-third of the firms had this expense.

Capital Investment

Capital invested in land, buildings, trucks, boxes and ladders, and other

equipment for 17 firms amounted to $55,243 per firm, or $94.90 per 1,000 boxes

handled (Table 3). The volume here was taken as the total number of boxes on

which any service was performed. Interest at 5 percent on this would amount to

0.47 cents per box. Picking and hauling are more intensive operations, and the

capital invested directly for these (trucks and trailers, boxes and ladders)

amounted to $104.63 per 1,000 boxes picked and hauled. Values given for capital

investment are depreciated values, except for land. Cost of the assets in use

would be considerably more.






-10-


Table 3.--Average Capital Invested in Citrus Picking and Hauling
Equipment, 17 Firms, 1951-52 Season

I ,Average Investment
Item -----
m Per Firmn/ Per 1,000 Boxes Handled-i
Land $ 4,130 $ 7.09
Buildings 2,147 3.69
Autos, Trucks, Trailers 38,689 66,46
Boxes, Ladders 6,148 10.56
Other Equipment 2,990 5,14
Office Furn. & Fixtures 1,139 1.96

Total $55,243 $94.90
i/ Depreciated value. Cost would be much larger except for land.
/ Volume on which any service was performed buying and selling,
picking, hauling, or any combination of services.


Revenue from sales of fruit and services was obtained from 11 citrus dealers,

together with fruit purchases and total operating costs. Fruit sales averaged

$0.949 per box, and purchase price on the tree averaged $0.626 per box, but it

could not be divided by type of fruit. Most of it, however, was oranges. Four

of the firms showed a net loss on all operations for 1951-52 and seven showed

profits. Three firms with net gains had very small gains in relation to their

total volume. The 11 firms had an average net gain of 1.33 percent of their

sales. It appears that most operators who made a profit made it from the opera-

tion of buying and selling fruit, This was hazardous, and resulted in some losses,

but also seems to have been the principal source of profit. On-tree buyers must

risk market declines and weather hazards before the fruit is picked, as well as

yield, in the case of bulk or grove buying.

Variation in Costs Between Firms

Total costs vary rather widely between firms for providing the same service.

These variations in total costs per box are shown in Tables 4, 5, and 6.

Not enough is known about the individual firms' operations to provide much

information about reasons for costs, being high or low. Aside from the factor of

management, (some operators are more frugal and efficient managers than others)






-11-


Table 4.--Frequency Distribution of Cost Per Box for 24 Firms
Picking Oranges and Grapefruit and 15 Firms Picking Tangerines,
1951-52 Season

Citrus Dealers and Packers
Total cost per box Oranges Grapefruit Tangerines

(Cents) Number of Firms
15 18.99 6
19 22.99 1 15
23 26.99 4 2
27 30.99 9 1
31 34.99 8
35 38.99 2

50 55.99 4
56 61.99 3
62 67.99 4
68 73.99 1
74 79.99 2
80 and over 1

Total number of firms 24 24 15

Average cost per box 28.42/ 19.51/ 61.93/




Table 5.--Frequency Distribution of Cost Per Box for Hauling
Citrus Fruit from Grove to Cannery, 24 Firms, 1951-52 Season

Citrus Dealers and Packers
Cost per box Number of Firms

(Cents) Number
4 5.99 2
6 7.99 6
8 9.99 2
10 11.99 7
12 13.99 2
14 15.99 4
16 17.99 1

Total number of firms 24

Average cost per box 9.81/







-12-


Table 6.--Frequency
Buying and Selling,


Total cost per box

(Cents)
24 29.99
30 35.99
36 41.99
42 47.99
48 53.99
54 59.99
60 65.99
66 71.99
72 77.99
78 83.99
84 and over


Total number of firms


Average cost per box


Distribution of the Total Cost Per Box for
Picking, and Hauling Citrus, 1951-52 Season

Citrus Dealers Only
Oranges Grapefruit Tangerines

Number of Firms
4
3
6 3
3 1
2 1
1


12


41.89X


12


33.97


4


66.62%


several firms appeared to have rather high capital investment in relation to the

total volume handled in 1951-52. This may make it possible to handle the peak

volume with owned equipment, but also means equipment is not fully utilized part

of the year, with high ownership costs. The book value of the total capital in

the business varied from $34.64 to $261.53 per thousand boxes handled.

Total costs per box did not seem to fluctuate according to size of firm.

Comparison of Costs With 1950-51

Total picking and hauling costs for 1951-52 were about the same as those

found in 1950-51 (Table 7). This despite the fact that picker's rates increased,-

although part of the increased rate was reflected in 1950-51 costs. Grapefruit

picking costs were higher in 1951-52 due principally to higher picker's rates.

Tangerine picking costs were slightly lower, but picking rates for them vary

rather widely.

The data for 1951-52 represent a much larger number of firms than were ob-

tained in the preceding season. With the wide variation that has been found be-







-13-


tween costs of individual firms, most of the differences between the two seasons

are apparently due to different combinations of firms.



Table 7.--Comparison of Total Costs for Picking & Hauling Citrus
Fruits, 1950-51 and 1951-52

Citrus Dealers Only
S 1950-51 : 1951-52
Operation :Number of: CostS-:Number of: Costs-
:Operators: Cents :Operators: Cents
: :Per Boxt :Per Box
Buying & Selling 7 3.84 13 3.37
Hauling 9 10.31 14 10.19
Picking Oranges 8 28.36 13 28033
Grapefruit 8 18.62 13 20.41
Tangerines 4 56.93 5 53.06
All Operations: Buying,
Selling, Picking & Hauling-
Oranges 42.51 41#89
Grapefruit 32.77 33197
Tangerines 71.08 66.62


AHStmm 1/23/53
Exp. Sta., Ag* Ec. 25