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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: 1953
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: UF00027604:00008
 Related Items
Succeeded by: Estimated costs of picking and hauling Florida citrus fruits

Table of Contents
    Front Cover
        Front Cover
    Introduction
        Page 1
    Costs of picking and hauling, 1953-54
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
    Capital investment
        Page 10
        Page 11
    Variation in cost between firms
        Page 12
    Comparison of 1953-54 costs with previous seasons
        Page 12
        Page 13
        Page 14
        Page 15
Full Text

Agricultural Economics Mimeo Report No. 55-5


COSTS OF PICKING AND HAULING


FLORIDA CITRUS FRUITS


1953-54 SEASON



by
A. H. Spurlock
Agricultural Economist


Citrus Picking
Costs,
0 10 20


Oranges

Grapefruit

Tangerines


and Hauling Costs,
Cents Per Box
30 40 50


1952-53


60 70


41.2

32.9

73.2

Picking1 ,./ Buying and
Picking Hauling Selling


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



Department of Agricultural Economics
Florida Agricultural Experiment Stations
Gainesville, Florida


January, 1955








COSTS OF PICKING AND HAULING CITRUS FRUITS, 1953-54 SEASON


Introduction


Costs of handling citrus fruit from the tree to the packing or processing plant for

the 1953-54 season are summarized for 37 firms by type of fruit. Services studied were:

(1) buying and selling, (2) picking, which included delivery to the roadside, and

(3) hauling from the grove to the plant. Thirteen of the firms furnishing data were citrus

dealers specializing in the procurement, sale and delivery of fruit to the processing

plant, and 24 were principally packers of fresh fruit or processors. Several of the firms

did not perform all types of service in 1953-54. Two of the citrus dealers did not buy

and sell fruit, but picked and hauled for others on a contract basis, and three did not

pick fruit. Most of the dealers also contracted with other operators to pick or haul

some of their volume. Contracting with other operators to pick or haul part or all their

volume also was common among the fresh fruit packers and processors.

The location of all the firms studied was Polk County, 15; Orange County, 10;

Lake County, 4; Pasco County, 2; and one each in Brevard, Hillsborough, Pinellas,

Seminole, Highlands, and Indian River Counties.

Total volume of fruit handled varied widely between firms from 85,000 boxes to

more than 5 million boxes. The specialized citrus dealers included were larger than the

average for their type of operation. The total volume of the smallest citrus dealer was

almost 200,000 boxes.

Costs of Picking and Hauling, 1953-54

The various costs of operation as obtained from the records of the firms were not

usually allocated to the services performed or to the type of fruit. Using estimates of








COSTS OF PICKING AND HAULING CITRUS FRUITS, 1953-54 SEASON


Introduction


Costs of handling citrus fruit from the tree to the packing or processing plant for

the 1953-54 season are summarized for 37 firms by type of fruit. Services studied were:

(1) buying and selling, (2) picking, which included delivery to the roadside, and

(3) hauling from the grove to the plant. Thirteen of the firms furnishing data were citrus

dealers specializing in the procurement, sale and delivery of fruit to the processing

plant, and 24 were principally packers of fresh fruit or processors. Several of the firms

did not perform all types of service in 1953-54. Two of the citrus dealers did not buy

and sell fruit, but picked and hauled for others on a contract basis, and three did not

pick fruit. Most of the dealers also contracted with other operators to pick or haul

some of their volume. Contracting with other operators to pick or haul part or all their

volume also was common among the fresh fruit packers and processors.

The location of all the firms studied was Polk County, 15; Orange County, 10;

Lake County, 4; Pasco County, 2; and one each in Brevard, Hillsborough, Pinellas,

Seminole, Highlands, and Indian River Counties.

Total volume of fruit handled varied widely between firms from 85,000 boxes to

more than 5 million boxes. The specialized citrus dealers included were larger than the

average for their type of operation. The total volume of the smallest citrus dealer was

almost 200,000 boxes.

Costs of Picking and Hauling, 1953-54

The various costs of operation as obtained from the records of the firms were not

usually allocated to the services performed or to the type of fruit. Using estimates of






-2-

the operator, payroll analyses, or sometimes standard ratios, an attempt was made to

divide the total costs of operation into the following functions:

(1) Buying and Selling. For specialized citrus dealers this is one of the services

performed in procuring and delivering fruit to the processing plant. Many different

types of arrangements are made with the grove owner as to the price of the fruit and

method of measurement. Dealers buy and sell fruit which they may pick and haul with

their own crews, or they may contract with other similar operators to pick or haul. The

costs of buying and selling fruit include salaries for management, office, and buyers;

brokerage or commission; telephone and telegraph, and auto and travel expense.

(2) Picking. This is the operation of getting the fruit off the tree and into the

highway truck. As here summarized it represents the cost per box for the operator's own

crews, but not for contract crews. The principal costs of performing this service are

labor; fuel, repairs, licenses, insurance and depreciation for the grove trucks, crew

trucks, loading machines, and other picking equipment; and management and office

salaries.

(3) Hauling. This refers to hauling fruit from the roadside to the processor or

fresh fruit packinghouse. It does not include hauling in the grove to the roadside. It

also includes hauling of packinghouse eliminations to the cannery, this being counted as

a separate haul. This is usually a somewhat less expensive haul according to the

operators than hauling from grove to plant. Most operators state that hauling costs are

about equal for oranges and grapefruit, but higher for tangerines because of the lighter

loading required.

The average costs per box for picking and hauling citrus fruit for the 1953-54

season from the grove to the processor or packinghouse are shown in Tables I and 2, by







Table 1.-- Average Costs Per Box for Picking and Hauling Citrus Fruit, 1953-54 Season.
Citrus Dealers Specializing in Buying and Selling, Picking and Hauling.

S I : Picking All Operations:
:Buying : :n: Buying and Selling
Item : and : Hauling: : Picking and Hauling
:Selling : :Oranges: Grape-:Tange-:OrangesGrape-:Tange-
: : fruit :rines : :fruit : rines
Number of Operators : 10 :11 : 10 : 10 : 3
Average Volume-Boxes 1,206,203:886, 702: 556, 653: 67,463: 4,295:
Cost per Box cents
Labor:
Field foremen 1.77 1.35 2.51 1.77 1.35 2.51
Pickers 18.68 11.54 44.60 18.68 11.54 44.60
Loaders 2.34 2.12 2.98 2.34 2.12 2.98
Grove drivers 1.22 .89 2.16 1.22 .89 2.16
Highway drivers 2.05 2.05 2.05 2.05
Mechanics .01 .46 .11 .04 .29 .58 .51 .76
Other labor .06 .10 .26 .11 .42 .27 .16
Total .07 2.61 24.38 16.05 52.54 27.06 18.73 55.22
Workmen's comp. ins. .01 .06 .49 .34 .89 .56 .41 .96
Payroll taxes .02 .13 .07 .45 .15 .09 .47
Total labor .08 2.69 25.00 16.46 53.88 27.77 19.23 56.65

Other Costs:
Gasoline, oil, grease .06 1.67 .58 .4? .55 2.31 2.22 2.28
Repairs .05 1.98 .97 .65 .85 3.00 2.68 2.88
Licenses and taxes .01 .24 .08 .05 .15 .33 .30 .40
Depreciation .11 1.21 .67 .32 .97 1.99 1.64 2.29
Insurance .02 .31 .11 .07 .19 .44 .40 .52
Interest .07 .07 .10 .10 .09 .24 .24 .23
Salaries-Management .62 .55 .91 .53 2.59 2.08 1.70 3.76
Salaries-Office .20 .21 .35 .18 .57 .76 .59 .98
Salaries-Buyers .09 .09 .09 .09
Brokerage and commission .'67 .02 .05 .04 .09 .74 .73 .78
Suppliesand shop expense .11 .31 .47 .63 .42 .58 .74
Officesuppliesand exp. .03 .04 .06 .03 .04 .13 .10 .11
Telephone and telegraph .17 .05 .05 .03 .08 .27 .25 .30
Lights, water, power .03 .03 .04 .02 .05 .10 .08 .11
Equipment rental .03 .09 .12 .05 .25 .24 .17 .37
Travel and auto expense .29 .04 .07 .04 .13 .40 .37 .46
Miscellaneous expense .21 .19 .36 .20 1.03 .76 .60 1.43
Total other costs 2.66 6.81 4.83 3.27 8.26 14.30 12.74 17.73
Total Costs 2.74 9.50 29.83 19.73 62.14 42.07 31.97 74.38
* Less than $ .00005






-4-

Table 2. -- Average Costs Per Box of Picking and Hauling Citrus Fruits, 1953-54 Season.
Fresh Fruit Packinghouses and Processors.

STotal
: Picking Picking and Hauling
Item :Hauling:_ :
:Oranges.Grape- .Tange- :Oranges:Grape-:Tange-
S : : fruit : rines :fruit :rines
Number of Operators : 23 : 19 : 19 : 18 :
Average Volume boxes :785, 198:601,925:256,044:35, 168:
Costs per Box cents
Labor:
Field foremen 1.78 1.44 3.26 1.78 1.44 3.26
Pickers 17.87 12.09 45.78 17.87 12.09 45.78
Loaders 2.92 2.92 3.72 2.92 2.92 3.72
Grove drivers 1.32 .93 2.27 1.32 .93 2.27
Highway drivers 2.80 2.80 2.80 2.80
Mechanics .38 .06 .03 .10 .44 .41 .48
Other labor .03 .01 .01 .03 .01 .01
Total 3.18 23.98 17.42 55.14 27.16 20.60 58.32
Workmen's comp. ins. .06 .42 .29 .88 .48 .35 .94
Payroll taxes .07 .18 .12 .40 .25 .19 .47
Total labor 3.31 24.58 17.83 56.42 27.89 21.14 59.73

Other Costs:
Gasoline, oil, grease 2.06 .50 .44 .47 2.56 2.50 2.53
Repairs 2.02 1.92 1.57 1.76 3.94 3.59 3.78
Licenses and taxes .27 .06 .04 .11 .33 .31 .38
Depreciation 1.41 .53 .33 .79 1.94 1.74 2.20
Insurance .21 .05 .03 .08 .26 .24 .29
Interest .01 .01 .01 .01 *
Salaries-Management .20 .37 .23 .70 .57 .43 .90
Salaries-Office .04 .11 .07 .20 .15 .11 .24
Supplies and shop expense .07 .03 .07 .07 .03 .07
Office supplies and expense .01 .01 .01 .02 .02 .02 .03
Telephone and telegraph .01 .02 .01 .02 .03 .02 .03
Equipment rental .09 .09 .09 .09
Travel and auto expense .01 .04 .03 .08 .05 .04 .09
Miscellaneous expense .03 .14 .07 .09 .17 .10 .12
Total other costs 6.36 3.83 2.87 4.39 10.19 9.23 10.75
Total Costs 9.67 28.41 20.70 60.81 38.08 30.37 70.48

* Less than $ .00005







-5"
type of service performed. Since two distinct types of firms are represented, the costs

for each group are shown separately.

Most of the items of cost are self explanatory, but a few comments may serve to

clarify some classifications.

Labor cost is the amount paid by operators to their own crews for the service

indicated. Field foremen were sometimes paid a weekly salary, and sometimes a per-box

rate. Pickers were paid a piece-rate per box, varying with the kind of fruit and the

difficulty of picking. Most operators paid about 11-12 cents per box for picking grape-

fruit, 40-50 cents for tangerines, and around 17 cents per box for budded oranges. The

rate for picking seedling oranges was 20 to 35 cents per box. Any condition which made

picking more difficult usually required a higher picking rate. Loaders transfer the boxes

of picked fruit from the ground to the grove truck. The boxes may be set on the truck

floor, or poured into the truck body, depending upon the disposition intended for the

fruit. Loaders were paid a piece-rate per box -- usually 2-1/2 to 4 cents per box.

Several different methods of handling fruit in the grove were in use. Some firms

used a tractor and 10-box containers to load the fruit directly into the highway truck,

and one operator used a tractor and carts instead of grove trucks. These innovations

eliminate the loaders and make the average rates shown for loading less per box than they

would have been had all used the hand loading method.

Grove drivers were usually paid on an hour-basis. In a few cases the foreman

drove the grove truck. Highway drivers were paid a weekly wage in most cases. Their

function was to drive the large trucks from the roadside to the citrus packing or

processing plant. Mechanics or shop employees were used by some operators to keep

trucks and other equipment in repair. Other labor includes workers such as testers, cooks,







-6-

watchmen, yard and scalehouse labor, and crew truck drivers.

Workmen's Compensation insurance and payroll taxes were added to the amounts

paid workers to determine the total direct! labor costs.

Gasoline, oil and grease cost was the amount consumed by grove and crew trucks,

loading machines, highway trucks and in Some cases by buyers' cars.

Repairs covered all automotive equipment and loading machines, buildings, and

in addition field box and ladder repair and replacement.

Licenses and taxes were principally the truck and auto licenses, but also included

business bonds or licenses and taxes on any property used in the business.

Depreciation is the allowance to cover the estimated wear and tear on the physical

assets used in the business. The total amount of depreciation was calculated by the

firm's accountants in most cases.

Interest is the amount paid for the use of borrowed capital. Very few of the firms

paid any considerable amount of interest, indicating that they were furnishing most of

the capital required to operate the business. No charge for use of the owner's capital

is included in Tables 1 and 2.

Salaries were paid to management, office employees, and fruit buyers where

employed by the firm. Some of the citrus dealers were partnerships and individual

proprietorships and had no paid management this function being performed by the

entrepreneurs. 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 of

management for dealers (Table 1) would have been as follows:







-7-


Management
Paid per Box

Buying and Selling .27 cents
Picking oranges .41 cents
grapefruit .10 cents
tangerines 2.59 cents
Hauling .31 cents


However, this procedure would have left isme citrus dealers with no management

expense, as compared with other firms where management was fully paid. All manage-

ment salaries shown for packinghouses were actually paid, though a majority of such

firms did not allocate any of their management or office salaries to picking and hauling

operations.

Brokerage or commission was sometimes paid on the sale of, or procurement of,

fruit by other buyers.

Supplies and shop expense include pickers' tickets, and various supplies and shop

tools and materials not easily classified with some other expense.

Office supplies and expense include stationery, postage, bank charges, deprecia-

tion and insurance on office equipment.

Telephone and telegraph was used principally in buying and selling of fruit, but

a portion was allocated to picking and hauling also.

Lights, water and power expense included the office consumption and sometimes

power for graders or fruit elevators.

A few firms rented equipment of various kinds for a part of their operations.

Travel and auto expense was incurred mainly in the buying and selling of fruit, but

also some in supervising the picking crews and fruit hauling. Some firms paid a mileage






-8-

rate for autos used, while some owned the cars and supplied fuel, repairs, etc.

Miscellaneous expense included a great many items, some of which were sizeable

sums for a few firms but averaged small amounts for all. This group is made up of

advertising, public relations expense, dqes, subscriptions, donations, drivers' expense

accounts, expense in connection with employment of labor from the British West Indies,

business bad debts, fines, legal and auditing and many unclassified items of expense.

The average cost of buying and selling citrus fruits for 1953-54 averaged 2.74

cents per box for ten dealers (Table 1). The average volume was 1,206,203 boxes, The

principal items of cost for providing this service were buyers' salaries and commissions,

management costs, auto and travel expense and telephone and telegraph.

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

houses and no cost is shown for them in Table 2. Some of the packers did have fruit

procurement costs.

Hauling costs for 11 citrus dealers with an average volume of 886,702 boxes were

9.50 cents per box for 1953-54. Total costs varied from 5.92 cents to 14.67 cents per

box (Table 1). Twenty-three packinghouses operating their own trucks had an average

cost of 9.67 cents per box. The variation in cost was from 5.96 cents to 16.58 cents

per box (Table 2). The average volume for the packinghouses was 785, 198 boxes.

Hauling cost per box does not appear to be related to total volume hauled. It is perhaps

affected more by the volume per truck owned, and by average distance of haul, as well

as by the proportion of box fruit and tangerines hauled. Based on estimates of operators

and a few records of actual loadings obtained in 1951-52, grapefruit cost 9 percent less,

and tangerines 38 percent more to haul than oranges.

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






-9-


for picking and delivering to the roadside, grove truck expense and a portion of over-

head and management expenses. Picking labor was allocated to the various types of

fruit from payroll analyses and piece-rates insofar as possible. Fuel and repairs were

prorated on a box-basis. Certain overhead expenses, in particular those which tend

to be fixed, were distributed between the several types of fruit in the inverse ratio of

the usual number of boxes picked per day by a picker. The average of these estimates

by operators placed two thirds as much overhead per box on grapefruit and twice as much

on tangerines as on oranges.

Total picking costs for ten citrus dealers averaged 29.83 cents per box for oranges

and 19,73 cents for grapefruit (Table 1). Costs varied from 22.67 cents to 33.97 cents

per box for oranges, and from 15,90 cents to 23.77 cents per box for grapefruit. Only

three of these operators picked tangerines with their own crews, and these picked only

small quantities. The average cost per box for picking tangerines was 62.14 cents.

Labor, including workmen's compensation insurance and payroll taxes, was the largest

item of cost in picking fruit being about 84 percent of the total for oranges and grape-

fruit and 87 percent for tangerines.

For 19 packinghouses which operated their own crews, total picking costs for

oranges were 28.41 cents per box. The variation per box was from 25.53 cents to 33.88

cents. Grapefruit picking costs totaled 20.70 cents per box, ranging from 18.82 cents

to 23.56 cents. Total picking costs for tangerines averaged 60.81 cents. As with the

citrus dealers, the principal picking costs of the fresh fruit packinghouses were labor,

gas and oil, repairs, licenses, insurance and depreciation. These items were usually

complete in the records of the packinghouses, but some of the smaller overhead items

were not complete. Frequently such items as telephone, office expense, lights and







-10-

water, interest, management and office salaries were charged entirely to the packing

operation and none allocated to picking and hauling. This is simpler and perhaps just

as satisfactory from the packinghouse viewpoint, but when considering the picking and

hauling as a separate enterprise, it results in some of the overhead costs being under-

stated.

The last three columns of Table 1 show for citrus dealers the combined average

costs for the complete operation of moving fruit from the tree to the cannery, which

includes buying and selling, picking, and hauling. Oranges cost 42.07 cents per box,

grapefruit 31.97 cents, and tangerines 74.38 cents from tree to cannery.

For fresh fruit packinghouses, the last section of Table 2 shows the combined costs

of picking and hauling each type of fruit for 1953-54. Since packinghouses do not

normally have buying and selling costs for unpacked fruit this section of Table 2 is not

comparable with the last section of Table 1.

Many citrus firms, both dealers and packers, contract with other operators to pick

or haul, or both. Contract picking and hauling was separated from the firm's own crews.

Rates or amounts paid contractors are not shown in Tables 1 and 2 because of the diffi-

culty of determining the exact service performed and the kind of fruit. All contract work

for 1953-54 averaged 26.93 cents per box, but this is a mixture of picking, hauling, or

both, and the kind of fruit is unknown.

Capital Investment

Capital invested in the various physical assets required to pick and haul citrus

fruit by 28 firms is shown in Table 3. The average volume per firm was 913,407 boxes -

volume here being taken as the total number of boxes on which any service was performed

The firms included 12 citrus dealers and 16 fresh fruit packers.







-11-

Table 3. --Average Capital Invested in Citrus Picking and Hauling Equipment,
28 Firms, 1953-54.1/

S Average : Average Per : Percent
Per : 1,000 Boxes : of
Asset Firm Handled : Total
Cost Book Cost Book Cost Book
Cos Value: Value: : Value
Land and buildings $ 1,990 $ 1,578 $ 2.18 $ 1.73 2.1 3.3
Autos, trucks, trailers 79,001 38, 158 86.49 41.77 84.5 78.4
Boxes, ladders, field equipment 10,355 7,514 11.33 8.22 11.1 15.4
Office equipment 2, 186 1,430 2.39 1.57 2.3 2.9

Total $93,532 $48,680 $102.39 $53.29 100.0% 100.0%

J/ Value of some assets not always completely obtained. Land and buildings and office
equipment were frequently included in packinghouse assets for fresh fruit packers. Boxes
and ladders were often not carried on the books as an asset.

2/Volume on which any service was performed buying and selling, picking, hauling or
any combination. Average volume per firm on this basis was 913,407.


Total book value of investment per firm averaged $48,680 or $53 per 1,000 boxes

handled. Of this 3.3 percent was in land and buildings, 78.4 percent in automotive

equipment, 15.4 percent in boxes, ladders, loaders and other miscellaneous equipment,

and 2.9 percent was in office furniture and equipment. The cost of the above equipment

averaged $93,532 per firm and was 48 percent depreciated. On the basis of book value

the total investment per 1,000 boxes was greater for the dealers than the packers. The

packers, however, had much more investment in field boxes than dealers and their

records often did not separate land and buildings or office furniture from the packing-

house assets.

If only the more intensive operations of picking and hauling are considered

(omitting the volume of buying and selling acd contracted volume), the capital invested

directly in trucks and trailers and boxes and ladders amounted to $63 per 1,000 boxes






-12-

picked and hauled. On this basis of comparison the dealers had 40 percent more capital

invested per 1,000 boxes than the packers ($74 for dealers and $53 for packers). They

also had 31 percent more volume per firm.

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

and hauling equipment. Interest paid by the firms for the use of borrowed capital is in-

cluded, though very few had interest expense. If interest at 5 percent were included on

the book value of the operator's capital it would amount to .32 cents per box picked and

hauled.

Variation in Cost Between Firms

Total cost varied rather widely between firms for providing the same service. These

variations in total cost for picking and hauling in 1953-54 are shown in Tables 4, 5 and

6. Not enough is known about the individual firm's operations to provide much information

about reasons for costs being high or low. Costs do not seem to be related to the total

volume of the firm. In fact some of the smaller operators had relatively low costs.


Comparison of 1953-54 Costs with Previous Seasons

Total picking and hauling costs for 1953-54 were not much different from the

averages of preceding seasons (Table 7). Buying and selling costs per box have declined

somewhat each season, and hauling costs have shown the same tendency. No definite

trend is shown by the picking costs. The fluctuation in total costs each season is wider

for tangerines than for oranges and grapefruit. Very few of the citrus dealers picked them

with their own crews, and packinghouse crews picked them in much smaller volume than

other citrus.






-12-

picked and hauled. On this basis of comparison the dealers had 40 percent more capital

invested per 1,000 boxes than the packers ($74 for dealers and $53 for packers). They

also had 31 percent more volume per firm.

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

and hauling equipment. Interest paid by the firms for the use of borrowed capital is in-

cluded, though very few had interest expense. If interest at 5 percent were included on

the book value of the operator's capital it would amount to .32 cents per box picked and

hauled.

Variation in Cost Between Firms

Total cost varied rather widely between firms for providing the same service. These

variations in total cost for picking and hauling in 1953-54 are shown in Tables 4, 5 and

6. Not enough is known about the individual firm's operations to provide much information

about reasons for costs being high or low. Costs do not seem to be related to the total

volume of the firm. In fact some of the smaller operators had relatively low costs.


Comparison of 1953-54 Costs with Previous Seasons

Total picking and hauling costs for 1953-54 were not much different from the

averages of preceding seasons (Table 7). Buying and selling costs per box have declined

somewhat each season, and hauling costs have shown the same tendency. No definite

trend is shown by the picking costs. The fluctuation in total costs each season is wider

for tangerines than for oranges and grapefruit. Very few of the citrus dealers picked them

with their own crews, and packinghouse crews picked them in much smaller volume than

other citrus.








-13-

Most of the season-to-season variation in cost for each service is due to the firms

included. These have not remained identical each year, and as previously pointed out,

costs vary widely between firms.



Table 4. -- Variation in Total Cost Per Box for 29 Firms
Picking Oranges and Grapefruit, and 21
Firms Picking Tangerines, 1953-54 Season.

Citrus Dealers and Packers


Cost Per Box

(Cents)
15- 17.9
18 20.9
21 23.9
24 26.9
27 29.9
30 32.9
33 35.9

55 59.9
60 64.9
65 69.9
70 74.9
Total Number of Firms

Average Cost Per Box


Oranges : Grapefruit : Tangerines

Number of Firms
2
14
1 13


29

28.9 je


29

20.6 X


6
9
2
4
21

60.9 j


-- --


--


m l I I


_ _~___







-14-


Table 5. -- Variation in Total Cost Per Box for Hauling
Citrus Fruit from Grove to Cannery, 34 Firms,
1953-54 Season.
Citrus Dealers and Packers

Cost Per Box Number of Firms

(Cents) Number
4 5.9 2
6 7.9 7
8 9.9 8
10 -11.9 10
12 -13.9 5
14 and over 2
Total Number of Firms 34

Average Cost Per Box 9.6 /



Table 6. -- Variation in Total Cost Per Box for Picking
and Hauling Citrus, 1953-54 Season. -1/
Citrus Dealers and Packers

Cost Per Box : Oranges : Grapefruit : Tangerines
(Cents) Number of Firms
20 24.9 2-
25 29.9 8
30 34.9 7 14
35 39.9 9 2
40 44.9 8
45 49.9 2

60 64.9 1
65 69.9 4
70 74.9 8
75 79.9 3
80 84.9 2
Total Number of Firms 26 26 18
Average Cost Per Box 38.5/ 30.2 / 70.5/
1/ Citrus dealers had an additional cost of buying and selling
fruit averaging 2.74 cents per box which is not included above.







-15-


Table 7. -- Total Costs Per Box for Buying and Selling, Picking and
Hauling Citrus Fruits, Four Seasons.


: All Operations:
No. Buying Picking Buying and Selling
Season of and Hauling Picking and Hauling
Firms Selling Oranges: Grft. :Tangerines Oranges: Grft : Tangerines

Specialized Citrus Dealers
1950-51 9 3.84% 10.31% 28.36% 18.62X 56.93X 42.51% 32.77V 71.08%
1951-52 15 3.37 10.19 28.33 20.41 53.06 41.89 33.97 66.62
1952-53 11 3.02 9.63 27.82 21.12 50.07 40.47 33.77 62.72
1953-54 13 2.74 9.50 29.83 19.73 62.14 42.07 31.97 74.38

Fresh Fruit Packers and Processors
1951-52 11 1/ 9.24 28.53 19.23 62.59 37.77- 28.471/ 71.831/
1952-53 18 / 9.75 29.77 22.24 59.78 39.52-/ 31.99-/ 69.531/
1953-54 24 1/ 9.67 28.41 20.70 60.81 38.08/ 30.37-1 70.48i/

Total, All Firms
1951-52 26 3.372 9.81 28.42 19.51 61.93 41.60 32.69 75.11
1952-53 29 3.02/ 9.71 29.12 21.98 59.62 41.85 34.71 72.35
1953-54 37 2.742/ 9.61 28.87 20.58 60.86 41.22 32.93 73.21

1/ The cost of buying and selling unpacked fruit is not incurred by fresh fruit packers and is
not included in the total of all operations. Thus their total costs are not comparable with
citrus dealers.
2/ Average cost for specialized citrus dealers.