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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: 1956
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: UF00027604:00011
 Related Items
Succeeded by: Estimated costs of picking and hauling Florida citrus fruits

Table of Contents
    Front Cover
        Front Cover
    Table of Contents
        Page 1
    Introduction
        Page 1
    Services performed
        Page 2
    Costs of picking and hauling, 1956-57
        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
        Page 13
        Page 14
    Comparison of 1956-57 costs with previous seasons
        Page 15
        Page 16
Full Text
Agricultural Economics Mimeo Report No. 58-7


COSTS OF PICKING AND HAULING


FLORIDA CITRUS FRUITS


1956-57 SEASON

by
A. H. Spurlock
Agricultural Economist


Cost per box


$0.40



.30



.20



.10


1951-52 1952-53 1953-54 1954-55


A A l


1955-56 1956-57


Average Cost of Picking and Hauling Florida Oranges,
1951-52 to 1956-57 Inclusive


A Study Conducted with Funds Provided by the /
Research and Marketing Act
Department of Agricultural Economics /
Florida Agricultural Experiment Stations -
Gainesville, Florida


February, 1958








COSTS OF PICKING AND HAULING FLORIDA
CITRUS FRUITS, 1956-57 SEASON



CONTENTS

Page
Introduction . .. . 1

Services Performed .. .... 2

Costs of Picking and Hauling, 1956-57 . 3

Capital Investment . . . 10

Variation in Cost Between Firms . 12

Comparison of 1956-57 with Prior Seasons 15





Introduction

This is the seventh annual summary of costs of picking and hauling citrus fruits,

prepared from a sample of citrus dealers and packers. Other handling and marketing costs

in the citrus industry are released in separate publications as indicated inside the back

cover. Costs of handling citrus fruits from the tree to the packing or processing plant for

the 1956-57 season are summarized for 34 firms by type of fruit. Services covered were:

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

in the truck, and (3) hauling from the grove to the plant. Eight of the firms furnishing

data were citrus dealers specializing in the procurement, sale and delivery of fruit to the

processing plant, and 26 were principally packers of fresh fruit or processors. Most of the

dealers also contracted with other operators to pick and haul some of their volume. Con-

tracting with other operators to pick and haul part or all of their volume also was common
1








COSTS OF PICKING AND HAULING FLORIDA
CITRUS FRUITS, 1956-57 SEASON



CONTENTS

Page
Introduction . .. . 1

Services Performed .. .... 2

Costs of Picking and Hauling, 1956-57 . 3

Capital Investment . . . 10

Variation in Cost Between Firms . 12

Comparison of 1956-57 with Prior Seasons 15





Introduction

This is the seventh annual summary of costs of picking and hauling citrus fruits,

prepared from a sample of citrus dealers and packers. Other handling and marketing costs

in the citrus industry are released in separate publications as indicated inside the back

cover. Costs of handling citrus fruits from the tree to the packing or processing plant for

the 1956-57 season are summarized for 34 firms by type of fruit. Services covered were:

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

in the truck, and (3) hauling from the grove to the plant. Eight of the firms furnishing

data were citrus dealers specializing in the procurement, sale and delivery of fruit to the

processing plant, and 26 were principally packers of fresh fruit or processors. Most of the

dealers also contracted with other operators to pick and haul some of their volume. Con-

tracting with other operators to pick and haul part or all of their volume also was common
1









among the fresh fruit packers and processors.

The location of the firms included was Polk County, 15; Orange County, 8;

Lake County, 5; Pinellas County, 2; and one each in Hillsborough, Pasco, Seminole

and Hernando Counties.

Total volume of fruit handled varied widely between firms. Only one firm had

less than 100,000 boxes, and 9 firms had more than 1,000,000 boxes each.


Services Performed

The total costs of operation were obtained from the records of the firms. An

attempt was made to divide the total costs of operation into the following services or

functions:

Buying and Selling.-- For specialized fruit 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 and 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.

Picking.--This is the operation of getting the fruit off the tree and into the high-

way truck. The costs in this study represent 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.

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 includes

hauling of packinghouse eliminations to the cannery, this being counted as a separate

haul. This is usually a somewhat less expensive haul than from grove to plant, according

to operators. One of the reasons for this is heavier loading of trucks. Most operators

state that hauling costs are about equal for oranges and grapefruit, but higher for tange-

rines because of the lighter loading required.


Costs of Picking and Hauling, 1956-57

The average costs per box for picking and hauling citrus fruit for the 1956-57

season from the grove to the processor or packinghouse are shown in Tables 1 and 2.

These costs are weighted averages; that is, the total money costs of all firms are divided

by the total number of boxes. Since two types of firms are represented, the costs for

each group are shown in a separate table. The distinction between citrus dealers and

packers in methods of operation is perhaps not as clear as it once was. Both groups

commonly pull oranges and grapefruit instead of clipping. Also, packinghouses often

pick some fruit,destined for canneries, by the bulk methods used by citrus dealers. A

few packers also use bulk handling methods for the fruit which is packed fresh.

The average cost of bu and selling citrus fruits for 1956-57 averaged 2.39

cents per box for eight dealers, varying from .76 cents to 6.21 cents per box (Table 1).

The average volume was 1,233,460 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









TABLE 1.--Average Cost Per Box for Picking and Hauling Citrus Fruit, 1956-57 Season.
Citrus Dealers Specializing in Buying and Selling, Picking and Hauling

Buying Picking All operations: Buying,
Item and Hauling selling,picking, hauling
selling Oranges Grape- Tange- Oranges Grape- Tange-
fruit rines fruit rines
Number of operators 8 7 8 7 2
Ave. volume (boxes) 1,283,460 1, 069, 400 682,869 201,993 28,436

Cost per box (cents)
Labor:
Field foremen 2.04 1.92 1.97 2.04 1.92 1.97
Pickers 18.16 11.44 50.73 18.16 11.44 50.73
Loaders 2.37 2.25 3.77 2.37 2.25 3.77
Grove drivers 1.28 1.41 1.24 1.28 1.41 1.24
Highway drivers 3.04 ... .. ... 3.04 3.04 3.04
Mechanics .01 .36 .10 .10 .68 .47 .47 1.05
Other labor .01 .08 .67 .48 .38 .76 .57 .47
Total .02 3.48 24.62 17.60 58.77 28.12 21.10 62.27
Workmen's comp.ins.,
payroll taxes a .10 .77 .53 2.26 .87 .63 2.36
Total labor .02 3.58 25.39 18.13 61.03 28.99 21.73 64.63
Other Costs:
Gasoline, oil,grease .03 1.67 .50 .43 1.20 2.20 2.13 2.90
Repairs .02 1.13 .51 .30 1.44 1.66 1.45 2.59
Licenses and taxes .01 .43 .09 .06 .24 .53 .50 .68
Depreciation .05 1.74 .63 .37 3.03 2.42 2,16 4.82
Insurance .01 .23 .07 .04 .16 .36 .33 .45
Interest .10 .11 .13 .11 .46 .34 .32 .67
Salaries-management .54 .66 .82 .41 4.84 2.02 1.61 6.04
office .21 .24 .29 .19 .95 .74 .64 1.40
buyers .14 ... ... ... .14 .14 .14
Brokerage and commission .49 ... ... ... ... .49 .49 .49
Supplies and shop expense ... .05 .18 .14 .56 .23 .19 .61
Ofc. supplies and expense .04 .05 .06 .03 .18 .15 .12 .27
Telephone and telegraph .25 .05 .05 .04 .13 .35 .34 .43
Lights, water, power .02 .03 .03 .02 .07 .08 .07 .12
Equipment rental .01 .40 .25 .21 .15 .66 .62 .56
Travel and auto .27 .07 .08 .06 .29 .42 .40 .63
Foreign labor expense ... .. .25 .15 ... .25 .15 ...
Miscellaneous expense .18 .16 .32 .25 .67 .66 .59 1.01
Total other costs 2.37 7.07' 4.26 2.81 14.37 13.70 12.25 23.81
Total Costs 2.39 10.65 29.65 20.94 75.40 42.69 33.98 88.44

aLess than .005 cents.
blncludes legal and audit, advertising, dues, donations and bad debts.









TABLE 2.--Average Costs per Box of Picking and Hauling Citrus Fruits, 1956-57 Season.
Fresh Fruit Packinghouses and Processors


Item Hauling Picking Total: Picking and Hauling
Item Haul ing -----2------------
Oranges Grape- Tange- Oranges Grape- Tange-
fruit rines fruit rines
Number of operators 22 22 22 22
Average volume (boxes) 856,709 630,650 228,455 49, 805
Costs per box (cents)
Labor:
Field Foreman ... 2.23 1.68 4.18 2.23 1.68 4.18
Pickers ... 18.33 13.03 51.22 18.33 13.03 51.22
Loaders ... 3.17 2.97 3.52 3.17 2.97 3.52
Grove drivers ... 1.60 1.17 3.41 1.60 1.17 3.41
Highway drivers 2.35 ... ... ... 2.35 2.35 2.35
Mechanics ,11 .05 .05 .04 .16 .16 .15
Other labor .07 .17 .20 .17 .24 .27 .24
Total 2.53 25.55 19.10 62.54 28.08 21.63 65.07
Workmen's comp.ins.,
payroll taxes .15 1.00 .84 2.32 1.15 .99 2.47
Total labor 2.68 26.55 19.94 64.86 29.23 22.62 67.54
Other Costs:
Gasoline,oil, grease 1.57 .64 .58 .62 2.21 2.15 2.19
Repairs 1.72 1.53 1.63 1.45 3.25 3.35 3.17
Licenses and taxes .39 .10 .06 .22 .49 .45 .61
Depreciation 1.37 1.09 .54 2.38 2.46 1.91 3.75
Insurance .21 .12 .08 .27 .33 .29 .48
Interest a a a a a a a
Salaries--management .34 .59 .39 1.17 .93 .73 1.51
office .14 .32 .22 .70 .46 .36 .84
Supplies--shop expense .03 .12 .13 .11 .15 .16 .14
Ofc. supplies and exp. .02 .02 .02 .04 .04 .04 .06
Telephone and telegraph .02 .06 .04 .15 .08 .06 .17
Equipment rental .06. .15 .08 .05 .21 .14 .11
Travel and auto expense .05 .25 .15 .63 .30 .20 .68
Foreign labor expense ... .40 .22 1.04 .40 .22 1.04
Miscellaneous expense .12 .10 .09 .23 .22 .21 .35
Total other costs 6.04 5.49 4.23 9.06 11.53 10.27 15.10
Total Costs 8.72 32.04 24.17 73.92 40.76 32.89 82.64

aLess than .005 cents.
bIncludes lights, water, legal and audit, advertising, dues and subscriptions, donations
and bad debts.










procurement costs, however.

Hauling costs for 7 citrus dealers with an average volume of 1,069,400 boxes were

10.65 cents per box for 1956-57. This is a composite cost for all kinds of fruit hauled

(Table 1). Twenty packinghouses operating their own trucks had on average cost of 8.72

cents per box (Table 2). The average volume for the packinghouses was 856, 709 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.

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 portion of overhead

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 equally to all kinds of fruit. Certain overhead expenses, 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 8 citrus dealers picking oranges averaged 29.65 cents per

box, and for 7 dealers averaged 20.94 cents for grapefruit (Table 1). Only two of these

operators picked tangerines with their own crews, and these picked only small quantities.

The average cost per box for picking tangerines was 75.40 cents. Labor, including work-

men's compensation insurance and payroll taxes, was the largest item of cost in picking

fruit, being approximately 86 percent of the total for oranges and grapefruit, and 81

percent for tangerines.










For 22 packinghouses which operated their own crews, total picking costs for

oranges were 32.04 cents per box, and for grapefruit 24.17 cents. Total picking costs

for tangerines averaged 73.92 cents per box. As with the citrus dealers, the principal

items of 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. Fre-

quently such items as telephone, office expense, lights and water, interest, management

and office salaries were charged entirely to the packing operation and none allocated to

picking and hauling.

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

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

includes buying and selling, picking and hauling. This is obtained by adding together

the costs allocated to the separate services. Oranges cost 42.69 cents per box, grape-

fruit 33.95 cents and tangerines 88.44 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 1956-57. Since packinghouses do not

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

entirely comparable with the last section of Table 1.

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

and 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 or 2 because of the difficulty

of determining the exact service performed and the kind of fruit. Contracted picking

for 1956-57 cost 27.2 cents per box, and contracted hauling averaged 10.84 cents, but

the kind of fruit is unknown.










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 11-13 cents per box for picking grape-

fruit, 45-55 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

some operators used a tractor and 25-box 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 hourly basis. In a few cases the foreman

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

sometimes a per-box rate. 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, watchmen, yard and scale-

house 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 buyer's 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. No charge for use of

the owner's capital is included in Tables 1 ar 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 pro-

prietorships and had no paid management--this function being performed by the entrepre-

neurs. In these cases the owner was asked to estimate the value of his labor and manage-

ment. If only the paid management costs had been included the per-box costs of manage-

ment for dealers (Table 1) would have been less. However, this procedure would have

left some citrus dealers with no management expense, as compared with other firms where

management was fully paid. All management salaries shown for packinghouses were

actually paid, though some of such firms did riot 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 picker's 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, depre-

ciation 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

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 adver-

tising, public relations expense, dues, subscription, donations, driver's expense accounts,

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


Capital investment

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

fruit by 22 firms is shown in Table 3. The firms included 7 citrus dealers and 15 fresh

fruit packers.

Total book value of investment per firm averaged $65,677 or $85 per 1,000 boxes











TABLE 3.--Average Capital Invested in Citrus Picking and Hauling Equipment, 22 Firms,
1956-57a

Average per firm Average per 1,q00 Percent of
Class boxes handled0 total
Cost Book Cost Book Cost Book
value vclue value

Land and buildings $ 14,401 $10,414 $ 17.26 $12.48 10.6 15.8
Autos, trucks, trailers 98,051 37,363 131.37 50.06 71.9 56.9
Boxes, ladders, field equip. 21,135 16,406 26.15 20.30 15.5 25.0
Office equipment 2,744 1,494 3.91 2.13 2.0 2.3
Total $136,331 $65,677 $178.69 $84.97 100.0 100.0


aValue 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.
bLargest volume handled, either picking or hauling. Average volume per firm
746,357 boxes.


handled. Of this 15.8 percent was in land and buildings, 56.9 percent in automotive

equipment, 25.0 percent in boxes, ladders, loaders and other miscellaneous equipment,

and 2.3 percent was in office furniture and equipment. The original cost of the total

investment averaged $136,331 per firm and was about 52 percent depreciated. On the

basis of book value, the total investment per 1,000 boxes was slightly higher for the packers

than for dealers. The packers had more investment in each class of asset except office

equipment. However, their records often did not separate land and buildings or office

furniture from the packinghouse assets, and the averages for these classes were determined

from the firms having separations.

None of the costs in Table 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









included. If interest at 5 percent were included on the book value of the operator's

capital it would amount to .44 cents per box picked and hauled for the 22 firms from

whom capital investment was obtained.


Variation in Cost Between Firms

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

variations in total costs for picking and hauling,1956-57, are shown in Tables 4, 5, and 6

for citrus dealers and packinghouses combined. Not enough is known about the individual

firms' operations to provide much information about reasons for costs being high or low.

The data do not show any consistent relationship between volume of fruit handled and level of

costs. Costs at first seem to decrease with increasing volume but then tend to stabilize or

even increase again. In each volume group there is a wide range of costs for both picking

fruit and for haul ing, indicating the influence of fietors other than volume. For hauling,

the average distance hauled and the idle capacity of the equipment owned doubtless affect

the overall season hauling cost per box. For picking, costs cannot decrease beyond a

certain point because of the large proportion of labor costs, some of which are piece

rates and do not fluctuate with volume picked. Firms with very low volumes--too low

to efficiently utilize one crew--had very high picking costs. Picking costs in some of the

largest operations also were higher than average.

Management decisions probably affect citrus picking and hauling costs to a con-

siderable extent. The operation of picking and hauling fruit is only one segment of the

total business operation, whether the firm be a citrus dealer, packinghouse, or processor.

Obtaining a large and continuous volume of fruit may have advantages to the firm that









outweigh the advantage of merely achieving low cost in the picking and hauling operation.

Total picking costs for 8 citrus dealers and 22 packinghouses varied from 26.3 cents

to 43.7 cents per box for oranges, and from 18.8.cents to 31.2 cents per box for grapefruit.

The range in cost for picking tangerines was from 60.6 cents to 88.0 cents per box

for 24 firms (Table 4).

Hauling costs for 7 citrus dealers and 22 packinghouses varied from 6.6 cents to

13.0 cents per box (Table 5).


TABLE 4.--Variation in Total Cost Per Box for 30 Firms for Picking Oranges and 29 Firms
Picking Grapefruit and 24 Firms Picking Tangerines, 1956-57 Season, Citrus Dealers and
Packers


Cost per box
(cents)
18- 20.9
21 -23.9
24 26.9
27 29.9
30 32.9
33 -35.9
36-38.9
39 -41.9
42 44.9

60 64.9
65 -69.9
70 74.9
75 -79.9
80 84.9
85 -89.9
Total number of firms

Average Cost Per Box (cents)
Ranges in Costs (cents)


Oranges Grapefruit Tangerines


Number of firms
7
10
7
3
2


30

31.4
26.3 -43.7


29

23.5
18.8-31.2


24

74.0
60.6 88.0


- --


"


- -- 1 I-










TABLE 5.--Variation in Total Costs Per Box for Hauling Citrus
Fruit from Grove to Cannery, 29 Firms, 1956-57 Season.
Citrus Dealers and Packers


Cost per box


Number of firms


(cents) Number
6- 7.9 9
8- 9.9 8
10- 11.9 8
12- 13.9 4

Average Cost Per Box (cents) 9.3
Range in Costs (cents) 6.6 13.0


TABLE 6.--Variation in Total


Cost Per Box for Picking and
Citrus Dealers and Packers


Hauling Citrus, 1956-57 Seasona


Cost per box Oranges Grapefruit Tangerines
(cents) Number of firms
25 29.9 6
30 -34.9 1 10
35-39.9 14 6
40 -44.9 6 2
45-49.9 2
50 54.9 1
55-59.9 1

65-69.9 1
70- 74.9 2
75 79.9 3
80-84.9 4
85 89.9 6
90 -94.9 2
95 and over 1
Total number of firms 25 24 19

Average Cost Per Box (cents) 40.6 32.7 83.2
Range in Costs (cents) 33.7 -56.3 26.3 -43.8 68.0 100.0

Citrus dealers had an additional cost of buying and selling fruit averaging 2.4 cents
per box which is not included above.










For picking and hauling combined (but excluding buying and selling), costs for

25 firms, both dealers and packers, ranged from 33.7 cents to 56.3 cents per box for

oranges and averaged 40.6 cents. The modal group of 13 firms had costs between 37.3

cents and 44.2 cents for oranges. Picking and hauling costs for grapefruit for 24 firms

varied from 26.3 cents to 43.8 cents per box, averaging 32.7 cents. The modal group of

12 firms had costs between 30.1 cents and 35.8 cents per box. Picking and hauling tange-

rines varied from 68.0 cents to $1.00 per box, and averaged 83.2 cents for 19 firms. Nine

of these firms had costs between 79.7 cents and 87.6 cents per box.


Comparison of 1956-57 Costs with Previous Seasons

Total picking costs for 1956-57 were higher for all firms as a group than the averages

of preceding seasons (Table 7). Operating costs for the citrus dealers were slightly lower

for all services performed except picking tangerines, Costs for fresh fruit packers were

higher for picking fruit in 1956-57. The fluctuation in total costs each season has been

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

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

volume than other citrus.

Hauling costs were slightly lower for both groups of firms in 1956-57 than in the

preceding year.

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

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

costs vary widely between firms.









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

No. Buying Picking All operations: Buying,selling,
No. Buying Pickingnd hauling
Season of and Hauling picking and hauling
firms selling Oranges Grape- Tange- Oranges Grape- Tange-
fruit rines fruit rines
- - - - cents per box - - -
Citrus Dealers
1950-51 9 3.84 10.31 28.36 18.62 56.93 42,51 32.77 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
1954-55 11 2.36 8.47 28.89 19.58 63.25 39.72 30.41 74.08
1955-56 10 2.71 11.04 30.46 21.69 69.34 44.21 35.44 83.09
1956-57 8 2.39 10.65 29.65 20.94 75.40 42.69 33.98 88.44
Fresh Fruit Packers and Processors
1951-52 11 a 9.24 28.53 19.23 62.59 37.770 28.470 71.830
1952-53 18 a 9.75 29.77 22.24 59.78 39.520 31.990 69.530
1953-54 24 a 9.67 28.41 20.70 60,81 38.08a 30.370 70.480
1954-55 24 a 9.84 28.94 21.12 64.78 38.78a 30.960 74.62a
1955-56 26 a 8.82 30.53 21.74 66.33 39.35a 30.560 75.15a
1956-57 26 a 8.72 32.04 24.17 73.92 40.760 32.89a 82.640
Total all Firms
1951-52 26 3.37b 9.81 28.42 19.51 61.93 41.60 32.69 75.11
1952-53 29 3.02b 9.71 29.12 21.98 59.62 41.85 34.71 72.35
1953-54 37 2.74b 9.61 28.87 20.58 60.86 41.22 32.93 73.21
1954-55 36 2.36b 9.38 28.93 20.91 64.72 40.67 32.65 76.46
1955-56 36 2.71b 9.47 30.52 21.73 66.39 42.70 33.91 78.57
1956-57 34 2.39b 9.27 31.36 23.46 73.96 43.02 35.12 85.62


aThe cost of buying and selling unpacked fruit is not incurred by fresh packers and is not
included in the total of all operations. Thus, their total costs are not comparable with citrus
dealers.


bAverage cost for citrus dealers.