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 Capital investment
 Costs of picking and hauling,...
 Variation in cost among firms
 Comparison of 1957-58 costs with...
 Explanatory notes














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: 1957
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: UF00027604:00012
 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
    Capital investment
        Page 2
    Costs of picking and hauling, 1957-58
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
    Variation in cost among firms
        Page 9
    Comparison of 1957-58 costs with previous seasons
        Page 10
        Page 11
        Page 12
        Page 13
    Explanatory notes
        Page 14
        Page 15
        Page 16
Full Text
February, 1959


COSTS OF PICKING AND HAULING

FLORIDA CITRUS FRUITS


1957-58 SEASON


by
A. H. Spurlock
Agricultural Economist


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

Department of Agricultural Economics
Florida Agricultural Experiment Stations
Gainesville, Florida


Citrus Picking and Hauling Costs, 1957-58
Costs, Cents Per Box
0 10 20 30 40 50 60 70 80 90 100


Oranges


Grapefruit


Tangerines


Agricultural Economics Mimeo Report No. 59-10






COSTS OF PICKING AND HAULING FLORIDA
CITRUS FRUITS, 1957-58 SEASON


CONTENTS
Page
Introduction .... .. ..., .....,...... ..... 1

Capital Investment .,.. ........... ....... 2

Co;ts of Picking and Hauling, 1957-58.,...... 3

Variation in Cost Among Firms ............,. 9

Comparison of 1957-58 with Prior Seasons ..... 10

Explanatory Notes ....................... 14




Introduction

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

prepared from a sample of citrus dealers, packers, and processors. 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 1957-58 season were 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.

Ten of the firms furnishing data were citrus dealers specializing in the procurement, sale

and delivery of fruit to the processing tlant, and 24 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. Contracting with other operators to pick and haul part or all

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

1






COSTS OF PICKING AND HAULING FLORIDA
CITRUS FRUITS, 1957-58 SEASON


CONTENTS
Page
Introduction .... .. ..., .....,...... ..... 1

Capital Investment .,.. ........... ....... 2

Co;ts of Picking and Hauling, 1957-58.,...... 3

Variation in Cost Among Firms ............,. 9

Comparison of 1957-58 with Prior Seasons ..... 10

Explanatory Notes ....................... 14




Introduction

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

prepared from a sample of citrus dealers, packers, and processors. 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 1957-58 season were 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.

Ten of the firms furnishing data were citrus dealers specializing in the procurement, sale

and delivery of fruit to the processing tlant, and 24 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. Contracting with other operators to pick and haul part or all

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

1








The number of firms included by location was Polk County, 13; Orange County,

9; Lake County, 5; Pinellas County, 3; 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 nine firms had more than 1,000,000 boxes each. The

average volume for the 34 firms was 770,000 boxes.


Capital Investment

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

fruit by 23 firms is shown in Table 1. The firms included 8 citrus dealers and 15 fresh

fruit packers.


TABLE 1 .--Average capital invested in citrus picking and hauling equipment, 23 firn.s,
1957-580



Average per firm Average per 1 000 Percent of
Class boxes handled total
Book Book Book
Cost Book Cost Book Cost Book
t value value ot value

Land and buildings $ 9,842 $ 6,278 $ 14.76 $ 9.42 8.6 13.5
Autos, trucks, trailers 87,376 28,410 131.08 42.62 75.9 61.2
Boxes, ladders, field equip. 14,903 10,423 22.36 15.64 12.9 22.4
Office equipment 3,012 1,350 4.52 2.02 2.6 2.9

Total $115,133 $46,461 $172.72 $69.70 100.0 100.0

oValue 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
was 666, 584 boxes.









Total book value of investment per firm averaged $46,461 or $70 per 1,000 boxes

handled. Of this, 13.5 percent was in land and buildings, 61.2 percent in automotive

equipment, 22.4 percent in boxes, ladders, loaders and other miscellaneous equipment,

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

investment averaged $115,133 per firm and was about 60 percent depreciated.


Costs of Picking and Hauling, 1957-58

The average costs per box for picking and hauling citrus fruit for the 1957-58

season from the grove to the processor or packinghouse are shown in Tables 2 and 3.

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 ore shown in a separate table. The distinction between citrus dealers and

packers in methods of picking and hauling is perhaps not as clear as it once was. Both

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

often pick and handle some fruit destined for canneries by bulk methods used by citrus

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

fresh.

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.








TABLE 2.--Average cost per box for picking and hauling citrus fruit, 1957-58 season.
Citrus dealers specializing in buying and selling, picking and hauling


Buying Picking All operations: Buying,
yItem anI Haulin_ selling, picking,hauling
tem and Huling -fru
selling Oranges Grape- Oranges Grape-
fruit fruit


Number of operators
Avg. volume (boxes)

Labor:
Field foremen
Pickers
Loaders
Grove drivers
Highway drivers
Mechanics
Other labor
Total
Payroll taxes, insurance
Total labor
Other Costs:
Gasoline, oil, grease
Repairs
Licenses and taxes
Depreciation
Insurance
Interest paid
Salaries-management
Salaries-office
Salaries-buyers
Brokerage and commission
Supplies and shop expense
Ofc.supplies and expense
Telephone and telegraph
Lights, water, power
Equipment rental
Travel and auto
Foreign labor expense
Miscellaneous expensea
Total other costs
Total Costs


9 8 10 9 ...
546,866811,240 505,357 145,839 ., ..
Cost Per Box (cents)

S2.32 1.90 2.32 1.90
.18.19 12.15 18.19 12.15
2.36 2.47 2.36 2.47
.. 1.32 .96 1.32 .96
.. 3.04 .. .. 3.04 3.04
.. .41 .36 .21 .77 .62
.18 .37 .32 .55 .50
S 3.63 24.92 18.01 28.55 21.64
.17 1.12 .81 1.29 .98
.. 3.80 26.04 18.82 29.84 22.62

.06 2.31 .81 .78 3.18 3.15
.05 2.07 1.00 1.02 3.12 3.14
.02 .55 .17 .12 .74 .69
.09 2.40 1.04 .70 3.53 3.19
.03 .55 .19 .12 .77 .70
.15 .07 .09 .05 .31 .27
1.11 1.04 1.25 .92 3.40 3.07
.19 .19 .26 .16 .64 .54
.07 .. .. .. .07 .07
.99 .. .. .. .99 .99
S .05 .55 .33 .60 .38
.05 .06 .06 .04 .17 .15
.20 .12 .14 .10 .46 .42
.02 .03 .04 .03 .09 ,08
.02 .54 .38 .30 .94 .86
.22 .12 .17 .10 .51 .44
.28 .21 .28 .21
.14 .19 .24 .14 .57 .47
3.41 10.29 6.67 5.12 20.37 18.82
3.41 14.09 32.71 23.94 50.21 41*44
. 1 .., ,, _i -LL I ,1 .. -C-i....... -. I I I _- -'* _"_- -- -i *-~


aIncludes legal and audit, advertising, dues, donations, and bad debts.










TABLE 3.--Average costs per box of picking and hauling citrus fruits, 1957-58 season.
Fresh fruit packinghouses and processors


Picking ITotal: Picking and Hauling
Ora s Grape- Tonge ges rape- Tange-
Sfruit rines fruit rines


Number of operators
Avg. volume (boxes)


Labor:
Field foremen
Pickers
Loaders
Grove drivers
Highway drivers
Mechanics
Other labor
Total
Payroll taxes, insurance
Total labor
Other Costs:
Gasoline, oil, grease
Repairs
Licenses and taxes
Depreciation
Insurance
Salaries-management
Salaries-office
Supplies and shop exp.
Ofc. supplies and exp.
Telephone and telegraph
Equipment rental
Travel and auto expense
Foreign labor expense
Miscellaneous expense
Total other costs
Total Costs


20 23
667,097 499,715


23 21
157,897 25,552 ..


0. .


Cost Per Box (cents)


..
.


2.59
.09
.09.
2.77
.16
2.93


1.69
1,83
.47
1.62
.25
.35
.14
.05
.01
.06
.42
.04
.11
.11


2.43
18.76
3.14
1.51
0
.03
.61
26.48
1.14
27.62


.66
1.42
.13
.87
.08
.68
.52
.17
.01
.08
.35
.31
.47
.19


7.04 5.94


1.70
13.04
2.93
1.02
9
.02
.44
19.15
.87
20.02


.56
1.31
.08
.47
.05
.44
.33
.12
.01
.04
I -
.17
27
.25
.13
4.13


4.45
50.12
3.26
3.11
.*

.96
61.90
2.64


2.43
18.76
3.14
1.51
2.59
.12
.70
29.25
1.30


64.54 30.55


.68
1.38
.30
1.61
.17
1.37
1.37
.43
.03
.19
1.09
.85
1.29
.23


2.35
3.25
.60
2.49
.33
1.03
.66
.22
.02
.14
.77
.35
.47
.30


10.99 12.98


1.70
13.04
2.93
1.02
2.59
.11
.53
21.92
1.03
22.95


2.25
3.14
.55
2.09
.30
.79
.47
.17
.02
.10
.59
.21
.25
.24
11.17


4.45
50.12
3.26
3.11
2.59
.09
1.05
64.67
2.EO
67,i7


2.37
3.21
.77
3.23
.42
1.72
1.51
.48
.04
.25
1.51
.89
1.29
.34
18.03


9,97 33.56 24.15 75.53 43.53 34.12 85,50
.... -.-.. -- ..... --- ."T--' --


alncludes lights, water, legal and audit, advertising, dues and subscriptions,
donations, and bad debts.


-,,,, :- ',J--' ',


I


I


_ ,__. __ __










The cost of buying and selling citrus fruits for 1957-58 averaged 3.41 cents

per box for nine dealers (Table 2). The average volume per firm was 546,866 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 3. Some of the packers did have fruit pro-

curement costs, however.

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

highway 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.

Picking costs as shown in Tables 2 and 3 include all amounts paid for direct

labor far picking and delivery 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 10 citrus dealers picking oranges averaged 32.71 cents

per box, and for nine dealers picking grapefruit averaged 23.94 cents (Table 2). Only

one of these operators picked tangerines with his own crew, and these costs are omitted.

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

item of cost in picking fruit, being approximately 80 percent of the total for oranges

and 79 percent for grapefruit.

For 23 fresh fruit packinghouses and processors, which operated their own crews,

total picking costs for oranges was 33.56 cents per box, and for grapefruit 24.15 cents

(Table 3). Total picking costs for tangerines averaged 75.53 cents per box. As with

the citrus dealers, the principal items of picking costs of the packers 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

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

operation and none allocated to picking and hauling.

Hauling.--This operation refers to hauling fruit from the roadside to the pro-

cessing plant or fresh fruit packinghouse. It includes also 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. Hauling does not include the use of

trucks in the grove, this being considered a part of the picking and loading operation.

Hauling costs for eight citrus dealers with an average volume of 811,240 boxes

were 14.09 cents per box for 1957-58 (Table 2). This is a composite cost for all kinds









of fruit hauled. Twenty packinghouses operating their own trucks had an average cost

of 9.97 cents per box (Table 3). The average volume for these packinghouses was

667,097 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.

Most operators stated that hauling costs are about equal for oranges and grape-

fruit, but higher for tangerines because of the lighter loading required.

Picking and hauling costs.--The last two columns of Table 2 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 50.21 cents

per box and grapefruit 41.44 cents.

For fresh fruit packinghouses, the last section of Table 3 shows the combined

costs of picking and hauling each type of fruit for 1957-58. Since packinghouses do not

normally have buying and selling costs for unpacked fruit, this section of Table 3 is not

entirely comparable with the last section of Table 2.

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 2 or.3 because of the

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

picking for 1957-58 cost 32.2 cents per box, and contracted hauling averaged 9.93 cents,

but the kind of fruit is unknown.










Picking costs in 1957-58 were somewhat higher for both dealers and packing-

houses than in the preceding seasons. Hauling costs were sharply higher in 1957-58,

especially for the citrus dealers where an average increase of 32 percent was shown.

Other operating costs increased more than labor.


Variation in Cost Among Firms

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

variations in total costs for picking and hauling in 1957-58 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. In each volume group there is a wide range of

costs for both picking fruit and for hauling, indicating the influence of factors other

than volume. For hauling, the average distance hauled and the idle capacity of the

equipment owned doubtless affected the over-all 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

considerable 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 cf 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 10 citrus dealers and 23 packinghouses or processors

varied from 23.3 cents to 47.4 cents per box for oranges, and from 19.7 cents to 37.4

cents per box for grapefruit. The range in cost for picking tangerines was from 51.9 cents

to $1.09 per box for 22 firms (Table 4).

Hauling costs for seven citrus dealers and 20 packinghouses or processors varied

from 5.0 cents to 16.5 cents per box (Table 5).

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

26 firms, both dealers and packers, ranged from 31.1 cents to 53.1 cents per box for

oranges and averaged 48.0 cents. The modal group of 14 firms had costs between

39.3 cents and 48.7 cents for oranges. Picking and hauling costs for grapefruit for

25 firms varied from 26.9 cents to 42.5 cents per box, averaging 38.8 cents. The modal

group of 13 firms had costs between 31.2 cents and 39.1 cents per box. Picking and

hauling tangerines varied from 56.8 cents to $1 .20 per box, and averaged 90.2 cents

for 19 firms. Nine of these firms had costs between 75.4 cents and 88.9 cents per box.


Comparison of 1957-58 Costs with Previous Seasons

Total picking costs for 1957-58 wera higher for all firms as a group than the

averages of preceding seasons (Table 7). Citrus dealers had about the same costs for

picking grapefruit as the preceding year. Hauling costs were significantly higher for

both groups of firms in 1957-58 than in the preceding year.








11


TABLE 4,--Variation in total cost per box for 33 firms for picking oranges, 32 firms
picking grapefruit, and 22 firms picking tangerines, 1957-58 season.
Citrus dealers and packers

Cost per box Oranges Grapefruit Tangerines


(cents)


Number of firms


Under 21
21 23.9
24- 26.9
27- 29.9
30- 32.9
33 35,9
36-38.9
39- 41.9
42 44.9
45 -47.9

Under 60
60 64.9
65-69.9
70- 74.9
75-79.9
80- 84.9
85- 89.9


90 and over

Total number of firms

Average Cost Per Box (cents)


Range in Costs (cents)


33 32 22

33.3 24.1 75.5

23.3-47.4 19.7-37.4 51.9-109.7









TABLE 5.--Variation in total costs per box for hauling citrus
fruit from grove to plant, 27 firms, 1957-58 season.
Citrus dealers and packers
, i .I l ,i i fl'" i' i l l r- n-l


Cost per box


Number of firms


(cents)
Under 6
6- 7.9
8- 9.9
10- 11.9
12- 13.9
14 and over
Total number of firms
Average Cost Per Box (cents)
Range in Costs (cents)


TABLE 6.--Variation in total cost per box for picking and hauling citrus,
Citrus dealers and packers


1957-58 season.a


Cost per box Oranges Grapefrut Tangerines
(cents) Number of firms
25- 29.9 .. 4
30- 34.9 2 9 ..
35-39.9 8 8
40- 44.9 4 3
45-49.9 8 1
50- 54.9 3
55-59.9 1 .. 1
60- 64.9 .. 1
65-69.9 .. ..
70 74.9 .. .. 3
75- 79.9 .. .. I
80- 84.9 .. .. 3
85- 89.9 .. .. 6
90-94.9 .. .. 1
95 and over .. .. 3
Total number of firms 26 25 19
Average Cost Per Box (cents) 48.0 38.8 90.2
Range in Costs (cents) 31.1-53.1 26.9-42.5 56.8-120.3

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


5
5
27

11.3
5.0-16.5


- -


---











TABLE 7.--Total costs per box for buying and selling, picking and hauling citrus fruits,
eight seasons.


Picking All operations: Buying,
No. Buying selling, picking, hauling,
Season of and Hauling ..-
firms selling Oranges Grape- Tang- Oranges Grape- Tange-
fruit rines fruit rines
------------------------ Cents Per Box--------------------
Citrus Dealers


28.36
28,33
27.82
29.83
28.89
30.46
29.65
32.71


18.62
20.41
21.12
19.73
19.58
21.69
20.94
23.94


56.93
53.06
50.07
62.14
63.25
69.34
75.40
. a 0


42.51
41.89
40.47
42.07
39.72
44.21
42,69
50.21


32.77
33.97
33.77
31.97
30.41
35.44
33.98
41.44


71.08
66.62
62.72
74.38
74.08
83.09
88.44
.. *


Fresh Fruit Packers and Processors


28.53
29.77
28.41
28.94
30.53
32.04
33.56


28.42
29.12
28.87
28.93
30.52
31.36
33.30


19.23
22.24
20.70
21.12
21.74
24.17
24.15


62.59
59.78
60.81
64.78
66.33
73.92
75.53


Total All Firms


1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58


1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58


1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58


3.84
3.37
3.02
2.74
2.36
2.71
2.39
3.41


a
a
a
a
a
a
a


3.37b
3.02b
2.74b
2.36b
2.71b
2.39b1
3.41 b


37.77a
39.52a
38.08a
38.78a
39.350
40.76a
43.53a


41.60
41.85
41.22
40.67
42.70
43.02
48.02


28.470 71.830
31.990 69.53a
30.37a 70.48a
30.960 74.62a
30.56' 75.15
32.89a 82.640
34.120 85.500


10.31
10.19
9.63
9.50
8.47
11.04
10.65
14.09


9.24
9.75
9.67
9.84
8.82
8.72
9.97


9.81
9.71
9.61
9.38
9.47
9.27
11.31


75.11
72.35
73.21
76.46
78.57
85.62
90.25


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.
Average cost for citrus dealers.


19.51
21.98
20.58
20,91
21.73
23.46
24.09


61.93
59.62
60.86
64.72
66.39
73.96
75.53


32.69
34.71
32.93
32.65
33.91
35.12
38.81










Some 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.


Explanatory Notes

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

clarify some classifications.

Labor cost was 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 to 13 cents per box for picking grape-

fruit, 45 to 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

eliminated the loaders and made 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.

Payroll taxes and workmen' s compensation insurance 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 was 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 was the amount paid for the use of borrowed capital. No charge for use of

the owner's capital was included in Tables 2 or 3. If interest at 5 percent were included

on the book value of the operator's capital as shown in Table 1, it would amount to

0.35 cents per box picked and hauled for the 23 firms from whom capital investment was

obtained.

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

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





16

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

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

agement. If only the paid management costs had been included, the per-box costs of

management 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 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 included picker's tickets, and various supplies and shop

tools and materials not easily classified with some other expense.

Office supplies and expense included stationery, postage, depreciation, 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, and shop.

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. This group is made up of advertising,

public relations expense, dues, subscriptions, donations, driver's expense accounts,

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