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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: 1958
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: UF00027604:00013
 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
    Costs of picking and hauling, 1958-59
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
    Variation in cost among firms
        Page 8
        Page 9
        Page 10
        Page 11
    Comparison of 1958-59 costs with previous seasons
        Page 12
    Explanatory notes
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
    Other mimeographed publications available on citrus costs
        Page 17
Full Text

Agricultural Economics Mimeo Report No. 60-9


COSTS OF PICKING AND HAULING


FLORIDA CITRUS FRUITS


1958-59 SEASON




by
A. H. Spurlock
Agricultural Economist


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



.-' ._ ':'.

Department of Agricultural comics
Florida Agricultural Experim f6I',onl I
Gainesville, Flori


February, 1960











COSTS OF PICKING AND HAULING FLORIDA
CITRUS FRUITS, 1958-59 SEASON


CONTENTS
Page

Introduction ...........................***............ 1

Costs of Picking and Hauling, 1958-59.......,......... 2

Variation in Cost Among Firms ........................ 8

Comparison of 1958-59 Costs with Previous Seasons ..w.... 11

Explanatory Notes ....t.......... ................ .* 11



Introduction

This is the ninth 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 1958-59

season were summarized for 32 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. Nine of the firms furnishing data were citrus dealers

specializing in the procurement, sale, and delivery of fruit to the processing plant and 23 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.











COSTS OF PICKING AND HAULING FLORIDA
CITRUS FRUITS, 1958-59 SEASON


CONTENTS
Page

Introduction ...........................***............ 1

Costs of Picking and Hauling, 1958-59.......,......... 2

Variation in Cost Among Firms ........................ 8

Comparison of 1958-59 Costs with Previous Seasons ..w.... 11

Explanatory Notes ....t.......... ................ .* 11



Introduction

This is the ninth 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 1958-59

season were summarized for 32 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. Nine of the firms furnishing data were citrus dealers

specializing in the procurement, sale, and delivery of fruit to the processing plant and 23 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.











The number of firms included by location was Polk County, 11; 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 among firms. Only six firms had less

than 200, 000 boxes, and nine firms had more than 1,000,000 boxes each. The average

volume for the 32 firms was 954,000 boxes.


Costs of Picking and Hauling, 1958-59

The average costs per box for picking and hauling citrus fruit for the 1958-59 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 picking and

hauling is perhaps not as clear as it once was. Both groups commonly pull oranges and grape-

fruit 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 arrange-

ments 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, or to perform one or more services in

the combined operation. They may also buy and sell fruit which is picked and delivered-in to

their place of business.








TABLE 1 .--Average costs per box for picking and hauling citrus fruits, 1958-59 Season.
Citrus dealers specializing in buying and selling, picking and hauling


Number of operators
Average volume (boxes)

Labor:
Field foremen
Pickers
Loaders
Grove drivers
Highway drivers
Mechanics
Other labor
Total
Payro 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 expense
Total other costs
Total Costs


Picking All operations: Buying,
Selling, picking, hauling


rape- Oranges
ruit


Grape-
fruit


v V I I I0
555,214 968,977 651,943 146,536 .. ..
Cost Per Box (cents)

2.19 1.75 2.19 1.75
.. 18.22 12.31 18.22 12.31
.. 2.31 2.15 2.31 2.15
1.30 .89 1.30 .89
2.71 .. .. 2.71 2.71
.32 .18 .17 .50 .49
.05 .29 .73 .44 1.07 .78
.05 3.32 24.93 17.71 28.30 21.08
.. .20 1.23 .86 1.43 1.06
.05 3.52 26.16 18.57 29.73 22.14

.05 2.24 .63 .59 2.92 2.88
.06 2.08 1.11 .91 3.25 3.05
.03 .63 .17 .11 .83 .77
.10 2.43 .97 .68 3.50 3.21
.02 .55 .16 .09 .73 .66
.16 .06 .07 .05 .29 .27
1.02 .93 .99 .55 2.94 2.50
.21 .27 .32 .18 .80 .66
.09 .. .. .. .09 .09
1.01 .. .... 1.01 1.01
.05 .43 .23 .48 .28
.09 .08 .10 .06 .27 .23
.23 .11 .13 .09 .47 .43
.03 .04 .04 .02 .11 .09
.03 .20 .08 .06 .31 .29
.27 .18 .20 .12 .65 .57
S .38 .22 .38 .22
.13 .27 .31 .21 .71 .61
3.53 10.12 6.09 4.17 19.74 17.82
3.58 13.64 32.25 22.74 49.47 39.96
I i : I i i I I1 ,i I I t I i T


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


I I I I


ii i ll I I qi =







TABLE 2.--Average costs per box of picking and hauling citrus fruits, 1958-59 season.
Fresh fruit packinghouses and processors


Number of o erators 2 0


Average 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


0. .0 .*
1,050,241 530,511 205,795 53,417 .. ..
Cost Per Box (cents)

2.22 1.46 3.76 2.22 1.46 3.76
.. 19.02 13.58 51.57 19.02 13.58 51.57
3.00 2.72 2.97 3.00 2.72 2.97
1.53 1.01 2.94 1.53 1.01 2.94
2.82 .. .. .. 2.82 2.82 2.82
.46 .37 .37 .49 .83 .83 .95
.01 .18 .16 .23 .19 .17 .24
3.29 26.32 19.30 61,96 29.61 22.59 65.25
.19 1,20 .89 2.81 1.39 1.08 3.00
3,48 27.52 20.19 64.77 31.00 23.67 68.25

1.76 .60 .55 .61 2.36 2.31 2.37
1.56 1.52 1.38 1.50 3.08 2.94 3.06
.51 .13 .07 .25 .64 .58 .76
1.30 .94 .49 1.53 2.24 1.79 2.83
.23 .09 .05 .19 .32 .28 .42
.32 .84 .52 1.40 1.16 .84 1.72
.18 .42 .26 .82 .60 .44 1.00
.05 .18 .10 .24 .23 .15 .29
.03 .04 .02 .07 .07 .05 .10
.06 .09 .05 .19 .15 .11 .25
.96 .40 .28 1.08 1.36 1.24 2.04
.04 .25 .16 .61 .29 .20 .65
.50 .33 1.13 .50 .33 1.13
.21 .31 .12 .36 .52 .33 .57
7.21 6,31 4.38 9.98 13.52 11.59 17.19
10.69 33.83 24.57 74.75 44.52 35.26 85.44


0lncludes lights and water, legal and audit, advertising, dues and subscriptions,
donations, and bad debts.











The cost of buying and selling citrus fruits for 1958-59 averaged 3.58 cents per box

for eight dealers (Table 1). The average volume per firm was 555,214 boxes. The principal

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

costs, auto and travel expenses, and telephone and telegraph.

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

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

procurement 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 1 and 2, include all amounts paid for direct labor

for 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 dis-

tributed 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 nine citrus dealers picking oranges averaged 32.25 cents per

box, and for nine dealers picking grapefruit averaged 22.74 cents (Table 1). Only two of











these operators picked tangerines with their own crews, 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 81 percent of the total for both oranges and grapefruit.

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

total picking costs for oranges were 33.83 cents per box, and for grapefruit 24.57 cents

(Table 2). Total picking costs for tangerines averaged 74.75 cents per box. As with the

citrus dealers, the principal items of picking costs for the packers were labor, gas and oil,

repairs, licenses, insurance, depreciation, and rent of equipment. 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 processing

plant or fresh fruit packinghouse. It includes also the 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 968,977 boxes were

13,64 cents per box for 1958-59 (Table 1). This is a composite cost for all kinds of fruit

hauled. Twenty-one packinghouses or processors operating their own trucks had an average

cost of 10.69 cents per box (Table 2). The average volume for these firms was Ip50,241bexes..-











Hauling costs 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 grapefruit, but

higher for tangerines because of the lighter loading required.

Picking and hauling costs combined.--The last two columns of Table 1 show the com-

bined 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 49.47 cents per

box and grapefruit 39.96 cents.

For fresh fruit packinghouses and processors, the last section of Table 2 shows the com-

bined costs of picking and hauling each type of fruit for 1958-59, 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 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 or 2 because of the difficulty of deter-

mining the exact service performed and the kind of fruit. Contracted picking for 1958-59

cost 38.2 cents per box, and contracted hauling averaged 9.90 cents, but the kind of fruit

and particulars of the operation are unknown.

Picking costs and hauling costs in 1958-59 were somewhat higher for packinghouses

and slightly lower for dealers than in the preceding season. However, the combined services

of picking and hauling were little changed from 1957-58.










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 1958-59 are shown in Tables 3, 4, and 5

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 dis-

tance 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 clrge 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 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 9 citrus dealers and 22 packinghouses or processors varied from

26.2 cents to 45.5 cents per box for oranges, and from 19.1 cents to 34.7 cents per box for

grapefruit. The range in cost for picking tangerines was from 59,4 cents to $1,02 per box for

22 firms (Table 3).




Table 8. -- PER ACRE AND PER BOX COSTS, RETURNS, AND OTHER DATA
BY SEASONS FOR GROVES AVERAGING 10 YEARS OF AGE AND UNDER
(concluded)
1951-52 1952-53 1953-54 1954-55 1955-56 1956-57 1957-58
Number of grove records 24 20 T116 1- 15 1
Total acres of records 1763 1203 750 661 706 676 670
Average acres per grove 73 60 54 41 47 45 48
Average age 5 5 5 4 3 4 5
Number of trees per acre 62 65 60 62 60 60 59
Percent trees grapefruit 12.7 9.2 22.4 11.5 10.6 11.9 10.2
Boxes harvested per acre 77 45 91 44 17 ho0
Costs per acre:
Labor, power and equipment $ 47.90 $ 59.34 $ 60.19 $ 50.95 $ 44.32 $ 49.70 $ 52.91
Fertilizer materials 22.05 18.77 30.11 27.66 24.01 29.10 33.85
Spray and dust materials 6.11 3.54 6.31 4.64 4.18 5.02 10.47
State and county taxes 1.98 1.94 4.14 3.93 5.07 5.61 9.04
Miscellaneous 20.23 8.20 4.94 4.70 1.08 7.91 3.27
Total operating costs 98.27 91.79 105.69 91.88 78.66 97.34 109.54
Interest on grove valuation @ 6% 29.55 22.50 43.37 33.54 27.68 33.99 36.98
Total cost without owner supervision 127.82 1.29 149.06 125.42 106.34 131.33 146.52
Returns per acre:
Returns from fruit 66.97 62.84 131.07 50.15 26.65 40.75 *
Net returns -60.85 -51.45 -17.99 -75.27 -79.69 -90.58
Returns above operating costs -31.30 -28.95 25.38 -41.73 -52.01 -56.59
Costs per box:
Labor, power and equipment .62 1.32 .66 1.16 2.61 1.24
Fertilizer materials .. .29 .42 .33 .63 1.41 .73
Spray and dust materials .08 .08 .07 .10 .25 .12
State and county taxes .03 .0o .05 .09 .30 .14
Miscellaneous .26 .18 .05 .11 .06 .20
Total operating costs 1.28 2.04 1.16 2.09 4.63 2.43
Interest on grove valuation @ 6% .38 .50 .48 .76 1.63 .85
Total cost without owner supervision- 1.66 2.54 1.64 2.85 6.26 3.28
Returns per box:
Returns from fruit .87 1.40 1.44 1.14 1.57 1.02
Net returns -.79 -1.1 -.20 -1.71 -4.69 -2.26
Returns above operating costs -.!1 -.64 .28 -.95 -3.06 -1.41
Returns not yet available








TABLE 4.--Voriation in total cost per box for hauling citrus
fruit from grove to plant, 29 firms, 1958-59 season.
Citrus dealers, packers, and processors


Cost per box


Number of firms


(cents)


7- 8,9
9-10.9
11 12.9
13- 14.9
15-16.9
17 and over
Total number of firms

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


TABLE 5.--Variation in


total cost per box for picking and hauling citrus,
Citrus dealers, packers, and processors


1958-59 season.a


Cost per box Oranges Grapefruit Tangerines

(cents) Number of firms
25-29.9 .. 6
30-34.9 2 8
35-39.9 8 1
40- 44.9 4 10
45-49.9 2
50- 54.9 7 2
55- 59.9 2 .
60 64.9 2 1
65 69.9 .. .. 2
70-74.9 1 .. 3
75- 79.9 .. 1
80- 84.9 .. .. 2
85- 89.9 .. .. 3
90 94.9 .. 2
95 -99.9 .. .. 1
1.00 and over .. 5
Total number of firms 28 28 19
Range in Costs (cents) 32.6-72.5 26.2-61.9 66,8-129.1

aCitrus dealers had an additional cost of buying and selling fruit averaging 3.6 cents
per box which is not included above.


8
8
2

7
4
29

11.5
7.0-27,2




Table 11, PER ACRE AND PER BOX COSTS, ..URNS, AND OTHER DATA
BY SEASONS FOR GROVES AVERAGING OVER 10 YEARS OF AGE
(concluded)
1951-52 1952-53 1953-$5 1954-55 1955-56 1956-57 1957-58
Number of grove records 195 198 179 170 158 161 169
Total acres of records 6819 6969 6838 6513 6644 6729 6955
Average acres per grove 35 35 38 38 42 42 41
Average age 29 29 30 31 32 33 33
Number of trees per acre 61 61 61 61 61 61 61
Percent trees grapefruit 30.0 29.7 28,6 30.3 27.5 28.0 27.0
Boxes harvested per acre 355 344 4h7 356 292 283 4--
Costs per acre:
Labor, power and equipment $ 80.16 $ 81.01 $ 84.64 $ 91.31. $100.L $116.14 $108.68
Fertilizer materials 61.65 55.89 60.61 66.h3 59.81 55.80 61.56
Spray and dust materials 18.34, 17.63 19.61 23.36 20.10 17.75 20.55
State and county tayes 10.11 11.04 11.34 11.72 12.74 11.90 13.41
Miscellaneous 7.12 4.71 7.80 13.61 21.88 2.80 13.36
Total operating costs 177.38 170.28 184.00 206.43 214.97 204.39 217.56
Interest on grove valuation e 6% 61.45 61.07 62.91 65.62 65.82 67.75 68.09
Total cost without owner supervision 238.83 231.35 2L6.91 272.25 280.79 272.1L 285.65
Returns per acre:
Returns from fruit 238.83 325.74 323.98 321.45 328.86 322.36
Net returns .00 94.39 77.07 49.20 48.07 50.22
Returns above operating costs 61. 155.46 139.98 115.02 113.89 117.97
Costs per box:
Labor, power and equipment .23 .24 .19 .26 .35 .*1
Fertilizer materials .17 .16 .14 .19 .21 .20
Spray and dust materials .05 .05 .04 .06 .07 .06
State and county taxes .03 .03 .02 .03 .04 .04
Miscellaneous .02 .02 .02 .04 .07 .01
Total operating costs .50 .50 .41 .58 .74 .72
Interest on grove valuation @ 6% .17 .18 .14 .18 .22 .24
Total cost without owner supervision .67 .68 .55 .76 .96 .96
Returns per box:
Returns from fruit .67 .95 .72 .90 1.13 1.14
Net returns .00 .27 .17 .14 .17 .18
Returns above operating costs .17 .45 .31 .32 .39 .k2
** Returns not yet available











Hauling costs for 8 citrus dealers and 21 packinghouses or processors varied from

7.0 cents to 27.2 cents per box (Table 4).

For picking and hauling combined (but excluding buying and selling), costs for 28 firms,

both dealers and packers, ranged from 32.6 cents to 72.5 cents per box for oranges. The modal

group of 14 firms had costs between 38.3 cents and 51.8 cents. Picking and hauling costs for

grapefruit for 28 firms varied from 26,2 cents to 61.9 cents per box. The modal group of

14 firms had costs between 31.0 cents and 43.1 cents per box. Picking and hauling tangerines

varied from 66.8 cents to $1.29 per box for 19 firms, with costs for 9 firms between 75.9 cents

and 96.1 cents per box (Table 5).


Comparison of 1958-59 Costs with Previous Seasons

Total picking costs for 1958-59 were about the same for all firms as a group as the

averages of the preceding season (Table 6). Citrus dealers had slightly lower costs and pack-

inghouses and processors slightly higher costs for picking than in 1957-58.

Hauling costs for all firms were almost identical with the preceding season, Dealers

had a small decrease in cost per box and packers and processors a small increase.

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.











Hauling costs for 8 citrus dealers and 21 packinghouses or processors varied from

7.0 cents to 27.2 cents per box (Table 4).

For picking and hauling combined (but excluding buying and selling), costs for 28 firms,

both dealers and packers, ranged from 32.6 cents to 72.5 cents per box for oranges. The modal

group of 14 firms had costs between 38.3 cents and 51.8 cents. Picking and hauling costs for

grapefruit for 28 firms varied from 26,2 cents to 61.9 cents per box. The modal group of

14 firms had costs between 31.0 cents and 43.1 cents per box. Picking and hauling tangerines

varied from 66.8 cents to $1.29 per box for 19 firms, with costs for 9 firms between 75.9 cents

and 96.1 cents per box (Table 5).


Comparison of 1958-59 Costs with Previous Seasons

Total picking costs for 1958-59 were about the same for all firms as a group as the

averages of the preceding season (Table 6). Citrus dealers had slightly lower costs and pack-

inghouses and processors slightly higher costs for picking than in 1957-58.

Hauling costs for all firms were almost identical with the preceding season, Dealers

had a small decrease in cost per box and packers and processors a small increase.

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.








TABLE 6.--Total costs per box for buying and selling, picking and hauling citrus fruits,
nine seasons.


- ------------.--.---------Cents Per Box------------------------------

Citrus Dealers


28.36
28.33
27.82
29.83
28.89
30.46
29.65
32.71
32.25


18.62
20.41
21.12
19.73
19.58
21.69
20.94
23.94
22.74


56.93
53.06
50,07
62,14
63.25
69.34
75.40
ell
* IS
.. *


Fresh Fruit Packers and Processors


28.53
29.77
28.41
28.94
30.53
32.04
33.56
33.83


19.23
22.24
20.70
21.12
21.74
24.17
24.15
24.57


Total All Firms


28.42
29.12
28.87
28.93
30.52
31,36
33.30
33.30


19.51
21.98
20.58
20.91
21.73
23.46
24,09
24.16


1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59


1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59


42.51
41.89
40,47
42,07
39.72
44,21
42,69
50.21
49,47


37.77a
39.52a
38.08a
38,78a
39.350
40.760
43.530
44.520


41.60
41.85
41.22
40.67
42.70
43.02
48,02
48.34


32.77
33.97
33,77
31.97
30.41
35,44
33.98
41.44
39.96


71.08
66.62
62.72
74.38
74.08
83.09
88.44
0l0


28.47a 71.830
31.99" 69.53a
30.370 70.48a
30.96a 74.620
30.56a 75.15a
32.890 82.640
34,12a 85.500
35.26a 85.440


32.69
34.71
32.93
32,65
33.91
35.12
38.81
39.20


75.11
72.35
73.21
76.46
78.57
85.62
90.25
89.94


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
Average cost for citrus dealers,


3,84
3,37
3.02
2.74
2.36
2.71
2.39
3.41
3.58


10.31
10.19
9.63
9.50
8.47
11.04
10.65
14,09
13.64


62.59
59.78
60.81
64.78
66.33
73.92
75.53
74.75


61.93
59.62
60,86
64.72
66.39
73,96
75,53
74.90


9.24
9.75
9.67
9.84
8,82
8.72
9.97
10.69


9.81
9.71
9.61
9.38
9.47
9.27
11.31
11.46


1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59


3.37b
3.02b
2.74b
2.36b
2.71b
2.39b
3.41b
3.58b











Labor cost was the amount paid by operators to their own crews for the service indi-

cated. 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 grapefruit, 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 some 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, watchmen, yard and scalehouse 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 has been

made for use of the owner's capital that was included in Tables 1 or 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 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 and other materials for office use.

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, radio expense, and many unclassified items of expense.











OTHER MIMEOGRAPHED PUBLICATIONS AVAILABLE ON CITRUS COSTS
DEPARTMENT OF AGRICULTURAL ECONOMICS
FLORIDA AGRICULTURAL EXPERIMENT STATION
GAiNESVILLE, FLORIDA



1 Costs of Packing and Selling Florida Fresh Citrus Fruits, 1958-59 Season.

Agricultural Economics Mimeo Report No. 60-10, February, 1960.


2. Costs of Processing, Warehousing and Selling Florida Citrus Products,
1957-58 Season.

Agricultural Economics Mimeo Report No. 59-12, June, 1959.


3. The Use of Packing Labor in Florida Citrus Packinghouses,

Agricultural Economics Mimeo Report No. 57-8, June, 1957.


4. A Method of Allocating Citrus Packinghouse Costs,

Agricultural Economics Mimeo Report No. 58-1, July, 1957.


5. Twenty-six Years of Citrus Production Costs and Returns in Florida, 1931-1957.

Agricultural Extension Service Economic Series 59-5, August, 1959.





AHS: ms 2/60
Experiment Station; Ag. Ec. 1,250