<%BANNER%>
HIDE
 Title Page
 Main


FLAG UF



Costs of picking and hauling Florida citrus fruits
ALL VOLUMES CITATION SEARCH THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00027604/00014
 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: 1959
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: UF00027604:00014
 Related Items
Succeeded by: Estimated costs of picking and hauling Florida citrus fruits

Table of Contents
    Title Page
        Title page
    Main
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
Full Text
Agricultural Economics Mimeo Report No. 61-7


COSTS OF PICKING AND HAULING

FLORIDA CITRUS FRUITS

1959-60 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


FEBRUARY, 1961










COSTS OF PICKING AND HAULING FLORIDA
CITRUS FRUITS, 1959-60 SEASON


CONTENTS
Page

introduction....................................... 1

Costs of Picking and Hauling, 1959-60................ 2

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

Comparison of 1959-60 Costs with Previous Seasons ..... 12

Explanatory Notes ..* ............. .... ... .. .... 12




Introduction


This is the tenth 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 1959-60 season were summarized by type of

fruit for 33 firms. 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. Seven 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.

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 were Polk County, 12; Orange

County, 8; Lake County, 4; Pinellas County, 3; and one each in Hillsborough,

Pasco, Seminole, Hernando, Marion, and Hig;hlands Counties.

Total volume of fruit handled varied widely among firms. Only two firms

had less than 200,000 boxes, and ten firms had more than 1,000,000 boxes each.

The average volume for the 33 firms was 1,055,754 boxes.


Costs of Picking and Hauling, 1959-60


The average costs per box for picking and hauling citrus fruit for the 1959-60

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 ail firms were

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. Packinghouses often pick and handle 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.








TABLE 1 .--Average costs per box for picking and hauling citrus fruits, 1959-60 season.
Citrus dealers specializing in buying and selling, picking and hauling

n g Picking All Operations: Buying,
Item Huying ulng Soelling,PickingHauling
Item and Hauling -. -.-- --- s.a----a----
Selling Oranges Grap- Oranges Grape-
SI a fruit fruit


Number of operators
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
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 expansea
Total other costs
Total Costs


O I I I .. ..
722,714 865,109 678,533 132,519 .. ..
Cost Per Box (cents)

2.17 2.07 2.17 2,07
1.. .. 82 12.93 18.12 12.93
2.27 2.06 2.27 2.06
1.22 .85 1.22 .85
3.12 .. .. 3.12 3.12
.41 .24 .28 .65 .69
.04 .01 .86 .48 .91 .53
.04 3.54 24.88 18.67 28.46 22.25
.18 1.27 .95 1.45 1.13
.04 3.72 26.15 19.62 29.91 23.38


.04
.06
.03
.11
.01
.35
.96
.15
.72
.30
. 0
.05
.26
.02
*
.20
.04
.04


2.76
1.63
.66
2.29
.51
.02
1.11
.32
. 9
* .
.22
.09
.21
.04
.10
.32
.2
.21


.82
1.52
.16
1.22
.17
.02
1.26
.48
. .

.25
.10
.23
.03
.06
.33
.43
.42


.78
1.23
.10
.78
.10
.01
.64
.29
.
. 9
.14
.05
.14
.02
.03
.18
.22
.25


3.62
3.21
.85
3.62
.69
.39
3.33
.95
.72
.30
.47
.24
.70
.09
.16
.85
.43
.67


3.58
2.92
.79
3.18
.62
.38
2.71
.76
.72
.30
.36
.19
.61
.08
.13
.70
.22
.50


3.30 10.49 7.50 4.96 21.29 18.75
3.34 14.21 33.65 24.58 51.20 42.13


alncludes legal and audit, advertising, dues, donations, bad debts, radio.
* Less than .005 cent.







TABLE 2.--Average costs per box of picking and hauling citrus fruits, 1959-60 season.
Fresh fruit packinghouses and processors

Picking Total: Picking
and Hauling
Item Hauling ,.... andHaulin
Oranges Grape- Tange- Oranges Grape-Tange-
Sfruit rines frut rines
Number of operators 24 22 19 18 .. ..
Average volume (boxes) 1,118,042 645,932 187,683 37,306 .. ..
Cost Per Box (cents)
Labor:
Field foremen .. 2.46 1.64 4.13 2,46 1.64 4.13
Pickers .. 18.99 13.55 58.06 18.99 13.55 58.06
Loaders .. 2.97 2.82 3.46 2.97 2.82 3.46
Grove drivers .. 1.27 ,97 2.95 1.27 .97 2.95
Highway drivers 2.79 .. .. .. 2.79 2.79 2.79
Mechanics .44 .34 .30 .49 .78 .74 .93
Other labor .01 .39 .36 .39 .40 .37 .40
Total 3.24 26.42 19.64 69.48 29.66 22.88 72.72
Payroll taxes,insurance .19 1.25 .90 3.18 1.44 1.09 3.37
Total labor 3.43 27.67 20.54 72.66 31.10 23.97 76.09
Other Costs:
Gasoline, oil, grease 1.67 .68 .59 .72 2.35 2.26 2.39
Repairs 1.54 1.82 1.68 1.82 3.36 3.22 3.36
Licenses and taxes .48 .13 .09 .28 .61 .57 .76
Depreciation 1.21 .83 .45 1.23 2.04 1.66 2.44
Insurance .29 .10 .07 .19 .39 .36 .48
Salaries-management .37 .78 .48 1.06 1.15 .85 1.43
Salaries-office .16 .56 .36 1.47 .72 .52 1.63
Supplies and shop exp. .04 .17 .12 .33 .21 .16 .37
Ofc. supplies and exp. .03 .03 .02 .06 .06 .05 .09
Telephone and telegraph .06 .07 .04 .17 .13 .10 .23
Equipment rental 1.00 .41 .24 1.20 1.41 1.24 2.20
Travel and auto expense .05 .28 .15 .69 .33 .20 .74
Foreign labor expense .. .53 .35 1.36 .53 .35 1.36
Miscellaneous expensea .23 .28 .14 .33 .51 .37 .56
Total other costs 7.13 6.67 4.78 10.91 13.80 11.91 18.04
Total Costs 10.56 34.34 25.32 83.57 44.90 35.88 94.13


alncludes lights and water,
donations, and interest.


legal and audit, advertising, dues and subscriptions,










Buying and semling.-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, 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.

The cost of buying and selling citrus fruit for 1959-60 averaged 3.34 cents

per box for six dealers (Table 1). The average volume per firm was 722,714 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 and processors did have fruit procurement costs however.

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

highway truck, commonly termed "picking and loading." 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 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 seven citrus dealers picking oranges averaged

33.65 cents per box and for grapefruit, 24.58 cents (Table 1). Only two of these

operators picked tangerines with their own crews, and these costs were omitted.

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

largest item of cost in picking fruit, being approximately 78 percent of the total

for oranges and 80 percent for grapefruit.

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

22 firms had total picking costs for oranges of 34.34 cents per box, and 19 had

costs for grapefruit picking averaging 25.32 cents per box (Table 2). Total picking

costs for tangerines averaged 83.57 cents per box for 18 firms. 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, such as telephone, office expense, lights and water,

interest, management and office salaries, frequently 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 and the use

of bulk handling methods. 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 seven citrus dealers with an average volume of 865, 109

boxes were 14.21 cents per box for 1959-60 (Table 1). This is a composite cost

for all kinds of fruit hauled. Twenty-four packinghouses or processors had an

average hauling cost of 10.56 cents per box (Table 2). The average volume for

these firms was 1,118,042 boxes. Hauling costs per box appear to be somewhat

related to total volume hauled. The smallest operators had the highest costs, but

several large operators also had comparatively high costs. There appeared to be

no advantage in volume after about 700,000 boxes. However, hauling costs

perhaps are 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 in 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 51.20 cents per box and grapefruit 42.13 cents

for buying and selling, picking and hauling.

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

shows the combined costs of picking and hauling each type of fruit for 1959-60.

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 determining the exact service performed and the kind

of fruit.

Combined picking and hauling costs in 1959-60 were somewhat higher for

both groups of firms than in the preceding season. Cost increases were shown for

each service, except hauling by packinghouses and processors, and applied both

to labor and to other costs.


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 1959-60 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 relation-

ship between volume of fruit handled and level of costs. 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.

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 7 citrus dealers and 22 packinghouses or processors

varied from 25.0 cents to 43.4 cents per box for oranges, and from 19.1 cents to

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

from 57.5 cents to $1.00 per box for 20 firms (Table 3).

Hauling costs for 7 citrus dealers and 24 packinghouses or processors varied

from 6.7 cents to 21.3 cents per box (Table 4).

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

for both dealers and packers ranged from 32.8 cents to 62.7 cents per box for

oranges. The modal group of 14 firms had costs between 39.6 cents and 50.6 cents.








10


Picking and hauling costs for grapefruit for 24 firms varied from 26.3 cents to

52.6 cents per box. The modal group of 12 firms had costs between 33.3 cents and

40.1 cents per box. Picking and hauling tangerines varied from 66.5 cents to

$1.14 per box for 18 firms with costs for 9 firms in the modal group between

85.8 cents and $ 1.00 per box (Table 5).


TABLE 3.-Variation in total cost per box for 29 firms for picking oranges, 26 firms
picking grapefruit, and 20 firms picking tangerines, 1959-60 season.
Citrus dealers, packers, and processors


Cost Per Box Oranges Grapefruit Tangerines

(Cents) Number of Firms

Under 21 .. 4
21-23.9 .. 6
24- 26.9 2 8
27- 29.9 6 5
30- 32.9 7 2
33- 35.9 7 1 ..
36-38.9 4 .. ..
39-41.9 2 .. ..
42-44.9 1 ..


Under 60
60-64.9
65- 69.9
70- 74.9
75- 79.9
80- 84.9
85- 89.9
90- 94.9
95 and over
Total number of firms

Average Cost Per Box (cents)

Range in Costs (cents)


S*
*
.,
.*
.. *
*.
.
.*
*.
29
29


34.2

25.0- 43.4


*

a.
S.
.
9.


26

25.2

19.1 33.3


2
I
3
6
3
2
20

83.7

57.5- 100.2


. 'ILl


~_111_11-~.~~~-.----. ~ ~._. ..__.~~_~ ~;--~-r__-- -r-_ --_~


-- --







TABLE 4.--Variation in total cost per box for hauling citrus
fruit from grove to plant, 31 firms, 1959-60 season.
Citrus dealers, packers, and processors


Cost Per Box
(cents)


,5-
7- 8.9................. .... .. .

11 12.9......*......................
13- 14.9............................
15- 16.9............................
17and over..........................
Average Cost Per Box (cents)

Range in Costs (cents)


Number of Firms


2
9
8
4
2
1
5
11.2

6.7- 21.3


TABLE 5.--Variation in total cost per box for picking and hauling citrus,
1959-60 season.0
Citrus dealers, packers, and processors

Cost Per Box Oranges Grapefruit Tangerines
(Cents) Number of Firms
25-29.9 .. 5
30-34.9 3 7 ..
35-39.9 4 5 ..
40-44.9 9 4 ..
45-49.9 3 1
50- 54.9 3 2
55- 59.9 3
60-64.9 2
65-69.9 .. .. I
70- 74.9 .. ..
75-79.9 .. .. 2
80- 84.9 .. .. 1
85- 89.9 .. .. 1
90- 94.9 .. .. 2
95- 99.9 .. .. 6
1.00 and over .. .. 5
Total number of firms 27 24 18
Range in Costs (cents) 32.8 62.7 26.3 52.6 66.5- 113.7

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










Comparison of 1959-60 Costs with Previous Seasons


Total picking costs for 1959-60 were higher for both groups of firms than

the averages of the preceding season (Table 6). Costs for picking oranges and

grapefruit increased slightly, and tangerine picking costs were about 11 percent

higher.

Hauling costs for dealers showed an increase over the preceding season

and packinghouses and processors had a slight decrease.

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 ser-

vice indicated. Field foremen were sometimes paid a weekly salary, sometimes a

per-box rate, and sometimes a combination of both. 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, 50 to 65 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







TABLE 6.--Average cost per box for buying and selling, picking and hauling citrus
fruits, ten seasons.


No. Buying Picking All Operations: Buying,
Season of and Haulin jSeling, Picking,Hauling
Firms Sellind Hu Grape Tang... Grape- Tange-
Firms Selling Orange fruit rines Oranges fruit rines

--------------------CentsPer Box-Cet-- -- ------
Citrus Dealers


10.31
10.19
9.63
9,50
8.47
11.04
10.65
14.09
13.64
14.21


28.36
28.33
27.82
29.83
28.89
30.46
29.65
32.71
32.25
33,,65


18.62
20.41
21.12
19.73
19.58
21.69
20.94
23.94
22.74
24~58


56.93
53.06
50.07
62.14
63.25
69.34
75.40
..
* *


42.51
41.89
40.47
42.07
39.72
44.21
42.69
50.21
49.47
51,20


32.77
33.97
33.77
31.97
30.41
35.44
33.98
41.44
39.96
42.13


71.08
66.62
62.72
74.38
74.08
83.09
88.44


Fresh Fruit Packers and Processors


1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60


1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60

1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60


3.84
3.37
3.02
2.74
2.36
2.71
2.39
3.41
3.58
3.34

a
o
a
a
a
a
a
a
a

3.37b
3.02b
2.74b
2.36b
2.71b
2.39b
3.41b
3.58b
3.34b


19.23
22.24
20.70
21.12
21 .74
24.17
24.15
24.57
25.32


62.59
59,78
60.81
64.78
66.33
73.92
75.53
74.75
83.57


37.77 28.470 71.830
39.520 31.99 69.530
38.08a 30.37' 70.480
38.78a 30.960 74.620
39.35' 30.56a 75.15a
40.76a 32.89a 82.64a
43.530 34.12a 85.50a
44.520 35.260 85.44a
44.90a 35.883 94.130


Total All Firms


28.42
29.12
28.87
28.93
30.52
31.36
33.30
33.30
34.17


19.51
21.98
20.58
20.91
21.73
23.46
24.09
24.16
25.16


61.93
59.62
60.86
64.72
66.39
73.96
75.53
74.90
83.68


41.60
41.85
41.22
40.67
42.70
43.02
48.02
48.34
48.74


32.69
34.71
32.93
32.65
33.91
35.12
38.81
39.20
39.73


75.11
72.35
73.21
76.46
78.57
85.62
90.25
89.94
98.25


oThe 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.


9.24
9.75
9.67
9.84
8.82
8.72
9.97
10.69
10.56

9.81
9.71
9.61
9.38
9.47
9.27
11.31
11.46
11.23


28.53
29.77
28.41
28.94
30.53
32.04
33.56
33.83
34.34










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 for the whole operation.

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 high-

way 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, or semi-trailer 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 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 buyers' cars.









Repairs covered all automotive equipment and loading machines, buildings,

and in addition field box and ladder repair and replacement.

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

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

Depreciation was the allowance to cover the estimated wear and tear on

the physical assets used in the business.

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. In some partnerships and individual proprietorships there was

no paid management--this function being performed by the entrepreneurs. In

these cases an estimated amount has been added to cover the value of the operator's

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 slightly 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 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 STATIONS
GAINESVILLE, FLORIDA


1. Costs of Packing and Selling Florida fresh Citrus Fruits, 1959-60 Season.

Agricultural Economics MimeooReport No. 61-8, February, 1961.


2. Costs of Processing, Warehousing and Selling Florida Citrus Products,
1958-59 Season.

Agricultural Economics Mimeo Report No, 60-12, June, 1960.


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.


6. Twenty-seven Years of Orange Production Costs and Returns in Florida,
1931-1958.

Agricultural Extension Service Economic Series 60-2, March, 1960.


AHS: ms 1/61
Experiment Stations; Ag. Ec. 1,250