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Costs of picking and hauling Florida citrus fruits
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Permanent Link: http://ufdc.ufl.edu/UF00027604/00019
 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: 1964
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: UF00027604:00019
 Related Items
Succeeded by: Estimated costs of picking and hauling Florida citrus fruits

Table of Contents
    Front Cover
        Front cover
    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
Full Text





a


A. H. Spurlock
Agricultural Economist
Department of Agricultural Economics
Florida Agricultural Experiment Stations
Gainesville, Florida


tr1


Agricultural Economics
Mimeo Report EC 66-7
March 1966 /



C STS OF PICKING AND HAULING
FLORIDA
CITRUS FRUITS
1964-65 SEASON









COSTS OF PICKING AND HAULING FLORIDA
CITRUS FRUITS, 1964-65 SEASON


INTRODUCTION

This is the 15th annual summary of costs of picking and

hauling citrus fruits, prepared from a sample of citrus dealers,

packinghouses, and processors. Other handling and marketing

costs in the citrus industry are released in separate publica-

tions as indicated inside the back cover.

Costs of handling citrus fruits from the tree to the

packinghouse or processing plant for the 1964-65 season were

summarized by type of fruit for 29 firms. However, several

firms did not supply costs for both the picking and hauling

operation. Eight of the firms furnishing data were citrus

dealers or intermediate handlers specializing in the procure-

ment, sale and delivery of fruit to the processing plant, and

21 were packers of fresh fruit or processors. Many of the

firms also contracted with other operators to pick and haul

some of their volume. Costs for contract crews are not

included herein, since it is often difficult to determine the

exact service performed and the kind of fruit handled.

The firms included were located mostly in the intensive

citrus counties of the interior part of the state. Only one

firm was on the East Coast and two were on the West Coast.

Polk, Orange and Lake counties included 23 of the 29 firms.

However, large operators frequently cover a wide area in

harvesting and hauling citrus.

1 -









2 -

Total volume of fruit handled varied widely among firms.

Only one firm had less than 100,000 boxes; seven firms picked more

than 1,000,000 boxes, and 10 firms hauled more than 1,000,000

boxes each. The average volume for the 26 firms picking fruit was

950,567 boxes, and for 28 firms hauling fruit 1,171,126 boxes.

COSTS OF PICKING AND HAULING, 1964-65

The average costs per box for picking and hauling citrus

fruit for the 1964-65 season from the tree to the processor, or

packinghouse, are shown in Table 1. These costs are weighted

averages; that is, the total money costs of all firms were divided

by the total number of boxes handled. The averages necessarily

include several methods of harvesting and hauling fruit, as they

are frequently mixed for a single operator. Handling methods

include the field-box system, pallet-box systems, bulk systems and

various modifications of each.

Costs for fruit procurement and sale are omitted insofar as

they can be identified as buyers' salaries, commissions and

expenses. Certain costs, partly for buying and selling fruit, such

as auto expense and telephone, are difficult to segregate and may

still be included to some extent for a few firms.

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

and into the highway truck, commonly termed "picking and loading"

or "roadsiding." The principal costs of performing this service are

labor, fuel, repairs, taxes, licenses, insurance and depreciation for

the grove trucks, crew trucks, tractors, loading machines and other

picking equipment, and administrative expense.









-3-


Table 1.-- Average


Costs Per Box of Picking and Hauling Citrus Fruits, Fresh
Packing and Processing, 1964-65 Season


: Hauling : Pc: Total Picking
Item Roadside : : and Hauling
: to Or es Grape- Tange-: Grape- Tange-
: Plant fruit rines : esfruit rines


Number of operators

Average volume
(Boxes)


Labor:
Field foremen
Pickers
Loaders and drivers
Highway drivers
Other labor
Total
Payroll taxes,
insurance
Total Labor

Other Costs:
Fuel and oil
Repairs, maintenance
Licenses, taxes
Depreciation
Insurance
Supplies and shop
Equipment rental
Foreign labor
Miscellaneous
Administrative
Total Other Costs

Total Costs


28 26 25 20 -

1,171,126 632,433 279,647 56,685 -


Cost Per Box (cents)

0.07 3.35 2.70 5.72 3.42 2.77 5.79
26.38 18.78 73.57 26.38 18.78 73.57
3.79 4.63 7.18 3.79 4.63 7.18
2.99 2.99 2.99 2.99
.38 .50 .27 .38 .88 .65 .76
3.44 34.02 26.38 86.85 37.46 29.82 90.29

0.27 2.00 1.52 4.69 2.27 1.79 4.96
3.71 36.02 27.90 91.54 '39.73 31.61 95.25


2.01 0.73 0.72 0.64 2.74 2.73 2.65
2.13 2.46 2.09 2.76 4.59 4.22 4.89
'.70 .15 .08 .25 .85 .78 .95
1.62 .77 .40 1.43 2.39 2.02 3.05
.37 .13 .08 .23 .50 .45 .60
.05 .12 -.12 .19 .17 .17 .24
.18 .33 .14 .49 .51 .32 .67
.82 .45 1.60 .82 .45 1.60
.06 .08 .04 .11 .14 .10 .17
..83 1.82 1.06 3.39 2.65 1.89 4.22
7.95 7.41 5.18 11.09 15.36 13.13 19.04


11.66


43.43 33.08 102.63 55.09


44.74 114.29


a Includes management and office salaries, office supplies, auto, travel and
entertainment, interest expense, lights and water, legal and audit, advertising,
dues and subscriptions, donations, and telephone and telegraph.










4 -

Picking costs, as shown in Table 1, include all amounts paid

for direct labor for picking and delivery to the roadside, grove truck

expense, and a portion of overhead and administrative expenses.

Picking labor was allocated to the various types of fruit from payroll

analyses or estimated piece rates. 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 ratio of 1.00 to grapefruit, 1.50 to oranges, and 3.00

to tangerines.

Labor costs for handling citrus in field boxes are higher

than for the other methods, especially if the fruit is destined for

a packinghouse. The principal difference in 1964-65 was in the

loading, including grove drivers, which averaged about 3-1/2 cents

more for box-fruit for packinghouses.

Total costs for picking oranges for 26 firms averaged 43.43

cents per box; and for grapefruit for 25 firms 33.08 cents (Table 1).,

Total picking costs for tangerines averaged $1.03 per box for 20

firms. Labor, including workmen's compensation, insurance and

payroll taxes, was the largest item of cost in picking fruit being

approximately 83 percent of the total for oranges, 84 percent for

grapefruit, and 89 percent for tangerines.

Hauling.-- This operation refers to the transportation of fruit from

the roadside to the processing plant, or fresh fruit packinghouse.

It includes also the hauling of packinghouse eliminations to the









5 -

cannery, this Ibeing 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 the heavier loading

of trucks hauling eliminations and the use of bulk handling methods.

Hauling, as used here, does not include the use of grove trucks,

this being considered a part of the picking and loading-operation.

Citrus hauling costs for 28 firms with an average volume

of 1,171,126 boxes were 11.66 cents per box for 1964-65 (Table 1).

This is a composite cost for all kinds of fruit hauled and all

types of operators. Labor costs, including payroll taxes and work-

men's compensation insurance, were 32 percent of the total; and

other operating costs (fuel, repairs, licenses, depreciation,

insurance and rent) 61 percent. Administrative costs were about

7 percent of the total.

The distances over which the fruit was hauled are unknown.

While costs do not vary directly with distance hauled, they do

increase with longer hauls. On the other hand, hauling box-fruit

is higher than bulk hauling for the same distance.

Hauling costs per box do not appear to be related to total

volume hauled. 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 have stated that hauling costs are about

equal for oranges and grapefruit, but higher for tangerines

because of the lighter loading required.










6 -

Picking and Hauling Costs Combined.-- The last three columns in

Table 1 show the average costs for the complete operation of

moving of fruit from the tree to the plant, which included

picking and hauling combined. This is obtained by adding

together the costs allocated to the separate services. Oranges

cost 55.09 cents per box, grapefruit 44.74 cents, and tangerines

$1.14 for picking and hauling to the plant.

VARIATION IN COST AMONG FIRMS

Variations in total costs for picking and hauling in

1964-65 are shown in Tables 2, 3 and 4. Variations, while rather

large, were nearer the normal range encountered each season than

the extremes that were found following the freeze of December 1962.

Most firms handled an increased volume, which lowers fixed costs

per unit and seems to improve efficiency with respect to some of

the variable costs.

Not enough is known about the individual firms' operations

to provide reasons for costs being high or low. The data do not

show any consistent relationship between volume of fruit handled

per firm and level of costs. In each volume group there is a wide

range of costs for both picking and hauling, indicating the influence

of factors other than volume. For hauling, the average distance

hauled, the idle capacity of the equipment owned and the type of

fruit hauled 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











7 -

are piece rates and do not fluctuate with volume picked. The

proportion of different kinds and varieties of fruit affects

picking cost differences among firms. Seedlings are more ex-

pensive to pick than budded oranges. Temples and tangelos,which

have been included in oranges, are also higher in cost than

budded oranges.

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 oper-

ation, 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 26 firms varied from 33:1 cents

to 55.8 cents per box for oranges, and from 25.6 cents to 47.9

cents per box for grapefruit. The range in cost for picking

tangerines was from 89.2 cents to $1.47 per box for 20 firms

(Table 2).

Hauling costs for 28 firms varied from 6.0 cents to 29.1

cents per box (Table 3).

For picking and hauling combined, total costs for 25 firms

ranged from 39.1 cents to 74.6 cents per box for oranges. The

model group of 13 firms had costs between 49.4 cents and 57.5

cents. Picking and hauling costs for grapefruit for 24 firms







- 8-


Table 2.-- Variation in Total Cost Per Box for Picking Oranges,
Grapefruit and Tangerines, 1964-65 Season


Cost per Box Oranges Grapefruit Tangerines
(cents) - number of firms - -

25 29 0 8 0
30 34 2 9 0
35 39 7 4 0
40 44 10 3 0
45 49 3 1 0
50 54 1 0 0
55 59 3 0 .0

85 89 0 0 2
90 94 0 0 5
95 99 0 0 5
100-104 0 0 3
105-109 0 0 2
110 and over 0 0 3
Total number of firms 26 25 20

Average cost per box 43.4 33.1 102.6
(cents)
Range in costs 33.1 55.8 25.6 47.9 89.2 -
(cents) 147.1



Table 3.-- Variation in Total Cost Per Box for Hauling Citrus Fruit
from Grove to Plant, 1964-65 Season


Cost per Box Number of Firms
(cents)
6- 8 5
9 -11 10
12 14 9
15 17 2
18 20 1
21- 23 0
24 26 0
27 29 1
Total number of firms 28
Average cost per box (cents) 11.7

Range in costs (cents) 6.0 29.1










9 -

Table 4.-- Variation in Total Cost per Box for Picking and Hauling
Citrus, 1964-65 Season


Cost per Box
(cents)

30 34
35 39
40 44
45 49
50 54
55 59
60 64
65 69
70 74

90 99
100 109
110 119
120 129
130 and over
Total

Average cost per box
(cents)
Range in costs
(cents)


Oranges Grapefruit Tangerines
- - number of firms - -

0 2 0
1 6 0
1 4 0
5 6 0
6 2 0
6 1 0
1 3 0
2 0 0
3 0 0

0 0 2
0 0 9
0 0 3
0 0 3
0 0 2
25 24 19

55.5 46.1 112.5


39.1 74.6


31.6 63.8


96.6 158.4


varied from 31.6 cents to 63.8 cents per box. The modal

12 firms had costs between 39.7 cents and 48.7 cents per

Picking and hauling tangerines varied from 96.6 cents to

per box for 19 firms with costs for 9 firms in the modal

between $1.03 and $1.14 per box (Table 4).


group of

box.

$1.58

group


II











10 -

COMPARISONS OF 1964-65 COSTS WITH PREVIOUS SEASONS

Hauling costs for the 1964-65 season decreased sub-

stantially from the level of the two preceding seasons (Table 5).

However, hauling costs continued their upward trend, and except

for the seasons affected by the freeze (1962-63 and 1963-64)

were higher than in any previous year. Picking costs for oranges,

grapefruit and tangerines were higher than in any previous year.

This was caused by higher labor costs, especially for pickers.

Most picking costs, other than for labor, declined but not enough

to offset higher labor costs.

Total harvesting and hauling costs for 1964-65 were

slightly lower than the preceding season for oranges and grape-

fruit, and about the same for tangerines.

Some of the season to season variation in cost for each

service is due to the firms included. They have not remained

identical each year, and costs vary widely among firms for

providing the same service.

Percentage changes in picking and hauling costs for

1964-65 are compared with 5 and 10 year earlier periods in

Table 6.

A continuous trend in costs of picking oranges and of

hauling citrus roadside to plant is shown beginning 1951-52 in

Figure 1.









- 11 -


Table 5.-- Average Cost per Box for Picking and Hauling Citrus Fruits,
15 Seasons

No Picking Total Picking & Haulinga
Season of Hauling Grape- Tange- Grape- Tange-
Firms Oranges fruit rines Oranges fruit rines
- - - Cents Per Box - - -

1950-51 9 10.31 28.36 18.62 56.93 38.67 28.93 67.24
1951-52 26 9.81 28.42 19.51 61.93 38.23 29.32 71.74
1952-53 29 9.71 29.12 21.98 59.62 38.83 31.69 69.33
1953-54 37 9.61 28.87 20.58 60.86 38.48 30.19 70.47
1954-55 36 9.38 28.93 20.91 64.72 38.31 30.29 74.10
1955-56 36 9.47 30.52 21.73 66.39 39.99 31.20 75.86
1956-57 34 9.27 31.36 23.46 73.96 40.63 32.73 83.23
1957-58 34 11.31 33.30 24.09 75.53 44.61 35.40 86.84
1958-59 32 11.46 33.30 24.16 74.90 44.76 35.62 86.36
1959-60 33 11.23 34.17 25.16 83.68 45.40 36.39 94.91
1960-61 37 11.17 34.96 26.69 83.53 46.13 37.86 94.70
1961-62 33 10.41 33.79 25.75 81.66 44.20 36.16 92.07
1962-63 32 12.94 39.57 28.32 95.97 52.51 41.26 108.91
1963-64 30 13.73 43.04 31.47 100.71 56.77 45.20 114.44
1964-65 29 11.66 43.43 33.08 102.63 55.09 44.74 114.29


aCitrus dealers usually have an additional cost for buying and
selling fruit which has varied from 2-1/2 to 4 cents per box.



Table 6.-- Percentage Changes in Picking and Hauling Costs, 1964-65 vs
5 and 10 Years Earlier. (1954-55 = 100)

Picking Total Picking & Hauling
Season Hauling Grape- Tange- Grape- Tange-
Oranges fruit rines Oranges fruit rines

1954-55 100 100 100 100 100 100 100

1959-60 120 118 120 129 119 120 128

1964-65 124 150 158 159 144 148 154








- 12 -


Index

140


120
Cost of Picking- ..
100 0---Oranges ---------"---- ---" -
of Hauling Citrus

80


60


40 -


20 I

0
0 ...------ I, -----------______ _. ...__-_ __ J _.-- .. ... ... .1 ... .... ,-, rn- .1.,, 1 t, -,-,,,
1951- 1952- 1953- 1954- 1955- 1956- 1957- 1958- 1959- 1960- 1961- 1962- 1963- 1964-
52 53 54 55 56 57 58 59 60 61 62 63 64 65

Figure 1.-- Trend in the Cost of Picking Oranges, and in Hauling Citrus
Roadside to Plant. (3-Season average 1956-57 1958-59 = 100)



OTHER MIMEOGRAPHED PUBLICATIONS AVAILABLE ON CITRUS COSTS
Department of Agricultural Economics Florida Agricultural Experiment Stations
Gainesville, Florida

1. Costs of Packing and Selling Florida Citrus Fruits, 1964-65 Season.
Ag. Econ. Mimeo Report EC 66-8, March 1966.
2. Costs of Processing, Warehousing and Selling Florida Citrus Products, 1962-63
Season. Ag. Econ. Mimeo Report EC 66-9, April 1966.
3. Thirty-three Years of Citrus Production Costs and Returns in Florida, 1931-1964.
Ag. Ext. Service Econ. Series 66-2, April 1966.
4. Thirty Years of Orange Production Costs and Returns in Florida, 1931-1961.
Ag. Ext. Service Econ. Series 63-3, April 1963.
5. Cost of Planting and Developing Florida Citrus Groves through 10 Years of Age.
Ag. Ext. Service Econ. Series 65-1, February 1965.


AHS: flp 3/18/66
Experiment Stations Ag. Econ. 1200