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Costs of picking and hauling Florida citrus fruits
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Permanent Link: http://ufdc.ufl.edu/UF00027604/00020
 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: 1965
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: UF00027604:00020
 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
Full Text







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

firm handled less than 200,000 boxes; seven firms picked more than

1,000,000 boxes;and 13 firms hauled more than 1,000,000 boxes each.

The average volume for the 25 firms picking fruit was 1,127,000 boxes,

and for 27 firms hauling fruit 1,369,000 boxes.


Costs of Picking and Hauling, 1965-66


The average costs per box for picking and hauling citrus fruit

for the 1965-66 season from the tree to the processing plant, or pack-

inghouse, 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--such 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 and maintenance, taxes and licenses, insurance, deprecia-

tion for the grove trucks, crew trucks, grove tractors, loading machines

and other picking equipment, and administrative expense.









Table 1.--Average Costs Per Box of Picking and Hauling Citrus Fruits, for Fresh
Packing and Processing, 1965-66 Season


.. Total Picking
Hauling Picking otal Picking
Item Roadside and Hauling
to Plant Oranges Grape- Tange- Oranges Grape- Tange-
fruit rines fruit 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
Migratory labor
Miscellaneous
Administrative
Total other costs


27 25 23 20


1,369,681 819,374 282,701 59,594 -- -


Costs Per Box (Cents)

0.17 3.20 2.68 5.97 3.37 2.85 6.14
-- 28.54 21.18 75.03 28.54 21.18 75.03
-- 4.12 4.50 7.38 4.12 4.50 7.38
3.02 -- -- -- 3.02 3.02 3.02
.47 .57 .27 .57 1.04 .74 1.04
3.66 36.43 28.63 88.95 40.09 32.29 92.61


0.30 2.58 2.10 6.31 2.88 2.40 6.61

3.96 39.01 30.73 95.26 42.97 34,69 99.22


2.02 0.62 0.68 0.67 2.64 2.70 2.69
2.27 2.47 3.13 2.71 4.74 5.40 4.98
.66 .17 .27 .51 .83 .93 1.17
1.69 .81 .50 1.68 2.50 2.19 3.37
.44 .23 .36 .63 .67 .80 1.07
.07 .45 .71 1.33 .52 .78 1.40
.16 .27 .15 .54 .43 .31 .70
-- .53 .32 1.09 .53 .32 1.09
.07 .10 .06 .17 .17 .13 .24
.62 1.46 .86 2.88 2.08 1.48 3.50
8.00 7.11 7.04 12.21 15.11 15.04 20.21


Total costs


11.96 46.12 37.77 107.47


58.08 49.73 119.43


includes management and office salaries, office supplies, auto,travel and
entertainment, interest expense, legal and audit, advertising, dues and sub-
scriptions, donations, and telephone and telegraph.









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 anid administrative expenses. Picking

labor was allocated to the various types of fruit by estimated piece

rates when not available separately. Fuel and repairs were prorated

on a box basis equally to all kinds of fruit picked. Certain other

expenses, which do not fluctuate directly with changes in volume, 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. Expenses in this

group included licenses and taxes, depreciation, insurance, miscellaneous

and administrative.

Labor costs for picking and loading citrus in field boxes are higher

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

packinghouse. The principal difference in 1965-66 was in the loading,

including grove drivers, which averaged about three cents more for box-

fruit for packinghouses.

Total costs for 1965-66 picking oranges for 25 firms averaged 46.12

cents per box; and picking grapefruit for 23 firms 37.77 cents (Table l).

Total picking costs for tangerines averaged $1.07 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 85 percent

of the total for oranges, 82 percent for grapefruit, and 89 percent for

tangerines.

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

the groveside to the processing plant, or fresh fruit packinghouse. It

includes also the hauling of packinghouse eliminations to the cannery,









but this is counted as a separate haul. Hauling packinghouse elimina-

tions 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 since they are considered a part of the picking and

loading operation.

Citrus hauling costs for 27 firms with an average volume of

1,369,000 boxes were 11.96 cents per box for 1965-66 (Table 1).

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

of operators. Labor costs, including payroll taxes and workmen's

compensation insurance, were 33 percent of the total; and other

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

and rent) 62 percent. Administrative costs were about five 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 of 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;0

Picking and hauling costs combined.--The last three columns in

Table I show the average costs for the complete operation of moving

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 picked and hauled cost 58.08 cents per

box, grapefruit 49.73 cents, and tangerines $1.19.


Variations in Costs Among Firms


Variations in total costs for picking and hauling in 1965-66 are

shown in Tables 2, 3 and 4,

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 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 expensive 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 operation, whether the







-7-


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 25 firms varied from 35.6 cents to 63.0

cents per box for oranges, and from 26.6 cents to 50.4 cents per bQx,;

for grapefruit for 23 firms. The range in costs for picking tangerines

was from 85.1 cents to $1.45 per box for 20 firms (Table 2).

Hauling costs for 27 firms varied from 7.0 cents to 17.9 cents

per box (Table 3).

For picking and hauling combined, total costs for 25 firms ranged

from 46.2 cents to 75.5 cents per box for oranges. The modal group

of 13 firms had costs between 55.4 cents and 64.5 cents. Picking and

hauling costs for grapefruit for 23 firms varied from 38.2 cents,to

63.0 cents per box. The modal group of 11 firms had costs between

45.0 cents and 51.6 cents per box. Picking and hauling tangerInes

varied from 97.6 cents to $1.57 per box for 20 firms with costs for

10 firms in the modal group between $1.12 and $1.22 per box (Table 4).







- 8.


Table 2.--Variation in Total Cost Per Box for Picking Oranges, Grapefruit
and Tangerines, 1965-66 Season

Cost Per Box Picking
Oranges Grapefruit Tangerines
Cents Number of Firms
25 29 0 2
30 34 0 7
35 39 3 8
40 44 3. 4.
45 49 10 1
50 54 6< 1
55 59 2 0
60 64 1 0

85 89 1
90 94 2
95 99 1
100 104 4
105 109 5
110 114 3
115 and over 4
Total number of firms 25 23 20
Average cost per box
(cents) 46.1 37.8 107.5
Range in costs
(cents) 35.6-63.0 26.6-50.4 85.1-145.0


Table 3.--Variation in Total Cost Per Box for Hauling Citrus Fruit from
Grove to Plant, 1965-66 Season

Cost Per Box Hauling Citrus Fruit


Cents


6 8
9 II
12 14
15 17
Total number of firms
Average cost per box (cents)
Range in costs (cents)


Number of Firms

3
9
12

27
12.0
7.0-17.9






-9-


Table 4.--Variation in the Combined Cost Per Box for Picking:
Citrus, 1965-66 Season


and Hauling


Picking and Hauling
Cost Per Box
Oranges ,Grapefruit Tangerines

Cents Number of Firms

35 39 0 3
40- 44 0 3
45- 49 3 6
50- 54 3 8
55 59 7 1
60- 64 6 2
65- 69 4 0
70 74 1 0
75 79 1 0

90 99 I
100- 109 4
110.- 119 5
120 129 6
130.-., 139 1
140 aind over 3
Total number of firms 25 23 20: ;

Average cost per box
(cents) 58.1 49.7 119.4

Range in costs
(cents) 46.2-75.5 38.2-63.0 97.6-157.4



Comparisons of 1965-66 Costs With Previous Seasons


All harvesting and transportation costs for 1965-66 increased over

the previo. s' season, but hauling was 'only slightly higher. Total '

picking cdtas' for oranges,. grapefruit and tangerines were higher thin'

in any previous year. This was caused by higher labor costs, espec-

ially for pickers. Hauling costs were higher in the two seasons







-10-


1962-63 and 1963-64, but volume per firm was lowered in those years from

freeze conditions.

Total harvesting and hauling costs for 1965-66 were the highest

recorded for each kind of fruit.

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 1965-66 are

compared with five- and ten-year earlier periods in Table 6.

A continuous trend in costs of pickig oranges and of hauling citrus

roadside to plant is shown from 1951-52 to 1965-66 in Figure 1.


Table 5.--Average Cost Per Box for Picking and Hauling Citrus Fruits,
16 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
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62
1962-63
1963-64
1964-65
1965-66


10.31
9.81
9.71
9.61
9.38
9.47
9.27,
1131
11.46
11.23
11.17
10.41
12.94
13.73
11.66
11.96


28.36
28.42
29.12
28.87
28.93
30.52
31.36
33.30
33.30
34.17
34.96
33.79
39.57
43.04
43.43
46.12


18.62
19.51
21.98
20.58
20.91
21.73
23.46
24.09
24.16
25.16
26.69
25.75
28.32
31.47
33.08
37.77


56.93
61.93
59.62
60.86
64.72
66.39
73.96
75.53
74.90
83.68
83.53
31.66
95.97
100.71
102.63
107.47


38.67
38.23
38.83
38.48
38.31
39.99
40.63
44.61
44.76
45.40
46.13
44.20
52.51
56.77
55.09
58.08


28.93
29.32
31.69
30.19
30.29
31.20
32,73
35.40
35.62
36.39
37.86
36.16
41.26
45.20
44.74
49.73


67.24
71.74
69.33
70.47
74.10
75.86
83.23
86.84
86.36
94.91
94.70
92.07
108.91
114.44
114.29
119.43


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


---e






-II-


Table 6.--Percentage Changes in Picking and Hauling Costs, 1965-66 vs
Five and Ten Years Earlier (1955-56 = 100)


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

1955-56 100 100 100 100 100 100 100

1960-61 118 115 123 126 115 121 125

1965-66 126 151 174 162 145 159 157


Index


1952- 1953- 1954- 1955- 1956- 1957- 1958- 1959- 1960- 1961- 1962- 1963- 1964- 1965-
53 54 55 56 57 58 59 60 61 62 63 64 65 66

Fig. .1--Trend in the Cost Per Box of Picking Oranges, and of Hauling Citrus from
Roadside to Plant, 1952-53 to 1965-66
(3-Season Average 1956-57 1958-59 = 100)