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Costs of picking and hauling Florida citrus fruits
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Permanent Link: http://ufdc.ufl.edu/UF00027604/00021
 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: 1966
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: UF00027604:00021
 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
Full Text

Agricultural Economics
Mimeo Report EC 68-5


-FLORIMtO CRR FRUTS,


1946-67 SEASON



by
A. H. SPURLOCK
Agricultural Economist t


-v


Department of Agricultur- Bconomics
Florido Agricultural Experient Stations -
Institutewof Food and Agricalu il SoeAnces
Gainssville,.FIlwido




- t r A p j."-.s -, L
:*"'--- '--" L- "- '--- ''"**:-'^*A **-* ^*'*^^ <",..-^r**:.^*-..a^_A^^^.4.,',.t.,,-^^^ '/*. ~.,,: ^-^/..--_^-_,;1


Moro 1966 '


COSTS OF PICKING AMN M,-UNG










COSTS OF PICKING AND HAULING FLORIDA
CITRUS FRUITS, 1966-67 SEASON


CONTENTS

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

Costs of Picking and Hauling, 1966-67........................... 2

Variation in Costs Among Firms................................. 5

Comparison of 1966-67 Costs with Previous Seasons ............... 7




Introduction


Costs of handling citrus fruits from the tree to the packinghouse
or processing plant for the 1966-67 season were summarized by type of
fruit for 29 firms. Six of the firms furnishing data were citrus
dealers or intermediate handlers specializing in the procurement, sale
and delivery of fruit to the processing plant, and 23 were packers of
fresh fruit or processors. Several firms did not supply costs for
both the picking and hauling operation. 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, the kind of fruit,
and the number of boxes handled.

The firms included were located mostly in the intensive citrus
counties of the interior part of the state. Only three were on the
East Coast; Polk, Orange and Lake counties included 20 of the 29 firms.
However, large operators frequently cover a wide area in harvesting
and hauling citrus.

Total volume of fruit handled varied widely among firms. Only
three firms handled less than 300,000 boxes with their own crews; twelve
firms picked more than 1,000,000 boxes; and 17 firms hauled more than
1,000,000 boxes each. The average volume for the 28 firms picking fruit
was 1,448,000 boxes, and for 29 firms hauling fruit 1,725,000 boxes.


- 1 -








- 2-


COSTS OF PICKING AND HAULING, 1966-67


The average costs per box for picking and hauling citrus fruit
for the 1966-67 season from the tree to the processing plant, 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-- 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, depreciation
for the grove trucks, crew trucks, grove tractors, loading machines
and other picking equipment, and administrative expense.

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 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
for grapefruit, 1.50 for oranges, and 3.00 for 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 1966-67 was in the
loading, including grove drivers, which averaged about three cents more to
for box-fruit for packinghouses.

Total costs for 1966-67 picking oranges for 28 firms averaged
46. 25 cents per box; and picking grapefruit for 25 firms 37.65cents
(Table 1). Total picking costs for tangerines averaged $1.13 per
box for 21 firms. Labor, including workmen's compensation insurance
and payroll taxes, was the largest item of cost in picking fruit being
approximately 86 percent of the total for oranges, 84for grapefruit,
and 90percent for tangerines.






- 3 -


Table 1.--Average Costs Per Box of Picking and Hauling Citrus Fruits, for Fresh
Packing and Processing, 1966-67 Season


Picking


Grape- Tange-
fruit rines


Total Picking
and Haulinq


Grape-
Oranges Grape-
fruit


Tange-
rines


No.of operators 29 28 25 21 -- -- --


Average volume 1,739,932 1,08),573 341,004 58,189.
(Boxes)

Costs Per Box (Cents)


Labor:
Field foremen
Pickers
Loaders & drivers
Highway drivers
Other labor

Total

Payroll taxes,
insurance

Total Labor


Other costs:
Fuel and oil
Repairs &
Maintenance
Licenses & taxes
Depreciation
Insurance
Supplies & shop
Equipment rental
Migratory labor
Miscellaneous
Administrative

Total other costs


2.91
.57


2.86
29.53
4.04

.54


2.53
21.75
4.80

.38


6.69
79.55
8.50

.50


2.86
29.53
4.04
2.91
1.11


2.53
21.75
4.80
2.91
.95


6.69
79.55
8.50
2.91
1,.07


3.48 36.97 29.46 95.24 40.45 32.94 98.72


.27 2.60 2.09 6.74 2.87 2.36 7.01

3.75 39.57 31.55 101.98 43.32 a5.30 105.73



1.80 0.62 0.65 0.61 2.42 2.45 2.41

1.99 1.96 2.59 2.58 3.95 4.58 4.57
.61 .17 .25 .53 .78 .86 1.14
1.42 .63 .41 1.24 2.05 1.83 2.66
.31 .16 .24 .49 .47 .55 .80
.17 .37 .51 1.13 .54 .68 1.30
.12 .24 .08 .10 .36 .20 .22
.82 .44 1.37 .82 .44 1.37
]0 .14 .07 .23 .24 .17 .33
.47 1.57' .86 3.21 2.04 1.33 3.68

6.99 6.68 6.10 11.49 13.67 13.09 18.48


Total costs


10.74 46.25


37.65 113.47


56.99


48.39 124.21


I tern


Hauling
Roadside
to Plant


Oranges


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


~I '








- 4 -


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
eliminations 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
handing 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 29 firms with an average volume of
1,739,932 boxes were 10.74 cents per box for 1966-67 (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 35 percent of the total; and other
operating costs (fuel, repairs, licenses, depreciation, insurance,
and rent) 61 percent. Administrative costs were about fbur 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 in cost 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 o0 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.

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 costs 57.0 cents per
box, grapefruit 48.4 cents, and tangerines $1.24.











- 5 -


VARIATIONS IN COSTS AMONG FIRMS

Variations in total costs for picking and hauling in 1966-67 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 affect 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
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 28 firms varied from 34.5 cents to 5,8,.
centa per box for oranges, and from 26.1 cents to 47.9 cents per box
for grapefruit for 25 firms. The range in costs for picking tangerines
was from 80 cents to $ 1. 27 per box for 21 firms (Table 2).

Hauling costs for 29 firms varied from 641 cents to 16.4 cents
per box (Table 3).

For picking and hauling combined, total costs for 28 firms ranged
from 40.6 cents to 68,"3cents per box for oranges. The modal group
of 14 firms had costs between 53.7 cents and 63.3 cents. Picking and
hauling costs for grapefruit for 25 firms varied from 32.3 cents to
5 cents per box. The modal group of 13 firms had costs between
43.6 and 53. cents per box. Picking and hauling tangerines
varied from 89.2 cents to $1.7. per box for 21 firms with costs for
11 firms in the modal group between $1.12 and $1.31 per box (Table 4).








- 6 -


Table 2.--Variation in Total Cost Per Box for Picking Oranges,
and Tangerines, 1966-67 Season


Grapefruit


Cost Per Box Picking
OreaBes Grapefrui t_____ Ta es--

Cents Number of Firms
25 25 29 0 3
30 34 1 8
35 39 3 5
40 44 7 8
45 49 10 1
50 54 6 0
55 59 1 0


80 89 I
90 99 6
100 109 4
110 119 5
120 129 5
Total number of firms 28 25 21

Average cost per box 46.2 37.7 113.5
(cents)
Range in costs 34.5 55.8 26.1 47.9 80.0 126.6
(cents)


Table 3.--Variation in Total Cost Per Box for Hauling Citrus
Grove to Plant, 1966-67 Season


Fruit from


Hauling Citrus Fruit


Cost Per Box

Cents
6 8
9 11
12 14
15 17
Total number of firms

Average cost per box (cents)


Number of Firms
5
13
8
3
29

10.7


Range in costs (cents) 6.1 16.4






- 7 -


Table 4.--Variation in the Combined Cost Per Box for Picking and Hauling
Citrus, 1966-67 Season



Cost Per Box Picking and Hauling
Oranges Grapefruit Tangerines

Cents Number of Firms
30 34 0 1
35 39 0 3
40 44 2 6
45 49 2 3
50 54 6 8
55 59 9 4
60 64 5 0
65 69 4 0
under 99 1
100 109 4
110 119 6
120 129 4
130 139 6
Total number of firms 2B 25 21

Average cost per box 57.0 48.4 124.2
(cents)

Range in costs 40.6 68.8 32.3 58.4 89.2 137.2
(cents)


Comparisons of 1966-67 Costs With Previous Seasons


Harvesting costs per box for oranges and grapefruit for 1966-67
were almost the same as in the proceeding season, with tangerine picking
costs about four percent higher. At these levels picking costs were about
the highest of the 17 years compared. (Table 5).

Hauling costs were lower than they have been for five years, probably
due to the unusual volume hauled. Hauling costs are reduced more by a large
volume than are picking costs because of the lower proportion of labor
included and the higher ratio of fixed costs.

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 1966-67 are
compared with five- and ten-year earlier periods in Table 6.

A continuous trend in costs of picking oranges and of hauling citrus
roadside to plant is shown from 1953-54 to 1966-67 in Figure 1.







- 8 -


Table 5.--Average Cost Per Box for Picking and Hauling Citrus Fruits, 17 Seasons


No. Picking_ Total Picking & Hauling
Season of Hauling Grppe- Tange- Oran Grape- Tange-
Firms Oranges fruit rines Orange 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
1965-66 27 11.96 46.12 37.77 107.47 58.08 49.73 119.43
1966-67 29 10.74 46.25 37.65 113.47 56.99 48.39 124.21


Table 6.--Percentage Changes in Picking and Hauling Costs, 1966-67 vs Five
and Ten Years Earlier (1956-57 = 100)


Picking Total Picking & Hauling?
Season Haulinq Grape Tange- Grape- Tange-
Oranges Grape Tange- Oranges ,. .. .. e
fruit rines fruit rines


1956-67 100

1961-62 112

1966-67 116


100

110

153


aCitrus dealers usually have an additional cost for buying and selling
fruit which' has varied from 21 to 5 cents.














4.
4.-- .4.
-'4
.4.


- p- 3 '-. 1-


* 1
-~2.'


Orange Pickng Cast


Ar'

Ar-


- -- 71 ^.Haul8Jg Cost


I IL r r-


1957- 1958-1959-
58 59 60


1960- 1961- 1962-. 963- .1964-
61 62 63 64 65


1965- 6-
66 67


Fig, lis-TrFnd in


1..

2-.


3.

r


the. Cost Per Box -f Picking Orange and-of HniMing. Ct tr rp
Roadside to Plamnt, 193-54 to 1966-67
(3-Season Averege 1956-7 1958-59 100) ;


OTHER MMEOGRAPHED PUBLICATIONS AVALABLE ON CITRUS COSTS

Department of. Agricultural Economics
Florida Agriculture4 ExperLment Statons ;
Institute of Food and Agricultural Sciences
Gainesville, Plorida 32601 '


Costs of Packi.g aid Selling Florida Citrus Fruits. l&6"7 Sea
Agr. Econ. Mimeo 06rt EC 08-6, Barch 19 8.
C Ms of Processig reh slg and Slin Florida. Citrs Pr cts.
i .- Season, *. Ecf. Mimae Report 1C W-1, M*rV 8,


Thl .rtyfoor Years of fAtrus Productjo gat n eurn ]pn flr.1de,


1931`-96. AAgr.. Et Srvice Eco. States 67-1, Aai. 197
Thirtv-flwe Years of Orange Rr.duction COsts ad tRohurnat j1 Florida.


19[jj1966. Agr. Ext Servkte Econ. Series 67-6, Nov. 1967


5; Cost of Planting and ehsvelopig FJorida Citrus 'Groves through 10 years
AgEof Agr. Ext. S.ervicqtcon. Series 65-1, Feb. lI


SAHNSd 2/21/68
SExp, Sta., Agr. cbn.


1250-


*Z. ~ '~ZA ~~st..- 24~&J A -~. .


Index


r4o L


-- O l


S153-'
54 '


1954-
55


1955-
56 .-


1956-
57


-- --


cl


1


1 ,,


:+ 'i ." ;.+