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Costs of processing, warehousing and selling Florida citrus products
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 Material Information
Title: Costs of processing, warehousing and selling Florida citrus products
Series Title: <19691970-> Agricultural economics report
Portion of title: Cost of processing, wareshousing and selling Florida citrus products
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 fruit industry -- Costs -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
serial   ( sobekcm )
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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 processing, warehousing and selling Florida citrus products.
General Note: Description based on: 1967-68 season.
Funding: Agricultural economics mimeo report.
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Resource Identifier: oclc - 31065500
System ID: UF00027701:00012
 Related Items
Succeeded by: Estimated costs of processing, warehousing and selling Florida citrus products

Table of Contents
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    Foreword
        Foreword
    Table of Contents
        Foreword
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Full Text


March 1961 Agricultural Economics
Mimeo Report No. 61-9





COSTS OF PROCESSING, WAREHOUSING AND

SELLING FLORIDA CITRUS PRODUCTS,


1959-60 SEASON


By
A. H. Spurlock and H. G. Hamilton


Department of Agricultural Economics
Florida Agricultural Experiment Stations
Gainesville, Florida














FOREWORD


Costs of processing Florida citrus products have been published annually

for the past 14 seasons. These costs were assembled and published by the Florida

Agricultural Experiment Stations in cooperation with the Farmer Cooperative

Service, U. S. Department of Agriculture, for the first 11 years. For the past

3 seasons, processing costs have been prepared by the Agricultural Experiment

Stations.

This is a report of one phase of Southern Regional Project SM-22, "The

Economic Efficiency of Marketing Citrus Fruits."





CONTENTS

Page
Costs of Processing Single-Strength Juices......................... 3

Variations in Cost ....................................... 7

Costs of Processing Citrus Sections ............................... 9

Costs of Processing Frozen Orange Concentrate ............ ..... 10














FOREWORD


Costs of processing Florida citrus products have been published annually

for the past 14 seasons. These costs were assembled and published by the Florida

Agricultural Experiment Stations in cooperation with the Farmer Cooperative

Service, U. S. Department of Agriculture, for the first 11 years. For the past

3 seasons, processing costs have been prepared by the Agricultural Experiment

Stations.

This is a report of one phase of Southern Regional Project SM-22, "The

Economic Efficiency of Marketing Citrus Fruits."





CONTENTS

Page
Costs of Processing Single-Strength Juices......................... 3

Variations in Cost ....................................... 7

Costs of Processing Citrus Sections ............................... 9

Costs of Processing Frozen Orange Concentrate ............ ..... 10










COSTS OF PROCESSING, WAREHOUSING AND SELLING
FLORIDA CITRUS PRODUCTS, 1959-60 SEASON

by

A. H. Spurlock and H. G. Hamilton1


Seventeen processing firms cooperated in the study for the 1959-60 season.

These firms processed over 16 million actual cases of single-strength juices and

sections, approximately 52 percent of total Florida production, and 53.9 million

gallons of frozen orange concentrate, or 69 percent of total Florida production

for the season.

Data for frozen orange concentrate were based on records of 12 firms

operating 14 plants while data for single-strength juice and sections were based

on records of 13 firms operating 13 plants. Grapefruit sections were produced

by 10 of these firms.

These data represent estimates of industry costs. Year-to-year changes

in these estimates may result from both changes in plant costs and changes in the

sample. Thus, when sample changes have been substantial, as with frozen orange

juice concentrate in the past four years, caution must be used in interpreting

data over a long period.

All of the costs shown in this summary are weighted averages. The cost

for each firm for a given pack is weighted by the volume packed. This tends to


Agricultural Economist and Agricultural Economist and Head, Department
of Agricultural Economics.










place the average cost nearer the cost for the firms with the larger pack of that

product than would occur if a simple average were used. This also explains the

slight differences shown in cost of identical items for various products. For

example, in Table 2, can costs for size 24/2 are identical; yet for orange juice,

the can cost averaged $0.8623 per case and for grapefruit juice, $0.8638. Such

differences may be caused by a change in the number of firms averaged or in a

shift in the weight of the firms included in each group.

Detailed cost data assembled from the cooperating firms were combined

into six major cost categories for each product and can size to give a total cost,

unsweetened. Sugar cost was then added, if the product is commonly sweetened,

to give a total cost, sweetened.

Social security taxes and workmen' s compensation insurance costs have

been added to the wage or salary items to which they apply. Some firms combine

such charges with labor costs, while others show social security and related items

as separate costs. In order to make labor items consistent for all firms, the amounts

shown herein include payroll taxes and workmen's compensation insurance.

The selling costs shown for juices and sections include only the firms' own

sales department expense--sales salaries, telephone and telegraph, office expense,

travel and advertising. Brokerage, discounts, allowances and brand royalties

have been omitted. In some cases brokerage was the largest item shown for selling

on the firm' s records. However, the firms' use of the omitted items and methods of

accounting for them varied widely. Selling costs have been omitted entirely from

the concentrates.










Costs of Processing Single-Strength Juices


Average costs of processing, warehousing and selling single-strength juices,

excluding the cost of sugar, in 12/46 cases, are shown for the past 13 years in

Table 1. The cost trend over this period has been definitely upward but showed

decreases from the trend in the years 1953-54 to 1955-56. In 1959-60, total

costs for juices increased slightly from the previous year' s level, with the largest

increase in orange juice. In 1959-60, costs for juices are based on data from

15 firms as compared with 14 for the preceding season.


TABLE 1 .--Average cost of processing, warehousing and selling Florida citrus fruit
juices, excluding sugar, in 12/46 cases, 1947-48 through 1959-60 seasons.


Season Orange Juice Grapefruit Juice Blended Juice Tangerine Juice

1947-48 $1.09 $1.09 $1.09 $ ..
1948-49 1.17 1.17 1.15
1949-50 1.21 1.19 1.19 1.24
1950-51 1.24 1.23 1.23 1.24
1951-52 1.30 1.31 1.31 1.32
1952-53 1.35 1.35 1.34 1.39
1953-54 1.26 1.26 1.26 1.29
1954-55 1.27 1.27 1.28 1.33
1955-56 1.32 1.33 1.33 1.33
1956-57 1.38 1.40 1.39 1.43
1957-58 1.48 1.50 1.49 1.47
1958-59 1.47 1.47 1.48 1.51
1959-60 1.52 1.50 1.50 1.52



Analysis of major cost groups for unsweetened orange juice, 12/46, shows

that costs per case increased in 1959-60 in each category except administrative and











selling expense which decreased slightly. The materials cost increase was a very

small change, with the largest increase being in labor, amounting to 12 percent.

The total cost per case for producing, warehousing and selling unsweetened orange

juice in 12/46 cases increased about 4 cents per case in 1959-60, or 2.8 percent

over the preceding season. A comparison of the change among principal cost

categories is as follows:


Cost Group


Materials
Labor
Other manufacturing
and warehousing
Administrative and
selling
Other costs

Total-nonsweet


Orange Juice,
Cost per Case
1958-59 1 1959-60

$1.0274 $1.0344
.1315 .1473

.1743 .1905

.0799 .0788
.0609 .0649

$1.4740 $1.5159


12/46 (excluding sugar)
Change in Cost Percent
from 1958-59 Change

+$0.0070 + 0.7
+ .0158 + 12.0

+ .0162 + 9.3

.0011 1.4
+ .0040 + 6.6

+$0.0419 + 2.8


Itemized costs

sizes (24/2 and 12/46


of processing single-strength juices in the most popular can

cases) for the 1959-60 season are shown in Table 2.









TABLE 2.--Cost per case by type of container for processing, warehousing and
selling Florida citrus fruit juices, 11 canning plants, 1959-60 season.


Product Orange Juice Grapefruit Juice
Type of Container 24/2 12/46 24/2 12/46
Number of Firms 10 11 10 10
Cases per Firm 119,178 368,101 78,215 289,470


Cost per Case:
Material:
Cans
Cartons
Labels, adhesives
Total Material
Labor (incl. payroll taxes, ins.):
Direct
Indirect
Warehousing and shipping
Total Labor
Other Manufacturing:
Power, lights and water
Maintenance, bldgs. and equip.
Royalties
Depreciation
Manufacturing overhead
Miscellaneous expense
Total Other Manufacturing
Warehousing
Total Processing, Warehousing
Administrative
Selling
Other Costsd
Total Cost, Unsweetened
Sugar
Total Cost, Sweetened


$0.8623
.0922
.0536
$1.0081

$0.0536
.0159
.0617
$0.1312


$0.0185
.0229
.0437
.0164
.0130
.0101
$0.1246
$0.0299
$1 .2938
$0.0422
.0242
.0521
$1.4123
.0536
$1.4659


$0.8686
.1124
.0534
$1.0344

$0.0654
.0213
.0606
$0.1473


$0.0228
.0320
.0539
.0237
.0151
.0129
$0.1604
$0.0301
$1 .3722
$0.0504
.0284
.0649
$1.5159
.0670
$1.5829


$0.8638
.0917
.0534
$1.0089

$0.0544
.0170
.0550
$0.1264


$0.0174
.0246
.0228
.0191
.0113
.0102
$0.1054
$0.0281
$1.2688
$0.0388
.0216
.0669
$1.3961
.1046
$1.5007


$0.8697
.1119
.0532
$1.0348

$0.0639
.0218
.0592
$0.1449


$0.0225
.0328
.0291
.0247
.0143
.0121
$0.1355
$0.0283
$1.3435
$0.0489
.0252
.0855
$1.5031
.1333
$1.6364


aIncludes Taxes, insurance, rent.


includes management and office salaries,


telephone, travel, office expense.


Concludes sales salaries, telephone, advertising, travel, but excludes
brokerage, brand royalties, discounts, allowances.
dOther costs include advertising tax, inspection fees, operating interest.


--









TABLE 2.--Continued


Product Blended Juice Tangerine Juice
Type of Container 24/2 12/46 24/2 12/46
Number of Firms 10 11 4 7
Cases per Finrn 32,283 142,763 5,108 19,452


Cost per Case:
Material:
Cans
Cartons
Labels, adhesives


$0.8633
.0920
.0530


$0.8701
.1132
.0528


$0.8583
.0912
.0527


$0.8648
.1091
.0529


Total Material
Labor (incl. payroll taxes, ins.):
Direct
Indirect
Warehousing and shipping
Totdl Labor
Other Manufacturing:
Power, lights and water
Maintenance, bldgs. and equip.
Royalties
Depreciation
Manufacturing overhead
Miscellaneous expense
Total Other Manufacturing
Warehousing
Total Processing, Warehousing
Administrative
Selling
Other costs
Tot:' Cost, Unsweetened
Sugar
Total Cost, Sweetened


$1.0083 $1.0361 $1.0022 $1.0268

$0.0530 $0.0660 $0.0612 $0.0715
.0179 .0222 .0157 .0228
.0592 .0579 .0588 .0519
$0.1301 $0.1461 $0.1357 $0.1462


$0.0181
.0250
.0294
.0180
.0122
.0098
$0.1125
$0.0281
$1.2790
$0.0410
.0225
.0602
$1.4027
.0854
$1 .4881


$0.0221
.0330
.0359
.0241
.0142
.0127
$0.1420
$0.0289
$1.3531
$0.0476
.0266
.0745
$1.5018
.1079
$1 .6097


$0.0174
.0323
.0367
.0157
.0091
.0078
$0.1190
$0.0298
$1.2867
$0.0387
.0246
.0589
$1.4089
.0574
$1.4663


$0.0226
.0469
.0458
.0264
.0104
.0110
$0.1631
$0.0286
$1.3647
$0.0479
.0279
.0760
$1.5165
.0659
$1.5824


includes taxes, insurance, rent.
b Includes management and office salaries,


telephone, travel,office expense.


CIncludes sales salaries, telephone, advertising, travel, but excludes
brokerage, brand royalties, discounts, allowances.
dOther costs include advertising tax, inspection fees, operating interest.


r










The costs of processing and selling citrus juices unsweetened in 12/46 cases

were about 10 cents per case higher than for 24/2 cases. However, for an equiv-

alent volume of juice (basis 24/2 cases), the costs for 12/46 cases were approxi-

mately $0.2050 cents per case lower than for 24/2 cases. The differences were

about 2 cents less than those existing for 1958-59. Differences in individual

plant costs for these different case sizes show a high degree of consistency. The

comparative costs for packing an equivalent 24/2 quantity of juice in two can

sizes were as follows:


Item Orange Grapefruit Blended Tangerine
Juice Juice Juice Juice

Cost per 24/2 case $1.4123 $1.3961 $1.4027 $1.4089
Cost 24/2 equiv. in 12/46 1.2041 1.1939 1.1929 1.2045

Difference $0.2082 $0.2022 $0.2098 $0.2044

Difference 1958-59 $0.2297 $0.2233 $0.2277 $0.2237



Variations in cost.--Variations among plants in the total cost of processing,

warehousing and selling single-strength unsweetened juices for 1959-60 are shown

in Table 3.

In Table 4 are shown the variations in cost among plants for processing and

warehousing unsweetened citrus juices, exclusive of administrative, selling and

other costs.










TABLE 3.--Variations in cost for processing, warehousing and selling
Florida citrus fruit juices, excluding sugar, by type of product and
case size, 11 firms, 1959-60 season.


Cost per Case Orange Juice Grapefruit Juice Blended Juice Tangerine Juice
24/2 12/46 24/2 12/46 24/2 12/46 24/2 12/46
----------------------- Number of Firms------------ ----


Under $1.35
$1.35 1.39
1.40- 1.44
1.45- 1.49
1.50- 1.54
1.55- 1.59
1.60 and over
Total Number
of Firms


10 11


10 10


10 11 4


TABLE 4.--Variations in cost for processing and warehousing Florida citrus fruit
juices, excluding sugar, administrative, selling and other costs, by type of
product and case size, 11 firms, 1959-60 season.


Cost per Case Orange Juice Grapefruit Juice
Cost per Case -- 2 --- !- ---
24/2 12/46 24/2 12/46
-----------------------Number


Under $1.25
$1.25- 1.29
1.30- 1.34
1.35- 1.39
1.40- 1.44
1.45- 1.49
1.50 and over
Total Number
of Firms


10 11


10 10


Blended Juice Tangerine Juice
24/2 12/46 24/2 12/46
of Firms--------------------


10 11 4


A comparison of average costs of processing and selling unsweetened juices

in 12/46 cases reveals some cost differences between firms packing large volumes


-











and those packing small volumes. However, some high-cost and some low-cost

firms appeared in each volume group as shown by the distribution in Table 5.


TABLE 5.--Variations in cost of processing, warehousing
and selling orange juice in 12/46 cases, unsweetened,
by total volume of plant, 11 firms, 1959-60 season.

Cost per Case Under 1,500,000 1,500, 000 Cases
12/46 unsweett) Cases I and Over
--------Number of Firms--------

Under $1.45 0 1
$1.45- 1.49 2 1
1.50- 1.54 1 2
1.55- 1.59 1 0
1.60 and over 2 1

Total 6 5



Costs of Processing Citrus Sections


The average costs of processing, warehousing and selling grapefruit sections

and salad sections in 1959-60 were little changed from the level of the preceding

season, except that size 12/46 grapefruit sections were higher. Can costs were

lower for size 24/303, and labor costs for all citrus sections were lower, apparently

due to increased use of peeling machines. However, these decreases were mostly

offset by higher other manufacturing costs (power, maintenance, machine royalties,

depreciation, etc.).








The following costs for sections show the trend in recent years:



Grapefruit Sections Salad Sections
eason 12/46 24/303 24/303


1951-52 $ .. $2.19 $2.48
1952-53 .. 2.23 2.49
1953-54 .. 2.33 2.60
1954-55 3.03 2.23 2.50
1955-56 3.07 2.34 2.72
1956-57 3.23 2.48 2.90
1957-58 3.41 2.60 3.09
1958-59 3.39 2.56 2.96
1959-60 3.53 2.54 2.99



The 24/303 case continues to be the most popular pack for grapefruit and

salad sections. The 12/46 case of grapefruit sections has been used extensively

only a few years. In Table 6, a breakdown of major cost items is shown for the

most popular case sizes and fruit packs of citrus sections.


Costs of Processing Frozen Orange Concentrate


In Table 7, costs for processing and warehousing frozen orange concentrate

are shown for the three most common can sizes--48/6, 24/12 and 12/32. Container

costs are included but selling is omitted because of the difficulty of determining a

comparable figure among firms. The data obtained indicated widely varying sales

costs, a large part of which was often represented by brokerage. Selling costs,

exclusive of brokerage, allowances and brand royalties, from a smaller number of

firms averaged $0.0704 per case of 48/6, $0.0874 for 24/12, $0.1042 for 12/32

and $0.0360 per equivalent gallon.









TABLE 6.---Costs of processing, warehousing and selling
1959-60 season.


Florida citrus sections,


Product
Type of Container
Number of Firms
Cases per Firm
Cost per Case:
Material:
Cans
Cartons
Labels
Total Material
Labor:
Direct Peeling
Sectionizing
Other direct
Total Direct
Indirect
Varehousing and shipping
Total Labor
Other Manufacturing:
Power, lights and water
Maintenance, bldgs. and equip.
Royalties
Depreciation
Manufacturing overhead
Miscellaneous expense
Total Other Manufacturing
Warehousing
Total Processing, Warehousing
Administrative
Selling
Other Costsd
Total Cost, Unsweetened
Sugar
Total Cost, Sweetened


Grapefruit Sections Salad Sections
24/303 12/46 24/303 12/46
10 8 6 5
175,316 57,442 34,269 13,880


$0.7705
.0780
.0523
$0.9008


$0.1462
.5130
.1972


$0.8728
.1128
.0508
$1.0364


$0.1765
.7403
.2909


$0.7770
.0793
.0508
$0.9071


$0.2273
.7377
.2734


$0.8828
.1165
.0532
$1.0525


'.2727
.1174
.3966
.7867
.0516
.0789
.9172


$0
1


$0.8564 $1.2077 $1.2384 $1
.0453 .0768 .0282
.0728 .0834 .0826


$0.9745


$0.0415
.0438
.0549
.0517
.0325
.0573
$0.2817
$0.0357
$2.1927
$0.0544
.0321
.0550
$2.3342
.2056
$2.5398


$1.3679


$0.0742
.0878
.1107
.0665
.0587
.1276
$0.5255
$0.0419
$2.9717
$0.0943
.0465
.0935
$3.2060
.3260
$3.5320


$1.3492


$1


$0.0465
.0615
.0567
.0479
.0241
.0354
$0.2721
$0.0372
$2.5656
$0.0716
.0526
.0759
$2.7657
.2243
$2.9900


$0.0747
.0980
.1121
.0656
.0400
.0662
$0.4566
$0.0423
$3.4686
$0.0979
.0655
.1043
$3.7363
.3446
$4.0809


aIncludes taxes, insurance, rent.
blncludes management and office salaries, office expense, telephone
includes sales salaries, telephone, advertising, travel, but excludes
brokerage, brand royalties, discounts, allowances.
dlncludes advertising tax, inspection fees, operating interest.


and travel.


--









TABLE 7.--Costs of processing and warehousing Florida frozen orange concentrate,
1959-60 season (excludes selling).


Type of Container 48/6 24/12 12/32
Number of Plants 12 12 10
Cases Produced per Plant 946,424 377, 030 107, 855


Cost per Case:
Material:
Cans (lithographed)
Cartons


$1.1055
.0714


$0.7783
.0717


$0.6701
.0911


Total Material
Labor (incl. payroll taxes, ins.):
Direct
Indirect
Warehousing and shipping
Total Labor
Other Manufacturing:
Power, lights and water
Maintenance, bldgs. and equip.
Royalties
Depreciation
Manufacturing overhead
Miscellaneous expense
Total Other Manufacturing
Warehousing
Total Processing, Warehousing
Administrative
Other Costs:
Advertising tax, inspection
Interest
Other deductions
Total Other Costs
Total Cost (Excluding Selling)


$1.1769 $0.8500 $0.7612

$0.1110 $0.1083 $0.1537
.0969 .1008 .1224
.0380 .0375 .0479
$0.2459 $0.2466 $0.3240


$0.0886
.0587
.0790
.0958
.0517
.0397
$0.4135
$0.0812
$1.9175
$0.1438


$0.0994
.0308
.0109
$0.1411
$2.2024


$0.0869
.0577
.0799
.0970
.0530
.0397
$0.4142
$0.0807
$1.5915
$0.1417


$0.0984
.0298
.0063
$0.1345
$1.8677


$0.1156
.0686
.1094
.1042
.0582
.0578
$0.5138
$0.1022
$1.7012
$0.1732


$0.1305
.0439
.0102
$0.1846
$2.0590


aIncludes insurance, taxes, rent.
bIncludes management and office salaries, office


expense, telephone and


travel.


--


- -









The 48/6 and 24/12 cases each contain approximately the same net volume,

which is 25 percent less than that contained in a case of 12/32' s. Therefore, for

an equivalent volume (basis 48/6) the 1959-60 costs compared as followed with

those for 1958-59:



Type of Container 1959-60 1958-59 Difference

48/6 $2.20 $2.10 + $0.10
24/12 (48/6 basis) 1.87 1.82 + .05
12/32 (48/6 basis) 1.54 1.46 + .08



A detailed statement of average per-gallon costs of processing and ware-

housing frozen orange concentrate appears in Table 8. Costs in this table represent

a conversion to equivalent gallons of all containers of frozen orange concentrate,

but exclude the cost of cans, cartons and selling. Itemized costs are arranged by

volume groups with those plants producing under 3, 500,000 equivalent gallons

being compared with the group producing over 3, 500, 000 gallons. The larger

plants showed an over-all cost advantage of $0.0352 per gallon over the smaller

plants. However, the cost differences between the two size groups are smaller

than those that have appeared in some prior years, and are not entirely consistent

by items. The larger plants had somewhat higher costs per gallon for indirect

labor, and thus for total labor, and their insurance-taxes-rents were higher. In

other categories the group of larger plants had slightly lower per-gallon costs.










TABLE 8.--Costs per gallon for processing and warehousing frozen orange concentrate
by volume groups, excluding the cost of cans, cartons and selling, 14 Florida pants,
1959-60 season.


Volume Group (gallons) All Plants Under 3,500, 000
3,500,000 and Over

Number of Firms 14 6 8


Gallons per Plant
Cost per Gallon:
Labor (incl. payroll taxes, ins.):
Direct
Indirect
Warehousing and shipping
Total Labor
Other Manufacturing:
Power, lights and water
Maintenance, bldgs. and equip.
Royalties
Depreciation
Manufacturing overheada
Miscellaneous expense
Total Other Manufacturing
Warehousing
Total Processing, Warehousing
Administrative
Other Costs:
Advertising taxes, inspection
Interest
Other deductions
Total Other Costs


Total Costs (Excluding Selling,
Containers)


3, 855, 865 2, 024, 970 5, 229, 036


$0.0463
.0378
.0162
$0.1003

$0.0375
.0247
.0358
.0395
.0206
.0172
$0.1753
$0.0313
$0.3069
$0.0610


$0.0433
.0117
.0050
$0.0600


$0.4279


$0.0504
.0279
.0181
$0.0964


$0.0397
.0269
.0404
.0407
.0094
.0232
$0.1803
$0.0417
$0.3184
$0.0614


$0.0427
.0170
.0157
$0.0754


$0.4552


$0.0451
.0406
.0157
$0.1014


$0.0369
.0241
.0344
.0391
.0239
.0155
$0.1739
$0.0283
$0.3036
$0.0609


$0.0435
.0102
.0018
$0.0555


$0.4200


aIncludes insurance, taxes and rent.
includes management and office salaries, office
telegraph, travel.


expense, telephone and


--











Volume of output is not the only factor affecting costs and may not be

the most important. There were some plants in the large volume group which had

high costs, and some of the smaller plants which had relatively low costs as shown

by the following comparison:


Total Cost per Gallon
(excluding containers,
selling)


Under $0.35
$0.35- 0.39
0.40- 0.44
0.45- 0.49
0.50- 0.54
0.55 and over

Total


Plants Producing Plants Producing
Under 3, 500, 000 Gallons
3,500,000 Gallons or Over
---------Number of Firms---------

1 2
1 1
1 1
2 2
0 1
1 1
6 8


The average cost per gallon for processing and warehousing frozen orange

concentrate increased 5 percent in 1959-60 over the preceding year. Three plants

had decreased costs, 2 were unchanged and 9 plants had increased total costs in

1959-60. Volume of output for the 14 plants averaged 2 percent lower, with all

but three plants showing some decrease.

The average cost per gallon for processing and warehousing frozen orange

concentrate for the 1959-60 season was approximately 43 cents per gallon. The

record for the past 12 years is as follows:












Cost per Equivalent Gallon Number of Plants
Season (excluding packaging in Sample
materials, selling)

1948-49 $0.465 5
1949-50 .451 8
1950-51 .346 9
1951-52 .326 7
1952-53 .372 9
1953-54 .340 10
1954-55 .328 10
1955-56 .341 9
1956-57 .371 13
1957-58 .461 15
1958-59 .407 16
1959-60 .428 14



Since 1955-56, substantial changes have been made in the sample size and

composition for computing concentrate costs. The broader coverage has resulted

in an average cost figure which can be assumed to be more typical of industry

operations. However, it is apparent that some higher cost plants have been added

which affect the comparability of costs in the last three seasons with those of

1955-56 and earlier years.







OTHER 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 Mimeo Report No. 61-8, February 1961.


2. Costs of Picking and Hauling Florida Citrus Fruits, 1959-60 Season.

Agricultural Economics Mimeo Report No. 61-7, February 1960.


3. A Method of Allocating Citrus Packinghouse Costs.

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


4. The Use of Packing Labor in Florida Citrus Packinghouses.

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


5. Costs for Handling Florida Oranges Shipped in Consumer Bags and in Bulk.

Agricultural Economics Mimeo Report No. 58-12, June 1958.


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

Agricultural Extension Service Economics Series, 61-1, January 1961.


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

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






AHS March 1961
Agr. Econ. Exp. Sta. 950