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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: 1964
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 )
 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 processing, warehousing and selling Florida citrus products.
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 - 31065500
System ID: UF00027701:00017
 Related Items
Succeeded by: Estimated costs of processing, warehousing and selling Florida citrus products

Table of Contents
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        Title page
    Main
        Main 1
        Main 2
        Main 3
        Main 4
        Main 5
        Main 6
        Main 7
        Main 8
        Main 9
        Main 10
        Main 11
        Main 12
        Main 13
        Main 14
        Main 15
        Main 16
        Main 17
        Main 18
Full Text
Agricultural Economics
Mimeo Report EC 66-9
April 1966




COSTS OF PROCESSING,

WAREHOUSING AND SELLING

FLORIDA


CITRUS PRODUCTS

1964-65 SEASON


by
A. H. Spurlock
Agricultural Economist


Department of Agricultural Economics
Florida Agricultural Experiment Stations
Gainesville, Florida









COSTS OF PROCESSING, WAREHOUSING AND SELLING
FLORIDA CITRUS PRODUCTS, 1964-65 SEASON

by
A. H. Spurlock

CONTENTS

Single-Strength Juices . . ** *

Canned Sections and Chilled Citrus Products. . .

Frozen Orange Concentrate. . * *

Citrus By-Products . .. . * * *


Page
2

8

12


Fifteen citrus processing firms operating 18 plants cooperated in

the study for the 1964-65 season. These firms processed 16,786,000

cases of 24/2 equivalent canned single-strength juices, 2,043,000 cases of

24/2 equivalent canned sections, and 61,938,000 gallons of frozen orange

concentrate. The firms in the sample produced about 74 percent of the

Florida output of canned juices, 52 percent of the canned sections and

70 percent of the frozen orange concentrate.

Data for single-strength juice were based on records of 10 firms

and for canned sections on 8 firms. Concentrates were produced by 13

firms in 15 plants. Only 6 of the 15 firms in the sample produced juices,

sections and concentrates.

The summaries following contain only the costs for plant operation,

warehousing and selling the finished products. Fruit cost is not included.

These data- present estimates of industry costs. Year-to-year

changes in these estimates may result both from changes in plant operating


1Calculated from data in the Statistical Summary, Season of
1964-65, Florida Canners Association.


- 1 -








- 2-


conditions and changes in the sample. 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 place the average cost near

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 dif-

ferences shown in cost of identical items for various products. For

example, in Table 2, can costs for size 12/46 orange juice averaged

$0.9184 per case, and for tangerine juice $0.9211; yet cans are identical

for each pack. Such differences may be caused by a change in the number

of firms averaged or in a shift in the volume weight of the firms included

in each group.

Detailed cost data assembled from the cooperating firms were

combined into seven 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. The sugar

cost shown is the average rate per case for those cases sweetened.

Selling costs include brokerage as well as the firms' own sales

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

expense, travel and advertising. The detailed tables show brokerage as a

separate item, since it was not included prior to 1961-62. Discounts,

allowances and brand royalties have been omitted.


Costs of Processing Single-Strength Juices

Average costs of processing, warehousing and selling single-

strength juices in 12/46 cases, excluding the cost of sugar, are shown for

the past 18 years in Table 1. The cost trend over this period has been








-3-


definitely upward but declined slightly from the trend in the years 1953-54

to 1955-56. Costs in 1962-63 and 1963-64 were affected by the reduced

volume of citrus available for processing. The cost was lowered in 1964-65

with operations nearer normal, but was still higher than in any season

before the 1962 freeze.


TABLE l.--Average Cost of Processing, Warehousing and Selling Florida Citrus
Juices, Excluding Sugar, in 12/46 Cases, 1947-48 through 1964-65 Seasons

Orange Grapefruit Blended Tangerine
Season Juice Juice Juice 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
1960-61 1.59 1.57 1.58 1.57
1961-62a 1.57 1.54 1.55 1.55
1962-63a 1.79 1.72 1.74 1.70
1963-64a 1.78 1.72 1.75 1.75
1964-65a 1.66 1.62 1.64 1.65


aCosts include brokerage in selling expense, which was
prior years. Brokerage average $0.0472 per case in 1964-65.


omitted in


Total costs per case for unsweetened orange juice, 12/46, were 6.4

percent lower than in 1963-64. Materials cost increased 1.6 percent but

all other groups were significantly reduced, as would be expected by the

volume increase. The group of "other costs" showed the lowest reduction

because of the advertising taxes included which are a constant rate per

box of fruit.









-4-


A comparison of the change among the principal cost categories

for the past two seasons is as follows:


Cost Group


Orange Juice,
Cost per Case
1963-64 1964-65


12


2/46 (excluding sugar)
Change in Cost Percent
from 1963-64 Change


Materials
Processing labor, taxes, ins.
Other manufacturing expense
Warehousing labor & expense
Administrative and selling
Other costs

Total Non-sweet


$1.0680
.1284
.1921
.1000
.1732
.1167

$1.7784


$1.0848
.1112
.1425
.0827
.1355
.1076

$1.6643


+$0.0168
- .0172
- .0496
- .0173
- .0377
- .0091

-$0.1141


+ 1.6
-13.4
-25.8
-17.3
-21.8
- 7.8

- 6.4


The costs of processing and selling citrus juices unsweetened in

12/46 cases were about 8 to 10 cents per case higher than for 24/2 cases

in 1964-65. However, for an equivalent volume of juice, the costs for

12/46 cases were 24 or 25 cents per case lower than for 24/2 cases. The

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

can sizes for 1964-65 were as follows:


Item


Cost per 24/2 case
Cost 24/2 equivalent
in 12/46 case

Difference
Difference in 1962-63


Orange
Juice

$1.5762

1.3219

$0.2543
.2499


Grapefruit
Juice

$1.5410

1,2881

$0.2529
.2499


Blended
Juice

$1.5534

1.3046

$0.2488
.2388


Tangerine
Juice

$1.5601

1.3133

$0.2368
.2321


Itemized costs of processing single-strength juices

popular can sizes for the 1964-65 season are shown in Table


in the most

2.


---


------


- -








- 5 -


TABLE 2.--Cost per Case by Container Size for Processing, Warehousing and
Selling Florida Citrus Fruit Juices, 10 Plants, 1964-65 Season

Tangerine
Product Orange Juice Juice

Container Size 24/2 12/46 48/6 12/46
Number of Plants 10 10 8 8
Cases per Plant 113,430 401,133 113,208 15,592


Cost per Case


Materials:
Cans
Cartons
Labels
Total Materials
Manufacturing Labor:
Direct
Indirect
Payroll taxes & insurance
Total Manufacturing Labor & Taxes
Other Manufacturing:
Power, lights, water
Maintenance, bldgs. & equipment
Royalties
Depreciation
Taxes, insurance, rent
Miscellaneous expense
Total Other Manufacturing
Total Manufacturing Expense
Warehouse Expense:
Warehouse & shipping labor & taxes
Other warehouse expense
Total Warehouse Expense
Administrative Expensea
Selling Expense:
Brokerage
Other selling expenses
Total Selling Expense
Other Expense:
Advertising tax & inspection
Other (int., misc. deductions)
Total Other Expense
Total Cost Unsweetened
Sugar
Total Cost, Sweetened


$0.9391
.0850
.0643
.1-0884


$0.9184
.1031
.0633
S1.0848


$1.0583
.0620

S1.1203


$0.9211
.1017
.0640
$1.0868


$0.0649 $0.0747 $0.0419 $0.0786
.0220 .0255 .0134 .0238
.0096 .0110 .0059 .0110
$0,0965 $0.1112 $0.0612 $0.1134

$0.0141 $0.0171 $0.0100 $0.0172
.0205 .0261 .0138 .0296
.0382 .0483 .0261 .0491
.0193 .0249 .0120 .0242
.0107 .0126 .0079 .0123
.0116 .0135 .0076 .0139
$0.1144 $0.1425 $0.0774 $0.1463
$1.2993 $1.3385 $1.2589 $1.3465

$0.0528 $0.0550 $0.0388 $0.0569
.0256 .0277 .0241 .0285
$0.0784 $0.0827 $0.0629 $0.0854
$0.0462 $0.0563 $0.0356 $0.0577

.0438 .0503 .0306 .0478
.0230 .0289 .0158 .0256
$0.0668 $0.0792 $0.0464 $0.0734

$0.0664 $0.0838 $0.0442 $0.0666
.0191 .0238 .0134 .0239
$0.0855 $0.1076 $0.0576 $0.0905
$1.5762 $1.6643 $1.4614 $1.6535
.0316 .0392 .0201 .0646
$1.6078 $1.7035 $1.4815 $1.7181


alncludes management and office salaries, telephone, travel, office
expense.
bIncludes sales salaries, telephone, advertising, travel, but
excludes brand royalties, discounts, allowances.







-6-


TABLE,2.--Cost per Case by Container Size for Processing, Warehousing and
Selling Florida Citrus Fruit Juices, 10 Plants, 1964-65 Season (Concluded)

Blended
Product Grapefruit Juice Juice

Container Size 24/2 12/46 48/6 12/46
Number of Plants 9 9 8 8
Cases per Plant 127,499 456,790 116,938 135,664
Cost per Case


Materials:
Cans
Cartons
Labels, adhesives
Total Materials
Manufacturing Labor:
Direct
Indirect
Payroll taxes & insurance
Total Manufacturing Labor
Other Manufacturing:
Power, lights, water
Maintenance, bldgs.' & equipment
Royalties
Depreciation
Taxes, insurance, rent
Miscellaneous expense
Total Other Manufacturing
Total Manufacturing Expense
Warehouse Expense:
Warehouse & shipping labor, taxes
Other warehouse expense
Total Warehouse Expense
Administrative Expensea
Selling Expense:
Brokerage
Other selling
Total Selling Expense
Other Expense:
Advertising tax & inspection
Other (int., misc. deductions)
Total Other Expense
Total Cost Unsweetened
Sugar
Total Cost Sweetened


$0.9378
.0851
.0663
S1.0892


$0.9181
.1023
.0645
S1.0849


$1.0499
.0622
.0006
81.1127


$0.9183
.1031
.0650
$1.0864


$0.0636 $0.0744 $0.0404 $0.0743
.0224 .0265 .0133 .0262
.0096 1.01 .0057 .0108
$0.0956 $0.1120 $0.0594 $0.1113

$0.0140 $0.0177 $0.0096 $0.0177
.0221 .0277 .0146 .0281
.0211 .0265 .0142 .0387
.0192 .0249 .0122 .0249
.0094 .0116 .0069 .0111
.0116 .0134 ,0071 .0130
$0.0974 $0.1218 $0.0646 $0.1335
$1.2822 $1.3187 $1.2367 $1.3312

$0.0513 $0.0526 $0.0390 $0.0537
.0270 .0283 .0247 .0279
$0.0783 $0.0809 $0.0637 $0.0816
$0.0431 $0.0544 $0.0332 $0.0559

.0401 .0443 .0280 .0464
.0191 .0239 .0159 .0243
$0.0592 $0.0682 $0.0439 $0.0707

$0.0609 $0.0770 $0.0402 $0.0805
.0173 .0224 .0130 .0226
$0.0782 $0.0994 $0.0532 $0.1031
$1.5410 $1.6216 $1.4307 $1.6425
.0727 .0895 .0474 .0705
$1.6137 $1.7111 $1.4781 $1.7130


alncludes management and office salaries, telephone, travel, office
expense.
bIncludes sales salaries, telephone, advertising, travel, but
excludes brand royalties, discounts, allowances.






- 7-


Variations in Cost.--Variations among plants in the total cost of

processing, warehousing and selling single-strength unsweetened juices

for 1964-65 are shown in Table 3.


TABLE 3.--Variations in Cost for Processing, Warehousing and Selling Florida
Citrus Fruit Juices, Excluding Sugar, by Type of Product and Case Size,
10 Firms, 1964-65 Season

Cost per Case Orange Grapefruit Blended Tangerine
Juice Juice Juice Juice
24/2 12/46 48/6 24/2 12/46 12/46 12/46
Number of Firms
$1.35 $1.39 0 0 1 0 0 0 0
1.40 1.44 1 0 3 0 0 0 0
1.45 1.49 0 1 1 1 0 0 0
1.50 1.54 2 0 1 4 1 0 1
1.55 1.59 4 1 1 2 1 1 1
1.60 1.64 1 2 1 2 3 3 1
1.65 1.69 2 3 0 0 3 3 2
1.70 1.74 0 2 0 0 1 2 1
1.75 1.79 0 1 0 0 0 0 2
Total No. of Firms 10 10 8 9 9 9 8


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

processing and warehousing unsweetened citrus juices, exclusive of adminis-

trative, selling and other costs. These costs represent only the manu-

facturing and warehousing expenses--materials, labor and plant costs.

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, 10 Firms, 1964-65 Season
Orange Grapefruit Blended Tangerine
Cost per Case Juice Juice Juice Juice
24/2 12/46 48/6 24/2 12/46 12/46 12/46
Number of Firms

$1.25 $1.29 1 1 2 1 0 0 0
1.30 1.34 2 1 3 1 1 1 1
1.35 1.39 3 2 1 5 2 2 2
1.40 1.44 3 2 1 1 3 3 1
1.45 1.49 0 3 1 0 2 2 2
1.50 1.54 1 0 0 1 0 0 1
1.55 1.59 0 0 0 0 1 1 0
1.60 1.64 0 1 0 0 0 0 1
Total No. of Firms 10 10 8 9 9 9 8






- 8,-


Costs of Processing Canned Sections and Chilled
Citrus Products

The trend in the total cost of processing, warehousing and selling

canned grapefruit sections and salad sections for a number of years is

shown in Table 5.

TABLE 5.--Average Cost of Processing, Warehousing and Selling Grapefruit
and Salad Sections by Can Size


1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62a
1962-63a
1963-64a
1964-65a


3.03
3.07
3.23
3.41
3.39
3.53
3.79
3.86
4.27
4.29
3.98


$2.19
2.23
2.33
2.23
2.34
2.48
2.60
2.56
2.54
2.64
2.67
3.04
3.01
2.94


$2.48
2.49
2.60
2.50
2.72
2.90
3.09
2.96
2.99
3.03
3.22
3.58
3.44
3.39


$---











3.30
3.09


aCosts include brokerage in selling expense which was omitted in
prior years. Brokerage for 1964-65 is shown separately in Table 6.


The 24/303 case continues to be the predominant pack for canned

grapefruit and salad sections, being used for three-fourths of the entire

1964-65 output of canned sections. In Table 6, a summary of costs is shown

for several can sizes of processed sections.

Cost summaries have also been prepared for several packs of chilled

grapefruit sections and salad, and for cases of 12/32 oz. chilled orange

juice in glass (Tables 7 and 8). These summaries are based on a smaller

number of firms than for most products shown and, therefore, have the

weaknesses inherent in averaging a small group.







- 9 -


TABLE 6.--Costs of


Processing, Warehousing and Selling Florida Canned
Citrus Sections, 1964-65 Season


Salad
Product Grapefruit Sections Sections
Container Size 24/303 12/46 24/8 24/303
Number of Plants 8 6 3 7
Cases per Plant 213,691 38,745 41,088 16,928
Cost per Case


Materials:
Cans
Cartons
Labels
Total Materials
Labor:
Direct--peeling
Sectionizing
Other direct
Total Direct Labor
Indirect labor
Payroll taxes & insurance.
Total Manufacturing Labor


$0.8184
.0748
.0590
$0.9522


$0.1727
.6423
.2235
$1.0385
.0686
.1213
& Taxes $1.2284


Other Manufacturing:
Power, lights, water
Maintenance, bldgs. & equipment
Royalties
Depreciation
Taxes, insurance, rent
Miscellaneous expense
Total Other Manufacturing
Total Manufacturing Expense
Warehouse Expense:
Labeling & shipping--labor & taxes
Other warehouse expense
Total Warehouse Expense
Administrative Expensea
Selling Expense:
Brokerage
Other selling expense
Total Selling Expense
Other Expense:
Advertising tax and inspection
Other (interest, misc. deductions)
Total Other Expense
Total Cost Unsweetened
Sugar
Total Cost Sweetened


$0.0562
.0617
.0761
.0430
.0229
.0383
$0. 2982


$0.9325
.1044
.0610
$1.0979


$0.1504
.9294
.3120
$1.3918
.0736
.1574
$1.6228


$0.0832
.1164
.1637
.0859
.0434
.0599
$0.5525


$0.6225
.0677
.0429
$0.7331


$0.0491
.3605
.1576
$0.5672
.0200
.0733
$0.6605


$0.0253
.0364
.0486
.0217
.0100
.0293
$0.1713


$0.8183
.0748
.0589
$0.9520


$0.1860
.9009
.2576
$1.3445
.0840
.1508
$1.5793


$0.0561
.0670
.1141
.0517
.0262
.0363
$0.3514


$2.4788 $3.2732 $1.5649 $2.8827

$0.0601 $0.0816 $0.0351 $0.0743
.0221 .0300 .0105 .0230
$0.0822 $0.1116 $0.0456 $0.0973
$0,0457 $0.0942 $0.0249 $0.0579

.0557 .0674 .0426 .0582
.0226 .0303 .0083 .0243
$0,0783 $0.0977 $0.0509 $0.0825

$0.0492 $0.0794 $0.0252 $0.0615
.0189 .0300 .0119 .0204
$0.0681 $0.1094 $0,0371 $0.0819
$2.7531 $3.6861 $1.7234 $3.2023
.1847 .2900 .0957 .1899
$2.9378 $3.9761 $1.8191 $3.3922


aIncludes management and office salaries, office
and travel.


expense, telephone,


bIncludes sales salaries, telephone, advertising, travel, but
excludes brand royalties, discounts, allowances.


I


I


I


r







- 10 -


TABLE 7.--Costs of Processing, Warehousing and Selling Florida Chilled
Citrus Sections, 1964-65 Season

Product Chilled Grapefruit Sections
Container Size 4/1 gal. 12/16 oz. 12/32 oz.
Number of Plants 3 3 3
Cases per Plant 12,444 3,204 22,659


Materials -- containers $0.7974
Labor:
Direct -- peeling $0.3555
Sectionizing 1.1409
Other direct .2394
Total Direct Labor $1.7358
Indirect labor .1333
Payroll taxes & insurance .2488
Total Manufacturing Labor & Taxes $2.1179


Other Manufacturing:
Power, lights, water
Maintenance, bldgs. & equipment
Royalties
Depreciation
Taxes, insurance, rent
Miscellaneous expense
Total Other Manufacturing
Total Manufacturing Expense
Warehouse Expense:
Labeling & shipping--labor & taxes
Other warehouse expense
Total Warehouse Expense
Administrative Expensea
Selling Expense:
Brokerage
Other selling expenses
Total Selling Expense
Other Expense:
Advertising tax and inspection
Other (interest, misc. deductions)
Total Other Expense
Total Cost Unsweetened
Sugar
Total Cost Sweetened


$0.0908
.0768
.1105
.0789
.0324
.1223
$0.5117
A.LA970


.0921
.0662
$0.1583


Cost per Case:
$0.6472


$0.1317
.2846
.0886
$0.5049
.0404
,0751
$0.6204


$0.0237
.0433
.0466
.0289
.0102
.0423
$0.1950
81.4626


.0299
.0214
S0.0513


$0.8547


$0.2571
.6073
.1731
$1.0375
.0805
.1563
$1.2743


$0.0664
.0645
.1002
.0555
.0252
.1009
$0.4127
$2.5417


.0660
.0474
$0.1134


$0.0586 $0.0204 $0.0434

.1144 .0180 .0718
.0560 .0136 .0366
$0.1704 $0.0316 $0.1084

$0.0732 $0.0261 $0.0542
.0411 .0148 .0341
$0.1143 $0.0409 $0.0883
$3.9286 $1.6068 $2.8952
.1654 .1564 .1980
$4.0940 $1.7632 $3.0932


alncludes management and office salaries, office expense, telephone
and travel.
bIncludes sales salaries, telephone, advertising, travel, but
excludes brand royalties, discounts, allowances.


r







- 11 -


TABLE 8,--Costs of Processing, Warehousing and Selling Florida Chilled
Citrus Sections and Juice, 1964-65 Season

d Chilled Chilled
Product I Salad Sections Orange Juice
2 oz.
Container Size 4/1 gal. 12/16 oz. lass32
Number of Plants 3 3 3
Cases per Plant 25,696 169,125 213,958


Materials -- containers
Labor:
Direct -- peeling
Sectionizing
Other direct
Total Direct Labor
Indirect labor
Payroll taxes & insurance
Total Manufacturing Labor & Taxes
Other Manufacturing:
Power, lights, water
Maintenance, bldgs. & equipment
Royalties
Depreciation
Taxes, insurance, rent
Miscellaneous expense
Total Other Manufacturing
Total Manufacturing Expense
Warehouse Expense:
Labeling &,shipping--labor & taxes
Other warehouse expense
Total Warehouse Expense
Administrative Expensea
Selling Expense:
Brokerage
Other selling expenses
Total Selling Expense
Other Expense:
Advqertising tax and inspection
Other (interest, misc. deductions)
Total Other Expense
Total Cost Unsweetened
Sugar
Total Cost Sweetened


S.-1243


Cost per Case
S0.6449


$0.8386


$0.4308 $0.1364 $ ---
1.5729 .4436 ----
.3295 .0917 0.0769
$2.3332 $0.67.17 $0.0769
.1489 .0409 .0249
77AQ .0889 .0115


$2.7590 $0.8015 $0.1133

$0.1402 $0.0325 $0.0111
.0609 .0340 .0147
.0892 .0565 .0220
.0928 .0286 .0549
.0471 .0128 .0149
.1758 .0490 .0158
$0.6060 $0.2134 $0.1334
$4.4893 $1.6598 $1.0853

.0890 .0535 .0523
.0669 .0384 .0548
$0.1559 $0.0919 $0.1071
$0.0712 $0.6246 $0.0355

.1914 .0454 .0403
.0784 .0214 .0351
$0.2698 $0.0668 $0.0754

$0.0772 $0.0314 $0.0620
.0529 .0192 .0266
$0.1~01 $0.,0506 $0.0886


$5.1163
.1013
$5.2176


$1.8937
.0946
$1.9883


$1.3919
.0029
$1.3948


aIncludes management and office salaries,
and travel.


office expense, telephone


blncludes sales salaries, telephone, advertising, travel, but
excludes brand royalties, discounts, allowances.








- 12 -


Costs of Processing Frozen Orange Concentrate

Costs for processing, warehousing and selling frozen orange con-

centrate for 1964-65 are shown for the three most common can sizes in

Table 9.

There was some use in 1964-65 of "multipak" cartons for frozen

orange concentrate. No separate costs are shown for cases of "multipak"

cartons since they seem to differ from the regular case packs principally

in the added carton costs. The "multipak" cartons cost about $0.14 per

case more than the regular carton for the 48/6 size. Labor costs also were

increased slightly.

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

housing frozen orange concentrate appears in Table 10. Costs in this table

represent a conversion to equivalent gallons of all containers of frozen

orange concentrate, but excludes the cost of cans and cartons. Itemized

costs are arranged by volume groups with plants producing under 3-1/4

million gallons of concentrate being compared with the group producing over

3-1/4 million gallons. This arbitrary division to place approximately the

same number of firms in each group obviously includes in the smaller group,

plants large enough to achieve a high degree of efficiency. The firms in

the larger group had lower manufacturing and warehousing costs per gallon,

but slightly higher administrative and selling costs. The total of all

costs for the large-volume group was six cents per gallon less than for

the smaller volume group.








- 13 -


TABLE 9.--Costs of Processing, Warehousing and Selling FloridaFrozen
Orange Concentrate, 42, 11 Firms, 1964-65 SeasonaL4

Container Size 48/6 24/12 12/32
Number of Plants 13 13 10
Cases Produced per Plant 799,123 434,849 100,038


Materials:
Cans (lithographed)
Cartons
Total Materials
Manufacturing Labor:
Direct
Indirect
Payroll taxes & insurance
Total Labor
Other Manufacturing:
Power, lights, water
Maintenance, bldgs. & equipment
Royalties
Depreciation ;
Taxes, insurance, rent
Miscellaneous ..expense
Total Other Manufacturing
Total Manufacturing Expense
Warehouse Expense':
Warehouse labor, payroll taxes, ins.
Other warehouse expense
Total Warehouse Expense
Administrative Expenseb
Selling expense:''
Brokerage
Other selling expense
Total Selling Expensec
Other Expense:
Advertising ta A& inspection
Other (int., misc. deductions)
Total Other Expense
Total Costs


$0.9189
.0600
$0.9789


so.978 $0 715 0. 60


$0.1222
.0734
,0211
$0.2167


$0.0599
.0436
.0756
.0821
.0245
.0859
$0.3716
$1.5672


$0.0395
.0803
S0.1198


$0.1435 $0.1444 $0.1582

.0573 .0539 .0751
.0584 .0601 .0766
$0.1157 $0.1140 $0.1517

$0.1498 $0.1503 $0.1949
.0445 .0411 .0226
$0.1943 $0.1914 $0.2175


Cost per Case

$0.6796
.0619
$0.7415


$0.1209
.0700
.0206
$0.2115

$0.0579
.0420
.0759
.0754
.0237
.0857
$0.3606
$1.3136


$0.0326
.0885
soolill


$0.5823
.0782
$0.6605


$0.1780
.0777
.0281
$0.2838


$0. 2838


$0.0725
.0524
.1072
.0774
.0348
.0756
$0.4199
$1.3642


$0.0498
.0816
$0.1314


$2.1405


$1.8845CX


$2.0230


aThese 11 firms operated 13 plants.
blncludes management and office salaries,
and travel. !i '


office expense, telephone


CExcludes allowances, discounts, brand royalties.


IIIII


--


Z


---


- -~---








- 14 -


TABLE 10.--Cost per Gallon for Processing, Warehousing and Selling Frozen
Orange Concentrate, 420 Equivalent, by Volume Groups, Excluding the
Cost of Cans and Cartons, 13 Florida Firms, 1964-65 Seasona

Under Over
Volume Group (Gallons) All Plants 3,250,000 3,250,000

Number of Plants 15 8 7


Gallons per Plant


4,189,277


2,245,440


6,410,804


Cost per Gallon: (420 Equiv.)


Manufacturing Labor:
Direct
Indirect
Payroll taxes & w/c insurance
Total Labor
Other Manufacturing:
Power, lights, & water
Maintenance, bldgs. & equipment
Royalties
Depreciation
Taxes, insurance, rent
Miscellaneous expense
Total Other Manufacturing
Total Manufacturing Expense
Warehouse Expense:
Warehouse, labor, incl. taxes, ins.
Other warehouse expense.
Total Warehouse Expense
Administrative Expenseb
Selling Expense:
Brokerage
Other selling expense
Total Selling Expensec
Other Expense:
Advertising tax and inspection
Other (interest, misc. deductions)
Total Other Expense
Total Costs


$0.0504
.0283
.0086
$0.0873


$0.0249
.0178
.0347
.0330
.0123
.0347
$0.1574
$0.2447


$0.0160
.0314
$0.0474


$0.0554
.0379
.0100
$0.1033


$0.0315
.0267
.0331
.0442
.0130
.0346
$0.1831.


S0.2864


$0.0196
.0422
$0.0618


$0.0490
.0238
.0081
$0.0809


$0.0223
.0142
.0353
.0286
.0121
.0346
$0.1471
$0.2280


$0.0164
.0253
$0.0417


$0.0640 $0.0510 $0.0692

.0228 .0211 .0233
.0261 .0233 .0273
$000489 $0.0444 $0.0506

$0.0661 $0.0682 $0.0653
.0151 .0204 .0131
$0.0812 $0.0886 $0.0784


$0.4862


$0.5322


$0.4679


aThese 13 firms operated 15 plants.
bIncludes management and office salaries, office expense,
and telegraph, travel.
CExcludes allowances, discounts, brand royalties.


telephone


, ,- ; 1ilL,


I-~-


I







- 15 -


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

not be the most important. There was one plant in the large volume group

which had comparatively high costs and some of the smaller plants which had

relatively low costs as shown by the following comparison:



Total Cost per Gallon, 42 Firms Producing Firms Producing
(Excluding Under 3,250,000 3,250,000 Gallons
Containers) Gallons and Over

Under $0.40 0 2
$0.40 .44 3 1
.45 .49 1 3
.50 .54 1 0
.55 .59 1 0
.60 .64 0 1
.65 and over 2 0
Total 8 7


The average cost per gallon for processing and warehousing frozen

orange concentrate for the 1964-65 season was approximately 68 cents per

gallon 420 equivalent. The record for the past 16 years is as follows:


Cost per 420 Equivalent Gallon
(Excluding Packaging Materials)

$0.465
.451
.346
.326
.372
.340
.328
.341
.371
.461
.407
.428'
.433
.407a
.710a
.684a
.486a


Number of Plants
in Sample

5
8
9
7
9
10
10
9
13
15
16
14
18
14
18
15
15


aIncludes selling; prior years do not


Season

1948-49
1949-50
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


-------







- 16 -


Citrus By-Products

The 16 plants from which citrus by-product costs were obtained for

1964-65 manufactured 219,446 tons of citrus pulp and meal, 36,818 tons of

molasses and 2,097,426 pounds of cold pressed peel oil. The itemized costs

of producing pulp and meal, molasses and oil are shown in Table 11. These

are weighted average costs.

In all the by-products the direct costs of production represent a

large proportion of the total cost. Materials, labor and other manufacturing

expense were about 82 percent of the total production, warehousing and

selling cost for feed; 91 percent for molasses and 86 percent for peel oil.

Warehouse expense was negligible for molasses and oil. Bags, labor, fuel

and power were the largest items of cost in feed production.

Citrus feed average $24.89 per ton for all costs of manufacturing

and selling; molasses $16.11 per ton; and peel oil $0.1425 per pound

(Table 11).

Variation in the total costs by firms for pulp and meal and for

molasses are shown in Table 12. Some of these variations are probably due

to different methods of allocating costs among the various by-products since

the firms do not have the same position or rank in the production of pulp

and of molasses.

Some of the variations are due also to individual items in the

make-up of total cost. In the production of pulp and meal, bags and twine

varied from $3.64 per ton to $5.25, depending partly on whether paper or

burlap bags were used. Manufacturing labor, including payroll taxes and

workmen's compensation insurance, ranged from $2.51 to $11.19 per ton;

power, water, steam and fuel cost from $3.78 to $8.52 per ton; maintenance

and repairs varied from $0.36 to $7.54 per ton; and depreciation on buildings

and equipment from $0.49 to $6.27.








- 17 -


TABLE 11.--Average Costs of Processing, Warehousing and Selling Florida
Citrus By-Products, 16 Plants, 1964-65

Product Pulp and Meal Molasses Peel Oil
Number of Plants 16 5 5
Production per Plant 13,715 tons 7,364 tons 419,485 lbs.
Costs per Unit


Material:
Drums
Bags and twine
Lime and other
Total Material
Manufacturing Labor:
Direct
Indirect
Payroll taxes & insurance
Total Manufacturing Labor
Other Manufacturing Expense:
Power, steam, fuel
Maintenance & repairs
Depreciation
Taxes, insurance, rent
Misc. supplies & expense
Total Other Manufacturing
Total Manufacturing Expense
Warehouse Expense:
Warehouse, labor, taxes, ins.
Other warehouse expense
Total Warehouse Expense
Administrative:
Salaries, incl. payroll tax & ins.
Other administrative
Total Administrative Expense
Selling Expense:
Salaries, incl. payroll tax & ins.
Brokerage
Other selling expense
Total Selling Expense
Other Expensea
Total Cost per Unit


$0.0198


4.37
AA6


$ 4.83 $ ---- $0.0198

$ 2.56 $ 0.94 $0.0269
1.85 .72 .0092
.46 .18 .0031
$ 4.87 $ 1.84 $0.0392

$ 5.66 $ 6.78 $0.0242
1.80 2.58 .0115
1.52 2.25 .0187
.68 .48 .0037
1.10 .71 .0058
$10.76 $12.80 $0.0639
$20.46 $14.64 $0.1229

$ 1.58 $ 0.29 $0.0004
.69 .21 ----
$ 2.27 $ 0.50 $0.0004

$ 0.40 $ 0.26 $0.0004
.23 .20 .0003
$ 0.63 $ 0.46 $0.0007

$ 0.39 $ 0.10 $0.0054
.39 .22 .0098
.23 .09 .0030


$ 1.01
$ 0.52
$24.89


$ 0.41
$ 0.10


$16.11


$0.0182
$0.0003


$0.1425


alnspection taxes and miscellaneous other deductions.








- 18 -


TABLE 12.--Variation in Cost of Processing, Warehousing and Selling Citrus
By-Products, 16 Plants, 1964-65

Citrus Citrus
Cost per Ton Molasses
Pulp and Meal Molasses

Number of Plants Number of Plants
$13.00 14.99 0 1
15.00 16.99 0 2
17.00 18.99 0 0
19.00 20.99 2 2
21.00 22.99 2 0
23.00 24.99 2 0
25.00 26.99 4 0
27.00 28.99 1 0
29.00 30.99 0 0
31.00 32.99 0 0
33.00 34.99 3 0

Total Number of Firms 14a 5

Range in Cost per Ton $20.01 $34.89 $13.35 $20.70

alone firm operated two plants and more than one was combined at
another.