<%BANNER%>
HIDE
 Title Page
 Main














Costs of processing, warehousing and selling Florida citrus products
ALL VOLUMES CITATION SEARCH THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00027701/00020
 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: 1967
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: UF00027701:00020
 Related Items
Succeeded by: Estimated costs of processing, warehousing and selling Florida citrus products

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
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
Full Text

Agricultural Economics
Mimeo Report EC 69-7
-9





COSTS OF PROCESSING,


WAREHOUSING AND SELLING


FLORIDA


CITRUS PRODUCTS


1967-68 SEASON




HUME LI
by
A. H. Spurlock C
Agricultural Economist OCi '

I.F.A.S. Univ


Department of Agricultural Economics
Florida Agricultural Experiment Stations
Institute of Food and Agricultural Sciences
Gainesville, Florida


March 1969


BRARY



. of Florida


--- --










COSTS OF PROCESSING, WAREHOUSING AND SELLING
FLORIDA CITRUS PRODUCTS, 1967-68 SEASON


by
A. H. Spurlock


CONTENTS

Page

Introduction . . . . . . . 1

Single-Strength Juices . . . . . 3
Canned Sections and Chilled Citrus Products . . . 8
Frozen Orange Concentrate . . . . . 12
Citrus By-Products . . . . . . 18



Introduction

Eighteen citrus processing firms cooperated in the study for the 1967-68

season. These firms processed 15,326,000 cases of 24/2 equivalent canned single-

strength juices, 1,910,258 cases of 24/2 equivalent canned sections and salad, and

51,903,000 gallons of frozen orange concentrate. The firms in the sample pro-

duced about 61 percent of the Florida output of canned juices, 51 percent of

the canned sections and 62 percent of the frozen orange concentrate.I/
Data for single-strength juices were based on records of 10 firms; for

canned sections on 8 firms; and for concentrates 15 firms. Only 6 of the 18

firms in the sample produced juices, sections and concentrates.

I/ Calculated from data summarized by Florida Citrus Mutual, Annual Statistical
Report 1967-68, from reports of Florida Canners Association.











The summaries following contain only the costs for plant operation, warehous-

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

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

these estimates may result both from changes in plant operating 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 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 some of the differences shown in cost of identical items for

various products. For example, in Table 2, can-costs for size 12/46 orange

juice averaged $0.9863 per case, and for tangerine juice $0.9784; 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 were combined into several major cost categories for

each product and each 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 firm's own sales department

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

advertising. The detailed tables show brokerage as a separate item; 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 cases of 12/46 ounce cans, excluding the cost of sugar, are shown

for the past 21 years in Table 1. The cost trend over this period has been

definitely upward but declined slightly from the trend in several years of the

period. Costs in some years were affected by the reduced volume of citrus

available for processing.



Table 1.-Average Cost of Processing, Warehousing and Selling Florida Citrus
Juices, Excluding Sugar, in 12/46 Ounce Cases, 1947-48 Through 1967-68


Orang
Season Juice
1947-48 $1.09
1948-49 1.17
1949-50 1.21
1950-51 1.24
1951-52 1.30
1952-53 1.35
1953-54 1.26
1954-55 1.27
1955-56 1.32
1956-57 1.38
1957-58 1.48
1958-59 1.47
1959-60 1.52
1960-61 1.59
1961-62a 1.57
1962-63. 1.79
1963-64a 1.78
1964-65a 1.66
1965-66a 1.75
1966-67a 1.72
1967-68 a 1.91
A/Costs include brokerage in s


e Grapefru
Juice
$1.09
1.17
1.19
1.23
1.31
1.35
1.26
1.27
1.33
1.40
1.50
1.47
1.50
1.57
1.54
1.72
1.72
1.62
1.70
1.68
selling expense1.88
selling expense,


it Blended Tangerine
Juice Juice
$1.09 --
1.15 --
1.19 $1.24
1.23 1.24
1.31 1.32
1.34 1.39
1.26 1.29
1.28 1.33
1.33 1.33
1.39 1.43
1.49 1.47
1.48 1.51
1.50 1.52
1.58 1.57
1.55 1.55
1.74 1.70
1.75 1.75
1.64 1.65
1.74 1.72
1.70 1.69
1.91 1.91
which was omitted prior to 1961-62.







4

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

11.1 percent more in 1967-68 than in 1966-67. Materials cost increased only

2.5 percent, but processing labor increased 33.7 percent, other processing

expense 39.9 percent, warehouse expense 37.0 percent and administrative and

selling, 27.7 percent.

A comparison of the change among the principal cost categories for the

past two seasons is as follows:


Orange Juice, 12/46 (Excluding Sugar)
Cost Per Case Change in Cost Percent
Cost Group 1966-67 1967-68 From 1966-67 Change
Materials $1.1226 $1.1503 $0.0277 2.5
Labor, taxes & insurance .1283 .1716 .0433 33.7
Other manufacturing expense .1283 .1795 .0512 39.9
Warehouse labor and expense .0952 .1304 .0352 37.0
Administrative & selling expense .1203 .1536 .0333 27.7
Other Costs .1213 .1213 .0000 0
Total nonsweet $1.7160 $1.9067 $0.1907 11.1

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

cases were about 9 to 11 cents per case higher than for 24/2 cases in 1967-68.

However, for an equivalent volume of juices, the costs for 12/46 cases were

28 to 30 cents per case lower than for 24/2 cases. The comparative costs for

packing an equivalent 24/2 quantity of juice, unsweetened, in both can sizes

for 1967-68 were as follows:


Orange Grapefruit Blended
Item Juice Juice Juice
Cost per 24/2 case $1.7989 $1.7932 $1.8060
Cost per 24/2 equiv. in 12/46 case 1.5145 1.4922 1.5178
Difference $0.2844 $0.3010 $0.2882
Difference in 1966-67 $0.2837 $0.2857 $0.2838

Itemized costs of processing single-strength juices in the most popular

can sizes for the 1967-68 season are shown in Table 2.









Table 2.--Cost Per Case by Container Size for Processing, Warehousing and
Selling Florida Citrus Fruit Juices, 10 Plants, 1967-68 Season

Product Tangerine
Orange Juice Juice
Container Size 24/2 12/46 48/6 12/46
Number of Plants 10 10 10 4
Number of cases per Plant 83,457 344.066 118.447 7.813
Costs Per Case


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


$1.0278
.0891
n61


$0.9863
.0964
nA7~


$1.1368
.0652
0016


$0.9784
.0922
.0720


$1.1830 $1.1503 $1.2036 $1.1426

$0.0974 $0.1131 $0.0641 $0.1065
.0327 .0408 .0199 .0278
.0148 .0177 .0090 .0159
$0.1449 $0.1716 $0.0930 $0.1502

$0.0180 $0.0228 $0.0118 $0.0211
.0270 .0367 .0158 .0286
.0246 .0326 .0134 .0309
.0398 .0513 .0275 .0815
.0094 .0123 .0064 .0134
.0189 .0238 .0121 .0243
$0.1377 $0.1795 $0.0870 $0.1998
$1.4656 $1.5014 $1.3836 $1.4926

$0.0673 $0.0775 $0.0408 $0.0871
.0465 .0529 .0323 .0550
$0.1138 $0.1304 $0.0731 $0.1421
$0.0512 $0.0654 $0.0382 $0.0649

$0.0544 $0.0644 $0.0366 $0.0599
.0182 .0238 .0128 .0287
$0.0726 $0.0882 $0.0494 $0.0886

$0.0688 $0.0868 $0.0464 $0.0741
.0269 .0345 .0147 .0449
$0.0957 $0.1213 $0.0611 $0.1190
$1.7989 $1.9067 $1.6054 $1.9072
.0449 .0598 .0318 .1201


QUA' ~6?79


S2.0273


a/Includes management and office salaries, telephone, travel, office expense.
b/Includes sales salaries, telephone, advertising,travel,but excludes brand
royalties, discounts, allowances.


Al A^ qA Al .A-- A 6172









Table 2 Cont'd.--Cost Per Case by Container Size for Processing,Warehousing and
Selling Florida Citrus Fruit Juices, 10 Plants, 1967-68 Season.

Blended
Product Grapefruit Juice Juice
Container Size 24/2 12/46 48/6 12/46
Number of Plants 9 9 9 9
Number of Cases per Plant 77.797 522,770 147.038 105,554


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
Depreciation
Royalties on machinery
Taxes, insurance,rent
Miscellaneous expense
Total Other Manufacturing
oae Manu actiring Expense
areiouse Expene 0
Warehouse & shipping labor & taxes
Other warehouse expense
Total Warehouse Expense
Administrative Expensea/
Selling Expense:
Brokerage b/
Other Selling -
Total Selling Expense
Other Expense:
Advertising taxes & inspection
Other (int., misc. deductions)
Total Other Expense
Total Cost Unsweetened
Sugar
Total Cost Sweetened


$1.0296
.0895
.0681
$1.1872


$0.9879
.0963
.0695
$1.1537


$1.1375
.0650
.0015
$1.2040


$0.9909
.0972
.0680
$1.1561


$0.0941 $0.1126 $0.0593 $0.1104
.0346 .0390 .0194 .0406
.0146 .0172 .0082 .0173
$0.1433 $0.1688 $0.0869 $0.1683

$0.0181 $0.0223 $0.0119 $0.0241
.0291 .0368 .0159 .0389
.0273 .0335 .0143 .0330
.0246 .0312 .0166 .0443
.0086 .0109 .0060 .0131
.0180 .0241 .0112 .0236
$0.1257 $0.15.88 $0.0759 $0.1770
$1.4562 $1.4813 $1.3668 $1.5014
$0.0676 $0.0716 $0.0414 $0.0756
.0469 .0529 .0320 .0510
$0.1145 $0.1245 $0.0734 $0.1266
$0.0521 $0.0676 $0.0381 $0.0674

$0.0545 $0.0619 $0.0364 $0.0660
.0187 .0225 .0131 .0242
$0.0732 $0.0844 $0.0495 $0.0902

$0.0683 $0.0860 $0.0448 $0.0872
.0289 .0349 .0157 .0381
$0.0972 $0.1209 $0.0605 $0.1253
$1.7932 $1.8787 $1.5883 $1.9109
.1262 .1586 .0853 .1018


S1 QQL ~ ~7


$1 673


2 0i197


a/- Includes management and office salaries, telephone, travel, office expense.
b/Includes sales salaries, telephone, advertising, travel, but excludes brand
royalties, discounts, allowances.


I


Al ., Q.,A Al.~ l9q lA1








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

warehousing and selling single-strength unsweetened juices for 1967-68 are shown
in Table 3. In Table 4 are shown the variations in cost exclusive of administrative,
selling and other costs. These costs represent only the manufacturing and ware-
housing expenses--materials, labor and plant costs.

Table 3.-Variations in Cost for Processing, Warehousing and Selling Florida Citrus
Fruit Juices,in 12/46 os. Cases. Excluding Sugar, 10 Firms, 1967-68 Season.

Grapefruit Blended Tangerine
Cost Per Case Orange Juice Juice Juice Juice
24/2 12/46 48/6 24/2 12/46 12/46 12/46
Number of Firms
$1.50 $1.54 0 0 1 0 0 0 0
1.55 1.59 1 0 1 0 0 0 0
1.60 1.64 0 0 1 0 0 0 0
1.65 1.69 1 1 3 1 0 0 0
1.70 1.74 1 0 1 2 1 1 1
1.75 1.79 2 1 1 2 1 0 0
1.80 1.84 1 2 1 1 1 2 0
1.85 1.89 1 1 0 0 1 1 2
1.90 1.94 0 0 1 1 1 1 0
1.95 1.99 1 2 0 1 1 1 0
2.00 & over 2 3 0 1 3 3 1
Total 10 10 10 9 9 9 4

Table 4.-Variations in Direct Plant Operating Costs for Processing and Warehousing
Florida Citrus Fruit Juices in 12/46 oz. Cases. 10 Firms, 1967-68 Season.
(Excludes sugar, administrative, selling and other extraneous costs).
Grapefruit Blended Tangerine
Cost Per Case Orange Juice Juice Juice Juice
9LA/ 191/A A /I 1A/1 19/LA 12/i6 12/46


$1.35 $1.39
1.40 1.44
1.45 1.49
1.50 1.54
1.55 1.59
1.60 1.64
1.65 1.69
1.70 1.74
1.75 & over


Number of Firms
0 0 1 0 0 0 0
0 0 1 0 0 0 0
2 2 4 1 1 1 1
2 0 0 2 0 0 0
2 2 1 3 2 2 0
1 1 1 0 2 1 1
1 2 1 1 1 2 1
0 1 1 0 1 1 1
2 2 0 2 2 2 0


Tota 10 10 10 9 9 9 4-^--------


9 9 4


Total


10 10 10 9






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 citrus salad for a number of years is Phown in Table 5.
The cost of pineapples and cherries, if used, is omitted from chilled grapefruit
sections, but is included in chilled salad, and sugar cost is included in all
products.
Table 5.--Average Cost of Processing,Warehousing and Selling Florida Grape-
fruit and Salad Sections by Can Size, 1951-52 Through 1967-68


1951-52 $2.19 $2.48


1952-53 --
1953-54 --
1954-55 $3.03
1955-56 3.07
1956-57 3.23
1957-58 3.41
1958-59 3.39
1959-60 3.53
1960-61 3.79
1961-62a/ 3.86
1962-63A/ 4.27
1963-64a/ 4.29
1964-65a/ 3.98
1965-66a/ 4.01
1966-67a/ 4.02
1967-68a/ 4.48
- Costs include
Brokerage for


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
2.94
3.00
3.27


$4.03
4.08
4.32
4.42
4.93
4.52

4.78
4.63
5.14


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
3.40
3.36
3.65


$4.47
4.85
4.09
4.10
3.85
4.35


$3.30
3.09
3.17
3.00
3.35


brokerage in selling expense which was omitted
1967-68 is shown separately in Tables 6 and 8.


In Table 6 an itemized summary of costs is shown for two can-sizes each of
processed grapefruit sections and citrus salad. Cost summaries have also been
prepared for several packs of chilled salad and sections in Tables 7 and 8, and
for chilled orange juice and grapefruit juice in glass. 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.


--
--







$3.68


3.48
3.63
4.02
years.


$5.22
5.45
5.05
5.80
in prior


--


--








Table 6.--Costs of Processing, Warehousing and Selling Florida
S -A 0S1 1967 Ka CS


eciJ.Uons an. C L eao ---
Product Canned Grapefruit Canned Citrus
Product Sections Salad

Container Size 24/303 12/46 24/303 12/46
Number of Plants 8 6 6 5
Number of Cases Per Plant 170.597 57.108 15.907 8.642
Cost Per Case


Materials:
Cans
Cartons
Labels
Total


$0.8767
.0794
.0693


Materials


Labor:
Direct Peeling $0.2887
Sectionizing .6055
Other Direct .2792
Total Direct Labor $1.1734
Indirect Labor .0470
Payroll Taxes & Insurance .1657
Total Manufacturing Labor & Txs;.$1.3861


Other Manufacturing:
Power, lights, water
Maintenance & repairs
Depreciation
Royalties on machinery
Taxes, insurance, rent
Miscellaneous Expense
Total Other Manufacturing
Total Manufacturing Expense
Warehouse Expense:
Warehouse & Shipping Labor & Txs.
Other Warehouse Expense
Total Warehouse Expense
Administrative Expensea/
Selling Expense:
Brokerage
Other Selling Expense b/
Total Selling Expense
Other Expense:
Advertising tax & inspection
Other (interest, misc. deductions)
Total Other Expense


Total Cost Unsweetened
Sugar
Total Cost Sweetened


$0.0550
.0677
.0425
.0789
.0257
0460i


$0.9876
.1009
A Ar,


$0.8726
.0793
0niAA


$0.9903
.1033
.0600


$1.1538 $1.0165 $1.1536

$0.2537 $0.3319 $0.3442
1.0134 .8193 1.3724
.3835 .3008 .4580
$1.6506 $1.4520 $2.1746
.0801 .0550 .0827
.2653 .1941 .3271


SL990 ~l70ll $2.5844~


$0.0853
.1094
.0464
.1710
.0448
.0919


$0.0483
.0650
.0306
.1195
.0261
.0416


$0.0796
.1178
.0436
.2110
.0456
.0931


$0.3158 $0.5488 $0.3311 $0.5907
$2.7273 $3.6986 $3.0487 $4.3287

$0.0763 $0.0886 $0.0684 $0.1001
.0565 .0504 .0638 .0527
$0.1328 $0.1390 $0.1322 $0.1528
$0.0593 $0.1149 $0.0611 $0.1181

$0.0583 $0.0878 $0.0796 $0.0974
.0240 .0312 .0258 .0326
$0.0823 $0.1190 $0.1054 $0.1300

$0.0579 $0.0898 $0.0659 $0.1032
.0260 .0350 .0215 .0334
$0.0839 $0.1248 $0.0874 $0.1366
$3.0856 $4.1963 $3.4348 $4.8662
.1816 .2828 .2142 .2694
$3.2672 $4.4791 $3.6490 $5.1356


a/ Includes management and office salaries, office expense, telephone, and travel.

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


1 -90 1 1


Canned Citrus









Table 7.--Costs of Processing, Warehousing and Selling Florida Canned Orange
Sections and Chilled Citrus Salad, 1967-68 Season
Canned Chilled Salad
Product Orange
Sections
Container Size 12/46 oz. 4/1 als. 12/32 oz. 12/16 oz.
Number of Plants 4 4 3 3
Number of Cases Per Plant 2.060 1 64,133 132,033 53,831


Materials--Containers $1.1578
Labor:
Direct- Peeling $0.2956
Sectionizing 1.4366
Other Direct .4120
Total Direct Labor $2.1442
Indirect Labor .0852
Payroll Taxes & Insurance .3600
Total Manufacturing Labor & Txsg2.5894
Other Manufacturing:
Power, lights, water $0.0677
Maintenance & Repairs .1154
Depreciation .0260
Royalties on machinery .2055
Taxes, Insurance Rent .0429
Miscellaneous Expense .1228
Total Other Manufacturing $0.5803
Total Manufacturing Expense $4.3275
Warehouse Expense:
Warehouse & Shipping Labor & txs. $0.0839
Other Warehouse Expense .0583
Total Warehouse Expense $0.1422
Administrative Expensea/ $0.1307
Selling Expense:
Brokerage b/ $0.0800
Other Selling Expense- .0227
Total Selling Expense $0.1027
Other Expense:
Advertising tax & inspection $0.1296
Other (interest, misc. deductions) .0104
Total Other Expense $0.1400
Total Cost Unsweetened $4.8431
Sugar .2080
Pineapples & Cherries --


Cost Per Case
_ $0.9399 $0.9084 $0.6885

$0.5763 $0.4512 $0.2303
1.2577 .8580 .4330
.4972 .3697 .1861
$2.3312 $1.6789 $0.8494
.0994 .0722 .0364
.3036 .2319 .1135
$2.7342 $1.9830 $0.9993

$0.0892 $0.0646 $0.0325
.1014 .0825 .0369
.0620 .0618 .0293
.1434 .1261 .0606
.0451 .0240 .0122
.0559 .0501 .0213
$0.4970 $0.4091 $0.1928
$4.1711 $3.3005 $1.8806

$0.0879 $0.0669 $0.0558
.0869 .0661 .0555
$0.1748 $0.1330 $0.1113
$0.0691 $0.0649 $0.0329

$0,1689 $0.1117 $0.0661
.0527 ,0430 .0253
$0.2216 $0.1547 $0.0914

$0.0895 $0.0700 $0.0346
.0747 .0620 .0327
$0.1642 $0.1320 $0.0673
$4.8008 $3.7851 $2.1835
.0797 .0635 .0291
.9174 .1673 .0832


total Cost Sweetened


S5.0511


$5..979 $4.0159 $2.2958


- Includes management and office salaries, office expense, telephone and travel.
b/Includes sales salaries, telephone, advertising, travel, but excludes brand
royalties, discounts, allowances.


---~- ---- -~~~----~











Table 8.--Costs of Processing,Warehousing and Selling Florida Chilled Citrus
Sections, 1967-68 Season

Chilled Chilled
Product Grapefruit Sectios Drange Sections
Container Size 4/1 gal. 12/32 oz. 4/1 gal.
Number of Firms 4 3 4
Number of Cases Per Plant 29.031 26.532 24.170
Cost Per Case


Materials-Containers
Labor:
Direct-peeling
Sectionizing
Other Direct
Total Direct Labor
Indirect Labor
Payroll taxes and insurance
Total Mfg. Labor & Taxes
Other Manufacturing:
Power, lights, water
Maintenance-bldgs.,& equipment
Depreciation
Royalties on machinery
Taxes,insurance,rent
Miscellaneous expense
Total Other Manufacturing
Total Manufacturing Expense
Warehouse Expense:
Warehouse & Shipping Labor & Taxes
Other Warehouse Expense
Total Whse. Expense
Administrative Expense a
Selling Expense:
Brokerage b/
Other Selling Expense -
Total Selling Expense
Other Expense:
Advertising Tax & Inspection
Other (interest,misc. deductions)
Total Other Expense
Total Cost Unsweetened
Sugar
Pineapple, Cherries
Total Cost Sweetened


$0.9385 $0.9047 $0.9359

$0.5435 $0.3478 $0.7002
.9334 .6690 1.3810
.4388 .3042 .5361
$1.9157 $1.3210 $2.6173
.0832 .0574 .1083
,2454 .1760 .3462
$2.2443 $1.5544 $3.0718

$0.0893 $0.0656 $0.0933
.1029 .0749 .1153
.0578 .0583 .0679
.1242 .1146 .1766
.0492 .0243 .0499
.0570 .0429 .0666
$0.4804 $0.3806 $0.5696
$3.6632 $2.8397 $4.5773

$0.0881 $0.0604 $0.1024
.0856 .0618 .0997
$0.1737 $0.1222 $0.2021
$00.604 $0.0594 $0.0745

$0.1710 $0.1028 $0.1698
.0476 .0407 .0520
$0.2186 $0.1435 $0.2218

$0.0890 $0.0656 $0.1033
.0637 .0599 .0759
$0.1527 $0.1255 $0.1792
$4.2686 $3.2903 $5.2549
.0735 .0570 .0774
.0143 ..1441 .0325
$4.3564 S3.4914 $5.3648


a/Includes management and office salaries, office expense, telephone and travel.
-/Includes sales salaries, telephone, advertising, travel, but excludes brand
royalties, discounts, allowances.









Table 9.--Costs of Processing, Warehousing and Selling Florida Chilled Citrus
Juices, 1967-68 Season ,'

Chilled Chilled
Product Orange Juice Grapefruit Juice
Container 12/32 6/64 12/32 6/64
Number of Plants 6 4 5 3
Number of Cases Per Plant 584.759 548.521 123.983 29.587
Cost Per Case


Materials- Containers (glass) $0.8646
Manufacturing Labor:
Direct $0.0907
Indirect .0285
Payroll Taxes and Insurance .0140
Total Mfg. Labor and Taxes $0.1332
Other Manufacturing:
Power, lights, water $0.0232
Iaintenance-Bldgs.,& equip. .0318
Depreciation .0516
Royalties on machinery .0424
Taxes, insurance, rent .0131
Miscellaneous Expense .0384
Total Other Manufacturing $0.2005
Total Manufactruing Expense $1.1983
Warehouse Expense:
Warehouse & Shipping Labor & Taxes $0.0550
Other Warehouse Expense .0584
Total Warehouse Expense $0.1134
Administrative Expense-a $0.0435
Selling Expense:
Brokerage $0.0397
Other Selling Expense-/ .0216
Total Selling Expense $0.0613
Other Expense:
Advertising Taxes & Inspection $0.0611
Other (interest, misc. deductions) .0281
Total Other Expense $0.0892
Total Cost Unsweetened $1.5057
Sugar 0
Total Cost Sweetened $1.5057


$0.7922 $0.8698 $0.7909

$0.0998 $0.1128 $0.0939
.0305 .0322 .0322
.0153 .0170 .0153
$0.1456 $0.1620 $0.1414

$0.0147 $0.0152 $0.0143
.0213 .0251 .0186
.0315 .0452 .0285
.0262 .0222 .0267
.0107 .0104 .0111'
.0263 .0376 .0128
$0.1307 $0.1557 $0.1120
$1.0685 $1.1875 $1.0443

$0.0466 $0.0707 $0.0478
.0502 .0730 .0526
$0.0968 $0.1437 $0.1004
$0.0365 $0.0489 $0.0281

$0.0661 $0.0543 $0.0646
.0212 .0228 .0240
$0.0873 $0.0771 $0.0886

$0.0604 $0.0623 $0.0612
.0274 .0363 .0332
$0.0878 $0.0986 $0.0944
$1.3769 $1.5558 $1.3558
0 .0459 0
37.3769. $1.6017 $1.3558


includes management and office salaries, telephone, travel, office expense.
b/Includes sales salaries, telephone, advertising, travel, but excludes brand
royalties, discounts, allowances.









Costs of Processing Frozen Orange Concentrate

Costs for processing, warehousing and selling frozen orange concentrate
for 1967-68 are shown for the most common can sizes in Table 10. These can-
sizes accounted for over 98 percent of the concentrate packed in cases by the
sample firms. The use of "Multipak" cartons increased this season to about
10 percent of the case pack. "Multipak" costs differed from regular case packs
principally in the added carton costs, which were about $0.14 per case more
for the 48/6 size and $0.18 more for 24/12. Labor costs also were increased
by several cents per case.
In Table 11 are shown costs per gallon of frozen orange concentrate. The
costs per gallon for 450 concentrate are given for direct packing in drums; also
in column 2 is a conversion of all cases and bulk containers to equivalent
gallons of 450 Brix, excluding the cost of cans, cartons and drums. This
conversion includes packaging costs and some other items which may be somewhat
higher per gallon for cases than for drums or bulk containers. However, most
of the cost components in the "equivalent" or converted column are not far
different from the cost of the drum-packed product. Many items, excluding
packaging materials were allocated on a gallon basis. The labor cost per;gallon
averaged 2.25 centslower for drums than for all containers including cases.
Selling and inspection also were slightly lower per gallon packed in drums.
Since orange concentrate is now traded on the futures market in gallons
of 580 Brix in 55 gallon drums a cost is desirable for this product. Not enough
firms showed a separate cost for this concentrate, to give a good basis for an
average. Therefore the costs per gallon shown in Table 11 for 580 Brix equiva-
lent are largely estimated and much less soundly based than the other concentrate
packs which were averages of actual experience by the firm's reporting. It is
hoped that in future summaries costs for this product can be more reliably stated.









Table 10.--Costs of Processing, Warehousing and Selling Florida Frozen Orange
Concentrate n Ca 45, 13 Firms,1967-68 Season
Container Size 48/6 48/6 (24/12') 24/12 12/32
Multipak Multipak
Number of Firms 13 1 8. .13 .. 6' 13
Number of Cases Per Firm 497.324 162.281 4l9.944L1 30.385 80,132
Cost Per Case


Materials:
Cans
Cartons
Total Materials
Manufacturing Labor:
Direct
Indirect
Payroll taxes & insurance
Total Manufacturing Labor
Other Manufacturing:
Power, lights, water
Maintenance & Repairs
Depreciation
Royalties on Machinery
Taxes, insurance,rent
Miscellaneous Expense
Total Other Manufacturing
Total Manufacturing Expense
Warehouse Expense:
Warehouse Labor,Taxes,ins.
Other Warehouse Expense
Total Warehouse Expense
Administrative -
Selling Expense:
Brokerage b
Otaer Selling Expense b/
Total Selling Expense
Other Expense:
Advertising tax & inspection
Other (int. misc.deducts.)
Total Other Expense
Total Costs &/
Includes management and off


$0.9440
0688


$0.9435
) 1 /,


$0.6647
0n79Q


$0.6606
9AfL


$0.5716
0775


'.JU JLP .L'.FN. -
$1.0128 $1.1539 $0.7326 $0.9071 $0.6491

$0.1781 $0.1945 $0.1812 $0.1991 $0.2387
.0682 .0775 .0692 .0825 .0919
.0266 .0286 .0275 .0282 .0373
$0.2729 $0.3006 $0.2779 $0.3098 $0.3679

$0.0708 $0.0695 $0.0714 $0.0705 $0.0924
.0592 .0537 .0593 .0543 .0806
.0730 .0828 .0777 .0839 .0744
.0905 .0996 .0908 .1018 .1179
.0267 .0205 .0267 .0198 .0439
.0503 .0518 .0479 .0449 .0647
$0.3705 $0.3779 $0.3738 $0.3752 $0.4739
$1.6562 $1.8324 $1.3843 $1.5921 $1.4909

$0.0564 $0.0545 $0.0603 $0.0625 $0.0682
.0831 .0907 .0890 .0951 .1005
$0.1395 $0.1452 $0.1493 $0.1576 $0.1687
$0.1180 $0.1251 $0.1092 $0.1266 $0.1577

$0.0585 $0.0492 $0.0605 $0.0450 $0.0820
.0664 .0759 .0630 .0830 .0863
$0.1249 $0.1251 $0.1235 $0.1280 $0.1683

$0.1811 $0.1834 $0.1840 $0.1880 $0.2374
.035 3 .0340 .0408 .0363 .0368
$0.21$4 .0.2174 0.248 0.2243 $0.2742
$2.2550 $2.4452 $1.9911 $2.2286 $2.2598
ice salaries, office expse, telephone and travel.


b/Excludes allowances, discounts, brand royalties.
c/ A small amount of sugar used in some packs has been omitted; 48/6, $0.0071;
48/6 multipak, $0.0274; 24/12, $0.0098; 24/12 multipak, $0.0438.










Table 11l.--Costs of Processing, Warehousing and Selling Florida Frozen Orange
Concentrate, Per Gallon, 14 Firms, 1967-68 Season

Gallon, 45o1 Equivalent i Gallon, 580
in Gallon,451/ in Drums 2/
Drums All Packs-" (ESTIMATED)2/
Number of Firms 14 1 14 --
Gallc'is Produced Per Firm 1.298,118 13,707.367
Cost Per Case


Materials-Drums & liners
Manufacturing Labor:
Direct
Indirect
Payroll Txs. Workmens'Comp.
Total Manufacturing Labor
Other Manufacturing:
Power, lights, water
Maintenance & Repairs
Depreciation
Royalties on machinery
Taxes, insurance,rent
Miscellaneous Expense
Total Other Manufacturing
Total Manufacturing Expense
Warehouse Expense:
Warehouse labor,taxes, ins.
Other Warehouse Expense
Total Warehouse Expense
Administrative-


Selling Expense:
Brokerage
Other Selling Expense V/
Total Selling Expense
Other Expense:
Advertising tax & inspection
Other (int.,misc.deductions)
Total Other Expense
Totilal Costs


0$ 02n 5


Insurance


$0.0590
.0211
nAQ1


$0.0730
.0276
n111


$ 0.766


$0.0802
.0297
.0122


$0.0892 $0.1117 $0.1221

$0.0289 $0.0306 $0.0361
.0265 .0263 .0347
.0197 .0282 .0268
.0399 .0403 .0459
.0272 .0172 .0207
.0231 .0224 .0248
$0.1653 $0.1650 $0.1890
o.2780g $0.2767 i$0.3877

$0.0241 $0.0250 $0.0247
.0262 .0338 .0333
$0.0503 $0.0588 1- $0.0580
$0.0627 $0.0553 $0.0704

$0.0192 $0.0238 $0.0299
.0249 .0280 .0351
$0.0441 $0,0518 $0.0650

$0.0701 $0.0771 $0.1053
.0053 .0123 .0082
$0.0754 $0.0894 $0.1135


. 510in


S0.5320


SU.6946


1/All packs and all concentrations converted to equivalent gallons, 450 Brix,
.,materials or containers excluded.
-Estimated averages from reports of a small number of firms, and from comparison
3/with costs of 450 concentrate.
- Includes management and office salaries, office expense,telephone and travel.
4/Excludes allowances, discounts, brand royalties.


An A71q


Total Costs.











The total cost per gallon for processing, warehousing and selling frozen

orange concentrate for the past twenty years is shown in Table 12. These

costs represent a composite obtained by converting all packs and all con-

centrates to one equivalent.


Tabl. 12vTotal Cost Per Equivalent Gallon for Processing, Warehousing and
Selling Florida Frozen Orange Concentrate, 1948-49 Through 1967-68
Inclusive.

Cost Per Equivalent Number of Plants
Season Gallon (Excluding in Sample
Packaging Materials)
420 450
Brix Brix
1948-49 $0.465a/ 5
1949-50 .451-a 8
1950-51 .346a/ 9
1951-52 .326a/ 7
1952-53 .372,a/ 9
1953-54 .340a/ 10
1954-55 .328a/ 10
1955-56 .341a/ 9
1956-57 .371a/ 13
1957-58 .461a/ 15
1958-59 .407a/ 16
1959-60 .428a/ 14
1960-61 .433- 18
1961-62 .407 14
1962-63 .710 18
1963-64 .684' 15
1964-65 .486 15
1965-66 $0.589 17
1966-67 .456 13
1967-68 .532 14
-'Ks cludes selling.












Citrus By Products


The 13 plants from which citrus by-product costs were obtained for 1967-68
manufactured 223,177 tons of citrus feed, 23,635 tons of molasses and 2,946,543
pounds of peel oil. The itemized costs of producing these by-products are
shown in Table 13. 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
expenses were about 78 percent of the total cost for feed; 86 percent for
mroasses and 87 percent for peel oil. Warehouse expense was negligible for
n.olisses and oil. Bags, labor, fuel and power were the largest items of cost
in feed production. Some feed is sold in bulk which eliminates the cost for
bags.
Citrus feed averaged $26.28 per ton for all costs of manufacturing and
selling; molasses $16.95 per ton; and peel oil $0.1414 per pound (Table 13).

Variation in tbM total costs by firms for citrus feed are shown in Table 14.
Some of these variations are probably due to different methods of allocating
costs among the various by-products, but individual items also fluctuate from
Ufm to firm. In the prodAtion of citrus feed, materials including bags
ans tu',ne varied from $2.47 lar to. to $5.46 depending partly on the type of
basr used. .u wifacturing ltLor, including payroll taxes and workmen's comp-
eviction insurance, ranged from $3.25 to $7.30 per ton; power, water, steam
ar- 2;al cost from $3.73 to $10.21 per ton; maintenance and repairs varied
fro', 0.34 to $4.34 per ton; and fixed operating costs (depreciation, taxes,
insurance, rent) ranged from $1.08 to $3.69 per ton.










Tab.l 13.--ive~ge Costs of Processiug, Warehousing and Selling Florida Citrus
By-Products, 13 Plants, 1967-68 Season

Product Citrus Feed Molasses Peel Oil
Number of Plants 13 4 6
Production Per Plant 17,167 tons 5.909 tons 491,090 lbs.
Cost Per Unit


Materials:
Drums
Bags and twine $3.65
Lime & other .43
Total Materials $4.08
Manufacturing Labor:
Direct $2.84
Indirect 1.67
Payroll taxes & insurance .51
Total Manufacturing Labor $5.02
Other Manufacturing Expense:
Power,ateam, fuel $6.08
Maintenance & repairs 2.03
Depreciation 1.69
Taxes, insurance, rent .67
Miscellaneous supplies & expense .81
Total Other Manufacturing $11.28
Total Manufacturing Expense $20.38
Warehouse Expense:
Warehouse,labor,taxes,insurance $2.03
Othar warehouse expense 1.52
Total Warehouse Expense $3.55
Administrative $0.77
Selling Expense:
Brokerage $0.43
Other Selling Expense .57
Total Selling Expense $1.00
Other Expense a/ $0.58
Total Cost Per Unit $26.28
a/
- Inspection taxes and miscellaneous other deductions.


-- $0.0181


-- ,$0.0181

$1.68 $0.0278
.93 .0126
.27 .0043
$2.88 $0.0447

$6.92 $0.0209
1.41 .0130
1.77 .0138
.30 .0064
1.25 .0061
$11.65 $0.0602
$14.53 $0.1230

$0.08 $0.0002
.09 .0002
$0.17 $0.0004
$1.26 $0.0033


$0.46
.29
$0.75
$0.24
$16.95


$0.0060
.0075
$0.0135
$0.0012
An0 1A1L


----- i '- i n J j. r T ii'ri -r -









Table 14.--Variation in Cost of ProcesSing, Warehouoing and Selling Citrus Feed,
13 Plants, 1967-68 Season

Cost Per Ton Number of Plants

$22.00 $23.99 1
24.00 25.99 3
26.00 27.99 4
28.00 29.99 1
30.00 31,99 3
32.30 & over I --_____.. ... --
Total number of Plants 13

Range in cost per ton $22.40 $34.84
Average cost $26.28


Other Mimeographed Publications Available on Citrus tosti
Department of Agricultural Economics
Florida Agricultural Experiment Stations
Institute of Food and Agricultural Sciences
Gainesville, Florida 32601


1. Cests of Packing and Selling Florida Fresh Citrus Fruics,1967-68 Season.
Agricultural Economics Mimeo Report EC 69-6. Feb. 1969

2. Costs of Picking and Hauling Florida Citrus Fruits, .1967-68 Season.
Agricultural Economics Mimeo Report EC 69-5. Feb. 1969.

3. Thirty-six Years of Citrus Production Costs and Returns in Florida,1931-1967.
Agricultural Extension Service Economic Series 68-6. Nov. 1968.

4. Thirty-five Years of Orange Production Costs and Returns in Florida,1931-1966.
Agricultural Extension Service Economic Series 67-6. Nov. 1967.

5. Cost of Planting and Developing Florida Citrus Groves Through 10 Years of Age.
Agricultural Extension Service Economic Series 65-1. Feb. 1965.







AHS: cl April 1969
Exp. Sta. Agr. Econ. 1,250