Title: Estimated cost of handling Florida citrus fruits in fresh and processed form from tree to Chicago wholesale market, 1946-47 through 1950-51 seasons
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Title: Estimated cost of handling Florida citrus fruits in fresh and processed form from tree to Chicago wholesale market, 1946-47 through 1950-51 seasons
Physical Description: Book
Creator: Hamilton, H. G.
Publisher: University of Florida, Agricultural Experiment Station
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Bibliographic ID: UF00074510
Volume ID: VID00001
Source Institution: University of Florida
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Resource Identifier: oclc - 123357425

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Special Report
Agricultural Economics
Series.No. 51-5


University of Florida Agricultural Experiment Station
Gainesville, Florida, Texas Agricultural Experiment Station,
College Station, Texas, and Cooperative Research and Service
Division, Farm Credit Administration, United States Department
of Agriculture, Washington, D. C., Cooperating.






ESTIMATED COST OF HANDLING FLORIDA
CITRUS FRUITS IN FRESH AND PROCESSED
FORM FROM TREE TO CHICAGO
WHOLESALE MARKET, 1946-47 THROUGH 1950-51 SEASONS




by
H. G. Hamilton, J. K. Samuels
and H. W. Little









A Study Conducted with Funds Provided
by the Research and Marketing Act.











University of Florida
Agricultural Experiment Station
Gainesville, Florida
April 3, 1951








ESTIMATED COST OF HANDLING FLORIDA CITRUS FRUITS IN
FRESH AND PROCESSED FORM FROM TREE TO CHICAGO WTHOLE-
SALE MARKET, 1946-47 THROUGH 1950-51 SEASONS

The purpose of this release is to make available to the citrus industry pre-

liminary costs of packing and processing Florida citrus for the 19U9-50 season.

Also shown are packing and canning costs for the three preceding seasons and an

estimate of costs for the current (1950-51) season. Freight rates from Lake Wales

to Chicago and an estimate of picking and hauling costs have also been included in

order to indicate the approximate cost of handling from the tree through the pack-

ing or processing plant to a terminal market. The preliminary packing and process-

ing costs for the 1949-50 season are based on costs of 29 packinghouses, 12.canning

plants and 7 plants that process frozen citrus concentrate. Final packing and
processing costs for the 1949-50 season based on a larger number of firms will be

issued later this year. A more complete analysis of costs by type of container and

by size and type of firm will be made at that time.

Preliminary figures indicate that packing and selling costs for oranges and

grapefruit in 1-3/5 bruce boxes averaged 91 and 81 cents, respectively, for the

1949-50 season. This cost is from six to nine cents higher for each type of fruit
than the cost in this container during each of the three preceding:aedsons.

Increases in the cost of labor, other operating, administrative and selling and

other costs all contributed to the increase in the total figure. Indications are

that increases in the cost of material, labor and other operating costs during the

1950-51 season have further increased total packing and selling costs by an
estimated eight cents in 1-3/5 bruce boxes. YWhen the cost of picking and hauling

and freight is included the cost of handling in 1-3/5 bruce boxes from Lake Wales

to Chicago is $2.0O for oranges and $2.10 for grapefruit for the 1949-50 season.

Comparable figures for the 1946-47 season are $1#92 and $1.69. Increases in freight

rates of 39 cents per box on oranges and 35 cents per box on grapefruit during this

period accounted for much of the overall increase.








-3-


Estimated Cost of Handling Florida Oranges and Grapefruit in 1-3/5
Bruce Boxes from Tree to Chicago Wholesale Market, 1946-47 through
1950- 1 Seasons.......
-? ..Probable
Season' 1946-47 1947-48 1948-49 1949-50 1 1950-51

Oranges
Number of packinghouses 6 66- -68 .29
Cents Cents Cents Cents .Cents
Packing & selling:
Material 37 39 37 37 41
Labor 20 20 19 21' 2
Other operating 9 8 8 10 11
STotal packing cost 66 67 64 68 76
Administrative & selling 8 8 9 11 11
Other cost 8 10 10 12 12
Total cost b 91 .. .,99,.
Freight Lake Wales to Chicago 80 80 111 119 3/ 119 3/
Picking & hauling 2/ 30, 30 30 30 -. 35,
Total .192 195 224 2L0 253

Grapefruit
Number of packinghouses 67 63 67 29 -
Cents Cents Cents Cents tents
lln --' -- ----- -'-"--
Packing & selling
Material 37 38 37 36 40
Labor 17 16 16- 17 20
Other operating 6 6 6 8 9
Total packing cost 60 60 59 61 69
Administrative & selling 8 7 7 11 11
Other cost 7 7 9 .. 9
Total cost 75 74 .73. 81 .89
Freight Lake Wales to Chicago 69 3/ 69 3/ 96 3/ 104 3/, / .10 3//:.
Picking & hauling/ 2 ,25 2 2 2. 30
Total 169 168 194 210 223
/ Preliminary
!/ Estimate based on usual charge for picking, field foreman, goating and average
haul to packinghouse.
3/ Effective dates of rates per case for seasons shown are: June 30, 1946, November
1, 1948, November 15, 1949 and November 1, 1950, respectively,
i/ A lower competitive truck rate based on higher minimum carload weights was in
effect but subject to suspension.






-4-


The preliminary cost of processing, warehousing and selling unsweetened single

strength orange juice in 12/404 cases was $1.28 for the 1949-50 season compared

with a cost of $1.05, $1.09 and $1.17, respectively, for the three seasons from

1946-47 through 1948-49. Increases in the cost of material, other manufacturing,

and administrative and selling costs appear to be largely responsible for the over-

all increase. It is estimated that increases in the cost of materials, labor and

other manufacturing costs during the 1950-51 season have further increased the cost

of canning single strength juice in 12/404 cases by as much as 17 cents per case.

The addition of picking and hauling and freight costs brings the cost for handling

and processing orange juice from the tree to Chicago to $2*11 per 12/404 case for

the 1949-50 season compared with $1.69 during the 1946-47 season. Processing,

warehousing and selling costs for natural juice increased 23 cents and freight rates

from Lake Wales to Chicago 18 cents per case during this period.

Estimated Cost of Processing and Handling Florida Orange Juice in 12/404
Cases from Tree to Chicago Wholesale Market, 1946-47 through 1950-51
Seasons.

Probable
Season 1946-47 1947-48 1948-49 1949-50 1950o-51l
Number of firms 26 23 23 12
tents Cents Cents Cents Cents
Processing, warehousing & selling:
Material 64 70 75 79 93
Labor 14 12 12 14 16
Other manufacturing cost 15 15 17 19 20
Total processing & warehouse cost 93 97 104 112 129
Administrative & selling cost 10 9 10 13 13
Other cost 2 3 3 3 3
Total cost Natural 105 109 117 128 145
Sugar 7 4 4 8 6
Total cost Sweetened 112 113 121 136 151
Freight Lake Wales to Chicago* 27 27 40 45 45
Picking & handling,*** 30 3 30 30 35
Total 169 170 191 211 231
Preliminary
** Shipping weight per 12/404.case 442 pounds. Effective dates of rates per case
for the seasons shown are: June 30, 1946, November 1, 1948, November 1, 190L
and November 1, 1950, respectively.
w* Estimate based on usual charge for picking, field foreman, goating and average
haul to packinghouse or processing plant,








The preliminary cost of processing, warehousing and selling frozen orange juice

concentrate is $2.67 per 48/6 case for the 1949-50 season, compared vi.th an average

cost of $1.93 for the 1948-49 season. Material, labor, other manufacturing, admin-

istrative and selling and other costs were all higher during the 1949-50 season.

The extremely large increase in administrative and selling cost is accounted for

largely by increases in the amount spent for advertising. The approximate cost of

processing and handling from Lake Wales to Chicago during the 1949-50 season was

$3.76 per 48/6 case. Increases in the cost of materials, labor and other expenses
will possibly increase the cost for the 1950-51-season to an estimated $3.95 per

48/6 case.

Estimated Cost of Processing and Handling Florida Frozen Orange Juice
Concentrate in 48/6 Cases from Tree to Chicago WJholesale Market,
1948-49 through 1950-51 Seasons.

Season 1948-49 1949-50o* Probable
1950-51
Number of firms 5 7 -
Cents Cents Cents
Processing, warehousing & selling:
Material 89 94 108
Labor 34 37 42
Other manufacturing cost 55 51 51
Total processing & warehouse cost 178 182 201
Administrative & selling cost 11 78 78
Other cost 4 7 7
Total cost 193 267 286
Freight Lake 7Hales to Chicago;*- 44 9 39
Picking & hauling-;;-- 60 60 70

Total 297 376 395
Preliminary.
-:- Shipping weight per 48/6 case, 28 pounds. Effective dates of rates per
case for the seasons shown are: November 1, 1948, November 1, 1949 and
November 1, 1950, respectively.
;H-S Estimated based on usual charge for picking, field foreman, goating and
average haul to packinghouse or processing plant.

}1.7L:fw:bjb 4/16/51
150 copies
Exp. Sta., Ag. Ec.




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