Series No. 50-6
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.
COST OF PROCESSING FLORIDA FROZEN
ORANGE JUICE CONCENTRATE, 1948-49 SEASON
J. K. Samuels and H. G. Hamilton
This is a preliminary report on one phase of'the Research and Market-
ing Administration Southern Regional Project, SM-4, "1.erketing Citrus
Fruits". Other phases of the project include studies on the cost of
packing and selling fresh citrus fruit and the cost of processing and
selling single strength citrus juices by the ab6ve named agencies and
cost and margins for handling citrus at the wholesale and retail levels
of trade by the Bureau of Agricultural Economics and the Fruit and
Vegetable Branch, Production and Marketing Administration, U.S.D.A.
University of Florida
Agricultural Experiment Station
May 18, 1950
COST OF PROCESSING FLORIDA FROZEN
ORANGE JUICE CONCENTRATE, 1948-49 SEASON/1
/2 by /
J. K. Samuelsa and H. G. Hamilton/3
In the 1946-47 season less than 500,000 boxes of Florida
oranges were processed to frozen juice concentrate, in the 1947-48
season approximately 1,500,000 boxes and in the 1948-49 season over
8,000,000 boxes. It is believed that more than 16,000,000 boxes
will be used in concentrate form in the 1949-50 season, Because
of the rapid expansion of the concentrate industry there is wide
interest in the cost of processing frozen orange juice concentrate,
The average cost per case of processing frozen orange
juice is given below for five Florida firms for the 1948-49 season.
Most of these firms operated for only a part of the season* The
costs are on a 48/6 case basis which is approximately equivalent
when reconstituted to two 12/404 cases of single strength juice.
There was little variation between the firms in direct
labor cost and warehousing and shipping labor. However, there was
wide variation in indirect labor cost, other manufacturing cost and
administrative cost. The wide variation in these items is probably
due in part to the variation in the length of time which the firms
operated. Furthermore, because most of these firms operated only
a part of the season, the costs may be somewhat different than had
the firms operated a full season.
/1 The authors express their appreciation to the cooperating
firms which made the study possible,
/2 Senior Agricultural Economist, Cooperative Research and
Service Division, Farm Credit Administration, United States
Department of Agriculture, Washington, D. C.
/3 Agricultural Economist, Florida Agricultural Experiment
Average Cost of Processing Frozen Orange Juice Concentrate for Five Firms,
Cases per firm 371,628
Sp f Cost per case
Cost per firm (48/6)
Cans & # .
Cartons # *
Warehouse and shipping
Total . *
Other Manufacturing Cost:
Power, lights and water. ..
Maintenance building and equipment
Royalties. * *
Rent building *
Insurance, taxes, licenses a #
Miscellaneous . *
Total * * *
Total manufacturing .
Management and office salaries ,
Office supplies and expense# .
Auto and travel ,,, .
Interest *. * *
Telephone and telegraph
General expense .. .. .
Total . o *
(Advertising stamps, testing and
inspection, etc.) . .
$ 30,976.54 $0.0834
$ 14;612.57 '0.0393
Q 39,385.32 90.1060
$ 16,521.10 $0.0445
Total cost *. $717,305.08