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 Title Page
 Preface
 Table of Contents
 Purpose
 Fresh citrus fruit
 Processed citrus products
 Definition of terms
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Group Title: Cost of handling Florida and Texas citrus fruits in fresh and processed form, ... season.
Title: Cost of handling Florida and Texas citrus fruits in fresh and processed form, 1951-52 season.
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 Material Information
Title: Cost of handling Florida and Texas citrus fruits in fresh and processed form, 1951-52 season.
Series Title: Cost of handling Florida and Texas citrus fruits in fresh and processed form, ... season.
Alternate Title: Special report - Dept. of Agricultural Economcs. University of Florida ; 54-5
Physical Description: Serial
Creator: Marketing Research Act
Publisher: University of Florida, Agricultural Experiment Station.
Publication Date: 1951-1952
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Bibliographic ID: UF00076935
Volume ID: VID00003
Source Institution: University of Florida
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Resource Identifier: oclc - 164845076

Table of Contents
    Title Page
        Page 1
    Preface
        Page 2
    Table of Contents
        Page 3
    Purpose
        Page 4
    Fresh citrus fruit
        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
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
    Processed citrus products
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
    Definition of terms
        Page 42
        Page 43
    Advertising
        Page 44
        Page 45
Full Text

OCT 23 'S53


Agricultural Economics Mimeo Report 54-5






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







COST OF HANDLING FLORIDA CITRUS FRUIT

IN FRESH AND PROCESSED FORM

1951 1952







A Study Conducted with Funds Provided
by the Reasearch Marketing Act







University of Florida
Agricultural experiment Station
Gaineeville, Florida
September 1, 1953











PREFACE


This is a report of one phase of Southern Regional Project SM-4,

"Marketing Citrus Fruits". The costs of packing and processing citrus fruits

in Florida during the five seasons 1946-47 to 1950-51.have been published pre-

viously. A study of the margins paid for wholesaling and retailing citrus

fruits and citrus fruit products and of the factors affecting these margins,

being conducted by the Bureau of agricultural Economics and the Fruit and

Vegetable Branch of the Production and Marketing Administration, United States

Department of Agriculture, is another phase of this project. Currently the

Agricultural Economics Department of the Florida Agricultural Experiment

Station is making an analysis of the arrangement and use of equipment in

fresh fruit packinghouses and of the time and labor used in handling the

fruit from the tree through the packinghouse. Later publications will in-

clude the results of studies now under way.

This report was prepared by:

Eric Thor, Associate Agricultural Economist, J. L. Tennant, Visiting
Economist, and H. G. Hamilton, Agricultural Economist and Head,
Department of Agricultural Economics, Florida Agricultural Experiment
Station, University of Florida, Gainesville, Florida.

C. K. Baker, Agricultural Economist, and J. K. Samuels, In Charge,
Fruit and Vegetable Section, Cooperative Research and Service Division,
Farm Credit Administration, U. S. Department of Agriculture, Washing-
ton 25, D. C.












CONTENTS


Page


PURPOSE

FRESH CITRUS FRUIT

Trends in Packing and Selling Costs .

1951-52 Costs of Packing and Selling .

1951-52 Costs of Packing . . .

Containers and Packing and Selling Costs .

Containers and Packing Costs . .

Volume and Costs . . . .

Type of Firm and Costs . . .


* . S * S

S S S S S


PROCESSED CITRUS PRODUCTS

Cost of Processing, Warehousing and Selling Citrus Juices

Variation in Processing, Warehousing and Selling Costs .

Volume and Cost of Processing, Warehousing and Selling .

Cost of Processing, Warehousing and Selling Citrus Sections.

Cost of Processing, Warehousing and Selling Frozen Orange
Concentrate . . . . . .

DEFINITION OF TEMS . . . . . .

OTHER PUBLICATIONS AVAILABLE . . . . .


. . . .











COST OF HAI DLING FLORIDA CITRUS FRUITS IN FRESH
AND PROCESSED FORM, 1951-52.

Purpose


The purpose is to give the citrus industry and others who have an

interest in the problem:

1) The trends in handling costs.

2) The 1951-52 cost of packing and selling fresh
citrus fruit by kind of fruit and type of package.

3) The 1951-52 cost of proce-cing and selling citrus
fruit juices, salads and concentrates.

This report presents an analysis of 1951-52 costs based on detailed

data furnished by 67 fresh fruit packers, 14 canning plants and seven

concentrate plants in Florida.











FRESH CITRUS FRUIT

Trends in Packing and Selling Costs


The volume of Florida oranges sold for frech consumption has been

relatively stable since the perfection of frozen concentrate. The total

volume of oranges marketed through fresh channels in the 1945-46 season

was 30,280,000 boxes. The 1951-52 season volume was 30,643,000 boxes,

Figure 1. The fresh sales of Florida grapefruit increased from 9,724,000

boxes in the 1945-46 season to 19,172,000 boxes in the 1951-52 season,

Figure 1. Most of this increase can be associated with the decrease in the

production of Texas grapefruit. The year to year sale of Florida tangerines

for fresh consumption varied less than either oranges or grapefruit. The

1945-46 season volume was 3,684,000 boxes, while the 1951-52 season volume

was 3,473,000, Figure 1.

The cost of packing and selling Florida oranges in 1-3/5 bushel bruce

boxes rose from $0.8279 in the 1946-47 season to $0.9111 in the 1951-52

season. Grapefruit increased from $0.7545 to $0.8487, and tangerines in-

creased from $1.1579 to $1.3994, Table 1.

Table l.-Cost of Packing and Selling Florida Oranges and
Grapefruit in 1-3/5 Bushel Bruce Boxes, and Tangerines
in 4/5 Bushel Bruce Boxes, 1946-47 to 1951-52.
Cost per 1-3/5 bushel

Fruit : 1946-47 : 1947-48 : 1948-49 : 1949-50 : 1950-51 : 1951-52

Oranges $0.8279 $0.8421 $0.8330 $0.8785 $0.9166 $0.9111

Grapefruit .7545 .7323 .7359 .8046 .8196 .8487

Tangerines 1.1579 1.1812 1.1916 1.2491 1.4250 1.3994

















Volume of Florida Citrus Fruit Sold
for Fresh Consumption


S--oranges









S--grapefruit


tangerines
--I


4 6-4 7 4 y~- 4 84 94 0 5 1 5


Figure 1.


20


0


50-51 51-52


47-48


46-47


48-49 49-50








1951-52 Costs of Packing and Sellingi/

The greatest single item in the cost of packing and selling citrus for

fresh consumption is cost of materials. For oranges packed in 1-3/5 bruce

boxes, material cost equaled 45.6 percent and labor 24.5 percent of the total

cost of packing and selling. For grapefruit, in 1-3/5 bruce boxes, material

and labor costs were 49.2 and 21.8 percent, respectively. Material and labor

costs for tangerines in 4/5 bruce boxes made up 47.0 and 28.6 percent respect-

ively of the total packing and selling cost. Costs of packing and selling

Florida citrus by type of container are shown in Table 2.

Oranges.--The 1951-52 total per box cost of oranges in 1-3/5 bruce con-
tainers was $0.91. Sixty-two of the 67 packinghouses studied used the 1-3/5

bruce container. Oranges packed in 1/2 box or 40-pound bags cost $0.80, which

was $0.11 less than the bruce box; and those packed in 1/4 box or 20-pound bags

cost $0.91, which was the same as the cost of 1-3/5 bruce. Packing and selling

costs of oranges packed in other containers were slightly higher. Eight-pound

bags cost $1.11 or $0.20 more and 5-pound bags cost $1.34 or $0.43 more than

the bruce box. Oranges packed in 1-3/5 standard wrapped boxes cost $1.25, which

was $0.34 higher than the 1-3/5 bruce box cost. The difference in cost for

the different containers was due to variations in the cost of materials and

labor.

Grapefruit.--Sixty-two of the 67 packinghouses studied packed grapefruit

in 1-35 bruce containers. The average cost to pack and sell the 1-3/5 bruce

boxes was $0.85. The 1/2 box or 40-pound bag and the 1/4 box or 20-pound bag

cost $0.70 and $0.82, respectively. These costs were $0.15 and $0.03 less than

i/ Cost for all kinds of containers are computed and used throughout the
publication on the basis of a 1-3/5 bushel box equivalent.








the cost to pack and sell in 1-3/5 bruce containers. The other containers

handled cost more than the 1-3/5 bruce box and averaged $1.05 for 8-pound and

$1.27 for 5-pound bags, and $1.19 for 1-3/5 standard wrapped boxes. Thus the

8-pound and 5-pound bags cost $0.20 and $0.42 more than the 1-3/5 bruce box.
The standard wrapped box cost to pack and sell was $0.34 cents more than for

the 1-3/5 bushel bruce box.

Tangerines.--The cost of packing and selling 1-3/5 bushels of tangerines
in 4/5 bruce boxes averaged $1.40 for 47 firms. In 4/5 bruce flat containers

the cost was $1.36 and in 4/5 standard boxes it was $1.51.

Table 2.-Cost of Packing and Selling Florida Citrus Fruit by
Type of Container, 67 Packinghouses, 1951-52.


Oranges
1-3/5 1-3/5 1/2 Box 1/4 Box 8-1b. 5-1b.
Type of Container Bruce Std.Box Mesh Mesh Mesh Mesh
Box Wrapped Bag Bag Bag Bag
Number of packinghouses 62 18 38 39 46 40
1-3/5 boxes per firm 144,161 64,567 1169 1,550 18,291 21,587
Costs per 1-35 bushel:
Material $0.4152 $0.6341 $0.2946 $0.3981 $0.5489 $0.7530
Labor:
Receive, truck, dump .0314 .0340 .036 .0360 .0395 .0402
Crate making & labeling .0321 .0362 .0082 .0101 .0076 .0071
Foreman, graders, others .0522 .0760 .0592 .0662 .0710 .0768
Wrap & pack .0611 .1081 .0709 .0775 .0994 .1202
Truck, check, load .0344 .0255 .0440 .0446 .0611 .0613
Payroll taxes .0120 .0174 .0123 .0114 .0112 .0112
Total labor .2232 .2972 .2306 .2458 .2898 .3168
Other direct operating .0470 .0572 .0457 .0486 .0598 .0607
Indirect operating .0304 .0379 .0273 .0289 .0331 .0344
Total packing .7158 1.0264 .5982 .7214 .9316 1.1649
Administrative & Selling .0867 .1095 .0930 .0838 .0758 .0788
Adv., inspection, other .1086 .1167 .1059 .1078 .0995 .1007
Total packing and
selling $0.9111 $1.2526 $0.7971 $0.9130 $1.1069 $1.3444









Table 2.-Cost of Packing and Selling Florida Citrus Fruit by Type
of Container, 67 Packinghouses, 1951-52.
(Concluded)


Grapefruit


Type of Container


Number of packinghouses
1-3/5 boxes per firm
Costs per 1-3/5 bushel:
Material
Labor:
Receive, truck, dump
Crate making & labeling
Foreman, graders, others
Wrap & pack
Truck, check, load
Payroll taxes
Total labor
Other direct operating
Indirect operating
Total packing
Administrative & selling
Adv., inspection, other
Total packing &
selling


1-3/5
Bruce
In/w,


62
106,689


1-3/5 1/2 Box
Std.Box Mesh
Wrapped Bag
18 13
94,024 1,856


$0.4172 0$.6221 t0.2631


.0265
.0318
.0372
.0470
.0337
.0092
.1854
.0410
.0287
.6723
.0794
.0970


.0312
.0393
.0533
.0791
.0247
.0142
.2418
.0474

.9467
.1187
.1251


.0296
.0119
.0428
.0576
.0437
.0079
.1935
.0427
.0253
.5246
.0714
.0990


1/4 Box
Mesh
Bag
10
258


8-1b.
Mesh
Bag
37
7.950


7,950


0.1870 O0.5976


.0360
.0054
.0569
.0596
.0395
.0066
.2040
.0437
.0274
.6621
.0689
.0894


.0362
.0076
.0487
.0909
.0613
.0084
.2531
.0537
.0308
.87527
.0770
.0945


$0.8487 $1.1907 $0.6950 $0.8204 $1.0467 $1.2670


5-1b.
Mesh
Bag
35
5 701


A~O7'~7O


.0327
.0094
.0505
.1132
.0561
.0096
.2715
.0540
.0336
1.0961
.0768
.0941


Tangerines

Type of Container 4/5 Bruce 4/5 Bruce Flat 4/5 Standard
Number of packinghouses 47 12 11
1-3/5 boxes per firm 21547 20,473 3,052
Cost per 1-3/5 bushel:
Material $0.6582 $0.6728 $0.7680
Labor:
Receive, truck, dump .0464 .0536 .0455
Crate making & labeling .0662 .0524 .0713
Foreman, graders, others .0855 .0845 .1019
Wrap & pack .1140 .1159 .1333
Truck, check, load .0697 .0618 .0743
Payroll taxes .0179 .0164 .0114
Total labor .3997 .3846 .4377
Other direct .0739 .0529 .0453
Indirect operating .0527 .0351 .0326
Total packing 1.1845 1.1454 1.2836
Administrative & selling .0792 .0983 .0719
Adv., inspection, other .1357 .1152 .1519
Total packing & selling $1.3994 $1.3589 $1.5074


10.7170


.... I


=-I~









1951-52 Costs of Packing

Packing cost includes such items as material, labor, direct operating,

and indirect operating costs. The average cost to pack oranges per 1-3/5

bushel in 1-3/5 bruce containers was $0.72. In 1/2 box bags the cost was $0.12

less than the 1-3/5 bruce and in 1/4 box bags it was $0.01 more. The cost to

pack 8-pound bags was $0.93 or $0.22 more than 1-3/5 bruce containers, to pack

5-pound bags it was $1.16 or $0.45 more, and to pack 1-3/5 standard wrapped

boxes the packing cost was $1.03 or $0.31 more.

The cost of packing grapefruit in 1-3/5 bushel equivalent for each

type of container was less than that of oranges. The cost to pack grapefruit

in 1/2 box bags was $0.52. This was $0.15 less than $0.67, the cost to pack

in 1-3/5 bruce boxes. The cost of 1/4 box bags was also less than the 1-3/5

bruce box by $0.01. Eight-pound bags cost $0.88 or $0.20 more, 5-pound bags

were $1.10 or $0.42 more, and 1-3/5 standard wrapped boxes averaged $0.95 or

$0.27 more than the 1-3/5 bruce containers.

The cost of packing tangerines was $1.18 per 1-3/5 bushel in 4/5 bruce

boxes, $1.15 in 4/5 bruce flat containers and $1.28 in 4/5 standard boxes.

In packing oranges and grapefruit most of the differences in cost of

the various kinds of containers were accounted for by the price of the con-

tainer and the labor required to handle and pack the fruit. However, with

tangerines most of the differences are due to container price and costs other

than labor, except in the case of 4/5 standard boxes which have higher labor

costs than the 4/5 bruce and 4/5 bruce flat boxes.








Containers and Packing and Selling Costs

The cost of packing and selling'oranges ranged from less than $0.6999
in 1/2 box bags packed by two firms and in 1/4 box bags for one firm to $1.45

and over for 12 firms, 10 of which were using 5-pound bags. The cost of

packing and selling grapefruit varied from under $0.6500 for one firm packing

in 1/2 box bags to $1.30 and over for 12 firms packing in 5-pound bags.

Tangerines ranged from less than $1.10 per 1-3/5 bushel for one firm which

packed in a 4/5 bruce box to $1.60 and over for three firms packing in 4/5

bruce, and for five firms packing in 4/5 standard boxes, Table 3.

Oranges.--The cost of packing and selling oranges in 1-3/5 bruce boxes
varied from $0.75 for one firm to $1.40 and over for another firm. Forty-

five of the 62 firms packing 1-3/5 bruce boxes had costs ranging from $0.80

to $1.00. In 1-3/5 standard unwrapped boxes the cost ranged from $0.95 to

$1.35 for 13 firms. For 1-3/5 standard wrapped boxes the cost varied from
$0.90 to $1.45 and over with 16 of the 18 firms having costs from $1.05 to

$1.40.

Oranges packed in 1/2 box bags had the lowest range of costs. They

varied from $0.65 to $0.95 for 38 firms, 29 of which had costs of from $0.75

to $0.90. Costs for 1/4 box bags ran from $0.65 to $1.25 for 39 firms with

25 firms falling within the groupings from $0.85 to $1.00. Eight-pound bag

costs varied from $0.90 to $1.45 and over for 46 firms, with 26 firms ranging

from $1.10 to $1.25 in cost.

Costs for oranges were highest in 5-pound bags and varied from $1.15 to

$1.45 and over for 40 firms. Twenty-six of these packinghouses had costs

above $1.35 per 1-3/5 bushel.








Grapefruit.--In 1-3/5 bruce boxes, the packing and selling costs ranged
from $0.70 for one firm to $1.10 for another firm with 49 of the 62 firms
having costs of from $0.75 to $0.95. Costs for 1-3/5 standard unwrapped
containers, were from $0.85 to $1.25 at 11 firms. Eighteen packinghouses fell
into groups between $0.95 and $1.25 for 1-3/5 standard wrapped grapefruit.
For 1/2 box bags the cost ranged from under $0.65 to $0.85 for 13 packing-
houses, and for 1/4 box bags the cost ranged from $0.70 to $0.95 for 10 firms.
Thirty-seven firms packing 8-pound bags ranged from $0.85 to $1.25 in cost
with 23 falling between $0.95 and $1.10. Five-pound bags ranged in cost from

$1.10 to $1.30 and over for 35 firms, of which 29 were $1.20 and over.
Tangerines.--The cost to pack and sell 1-3/5 bushels of tangerines in
4/5 bruce boxes varied from under $1.10 to $1.60 and over for 47 firms. Thirty
of these firms fell into groupings ranging from $1.30 to $1.50. In 4/5 bruce
flat boxes the cost for 12 firms ranged from $1.20 to $1.55 and in 4/5 standard
boxes the cost for 11 firms was from $1.40 to $1.60 and over.








Table 3.-Containers and Variations in the Costs of Packing and Selling Florida
Citrus Fruit, 67 Packingh6uses, 1951-52.


Cost Oranges
per :1 3/5 1 3/5 1 3/57 1/2 Box 1/4 Box 6-lb. 5-lb.
1 3/5 bushel :Bruce Std.Box Std. Box Mesh Mesh Mesh Mesh
:Box Unwrapped Wrapped Bag Bag Bag Bag
Number of Firms
Under $o.6500 0 0 0 0 0 0 0
$0.65 .6999 0 0 0 2 1 0 0
.70 .7499 0 0 0 4 0 0 0
.75 .7999 1 0 0 13 1 0 0
\80 .8499 9 0 0 11 3 0 0
.85 .8999 11 0 0 5 7 0 0
.90 .9499 18 0 1 3 6 1 0
.95 .9999 7 3 0 0 12 1 0
1.00 1.0o99 9 1 0 0 5 5 0
1.05 1.0999 5 3 2 0 3 5 0
1,10 1.1499 1 1 1 0 0 8 0
1.15 141999 0 2 0 0 0 9 1
1.20 1.2499 0 0 4 0 1 9 4
1.25 1.2999 0 2 3 0 0 3 2
1.30 1,3499 0 1 3 0 0 4 7
1.35 1.3999 1 0 3 0 0 0 12
1,o4 1.4499 o o o o o 0 4
1.45 and over 0 0 1 0 0 1 10
Total number of firms 62 13 18 38 39 46 .... 40,

Cost :Grapefruit
er :1 375- 1 3/53/5 1/2 Box 1/4 Box 8-lb. 5-1b.
1 3/5 bushel :Bruce Std.Box Std.Box Mesh Mesh Mesh Mesh
:Box Unwrapped aed Bag Bag Bag Bag
Number of Firts
Under $0.6500 0 0 0 1 0 0 0
$0.65 .6999 0 0 0 3 0 0 0
.70 .7499 1 0 0 5 1 0 0
.75 .7999 10 0 0 1 1 0 0
.80 .8499 16 0 0 3 0 0 0
.85 .8999 14 1 0 0 5 1 0
.90 .9499 9 2 0 0 3 1 0
.95 .9999 8 3 3 0 0 8 0
1.00 1.0499 3 2 1 0 0 10 0
1.05 1.0999 1 0 3 0 0 5 0
1.10 1.1499 0 2 3 0 0 6 1
1.15 1.1999 0 0 3 0 0 4 5
1.20 1.2499 0 1 5 0 0 2 8
1.25 1.2999 0 0 0 0 0 0 9
1.30 and over 0 0 0 0 0 0 12
Total number of firms 62 11 18 13 10 37 35















Table 3.-Containers and Variations in the Costs of Packing and Selling Florida
Citrus Fruit, 67 Packinghouses, 19,L .52 (Concluded).

Cost : Tangerines
per
1 3/5 bushel /5 Bruce 4/ Bruce Flat 4/5 Standard
Number of packinghouses
Under $1.1000 1 0 0
$1.10 1.1499 0 0 0
1.15 1.1999 0 0 0
1.20 1.2499 3 2 0
1.25 1.2999 5 0 0
1.30 1.3499 6 2 0
1.35 1.3999 6 1 0
1.40 1.4499 12 4 1
1.45 1.4999 6 2 2
1.50 1.5499 2 1 1
1.55 1.5999 3 0 2
1.60 and over 3 0 5
Total number of firms 47 12 11









Containers and Packing Costs

Variations in packinghouse operating costs are represented by the packing

costs which are the total expenses before administrative and selling and other

miscellaneous costs have been added. Costs to pack oranges per 1-3/5 bushel

ranged from under $0.45 for one firm to $1.20 and over for 15 firms. The firm

in the under $0.45 group packed 1/2 box bags. In the $1.20 and over group, 14

firms packed 5-pound bags, and one used 8-pound bags. For grapefruit, packing

costs varied from under $0.6000 for 11 firms to $1.25 for one firm which packed

5-pound bags. At the cost of under $0.6000, ten firms packed grapefruit in 1/2

box bags and one used 1-3/5 bruce boxes. The packing cost of tangerines per

1-3/5 bushel varied from under $1.00 for two firms for fruit in 4/5 bruce boxes,
to $1.60 for one firm for fruit in 4/5 bruce boxes, Table 4. The concentration

of packing costs is similar to that of packing and selling except at lower

levels.

Oranges.--Packing costs of oranges in 1-3/5 bruce boxes ranged from

$0.60 for one firm to $1.00 for another firm for a total of 62 firms with 50

having costs between $0.65 and $0.80. The range of 13 firms packing 1-3/5

standard unwrapped was $0.75 to $1.15, and the range of 18 firms packing 1-3/5

standard wrapped was $0.80 to $1.20. Thirty-eight firms packing 1/2 box bags

had costs from $0.40 to $0.80 with 26 firms having costs of $0.50 to $0.65.

For 1/4 box bags the cost varied from $0.50 to $1.05 for 39 firms, of which
29 were within the range of $0.65 to $0.80. Packing costs of 8-pound bags

for 46 firms ranged from $0.70 to $1.20 and over. Of these 46 firms 34 ranged

from $0.85 to $1.05. Forty packinghouses packing 5-pound bags had costs ranging
from $100 to $1.20 and over, and 27 of the 40 had costs above $1.15.








Grapefruit.--The cost of packing grapefruit in 1-3/5 bruce boxes for 62
firms varied from under $0.6000 at one firm to $0.85 for two firms with 51
firms ranging from $0.60 to $0.75. For 1-3/5 standard unwrapped, 11 firms
varied in cost form $0.65 to $1.00 and for 1-3/5 standard wrapped 18 firms
varied from $0.80 to $1.05.

The lowest cost per 1-3/5 bushel was for 1/2 box bags. It varied from
under $0.60 for 10 firms to $0.70 for one firm for a total of 13 packinghouses.
For 1/4 box bags nine firms had costs between $0.60 and $0.75 and one firm
had an average cost between $0.75 and $0.80. Thirty-seven firms packed 8-pound
bags ranging in cost from $0.70 to $1.05, but of these, 25 ranged from $0.80
to $0.95. The cost for 5-pound bags was from $0.95 to $1.25 with 32 of 35
firms having costs from $1.00 to $1.20.

Tangerines.--To pack tangerines in 4/5 bruce boxes the cost ranged from
less than $1.00 per 1-3/5 bushel for two firms to $1.60 for one firm, with 27
of 47 firms having costs from $1.10 to $1.25. In 4/5 bruce flats 12 firms
varied from $1.00 for two firms to $1.40 for one firm. Packing costs for 11
firms per 1-3/5 bushel for 4/5 standard boxes ranged from $1.15 for one firm

to $1.55 for another firm. Eight of the 11 were between $1.25 and $1.40.







Table 4.-Containers and Variations in the Costs of Packing Florida Citrus
Fruit, 67 Packinghouses, 1951-52


Cost Oranges
per :1-3/5 1-3/5 1-3/5 1/2 Box 1/4 Box 8-1b. 5-lb.
1-3/5 bushel :Bruce Std. Box Std. Box Mesh Mesh Mesh Mesh
:Box Unwrapped Wrapped Bag Bag Bag Bag
Number of firms
Under $0.4000 0 0 0 0 0 0 0
$0.40 .4499 0 0 0 1 0 0 0
.45 .4999 0 0 0 1 0 0 0
.50 .5499 0 0 0 9 1 0 0
.55 .5999 0 0 0 6 0 0 0
.60 .6499 1 0 0 11 2 0 0
.65 .6999 17 0 0 9 8 0 0
.70 .7499 23 0 0 0 12 1 0
.75 .7999 10 1 0 1 9 2 0
.80 .8499 8 4 1 0 5 0 0
.85 .8999 2 2 0 0 1 9 0
.90 .9499 0 3 2 0 0 8 o
.95 .9999 1 0 3 0 0 9 0
1.00 -1.0499 0 0 3 0 1 8 1
1.05 -1.0999 0 2 4 o 0 7 6
1.10 -1.1499 0 1 3 0 0 1 6
1.15 -1.1999 0 0 2 0 0 0 13
1.20 and over 0 0 0 0 0 1 14
Total number of firms 62 13 18 38 39 46 40

Cost Grapefruit
per :1-3/5 1-3/5 1-3/5 1/2 Box 1/4 Box 8-1b. 5-1b.
1-3/5 bushel :Bruce Std.Box Std. Box Mesh Mesh Mesh Mesh
:Box Unwrapped Wrapped Bag Bag Bag Bag
Number of firms
Under $0.6000 1 0 0 10 0 0 0
$0.60 .6499 20 0 0 2 3 0 0
.65 .6999 20 1 0 1 3 0 0
.70 .7499 11 0 0 0 3 1 0
.75 .7999 8 2 0 0 1 5 0
.80 .8499 2 3 4 0 0 9 0
.85 .8999 0 2 3 0 0 12 0
.90 .9499 0 2 4 0 0 4 0
.95 .9999 0 1 4 0 0 5 2
1.00 1.0499 0 0 3 0 0 1 9
1.05 1.0999 0 0 0 0 0 0 8
1.10 1.1499 0 0 0 0 0 0 5
1.15 1.1999 0 0 0 0 0 0 10
1.20 1.2499 0 0 0 0 0 0 1
1.25 1.2999 0 0 0 0 0 0 0
1.30 1.3499 0 0 0 0 0 0 0
1.35 1.3999 o o 0 0 o o 0
1.40 and over 0 0 0 0 0 0 0
Total number of firms 62 11 18 13 10 37 35
,- ,









Table 4.-Containers and
Fruit, 67


Variations in the Costs of Packing Florida Citrus
Packinghouses, 1951-52 (concluded).


Cost Tangerines
per
1-3/5 bushel 4/5 Bruce 4/5 Bruce Flat 4/5 Standard


Number of firms
Under $1.0000 2 0 0
$1.00 1.0499 4 2 0
1.05 1.0999 4 1 0
1.10 1.1499 6 2 0
1.15 1.1999 11 3 1
1.20 1.2499 10 0 0
1.25 1.2999 3 3 5
1.30 1.3499 4 0 0
1.35 1.3999 2 1 3
1.40 1.4499 o o 0
1.45 1.4999 0 0 1
1.50 1.5499 0 0 1
1.55 1.5999 1 0 0
1.60 and over 0 0 0
Total number of firms 47 12 11









Volume and Costs of Packing and Selling

Total costs of packing and selling for the 67 firms studied were classi-

fied according to volume of Florida citrus fruit handled so as to compare

packinghouses with different scales of operation. This was done per 1-3/5

bushels packed in 1-3/5 bruce boxes and 1-3/5 standard boxes for oranges and

grapefruit, and for tangerines packed in 4/5 bruce boxes, Table 5. The range
of the average packing and selling costs of the packinghouses according to

volume classification is shown in Table 6.

Oranges.--The average cost to pack and sell oranges in 1-3/5 bruce boxes

for 13 firms handling 400,000 to 699,999 boxes was $0.89 per box, and the cost

for 25 firms with 700,000 or more boxes was $0.90 per box. In the under

200,000 box group the cost for nine firms was $0.96, and in the 200,000 to

399,999 box group the cost for 15 firms was $0.96.

The per box cost was under $1.00 for 31 of the 37 firms handling over

400,000 boxes of oranges and for 15 of the 25 firms handling less than 400,000

boxes. Sixteen of the 37 firms handling 400,000 boxes or more had costs below

$0.90 per 1-3/5 bruce box, and five of the 25 firms with less than 400,000

boxes had costs below $0.90.

For packing oranges in 1-3/5 bruce boxes the cost for 13 firms in the

400,000 to 699,999 box group was $0.70, and for 25 firms in the 700,000 and over

range it was $0.71. In the under 200,000 box group the cost was $0.76 for nine

firms, and in the 200,000 to 399,999 box group the cost was $0.73 for 15 firms.

The cost of packing and selling oranges in 1-3/5 standard wrapped boxes

averaged $1.28 for two firms handling 400,000 to 699,999 boxes of fruit, and

$1.32 for five firms handling over 700,000 boxes. The costs averaged $1.12








for three firms handling less than 200,000 boxes and $1.26 for eight firms

handling 200,000 to 399,999 boxes.

Grapefruit.--In 1951-52 the average cost of packing and selling grape-

fruit in 1-3/5 bruce boxes for 13 firms in the 400,000 to 699,999 box group

was $0.86 per box. For 25 firms handling 700,000 boxes and more the cost

was $0.84. Nine firms handling less than 200,000 boxes had a cost of $0.97,

and 15 firms with 200,000 to 399,999 boxes had a cost of $0.88.

The cost of packing and selling grapefruit in 1-3/5 bruce boxes was less

than $0.90 per box for 28 of 38 packinghouses handling 400,000 boxes or more,

and for 13 of 24 firms handling less than 400,000 boxes.

The cost of packing grapefruit in 1-3/5 bruce boxes for 13 firms in the

400,000 to 699,999 box range was $0.67 per box and for 25 firms in the 700,000

and over range it was also $0.67. For the under 200,000 box group nine firms

had a cost of $0.74, and for 200,000 to 399,999 boxes 15 furnished a packing

cost of $0.67.

The costs of packing and selling grapefruit in 1-3/5 standard wrapped

boxes averaged $1.23 for two firms handling 400,000 to 699,999 boxes; $1.21

for five firms handling over 700,000 boxes; $1.19 for four firms handling

under 200,000 boxes; and $1.14 for seven firms with 200,000 to 399,999 boxes

of fruit.

Tangerines.--The cost of packing and selling tangerines in 4/5 bruce

boxes for eight firms handling from 400,000 to 699,999 boxes of citrus fruit

averaged $1.35 per 1-3/5 bushel. For 18 firms with 700,000 or more boxes it

was $1.39. For nine firms within the group of under 200,000 boxes the average

cost was $1.43 and for 12 firms with 200,000 to 399,999 boxes it was $1.44.

The number of firms handling over 400,000 boxes at a cost of less than





21



$1.40 was 15 out of 26, and the number of firms handling under 400,000 boxes at

less than $1.40 per box was six out of 21. The packing and selling average cost

was $1.50 or more for two of the firms handling over 400,000 boxes, and for

six of the firms with less than 400,000 boxes.

In packing tangerines the average cost in the 400,000 to 699,999 box

group was $1.16 for eight firms, and for the over 700,000 box group it was

$1.19 for 18 firms. For nine firms handling less than 200,000 boxes the

cost was $1.21 and for 12 firms with 200,000 to 399,999 boxes it was $1.19.






Table 5.-Volume and the Cost of Packing and Selling Florida Citrus Fruit in
Bruce and Standard Boxes, 67 Packinghouses, 1951-52


Citrus Fruit Handled Under 200,000- 400,000- 700,000 All
200,000 399,999 699,999 & Over Volumes

Oranges in 1-3/5 bushel bruce boxes
Number of packinghouses 9 15 13 25 62
Average pack of oranges
1-3/5 boxes 72,980 71,411 139,337 215,944 144,161
Cost per 1-3/5 bushel:
Material $0.4239 $0.4161 $0.4139 $0.4144 $0.4152
labor:
Receive, truck, dump .0374 .0392 .0313 .0291 .0314
Crate making & labeling .0326 .0330 .0315 .0321 .0321
Foreman, graders, others .0650 .0558 .0588 .0478 .0522
Wrap and pack .0597 .0594 .0598 .0620 .0611
Truck, check, load .0344 .0334 .0312 .0357 .0344
Payroll taxes .0152 .0150 .0109 .0114 .0120
Total labor .2443 .2358 .2235 .2181 .2232
Other direct operating .0545 .0446 .0400 .0488 .0470
Indirect operating .0349 .0361 .0275 .0298 .0304
Total packing .7576 .7326 .7049 .7111 .7158
Administrative & selling .1046 .1190 .0876 .0778 .0867
Other items .1019 .1089 .1001 .1122 .1086
Total packing & selling $0.9641 $0.9605 $0.8926 $0.9011 $0.9111

Grapefruit in 1-3/5 bushel bruce boxes
Number of packinghouses 9 15 13 25 62
Average pcak of grapefruit
1-3/5 boxes 16,448 45,182 94,068 182,643 106,689
Cost per 1-3/5 bushel:
Material $0.4289 $0.4216 $0.4174 $0.4161 $0.4172
Labor:
Receive, truck, dump .0346 .0315 .0251 .0258 .0265
Crate making & labeling .0378 .0340 .0308 .0316 .0318
Foreman, graders, others .0563 .0329 .0412 .0361 .0372
Wrap & pack .0473 .0444 .0484 .0470 .0470
Truck, check, load .0362 .0308 .0352 .0336 .0337
Payroll taxes .0174 .0126 .0099 .0082 .0092
Total labor .2296 .1862 .1906 .1823 .1854
Other direct operating .0437 .0364 .0348 .0434 .0410
Indirect operating .0426 .0247 .0282 .0290 .0287
Total packing .7448 .6689 .6710 .6708 .6723
Administrative & selling .1276 .1080 .0898 .0708 .0794
Other items .0966 .1019 .1009 .0952 .0970
Total packing & selling $0.9690 $0.8788 $0.8617 $0.8368 $0.8487








Table 5.-Volume and the Cost of Packing and Selling Florida Citrus Fruit in
Bruce and Standard Boxes, 67 Packinghouses, 1951-52 (continued).


Under 200,000- 400,000- 700,000 All
Citrus fruit handled 200,000 399.999 699,999 & Over Volumes

Oranges, wrapped, in 1-3/5 bushel standard boxes
Number of packinghouses 3 8 2 5 18
Average pack of oranges
1-3/5 boxes 70,803 57,858 88,198 62,106 64,567
Cost per 1-3/5 bushel:
Material $o.6254 $0.6413 $0.6367 $0.6278 $0.6341
Labor:
Receive, truck, dump .0261 .0387 .0467 .0252 .0340
Crate making & labeling .0240 .0392 .0354 .0406 .0362
Foreman, graders, others .0724 .0736 .0895 .0745 .0760
Wrap & pack .0761 .1123 .1108 .1221 .1081
Truck, check, load .0250 .0279 .0325 .0182 .0255
Payroll taxes .0154 .0177 .0174 .0184 .0174
Total labor .2390 .3094 .3323 .2990 .2972
Other direct operating .0493 .0719 .0712 .0329 .0572
Indirect operating .0362 .0441 .0355 .0309 .0379
Total packing .9499 1.0667 1.0757 .9906 1.0264
Administrative & selling .1209 .0968 .1223 .1132 .1095
Other items .0518 .0933 .0796 .2170 .1167
Total packing & selling $1.1226 $1.2568 $1.2776 $1.3208 $1.2526

Grapefruit, wrapped, in 1-3/5 bushel standard boxes
Number of packinghouses 4 7 2 5 18
Average pack of oranges
1-3/5 boxes 53,446 84,923 240,468 80,649 94,024
Cost per 1-3/5 bushel:
Material $0.6391 $0.6228 $0.6218 $0.6123 $0.6221
Labor:
Receive, truck, dump .0367 .0318 .0336 .0248 .0312
Crate making & labeling .0356 .0344 .0451 .0414 .0393
Foreman, graders, others .0700 .0512 .0509 .0503 .0533
Wrap & pack .0718 .0795 .0751 .0873 .0791
Truck, check, load .0249 .0245 .0317 .0167 .0247
Payroll taxes .0150 .0152 .0135 .0129 .0142
Total labor .2540 .2366 .2499 .2334 .2418
Other direct operating .0539 .0495 .0628 .0224 .0474
Indirect operating .0299 .0433 .0404 .0207 .0354
Total packing .9769 .9522 .9749 .8888 .9467
Administrative & selling .1420 .1029 .1486 .0939 .1187
Other items .0758 .0883 .1055 .2299 .1253
Total packing & selling $1.1947 $1.1434 $1.2290 $1.2126 $1.1907








Table 5.-Volume and the Cost of Packing and Selling Florida Citrus Fruit in
Bruce Boxes, 67 Packinghouses, 1951-52 (concluded).


Under 200,000- 400,000- 700,000 All
Citrus fruit handled 200,000 399,999 699.999 & Over Volumes

Tangerines in 4/5 bruce boxes
Number of packinghouses 9 12 8 18 47
Average pack of tangs.
1-3/5 boxes 8,127 16,121 14.688 34,923 21,547
Cost per 1-3/5 bushel:
Material $0.6636 $0.6737 $0.6405 $0.6560 $0.6582
Labor:
Receive, truck, dump .0504 .0448 .0615 .0436 .0464
Crate making & labeling .0619 .0769 .0676 .0631 .0662
Foreman, graders, others .1064 .0771 .0991 .0831 .0855
Wrap & pack .1167 .1062 .1002 .1188 .1140
Truck, check, load .0627 .0673 .0733 .0706 .0697
Payroll taxes .0183 .0232 .0183 .0162 .0179
Total labor .4164 .3955 .4200 .3954 .3997
Other direct operating .0888 .0668 .0641 .0761 .0739
Indirect operating .0380 .0499 .0369 .0582 .0527
Total packing 1.2068 1.1859 1.1615 1.1857 1.1845
Administrative & selling .1130 .1077 .0811 .0661 .0792
Other items .1118 .1453 .1083 .1407 .1357
Total packing & selling $1.4316 $1.4389 $1.3509 $1.3925 $1.3994














Table 6 .-Volume of Fruit Handled and Variation in the Cost of Packing and
Selling Florida Fruit in Bruce Boxes, 67 Packinghouses, 1951-52.


1 3/5 bushel box equivalent handled

Cost per Under 200,000- 400,000- 700,000 All
1 3/5 bushel 200,000 399,999 699,999 & Over Volumes

Oranges in 1 3/5 bruce boxes
Number of firms
Under $0.8000 0 0 0 1 1
$0.80 .8999 1 4 5 10 20
.90 .9999 5 5 4 11 25
1.00 1.0999 2 6 3 3 14
1.10 and over 1 1 0 0 2

Grapefruit in 1 3/5 bruce boxes

Under $0.8000 0 1 1 9 11
$0.80 .8999 3 9 8 10 30
.90 .9999 5 3 4 5 17
1.00 1.0999 1 2 0 1 4
1.10 and over 0 0 0 0 0

Tangerines in 4/5 bruce boxes
Under $1.1000 0 0 0 1 1
$1.10 1.1999 0 0 0 0 0
1.20 1.2999 1 1 2 i 8
1.30 1.3999 1 3 3 5 12
1.40 1.4999 5 2 1 18
1.50 1.5999 i 2 1 1 5
1.60 and over 2 1 0 0 3









Type of Firm and Costs


In 1951-52 the cost of packing and selling in 1-3/5 bruce boxes was lowest

for integrated firms, or firms where fresh fruit was packed and processed under

one management and ownership. Affiliated firms, ones which had an agreement

with a processor to handle all fruit not sold fresh, had the next lowest cost

for packing grapefruit and tangerines. However, for packing oranges the special-

ized firms had the next to lowest cost, and the affiliated had the highest

average cost. The type of firm having the highest average cost for grapefruit

and tangerines in 1-3/5 bruce boxes was the specialized firm which had no pre-

season arrangement or agreement for handling the fruit for processing, Table 8.

The three types of firms were classified according to volume of citrus fruit

handled by the packinghouses, Table 7.

Oranges.--The average cost of packing and selling oranges in 1-3/5 bruce

boxes for six integrated firms was $0.86 per box, tor 17 affiliated firms it

was $0.93, and for 39 specialized firms it was $0.91. Thus the 1951-52 cost of

the affiliated firms was two cents less than that of the specialized. For the

integrated firms the cost of oranges in 1-3/5 bruce boxes was seven cents below

that of the affiliated, and $0.05 less than that of the specialized firms.

The cost of packing for the integrated firms was $0.71 and for the

affiliated firms it was also $0.71. Specialized firms had a packing cost of

$0.72. Material cost was approximately the same for the integrated and $0.01

less for the affiliated firms than the $0.42 cost for the specialized firms.

labor costs were $0.20 for the integrated and $0.23 for both affiliated and

specialized.









Administrative and selling costs for the integrated firms were $0.06, and

for both affiliated and specialized firms they were $0.09. Other expenses --

gas coloring, color add and wax, Florida Citrus Commission, Growers' Adminis-

trative Committee, inspection, and membership dues -- for the integrated firms

were $0.09; for the affiliated were $0.13; and for the specialized were $0.10

per 1-3/5 bushel.

For oranges packed in 1-3/5 bruce boxes five out of six of the inte-

grated firms handled more than 400,000 boxes. Of the affiliated there were 11

out of 17, and of the specialized there were 21 out of 39 which handled more

than 400,000 boxes.

Grapefruit.--To pack and sell grapefruit in 1-3/5 bruce boxes in 1951-52

the cost was $0.83 for six integrated firms. It was $0.85 for 17 affiliated

firms and $0.86 for 39 specialized firms. Thus the integrated firms had costs

of $0.02 less than the affiliated firms and $0.03 less than the specialized

firms. Affiliated packinghouses packed and sold 1-3/5 bruce boxes at $0.04

less than specialized firms.

The average cost of packing for the integrated firms was $0.68, for the

affiliated firms $0.66, and for the specialized firms it was $0.68. For the

integrated firms the average material cost was the same as the $0.42 cost for

the specialized firms, and for the affiliated firms it was $0.01 less. Labor

costs were $0.18 for the integrated and affiliated, and $0.19 for the special-

ized firms.

The administrative and selling costs were $0.06 for the integrated, $0.08

for the affiliated, and $0.09 for the specialized firms, and other expenses

amounted to $0.09 for integrated, $0.11 for affiliated, and $0.09 for special-

ized firms.









The distribution of firms according to volume handled was the same for

grapefruit as for oranges with the exception of the affiliated group, where

12 firms packing grapefruit instead of 11 for oranges were in the over 400,000

group.

Tangerines.--The average cost per 1-3/5 equivalent bushel of packing

and selling tangerines in 4/5 bruce boxes was $1.36 for four integrated firms,

$1.40 for 13 affiliated firms, and $1.40 for 30 specialized firms. Integrated

firms had packing and selling costs of $0.05 less than affiliated and $0.05

less than specialized firms.

Packing costs were $1.18 for integrated, $1.15 for affiliated, and $1.20

for specialized firms. Average material cost was $0.66 for specialized firms

so that for integrated firms it was $0.03 more, and for affiliated firms it

was $0.02 less than the specialized. Labor costs were $0.34 for integrated,

$0.40 for affiliated, and $0.41 for specialized firms.

Administrative and selling costs. for the integrated firms were $0.08;

for the affiliated firms, $0.10; and for the specialized firms, $0.07. Other

expenses amounted to $0.10 for the integrated, $0.16 for the affiliated and

$0.13 for the specialized firms.

Three out of four integrated firms, nine out of 13 affiliated firms, and

14 out of 30 specialized firms handled over 400,000 boxes of Florida citrus.









Table 7.-Volume of Fruit Handled and Type of Firm Packing and Selling
Florida Citrus Fruit in Bruce Boxes, 67 Packinghouses, 1951-52.



1-3/5 bushel box equivalent handled

Under 200,000- 400,000- 700,000 All
Type of Firm 200,000 399,999 699,999 & Over Volumes

Oranges in 1-3/5 bruce boxes

Number of firms
Specialized 7 11 10 11 39
Affiliated 2 4 2 9 17
Integrated 0 1 0 5 6


Grapefruit in 1-3/5 bruce boxes
Specialized 7 11 10 11 39
Affiliated 2 3 3 9 17
Integrated 0 1 0 5 6


Tangerines in 4/5 bruce boxes
Specialized 8 8 5 9 30
Affiliated 1 3 3 6 13
Integrated 0 1 0 3 4








Table 8.-Cost of Packing and Selling Florida Citrus Fruit in Bruce Boxes
and Type of Firm, 67 Packinghouses, 1951-52.

Note: Specialized fruit for processing is sold during the season
without prior commitment to a specific outlet.
Affiliated fruit for processing is handled either through
investment in or a pre-season arrangement with a processing
plant.
Integrated fresh fruit packing and processing are under one
ownership and management.



Type of Firm Specialized Affiliated Integrated

Orangeg in 1-3/5 bruce boxes
Number of packinghouses 39 17 5
1-3/5 boxes per firm 114,433 183,454 226,062
Cost per 1-3/5 bushel:
Material $0.4172 $0.4099 $0.4207
Labor:
Receive, truck, dump .0330 .0307 .0276
Crate making & labeling .0311 .0341 .0308
Foreman, graders, others .0541 .0511 .0488
Wrap & pack .0608 .0635 .0563
Truck, check, load .0365 .0337 .0292
Payroll taxes .0114 .0137 .0105
Total labor .2269 .2268 .2032
Other direct operating .0418 .0512 .0543
Indirect operating .0333 .0256 .0322
Total packing .7192 .7135 .7104
Administrative & selling .0912 .0904 .0633
Other items .1003 .1294 .0879
Total packing & selling $0.9107 $0.9333 $0.8616

Grapefruit in 1-3/5 bruce boxes
Number of packinghouses 39 17
1-3/5 boxes per firm 86,384 119,889 201,272
Cost per 1-3/5 bushel:
Material $0.4208 $0.4095 $0.4203
Labor:
Receive, truck, dump .0251 .0268 .0296
Crate making & labeling .0309 .0323 .0336
Foreman, graders, others .0381 .0312 .0448
Wrap & pack .0484 .0470 .0431
Truck, check, load .0373 .0323 .0258
Payroll taxes .0097 .0094 .0073
Total labor .1895 .1790 .1842
Other direct operating .0374 .0439 .0464
Indirect operating .0321 .0240 .0273
Total packing .6798 .6564 .6782
Administrative & selling .0860 .0819 .0570
Other items .0931 .1075 .0900
Total packing & selling $0.8589 $0.8458 $0.8252









Table 8.-Cost of Packing and Selling Florida Citrus Fruit in Bruce
Boxes and Type of Firm, 67 Packinghouses, 1951-52 (concluded)



Type of Firm Specialized Affiliated Integrated

Tangerines in 4/5 bruce boxes
Number of packinghouses 30 13 4
1-3/5 boxes per firm 21,155 21,355 25,109
Cost per 1-3/5 bushel:
Material $0.6612 $0.6407 $0.6873
Labor:
Receive, truck, dump .0498 .0449 .0289
Crate making & labeling .0661 .0671 .0640
Foreman, graders, others .0902 .0860 .0547
Wrap & pack .1162 .1112 .1081
Truck, check, load .0733 .0642 .0621
Payroll taxes .0149 .0231 .0229
Total labor .4105 .3965 .3407
Other direct operating .0689 .0781 .0936
Indirect operating .0589 .0372 .0558
Total packing 1.1995 1.1525 1.1774
Administrative & selling .0727 .0952 .0760
Other items .1325 .1555 .1019
Total packing & selling $1.4047 $1.4032 $1.3553








PROCESSED CITRUS PRODUCTS


Cost of Processing, Warehousing, and Selling Citrus Juices


The costs of processing single strength juices continued to climb in 1951-52

as they have for each season since 1946-47, Table 9. Increases for these juices

processed in the popular 12/404 case were six cents for orange, seven cents for

blend and eight cents for grapefruit.

The cost of materials (cans, cartons and labels) rose five cents to ac-

count for most of the total increase in processing cost. A rise of 1- cents

in administrative and selling cost was the other significant increase.


Table 9.-Average Cost of Processing, Warehousing, and Selling
Florida Citrus Fruit Juices, Excluding Sugar Costs, in 12/404 Cases,
1946-47 Through 1951-52 Seasons.


Season 1951-52 1949-50 1948-49 1947-48 1946-47

Orange Juice $1.2358 $1.2098 $1.1672 $1.0920 $1.0558
Grapefruit Juice 1.2273 1.1893 1.1685 1.0909 1.0574
Blended Juice 1.2335 1.1929 1.1488 1.0930 1.0498


The total advance in processing cost for single strength juices per 12/404

case since 1946-47 has been 24 cents for orange, 25 cents for grapefruit and 26

cents for blend. The change in cost of processing these juices are well repre-

sented by the following comparison between orange costs in 12/404 cases during

the 1946-47 and the 1951-52 seasons:

1946-47 1951-52 Change in Cost
Percent
Materials $0.6394 $0.8581 +$0.2187 +34
labor .1385 .1312 .0073 5
Other Mfg. .1549 .1744 + .0195 +13
Adm. and Selling .0981 .1005 + .0024 + 2
Other Costs .0249 .0324 + .0075 + 3
Total Nonsweet $1.0558 $1.2966 +$0.2408 +23


t








Table 10.-Cost by Type of Container Per Case of Processing,
Warehousing and Selling Florida Citrus Fruit Juices,
14 Canneries, 1951-52.


Orange Juice Grapefruit Juice
Type of Container 24/2 12/404 24/2 12/404
Number of firms 14 14 14 14
Cases per firm 169,888 512,584 114,137 293,919

Cost per case:
Material $0.8819 $0.8581 $0.8800 $0.8570
Labor:
Direct .0755 .0751 .0739 .0813
Indirect .0128 .0155 .0140 .0167
Warehousing and shipping .0391 .0406 .0394 .0410
Total labor .1274 .1312 .1273 .1390
Other Manufacturing .1438 .1744 .1428 .1647
Total processing and warehousing 1.1531 1.1637 1.1501 1.1607
Administrative and selling .0912 .1005 .0910 .0983
Other cost .0261 .0324 .0381 .0478
Cost unsweetened 1.2704 1.2966 1.2792 1.3068
Sugar .0299 .0367 .0615 .0724
Total cost $1.3003 $1.3333 $1.3407 $1.3792

Blended Juice Tangerine Juice
Type of container 24/2 12/404 24/2 12/404
Number of firms 14 14 7 7
Cases per firm 52,250 192,051 18,492 38,670

Cost per case:
Material $0.8844 $0.8565 $0.8808 $0.8536
Labor:
Direct .0734 .0771 .0818 .0813
Indirect .0149 .0175 .0118 .0168
Warehousing and shipping .0375 .0401 .0444 .0456
Total labor .1258 .1347 .1380 .1437
Other manufacturing .1424 .1720 .1374 .1548
Total processing and warehousing 1.1526 1.1632 1.1562 1.1521
Administrative and selling .0919 .0999 .0877 .1034
Other cost .0349 .0442 .0472 .0609
Cost unsweetened 1.2794 1.3073 1.2911 1.3164
Sugar .0420 .0459 .0407 .0452
Total cost $1.3214 $1.3532 $1.3318 $1.3616









Materials cost advanced 22 cents or 34 percent to account for almost all

of the total increase in cost. The unit cost of labor has decreased during this

period when single strength juices have declined in volume per firm and for the

industry.

The itemized costs of processing single strength juices in the principal

containers (24/2 and 12/404 cases) for the 1951-52 season are shown in Table 10.

There were only alight differences in total cost for the various citrus

juices before the sugar cost was added. Unsweetened orange juice in 12/404

cases was $1.30, while grapefruit and blended juices were $1.31 and tangerine

juice was $1.32. It was noted that tangerine juice costs for the seven firms

processing this fruit were higher in relation to costs for the other juices

than the average industry costs shown here indicate.

The cost of processing and selling citrus juices in 12/404 cases were

two and one-half to two and three-quarter cents higher than for 24/2 cases.

However, for an equivalent volume of juice (basis 24/2 cases) the costs for

12/404 cases was 24 cents lower than costs for 24/2 cases as shown by the

following figures:

Orange Grapefruit Blended Tangerine
Juice Juice Juice Juice

24/2 cases $1.2704 $1.2792 $1.2794 $1.2911
12/404 cases (24/2 basis) 1.0312 1.0393 1.0397 1.0473
Cost differences $ .2392 $ .2399 $ .2397 $ .2438


Variation in Processing, Warehousing, and Selling Costs.

Variations in the cost of processing, warehousing and selling single

strength citrus juices are presented in Table 11. Eleven of the 14 firms had

costs ranging between $1.20 and $1.40 for unsweetened orange, grapefruit and

blended juices in the 12/404 case. Six of the seven tangerine processors were

also in this range. The average costs for the sample firms were $1.39 for

orange and blended juices, $1.38 for grapefruit and $1.31 for tangerine juice.









Table 11.-Containers and Variations in the Cost per Case of Processing,
Warehousing, and Selling Florida Citrus Fruit Juices, 14 Canneries,
1951-52



Unsweetened Sweetened

Type of container 24/2 12/404 24/2 12/404

Number of Firms

Orange Juice
Cost per case
Under $1.2000 1 0 0 0
$1.20 1.2999 7 6 5 4
1.30 1.3999 4 5 3 3
1.40 and over 2 1_3 2
Total number of firms 14 14 9 9


Grapefruit Juice
Cost per case
Under $1.2000 2 0 0 0
$1.20 1.2999 6 6 2 2
1.30 1.3999 4 5 5 4
1.40 and over 2 3 2 3
Total number of firms 14 14 9 9


Blended Juice
Cost per case
Under $1.2000 2 0 0 0
$1.20 1.2999 6 6 6 3
1.30 1.3999 3 5 2 3
1.40 and over I -2 4
Total number of firms 4 14 10 10


Tangerine Juice
Cost per case
Under $1.2000 1 0 0 0
$1.20 1.2999 4 4 3 1
1.30 1.3999 2 2 3 4
1.40 and over 0 1 0 1
Total number of firms 7 7 6 6









Table 12.-Containers and Variations in the Cost per Case of Processing and
Warehousing Florida Citrus Fruit Juices, excluding sugar, 14 canneries,
1951-52.



Type of container 24/2 12/404 24/2 12/404
Orange Juice Grapefruit Juice
Number of firms
Cost per case
Under $1.1000 3 2 3 2
$1.10 1.1999 6 6 8 7
1.20 1.2999 3 3 2 2
1.30 and over 2 3 1 3
Total number of firms 14 14 14 14


Blended Juice Tangerine Juice
Number of firms

Cost per case
Under $1.1000 3 2 3 2
$1.10 1.1999 7 6 3 4
1.20 1.2999 2 3 1 1
1.30 and over 2 0 0
Total number of firms 14 14 7 7



Table 12 gives the variations in cost between firms for processing and

warehousing citrus juices, with administrative, selling, sugar and other costs

omitted. The modal group for both 24/2 and 12/404 cases was $1.10 to $1.19.

Volume and Cost of Processing, Warehousing and Selling

Volume was a major factor influencing the cost of processing, warehousing

and selling citrus juices. The fourteen firms in the sample were divided into

two groups on the basis of total volume. Seven firms were in the group pro-

cessing under 1,000,000 cases and seven were in the group with 1,000,000 cases

or more. The average volumes for these groups were 441,698 for the small volume

group and 3,727,292 for the large volume group. Major items of cost are shown

for each group in Table 13.









Table 13.-Volume and the Cost of Processing, Warehousing and Selling
Florida Citrus Juices in 12/404 cases, 1951-52.


Volume, Cases Under 1,000,000 Under 1,000,000
1,000,000 and over 1,000,000 and over
Orange Juice Grapefruit Juice
Number of firms 7 7 7 7
Cases per firm 128,242 896,926 85,333 502,504

Cost per case:
Material $0.8702 $0.8564 $0.8647 $0.8557
Labor:
Direct .0687 .0760 .0679 .0836
Indirect .0290 .0136 .0350 .0136
Warehousing and
shipping .0493 .0393 _.0498 .0395
Total labor .1470 .1289 .1527 .1367
Other manufacturing .2316 .1662 .2416 .1516
Total processing and
warehousing 1.2488 1.1515 1.2590 1.1440
Administrative and
selling .0985 .1008 .1171 .0952
Other cost .0341 .0322 .0541 .0467
Cost unsweetened 1.3814 1.2845 1.4302 1.2859
Sugar .0404 .0361 .0721 .0725
Total cost $1.4218 $1.3206 $1.5023 $1.3584

Blended Juice Tangerine Juice
Number of firms 7 7 3 4
Cases per firm 54,419 329,682 13,452 57,584

Cost per case:
Material $0.8576 $0.8564 $0.8369 $0.8566
Labor:
Direct .0685 .0786 .1011 .0779
Indirect .0344 .0146 .0535 .0104
Warehousing and
shipping .0492 .0386 .0585 .0433
Total labor .1521 .1318 .2131 .1316
Other manufacturing .2449 .1600 .1503 .1555
Total processing and
warehousing 1.2546 1.1482 1.2003 1.1437
Administrative and
selling .1104 .0981 .1056 .1030
Other cost .0627 .0411 .0575 .0615
Cost unsweetened 1.4277 1.2874 1.3634 1.3082
Sugar .0521 .0445 .0433 .0458
Total cost $1.4798 $1.3319 $1.4067 $1.3540









A comparison of average costs for the large and the small volume groups

for 12/404 cases is as follows:

Increase in cost
for small over
Under Over large volume
1,000,000 cases 1,000.000 cases group

Orange juice $1.38 $1.28 $0.10
Grapefruit juice 1.43 1.29 .14W
Blended juice 1.43 1.29 .14
Tangerine juice 1.36 1.31 .05.

The major portion of other higher costs for low-volume finms, except

for tangerines, was their higher "Other Manufacturing" costs which included

much of the overhead items. These costs were six cents higher for orange

juice, nine cents higher for grapefruit and eight cents higher for blended

juices.

Small volume processors of tangerine juice had eight cents higher labor

cost while their materials, other manufacturing, and other costs were slightly

lower than for large volume firms.


Cost of Processing, Warehousing and Selling Citrus Sections

The cost of processing, warehousing and selling citrus sections pro-

cessed in 24/2 cases jumped from $2.34 for the 1950-51 season to $2.52 for

the 1951-52 season as shown in the following comparison of grapefruit sections

for six previous seasons:

1951-52 1950-51 1949-50 1948-49 1947-48 1948-49
Grapefruit Sections $2.52 $2.34 $2.28 $2.26 $2.27 $2.13

The total increase in cost since the 1946-47 season has been 39 cents.

Eighteen cents or almost half of the increase was for 1951-52 over 1950-51

season. The volume per firm of 24/2 cases was 60% less than in 1950-51. How-

ever, this was offset by a shift to 24/303 cases.








Table 14.-Cost per 24/2 Case of Processing, Warehousing and
Selling Florida Citrus Sections, Canneries, 1951-52



Grapefruit Grapefruit Salad
Sections Sections Sections
Type of container 24/ 24/303 24/303
Number of firms _..10 11 8
Cases per firm 76.877 126.134 34.110

Cost per case:
Material $0.8717 $o0.8109 $0.8065
Labor:
Direct .9481 .8073 1.0447
Indirect .0511 .0404 .0576
Warehousing and shipping .0373 .0389 .0394
Total labor 1.0365 .8866 1.1417
Other manufacturing .2470 .1805 .2191
Total processing and
warehousing 2.1552 1.8780 2.1673
Administrative and selling .1002 .0874 .0894
Other cost .0328 .0290 .0257
Sugar .2359 .1963 .1965
Total cost $2.5241 $2.1907 $2.4789

Table 14 shows the major items of cost for the most common containers

and fruit packs. The 24/2 case of grapefruit sections cost 33 cents more to

process than did the 24/303 and contains five percent less volume. Therefore,

for an equivalent volume (basis 24/2) the 24/2 case pack cost 44 cents more


than did the 24/303 case.









Cost of Processing, Warehousing and Selling Frozen Orange Concentrate.


The cost of processing and warehousing frozen orange concentrate has de-

creased 14 cents per gallon or 30 percent since the first major production

season, 1948-49. Cost per gallon for labor, manufacturing expense, adminis-

trative and other cost but excluding containers and selling expense for each

season were:

1951-52 1950-51 1949-50 948- 9
Frozen Orange Concentrate $0.326 $0.36 $0.451 $.465

The average cost per gallon for processing frozen orange concentrate

in 1951-52 by the seven firms in the group is shown by major items of cost

in Table 15. The average production per firm increased from 2,207,198 gal-

lons in 1950-51 to 3,280,301 in 1951-52. Cost per gallon decreased two

cents. Most of this decrease was in indirect overhead expenses which indi-

cates that the increase in volume was a major factor in reducing the cost.

Table 16 presents detail costs for orange concentrate for two major

container types, 48/6, and 12/32 cases. Container costs are included but

selling expense is omitted. The 48/6 case cost was five cents greater than

12/32 case although it contained 25 percent less volume. Therefore, on an

equivalent volume (basis 48/6) the 48/6 case cost was 47 cents higher than

the 12/32 case.









Table 15.-Cost per Gallon of Processing and Warehousing Frozen Orange
Concentrate, Excluding the Cost of Cans, Cartons and
Selling, 7 Florida Firms, 1951-52




Frozen Orange Concentrate


Gallons Der firm


Cost per gallon

Labor:
Direct
Indirect
Warehousing and shipping
Total labor

Other manufacturing:
Power, light, water
Maintenance building and equipment
Royalties
Depreciation
Taxes, licenses and insurance
Miscellaneous
Total other manufacturing
Administration
Advertising stamps, testing and inspection
Total cost


1.280.101


$0.0691
.0131
.0128
("955

.0451
.0273
.0281
.0364
.0086
.0108
.1563
.0473
.0273
$0.3259


Table 16.-Type of Container and Cost of Processing and
Warehousing Frozen Orange Concentrate,
6 Florida Firms, 1951-52.


Frozen Orange Concentrate
Type of container 48/6 Case 12/32 Case
Number of firms 6 5

Cost per container:
Material:
Cans $0.9499 $0.5866
Cartons .0707 .0914
Total material 1.0206 .6780
Labor .2079 ,l .3351
Other manufacturing .3494 ..4593
Total processing and warehousing 1.5779 1.4724
Administrative .1115 .1484
Adv. stamps, testing and inspection .0601 .0805
Total cost $1.7495 $1.7013









Definition of Terms


COST PER FIRM
The cost per firm or per container is a weighted average obtained by
dividing the sum of all the dollar costs for the specific container
by the total number of containers to which those costs apply.

TYPE OF FIRM
Specialized firm: A fresh fruit packing plant which has no processing
facilities or arrangements; or a processing plant which has no facilities
or arrangements for packing fresh fruit.
Affiliated firm: A fresh fruit packing plant which has a pre-season
arrangement for handling fruit for processing, either through part
ownership in or an arrangement with a processor.
Integrated firm: A plant where fresh fruit packing and processing are
under one ownership and management.

VOLUME
With packinghouses it is the number of 1-3/5 boxes of citrus fruit packed
and bulk handled through the packinghouse.
With processors it is the number of cases of citrus fruit products canned.

PACKING OPERATIONS
Boxes per packinghouse: Average volume, 1-3/5 bushel equivalent.
Containers: Measured by the equivalent number of 1-3/5 bushels.
Boxes 1-3/5 bruce, 1-3/5 standard wrapped, 1-3/5 standard unwrapped,
1-3/5 venco (a flat pack used in Texas), 4/5 bruce, 4/5 bruce flat,
4/5 standard.
Bags 1/2 box or 40-pound, 1/4 box or 20 pound, 10-pound, 8-pound,
5-pound, 8- and 5-pound bags in a master container.

COST ITEMS:
Materials: Crates, bags, fruit wraps, labels and paste, nails, strips
and straps, end guards, paper, bulkheads, pads.
Labor: Receive, truck, dump; crate making and labeling; foreman,
graders, others; wrap and pack; truck, check,load; social security and
compensation insurance payroll taxes.
Other direct operating: Power, lights, water; building and equipment
repairs; miscellaneous supplies.
Indirect operating: Insurance, taxes, licenses, depreciation, rent.
Total Packing: Includes materials, labor, other direct operating,
indirect operating.
Administrative and selling: Management and office salaries; office
supplies and expense; auto and travel; telephone and telegraph; mis-
cellaneous office expense; sales department costs or charges for selling.
Does not include brokerage or terminal market charges.
Other cost: Florida and Texas-- gas coloring, color add and wax, pre-
cooling, inspection. Florida only-- advertising taxes, marketing
agreement assessments, tangerine cooperative.









PROCESSING OPERATIONS
Blended Juice: A mixture of orange and grapefruit juices, with the
proportion of each varying from 60-40 to 40-60 percent.
Cases per firm: Number of cases processed.
Containers;
Kind Cans per case Size of Can
2/ 24 18-ounce
12/32 12 32-ounce
12/404 or 12/46 12 46-ounce
6/10 6 108-ounce
72/6 72 6-ounce
24/6 24 6-ounce
48/6 48 6-ounce
24/303 24 15-ounce

Cost items:
Material: Cans, cartons, labels, freight on materials.
labor: Plant and warehouse labor, supervision, mechanic, watchman,
payroll taxes.
Other manufacturing: Depreciation, repairs and maintenance of
building and machinery, power, lights, water, fuel, royalties,
insurance, taxes, miscellaneous supplies, other operating ex-
pense, warehouse expense other than labor.
Administrative: Management and office salaries, office supplies
and expenses, auto and travel, operating interest, telephone and
telegraph, legal and audit, dues, subscriptions, other adminis-
trative expense.
Selling: Salaries of salesmen and others, advertising, other plant
selling costs. Brokerage discounts and allowances are omitted.
Total cost: The cost excluding sugar of processing, administration,
and selling. When given, the cost of sugar is the average for those
firms that produced sweetened Juices, sections and salads.









Other Publications Available


Fugett, K. A. and Samuels, J. K., Cost of Handling Texas Citrus, Fresh and Pro-
cessed, 1946-47. Texas Agricultural Experiment Station Bulletin 709, 1949.

Fugett, K. A., Baker, C. K., and Mayes, ). M., Schedule for Pricing Texas Citrus
According to Containers. Texas Agricultural Experiment Station, Progress
Report 1290, 1950.

Capel, G. L., Coryell, Jay, and Samuels, J. K., Analysis of Packinghouse Cost
for 31 Southern California Citrus Associations, 1946-47 and 1947-48 Seasons.
Farm Credit Administration Special Report 214, 1950.

Cochran, L. Wayne, Wholesale Margins for Fresh Citrus Fruits in the Pittsburgh,
Pennsylvania Wholesale Fruit and Vegetable Market. Production and Marketing
Administration, Fruit and Vegetable Branch, Unnumbered Report, 1950.

Marketing Desert Grapefruit, Arizona Agricultural Experiment Station Bulletin
221, 1949.

Bulk Handling Compared with the Use of Field Boxes in the Harvesting of Desert
Grapefruit. Arizona Agricultural Experiment Station Report No. 89, 1949.

Tree to Car Costs of Marketing Desert Citrus Fruit, Arizona Agricultural Experi-
ment Station Report No. 92, 1949.


Lilieholm, W. C., Grove to Retail Margins for
in Fresh Form in Selected Cities, 1940-48.
Unnumbered Report, 1950.


Florida Valencia Oranges Marketed
Bureau of Agricultural Economics


Samuels, J. K., and Goldsborough, G. H., Wholesale Distribution of Citrus Fruits
in Five Terminal Markets, December 1946--March 1947. Farm Credit Administration
Miscellaneous Report 139, 1950.

Retailing Grapefruit and Grapefruit Products in Los Angeles. Arizona Agricul-
tural Experiment Station Bulletin 96, 1950.


Hamilton, H. G. and Samuels, J. K., Cost of
Processed and Fresh Form, 1944-45 Season.
Experiment Station, 1946.


Handling Florida Citrus Fruit in
Special Report, Florida Agricultural


Samuels, J. K. and Hamilton, H. G., Cost and Methods of
Supplying Canners with Citrus Fruit, 1944-45 Season.
Agricultural Experiment Station, 1946.


Operation of Dealers
Special Report, Florida


Samuels, J. K., Fugett, K. A., Little, H. W. and Hamilton, H. G., Cost
Florida and Texas Citrus Fruits in Fresh and Processed Form, 1946-47
Special Report, Florida Agricultural Experiment Station, 1948.

Samuels, J. K., Fugett, K. A., Little, H. W. and Hamilton, H. G., Cost
Florida and Texas Citrus Fruits in Fresh and Processed Form, 1947-48
Special Report, Florida Agricultural Experiment Station, 1949.


of Handling
Season.


of Handling
Season.









Little, H. W., Hamilton, H. G., Fugett) K. A. and Samuels, J. K., Cost of
Handling Florida and Texas Citrus Fruit in Fresh and Processed Form, 1948-49
Season. Special Report, Florida Agricultural Experiment Station, 1950.

Brooke, D. L., Little, H. W., Hamilton, H. G., Fugett, K. A., and Samuels, J. K.,
Cost of Handling Florida and Texas Citrus Fruit in Fresh and Processed Form,
1949-50 Season. Special Report, Florida Agricultural Experiment Stations,
1951.

Hamilton, H. G., Samuels, J. K. and Little, H. W., Estimated Cost of Handling
Florida Citrus Fruits in Fresh and Processed Form from Tree to Chicago Whole-
sale Market, 1946-47 through 1950-51 Seasons; Agricultural Economics Series
51-5, Florida Agricultural Experiment Station, April 1951.

Spurlock, A. H., Cost of Picking and Hauling Florida Citrus Fruits, 1950-51
Season; Agr. Econ. Series 52-1, Florida Agricultural Experiment Station,
June 1952.

Tennant, J. L., Hamilton, H. G., Sorenson, H. B., and Samuels, J. K., Cost of
Handling Florida and Texas Citrus Fruits in Fresh and Processed Form,
1950-51; Agr. Econ. Series 52-5, Florida Agricultural Experiment Station,
June 1952.

Tennant, J. L., Assest of 33 Citrus Packinghouses, 1951; Agr. Econ. Series
52-10, Florida Agricultural Experiment Station, November 1952.

Spurlock, A. H., Costs of Picking and Hauling Florida Citrus Fruits, 1951-52
Season; Agr. Econ. Series 53-2, Florida Agricultural Experiment Station,
January 1953.
























Ag. Econ.-600
ET 9/11/53




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