• TABLE OF CONTENTS
HIDE
 Title Page
 Preface
 Table of Contents
 Fresh citrus fruit
 Processed citrus products
 Definition of terms






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, 1952-53 season.
ALL VOLUMES CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00076935/00004
 Material Information
Title: Cost of handling Florida and Texas citrus fruits in fresh and processed form, 1952-53 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 ; 54-14
Physical Description: Serial
Creator: Marketing Research Act
Publisher: University of Florida, Agricultural Experiment Station.
Publication Date: 1952-1953
 Record Information
Bibliographic ID: UF00076935
Volume ID: VID00004
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 164845076

Table of Contents
    Title Page
        Title Page
    Preface
        Page 1
    Table of Contents
        Page 2
    Fresh citrus fruit
        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
        Page 20
        Page 21
        Page 22
        Page 23
    Processed citrus products
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
    Definition of terms
        Page 34
        Page 35
Full Text






Agricultural Economics Mimeo Report 54-14


University of Florida Agricultural Experiment Station,
Gainesville, Florida; and, Cooperative Research and Service
Division, Farmer Cooperative Service, United States Depart-
ment of Agriculture, Washington D. C. cooperating.







COST OF HANDLING FLCRIDA CITRUS FRUIT IN

FRESH AND PROCESSED FORM

1952 1953






A Study Conducted with Funds Provided by
the Research Marketing Act













University of Florida
Agricultural Experiment Station
Gainesville, Florida
May 15, 1954













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 six seasons 1946-47 to 1951-52 have been

published previously. 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 packing houses and of

the time and labor used in handling the fruit from the tree through the

packing house.



This report was prepared by:

Eric Thor, Associate Agricultural Economist, A. H. Spurlock, Agri-
cultural 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, Acting
Director, Farmer Cooperative Service, U. S. Department of Agri-
culture, Washington 25, D. C.










C 0 N T E N T S

Page
FRESH CITRUS FRUIT

Trend in Packing and Selling Cost . . .. 3

1952-53 Costs of Packing and Selling . .. 6

1952-53 Costs of Packing . . .. ... 9

Variation in Packing and Selling Cost.. .. .. .. 10

Variation in Packing Cost . . ... 12

Relationship of Volume to Average
Packing and Selling Cost .... . . ... 15

Type of Firm and Costs .... ........ . .. 20


PROCESSED CITRUS PRODUCTS

Cost of Processing, Warehousing and Selling Citrus Juices. . 24

Variation in Processing, Warehousing and Selling Costs . 26

Volume and Cost of Processing, Warehousing and Selling . 29

Cost of Processing, Warehousing and Selling Citrus Sections. 29

Cost of Processing, Wiarehousing and Selling Frozen
Orange Concentrate . . ....... 31


DEFINITION OF TERMPS . . . . . 34









FRESH CITRUS FRUIT

Trend in Packing and Selling Cost


The cost of packing and selling Florida citrus is increasing.-- The

average total cost per box for packing and selling Florida citrus sold

for fresh consumption has been increasing during the past five years,

Table 1. The average total per-box costs I/ are based on a rather large

sample of Florida fresh fruit packing houses. j/

As shown in Table 1, the average total cost per box for oranges

packed in 1-3/5 bruce boxes increased from $0.83 for the 1948-49 season to

$0.95 for the 1952-53 season. Oranges packed in 1-3/5 standard boxes

increased from $1.16 to $1.27, those packed in 8 pound mesh bags increased

from $1.01 to $1,21, and the cost per box for 5 pound mesh bags increased

from $1.18 to $1.45.

The average total cost per box for packing and selling grapefruit in-

creased from $0.74 in the 1948-49 season to $0.85 in the 1952-53 season

for the 1-3/5 bruce box, and from $1.08 to $1.17 for 1-3/5 standard boxes.

The per-box costs for the 8 pound mesh bag and the 5 pound mesh bag in-

creased from $0.92 to $1.12, and from $1.17 to $1.32 respectively.

The average total cost per box for packing and selling tangerines

increased during the five-year period from $1.19 to $1.44 for 4/5 bruce

boxes and from $1.35 to $1.58 for 4/5 standard boxes,

This upward trend in seasonal cost is illustrated graphically in

Figure 1. The cost per box is shovn on the vertical scale ond the sea-

sons on the horizontal scale.


JL/ For all types of containers used throughout the publication, costs have
been computed on the basis of a 1-3/5 bushel equivalent box.
_/ Number of houses included in each of the years: 1948-49 73, 1949-50 -
73, 1950-51 77, 1951-52 67, 1952-53 43.







Dollars
per Bor--


ORANGES










5 b. esh a
/

/ 5 1b. Mesh Bag


/ -- 3/5 Std.
.- ..-' Wrap

8 lb. Mesh Bag

/8 Ib. Mesh Bag


1-3/5 Bruce


194B-49 49-50 53-51 51-52 52-53

Season


GEAPEPRUIT












-A
-5 lb. Mesh Bag


1-a 3
d. Wrap ,


/


/


8 lb.


esh Bag
Mesh Bag


/"1-3/5 Bruce


TANGERINES




/ 4/5 Standard Box


If
/ 4/5 Bruce Box
/
!


I I


1948-49 49-50 50-51 51-52 52-53

Season


1948-49 49-50 50-51 51-52 52- 53

Season


Figure 1.- Trend in the Total Cost per 1-3/5 Bushel Box Equivalent for Packing and Selling
florida Citrus Sold for Fresh Consumption, 1948-49 thru 1952-53.


1.61-


1.4-


1.3 -


1.2 -


0.9


0.8


0.7 -


0o.


-e










The average yearly rate of increase in the cost of packing and selling

oranges was 2.9 percent for 1-3/5 bruce boxes, 2.0 percent for 1-3/5

standard wrapped boxes, 4.0 percent for 8 pound bags, and 4.5 percent for

5 pound bags. Grapefruit had an average yearly rate of increase of 3.2

percent for 1-3/5 bruce boxes, 1.6 percent for 1-3/5 standard wrapped

boxes, 4.5 percent for 8 pound bags and 2.6 percent for 5 pound bags.

The annual rate of increase for tangerines in 4/5 bruce boxes was 4.2 per-

cent and in 4/5 standard boxes it was 3.5 percent.


Table 1.--Average Total Cost per 1-3/5 Bushel Equivalent for Packing
and Selling Florida Citrus Sold for Fresh Consumption,
1948-49 thru 1952-53.


Type of Pack
Boxes
1-3/5 : 1-3/5 :
Bruce Std. Wrap :
- - -dollars per 1-3/5 bu.
Oranges
.8330 1.1590
.8785 1.1368
.9166 1.2062
.9111 1.2526
.9530 1.2730
Grapefruit
.7359 1.0785
.8046 1.0257
.8196 1.0945
.8487 1.1907
.8543 1.1669


Tangerines


4/5 Bruce
Box
1.1916
1.2491
1.4250
1.3994
1.4417


Mesh Bags
8
lb.
equivalent -

1.0052
1.0488
1.1490
1.1069
1.2067


lb.



1.1822
1.2580
1.4086
1.3444
1.4469


.9153 1.1736
.9453 1.2387
1.0849 1.3201
1.0467 1.2670
1.1231 1.3233

4/5 Standard
Box
1,3479
1.5702
1.4938
1,5074
1.5827


Season


1948-49
1949-50
1950-51
1951-52
1952-53


1948-49
1949-50
1950-51
1951-52
1952-53



1948-49
1949-60
1950-51
1951-52
1952-53


-I---~






1952-53 Costs of Packing and Selling


The average total cost per 1-3/5 bushel equivalent for packing and

selling Florida citrus in 1952-53 varied with the type of fruit and type of

container. -- In general, grapefruit cost less to pack and sell than oranges,

which in turn were less than tangerines (Table 2). The differences in con-

tainer cost were due primarily to the variations in material and labor costs.

A comparison between the cost of packing bags and packing boxes depended to

a certain extent upon the size of the bag, The larger 1/2 box bags tended

to have a lower cost on a 1-3/5 bushel equivalent basis than did the fruit

packed in 1-3/5 bruce boxes, while the 1/4 box bags were slightly higher in

cost. Both 8 and 5 pound bags cost more to pack and sell than the 1-3/5 bruce

box, but the smaller sized 5 pound bag had a higher cost than the 8 pound bag.

The 5 pound bag had the highest cost of all the containers shown in T.ble 2.

The container having the second highest packing and selling cost was the 1-3/5

standard wrapped box.


Cost of packing and selling oranges. -- The 1952-53 cost per box for

oranges packed in 1-3/5 bruce boxes was $0.95. The average cost of packing

and selling oranges in 8 pound bags was $1.21 or $0.26 more than the 1-3/5

bruce box. The houses included in the sample packed seven times more oranges

in 1-3/5 bruce boxes than in 8 pound bags. The average cost of packing and

selling oranges in 1-3/5 standard wrapped boxes was $1.27 or $0.32 more than

the 1-3/5 bruce box. The 5 pound mesh bag had an average cost of $1.45 per

1-3/5 bushel equivalent, so that it cost $0.50 morethan the 1-3/5 bruce box

to pack and sell.




7
Table 2.--Cost of Packing and Selling Florida Citrus Fruit Per 1-3/5
Bushel Box Equivalent by Type of Container, 43 Packing
Houses, 1952-53.

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 1Wrapped Bag Bag Bag Bag
Number of Packing Houses 39 15 24 27 31 30
1-3/5 Boxes per Firm 120,880 55,213 778 1,253 16,889 13,187
Costs per 1-3/5 bushel:
Material $0.4072 00.6596 $0.3339 00.4049.. 00.5369 00.7369
Labor:
Receive, truck, dump .0352 .0372 .0400 .0384 .0482 .0498
Crate making & labeling .0361 .0392 .0122 .0144 .0141 .0172
Foreman, graders & others .0523 .0732 .0709 .0695 .0850 .1038
Wrap & pack .0627 .1128 .0077 .0731 .0995 .1227
Truck, check, load .0381 .0357 .0492 .0474 .0605 .0707
Payroll taxes .0162 .0201 .0161 .0168 .0201 .0224
Total labor .2368 .3182 .2561 .2596 .3274 .3636
Other direct operating .0645 .0640 .0570 .0618 .0786 ,0799
Indirect operating .: .0324 .0495 .0378 .0378 .0475 .0470
Total packing .7427 1.0913 .6848 .7641 .9904 1.2504
Administrative & selling .1077 .1043 .0902 .1058 .1146 ,1042
Other items .1026 .0774 .0939 .1004 .1017 .0923
Total packing
and selling $0.9530 $1.2730 $0.8689 00.0703 .1.2067 $1.4469



Grapefruit

1-3/5 1-3/5 1/2 Box 1/4 Box C-lb. 5-lb.
Type of Container Bruce Std.Box Mesh Mesh Lesh Mesh
Box Wrapped Bag S Ea Ba? Bag
lib;r of Pac .~:Ho 'Ts 40 14 11 8 29
1-/ Bo, peJr rm 101,605 79,768 340 247 4,]
Costs per 1-3/5 bushel:
Material $0.4035 00.6522 00.3206 00.5927 00 ,233 00.7068
Labor:
Receive, truck, dump .0277 .0336 .0265 .0410 .0420 .0440
Crate making & labeling .0314 .0354 .0177 ,0005 .0155 .0179
Forecman, graders & others .0339 .0529 .0393 .0779 .O<'02 .0639
Wrap & pack .0489 .0814 .0487 .0572 .0?77 .1146
Truck, check, load .OC36 .0317 .0543 .0597 .0593 .0598
Payroll taxes .0118 .0154 .0302 .16 .0158 .0176
Total labor .1L71 .2504 .1767 ;, 5705 .3178
Other direct operating .0520 .0468 .0351 .0714 .0726 .0706
Indirect operating .0255 .0404 .02'6 9.C09 .0417 .o088
Total packing .6o61 .9898 .56, '411 9J'l 1.15 40
Adminis-'..ative & selling .0952 .0950 .0977 .0916 .1112 .0985
Other items .0930 .0821 .104, .0358 .00C .0908
Total packing
anr selling0.8543 $1.1669 00.7621 0__ 8993 41.1231 $1.3233







Table 2.--Cost of Packing and Selling Florida Citrus Fruit Per
1-3/5 Bushel Box Equivalent by Type of Container,
43 Packing Houses, 1952-53. (Concluded)


Type f Cotainr __________


Type of Container
Number of Packing Houses
1-3/5 Boxes per Firm

Cost 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
Indirect operating
Total packing
Administrative and selling
Other items
Total packing and selling


Tangerines

4/5 Bruce
24
24, 951


$0.6428

.0429
.0688
.0887
.1107
.0677
.0280
.4068
.0995
.0583
1.2074
.1182
.1161
$1.4417


4/5 Bruce Flat
13
20,675


$0.6799

.0561
.0709
.0800
.1032
.0747
.0277
.4126
.0304
.0600
1.2329
.0974
.1076
$1.4379


4/5 standard
5
914


$0.8052

.0414
.0595
.0884
.1143
.0591
.0234
.3861
.0757
.0565
1.3235
.1145
.1447
$1.5827


It costs loss to Tack and sell -ranefr'rit than oranmes.-- The average

total cost to nack and sell grapefruit in 1-3/5 bruce boxes was $0.85.

Eight pound bags cost $1.12 or $0.27 more than the 1-3/5 bruce box. The

houses included in the sample packed about 12 times more grapefruit in 1-3/5

bruce boxes than they did in 8 pound bags. The-cost of packing and selling

grapefruit in 1-3/5 standard wrapped boxes was $1l17 it.5 pound bags,$1.32 per

1-3/5 bushel equivalent. The cost of grapefruit packed in 1-3/5 standard

wrapped boxes was $0.32 more than in 1-3/5 bruce boxes, and when packed in

the 5 pound bags the cost was $0.h7 more.


The cost of packing and selling 1-3/5 bushels of tangerines in h/5

bruce boxes averaged $1.ht.-- The houses in the sample showed no




9
significant difference between the cost of packing a regular 4/5 bruce box

and a 4/5 bruce flat box. The number of houses packing tangerines in a

4/5 standard box was small and their volume averaged less than one thousand
boxes each. The average cost of the houses in the sample for packing tan-

gerines in 4/5 boxes was $1.58 for a 1-3/5 bushel equivalent.


1952-53 Costs of Packing

Material, labor, direct operating and indirect operating costs are

combined to give total packing cost. -- Material expense is the greatest

single item in the cost of packing citrus sold for fresh consumption.

The material costs for oranges packed in 1-3/5 bruce boxes equaled 54.8

percent and labor 32.1 percent of the average total packing cost. The
average total cost for packing oranges in the 1-3/5 bruce box was $0.74.

Material and labor costs for grapefruit in 1-3/5 bruce boxes were 60.4

and 28.0 percent respectively. The average total packing cost for a 1-3/5

bruce box was $0.67. The material cost for packing tangerines in a 4/5

bruce box was 53.2 percent and labor 33.7 percent of the total cost. The

total packing cost of a 4/5 bruce box on a 1-3/5 bushel equivalent basis was

$1.21.

Differences in packing costs for the various containers were approxi-

mately the same as the differences in total packing and selling costs.

An 8 pound bag cost $0.99 or $0.25 more than the 1-3/5 bruce box ($0.74)

for packing oranges. The 1-3/5 standard wrapped box cost $1.09 and the 5

pound bag cost $1.25 exceeding by $0.35 and $0.51 respectively the cost of
packing oranges in 1-3/5 bruce boxes.

Grapefruit packed in 8 pound bags cost $0.92 or $0.25 more than those

packed in 1-3/5 bruce boxes ($0.67). The 1-3/5 standard wrapped box cost

$0.99 or $0.32 more, and the 5 pound bag cost $1.13 or $0.46 more than
the 1-3/5 bruce box.






A 1-3/5 bushel equivalent box of tangerines racked in 4/5 bruce flat

boxes cost $1.23 to pack, which was $0.02 more than the cost of packing a

4/5 bruce box ($1.21). The packing cost for the 4/5 standard box was $1.32

or $0.11 more than the 4/5 bruce box on a 1-3/5 bushel equivalent basis.

VARIATION IN PACKING AND SELLING COST

There was considerable variation from firm to firm in the cost of

packing and selling citrus in the various containers.-- The packing and

selling costs of oranges in 1-3/5 bruce boxes for 39 firms ranged from $0.83

to $1.23, with 36 of the firms included within the cost range of $0.85 to

$1.10 (Table 3). The range for 15 firms packing 1-3/5 standard wrapped

boxes was $1.08 to $1.45 with 13 falling in the range of $1.15 to $1.35.

The packing and selling costs for 8 pound mesh bags ranged from $1.02

to $1.46 for 31 firms. However, 30 of the firms were within the limits of

the $1.00 to $1.4O interval. The cost of packing and selling five pound

mesh bags ranged from $1.2i to $1.69 for 30 firms. Twenty-five of these

firms were between $1.35 and $1.69.

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

h0 firms ranged from $0.77 to $1.23. The cost of 37 of these firms are
included within the range of $0.77 to $1.00. Fourteen firms packing and

selling grapefruit in 1-3/5 standard wrapped boxes are fairly evenly

distributed within the range of $1,02 and $1.37 per box.

The spread in cost for the 29 firms packing 8 pound bags was between

$0.96 and $1.47 with 25 firms included within the cost interval of $0.95,

to $1.20. For 5 pound bags the spread in cost for 29 firms was from $1.1l

to $1.67.with 26 firms varying between $1.20 and $1.67.

The cost of packing and selling tangerines in 4h/ bruce containers

ranged from $1.26 to $1.62 for 24 firms. Of these firms, 20 were within






Table 3.--Variation in thegCost Per 1-3/5 Bushel Box Equivalent of
Packing and SellingsFlorida Citrus Fruit by Type of Container,
43 Packing Houses, 1952-53.


:Oranges
Cost per :1-3/5 : 1-3/5 : 1-3/5 : 1/2 Box: 1/4 Boxa 8-lb. : 5-lb.
1-3/5 bushel :Bruce :Std. Box :Std.Box: Mesh : Mesh : Mesh : Mesh
: Box *UnwraDDa q' Wrapped: Bag t Ba Bag : Bag : Bag
-- Number of packing houses - -
Under $0.6500 0 0 0 1 0 0 0
$0.65 .6999 0 0 0 1 0 0 0
.70 .7499 0 1 0 1 0 0 0
.75 .7999 0 0 0 2 0 0 0
.80 .8499 2 1 0 7 4 0 0
.85 .8999 4 1 0 5 6 0 0
.90 .9499 9 0 0 3 3 0 0
.95 .9999 9 1 0 2 1 0 0
1.00 1.0499 10 1 0 0 6 4 0
1.05 1.0999 4 1 1 0 1 3 0
1.10 1.1499 0 1 0 1 3 3 0
1.15 1.1999 0 0 2 1 1 6 0
1.20 1.2499 1 1 2 0 2 5 1
1.25 1.2999 0 0 6 0 0 5 1
1.30 1.3499 0 0 3 0 0 2 3
1.35 1.3999 0 0 0 0 2 7
1.40 1.4499 0 0 0 0 0 0 5
1.45 and over 0 1 1 0 0 1 13

Total number of firms 39 9 15 24 27 31 30


SGrapefru it
Cost per :1-35 1-3/5 : 1-3/5 : 1/2 Box: 1/4 Box : 8-lb.: 5-b.
1-3/5 bushel :Bruce :Std. Box :Std.Box: Mesh : Mesh : Mesh : Mesh
SBox :Unwrapped:Wrapped; Bag ; Bag : Bag : Bag
-- - Number of packing houses - -
Under $0.6500 0 2 0 7 2 0 0
$0.65 .6999 0 0 0 0 2 0 0
.70 .7499 0 0 0 1 1 0 0
.75 .7999 6 1 0 1 0 0 0
.80 .8499 11 2 0 2 0 0 0
.85 .8999 5 1 0 0 0 0 0
.90 .9499 11 0 0 0 2 0 0
.95 .9999 4 1 0 0 0 6 0
1.00 1.0499 1 1 1 0 1 6 0
1.05 1.0999 1 0 5 0 0 9 0
1.10 1.1499 0 0 1 0 0 1 1
1.15 1.1999 0 0 3 0 0 3 2
1.20 1.2499 1 1 3 0 0 0 5
1.25 1.2999 0 0 0 0 0 2 7
1.30 and over 0 1 1 0 0 2 14
Total number of firms 40 10 14 11 8 29 29






Table 3.--Variation in the Cost per 1-3/5 Bushel Box Equivalent of
Packing and Selling Florida Citrus Fruit by Type of Container,
43 Packing Houses, 1952-53. (Concluded)


Cost per : Tangerines__
1-3/5 Bushel : 4/5 Bruce : 4/5 Bruce Flat s 4/5 Standard
- - Number of packing houses - -
Under $1.1000 0 0 0
$1.10 1.1499 0 0 0
1.15 1.1999 0 0 0
1.20 1.2499 0 0 0
1.25 1.2999 2 1 0
1.30 1.3499 3 1 0
1.35 1.3999 6 2 0
1.40 1.4499 3 3 0
1.45 1.4999 4 1 1
1.50 1.5499 4 4 1
1.55 1.5999 1 0 1
1.60 and over 1 1 2
Total number of firms 24 13 5




the cost range of $1.30 to $1.55. The cost of 4/5 bruce flat boxes for

13 firms ranged from $1.25 to $1.68. The five firms packing and selling

tangerines in /5 standard boxes varied from 1.46 to $1.67.


VARIATION IN PACKIIN COST

Firm to firm variation in average packing cost was similar to variation

in average total packing and selling cost.--The packing costs of the L3

packing houses studied have been grouped according to cost on a 1-3/5

equivalent bushel basis to show the variations in operating costs excluding

administrative and selling and other expenses, and are shown in Table U.

The packing cost for oranges in 1-3/5 bruce boxes ranged from $0.64 to

$0.92 for 39 firms with 35 firms having a cost within the range of 00.65

and $0.90. Packing costs for 1-3/5 standard wrapped boxes fell into a $0.91

to $1.21 interval for 15 firms. Twelve of these 15 firms had a packing cost

within the ranre $0.95 and $1.15. For 8 pound bags 31 firms had costs





Table 4.--Variation in the Cost Per 1-3/5 Bushel Box Equivalent of Pack-
ing Florida Citrus Fruit by Type of Container, 43 Packing Houses,
1952-53.


SOranges
Cost per : 1-3/5 : 1-3/5 :1-3/5 : 1/2 Box : 1/4 Box: 8-lb. : 5-lb.
1-3/5 bushel : Bruce : Std.Box :Std.Box: Mesh : Mesh : Mesh : Mesh
: Box :Unwrapped:Wrapped: Bag : Bag : Bg : Bag
- --- -Number of packing houses - -
Under $0.4000 0 0 0 1 0 0 0
$0.40 .4499 0 0 0 0 0 0 0
.45 .4999 0 0 0 1 0 0 0
.50 .5499 0 0 Q 2 0 0 0
.55 .5999 0 0 0 2 1 0 0
.60 .6499 3 0 0 6 2 0 0
.65 .6999 5 2 0 7 4 0 0
.70 .7499 9 1 0 1 8 0 0
.75 .7999 10 0 0 2 5 0 0
.80 .8499 5 1 0 01 1. 2 0
.85 .8999 6 1 0 1 4 6 0
.90 .9499 1 2 1 0 0 7 0
.95 .9999 0 0 2 0 0 6 0
1.00 -1.0499 0 1 2 0 1 3 0
1.05 -1.0999 0 0 2 1 0 2 1
1.10 -1.1499 0 0 6 0 1 2 7
1.15 -1.1999 0 0 1 0 0 2 5
1.20 and over 0 1 1 0 0 1 17
Total No. of Firms 39 9 15 24 27 31 30


Grapefruit
Cost per :-3 : 1-3/ 13/5 : 1 2 5 1/ Box : 1/4 ox: 8-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 packing houses -
Under $0.6000 3 2 0 8 4 0 0
$0.60 .6499 12 1 0 1 0 0 0
.65 .6999 9 1 0 2 1 0 0
.70 .7499 6 2 0 0 1 0 0
.75 .7999 7. 0 0 0 1 6 0
.80 .8499 1 1 1 0 0 9 0
.85 .8999 2 1 3 0 1 6 0
.90 .9499 0 0 2 0 0 0 0
.95 .9999 0 1 4 0 0 2 2
1.00 1.0499 0 0 0 0 0 2 8
1.05 1.0999 0 0 3 0 0 2 7
1.10- 1.1499 0 0 0 0 0 1 2
1.15 1.1999 0 0 0 0 0 0 2
1.20 1.2499 0 0 1 0 0 1 3
1.25 1.2999 0 0 0 0 0 0 1
1.30 1.3499 0 1 0 0 0 0 2
1.35 1.3999 0 0 0 0 0 0 1
1.40 and over 0 0 0 0 0 0 1
Total No. of Firms 40 10 14 11 8 29 29






Table 4.--Variation in the Cost Per 1-3/5 Bushel Box Equivalent of
Packing Florida Citrus Fruit by Type of Container, 43
Packing Houses, 1952-53. (Concluded)


Cost per Tangerines
1-3/5 Bushel : 4/5 Bruce : 4/5 Bruce Flat : 4/5 Standard
- - -Number of Packing Houses- -

Under $1.0000 0 0 0
$1.00 1.0499 0 0 0
1.05 1.0999 6 2 0
1.10 1.1499 3 2 0
1.15 1.1999 2 3 i
1.20 1.2499 9 1 0
1.25 1.2999 2 1 0
1.30 1.3499 1 1 1
1.35 1.3999 1 2 1
1.40 1.4499 0 0 1
1.h5 1.4999 0 1 0
1.50 1.5499 0 0 0
1.55 1.5999 0 0 1
1.60 and over 0 0 0
Total number of firms 24 13 5

between $0.83 and $1.29, although 24 of these packing houses ranged between

$0.85 and $1.10. Costs for 5 pound bags clustered in a $1.08 to $1.58 inter-
val for 30 firms with 22 having costs over $1.15.

The packing costs of the 40 firms which packed grapefruit in 1-3/5

bruce boxes ranged from $0.57 to $0.88. Of these 40 firms, 34 were between

$0.60 and $0.80. The cost of the 1-3/5 standard wrapped boxes varied from

$0.83 to $1,21 for 14 firms with 12 of the 1i firms ranging from $0.85 to

$1.10. Packing cost for 8 pound bags for 29 firms ranged from $0.75 to $1.22,

but of these, 23 had costs between $0.75 and $1.00. The packing cost for 5

pound bags ran-ed from $0.99 to $1.47 for 29 firms, and from $1.00 to $1,25

for 22 of these firms.
The cost of packing tangerines in 4/5 bruce boxes for 24 packing houses

ranged from $1.05 to $1.39 and was between $1.05 and $1.25 for 20 of these

firms. The cost for 13 firms using 4/5 bruce flat containers varied from







$1.09 to $1.45, and nine were between $1.05 and $1.30. The range of 4/5

standard boxes for five firms was from $1.17 to $1.56, with three of

these firms ranging from $1.30 to $1.45.


RELATIONSHIP OF VOLUME TO AVERAGE
PACKING AND SELLING COST


Data indicates that there is a relationship between a firms cost per

box and the seasonal volume packed by the individual house.-- In order

to investigate some of the firm to firm variation in cost, the relationship

between the size of the packing house based on the total volume of citrus

handled per season and the average cost of packing and selling were studied.

The houses were divided into four seasonal volume classes, (1) under 200,000

boxes, (2) 200,000 to 399,999 boxes, (3) o00,000 to 699,999 boxes, and (4)

over 700,000 boxes. The average cost by type of fruit and type of pack was

calculated for each volume class and is shown in Table 5. The cost of packing

and selling oranges and grapefruit in 1 3/5 bruce boxes varied from one volume-

class to another with the smallest volume group, under 200,000 boxes, having

the highest cost, and the highest volume group, 700,000 and over, having the

lowest cost. The volume group of less than 200,000 boxes for the season had

the highest average cost for packing tangerines in 4/5 bruce boxes, and the

o00,000 699,999 box group showed the lowest cost per 1 3/5 bushel equivalent.

There was considerable variation in cost within each volume group.--

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

13 firms handling 700,000 boxes and over was:$6593.' For 11 firms in the

LiOO,000 699,999 box group and 13 firms'in the 200,000 399,999 box group

the cost was $0.98. For two firms in the under 200,000 box group the cost








Table 5.--Volume and the Cost of Packing and Selling Florida Citrus
Fruit in Bruce and Standard Boxes, 43 Packing Houses, 1952-53.


: Under ; 200,000- : 400,000- : 700,000 : All
Citrus Fruit Handled : 200,000 : 399,999 : 699,999 : and over : Volumes
Oranges in 1-3/5 bushel bruce boxes
Number of packing houses 2 13 11 13 39
Average pack of oranges
(1-3/5 bu. equivalent) 34,946 48,804 112,240 213,486 120,880
Cost per 1-3/5 bushel:
Material $0.4214 $0.4189 $0.4023 $0.4064 $0.4072
Labor:
Receive, truck, dump .0308 .0373 .0359 .0311 .0332
Crate making & labeling .0299 .0413 .0410 .0328 .0361
Foreman, graders, others .0543 .0502 .0542 .0519 .0523
Wrap & pack .0665 .0591 .0623 .0636 .027
Truck, check, load .0250 .0440 .0403 .0361 .0381
Payroll taxes .0179 .0174 .0168 .0156 .0162
Total labor .2244 .2493 .2505 .2311 .2386
Other direct operating .0801 .0557 .0661 .0655 .0645
Indirect operating .0527 .0374 .0297 .0319 .0324
Total packing .7786 .7613 .7486 .7349 .7427
Administrative & selling .1750 .1245 .1206 .0964 .1077
Other items .1084 .0960 .1079 .1016 .1026
Total packing & selling$1.0620 $0.9818 $0.9771 $0.9329 W0.9530



Grapefruit in 1-3/5 bushel bruce boxes
Number of packing houses 3 13 11 13 40
Average pack of grapefruit
(1-3/5 bu. equivalent) 9.083 41.492 95.910 187.890 101,605
Cost per 1-3/5 bushel:
Material $0.4229 $0.4184 $0.3966 b0.4029 0.40Z5
Labor:
Receive, truck, dump .0309 .0365 .0268 .0261 .0277
Crate making & labeling .0293 .0379 .0313 .0300 .0314
Foreman, graders, others .0434 .0402 .0292 .0345 .0339
Wrap & pack .0516 .0475 .0485 .0493 .0489
Truck, check, load .0250 .0375 .0342 .0325 .0336
Payroll taxes .0154 .0135 .0108 .0115 .0116
Total labor .1956 .M131 .1808 .1839 .1371
Other direct operating .0553 .0426 .0511 .0545 .0520
Indirect operating .0376 .0302 .0238 .0251 .0255
Total packing .7114 .7043 .6523 .6664 .6681
Administrative & selling .1415 .1274 .1029 .0809 .0932
Other items .1066 .1001 .1052 .0861 .0930
Total packing & selling$0.9595 $0.9318 $0.8604 0O.8334 $0.8543







Table 5.--Volume and the Cost of Packing and Selling Florida Citrus
Fruit in Bruce Boxes, 43 Packing Houses, 1952-53.(Concluded)


Citrus fruit handled : Under : 200,000-: 400,000- 700,000 All
Citrus fruit handled : 200,000 : 399,999 : 699,999 : and Over : Volumes
Tangerines in 4/5 bruce boxes
Number of packing houses 2 6 8 8 24
Average pack of tangs.
i-3/5 bu. equivalent) 10,j56 '11,407 18,531 45,.125 24,951

Cost per 1-3/5 bushel:
Material $0.6823 $0.6466 $0.6089 $0.6536 $0.6428
Leb or:
Receive, truck, dump .0320 .0393 .0445 .0436 .0429
Crate raking & labeling .0630 .0803 .0682 .0671 .0688
Foreman, graders, others .0759 .0959 .0870 .0889 .0887
VTrap & pack .1049 .1068 .1040 .1145 .1107
Truck, check, load .0553 .0792 .0618 .0687 .0677
Payroll taxes .0290 .0315 .0260 .0280 .0280
Total labor .3601 .4330 .3915 .4108 .4068
Other direct operating .1025 .0935 .0803 .1083 .0995
Indirect operating .0696 .0643 .0439 .0625 .0583
Total packing 1.2145 1.2374 1.1246 1.2352 1.2074
Administrative & selling .1712 .1344 .1331 .1059 .1182
Other items .1219 .1213 .1360 .1066 ,1161
Total packing & selling$l.5076 ~1.4931 L1.3937 1-4477 8A1.44-7


was $1.06. As shown in Table 6, the cost of

1-3/5 bruce boxes was less than $1.00 for 18

the firms handling more than 400,000 and for

the firms handling less than 400,000 boxes.


packing and selling oranges in

of the 24, or 75 percent of

6 of the 15, or O4 percent of


The cost of packing oranges in 1-3/5 bruce boxes in the 700,000

and over box group was $0.73 in the 400,000 699,999 volume group it

was $0.75, in the 200,000 399,999 group it was $0.76, and in the under

200,000 box group the packing cost was $0.78.


Grapefruito-- For 1-3/5 bruce boxes the cost of packing and selling

grapefruit in 1952-53 was $0.83 for 13 firms in the 700,000 and over box

group. For 11 firms in the 400,000 699,999 box group the cost was $0.86

and for 13 firms in the 200,000 399,999 box group it was $0.93. Three






Table 6.-


Volume of Fruit Handled and Variation in the Cost of Packing and
Selling Florida Fruit in Bruce Boxes, 43 Packing Houses, 1952-53.


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 0 0
$0.80 .8999 0 2' 1 3 6
.90 .9999 0 4 7 7 18
1,00 1.0999 2 6 3 3 14
1.10 and over 0 1 0 0 1


Grapefruit in 1-3/5 bruce boxes

Under $0.8000 0 0 2 4 6
$.80 .8999 0 6 6 4 16
.90 .9999 3 6 1 5 15
1.00 1.0999 0 0 2 0 2
1.10 and over 0 1 0 0 1


Tangerines in 4/5 bruce boxes

Under $1.1000 0 0 0 0 0
$1.10 1.1999 0 0 0 0 0
1.20 1.2999 0 1 1 0 2
1.30 1.3999 0 3 3 3 9
1.40 1.4999 0 1 2 4 7
1.50 1.5999 2 0 2 1 5
1.60 and over 0 1 0 0 1







firms packing under 200,000 boxes had a cost of $0.96 for packing and

selling.

Sixteen out of 24, or 67 percent of the firms handling over 400,000

boxes, and six out of 16, or 38 percent of the firms in the under 400,000

box category, had packing and selling costs less than $0.90.

The cost for packing grapefruit in 1-3/5 bruce boxes for the 700,000

and over box group was $0.67 and for the 400,000 699,999 box group it was

$0.65. Firms in the 200,000 399,999 volume group had a cost of $0.70 and

those in the under 200,000 box group had a cost of $0.71.


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

boxes averaged $1.39 for eight firms in the 400,000 699,999 volume group.

The second lowest cost was $1.45 for eight firms in the 700,000 and over

group. Six firms in the 200,000 399,999 volume group had a cost of P1.49

and two firms in the under 200,000 volume group had a total cost of $1.51.

Seven out of 16, or 44 percent of the firms handling over 400,000 boxes,

and four out of eight, or 50 percent of the firms handling less than 400,000

boxes had a packing and selling cost below $1.40 for 4/5 bruce boxes. Thirteen

packing houses, or 81 percent of the 16 firms in the over 400,000 box group,

and five packing houses, or 63 percent of the 8 firms in the under 400,000

box group, had.costs below $1.50'for 2/5 bruce boxes.

The cost for packing tangerines in the'400,000 699,999 box.group

was $1,12, in thb 700,000 and over group,and in the 200,000 399,999

volume group it was $1.24, and in the under 200,000 box group the packing

cost was $1.21.







TYPE OF FIRM AND COSTS


Average costs for the 43 packing houses included in the study were

classified according to specialized, affiliated or integrated type of

firm.--Specialized firms, as defined in this study, are those firms

which sell their "packing house eliminations without any prior commitment

to a specific outlet. The affiliated type of firm is defined as one which

sells its non-packed fruit either through a pre-season arrangement or

has an investment in a processing plant. Integrated firms include those

in which both packing and processing are under one ownership and manage-

ment. The relationship of average cost and type of firm is shown in

Table 7.

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

boxes for three integrated firms was $0.93 per box, for 20 specialized

firms it was $0.95, and for 16 affiliated firms it was $0.96. The inte-

grated firms had the lowest cost, which was $0.02 lower than the special-

ized and $0.03 lower than the affiliated firms. The specialized firms

had a cost of approximately $0,01 less than the affiliated firms.

There was greater variation in packing cost for the three types of

firms than in the packing and selling cost. Integrated firms had a

packing cost of $0.77, specialized $0.75, and affiliated 80.73. The

affiliated firms had the lowest packing cost, which was $0,02 less than

the specialized and $0.04 less than the integrated firms. Packing cost

at the integrated firms exceeded the specialized firms by $0.02. Labor

costs were the same, $0.24, for the three types of firms, while material

costs for the affiliated firms were $0.40 or $0.01 less than the special-

ized and integrated firms.






Table 7.- Cost of Packing and Selling Florida Citrus Fruit in Bruce Boxes
and Type of Firm, 43 Packing Houses, 1952-53.

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.



Tye of Firm : Specialized : Affiliated : Integrated
Oranges in 1-3/5 bruce boxes
Number of packing houses '20 16 3
1-3/5 boxes per firm 81,502 152,255 216,06)4
Cost per 1-3/5 bushel:
Material .4115 $0.4022 $0,4153
Labor:
Receive, truck, dump .0337 ,0321 .0359
Crate making and labeling ,0385 .0341 .0375
Foreman, graders and others .0495 .0531 .0o56
Wrap and pack .0627 .0642 .0569
Truck, check, load .0411 .0362 .0377
Payroll taxes .0159 .0167 01.51
Total labor .2414 .2364 .2395
Other direct operating .0633 .0624 .0758
Indirect operating .0326 .0308 .0379
Total packing .7488 .7316 .7685
Administrative and selling .1112 .1095 .0919
Other items .0927 .1170 .0730
Total packing and selling $0.9527 $0.9583 $0.9334
Grapefruit in 1-3/5 bruce boxes
1Number of packing houses 20 17 3
1-3/5 boxes ner firm 59,39-3 131,16 215,800
Cost per 1-3/5 bushel:
Material $0.4104 $0.3974 $0.4114
Labor:
Receive, truck, dump .0281 .0260 .0329
Crate making and labeling ,0328 .0299 .0341
Foreman, graders, others .0346 .0323 .0384
Wrap and pack .0508 .0484 .,068
Truck, check, load .0376 .0311 .0346
Payroll taxes .0120 .Oll 0 0117
Total labor .1959 .1791 .1985
Other direct operating .0551 .0471 .0634
Indirect operating .062 .0238 .0301
Total packing .6876 .647 .703 -
Administrative and selling .1022 .0906 .0854
Other items .0955 .1013 .0602
Total packing and selling o0.8853 0.8393 $0, 8490







Table 7.-- Cost of Packing and Selling Florida Citrus Fruit in
Bruce Boxes and Type of Firm, 43 Packing Houses,
1952-53. (Concluded)


Type of Firm : Specialized
Tangerines in 4/5 bruce
Number of packing houses 10
1-3/5 boxes per firm 11,565

Cost per 1-3/5 bushel:
Material $0.6512
Labor:
Receive, truck, dump .0418
Crate making and labeling .0752
Foreman, graders, others .0763
Wrap and pack .0974
Truck, check, load .0703
Payroll taxes .0275
Total labor .3885
Other direct operating .0874
Indirect operating .0o62
Total packing 1.1733
Administrative and selling .1368
Other items .12l42
Total packing and selling $1.4343


: Affiliated
boxes
12
27,382


$0.6244

.0432
.0652
.o94o
,090O
.1120
.0661
.0268
.7073
.0954
.0554
1.1825
.1154
.1238
$1.4217


: Integrated

2
77,297


$0o6756

.0o32
.0715
.0868
.1179
.0693
.0308
.4195
.1173
.0736
1.2660
.1100
.0936
U.4696-~


Administrative and selling costs for the integrated firms were $0.09,

and for both specialized and affiliated they were $0.11. The cost per

box for other items such as gas coloring, color add and wax, Florida

Citrus commission, Growers, Administrative Committee inspection and mem-

bership dues for the integrated firms was $0.07, for the specialized ';0.09,

and for the affiliated firms $0.12.


Grapefruit.-- The cost of packing and selling grapefruit in 1-3/5

bruce boxes for 17 affiliated firms was $0.84, for three integrated firms

it was $0.85, and for 20 specialized firms it was $0.89. The cost for the

affiliated firms was $0.01 below the integrated and $0.05 below the special-

ized firms, and the packing and selling cost for the integrated firms was

00.04 lower than the specialized firms.






Packing costs for the three types of firms were $0.65 for the

affiliated, 80.69 for the specialized, and $0.70 for the integrated.

The difference in cost between the affiliated and specialized firms

was $0.Oh, and between the affiliated and integrated firms it was $0.05.
The packing cost for the specialized firms was $0.01 less than that for

the integrated firms. Material cost was $0.0O for the affiliated firms

and $0.41 for the specialized and integrated firms. Labor costs were

80.18 for the affiliated and $0620 for the specialized and integrated

firms.


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

bruce boxes was $L.h2 for 12 affiliated, $1.h3 for 10 specialized, and

$1.h9 for two integrated firms.

Packing costs were $1.18 for the affiliated, $1.17 for the specialized

and $1.29 for the integrated firms.






PROCESSED CITRUS PRODUCTS

Cost of Processing, Warehousing and Selling Citrus Juices

The cost of processing single strength citrus juices have risen

steadily since the 1946-47 season, Table 8. Increases for juices in

the popular 12/404 case for the 1952-53 season were 5 cents for orange,

4 cents for blend and 3 cents for grapefruit. As in previous years, the

principal cost rise was for materials (cans, cartons, and labels) which

was about 2 cents. Other direct costs and all fixed costs rose about 1

cent each.

Table 8.- Average Cost of Processing, Warehousing, and
Selling Florida Citrus Fruit Juices, Excluding
Sugar Costs, in 12/410 Cases, 1946-47 Through
1952-53 Seasons.

Season 1952-535 1951-52' 195051: 199-0-1949O 18-49 1947-h48 1946-L7

Orange
Juice $1.35 $1.30 $1.24 $1.21 $1.17 $1.09 $1.06
Grapefruit
Juice $1.35 $1.31 $1.23 $1.19 $1.17 $1.09 $1.06
Blended
Juice $1.34 $1.31 $1.23 $1.19 $1.15 $1.09 $1.05


The total advance in processing costs for single strength juices per

12/404 case since 1946-47 has been about 29 cents or 2 cents per can.

The following comparison between the 1946-47 and 1952-53 seasons for pro-

cessing orange juice shows the increases for each cost category:

1946-47 1952-53 Increase in Cost Percent

Materials $0.6394 $0.8796 $0.24ol .38
Labor .1385 .1397 .0012 1
Other Mfg. .1549 .1875 .0326 21
Adm. and selling .0981 .10h4 .0063 6
Other Costs .0249 .0363 .0114 46
Total Nonsweet $1.0558 $1.3475 $ .2917








Material cost, which represented 65 percent of the processing cost

during the 1952-53 season advanced $0.24 or 38 percent to account for

almost all of the total increase for 12/404 orange juice (Figure a).

Fixed costs increased about $0.04 and other direct costs rose about $0.01.

Figure 2.--Changes in Costs for Processing Orange Juice in 12/404
Cases, 1946-47 to 1952-53 Seasons.

Cents
+25





+20




Material Costs
+15 /
/
/



+10





+5
/ Fixed Costs
/ '

0 -- -- 1


Other Direct Costs


1946-47 1947-48 1948-49 1949-50 1950-51 1951-52 1952-53
(Seasons)






The itemized costs of processing single strength juices in the

principal containers (24/2 and 12/40h cases) for the 1952-53 season are

shown in Table 9. Total cost for processing orange and grapefruit juices

(excluding sugar cost) was $1.35 per 12/404 case while blended juice

was $1.3h and tangerine juice was S1.39.

The costs of processing and selling citrus juices in 12/h40 cases

were about four cents higher than for 24/2 cases. However, for an equi-

valent volume of juice (basis 24/2 cans) the costs for 12/404 cases

were 25 to 27 cents lower than for 24/2 cases as shown by the following

figures,


Orange Grapefruit Blended Tangerine
Juice Juice Juice Juice

24/2 Cases $1.3058 $1.3066 $1.3068 $1.3541
12/404 Cases (24/2 basis) $1.0546 1.0556 $1.0488 $1.0843
Cost differences $0.2512 $0.250 $0.2580 0.2690


Variation in Processing, Warehousing, and Selling Costs

Variations in the cost of processing, warehousing and selling single

strength citrus juices are presented in Table 10. Six of the 14 firms

processing orange, grapefruit and blended juices had costs ranging be

tween $1.30 and $1.40 for these juices in 12/404 cases. Four of the nine

tangerine processors were also in this range. Four processors of orange,

three of grapefruit and blend, and two of tangerine juices had per case

cost above $1.50. The firms represented in this higher cost group were

characterized by low volume in relation to capacity.

Table 11 shows the variations in cost between firms for processing

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

other costs omitted. While the modal group for both 24/2 and 12/0hl

cases was $1.20 to $1.30, the number of firms experiencing costs under

$1.20 were more numerous than those with costs over $1.30&










Table 9.--Cost by Type of Container Per Case of Processing, Warehousing
and Selling Florida Citrus Fruit Juices, 14 Canneries, 1952-53.


Type of Container
Number of Firms
Cases per Firms


24/2
13
168.,


range duice
; .1 12/404
14
i58 472.311


Grape fruit
24/2
13
129.289


Cost per case:
Material
Labor:
Direct
Indirect
Warehousing & shipping
Total labor
Other manufacturing
Total processing
and warehousing
Administrative & selling
Other cost
Cost unsweetened
Sugar
Total cost


$0.9123


.0770
.0152
.0375
.1297
.1503


1.1923
.0845
.0290
1.3058
.0320
$1.3378


&0.8796


,0804
.0169
.0424
.1397
.1875


1.2068
.1044
.0363
1.3475
.0419
$41.3894


$0.9092


.0772
.0177
.0396
.1345
.1368


1.1805
.0846
.0415
1.3066
.0706
$1.3772


$0.8766


.0823
.0197
.0432
.1452
.]693


1.1911
.1054
.0522
1.3487
.0865
71.4352


Blended Juice Tingerine Juice
Type of Container 24/2 12/404 24/2 12/404
Number of Firms 13 14 9 9
Cases per Firm 52,773 154,352 18,130 49,520

Cost per case:
Material $0.9114 $0.8802 $0.9113 $0.8743
Labor:
Direct .0733 .0748 .0984 .0837
Indirect .0179 .0188 .0137 .0174
Warehousing & shipping .0379 .0421 .0402 .0453
Total labor .1291 .1357 .1523 .1464
Other manufacturing .. .144.5 .1747 .1588 .1921
Total processing
and warehousing 1.1850 1.1906 1.2224 1.2128
Administrative & selling .0854 .1035 .0833 .1086
Other cost .0364 .0460 .0484 .0640
Cost unsweetened 1.3068 1.3401 1.3541 1.3854
Sugar .0486 .0587 .0420 .0489
Total cost $1.3554 $1.3988 $1.3961 11.4343


Juice
12/404
14
355,367


mid


- --,-- ------,-~--------------


-~--


--~-~-168.3


"


- -


I







Table 10.--Containers and Variations in Cost per Case of Processing,
Warehousing and Selling Florida Citrus Fruit Juices,
Excluding Sugar, 14 Canneries, 1952-53.


Type of Container 24/2 12/404 24/2 12/404
Number of Firms
Orange Juice Grapefruit Juice
Cost per case
Under $1.2000 2 1 2 1
$1.20 1.2999 3 2 3 2
1.30 1.3999 6 6 6 6
1.40 1.4999 2 1 1 2
1.50 and over 0 4 1 3
Total number of firms 13 14 13 14

Blended Juice Tangerine Juice
Cost per case
Under $1.2000 2 1 0 0
$1.20 1.2999 3 2 2 1
1.50 1.3999 6 6 5 4
1.40 1.4999 1 2 1 2
1.50 and over 1 3 1 2
Total number of firms 13 14 9 9


Table 11.-- Containers and Variations in the Cost per Case of Processing
and Warehousing Florida Citrus Fruit Juices, Excluding
Sugar,.14 Canneries, 1952-53.


Type of Container : 24/2 12/404 : 24/2 : 12/404

Orange Juice Grapefruit Juice
Number of Firms
Cost per case
Under $1.1000 2 1 2 1
$1.10 1.1999 3 4 5 5
1.20 1.2999 7 5 5 5
1.30 and over 1 4 1 3
Total number of firms 13 14 13 14

Blended Juice Tangerine Juice
Number of Firms
Cost per case
Under $1.1000 2 1 0 1
$1.10 1.1999 4 4 3 2
1.20 1.2999 6 5 5 4
1.30 and over 1 4 1 2
Total number of firms 13 14 9 9







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 inthe group processing uide 'i;-"100.0000 cases and. seven were in the

group'yithkl,000,000 cases or more. The average volumes for these groups

were l10,O44 for the small volume group and 2,951,043 for the large volume

group. Major items of cost are shown for each group in Table 12.

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

groups and 12/40h cases is as follows:

Increase in cost
Under Over for small over
1,000,000 cases 1,00Oi casos large volume group

Orange Juice $1.45 $1.38 $0.07
Grapefruit Juice 1.l6 1,3 .03
Blended Juice 1.48 1.39 .09
Tangerine Juice 1.53 1.42 .11


The major portion of other higher costs for low-volume firms was

their higher "other manufacturing" costs which included much of the over-

head items. These costs were five cents higher for orange, grapefruit

and tangerine juices and six cents higher for blended juices. Costs of

materials and labor were moderately higher for the small volume firms.

Administrative and selling cost, except for tangerine juice, was greater

for the high volume firms.


Cost of Processing, Warehousing and Selling Citrus Sections


The costs of processing, warehousing and selling citrus sections

continued to climb in 1952-53 as they have for previous seasons.









Table 12.--Volume and the Cost of Processing, Warehousing and
Selling Florida Citrus Juices in 12/404 Cases, 1952-53.



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 104,841 839,780 96,515 614,219
Cost per case:
M. material $0.8897 $0.8783 $0.8789 $0.8763
Labor:
Direct .0595 .0830 .0626 .0853
Indirect .0303 .0152 .0369 .0170
Warehousing and shipping .0560 .0407 .0561 .0412
Total labor .1458 .1389 .1556 .1435
Other manufacturing .2350 .1816 .2090 .1631
Total processing
and warehousing 1.2705 1.1988 1.2435 1.1829
Administrative & selling .0912 .1061 .0990 .1064
Other cost .0428 .0356 .0559 .0516
Cost unsweetened 1.4045 1.3405 1.3984 1.3409
Sugar .0427 .0418 .0660 .0900
Total cost $1.4472 $1.3823 $1.4644 $1.4309


Blended Juice Tangerine Juice
Number of firms 7 7 3 6
Cases per firm 43,260 265,445 17,878 65,341
Cost per case:
Material $0.8841 $0.8795 $0.9052 $0.8701
Labor:
Direct .0662 .0762 .0655 .0862
Indirect .0358 .0161 .0307 .0156
Warehousing and shipping .0588 ,0393 .0581 .0435
Total labor .1608 .1316 .1543 .1453
Other manufacturing .2302 .1657 .2416 .1854
Total processing
and warehousing 1.2751 1.1768 1.3011 1.2008
Administrative & selling .0918 .1054 .1094 .1084
Other cost .0527 .0450 .0646 .0639
Cost unsweetened 1.4196 1.3272 1.4751 1.3731
Sugar .0585 .0587 .0514 .0486
Total cost $1.4781 A1.3859 $1.5265 1.4217






The increase over the 1951-52 season was 10 cents for 24/2 cases as

shown in the following comparison of grapefruit sections for six

previous seasons:

1952-53 1951-52 1950-51 1949-~0 1948-49 1947-48 1946-47
24/2 Cases $2,62 $2.52 $2.34 $2.28 $2.26 $2.27 $2.13
24/303 Cases 2.23 2.19 -

The total increase in cost for 24/2 cases since the 1946-47 season has

been $0o.9. Eighteen cents or 37 percent of the increase was for 1951-52

over 1950-51 season. The volume per firm for 24/2 cases has decreased 66

percent since the 1950-51 season, resulting from a shift to 24/303 cases

which has become the principal container for citrus sections. The volume

of 24/303 cases has risen from a few cases in 1950-1951 to a firm average

of 195$356 cases during the 1952-53 season. The total cost of 24/303

cases advanced four cents per case over the previous season's cost, despite

a rise of 69,000 cases in average volume per firm.

Table 13 shows the major items of cost for the most commom containers

and fruit packs. The 24/2 case of grapefruit sections cost $0.40 more to

process than did the 24/303 and contains 5 percent less volume. Therefore,

for an equivalent volume (basis 24/2) the 24/2 case pack cost $0.51 more

than did the 24/303 case.

Cost of-Processing Warehousing, arid Selliig FFrozen Orange Concentrate

The cost of processing and warehousing frozen orange concentrate ad-

vanced $0.045 per gallon during 1952-53 season after a steady decrease for

previous seasons of 30 percent since the first major production season,

1948-49. Cost per gallon for labor, manufacturing expense, administrative
and other cost but excluding containers and selling expense for each season

were:
1952-53 1951-52 1950-51 1949-50 1948-49
Frozen Orange Concentrate $0.372 $$0326 .0.346 7O.Li -Z $0Sa65






Table 13.-- Cost per 24/2 Case of processing, Warehousing and
Selling Florida Citrus Sections, Canneries, 1952-53.


Type of container
Number of firms
Cases per firm

Cost per case:
Material
Labor:
Direct
Indirect
Warehousing and shipping
Total labor
Other manufacturing
Total processing and
warehousing
Administrative and selling
Other cost
Sugar
Total cost


Grapefruit
Sections

24/2
7
50,709


$0J9215

.9331
.0978
.0399
1i00708
.1704

$2.1627
".1331
.0390
.2898
$2.6276


Grapefrui
Section

24/30)
10
195,356


$0.8227

.8020
.0335
.0441
o0,8796
.1726

$1.8749
,.0833
.0330
,2340
$2o2252


t Salad
is Sections

24/303
10
3b7771


$0.8245

1.o555
.o415
.0423
$1.1393
.1873

$2.1511
.o084
,0308
.2284
2.9g47


The average cost per gallon for processing frozen orange concentrate

in 1952-53 by the nine firms in the group is shown by major items of

cost in Table 14. Most of the increase in cost was in direct overhead

expenses which indicates that the decrease in volume was a major factor

in advancing the cost.

Table 15 presents detail costs for orange concentrate for two

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

but selling expense is omitted. Costs for the two case sizes were equal

although the 48/6 case contained 25 percent less volume. Therefore,

for an equivalent volume (basis 48/6) the 48/6 case cost was $0.47 higher

than the 12/32 case.








Table 14.--Cost per Gallon of Processing and Warehousing
Frozen Orange Concentrate, Excluding the Cost
of Cans, Cartons, and Selling, 9 Florida Firms,
1952-53.


Frozen Orange Concentrate

Gallons per firm 2,617,831
Cost. ner gallon:
Labor:
Direct $0,07L8
Indirect .0180
Warehousing and shipping *0110
Total labor .1038

Other manufacturing:
Power, light, water .0366
Maintenance building and equipment .0256
Royalties .0331
Depreciation .0639
Taxes, licenses and insurance .0151
Miscellaneous .0173
Total other manufacturing .1916
Administration ,0o62
Advertising stamps, testing and inspection .0304
Total cost $0.3720


Table 15.--Type of Container and Cost of Processing and
Warehousing Frozen Orange Concentrate, 7 Florida
Firms, 1952-53.


Frozen Orange Concentrate

Type of container 48/6 Case 12/32 Case
Number of firms 7 5
Cases per firm 880,902 92,216

Cost per container:
Material:
Cans 80.9484 $0,6346
Cartons .0678 .0798
Total material 51.0162 0.a71h4
Labor .2362 .3377
Other manufacturing .4193 .5465
Total processing and warehousing $1.6717 $1.5986
Administrative .1075 .1538
Advertising,stamps, testing and
inspection .0746 .0986
Total cost $1.536 7 1.8510







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.

VOLUIE
With packing houses it is the number of 1-3/5 boxes of citrus fruit packed
and bulk handled through the packing house.
With processors it is the number of cases of citrus fruit products canned.

PACKING OPERATIONS
Boxes per packing house: 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/h box or 20 pound, 10-pound, 8-pound,
5-pound, 8- and 5-pound bags in a master container.

COST ITEIS:
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 oneratjng,
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.

PROCE SING OPERATION'S
Blended Juice: A mixture of orange and grapefruit juices, with the
proportion of each varying from 60-40 to h0-60 percent.
Cases per firm: Number of cases processed.







Containers:
Kind

12/32
12/404 or 12/46
6/10
72/6
24/6
48/6
24/303


Cans per case
24
12
12
6
72
24
48
24


Size of Can
18-ounce
32-ounce
46-ounce
108-ounce
6-ounce
6-ounce
6-ounce
15-ounce


Cost items:
Material: Cans, cartons, labels, freight on material.
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 administra-
tive 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.
























Ag. Econ.-800
AHS 5-17-54




University of Florida Home Page
© 2004 - 2010 University of Florida George A. Smathers Libraries.
All rights reserved.

Acceptable Use, Copyright, and Disclaimer Statement
Last updated October 10, 2010 - - mvs