R. Clegg Hooks

Economic Information
Report 196

Estimated Costs of Packing
and Selling Fresh Florida Citrus,
1981-82 Season

Food & Resource Economics Department
Agricultural Experiment Stations and
Cooperative Extension Service
Institute of Food and Agricultural Sciences
University of Florida, Gainesville 32611

April 1984

ABSTRACT

Packing cost changes for the 1981-82 season were mixed. Packing
costs for two 4/5-bushel cartons of Florida oranges and grapefruit were
estimated at $3.80 and $3.57, an increase of 4.2 percent for oranges and
no change for grapefruit. Tangerine and tangelo packing costs for two
4/5 bushel cartons were estimated at $4.31 and $3.86, a decrease of 16.8
percent for tangerines and 10.9 percent for tangelos. The 1981-82
estimates were based on accounting information for 17 Florida packing
houses.

Key words: Fresh citrus packing costs, packinghouse cost trends,
fresh fruit, container costs, labor costs.

ACKNOWLEDGEMENTS

We wish to express our appreciation to the participant packing-
houses for their excellent cooperation, and to Mrs. Theresa Zerr for her
clerical and secretarial assistance.

ABSTRACT

Packing cost changes for the 1981-82 season were mixed. Packing
costs for two 4/5-bushel cartons of Florida oranges and grapefruit were
estimated at $3.80 and $3.57, an increase of 4.2 percent for oranges and
no change for grapefruit. Tangerine and tangelo packing costs for two
4/5 bushel cartons were estimated at $4.31 and $3.86, a decrease of 16.8
percent for tangerines and 10.9 percent for tangelos. The 1981-82
estimates were based on accounting information for 17 Florida packing
houses.

Key words: Fresh citrus packing costs, packinghouse cost trends,
fresh fruit, container costs, labor costs.

ACKNOWLEDGEMENTS

We wish to express our appreciation to the participant packing-
houses for their excellent cooperation, and to Mrs. Theresa Zerr for her
clerical and secretarial assistance.

TABLE OF CONTENTS

Page

LIST OF TABLES................... ................ ...

SUMMARY................................................................**

SAMPLE FIRMS................................. ..............

DATA COLLECTION .. ....................................................3

WEIGHTED AVERAGE PACKING AND BULK HANDLING COSTS......................6

COST TRENDS ................................. ..................... 12

SELECTED REFERENCES...... ............................................18

LIST OF TABLES

Table Page

1 Distribution of citrus handled by class of fruit, 17 Florida
packinghouses, 1981-82 season.................................2

2 Distribution of the sample packinghouses by total volume
packed compared with the industry distribution of firms
in Florida by total volume packed, 1981-82 season.............4

3 Percent of total fruit received which was packed for
shipment by kind of fruit; 15 packinghouses,
1981-82 season...................................... ....... 4

4 Volume of citrus handled and total packing and selling
cost by type of container, 17 Florida packinghouses,
1981-82 season..... ...... ......... .........................

5 Weighted average costs of packing and selling Florida
oranges per 1 3/5 -bushel equivalent by type of container,
1981-82 season........... ... ................................ 7

6 Weighted average costs of packing and selling Florida
grapefruit per 1 3/5-bushel equivalent by type of container
1981-82 season................................................9

7 Weighted average costs of packing and selling Florida
tangelos and tangerines per 1 3/5-bushel equivalent
by type of container, 1981-82 season.........................11

8 Weighted average costs of handling bulk Florida citrus,
1981-82 season..............................................13

9 Weighted average costs of handling Florida citrus
eliminations, 1981-82 season.................................14

10 Percentage change in the items that make up the total
cost of packing 1 3/5-bushel Florida oranges and grape-
fruit in two 4/5-bushel cartons, 1981-82 over 1980-81........15

11 Total cost per 1 3/5-bushel equivalent for packing and
selling Florida citrus by type of pack, 1969-70 through
1981-82 seasons...........................................

12 Value of packed 4/5-bushel cartons of Florida oranges and
grapefruit relative to packing costs, years 1967-68
through 1981-82 seasons, 1 3/5-bushel equivalent boxes.......17

ESTIMATED COSTS OF PACKING AND SELLING
FRESH FLORIDA CITRUS, 1981-82 SEASON

R. Clegg Hooks

SUMMARY

Packing costs for two 4/5-bushel cartons of Florida oranges and
grapefruit are estimated at $3.801 and $3.57, respectively, for the
1981-82 season. The estimates show an increase of 4.2 percent for
oranges and no change for grapefruit from 1980-81 season estimates.
Tangerine packing costs for two 4/5 -bushel cartons are estimated at
$4.31, down 16.8 percent from previous season estimates, and the cost to
pack two 4/5-bushel cartons of tangeloes was $3.86, a decrease of 10.9
percent.

The 1981-82 estimates are based on accounting information obtained
from 17 Florida packinghouses.

SAMPLE FIRMS

The 17 sample Florida packinghouses packed 7,438,490 equivalent
1 3/5-bushel boxes or approximately 27.8 percent of total Florida fresh
fruit shipments [2]. As indicated in Table 1, the sample firms provided
information on a total of over 17.9 million boxes (including elimina-

Prior to the 1975-76 season, tangelo packing costs were included
in orange packing costs. Beginning with the 1975-76 season, orange and
tangelo packing costs will be reported separately, due to an increase in
availability of the separate cost data from participating packinghouses.

R. CLEGG HOOKS is an assistant in food and resource economics.

Table 1.--Distribution of citrus handled by class of fruit, 17 Florida
packinghouses, 1981-82 season

Class of fruit

Total volume

1 3/5-bushel equivalent

17 packinghouses

Packed fruit

Cannery fruit through house

Total through house

Direct, grove-to-cannery

Total

7,438,490

2,887,487

10,325,977

7,568,677

17,894,654

aGrove-to-cannery fruit data were not obtained from 5 houses; had
these been included, it would have increased the volume going directly
to cannery. Two firms did not supply information on eliminated fruit.

bCannery fruit through the house is fruit with acceptable internal
quality but does not meet fresh market size or external appearance
standards. Cannery fruit through the house is often called eliminated
fruit or eliminations.

tions and direct-to-cannery fruit) or 9.7 percent of total Florida
citrus production [2, p. 7].

The distribution of firms by size category shown in Table 2 indi-
cates that the proportion of existing larger firms represented in the
sample is greater than the proportion of smaller firms in the sample.
The average volume packed per packinghouse for all 144 Florida packing-
houses operating during the 1981-82 season was 185,501 equivalent 1 3/5-
bushel boxes [2], while the average sample packinghouse packed 437,558
equivalent 1 3/5-bushel boxes. This was 72.0 percent of the total
volume that went through houses with the balance composed of elimina-
tions (Table 3). The number and type of firms in the sample are res-
tricted by availability of accurate data and firms' willingness to
provide information.

DATA COLLECTION

Most of the firms provided information from their auditors' per-box
cost analysis reports. The average costs of packing the more important
containers reported by the sample firms are shown in Table 4.

For those firms that did not allocate costs to different types of
fruit or packages, per-box cost distributions are based on information
provided by houses that keep more detailed records. Quite often audi-
tors' reports did not show labor costs categories and it was necessary
to distribute per-box labor costs into the categories shown in the
following tables. Again the labor costs distribution was based on
information available from packinghouses showing costs for each labor
category.

In general, the firms tended to use similar methods for allocating
materials, general and administrative, and selling expenses, but labor
and other direct operating expenses were allocated by various methods.

Two different auditing philosophies were reflected by the labor and
direct operating cost allocations shown in the auditors' reports. One
philosophy is based on the premise that all labor and other direct oper-
ating costs should be allocated to the packed fruit. The other philo-

Table 2.-Distribution of the sample packinghouses by total volume
packed compared with the industry distribution of firms in
Florida by total volume packed, 1981-82 season

Percentage of
Number of packinghouses
Total volume Number of packinghouses in the industry
1 3/5-bushel packinghouses included in included in
equivalent in Floridaa the sample the sample

Less than 200,000 97 0 0.0
200,001 400,000 28 7 25.0
400,001 600,000 13 6 46.2
Greater than 600,000 6 2 33.3

Total 144 15 10.4

aCalculated from [2].

Table 3.--Percent of total fruit received which was packed for shipment
by kind of fruit, 15a packinghouses, 1981-82 season
ii~-- r = ~

Kind of Fruit

All
houses

Percent
Oranges 63.4
Grapefruit 75.1
Tangerines 69.0
Tangelos 67.6

All fruit 72.0

aTwo firms did not report eliminations.

Table 4.--Volume of citrus handled and total packing and selling cost by type of
container, 17 Florida packinghouses, 1981-82 season

Total weighted
Commodity and Sample Total average packing
type of container firms volume and selling
cost per box

Oranges
4/5-bu. fiberboard
5-lb. poly. bag in
5-1b. vexar bag in
8-lb. poly. bag in
8-lb. vexar bag in
4/5-bu. fiberboard
4/5-bu. fiberboard
2/5-bu. carton

---1 3/5-bushel

carton
master carton
master carton
master carton
master carton
carton--export
carton--heavy duty

Bulk in truck sales
Miscellaneous containers
Total packed oranges

Grapefruit
4/5-bu. fiberboard carton
5-lb. poly. bag in master carton
5-lb. vexar bag in master carton
8-lb. poly. bag in master carton
8-lb. vexar bag in master carton
4/5-bu. fiberboard carton-export
2/4-bu. carton
Bulk in truck sales
Miscellaneous containers
Total packed grapefruit

Tangerines
4/5-bu. fiberboard carton
4.5-bu. fiberboard carton--heavy duty
4/5-bu. Bruce box
Miscellaneous
Total packed tangerines

Tangelos
4/5-bu. fiberboard carton
4/5-bu. fiberboard carton--heavy duty
5-lb. poly. bag in master carton
5-lb. vexar bag in master carton
Miscellaneous containers
Total tangelos packed

Total packed fruit

Bulk fruit through house to cannery
Oranges
Grapefruit
Tangerines
Tangelos
Total bulk through house

1,608,712
209,976
648,717
8,331
13,005
18,897
181 229
13,438
7,057
36 290
2,745,652

2,354,148
372,944
374,387
31,461
10,877
381,419
10,781
7,319
58,235
3,601,571

80,401
276,944
98,609
27.008
482",Y6b

210,242
303,493
42,127
46,586
5 857
608 305

7,438,490

1,398,164
1,054,155
201,396
233 752
2,887 487

equivalent-----

3.80
4.84
5.25
4.61
4.92
3.94
3.81
5.56
2.21
2.19

3.57
4.55
5.01
4.35
4.59
4.29
4.83
2.04
3.82

4.31
4.65
5.71
6.77

3.86
3.96
5.07
5.54
2.59

4.08

.69
.40
.85
.48
75W

i

sophy is based on the premise that at least some of the direct operating
costs (unloading, grading, etc.) should be borne by the eliminations.2

Of the 17 firms in the sample, 8 firms supplied information con-
sistent with the first philosophy, 7 firms supplied information consis-
tent with the second philosophy and two firms did not report elimina-
tions handling costs. No corrections or adjustment of either auditing
system was made so that the averages shown in the following tables
reflect both auditing philosophies. The procedures used in calculating
the averages shown in this report are the same as those used in previous
reports in this series.

In all tables, administrative expense includes management and
office salaries, office expense, auto and travel, interest paid, tele-
phone and telegraph. Selling includes sales salaries, travel, telephone
and telegraph, and brokerage. Other items include Florida citrus adver-
tising tax, federal-state inspection, precooling, coloring and waxing,
and various industry assessments.

WEIGHTED AVERAGE PACKING AND BULK HANDLING COSTS

The weighted average costs of packing and selling Florida citrus in
various types of containers are presented in Tables 5, 6, and 7.
Detailed costs are shown for only the more important containers listed
in Table 4.

The costs shown are the weighted average costs for the sample
packinghouses, i.e., the total monetary costs of each item for all
houses were divided by the total number of boxes packed. The use of
weighted averages tends to result in a lower estimated cost than would
the simple average because larger houses, which usually have lower
costs, influence the average more than smaller houses.

2Eliminations are fruit intended for fresh use but not packed
because of exterior appearance or size. Most eliminations are sent to
processing plants.

Table 5.--Weighted average costs of packing and selling Florida oranges per
1 3/5 bushel equivalent by type of container, 1981-82 season

Type of Container 4/5-bushel fiberboard box

Regular Export

Number of packinghouses 17 4

Average volume packed
1 3/5-bushel equivalent 84,354 3,956

Item of Cost
Materials
Containers
Other materials
Total materials

-$ per 1 3/5-bushel

0.9889
0.0410
1.0299

Labor
Receive, truck, dump
Cratemaking & labeling
Foremen, graders, others
Packing
Truck, check, load
Payroll taxes, comp. ins.
Total labor
Other Direct Operating
Power, lights, water
Repairs & maintenance
Misc. supplies & expense
Total other direct

Indirect Operating
Insurance-fire & casualty
Taxes & licenses
Depreciation & rent
Total indirect operating

Total Packing Expense
Administrative
Selling
Other Items

Total Costs

0.0887
0.1112
0.3737
0.2388
0.1812
0.1662
1.1598

0.0945
0.1630
0.0752
0.3327

0.0288
0.0451
0.1790
0.2529

2.7753
0.2726
0.2464
0.5028

3.7971

equivalent-

1.2359
0.1134
1.3493

0.0899
0.1016
0.3734
0.2174
0.1361
0.1546
1.0730

0.0800
0.1514
0.0764
0.3078

0.0239
0.0318
0.1929
0.2486

2.9787
0.2172
0.2441
0.4967

3.9367

Range in total costs-low 3.3158 3.6350
-high 7.1205 4.2649
Standard deviation 0.5621 0.2745

Continued

Table 5.-Weighted average costs of packing and selling
1 3/5-bushel equivalent by type of container,
Continued

Florida oranges per
1981-82 season--

Type of Container

5-lh. poly.
o,: in
master
carton

8-lb. poly.
bag in
master
carton

5-lb. vexar
bag in
master
carton

8-lb vexar
bg in
m. ter
c; rton

Number of packinghouses 14 9 14 11

Average volume packed
(1 3/5-bushel equivalent) 14,998 925 43,336 1,182

Item of Cost
Materials
Containers
Other materials
Total materials

Labor
Receive, truck, dump
Cratemaking & labeling
Foremen, graders, others
Packing
Truck, check, load
Payroll taxes, comp. ins.
Total labor

Other Direct Operating
Power, lights, water
Repairs & maintenance
Misc. supplies & expense
Total other direct

Indirect Operating
Insurance-fire & casualty
Taxes & licenses
Depreciation & rent
Total indirect operating

Total Packing Expense
Administrative
Selling
Other Items

Total Costs

---------$ per 1 3/5-bushel equivalent----------

1.7761
0.0542
1.8303

0.0866
0.1191
0.4834
0.3617
0.1546
0.1976
1.4030

0.1054
0.1808
0.0667
0.3529

0.0206
0.0478
0.1747
0.2431

3.8293
0.3089
0.2439
0.4566

4.8387

1.7614
0.0595
1.8209

0.0810
0.1230
0.4019
0.3334
0.1662
0.1622
1.2677

0.0819
0.1666
0.0614
0.3099

0.0190
0.0347
0.1549
0.2086

3.6071
0.2870
0.2601
0.4594

4.6136

2.1165
0.0538
2.1703

0.0884
0.1144
0.4791
0.3649
0.1712
0.1973
1.4153

0.1095
0.1976
0.0756
0.3827

0.0240
0.0464
0.1794
0.2498

4.2181
0.2838
0.2429
0.5024

5.2472

Range in total costs--low 4.4524 4.4653 4.7837 4.6513
-high 8.6044 8.1845 9.1387 8.5352

Standard deviation 0.5854 0.4430 0.5662 0.5855

aSee footnote 1, page 1.

1.9985
0.0439
2.0424

0.0819
0.1148
0.4333
0.3137
0.1489
0.1763
1.2689

0.0945
0.1885
0.0663
0.3493

0.0184
0.0425
0.1566
0.2175

3.8781
0.3353
0.2338
0.4692

4.9164

Table 6.--Weighted average costs of packing and selling Florida grapefruit per
1 3/5 bushel equivalent by type of container, 1981-82 season

Type of Container 4/5-bushel fiberboard box

Regular Export

Number of packinghouses 17 6

Average volume packed
1 3/5-bushel equivalent 138,479 63,569

Item of Cost
Materials
Containers
Other materials
Total materials

Labor
Receive, truck, dump
Cratemaking & labeling
Foremen, graders, others
Packing
Truck, check, load
Payroll taxes, comp. ins.
Total labor

Other Direct Operating
Power, lights, water
Repairs & maintenance
Misc. supplies & expense
Total other direct

Indirect Operating
Insurance-fire & casualty
Taxes & licenses
Depreciation & rent
Total indirect operating

Total Packing Expense
Administrative
Selling
Other Items

Total Costs

----$ per 1 3/5-bushel equivalent--------

1.0241
0.0344
1.0585

0.0858
0.1272
0.2587
0.2219
0.1850
0.1568
1.0354

0.0819
0.1562
0.0630
0.3011

0.0195
0.0263
0.1300
0.1758

2.5708
0.2828
0.2569
0.4610

3.5715

1.3443
0.1043
1.4486

0.1036
0.1560
0.2639
0.2659
0.2385
0.1927
1.2206

0.0841
0.2527
0.0827
0.4195

0.0288
0.0258
0.1791
0.2337

3.3224
0.1625
0.2781
0.5262

4.2892

Range in total costs--low 2.9873 3.1227
--high 6.1104 5.3478
Standard deviation 0.6913 0.7076

Continued

Table 6.--Weighted average costs of packing and selling Florida grapefruit per
1 3/5-bushel equivalent by type of container, 1981-82 season--
Continued
i J i i .. .. l ...

Type of Container

5-lb. poly.
bag in
master
cartpn

8-lb. poly.
bag in
master
carton

5-lb. vexar
bag in
master
carton

8-lb. vexar
bag in
master
carton

Number of packinghouses 15 4 15 7

Average volume packed
(1 3/5-bushel equivalent) 24,862 7,865 24,959 1,553

Item of Cost
Materials
Containers
Other materials
Total materials

Labor
Receive, truck, dump
Cratemaking & labeling
Foremen, graders, others
Packing
Truck, check, load
Payroll taxes, comp. ins.
Total labor

Other Direct Operating
Power, lights, water
Repairs & maintenance
Misc. supplies & expense
Total other direct

Indirect Operating
Insurance-fire & casualty
Taxes & licenses
Depreciation & rent
Total indirect operating

Total Packing Expense
Administrative
Selling
Other Items

Total Costs

----------$ per 1 3/5-bushel equivalent----------

1.7705
0.0493
1.8198

0.0760
0.1166
0.4006
0.3057
0.1570
0.1795
1.2354

0.0968
0.1538
0.0674
0.3180

0.0153
0.0344
0.1397
0.1894

3.5626
0.3092
0.2332
0.4432

4.5482

1.8063
0.0321
1.8384

0.0522
0.0822
0.3677
0.2364
0.0668
0.1241
0.9294

0.0640
0.1222
0.0243
0.2105

0.0061
0.0319
0.1340
0.1720

3.1503
0.5778
0.2143
0.4029

4.3453

2.1370
0.0534
2.1904

0.0807
0.1235
0.4208
0.3143
0.1749
0.1961
1.3103

0.1058
0.1674
0.0812
0.3544

0.0175
0.0365
0.1416
0.1956

4.0507
0.2635
0.2328
0.4632

5.0102

Range in total costs--low 3.9337 4.3440 4.2221 4.2438
--high 7.4548 4.6326 8.0880 5.8420
Standard deviation 0.3439 0.0164 0.4448 0.1443

aSee footnote 1, page 1.

2.0204
0.0345
2.0549

0.0613
0.0975
0.3654
0.2495
0.0988
0.1413
1.0138

0.0746
0.1434
0.0434
0.2614

0.0091
0.0295
0.1296
0.1682

3.4983
0.4598
0.2156
0.4172

4.5909

Table 7.-Weighted average costs of packing and selling Florida tangelos
and tangerines per 1 3/5-bushel equivalent by type of
container, 1981-82 season

Type of container Tangelos Tangerines
Type of container
4/5-bushel 4/5-bushel
carton carton

Number of packinghouses 5 4

Average volume packed
(1 3/5-bushel equivalent) 42,048 20,100

Item of Cost ----$ per 1 3/5-bushel equivalent----
Materials
Containers 0.9692 0.9858
Other materials 0.0221 0.0357
Total materials 0.9913 1.0215

Labor
Receive, truck, dump / 0.1129 0.0948
Cratemaking & labeling 0.1337 0.0939
Foremen, graders, others 0.4103 0.6183
Packing 0.2351 0.3722
Truck, check, load 0.1729 0.1305
Payroll, taxes, comp. ins. 0.1933 0.2055
Total labor 1.2582 1.5152

Other Direct Operating
Power, lights, water 0.1027 0.1125
Repairs & maintenance 0.1441 0.1846
Misc. supplies & expense 0.0556 0.0509
Total other direct 0.3024 0.3480

Indirect Operating
Insurance-fire & casualty 0.0194 0.0192
Taxes & licenses 0.0409 0.0597
Depreciation & rent 0.2242 0.2054
Total indirect operating 0.2845 0.2845

Total Packing Expense 2.8364 3.1692
Administrative 0.3644 0.5155
Selling 0.2416 0.2067
Other Items 0.4133 ; 0.4158

Total costs 3.8557 4.3072

Range in costs--low 3.6060 3.8713
--high 5.1847 6.2899
Standard deviation 0.3523 0.3535

Not all of the houses pack every container listed in Table 4. The
cost estimates presented in Tables 5, 6 and 7 are weighted averages for
the firms packing that container. Because the sample houses and weights
(volumes) change with each container, some of the cost differences among
containers can be attributed to the composition of firms packing each
container. The costs of handling and selling bulk fruit are shown in
Table 8. The weighted average costs allocated to eliminations are shown
in Table 9.

COST TRENDS

Changes in the reported costs of packing oranges and grapefruit in
two 4/5-bushel cartons from the 1980-81 to 1981-82 season are shown in
Table 10. While comparing costs for the 1980-81 season with the 1981-82
season, it must be noted that a freeze occurred during both seasons.
Total packing and selling costs for oranges increased 4.2 percent while
grapefruit costs were unchanged. Specifically, material costs and labor
costs increased 5.3 and 4.7 percent for oranges, while for grapefruit
material costs increased 2.5 percent and labor costs decreased 4.7
percent. Other direct operating costs decreased 20.4 percent and 9.2
percent for oranges and 11.6 percent and 8.1 percent for grapefruit.

Trends in orange and grapefruit packing costs for the past 13
seasons are reported in Table 11. In general, packing costs have
increased over time including 1981-82.

The relationship between average packing costs and the average FOB
value of packed fruit for two 4/5-bushel cartons of oranges and grape-
fruit in the Interior and East Coast regions for the past 15 seasons is
shown in Table 12. The changes in the ratio have been cyclical. The
value of fruit has shown greater variability than costs which have
tended to increase over time.

Table 8.-Weighted average costs of
82 season

Type of Container

handling bulk Florida citrus, 1981-

Bulk in truck sales

Oranges

Grapefruit

Number of packinghouses 5 5

Average volume packed
(1 3/5-bushel equivalent) 1,411 1,463

Item of cost
Materials
Containers
Other materials
Total materials

Labor
Receive, truck, dump
Cratemaking & labeling
Foremen, graders, others
Packing
Truck, check, load
Payroll taxes, comp. ins.
Total labor

Other Direct Operating
Power, lights, water
Repairs & maintenance
Misc. supplies & expense
Total other direct

Indirect Operating
Insurance-fire & casualty
Taxes & licenses
Depreciation & rent
Total indirect operating

Total Packing Expense
Administrative
Selling
Other Items

Total Costs

----$ per 1 3/5-bushel equivalent----

0.0
0.0129
0.0129

0.0764
0.0540
0.3678
0.0391
0.0590
0.1388
0.7351

0.0759
0.2372
0.0426
0.3557

0.0535
0.0297
0.1720
0.2552

1.3589
0.1613
0.2023
0.4850

2.2075

0.1016
0.0143
0.1159

0.0750
0.0599
0.2949
0.0118
0.0856
0.1003
0.6275

0.0694
0.1358
0.0551
0.2603

0.0219
0.0261
0.1362
0.1842

1.1879
0.2182
0.1661
0.4663

2.0385

Range in total costs--low 1.6638 1.4852
--high 5.0258 4.9619
Standard deviation 0.1918 0.8308

aSee footnote 1, page 1.

__ __ __ I_____ __ ___ __ __ ____

Table 9.-Weighted average costs of handling Florida citrus eliminations,
1981-82 season

Bulk through house to cannery

Orangesa Grapefruit Tangerines Tangelos

Number of packinghouses 15 15 13 8

Average volume packed
(1 3/5-bushel equivalent) 93,211 70,277 15,492 29,219

Item of Cost
Materials
Containers
Other materials
Total materials

Labor
Receive, truck, dump
Cratemaking & labeling
Foremen, graders, others
Packing
Truck, check, load
Payroll taxes, comp. ins.
Total labor

Other Direct Operating
Power, lights, water
Repairs & maintenance
Misc. supplies & expense
Total other direct

Indirect Operating
Insurance-fire & casualty
Taxes & licenses
Depreciation & rent
Total indirect operating

Total Packing Expense
Administrative
Selling
Other Items

Total Costs

--------$ per 1 3/5-bushel equivalent-------

0.0
0.0118
0.0118

0.0499
0.0
0.1406
0.0
0.0037
0.0461
0.2403

0.0370
0.1012
0.0356
0.1738

0.0226
0.0185
0.0948
0.1359

0.5618
0.1291
0.00
0.0004

0.6913

0.0
0.0044
0.0044

0.0257.
0.0
0.0524
0.0
0.0014
0.0170
0.0965

0.0133
0.0375
0.0166
0.0674

0.0084
0.0067
0.0364
0.0515

0.2198
0.1784
0.0
0.0001

0.3983

0.0
0.0072
0.0072

0.0509
0.0
0.2303
0.0
0.0037
0.0889
0.3738

0.0441
0.1680
0.0201
0.2322

0.0404
0.0342
0.1199
0.1945

0.8077
0.2144
0.0
0.0906

0.8487

0.0
0.0
0.0

0.0357
0.0
0.0502
0.0
0.0
0.0199
0.1058

0.0193
0.0660
0.0155
0.1008

0.0099
0.0106
0.0731
0.0936

0.3002
0.1781
0.0
0.0007

0.4790

Range in total costs--low 0.0212 0.0212 0.0334 0.0334
--high 1.3448 0.9813 1.8988 1.5192
Standard deviation 0.4258 0.2904 0.8153 0.5618

aSee footnote 1, page 1.

Table 10.--Percentage change in the items that make up the total cost of packing 1 3/5-bushel
Florida oranges and grapefruit in two 4/5-bushel cartons, 1981-82 over 1980-81

Type of fruit Orangesa Grapefruit

Season 1981-82 1980-81 Change 1981-82 1980-81 Change

Item of Cost $ per 1 3/5 equivalent Percent $ per 1 3/5-equivalent Percent
Materials
Containers .9889 0.9332 + 6.0 1.0241 0.9971 + 2.7
Other materials .0410 0.0444 7.7 .0344 0.0355 3.1
Total materials 1.029 9776 +3 10585 1.032 +

Labor
Receive, truck, dump .0887 0.0845 + 5.0 .0858 0.0946 9.3
Cratemaking & labeling .1112 0.1094 + 1.6 .1272 0.1341 5.1
Foremen, graders, others .3737 0.3439 + 8.7 .2587 0.2502 + 3.4
Packing .2388 0.2310 + 3.4 .2219 0.2197 + 1.0
Truck, check, load .1812 0.1822 0.5 .1850 0.2078 -11.0
Payroll taxes, comp. ins. .1662 0.1565 + 6.2 .1568 0.1797 -12.7
Total labor 1.1598 11075 + 47T 1.0354 T.061 --4.7

Other Direct Operating
Power, lights, water .0945 0.0969 2.5 .0819 0.0842 2.7
Repairs & maintenance .1630 0.2289 -28.8 .1562 0.1954 -20.1
Misc. supplies & expense .0752 0.0923 -18.5 .0630 0.0611 + 3.1
Total other direct 332T 0.7481 20. .30 .340

Indirect Operating
Insurance-fire & casualty .0288 0.0427 -32.6 .0195 0.0261 -25.3
Taxes & licenses .0451 0.0419 + 7.6 .0263 0.0250 + 5.2
Depreciation & rent .1790 0.1938 7.6 .1300 0.1402 7.3
Total indirect operating .2529 02784 9.2 .17358 ~. T913 -

Total Packing Expense 2.7753 2.7816 0.2 2.5708 2.6507 3.0
Administrative .2726 0.1619 +68.4 .2828 0.2000 +41.4
Selling .2464 0.2551 3.4 .2569 0.2767 7.2
Other Items .5028 0.4517 +11.3 .4610 0.4377 + 5.3

Total Costs 3.7971 3.6503 + 4.2 3.5715 3.5651 + 0.2

aSee footnote 1, page 1.

Table 11.-Total cost per 1 3/5-bushel equivalent for packing and selling
Florida citrus by type of pack, 1969-70 through 1981-82 seasons

4/5-bu. 5-lb. poly. 8-lb. poly. 5-lb. vexar 8-lb. vexar
fiber- bag in bag in bag in bag i
Season board master master master master
box carton carton carton carton

- - - Oranges - - -- --

1969-70b $1.76 2.25 2.21 2.35 2.30
1970-71b 1.78 2.23 2.42 2.42 2.33
1971-72b 1.81 2.27 2.21 2.41 2.30
1972-73b 1.86 2.33 2.22 2.52 2.36
1973-74b 2.09 2.63 2.52 2.77 2.67

1974-75b 2.18 2.79 2.73 3.01 3.00
1975-76 2.22 2.83 2.86 2.11 2.99
1976-77 2.60 3.20 3.15 3.51 3.30
1977-78 2.46 3.07 2.96 3.42 3.17
1978-79 2.64 3.45 3.34 3.78 3.60

1979-80 2.92 / 3.84 3.80 4.10 3.88
1980-81 3.65 4.55 4.52 4.94 4.94
1981-82 3.80 4.84 4.61 5.25 4.92

- - - Grapefruit - - - -

1969-70 $1.66 2.12 2.13 2.29 2.16
1970-71 1.71 2.14 2.19 2.35 2.21
1971-72 1.72 2.09 2.12 2.31 2.18
1972-73 1.77 2.16 2.01 2.37 2.10
1973-74 2.06 2.52 2.57 2.77 2.67

1974-75 2.21 2.72 2.61 3.01 3.28
1975-76 2.27 2.91 2.74 3.21 2.88
1976-77 2.55 3.30 3.08 3.59 3.25
1977-78 2.43- 3.03 2.85 3.45 3.05
1978-79 2.62 3.33 3.42 3.76 3.55

1979-80 2.89 3.54 3.46 4.03 3.77
1980-81 3.57 4.46 4.34 4.90 4.14
1981-82 3.57 4.55 4.35 5.01 4.59

information for seasons prior to 1979-80 is from Hooks [3].
bSee footnote 1, page 1.

Table 12.--Value of packed 4/5-bushel cartons of Florida oranges and
grapefruit relative to packing costs, years 1967-68 through 1981-82
seasons, 1 3/5-bushel equivalent boxes

Interior East Coast

Season FOB value Packing FOB value Packing
of packed cost Ratioc of packed cost Ratioc
fruit fruit

Oranges
1967-68
1968-69
1969-70
1970-71
1971-72

1972-73
1973-74
1974-75
1975-76d
1976-77d

1977-78d
1978-79d
1979-80d
1980-81d
1981-82d

Grapefruit
1967-68
1968-69
1969-70
1970-71
1971-72

1972-73
1973-74
1974-75
1975-76
1976-77

1977-78
1979-79
1979-80
1980-81
1981-82

$ per 1 3/5-bu.
equivalent

4.56
4.36
3.86
4.26
5.08

4.66
5.14
5.42
5.64
5.92

9.00
10.20
8.44
12.62
12.28

4.68
4.72
4.60
4.86
5.16

5.30
5.16
5,84
5.26
5.68

5.51
7.00
7.84
8.78
8.53

1.53
1.59
1.63
1.75
1.80

1.86
2.04
2.13
2.19
2.56

2.44
2.62
2.87
3.62
3.79

1.84
1.90
2.01
1.89
2.01

2.14
1.87
1.94
2.05
2.28

2.25
2.44
2.54
3.20
3.30

Percent $ per 1 3/5-bu.
equivalent

5.50
4.72
4.60
4.86
5.44

4.80
5.30
5.68
6.12
5.86

8.96
9.90
8.64
12.38
12.58

5.70
4.30
5.04
5.20
5.80

6.12
5.74
6.46
6.16
6.60

6.54
7.95
9.18
10.26
9.37

1.84
1.90
2.01
1.89
2.01

2.14
2.47
2.56
2.38
3.23

3.15
3.34
3.87
4.81
5.54

1.67
1.72
1.81
1.84
1.84

1.96
2.21
2.36
2.38
2.77

2.71
2.98
3.19
4.07
4.57

aFrom Florida Citrus Manual [1].
bSeasons prior to 1975-76 are from Hooks and Kilmer

CRatio = packing cost value of packed fruit.
dSee footnote 1, page 1.

Percent

33
40
44
39
37

44
47
45
39
55

35
34
45
39
44

29
40
36
35
32

32
39
37
39
42

41
37
35
40
49

[3].

-- -- -

SELECTED REFERENCES

Florida Citrus Mutual. Statistical Bulletin. Lakeland: var-
ious issues.

Florida Division of Fruit and Vegetable Inspection.
Season Annual Report. Winter Haven: 1981.

1981-82

[3] Hooks, R. Clegg. Estimated Costs of Packing and Selling Florida
Citrus, 1980-81 Season. Food and Resource Economics
Department Economic Information Report 195. Gainesville:
University of Florida, March 1984.

This public document was promulgated at an annual cost of $202.91 or
$0.18 per copy to report citrus packing and selling research results to
county agricultural directors and firms and agencies in the citrus
industry.

	Front Cover
	Abstract
	Acknowledgements
	Table of Contents
	Main
	Reference