AGRICULTURAL ECONOMICS MIMEO REPORT NO. 61-8

M'I

COSTS OF

PACKING AND SELLING

FLORIDA FRESH CITRUS FRUITS,

1959-60

SEASON

A. H. Spurlock and H. G. Hamilton

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

DEPARTMENT OF AGRICULTURAL ECONOMIC
FLORIDA AGRICULTURAL EXPERIMENT STATIC
GAINESVILLE, FLORIDA

FEBRUARY, 1961

CONTENTS

Page

INTRODUCTION.................. ............... .......... 1

COSTS OF PACKING AND SELLING, 1959-60, ALL FIRMS ............ 3

Oranges....... .................... ....... .............. 13

Grapefruit ...............,,,...................,........ 14

Tangerines ...,,................1...........,............ 15

Direct Grove-to-Cannery Fruit and Packed Fruit Purchased ....... 15

COSTS OF PACKING AND SELLING, EAST COAST AND OTHER FIRMS 16

VARIATIONS IN PACKING AND SELLING COST AMONG FIRMS ...... 16

Oranges.......... ........ ..,............... ..... .... 16

Grapefruit ........... .,... *..... . ..... .,,.......... 23

Tangerines ..........,... ...,............................ 25

RELATIONSHIP OF SEASONAL VOLUME TO AVERAGE COST OF PACKING
AND SELLING ............... .............................. 25

TREND IN PACKING AND SELLING COST......................... 28

COSTS OF PACKING AND SELLING FLORIDA
FRESH CITRUS FRUITS, 1959-601

Introduction

This report is based on the accounting records of 39 citrus packinghouses.

An attempt has been made to include the same firms each year since the original

sample was drawn in 1952 in order to prevent year-to-year cost fluctuations due

to shifting firms. However some changes have been made, and the number of

firms has not remained entirely constant.

The volume of packed fruit handled by the 39 packinghouses in 1959-60

amounted to an equivalent of 12,758,886 boxes of 1-3/5 bushels, or approximately

40.5 percent of the total shipment of Florida fresh citrus.2 The volume ranged

from 57,000 to 947,000 packed boxes and averaged 327,000 boxes. This was

considerably larger than the average packed volume of all citrus packinghouses

in the State. These averaged only 174, 000 packed boxes for 181 licensed and

registered fresh fruit shippers who shipped fruit in 1959-60.2

The distribution of fruit handled by class or type of outlet is shown in

Table 1. Packed fruit represented 48.2 percent of the total volume of all houses,

but was 64.4 percent of the 9 East Coast houses. Fruit going direct from grove to

1This is a report of one phase of Southern Regional Project SM-22, "The
Economic Efficiency of Marketing Florida, Puerto Rico and Texas Citrus Fruit."

2Calculated from data in 1959-60 Season Annual Report, Citrus and Vege-
table Inspection Division, Winter Haven, Florida.

cannery was 27.0 percent of the total of all houses and 18.0 percent for the

East Coast.

The packout averaged 66.1 percent of the fruit through the house for the

39 firms and was 78.5 percent for the East Coast group.

TABLE .--Distribution of citrus fruit handled by type of outlet, 39 packinghouses,
1959-60.

i i ii i Tl J I Average Volume Percent of
Class of Fruit Total Volume Average Volume Percent of
Per House Total Volume

9 East Coast Packinghouses:
Packed fruit
Cannery fruit through house
Total through house
Direct from grove to cannery
and tree sales
Total
30 Other Packinghouses:
Packed fruit
Cannery fruit through house
Total through house
Direct from grove to cannery
and tree sales
Packed fruit purchased
Total
Total All Packinghouses:
Packed fruit
Cannery fruit through house
Total through house
Direct from grove to cannery
and tree sales
Packed fruit purchased
Total

(1-3/5 bu.
boxes)

3,040,732
828,693

(1-3/5 bu.
boxes)

337,859
92,077

64.4
17,6

3,869,425 429,936 82.0

849,290 94,366 18.0
4,718,715 524,302 100.0

9,718,154 323,938 44.7
5,724,500 190,817 26.3
15,442,654 514,755 71.0

6,289,582 209,653 28.9
28,038 719 .1
21,760,274 725,127 100.0

12,758,886 327,151 48.2
6,553,193 168,031 24.7
19,312,079 495,182 72.9

7,138,872 183,048 27.0
28,038 719 .1
26,478,989 678,949 100.0

_ I --I -----

Costs of Packing and Selling, 1959-60

The cost data made available by the fresh citrus fruit packinghouses showed

the details of the annual expenditure of each packinghouse in the sample. The

total operating cost was broken down into 32 accounts and combined into 7 major

categories to obtain total packing and total packing and selling costs. Distribution

of the various items of cost to each kind of fruit and each container was made by

the firm' s accountants in most cases. These costs were used without substantial

changes in preparing the averages by containers. For the few firms included who

had only total costs, allocations were made to the various containers with ratios

developed for this purpose by studying packing operations in a number of

packinghouses.3

There was some variation among accountants in method or formula for

allocating costs. Methods used to allocate materials cost, general and adminis-

trative and selling expenses were rather uniform, but labor and other direct oper-

ating costs were allocated by various methods. In most of the packinghouses, a

proportion of the labor for receiving and dumping and for grading was allocated

to the fruit graded out for canneries (eliminations). A few of the houses also

charged some labor for checking and loading to eliminated fruit. Any other direct

operating expenses allocated to the eliminated fruit were usually at a lower per-box

rate than to the packed fruit. In several of the houses the eliminated fruit was

3"A Method of Allocating Citrus Packinghouse Costs," Agricultural Eco-
nomics Mimeo Report No. 58-1, July, 1957.

charged principally with administrative expense, the same as fruit g ong direct

from grove to cannery.

The volume of citrus fruit handled by type of container and kind of fruit is

shown in Table 2. The number of the sample houses using each conc Iner is also

shown with the total cost of packing and selling. Itemized costs for the principal

containers used are treated in subsequent tables. Packing and selling costs for

those containers handled in small volumes are not considered representative as

they may reflect unusual conditions and costs,

The 39 houses prepared a total of 49 different packs of fruit plus a mixed

group of miscellaneous containers for each type of fruit. The 4/5 bushel wire-

bound or half Bruce box was the most important container used for oranges in 1959-60

from the standpoint of total volume. This was followed by the 1-3/5 bushel

wirebound box and the 4/5 bushel fiberboard carton. For grapefruit, the 4/5 bushel

fiberboard box was the container used for the largest volume with the 1-3/5 bushel

wirebound and the half Bruce next in order. These three containers were packed

with 75 percent of the oranges and 86 percent of the grapefruit. Almost all of the

tangerines were packed in two types of 4/5 bushel wirebound boxes.

Itemized costs of packing and selling oranges, grapefruit and tangerines

for the 1959-60 season are given in Tables 3, 4 and 5 for 39 packinghouses. These

tables show the weighted average costs for the major expense items by type of

pack, together with the number of firms packing each container and the average

volume per house using each. Only the more important packs are included.

5

TABLE 2.--Number of firms, volume of citrus fruit handled and total packinU and selling cost,
by type of container, 39 packing houses, Florida, 1959-60.

No. of Volume (1-3/5 bu. equiv.) Total
Container Firms Total Average Packing and Selling
Per Firm Cost Per Box

Oranges:
4/5 bu. half Bruce box
1-3/5 bu. wirebound box
4/5 bu. fiberboard box
4/5 bu. wirebound flat box
Bulk in truck
8-lb. mesh bag
5-lb. mesh bag
5-lb. poly. bag in Master Carton
Field box
5-lb. mesh bag in Master Carton
1/4 box mesh bag
5-lb. mesh bag in Master Bruce
4/5 bu, wirebound export
8-lb. mesh bag in Master Carton
1-3/5 bu. wirebound export
8-lb. mesh bag in Master Bruce
8-lb. poly. bag in Master Carton
1-3/5 bu. standard box
4/5 bu. standard box
Miscellaneous containers
Total Packed Oranges
Grapefruit:
4/5 bu. fiberboard box
1-3/5 bu. wirebound box
4/5 bu. half Bruce box
8-lb. mesh bag
5-lb. mesh bag
5-lb. poly. bag in Master Carton
Bulk in truck
Field box
5-lb. mesh bag in Master Carton
8-lb. poly. bag in Master Carton
5-lb. mesh bag in Master Bruce
8-lb. mesh bag in Master Carton
8-lb. mesh bag in Master Bruce
1-3/5 bu. standard box
1/4 box mesh bag
Miscellaneous containers
Total Packed Grapefruit

2,553,798
2,034, 803
673,467
348,579
323,926
322,842
284,833
179,963
94,404
89,496
37,903
23,924
22,338
17,286
13,062
10,337
1,971
1,365
791
2, 244
7,037,332

2,193,590
1,537,758
715,349
208,752
140,531
135,667
109,162
46,096
34,700
17,692
8,635
7,478
6,372
1,785
825
31,288
5,195,680

69,022
70,166
20,408
43,572
20,245
14,037
11,868
11,248
11,801
4,710
1,723
2,658
5,584
1,330
2,612
1,477
657
228
395
..t.

59,286
53,026
18,825
9,076
5,405
9,691
8,397
7,683
1,928
2,212
1,439
575
1,274
298
275
.at.

1.3849
1.0782
1.2648
1.5646
.6971
1.3770
1.6425
1.6597
.5452
2.1146
1.2564
2.2022
1.4135
1.9179
1.1453
1,8876
1.6975
1.9819
2,2636

1.1804
.9462
1.2626
1.2668
1.5785
1.5765
.6278
.4304
1.9659
1.5170
2.0689
1.7428
1.6873
1.6334
1.1205
.*..

TABLE 2.--Continued

Tangerines:
4/5 bu. half Bruce box
4/5 bu. wirebound flat box
Field box
Bulk in truck
1-3/5 bu. wirebound box
Miscellaneous containersc
Total Packed Tangerines

Limes, Lemons, Kumquats:
Miscellaneous containers

TOTAL PACKED FRUIT
Bulk Fruit thru House to Cannery:
Oranges
Grapefruit
Tangerines
Total Bulk thru House

Direct, Grove-to-Cannery

Packed Fruit Purchased

TOTAL VOLUME ALL FRUIT

286,167
217,611
12,968
4,831
1,716
1,750
525,043

831

12,758,886

4,246,088
2,101,088
206,017
6,553,193

7,138,872

28,038

26,478,989

aIncludes minor unidentified containers and in addition, for oranges: 1/2 box bag,
half strap.

Includes minor unidentified containers and in addition, for grapefruit: 4/5 bu.
wirebound export, 1-3/5 wirebound export, 4/5 bu. standard box, half strap, 1/2 box bag.

CMiscellaneous containers for tangerines include: 4/5 bu. fiberboard box, 3-lb.
mesh bag in Master Carton and 1/4 box bag.

11,924
16,739
2,161
690
429
.*. *

277

111,739
53,874
6,439

209,967

9,346

1.5534
1.7005
.6267
.8377
1.3399
..

2.1930

.2124
.1689
.3067

.0891

.0760

TABLE 3.--Weighted average costs of packing and selling Florida ORANGES, per 1-3/5
bushel equivalent, by type of container, 39 packinghouses, 1959-60.

1-3/5 bu. 4/5 bu. 4/5 bu. 4/5 bu. 8-lb. 5-lb.
Type of Container Wirebound Half Bruce Wirebound Fiberboard Mesh Mesh
Box Box Flat Box Box Bag Bag

Number of Packinghouses
Average volume packed
(1-3/5 bu. equiv.)

Materials:
Containers
Other materials
Total materials
Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, comp. ins.
Total labor
Other direct operating:
Power, lights, water
Repairs-bldgs., equip.
Misc. supplies and exp,
Total other direct
Indirect operating:
Insurance-fire and cas.
Taxes and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrative
Selling
Other items
Total Packing and Selling

29 37 8 33 23 24

70,166 69,022 43,572 20,408 14,037 11,868
Costs per 1-3/5 bushel

$0.3887 $0.5721 $0.6478 $0.4564 $0.5553 $0.7561
.0156 .0276 .0276 .0085 .0183 .0179
$0.4043 $0.5997 $0.6754 $0.4649d $0.5736 $0.7740

$0.0296 $0.0358 $0.0421 $0.0366 $0.0422 $0.0415
.0345 .0593 .0634 .0543 .0066 .0098
.0672 .0925 .1057 .0927 .1082 .1207
.0724 .0984 .1001 .0905 .1146 .1394
.0459 .0654 .0844 .0697 .0731 .0797
.0207 .0267 ,0304 .0259 .0263 .0274
$0.2703 $0.3781 $0.4261 $0.3697 $0.3710 $0.4185

$0.0123 $0.0144 $0.0193 $0.0170 $0.0205 $0.0210
.0480 .0521 .0507 .0516 ,0569 .0586
.0105 .0107 .0184 .0119 .0149 .0151
$0.0708 $0.0772 $0.0884 $0.0805 $0.0923 $0.0947

$0.0088 $0.0117 $0.0144 $0.0148 $0.0127 $0.0146
.0090 .0119 .0121 .0113 .0150 .0149
.0287 .0357 .0251 .0474 .0356 .0362
.0009 .0004 .0081 .0004 .0021 .0009
$0.0474 $0.0597 $0.0597 $0.0739 $0.0654 $0,0666
$0.7928 $1.1147 $1.2496 $0.9890 $1.1023 $1.3538
.0620 .0602 .1103 .0611 .0640 .0655
.0668 .0712 .0662 .0648 .0646 .0701
.1566 .1728 .1385 .1499 .1461 .1531
$1.0782 $1.4189 $1.5646 $1,2648 $1.3770 $1.6425
i i J i 7 ii ,

a ----

Administrative expense includes management and office salaries,
auto and travel, interest, telephone and telegraph.

office expense,

Selling includes sales salaries, travel, telephone and telegraph but excludes
brokerage, commission and auction charges.
cOther items include Florida citrus advertising tax, Federal-State inspection and
testing, Growers Administrative Committee and Florida Citrus Mutual assessments, degreening,
precooling, color-add and wax.
dMaterials cost for East Coast houses, $0.5561; other houses, $0.4347.

TABLE 3.--Continued

lb. Poly. Bag
in Master
Carton

Bulk
in
Truck

Bulk in Bulk thru
Field House to
Box Cannery

Number of Packinghouses
Average volume packed
(1-3/5 bu. equiv.)

Materials:
Containers
Other materials
Total materials
Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, camp. ins.
Total labor
Other direct operating:
Power, lights, water
Repairs-bldgs., equip.
Misc. supplies and exp.
Total other direct
Indirect operating:
Insurance-fire and cas.
Taxes and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrativea
Selling
Other items
Total Packing and Selling

13 19

16 16 8 38

1,330 4,710 11,248 20,245 11,801 111,739
Costs per 1-3/5 Bushel

$1.0355 $1.2207 $0.7115 $ .... $ .... $ ....
.0082 .0089 .0174 .0013 .... .
$1.0437 $1.2296 $0.7289 $0.0013 $ .... $ ...

$0.0362 $0.0344 $0.0390 $0.0328 $0.0282 $0.0280
.0384 .0386 .0467 .0080 .0016 .
.1085 .1044 .0927 .0951 .0717 .0406
.1272 .1496 .1408 .0702 .0633 ....
.0670 .0686 .0696 .0347 .0530 .0042
.0295 .0305 .0282 .0184 .0147 .0077
$0.4068 $0.4261 $0.4170 $0.2592 $0.2325 $0.0805

$0.0191 $0.0140 $0.0208 $0.0126 $0.0099 $0.0051
.0704 .0752 .0608 .0359 .0302 .0279
.0152 .0135 .0130 .0069 .0120 .0037
$0.1047 $0.1027 $0.0946 $0.0554 $0.0521 $0.0367

$0.0126 $0.0142 $0,0147 $0.0097 $0.0042 $0.0054
.0124 .0104 .0084 .0080 .0055 .0044
.0351 .0330 .0831 .0217 .0252 .0147
.0048 .0009 .0003 .... .0003 .0001
$0.0649 $0.0585 $0.1065 $0.0394 $0.0352 $0.0246
$1.6201 $1.8169 $1.3470 $0.3553 $0,3198 $0.1418
.0779 .0641 .0537 .0578 ,0610 .0542
,0674 .0748 .0774 .0842 .0585 .0076
.1525 .1588 .1816 .1998 .1059 .0088
$1.9179 $2.1146 $1.6597 $0.6971 $0.5452 $0.2124

aAdministrative expense includes management and office salaries, office expense,
auto and travel, interest, telephone and telegraph.
bSelling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges.
COther items include Florida citrus advertising tax, Federal-State inspection and
testing, Growers Administrative Committee and Florida Citrus Mutual assessments, degreening,
precooling, color-add and wax.

TABLE 4.--Weighted average costs of packing and selling Florida GRAPEFRUIT, per 1-3/5
bushel equivalent, by type of container, 39 packinghouses, 1959-60.

1-3/5 bu. 4/5bu. 4/5 bu. 8-lb. 5-lb. 5-b. Bag
Type of Cdntainer Wirebound Half Bruce Fiberboard Mesh Mesh in Master
Box Box Box Bag Bag Carton

Number of Packinghouses
Average volume packed
(1-3/5 bu. equiv.)

Materials:
Containers
Other materials
Total materials
Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, comp. ins.
Total labor
Other direct operating:
Power, lights, water
Repairs-bldgs., equip.
Misc. supplies and exp.
Total other direct
Indirect operating:
Insurance-fire and cas.
Taxes and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrativea
Selling
Other items
Total Packing and Selling

29 38 37 23 26 18

aAdministrative expense includes management and office salaries, office expense,
auto and travel, interest, telephone and telegraph.
bSelling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges.
COther items include Florida citrus advertising tax, Federal-State inspection and
testing, Growers Administrative Committee and Florida Citrus Mutual assessments, degreening,
precooaing, color-add and wax.
dMoterials cost for East Coast houses, $0.5564; other houses, $0.4363.

53,026 18,825 59,286 9,076 5,405 1,928
Costs per 1-3/5 Bushel

$0.3897 $0.5739 $0.5209 $0.5733 $0.7775 $1.2251
.0147 .0240 .0082 .0173 .0172 ,0141
$0.4044 $0.5979 $0.5291d$0.5906 $0.7947 $1.2392

$0.0265 $0.0290 $0.0327 $0.0385 $0.0428 $0.0378
.0330 .0557 .0493 .0071 .0076 .0469
.0416 .0592 .0648 .0815 .1017 .0611
.0557 .0728 .0797 .0953 .1159 .1284
.0388 .0535 .0436 .0699 .1001 .0712
.0157 .0212 .0203 .0185 .0202 .0230
$0.2113 $0.2914 $0,2904 $0.3108 $0.3883 $0.3684

$0.0082 $0.0099 $0.0077 $0.0166 $0.0218 $0.0094
.0354 .0382 .0295 .0449 .0456 .0496
.0085 .0100 .0093 .0135 .0167 .0090
$0.0521 $0.0581 $0.0465 $0.0750 $0.0841 $0.0680

$0.0062 $0.0089 $0.0073 $0.0083 $0.0103 $0.0057
.0061 .0089 .0089 .0105 .0128 .0051
.0205 .0221 .0218 .0276 .0327 .0182
.0009 .0006 .0001 .0018 .0023 .0014
$0.0337 $0.0405 $0.0381 $0.0482 $0.0581 $0.0304
$0.7015 $0.9879 $0.9041 $1,0246 $1.3252 $1.7060
.0568 .0635 .0591 .0580 .0679 .0569
.0586 .0579 .0548 .0613 .0619 .0600
.1293 .1533 .1624 .1229 .1235 .1328
$0.9462 $1.2626 $1.1804 $1,2668 $1.5785 $1,9557

TABLE 4.--Continued

5-lb. Poly. Bag 8-lb, Poly. Bag Bulk Bulk Bulk thru
Type of Container in Master in Master in in House to
Carton Carton Field Box Truck Cannery
Number of Packinghouses 14 8 6 13 39

Average volume packed
(1-3/5 bu. equiv.)

Materials:
Containers
Other materials
Total materials
Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, comp. ins.
Total labor
Other direct operating:
Power, lights, water
Repairs-bldgs., equip,
Misc. supplies and exp.
Total other direct
Indirect operating:
Insurance-fire and cas.
Taxes and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrative
Selling
Other items
Total Packing and Selling

aAdministrative expense includes management and office salaries,
auto and travel, interest, telephone and telegraph.
bSelling includes soles salaries, travel, telephone and telegraph,
brokerage, commission and auction charges.

office expense,

but excludes

COther items include Florida citrus advertising tax, Federal-State inspection and
testing, Growers Administrative Committee and Florida Citrus Mutual assessments, degreening,
precooling, color-add and wax.

9,691 2,212 7,683 8,397 53,874
Costs per 1-3/5 Bushel

$0.7408 $0.7194 $ .... $ .... $ ....
.0176 .0256 .... .... ....
$0.7584 $0.7450 $ .... $ .... $ ...

$0.0454 $0.0468 $0.0176 $0.0315 $0.0227
.0408 .0444 ,0023 .0009 ....
.0911 .1008 .0401 .0754 .0281
.1288 .1055 .0482 .0706 ....
.0752 .0756 .0364 .0223 .0028
.0291 .0268 .0134 .0156 .0059
$0.4104 $0.3999 $0.1580 $0.2163 $0.0595

$0.0179 $0,0186 $0.0082 $0.0059 $0.0036
.0583 .0502 .0301 .0195 .0215
.0135 .0136 .0062 .0035 .0032
$0.0897 $0.0824 $0.0445 $0.0289 $0.0283

$0.0097 $0.0092 $0.0031 $0.0081 $0.0042
.0088 .0091 .0039 .0059 .0034
-.0516 .0423 .0171 .0114 .0099
.0023 .0008 .0003 .... .0001
$0.0724 $0.0614 $0.0244 $0.0254 $0.0176
$1.3309 $1.2887 $0.2269 $0.2706 $0.1054
.0513 .0468 .0563 .0490 .0491
.0601 .0583 .0474 .0640 .0052
.1342 .1232 .0998 .2442 .0092
$1.5765 $1.5170 $0.4304 $0.6278 $0.1689

- -~--- -- --

TABLE 5.--Weighted overage costs of packing and selling Florida TANGERINES, GROVE-
TO-CANNERY FRUIT and PACKED FRUIT PURCHASED, per 1-3/5 bushel
equivalent, 39 packinghouses, 1959-60.
Tangerines Al, Types of Fruit
Type of Container 4/5 bu. 4/5 bu. Bulk Bulk thru Direct Packed
Half Bruce Wirebound in House to Grove-to- Fruit
______ Box Flat Box Field Box Cannery Carnery Purchased

Number of Packinghouses
Average volume packed
(1-3/5 bu. equiv.)

Materials:
Containers
Other materials
Total materials
Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, camp. ins.
Total labor
Other direct operating:
Power, lights, water
Repairs-bidgs., equip.
Misc. supplies and exp.
Total other direct
Indirect operating:
Insurance-fire and cas.
Taxes and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrativea
Selling
Other items
Total Packing and Selling

24 13 6 32 34 3

11,924 16,739 2,161 6,439 209,767 9,346
Costs per 1-3/5 Bushel

$0.5480 $0.6402 $ .... $ .... $ .... $ ....
.0363 .0268 .... .... .... ...
$0.5843 $0.6670 $ .... $ .... $ .... $ ...

$0.0460 $0.0439 $0.0493 $0.0282 $0.0031 $ ....
.0595 .0678 .0114 .... .. ....
.1219 .1197 .1008 .0603 .0013
.1343 .1257 .0434 .... ....
.0870 .0803 .0555 .0091 .... ....
,0363 .0344 .0293 .0120 .0003
$0.4850 $0.4718 $0.2897 $0.1196 $0.0047 $ ....

$0.0239 $0.0272 $0.0192 $0.0093 $ .... $ ...
.0867 ,0726 .0700 .0520 .0056 .
.0146 .0176 .0097 .0056 .0004 .
$0.1252 $0.1174 $0.0989 $0.0669 $0.0060 $ ...

$0.0173 $0.0193 $0.0081 $0.0098 $0.0003 $ ....
.0190 .0193 .0090 .0096 .0003 .
.0454 .0574 .0237 .0267 .0021 .
.0003 .0038 .0004 .0002 .0001 ....
$0,0820 $0.0998 $0.0412 $0.0463 $0.0028 $ ....
$1.2765 $1.3560 $0.4298 $0.2328 $0.0135 $ ....
.0527 .1138 .0657 .0595 .0608 .0520
.0738 .0692 .0313 .0056 .0070 .0184
.1504 .1615 .0999 .0088 .0078 .0056
$1.5534 $1.7005 $0.6267 $0.3067 $0.0891 $0.0760

aAdministrative expense includes management and office salaries, office expense,
auto and travel, interest, telephone and telegraph.
bSelling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges.
COther items include Florida citrus advertising tax, Federal-State inspection and
testing, Growers Administrative Committee and Florida Citrus Mutual assessments, degreening,
precooling, color-add and wax.

Costs of handling cannery fruit direct-from--grove and packed fruit purchased

also are shown in Table 5. These operations are not separated by kind of fruit, but

represent a mixture of all kinds.

Costs for packs handled by the East Coast houses are shown separately from

the other houses in Tables 6 and 7.

None of the containers shown were packed by all of the 39 houses in the

sample. Thus, the costs shown for any container are averages of the group of firms

packing that container. Since this grouping of houses changes with each container,

some of the differences in costs between various packs are due to variations in the

sample. This can be illustrated by comparing the container cost of the 1-3/5 bushel

wirebound box for oranges and grapefruit (Tables 3 and 4). For oranges, 29 houses

had an average container cost of $0.3887 and for grapefruit, 29 houses, not identical

with the orange houses, had a cost of $0.3897, yet the container was the same for

each type of fruit. Other items of cost show similar small variations. The average

costs shown in each category are weighted averages of the packinghouses included;

e.g., the total money cost-of each item for all houses is divided by the total number

of boxes packed. The use of weighted averages in this summary tends to fix the cost

of packing and selling somewhat lower than the simple average. This is true because

the larger houses, which usually had somewhat lower costs, have more effect on the

average than smaller houses. For example, the simple average cost of packing and

selling oranges in the 1-3/5 bushel wirebound box by 29 firms was $1.126, or 4.8

cents higher than the weighted average of $1.078 as shown in Table 3. Eighteen

firms had total costs higher than the weighted average and 11 had lower costs,

The cost of selling as shown in Tables 3, 4 and 5 includes only the expense

of the firm's own sales department or sales organization. Brokerage, commission

and auction charges are not included. These costs are usually deducted before

entering the net proceeds of the sale on the books and can be obtained, in most

instances, only by analyzing the account sales or invoices on each lot of fruit sold.

Oranges.--The average cost per box for packing and selling oranges in the

1-3/5 bushel wirebound box was $1.08. The two major expense items, materials

and labor, accounted for 63 percent of the total cost. Materials expense, which

included the wirebound crate, liner and label, averaged $0.40 per box. The average

labor expense was $0.27.

The cost per 1-3/5 bushel box equivalent for oranges packed in the 4/5 bushel

half Bruce box was $1.42 and in the 4/5 bushel wirebound flat box $1.56. Packing

and selling costs for the 4/5 bushel fiberboard box were $1.26, except for the

East Coast houses where the container cost was higher (see Table 6 for separation

of costs for East Coast and other houses). Oranges packed in 8-pound mesh bags

averaged $1.38 to pack and sell and 5-pound mesh bags cost $1.64. Both materials

and labor costs were more per 1-3/5 bushel equivalent for the 5-pound than for the

8-pound bag.

The most expensive pack for oranges in common use in 1959-60 was the

5-pound mesh bag in master cartons. Since it required two types of containers it

had the highest materials cost and also a high labor cost. The average cost of

packing and selling this pack was $2.11 per 1-3/5 bushel equivalent. The average

cost of the 8-pound mesh bag in master carton was $1.92 and for 5-pound polyethylene

bags in master cartons, $1.66.

The average cost of packing and selling oranges loaded bulk-irntruck was

$0.70 per 1-3/5 bushel equivalent. This classification represented oranges sold

loose in interstate trade. In general, oranges sold in bulk passed through all the

packing operations that fruit packed in containers did, with the exception that after

the fruit had been graded and sized it was loaded by conveyor belt directly into the

truck. Some allocations of costs for cratemaking, labeling, trucking, checking and

loading have been made to this fruit by packinghouses. This may be logical as long

as the houses are not set up to handle bulk without slowing down the volume of

other packs. When bulk-in-truck is being handled the workers in the box-supply

and truck, check and load sections are not fully employed. This delay may properly

be charged to bulk. Since packers are also assured of $1 .00 per hour when bulk-in-

truck is handled, packers may not earn this minimum on a piece-rate basis. Therefore,

some houses have made a special charge for this service.

Oranges packed and sold in field boxes cost an average of $0.54 per box

for 8 firms. Bulk oranges thru-house-to-cannery (eliminations) averaged $0.21

per box. However, there was considerable variation in practices among the houses

in assigning costs to this class of fruit.

Grapefruit --The weighted average costs of packing and selling grapefruit

are shown in Table 4. The total cost per 1-3/5 bushel equivalent for packing and

selling grapefruit was $0.95 for the 1-3/5 bushel wirebound box, 65 percent of which

was materials and labor costs. Packing and selling costs were $1.26 for the 4/5 bushel

half Bruce box and $1.184 for the 4/5 bushel fiberboard box; $1.27 for the 8-pound

mesh bag; $1.58 for the 5-pound mesh bag; $1.96 for the 5-pound mesh bag in master

carton; $1.58 for the 5-pound polyethylene bag in master carton and $1.52 for the

8-pound polyethylene bag in master carton. Grapefruit sold bulk-in-truck cost

$0.6.3 per box and bulk grapefruit thru-house-to-cannery (eliminations) averaged

$0.17 per box.

Tangerines.--The season weighted average costs of packing and selling tanger-

ines are shown in Table 5. Two types of the 4/5 bushel wirebound box were the

containers in most common use in 1959-60. The 1-3/5 bushel equivalent cost for

packing and selling tangerines in the 4/5 bushel half Bruce box was $1.55 and in the

4/5 bushel wirebound flat box $1.70.

As with oranges and grapefruit, materials and labor were the largest expense

items. The cost of the materials, which includes the crate, liner and label, and the

labor was about 68 percent-of the total cost. Bulk tangerines thru-house-to-cannery

averaged $0.31 per box for packing and selling.

Direct grove-to-cannery fruit and packed fruit purchased.-- Packinghouse

expenses for fruit going direct from the grove to the cannery averaged only $0.09

per box (Table 5). There were no materials or packinghouse labor involved except

that several firms set off some fruit in boxes onto the packinghouse platform and

had a small amount of receiving, trucking labor and supervisory labor.

4Costs for containers were different for East Coast and other houses (see
Table 7 for separation by areas).

The cost of handling packed fruit purchased averaged $0.08 per box. Only

administrative expenses and some selling were charged to this class of fruit.

Costs of Packing and Selling, East Coast and Other Firms

In Tables 6 and 7, packing and selling costs are shown separately for East

Coast and other packinghouses. There are differences in operating methods between

the two groups which have diverse effects on costs. In Table 1 it may be seen that

of the houses in this sample, the East Coast firms averaged somewhat smaller in total

volume but ran a larger percentage of their total fruit through the house and got a

higher percentage packout than the other group of packinghouses. The packed fruit

of the East Coast houses consisted of 65 percent grapefruit, 34 percent oranges and

a negligible proportion of tangerines; the other houses had 33 percent grapefruit,

62 percent oranges and 5 percent tangerines. The East Coast houses also confined

their 1959-60 pack to two containers almost exclusively -- the 4/5 bushel half

Bruce and the 4/5 bushel fiberboard box. The fiberboard box used was different

from that used by the other houses and cost more (Table 6). The only other container

used by the East Coast houses in this sample was the 5-pound polyethylene bag in

master cartons, costs for which are not shown since it was used by only one firm.

Variations in Packing and Selling Cost Among Firms

Oranges.--There was a wide variation among firms in the total cost of packing

and selling oranges per 1-3/5 bushel equivalent in the various containers. The

packing and selling costs of oranges for the sample are arrayed in 5 cent intervals

TABLE 6.--Weighted average costs of packing and selling Florida ORANGES, per 1-3/5
bushel equivalent, 9 East Coast and 30 other packinghouses, 1959-60.

4/5 bu.
Fiberboard Box
East Coast | Other

Number of Packinghouses
Average volume packed
(1-3/5 bu. equiv.)

Materials:
Containers
Other materials
Total materials
Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, comp. ins.
Total labor
Other direct operating:
Power, lights, water
Repairs-bldgs., equip.
Misc. supplies and exp.
Total other direct
Indirect operating:
Insurance-fire and cas.
Taxes and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrativea
Selling
Other items
Total Packing and Selling

8 29 6 27 3 13

89,731 63,412 27,917 18,739 39,594 15,780
Costs per 1-3/5 Bushe!

$0.6182 $0.5531 $0.5528 $0.4245 $ .... $ ....
.0208 .0303 .0033 .0102 ... .0020
$0.6390 $0.5834 $0.5561 $0.4347 $ .... $0,0020

$0.0350 $0.0360 $0.0361 $0.0368 $0.0333 $0.0325
.0565 .0603 .0468 .0568 .... .0126
.1105 .0854 .1019 .0896 .1194 .0810
.1177 .0906 .1123 .0833 .1137 .0451
.0445 .0735 .0446 .0780 .0270 .0391
.0282 .0261 .0286 .0250 .0208 .0171
$0.3924 $0.3719 $0.3703 $0.3695 $0.3142 $0.2274

$0.0117 $0.0154 $0.0125 $0.0185 $0.0085 $0.0150
.0386 .0573 .0605 .0486 .0232 .0432
.0091 .0113 .0125 .0117 .0039 .0086
$0.0594 $0.0840 $0.0855 $0.0788 $0.0356 $0.0668

$0.0137 $0.0110 $0.0181 $0.0138 $0.0114 $0.0088
.0113 .0121 .0120 .0111 .0094 .0072
.0483 .0306 .0587 .0437 .0204 .0224
.0005 .... .0004 .. .
$0.0733 $0.0542 $0.0888 $0.0690 $0.0412 $0.0384
$1.1641 $1.0935 $1.1007 $0.9520 $0.3910 $0.3346
.0585 .0607 .0459 .0662 .0594 .0568
.0647 .0737 .0544 .0682 .0811 .0860
.1747 .1718 .1407 .1530 .2484 .1717
$1.4620 $1.3997 $1.3417 $1.2394 $0.7799 $0.6491

Bulk
in Truck
East Coast Other

aAdministrative expense includes management and office salaries, office expense,
auto and travel, interest, telephone and telegraph.
bSelling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges,
cOther items include Florida citrus advertising tax, Federal-State inspection, testing,
Growers Administrative Committee and Florida Citrus Mutual assessments, degreening,
precooling, color-add and wax.

J

TABLE 6.--Continued

Thur House Grove to
Type of Container to Cannery Cannery
East Coast Other East Coast Other

Number of Packinghouses
Average volume packed
(1-3/5 bu. equiv.)

Materials:
Containers
Other materials
Total materials
Labor:
Receive, truck, dump
Cratemaking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, camp. ins.
Total labor
Other direct operating:
Power, lights, water
Repairs-bldgs., equip.
Misc. supplies and exp.
Total other direct
Indirect operating:
Insurance-fire and cas.
Taxes and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrativea
Selling
Other items
Total Packing and Selling

8 30 7 27

39,741 130,939 121,327 232,947
Costs per 1-3/5 Bushel

$ ... $.... $ ... $....
S,... .mo* 0.. .,,,
$ .... $ ... $ .... $ .

$0.0310 $0.0278 $ .... $0.0035
6,0.. ... t... a**.
.0579 .0392 .... .0015
.a... ... .a ,,...
.0045 .0041 .... ....
.0070 .0078 .... .0004
$0.1004 $0.0789 $ .... $0.0054

$0.0071 $0.0049 $ .... $ ....
.0285 .0279 .0022 .0060
.0065 .0034 .0035 ....
$0.0421 $0.0362 $0.0057 $0.0060

$0.0122 $0.0049 $ .... $0.0004
.0069 .0042 .... .0003
.0195 .0143 .... .0023
.... .0002 .... .0001
$0.0386 $0.0236 $ .... $0.0031
$0.1811 $0.1387 $0.0057 $0.0145
.0533 .0543 .0510 .0621
.0131 .0072 .0176 .0056
.0067 .0089 .0075 .0078
$0.2542 $0.2091 $0.0818 $0.0900

aAdministrative expense includes management and office salaries, office expense,
auto and travel, interest, telephone and telegraph,
Selling includes sales salaries, travel, telephone and telegraph, but excludes
brokerage, commission and auction charges.
cOther items include Florida citrus advertising tax, Federal-State inspection, testing,
Growers Administrative Committee and Florida Citrus Mutual assessments, degreening,
precooling, color-add and wax,

TABLE 7.--Weighted average costs of packing and selling Florida GRAPEFRUIT, per 1-3/5
bushel equivalent, 9 East Coast and 30 other packinghouses, 1959-60.

4/5 bu. 4/5 bu.
Type of Container Half Bruce Fiherboard lox
East Coast Other East Coast Other

Number of Packinghouses
Average volume packed
(1-3/5 bu. equiv.)

Materials:
Containers
Other materials
Total materials
Labor:
Receive, truck, dump
Cratemuking, labeling
Foremen, graders, others
Wrap and pack
Truck, check, load
Payroll taxes, comp. ins.
Total labor
Other direct operating;
Power, lights, water
Repairs-bldgs., equip.
Misc. supplies and exp,
Total other direct
Indirect operating:
Insurance-fire and cas.
Taxes and licenses
Depreciation
Rent
Total indirect
Total packing expense
Admini trativea
Selling
Other items
Total Packing and Selling

9 29 9 28

2,039 18,339 188,368 17,796
Costs per 1-3/S Bushel

$0.6073 $0.5624 $0.5485 $0.4268
.0214 .0250 .0079 .0095
$0.6287 $0.5374 $0.5564 $0.4363

$0.0309 $0.0284 $0.0320 $0.0349
.0510 .0573 .0475 .0554
.0733 .0544 .0692 .0497
.0820 .0696 .0831 .0683
.0362 .0594 .0366 .0677
,0185 .0222 .0206 .0190
$0.2919 $0.2913 $0.2890 $0.2950

$0.0066 $0.0110 $0.0067 $0.0113
.0281 .0417 .0268 .0389
.0097 .0101 .0091 .0096
$0.0444 $0.0628 $0.0426 $0.0598

$0.0096 $0.0087 $0.0072 $0.0077
.0083 .0091 .0093 .0075
.0176 .0236 .0211 .0241
.... .0008 .... .0006
$0.0355 $0.0422 $0.0376 $0.0399
$1.0005 $0.9837 $0.9256 $0.8310
.0538 .0668 .0605 .0544
.0578 ,0579 .0537 .0583
.2088 .1341 .1716 .1311
$1.3209 $1.2425 $1.2114 $1.0748

aAdministrative expense includes management and
auto and travel, interest, telephone and telegraph.
b
Selling includes sales salaries, travel, telephone
brokerage, commission and auction charges,

office salaries, office expense,

and telegraph, but excludes

cOther items include Florida citrus advertising tax, Federal-State inspection, testing,
Growers Administrative Committee and Florida Citrus Mutual assessments, precooling,
color-add and wax.

~ -~-- I-

TABLE 7.--Continued

Type of Centainer

Bulk
in Truck

Thru F:ouse
to Car nery

I East Coast

Number of Packinghouses
Average volume packed
(1-3/5 bu. equiv.)

Materials:
Containers
Other materials
Total renter Is
Labor:
Receive, truck, dump
Cratemak;ng, b'e~ing
Foremen, grader,, others
Wrap and pack
Truck, check, load
Payroll taxes, comp. ins.
Total 1abor
Other direct operating:
Power, lights, water
Repairs-bidas., equip.
Misc. supplies and exp.
Total other direct
Indirect opFriting:
Insurance-fire and cas.
Taxes and licenses
Depreciation
Rent
Total indirect
Total packing expense
Administrative
Selling
Other items
Total Packing and Selling

3

Other

10

1 East Coast

9

I Other

30

30,424 1,789 56,677 53,033
Costs per 1-3/5 Bushel

$ ... $ .... $ ... $ ....
.... .0002 *..
$ ,. $0.0002 $ .... $ ....

$0,0330 $0,0240 $0,0272 $0.0212
...* .0055 .... ....
.0914 .0452 .0336 .0263
.0/55 .0455 ...
.0228 .0198 .0022 .0031
.0".61 ,0123 .0047 .0063
$0.2;238 $0.523 $0r.677 $0,0569

$0.0056 $0.0073 $0,0032 $0.0036
.072 .0. 10 .0164 .0232
.0032 .00 .0032 .0032
$ 0.' $0.C033 $0 ,0228 $0.0300

$0.0003 $0.0068 $0.0059 $0.0037
.0063 .0036 .0053 .0028
.Oi14 .0)',9 .0098 .0099
.... .0002 .... .0002
$0.0260 $0.0225 $0.0210 $0.0166
$0.2808 $0.2183 $0.1115 $0.1035
.0493 .0474 .0537 .0476
.0;36 .0658 .0102 .0036
.2-25 .1512 .0073 .0098
$0.6562 $0.4827 $0.1827 $0,1645

aAdministrative expense includes management and
auto and travel, interest, telephone and telegraph.
bSelling includes sales salaries, travel, telephone
brokerage, commission and auction charges.

office salaries, office expense,

and telegraph, but excludes

COther items include Florida citrus advertising tax, Federal-State inspection,
testing, Growers Administrative Committee and Florida Citrus Mutual assessments,
precooling, color-add and wax.

MI PIPLII~II*IDLI*ICUIIII~P'~ICI-~IL_~C _-

i .-.------.----

--- -- --

for six types of containers in Table 8. For the 29 firms packing oranges in 1-3/5

bushel wirebound boxes, the total packing and selling costs ranged from $0.93 to

$1.50 per box with 22 firms falling within the range of $1.00 to $1.19. Thirty-three

firms packing 4/5 bushel fiberboard boxes had costs between $1.04 and $1.63 with

20 in the range of $1.15 to $1.34. Costs for the 4/5 bushel half Bruce box varied

from $1.21 to $1.74 per 1-3/5 bushel equivalent with costs for 28 of the 37 firms

within the range of $1.30 to $1.54.

Packing and selling costs of oranges in 8-pound mesh bags varied between

$1.22 and $1.80 for 23 packinghouses of which 18 had costs between $1.30 and

$1.49. For 5-pound mesh bags, the total packing and selling cost ranged from

$1.43 to $2.13 for 24 firms of which 15 ranged from $1.50 to $1.69. Costs for

5-pound polyethylene bags in master cartons varied from $1,54 to $2.11 for 16 firms

with 10 in the range of $1.60 to $1.84.

The variations in packing costs only among the firms were similar to the

variations in packing and selling costs. The range for the 29 firms handling 1-3/5

bushel wirebound boxes of oranges was from $0.70 to $1.00. The packing cost for

20 of these firms ranged from $0.75 to $0.89. The cost of packing oranges in

4/5 bushel fiberboard boxes for 33 firms ranged from $0.82 to $1.19 and for 24 of

these firms between $0.85 and $1.09, Thirty-seven houses packing 4/5 bushel half

Bruce boxes had costs varying from $0.95 to $1.32 per box with 28 firms between

$1.00 and $1.24. Twenty-three firms packing the 8-pound mesh bag had packing

costs from $0.99 to $1.43 with 16 firms with costs from $1.00 to $1.14.

TABLE 8.--Variation in the cost per 1-3/5 bushel box equivalent of packing and
selling Florida ORANGES, by type of container, 39 packinghouses, 1959-60.

Cost Per 1-3/5 bu, 4/5 bu. 4/5 bu. 8-lb. .5-lb. 5-lb. Poly.
1-3/5 Bushel Wirebound Fiberboard Half Bruce Mesh Mesh Bag in
Eqt ivalent Box Box Box Bag Bog Master Carton
----------------Number of Packinghouses----------------
Packing and Selling

Uhndr $1.00
$1.00 1.04
1.05- 1.09
1,10- 1.14
1.15- 1.19
1.20- 1.24
1.25- 1.29
1.30- 1.34
1.35- 1.39
1.40- 1.44
1.45- 1.49
1.50- 1.54
1.55- 1.59
1.60- 1.64
1.65- 1.69
1.70- 1.74
1.75- 1.79
1.80- 1.84
1.85- 1.89
1.90 and over
Total number of firms

29 33
- i !

Under $0.70
$0.70- 0.74
0.75- 0.79
0.80- 0.84
0.85- 0.89
0.90- 0.94
0.95- 0.99
1.00- 1.04
1.05- 1.09
1.10- 1.14
1.15- 1.19
1.20- 1.24
1,25- 1.29
1.30- 1.34
1.35- 1.39
1.40- 1.44
1.45- 1.49
1,50 and over
Total number of firms

2 .
.. O.
4
6
7 1
1 1
1 3
.o 4
.. 3
0. 5
1 1
1 3
.. .1

2
23 24

S..
..
..
..
..
1
4
4
4
9
3
8
2
1
..
1
..
.
..

37
Packing
*..
..

4
5
9
3
4
7
2
3

37

37

16

I

The spread in packing cost for 5-pound mesh bags for 24 firms was between

$1.17 and $1.83 with 13 firms included within the cost interval of $1.25 to $1.44.

For the 16 firms packing oranges in 5-pound polyethylene bags in master cartons, the

packing cost ranged from $1.22 to $1,82 and 10 of these firms had costs between

$1.35 and $1.54 per box.

Grapefruit.--The range in grapefruit packing and selling costs among the

different firms was not as great as in oranges. The 29 firms using 1-3/5 bushel

wirebound boxes had costs which varied between $0.84 and $1.21 for packing and

selling each box as shown by data in Table 9. Of these firms, 19 had costs between

$0.90 and $1.04. For the 4/5 bushel half Bruce box, 38 firms had total packing and

selling costs ranging between $1.04 and $1.53. Of these, 21 had costs from $1.20

to $1.34. Thirty-seven firms using the 4/5 bushel fiberboard box had costs ranging

from $0.92 to $1.34 per box with 27 firms between $1.00 and $1.24. For the 8-pound

mesh bag, 23 houses had costs ranging from $1 .06 to $1.62 per box with 15 of these

between $1.20 and $1.34..

The packing and selling costs for grapefruit in 5-pound mesh bags were from

$1.28 to $2.04 for 26 firms with 16 firms between $1.45 and $1.64. For 5-pound

polyethylene bags in master cartons, 14 firms ranged from $1.43 to $2.04 with

7 firms falling between $1.55 and $1.64 per 1-3/5 bushel equivalent.

Packing costs only for grapefruit in 1-3/5 bushel wirebound boxes for

29 firms varied from $0.62 to $0.83. Twenty-three of these firms ranged between

$0.65 and $0.79. Thirty-eight packinghouses had packing costs ranging from

$0.85 to $1.31 for the 4/5 bushel half Bruce box with 28 of these firms ranging from

TABLE 9.--Variation in the cost per 1-3/5 bushel box equivalent of packing and
selling Florida GRAPEFRUIT. by type of container, 39 packinghouses, 1959-60.

Cost Per 1-3/5 bu. 4/5 bu. 4/5 bu. 8-lb. 5-b. 5-lb. Poly.
1-3/5 Bushel Wirebound Fiberboard Haf Bruce Mesh Mesh Bag in
Equivalent Box Box Box Bag Bag Master Carton
--------------- Number of Packinghouses---------------
Packing and Selling
Under $0.90 4 .. .. .. ** **
$0.90- 0.94 6 2. ..
0.95- 0.99 7 1 .
1.00- 1.04 6 8 1 ..
1.05- 1.09 3 2 1 2 ..
1.10- 1.14 1 7 3 ..
1.15- 1.19 1 7 4 2 ..
1.20- 1.24 1 3 7 7 ..
1.25- 1.29 .. 2 6 3 1
1.30- 1.34 .5 8 5 ..
1.35- 1.39 .. .. 3 3 2
1.40- 1.44 .. .. 4 .. 1 2
1.45- 1.49 .. .. 8
1.50- 1.54 .. 1 4 1
1.55- 1.59 .. .. .. 1 4
1.60- 1.64 .... .. 1 3 3
1.65- 1.69 .. .. .. .. 2 1
1.70- 1.74 .. .. .. 2 ..
1.75 and over .2 .. 2 3
Total number of firms 29 37 38 23 26 14
Packing
Under $0.65 3 .. .. ** **
$0.65- 0.69 10 .. .. ..
0.70- 0.74 6 4 .. .. *
0.75- 0.79 7 7 .. .
0.80- 0.84 3 5 1 1 ..
0.85- 0.89 .. 8 5 1 ..
0.90- 0.94 .. 7 5 2 ..
0.95- 0.99 .. 2 7 8 ..
1.00- 1.04 .. 3 8 5 .. ..
1.05- 1.09 .. .. 8 1 2
1.10- 1.14 .. 1 2 3 4
1.15- 1.19 .. .. 1 1 5 1
1.20- 1.24 .. 3 1
1.25- 1.29 .. .. .. .. 3 3
1.30- 1.34 .... 1 .. 3
1.35- 1.39 ., .. .. I 4 2
1.40- 1.44 .. .. 2 2
1.45 and over .. .. 3 2
Total number of firms 29 37 38 23 26 14

$0.90 to $1.09. The 37 firms packing the 4/5 bushel fiberboard box were within

the cost range of $0.72 and $1.12 with 20 of the firms falling between $0.80 and

$0.94. Packing costs for the 8-pound mesh bag varied from $0.81 to $1.36 per box

for 23 firms with 13 between $0.95 and $1.04.

The cost of packing in 5-pound mesh bags for 26 firms ranged from $1.09 to

$1.78 per box with 15 houses between $1.15 and $1.39. Variation in cost for the

14 firms packing grapefruit in 5-pound polyethylene bags in master cartons ranged

from $1.15 to $1.78. Costs for 8 houses fell within the range of $1.25 to $1.39.

Tangerines.--Packing and selling costs for tangerines per 1-3/5 bushel

equivalent ranged from $1.35 to $1 95 for the 4/5 bushel half Bruce box for 24

firms; and for 4/5 bushel wirebound flat boxes from $1.53 to $1.96 for 13 firms

(Table 10).

The costs of packing only for tangerines per 1-3/5 bushel equivalent varied

from $1,08 to $1.62 for 4/5 bushel wirebound boxes; from $1.08 to $1.50 for

4/5 bushel half Bruce boxes and from $1.23 to $1.53 for the 4/5 bushel wirebound

flat box.

Relationship of Seasonal Volume to Average
Cost of Packing and Selling

The data indicate some relationship between the seasonal volume of fruit

handled and the total packing and selling cost. Houses with the larger volumes

tended to have lower unit costs. However, differences in total cost favoring

larger houses have been less consistent and pronounced for several seasons than in

some previous years.

TABLE 10.--Variation in the cost per 1-3/5 bushel box equivalent of packing and
selling Florida TANGERINES, by type of container, 39 packinghouses, 1959-60.

Cost Per 4/5 bu. 4/5 bushel
1-3/5 Bushel Half Bruce Wirebound Flat
Equivalent Box 0ox
---.-----. ------ Number of Packinghouses---------------
Packing and Selling
Under $1.40 2
$1.40- 1.44 1
1.45- 1.49 5
1.50- 1.54 3 3
1.55- 1.59 3 1
1.60- 1.64 5 3
1.65- 1.69 1 3
1.70- 1.74 2 1
1.75- 1.79 1 1
1.80 and over 1 1
Total number of firms 24 13
Packing
Under $1.15 3
$1.15- 1.19 3
1.20- 1.24 1 1
1.25- 1.29 5 2
1.30- 1.34 4 5
1.35- 1.39 2 1
1.40- 1.44 3 1
1.45- 1.49 2 2
1.50- 1.54 1 1
1.55 and over .. ..
Total number of firms 24 13

Packinghouses in the smallest volume group (under 200, 000 boxes) had costs

for packing and selling oranges in 1-3/5 bushel wirebound boxes of 22 cents more

than the average for all houses. Those in the largest volume group (over 700,000

boxes) had costs 3 cents lower than the average. For packing and selling grape-

fruit in 1-3/5 bushel wirebound boxes, houses in the smallest volume group had total

27

costs of 5 cents above the average cost, while those in the largest volume group

had cosis about 3 cents less than the average.

If the items of cost are examined by size group, the smaller houses will be

found to have lower costs sometimes than the larger ones. Materials cost did not

seem to vary directly with size, and labor costs were not closely related to volume

by groups. The other direct operating costs and the indirect or fixed costs did, in

general, decrease by size groups.

There were packinghouses that had high as well as low costs in all volume

groups. This variation within groups is shown in Table 11 for 1-3/5 bushel wire-

bound boxes and indicates that the larger volume groups contain more houses with

low costs than the smaller seasonal volume groups.

TABLE 11 .--Volume of fruit handled and variation in the cost of packing and selling
Florida citrus fruit in 1-3/5 bushel wirebound boxes, 39 packinghouses, 1959-60.

Number of Boxes Handled (1-3/5 bu. Equivalent)
Cost per 1-3/5 Bushel Under 200,000- 400,000- 700,000 All
200, 000 399,999 699,999 and over Volumes
---------------- Number of Firms-----------------------
Oranges
$0.90 $0.99 .. .. .. 2 2
1.00- 1.09 1 2 7 3 13
1.10- 1.19 1 4 1 3 9
1.20- 1.29 1 .. 2 .. 3
1.30 and over 2 .. .. .. 2
Grapefruit
$0.80 $0.89 .. .. 2 2 4
0.90- 0.99 1 3 5 4 13
1.00- 1.09 2 3 2 2 9
1.10 and over 2 .. 1 .. 3

The relationship between total volume and cost is imperfect because of the

important factors affecting costs are believed to be unequally distributed in the

volume groups. Some of these are length of season or number of days operated,

percent of house capacity used, investment in packinghouse assets and physical

arrangement of house and machinery which affects labor costs in particular. The

number of different lots, frequency of change of lots, number of different containers

packed and percent packout probably affect costs also to some extent. There was

not sufficient information on all these factors to account for the effect of each

on costs.

Trend in Packing and Selling Cost

The total cost of packing and selling Florida citrus fruits in the most common

containers has increased most years during the past 10 seasons with minor fluctuations

(Table 12). There was, in general, a slight decrease in the cost in 1959-60 from

1958-59.

The average total cost of oranges packed in 1-3/5 bushel wirebound boxes

increased from $0.92 for the 1950-51 season to $1.08 for the 1959-60 season.

The decrease in the trend of costs noted in 1954-55 was due to a reduction of con-

tainer prices. The large increase in 1957-58 was due, in part, to the freeze

which reduced the packed volume by 18 percent from the preceding season. Packing

costs in wirebound boxes were slightly lower in 1958-59 than in 1957-58 because

of higher volume, and was further reduced in 1959-60. The cost of packing and

TABLE 12.--Average total cost per 1-3/5 bushel equivalent for packing and selling
Florida citrus sold for fresh consumption, 1950-51 through 1959-60.a

Type of Pack
Season 1-3/5 bu. 8-lb. I 5-lb. 4/5bu. 4/5bu.
Wirebound Box Mesh Bag Mesh Bag Fiberboard Box Half Bruce Box

----------- Dollars

$0.9166
.9111
.9530
.9355
.8863
.9603
1.0068
1.1164
1,0990
1.0782

$1.1490
1.1069
1.2067
1.2335
1.2609
1.2322
1.2639
1.3644
1.4086
1.3770

Per 1-3/5 bu.
Oranges
$1.4086
1.3444
1.4469
1.4597
1.5005
1.4967
1.5278
1.6464
1.6682
1.6425

1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60

1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60

$1.3563
1.3589
1.4379
1.4373
1.4597
1.4725
1.5675
1.6277
1.6044
1.7005

Equivalent------------

$ ...

1.0088
1.0508
1.0939
1.1551
1.2150
1.2247
1.2648

.9058
.9277
1.0000
1.0549
1.1057
1.1305
1.1804

1.2996
$ .4069

1.4430
1.4189
1.2996
1.4069
1.4430

1.4189

1,2539
1$ .2790

1.2626

$ ...
4 *

*..

....

1.5909
1.5534

aNumber of houses included
1950-51 77 1952-53 43
1951-52 67 1953-54 43

in each of the years:
1954-55-43 1956-57-43
1955-56-42 1957-58-42

1958-59-42
1959-60-39

Grapefruit
$0.8196 $1.0849 $1.3201
.8487 1.0467 1.2670
.8543 1.1231 1.3233
.8375 1.1659 1.3666
.7984 1.1891 1.3964
.8682 1.1724 1.4264
.9285 1.2188 1,4730
1.0077 1.3089 1.5805
.9719 1.2972 1.6132
.9462 1.2668 1.5785
Tangerines
4/5 bu. 4/5 bu.
Wirebound Flat Half Bruce Box

1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60

-

selling oranges in the 8-pound mesh bag increased from $1.15 in 1950.51 to $1.37

in 1959-60; for 5-pound bags the average total packing and selling cost changed

from $1.41 to $1.64 during the period.

The total cost of packing and selling grapefruit in 1-3/5 bushel wirebound

boxes increased from $0.82 in 1950-51 to $0.95 in 1959-60 with declines in several

of the intervening seasons. Cost per 1-3/5 bushel equivalent for 8-pound bags

increased from $1.08 in 1950-51 to $1.27 in 1959-60 and for 5-pound bags from

$1.32 to $1.58.

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

increased during the 10-year period from $1.36 to $1.70 for 4/5 bushel wirebound

flat boxes.

Other Mimeographed Publications Available on Citrus Costs
Department of Agricultural Economics
Florida Agricu!tural Experiment Stations
Gainesville, Florida

1. Costs of Picking and Hauling Florida Citrus Fruits, 1959-60 Season.

Agricultural Economics Mimeo Report No. 61-7, February 1961.

2. Costs of Processing, Warehousing and Selling Florida Citrus Products,
1958-59 Season.

Agricultural Economics Mimeo Report No. 60-12, June 1960.

3. The Use of Packing Labor in Florida Citrus Packinghouses.

Agricultural Economics Mimeo Report No. 57-8, June 1957.

4. A Method of Allocating Citrus Packinghouse Costs.

Agricultural Economics Mimeo Report No. 58-1, July 1957.

5. Twenty-seven Years of Citrus Production Costs and Returns in Florida,
1931-1958.

Agricultural Extension Service Economic Series 61-1, January 1961.

6. Twenty-seven years of Orange Production Costs and Returns in Florida,
1931-1958.

Agricultural Extension Service Economic Series, 60-2, March 1960.

AHS/ms 2/61
Agr. Econ. Exp. Sta. 1000