A--'1 Agricultural Economics
Mimeo Report EC 66-8
.... March 1966

COSTS f iZ7 AKE G AN`L" SE-LLING

FLORIDA

FRESH

CITRUS FRUITS

1964-65 SEASON

A. H. Spurlock
Agricultural Economist

Department of Agricultural Economics
Florida Agricultural Experiment Stations
Gainesville, Florida

COSTS OF PACKING AND SELLING FLORIDA
FRESH CITRUS FRUITS, 1964-65

by
A. H. Spurlock

CONTENTS
Page
INTRODUCTION ... . . . . * 1
COSTS OF PACKING AND SELLING, 1964-65 .. .. ... 3
Oranges . . . . * 16
Grapefruit . . . .
Tangerines . . . . .....* 17
Direct Grove-to-Cannery Fruit . .. .18
VARIATIONS IN PACKING AND SELLING COST AMONG FIRMS : 18
18
Oranges and Tangerines . .
Grapefruit . . . . 21
RELATIONSHIP OF SEASONAL VOLUME TO AVERAGE COST OF PACKING
AND SELLING...... . .... 23
TRENDS IN PACKING AND SELLING COST . . .25

Introduction

This summary is based on the accounting records of 38 citrus

packinghouses for the citrus marketing season 1964-65. Eleven of

these houses were located in the Indian River section along the East

Coast and 27 were in the Interior and West Coast sections.

The volume of packed fruit handled by the 38 packinghouses in

1964-65 amounted to an equivalent of 15,252,848 boxes of 1-3/5 bushels,

or approximately 54 percent of the total shipment of Florida fresh

citrus.-/ The packed volume ranged from 27,000 to 1,209,000 boxes and

averaged 401,391 boxes. Thus, the sample packinghouses were considerably

larger than the average of all citrus packinghouses in the State. These

latter averaged only 174,995 boxes for licensed and registered fresh

fruit shippers who shipped fruit from 160 houses in 1964-65.1/

1/Calculated from data in 1964-65 Season Annual Report, Division
of Fruit and Vegetable Inspection, Winter Haven, Florida.
1 -

2-

The distribution of fruit handled by class of fruit is shown in

Table 1. Cannery fruit throughthe house (eliminations) was not

obtained from one house, and. direct grove-to-cannery fruit was not

obtained from 10 houses. Packed fruit represented 47 percent of the

total volume of all houses, but was 60 percent of the East Coast houses

and 44 percent of the other houses. Fruit going direct from grove-to-

cannery was 29 percent of the' ttal'for all houses, but only 20 percent

TABLE l.--Distribution of Citrus Fruit Handled by Clss of Fruit,
38 Packinghouses, 1964-65 Seasona-

Total Average Volume: Percent of
Class of Fruit Volume' Per House Total Volume
(1-3/5 bu.. (1-3/5 bu.
boxes) boxes)
11 East Coast Packinghouses:
Packed fruit 3,629,931 329,994 59.8
Cannery fruit through house. 1,224,431 111,312 20.1
STotal.through house 4,854,362 441,306 79.9
Direct grove-to-cannery 1,218,439 110,767 20.1
Total 6,072,801 552,073 100.0

27 Other Packinghouses:
Packed fruit ,, 11,622,917 430,478 43.7
Cannery fruit through house 6,652,261 '246,380 25.0
Total through house' 18,275,178 676,858 68.7
Direct grove-to-cannery. 8,264,983 306,111 31.0
Packed fruit purchased 81,074 3,003 .3
Total 26,621,235 985,972 100.0

38 Packinghouses: :
Packed fruit 15,252,848 401,391 46.7
Cannery fruit through house 7,876,692 207,281. 24.1
Total through house 23,129,540 608,672 70.8
Direct grove-to-cannery 9,483,422 249,564 29.0
Packed fruit purchased '' 81,074. 2,133 .2
Total.. 32,694,036 .860,369 100.0

a/Cannery fruit through house not obtained from one house aid
grove-'to-cannery not-obtained from 10 houses,

- 3-

for the East Coast houses. The packed fruit of the East Coast houses

consisted of 74 percent grapefruit, 25 percent oranges, with less than

1 percent tangerines; the other houses had 39 percent grapefruit, 52

percent oranges and 9 percent tangerines. The East Coast firms ran a

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

higher percentage packout than the other group.of packinghouses.

When adjusted for the packinghouse not supplying data on elim-

inations, the packout averaged 64.9 percent of the fruit through the

house for 37 houses; 74.8 percent for the East Coast group, and 62.2

percent for the other houses (Table 2).

TABLE 2.--Percent of Total Fruit Received Which Was Packed for Shipment,
37 Packinghouses, 1964-65

Kind of Fruit East Coast Other All
Houses Houses Houses
(percent) (percent) (percent)

Oranges 65.8 61.0 61.6
Grapefruit 78.4 61.5 67.0
Tangerines 82.8 74.8 74.7
All Fruit 74.8 62.2 64.9

Costs of Packing and Selling, 1964-65

The cost data made available by the fresh citrus fruit packing-

houses showed the itemized expenses of each for 1964-65 together with

the boxes of fruit handled by kind of fruit and type of container.

Distribution of the various items of cost to each kind of fruit and

each container was made by the firm's accountants for 31 packinghouses;

and for seven houses which had only total costs by items of expense,

allocations were made using average ratios of labor used. Thus, there

were several different methods of cost allocation used in the original

data from which the averages were derived. Methods used for distributing

- 4 -

materials cost, general and administrative and selling expenses

appeared to be rather uniform among accountants, but labor and other

direct operating 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 a small

amount of some other labor to eliminated fruit. Any other direct

operating expenses allocated to the eliminated fruit were at a lower

per-box rate than to the packed fruit. In a number of the houses the

eliminated fruit was charged only with administrative expense, the same

as fruit going direct from grove to cannery.

The volume of citrus fruit handled by type of container and

kind of fruit is shown in Table 3. The number of the sample houses

using each container is also shown with the total cost of packing and

selling. Itemized costs for the principal packs are treated in sub-

sequent tables. Packing and selling costs for those containers

handled in small volumes and-by few houses are not considered repre-

sentative as they may reflect unusual conditions and costs.

The 38 packinghouses prepared a total of 47 different packs of

fruit plus a mixed group of miscellaneous containers for each type of

fruit. The 4/5 bushel fiberboard box was the most important container

used for oranges in 1964-65 from the standpoint of total volume. This

was followed by the 4/5 bushel half Bruce box and the 1-3/5 bushel

Bruce box. These.three containers were used for about 73 percent of

the packed oranges. For grapefruit, the 4/5 bushel fiberboard box

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

Bruce box next in order. About 74 percent of the grapefruit was sold

-5-

TABLE 3.--Number of Firms; Volume of Citrus Fruit
and Selling Cost, by Type of Container,
1964-65

Handled and Total Packing
38 Packinghouses, Florida,

Total
Number Packing and
inNumber f Total Average Selling Cost
ContaiFirmsner .... Volume per Firm per Box
(1-3/5 bu. equiv.)
Oranges:
4/5 bu. fiberboard box 36 2,421,882 67,275 $1.4395
4/5 bu. half Bruce 34 1,401,863 41,231 1.5877
1-3/5 bu. Bruce 26 1,145,371 44,053 1.2093
5-lb.poly.bag in master carton 24 549,334 22,889 1.7414
5-lb.mesh bag 23 303,134 13,180 1.7285
Bulk in truck 23 211,496 9,195 .8518
4/5 bu. Bruce flat 8 198,010 24,751 1.6113
8-1b. mesh bag 21 119,048 5,669 1.4758
5-lb.mesh bag in master carton 19 99,870 5,256 2.2211
4-lb.poly.bag in master carton 22 99,553 4,525 1.7919
Field box 11 72,510 6,592 .8027
8-lb. mesh bag in master carton 13 50,312 3,870 2.0361
4/5 bu. Bruce -export 4 42,927 10,732 1.4353
20-lb. mesh bag (1/4 box) 20 36,128 1,806 1.3430
8-lb.poly.bag in master carton 17 17,744 1,044 1.5908
4/5 bu. fiberboard box -export 3 14,167 4,722 1.3052
5-1b.mesh bag in wood.master count. 7 11,078 1,582 2.1673
1-3/5 bu.fiberboard (Texas carton) 4 9,515 2,379 .9808
8-lb.mesh bag in wood.master count. 4 4,811 1,203 1.9750
4 lb.mesh bag 3 2,926 975 2.1093
1-3/5 bu. Bruce -export 1 1,343 1,343 1.2749
1-3/5 bu. standard box 2 258 129 1.7176
Miscellaneous containers 8 8,160 2,406 1.6117
Total Packed Oranges 38 6,821,440 179,511 $1.4875

Grapefruit:
4/5 bu. fiberboard box
1-3/5 bu. Bruce
5-1b.poly.bag in master carton
5-1b.mesh bag
Bulk in truck
4/5 bu. half Bruce
8-lb. mesh bag
5-1b.mesh bag in master carton
5-1b.poly.bag in wood.mast.cont.
4/5 bu. Bruce -export
8-1b.mesh bag in master carton
8-1b.poly.bag in master carton
4/5 bu.fiberboard box -export

4,164,753
1,264,375
753,758
244,199
180,876
162,428
126,015
87,506
74,240
72,600
45,655
43,034
33,430

112,561
50,575
34,262
11,100
8,613
5,801
6,632
4,606
74,240
14,520
2,686
2,690
6,686

$1.3713
1.0266
1.5599
1.6312
.6538
1.3493
1.3320
2.0300
1.6624
1.3190
1.8647
1.4580
1.1529

- 6-

TABLE 3.--Number of Firms, Volume of Citrus Fruit
and Selling Cost, by Type of Container,
1964-65 (Continued)

Handled and Total Packing
38 Packinghouses, Florida,

Total
Number Total Average Packing and
Container of ol ere Selling Cost
Volume per Firm
Firms per Box
(1-3/5 bu. equiv.)
Grapefruit:(Cont.)
5-1b.mesh bag in wood.mast.cont. 6 32,470 5,412 $2.1780
Field box 9 29,046 3,227 .6487
1-3/5 bu.fiberboard (Texas carton) 2 10,676 5,338 .7493
5-1b.poly. bag 1 3,550 3,550 1.3164
8-lb.mesh bag in wood.mast.cont. 4 3,293 823 1.8748
20-1b.mesh bag (1/4 box) 10 2,879 288 1.1004
Miscellaneous containers _7 2.507 358 1.4360
Total Packed Grapefruit 38 7,337,290 193,087 $1.3433

Tangerines:
4/5 bu. half Bruce 24 582,252 24,261 $1.6367
4/5 bu. half Bruce flat 9 464,693 51,633 1.6626
4/5 bu. fiberboard box 4 18,750 4,688 1.5868
4/5 bu. Bruce -export 1 10,105 10,105 1.5962
Bulk in truck 6 8,660 1,443 1.1425
Field box 6 6,469 1,078 .8892
Miscellaneous containers 6 789 132 1.0345
Total Packed Tangerines 32 1,091,718 34,116 $1,6563

Misc.(Limes. Lemons, Kumquats):
Miscellaneous containers 2 2,400 1,200 $2.0995
Total Packed Fruit 38 15,252,848 401,391 $1.4304

Bulk Fruit through House to Cannery:
Oranges 37 4,088,147 110,490 $0.2239
Grapefruit 37 3,444,233 93,087 .1718
Tangerines 27 344,312 12,752 .2588
Total Bulk through House 37 7,876,692 212,884 $0.2028

Direct, Grove to Cannery 28 9,483,422 338,694 $0.0724
Packed Fruit Purchased 3 81,074 27,025 $0.1283

Total Volume All Fruit 38 32,694,036 860,369 $0.7374

in these two packs. Almost all of the tangerines were packed in two

types of 4/5 bushes wirebound boxes. There was a difference in con-

tainer usage between East Coast and other houses. The 4/5 bushel

fiberboard box was the principal container for both oranges and grape-

fruit in the East Coast section and, with the 4/5 bushel Bruce, the

two containers carried almost all citrus packed.

Itemized costs of packing and selling oranges, grapefruit and

tangerines for the 1964-65 season are given in Tables 4, 5 and 6 for 38

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 in these detailed tables.

Costs of handling cannery fruit direct-from-grove also are shown

in Table 6. This operation was not separated by kind of fruit, but

represents a mixture of all kinds.

Costs for packs handled by the East Coast houses are shown

separately from the other houses. The principal reason for separating

the two sections is that the East Coast houses generally used a heavier

corrugated box which cost about eight or nine cents more than the one

used by the interior houses.

None of the containers shown in Tables 4, 5 and 6 were packed

by all of the 38 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. Thfs can be illustrated by comparing the container cost of the

1-3/5 bushel Bruce box for oranges and grapefruit (Tables 4 and 5).

-8-

TABLE 4.--Weighted Average Costs of;Packing and Selling Florida Oranges, per
1-3/5 Bushel Equivalent, by Type of Container, 38 Packinghouses, 1964-65

1-3/5 bu. 5-1b. 8-1b. 5-1b. Mesh 5-1b. Poly.
Type of Container Bruce Mesh Mesh Bag in Bag in
Box Bag Bag Master Ctn. Master Ctn.

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 & cas.
Taxes and licenses
Depreciation
Rent
Total Indirect
Total packing expense
Administrative
Selling
Other items
Total Packing & Selling

26 23 21 19 24

44,053 13,180 5,669 5,256 22,889

Costs per 1-3/5 Bushel

$0.3717 $0.7072 $0.5354 $1.1639 $0.6241
.0149 .0135 .0111 .0096 .0084
$0.3866 $0.7207 $0.5465 $1.1735 $0.6325

$0.0406 $0.0466 $0.0469 $0.0438 $0.0492
.0506 .0117 .0058 .0562 .0537
.0863 .1314 .1142 .1087 .1234
.0861 .1530 .1402 .1765 .1775
.0559 .1003 .0929 .0901 .0865
.0345 .0414 .0383 .0407 .0494
$0.3540 $0.4844 $0.4383 $0.5160 $0.5397

$0.0145 $0.0225 $0.0216 $0.0166 $0.0236
.0386 .0585 .0529 .0657 .0589
.0113 .0156 .0158 .0133 .0166
$0.0644 $0.0966 $0.0903 $0.0956 $0.0991

$0.0086 $0.0148 $0.0141 $0.0119 $0.0084
.0089 .0139 .0147 .0104 .0099
.0308 .0432 .0384 .0413 .0519
.0040 0 0 0 .0207
$0.0523 $0.0719 $0.0672 $0.0636 $0.0909
$0.8573 $1.3736 $1.1423 $1.8487 $1.3622
.0644 .0657 .0612 .0595 .0740
.0812 .0826 .0737 .0966 .0903
.2064 .2066 .1986 .2163 .2149
$1.2093 $1.7285 $1.4758 $2.2211 $1.7414

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

- 9 -

TABLE 4.--Weighted Average
1-3/5 Bushel Equivalent,

Costs of Packing and Selling Florida Oranges, per
by Type of Container, 38 Packinghouses, 1964-65
(Continued)

4/5 bu. Half Bruce Box 4/5 bu. Fiberboard Box
Type of Container East Other All East Other All
Coast Houses Houses Coast Houses Houses

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 & exp.
Total Other Direct
Indirect operating:
Insurance-fire & cas.
Taxes and licenses
Depreciation
Rent
Total Indirect
Total packing expense
Administrativea
Selling
Other items
Total Packing & Selling

8 26 34 10 26 36

23,740 46,613 41,231 59,944 70,094 67,275

Costs per 1-3/5 Bushel

$0.5886 $0.5454 $0.5512. $0.4916 $0.4140 $0.4332
.0464 .0265 .0293 .0128 .0091 .0101
$0.6350 $0.5719 $0.5805 $0.5044 $0.4231 $0.4433

$0.0526 $0.0415 $0.0430 $0.0488 $0.0437 $0.0450
.0592 .0805 .0776 .0583 .0560 .0565
.1492 .1040 .1102 .1440 .1087 .1175
.1242 .1083 .1104 .1259 .1054 .1105
.0677 .0830 .0809 .0601 .0863 .0798
.0533 .0427 .0442 .0503 .0417 .0438
$0.5062 $0.4600 $0.4663 $0.4874 $0.4418 $0.4531

$0.0175 $0.0164 $0.0165 $0.0179 $0.0195 $0.0191
.0782 .0467 .0510 .0798 .0464 .0547
.0268 .0144 .0161 .0240 .0145 .0168
$0.1225 $0.0775 $0.0836 $0.1217 $0.0804 $0.0906

$0.0153 $0.0123 $0.0127 $0.0157 $0.0100 $0.0114
.0175 .0118 .0125 .0142 .0118 .0124
.0726 .0525 .0552 .0684 .0426 .0490
-- .0003 .0003 -- .0064 .0048
$0.1054 $0.0769 $0.0807 $0.0983 $0.0708 $0.0776
$1.3691 $1.1863 $1.2111 $1.2118 $1.0161 $1.0646
.1172 .0591 .0670 .0974 .0660 .0738
.1025 .0832 .0858 .1089 .0839 .0901
.2280 .2232 .2238 .2070 .2124 .2110
$1.8168 $1.5518 $1.5877 $1.6251 $1.3784 $1.4395

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.

- 10 -

TABLE 4.--Weighted Average Costs of Packing and Selling Florida Oranges, per
1-3/5 Bushel Equivalent, by Type of Container, 38 Packinghouses, 1964-65
,(Concluded)
S4-lb.
Poly. Bulk thru House to Cannery
Type of Container Bag in 20-lb. Bulk
Master Mesh in East Other All
SCarton Bag Truck Coast Houses Houses

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'& exp.
Total Other Direct
Indirect operating::
Insurance-fire & cas.
Taxes & licenses
Depreciation
Rent
Total Indirect
Total packing expense
Administrative
Selling
Other items
Total Packing & Selling

aAdministrative expi

22 20 23 11 26 37

4,525 1,806 9,195 42,834 139,114 110,490

Costs per 1-3/5 Bushel

$0.7329 $0.4684 0 0 0 0
.0075 .0111 .0022 0 0 0
$0.7404 $0.4795 $0.0022 0 0 0

$0.0480 $0.0380 $0.0413 $0.0349 $0.0269 $0.0279
.0452 .0093 .0051 -- --
.1156 .1059 .1087 .0653 .0409 .0437
.1887 .1025 .0820 -- .0001 .0001
.0882 .0856 .0349 -- .0013 .0011
.0472 .0339 .0275 .0104 .0123 .0121
$0.5329 $0.3752 $0.2995 $0.1106 $0.0815 $0.0849

$0.0219 $0.0193 $0.0114 $0.0077 $0.0055 $0.0058
.0621 : .0492 .0359 .0308 .0255 .0261
.0137 .0131 .0080 .0056 .0041 .0042
$0.0977 $0.0816 $0.0553 $0.0441 $0.0351 $Q.0361

$0.0093 $0.0114 $0.0117 $0.0094-$0.0059 ,$0.0063
.0122 .0114 .0084 .0061 .0036 0039
.0385 ..0352 .0258 .0194 .0229 .0225
.0100 0 0 -- .0012 .0010
$0.0700 $0.0580 $0.0459 $0.0349 $0.0336 $0.0337
$1.4410 $0.9943 $0.4029 $0.1896 $0.1502 $0.1547
.0617 .0645 .0790 .1046 .0498 .0562
.0789 .0828 .1010 .0232 -- ,0027
.2103 .2014 .2689 .0060 --.0109 .0103
$1.7919 $1.3430 $0.8518 $0.3234 $0.2109 $0.2239
ense 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.

- 11 -

TABLE 5.--Weighted Average
1-3/5 Bushel Equivalent,

Costs of Packing and Selling Florida Grapefruit, per
by Type of Container, 38 iPackinghouses, 1964-65

5-lb. 8-lb.
S 1-3/5 Poly. Poly.
Type of Container bu. Bag in Bag in 5-lb. 8-lb.
Bruce Master Master Mesh Mesh Bulk in
Box Carton Carton Bag Bag Truck

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 & exp.
Total Other Direct
Indirect operating:
Insurance-fire & cas.
Taxes &,licenses
Depr ciation
Rent
Total Indirect
Total.packing expense
Administrative
Selling b
Other items
Total Packing & Selling

25 22 16 22 19 21

50,575 34,262 2,690 11,100 6,632 8,613

Costs per 1-3/5 Bushel

$0.3703 $b.6347 $0.5976 $0.7226 $0.5284 --
.0121 .0080 .0053 .0106 .0106 $0.0009
$0.3824 $0.6427 $0.6029 $0.7332 $0.5390 $0.0009

$0.0336 $0.0494 $0.0403 $0.0506 $0.0401 $0.0415
.0460 .0518 .0493 .0054 .0051 .0017
.0554 .0903 .0791 .0978 .0822 .0780
.0624 .1408 .1255 .1284 .1156 .0538
.0535 .0879 .0853 .1240 .0985 .0372
.0261 .0420 .0392 .0374 .0324 .0202
$0.2770 $0.4622 $0.4187 $0.4436 $0.3739 $0.2324

$0.0110 $0.0217 $0.0218 $0.0251 $0.0204 $0.0074
.0283 .0602 .0458 .0454 .0457 .0330
.0086 .0158 .0131 .0180 .0140 .0070
$0.0479 $0.0977 $0.0807 $0.0885 $0.0801 $0.0474

$0.0056 $0.0085 $0.0090 $0.0144 $0.0117 $0.0094
.0068 .0103 .0107 .0141 .0117 .0061
.0217 .0438 .0301 .0377 .0340 .0181
.0021 .0034 .0122 .0001 0 0
$0.0362 $0.0660 $0.0620 $0.0663 $0.0574 $0.0336
$0.7435 $1.2686 $1.1643 $1.3316 $1.0504 $0.3143
.0694 .0659 .0819 .0789 .0721 .0846
.0714 .0805 .0711 .0774 .0685 .0993
.1423 .1449 .1407 .1433 .1410 .1556
$1.0266 $1.5599 $1.4580 $1.6312 $1.3320 $0.6538

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.

- 12 -

TABLE 5.--Weighted Average Costs of Packing and Selling Florida Grapefruit, per
1-3/5 Bushel Equivalent, by Type of Container, 38 Packinghouses, 1964-65
(Continued)
4/5 bu. Half Bruce Box 4/5 bu. Fiberboard Box
Type of Container East Other All East Other All
Coast Houses Houses Coast Houses Houses

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
Refairs-bldgs., equip.
Misc. supplies & exp.
Total Other Direct
Indirect operating:
Insurance-fire & cas.
Taxes & licenses
Depreciation
Rent
Total Indirect
Total packing expense
Administrativea
Selling
Other items
Total Packing & Selling

4 24 28 11 26 37

3,258 6,225 5,801 224,390 65,249 112,561
Costs per 1-3/5 Bushel

$0.5802 $0.5201 $0.5249 $0.5012 $0.4116 $0.4586
.0562 .0244 .0270 .0181 ..0069 .0135
$0.6364 $0.5445 $0.5519 $0.5193 $0.4185 $0.4721

$0.0477 $0.0321 $0.0334 $0.0466 $0.0375 $0.0429
.0593 .0818 .0800 .0588 .0556 .0575
.1069 .0749 .0774 .1040 .0685 .0895
.0812 .0876 .0871 .0962 .0847 .0915
.0677 .0784 .0776 .0883 .0797 .0848
.0501 .0346 .0358 .0403 .0336 .0376
$0.4129 $0.3894 $0.3913 $0.4342 $0.3596 $0.4038

$0.0106 $0.0112 $0.0112 $0.0117 $0.0153 $0.0132
.0564 .0364 .0380 .0617 .0337 .0503
.0150 .0099 .0102 .0153 .0114 .0137
$0.0820 $0.0575 $0.0594 $0.0887 $0.0604 $0.0772

$0.0107 $0.0122 $0.0121 $0.0163 $0.0072 $0.0126
.0106 .0110 .0110 .0135 .0088 .0116
.0458 .0325 .0336 .0492 .0280 .0405
0 0 0 0 .0039 .0016
$0.0671 $0.0557 $0.0567 $0.0790 $0.0479 $0.0663
$1.1984 $1.0471 $1.0593 $1.1212 $0.8864 $1.0194
.1076 .0697 .0728 .0972 .0644 .0838
.0860 .0666 .0682 .0988 .0816 .0918
.1606 .1480 .1490 .1967 .1465 .1763
$1.5526 $1.3314 $1.3493 $1.5139 $1.1789 $1.3713

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.

--

r I I

- 13 -

TABLE 5.--Weighted Average Costs of Packing and Selling Florida Grapefruit, per
1-3/5 Bushel Equivalent, by Type of Container, 38 Packinghouses, 1964-65
(Concluded)
5-1b.
Mesh Bulk thru House to Cannery
Type of Container Bag in
Master East Other All
Carton Coast Houses Houses

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 & exp.
Total Other Direct
Indirect operating:
Insurance-fire & cas.
Taxes & licenses
Depreciation
Rent
Total Indirect
Total packing expense
Administrativea
Selling
Other items
Total Packine & Selline

4,606

67,816
Costs

103,779
per 1-3/5 Bushel

93,087

$1.1429
.0081
S1.1510

$0.0459. $0.0330 $0.0218 $0.0242
.0579 .0074 0 .0016
.0818 .0244 .0216 .0223
.1408 0 .0002 .0002
.0893 0 .0010 .0007
.0352 .0069 .0065 .0066
$0.4509 $0.0717 $0.0511 $0.0556

$0.0188 $0.0027 $0.0030 $0.0029
.0501 .0170 .0150 .0155
.0140 .0026 .0025 .0025
$0.0829 $0.0223 $0.0205 $0.0209

$0.0083 $0.0048 $0.0029 $0.0033
.0094 .0036 .0022 .0026
.0355 .0104 .0098 .0099
0 0 .0003 .0002
$0.0532 $0.0188 $0.0152 $0.0160
$1.7380 $0.1128 $0.0868 $0.0925
.0710 .1078 .0569 .0681
.0752 .0138 0 .0030
.1458 .0075 .0084 .0082
$2.0300 SO.2419 SO.1521 $0.1718

.. . .. .. -
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.

. 14 -

TABLE- 6.--Weighted Average Costs of Packing and Selling Florida Tangerines and
Grove-to-Cannery Fruit, per 1-3/5 Bushel Equivalent, 38 Packinghouses, 1964-65

Tangerines All Fruit
Type of Container 4/5 bu. 4/5 bu. Bulk thru Direct
Half Bruce Bruce House to Grove-to-
Box Flat Box Cannery 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, comp., ins.
Total Labor
Other direct operating:
Power, lights, water
Repairs-bldgs., equip.
Misc. supplies & exp.
Total Other Direct ..
'Indirect operating:
Insurance-fire & cas.
Taxes & licenses
Depreciation
Rent
Total Indirect
Total packing expense
Administrativea
Selling
Other items
Total Packing & Selling

$1.2928
.0598
.0867
.2001
$1.6394

$1.3351
.0719
.0736
.1820
$1.6626

$0.1981
.0516
.0002
.0089
$0.2588

$0.0126
.0527
0
.0071
$0.0724

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.

.. 24 9 -- 27 28

24,261 51,633 12,752 338,694
Costs per 1-3/5 Bushel

$0.5466 $0.5750 0 0
.0314 .0164 0 0
$0.5780 $0.5914 0 0

$0.0485 $0.0530 $0.0321 0
.0706 .0771 0 0
.1240 .1472 .0529 $0.0028
.1407 .1359 .0 0
.0920 .0905 .0019 0
.0497 .0624 .0155 .0003
$0.5255 $0.5661 $0.1024 $0.0031

$0.0205 $0.0321 $0.0085 $0.0001
.0724 .0594 .0423 .0077
.0122 .0198 .0056 .0002
$0-1081 $0.1113 $0.0564 $0.0080

$0.0122 $0.0095 $0.0089 $0.0003
.0129 .0149 .0070 .0002
.0544 .0419 .0231 .0010
.0017 0 .0003 0
$0.0812 $0.0663 $0.0393 $0.0015

1 *_ irr -fj ._-i_- _JL x ._

.... I I I i I$1.6626

- 15 -

For oranges, 26 houses had an average container cost for the

l-3/5 ..bushel.Bruce box of $0.3717; and for grapefruit, 25 houses, not

quite identical with the orange houses, had a cost of $0.3703; 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, i.e., the total money

cost of each item for all houses was 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

Bruce box by 26 firms was $1.2739, or 6 cents higher than the weighted

average of $1.2093 as shown in Table 4. Twenty firms had total costs

higher than the weighted average and six had lower costs.

The cost of selling as shown in Tables 4, 5 and 6 includes only

the expense of the firm's own sales department or sales organization.

Brokerage, commission and auction charges are not included.

In the detailed cost (ables 4, 5 and 6), administrative and

general costs are condensed into one item, and a group of expenses shown

as "other items," is also reduced to one line. A typical distribution

of these groups is shown in Table 7. Some of the items such as degreening,

color-add and waxing are not enough to cover the full cost of the service,

but not all fruit was so treated. Total expenditure for any item or

service was divided by the whole number of boxes packed.

- 16 -

Table 7.--Typical Distribution of Administrative and General Expense and
; '; Other Items, 38 Packinghouses, 1964-65.

Oranges Grapefruit Tangerines
4/5 bu. 4/5 bu. 4/5 bu.
: Half Bruce Fiberboard Half Bruce
Box Box Box
-(Costs per 1-3/5 bushel) - -
Administrative & General Expense:
Management & office salaries $0.0415 $0.0442 $0.0380
Office supplies & expense .0034 .0060 .0030
Auto, travel & entertainment .0026 .0076 .0027
Operating interest .0035 .0061 .0028
Telephone & telegraph .0025 .0034 .0020
Miscellaneous administrative .0135 .0165 .0112
Total Administrative & General$0.0670 $0.0838 $0.0597

Other Items:
Degreening, color-add & wax $0.0634 $0.0311 $0.0412
Precooling .0175 .0196 .0152
Florida Citrus advertising tax .0888 .0602 .0516
Federal-State inspection .0386 .0360 .0384
Florida Citrus Mutual .0074 .0074 .0074
Growers Administrative Cowmittee .0048 .0041 .0047
Miscellaneous other .0033 .0179 .0416
Total Other Items $0.2238 $0.1763 $0.2001

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

oranges in the 1-3/5 bushel Bruce box was $1.21. The two major expense

items materials and labor accounted for 61 percent of the total cost.

Materials expense, which included the wirebound crate, liner and label,

averaged about $0.39 per box and labor averaged $0.35.

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

4/5 bushel half Bruce box was $1.59; and in the 4/5 bushel fiberboard box

was $1.63 on the East Coast and $1.38 for other packinghouses. Oranges

packed in 5-pound mesh bags averaged $1.73 to pack and sell, and 8-pound

mesh bags cost $1.48. Both materials and labor costs were more per 1-3/5

bushel equivalent for the 5-pound than for the 8-pound bag.

- 17 -

The most expensive pack for oranges in common use in 1964-65

was the 5-pound mesh bag in master cartons. Since it requires two

types of containers, it had the highest materials cost and also a compar-

tively high labor cost. The average cost of packing and selling this

pack was $2.22 per 1-3/5 bushel equivalent. The average cost of the

5-pound polyethylene bag in master cartons was $1.74, and the 4-pound

polyethylene bag in master cartons was $1.79. Polyethylene bag costs

for the same size vary with the type of closure used.

The average cost of packing and selling oranges loaded bulk-in-

truck was $0.85 per 1-3/5 bushel equivalent. Bulk oranges through-

house-to-cannery(eliminations) averaged $0.32 per box for East Coast

houses and $0.21 for other houses. 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 5. The total cost per 1-3/5 bushel equiv-

alent for packing and selling grapefruit was $1.03 for the 1-3/5 bushel

Bruce box, 64 percent of which was materials and labor costs. Packing

and selling costs were $1.35 for the 4/5 bushel half Bruce box all areas;

$1.37 for the 4/5 bushel fiberboard box, $1.63 for the 5-pound mesh bag;

$1.33 for the 8-pound mesh bag; $2.03 for the 5-pound mesh bag in master

carton; $1.56 for the 5-pound polyethylene bag in master carton; and

$1.46 for the 8-pound polyethylene bag in master carton. Grapefruit

sold bulk-in-truck cost $0.65 per box, and bulk grapefruit through-

house-to-cannery (eliminations) averaged $0.17 per box.

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

tangerines are shown in Table 6. Two types of the 4/5 bushel wirebound

- 18 -

box were the containers in most common use in 1964-65. The 1-3/5 bushel

equivalent cost for packing and selling tangerines in the 4/5 bushel

half Bruce box was $1.64, and in the 4/5 bushel wirebound flat box, $1.66.

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 were about 67 percent of the total

cost of packing and selling for the half Bruce, and 69 percent for the

4/5 bushel flat Bruce. Bulk tangerines through-house-to-cannery averaged

$0.26 per box for packing and selling.

Direct grove-to-cannery fruit.--Packinghouse expenses for fruit

going direct from the grove to the cannery averaged only $0.0724 per

box (Table 6). This was principally administrative expense as direct

packinghouse expenses were negligible for this class of fruit.

Variations in Packing and Selling Cost Among Firms

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

and selling citrus in 1964-65. This occurs each season and is due to a

variety of factors, most of which cannot be identified from accounting

summaries of operations, Some of the variation may be due to the method

of allocating aggregate costs to each pack. An index is in preparation

to eliminate the effect of this on.the firm's overall cost position.

Oranges and Tangerines.--The variation among firms in the total

cost of packing and selling oranges and tangerines per 1-3/5 bushel

equivalent in the various containers is shown in Table 8. These cos;s

are arrayed in 10-cent intervals for six types of contaiLers for oranges

and one for tangerines. For the 26 firms packing oranges in 1-3/5

bushel Bruce boxes, the total packing and selling costs ranged from

- 19 -

TABLE 8. Variations in the Cost per 1-3/5 Bushel Equivalent of Packing and
Selling Florida ORANGES and TANGERINES, by Type of Container, 38
Packinghouses, 1964-65 Season

Oranges i Tangerines
4# Poly.5# PolyJ
Cost per 4/5 bu. 4/5 bu.Carton 5-lb.Bag in Bag in 4/5 bu.
1-3/5 Bushel 11-3/5 bu. Half Bruce East Mesh Master Master Half Bruce
Equivalent :Bruce Box Box Coast Other Bag Carton Carton Box
- - -Number of Packinghouses - -

Packing and Selling Cost
$1.00 $1.09 1 -
1.10 1.19 4 1 -
1.20 1.29 11 4 -
1.30 1.39 6 1 7 -
1.40 1.49 3 6 7 1 1 -
1.50 1.59 1 6 2 6 2 6
1.60 1.69 8 3 1 2 1 4 4
1.70 1.79 9 3 5 4 3 3
1.80 1.89 2 1 6 2 7 5
1.90 1.99 1 1 2 6 4 4
2.00 2.09 1 3 3 1
2.10 2.19 2 1 3 1
2.20 & over 1 4 2 -
Total Number 26 34 10 26 23 22 24 24

Packing Cost Only (Materials, Labor, Packinghouse Expenses)
$0.70 $0.79 1 -
.80 .89 12 2 -
.90 .99 9 7 -
1.00 1.09 3 5 1 10 -
1.10 1.19 1 8 3 4 1 1 1
1.20 1.29 10 3 3 2 1 2 7
1.30 1.39 6 9 1 4 6
1.40 1.49 4 2 2 4 7 3
1.50 1.59 1 1 4 6 5 4
1.60 1.69 3 4 1
1.70 1.79 1 1 2 2
1.80 1.89 1 1 1 -
1.90 1.99 1 1 2 -
2.00 2.09 1 -
2.10 2.19 1 -
Total Number 26 34 10 26 23 22 24 24

- 20 -

$1.06 to $1.51 per box with 17 firms falling within the range of

$1.20 to $1.39. Thirty-four firms packing 4/5 bushel half Bruce

boxes had costs between $1.33 and $2.00, with:14 in the range of

$1.50 to $1.69 per 1-3/5 bushel equivalent. Costs for the 4/5 bushel

fiberboard box varied from $1.51 to $1.96 for 10 East Coast houses,

and from $1.15 to $1.62 for 26 other packinghouses. The East Coast-

section had container costs 8 or 9 cents higher. Costs for 14 of,the

26 Interior firms were within the range of $1.30 to $1.49.

Packing and selling costs of oranges in 5-pound mesh bags

varied between $1.56 and $2.23 for 23 packinghouses of which 11 had

costs between $1.70 and $1.89. For 5-pound polyethylene bags in master

cartons the total packing and selling cost ranged from $1.44 to $2.32

for 24 firms of which 14 ranged from $1.70 to $1.99. Costs for

4-pound polyethylene bags in master cartons varied from $1.49 to $2.38

for 22 firms with11 in the range of $1.PO to $2.09.

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

equivalent ranged from $1.54 to $2.12 for the 4/5 bushel half Bruce box

for 24 firms. Twelve of these had costs between $1.60 and $1.89.

The variations in packing costs only (excluding administrative,

selling and other extraneous costs) were similar to the variations in

packing and selling costs. The range for the 26 firms handling 1-3/5

bushel Bruce boxes of oranges was from $0.78 to $1.12. The packing

cost for 13 of these firms ranged from $0.85 to $0.99. The cost of

packing oranges in 4/5 bushel half Bruce boxes for 34 firms ranged

from $1.03 to $1.56,and for 17 of these firms between $1.15 and $1.29.

Ten East Coast houses packing 4/5 bushel fiberboard boxes had costs

varying from $1.07 to $1.58 per box with 26 Interior houses ranging

- 21 -

from $0.88 to $1.24. Costs for 13 of the Interior houses were between

$0.95 and $1.09. Twenty-three firms packing the 5-pound mesh bag

had packing costs from $1.26 to $1.94 with 12 firms with costs from

$1.35 to $1.59.

The spread in packing cost for the 5-pound polyethylene bag

in master carton for 24 firms was between $1.11 and $1.97 with 12 firms

included within the cost interval of $1.40 to $1.59. For the 22 firms

packing oranges in 4-pound polyethylene bags in master cartons, the

packing cost ranged from $1.15 to $2.10, and 10 of these firms had

costs between $1.50 and $1.69 per box.

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

equivalent varied from $1.18 to $1.75 for 4/5 bushel half Bruce boxes,

with 13 of the 24 firms between $1.30 and $1.59.

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

among the different firms was not as wide as in oranges. The 25 firms

using 1-3/5 bushel Bruce boxes had costs which varied between $0.93

and $1.46 for packing and selling each box as shown by data in Table 9.

Of these firms, 17 had costs between $1.00 and $1.19. For the 4/5

bushel half Bruce box, 28 firms had total packing and selling costs

ranging between $1.19 and $1.68. Of these, 12 had costs from $1.30 to

$1.49. Eleven East Coast firms using the 4/5 bushel fiberboard box

had costs ranging from $1.33 to $1.69 per box, and 26 Interior houses

varied from $1.01 to $1.46. Eighteen of the Interior houses were

between $1.15 and $1.39. For the 8-pound mesh bag, 19 houses had

costs ranging from $1.20 to $1.68 per box with 10 of these between

$1.30 and $1.59.

- 22 -

TABLE 9,--Variations in the Cost per 1-3/5 Bushel Equivalent of Packing and
Selling Florida GRAPEFRUIT, by Type of Container, 38 Packing-
houses, 1964-65 Season

5-lb. Poly.

Cost per 4/5 bu. 4/5 bu. Carton 8-lb. 5-lb. Bag in
1-3/5 Bushel 1-3/5 bu. Half Bruce East Mesh Mesh Master
Equivalent iBruce Box Box Coast Other Bag Bag Carton
- - -Number of Packinghouses - - -
Packing and Selling Cost

$0.90 $0.99 4 -
1.00 1.09 9 3 -
1.10 1.19 8 1 7 -
1.20 1.29 2 4 6 5 1
1.30 1.39 1 7 3 9 6 -
1.40 1.49 1 5 3 1 2 2 -
1.50 1.59 8 3 2 7 6
1.60 1.69 3 2 4 6 7
1.70 1.79 -- 1 4
1.80 1.9 1 -
1.90 1.99 2 1
2.00 2.09 2 2
2.10 2.19 -- --
Total Number 25 28 11 26 19 22 22

Packing Cost
3
11
7
2 4
2 11
4
8
1

Only (Materials, Labor, Packinghouse Expenses)

4 -
4
10 -
2 5 5 -
6 4 6 1
-3 3 2
2 1 7 6
1 4 5 9
3 2

2
2
2
1 -
S6 1 1
11 26 19 22 22

$0.60 -
.70 -
.80 -
.90 -
1.00 -
1.10 -
1.20 -
1.30 -
1.40 -
1.50 -
1.60 -
1.70 -
1.80 -
1.90 -
Tota.l

$0.69
.79
.89
.99
1.09
.1.19
1.29
1.39
1.49
1.59
1.69
1.79
1.89
1.99
Number

!

Number

" -- 28

J[-t Q

The packing and;selling costs for grapefruit in 5-pound mesh

bags were from $1.43 to $2.-11for 22 firms with 13 firms between $1.55

and $1.89. For 5-pound polyethylene bags in master cartons, 22 firms

ranged from $1.29 to $2.19.with 15 firms falling between $1.55 and $1.79

per 1-3/5 bushel equivalent.-

Packing costs only (excluding administrative, selling.and other

extraneous costs) for grapefruit in 1-3/5 bushel Bruce boxes for 25

firms varied from $0.67 to $1.00. Sixteen of these firms ranged between

$0.70 and. $0.84. Twenty-eight.packinghouses had packing cost ranging

from $0.90 to $1.34 for the 4/5 bushel half Bruce box with 19 of these

firms ranging from $1.00 to $1.24. The 11 East Coast houses packing the

4/5 bushel fiberboard box were within the cost range of $0.93 and $1.35,

and 26 Interior houses varied from $0.77 to $1.15. Fifteen of the

Interior houses had-packing costs between $0.80 and $0.99. Packing

costs for the 8-pound mesh bag varied from $0.92 to $1.39 per box for

19 firms with 10 between $1.00 and $1.29.

.......... The cost of packing in'5-pound mesh bags for 22 firms ranged

from $1.16 to $1.82 per box with 10 houses between $1.25 and $1.49.

Variation in cost for the 22 firms packing grapefruit in 5-pound poly-

ethylene bags in master cartons ranged from $1.01 to $1.91. Costs for

12 houses fell within the range of $1.25 to $1.39.

Relationship of Seasonal Volume to Average
Cost of Packing and Selling

The data indicate a 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.

- 24 -

Packinghouses in the smallest volume group (under 300,000 boxes)

had costs for packing and selling oranges in 4/5 bushel Bruce boxes of

13 cents more than the average for all houses. The next larger group

(300,000 to 499,999 boxes) had average costs of 17 cents above average.

Houses in the two largest volume groups (500,000 boxes and over) each

had costs three cents lower than the average (Table 10).

TABLE 10.--Variation in the Cost of Packing and Selling Florida ORANGES
in 4/5 Bushel Half Bruce Boxes, by Volume Groups, 38 Packing-
houses, 1964-65

Number of Boxes Handled (1-3/5 bu. Equivalent)
Cost per Under 300,000- 500,000- 800,000 All
1-3/5 Bushel 300,000 499,999 799,999 & over Volumes
- - Number of Packinghouses - -
$1.30 $1.39 l 1
$1.40 $1.49 3 3 6
$1.50 $1.59 1 3 2 6
$1.60 $1.69 3 2 3 2 10
$1.70 $1.79 2 3 2 7
$1.80 $1.89 1 1 2
$1.90 $1.99 1 1 2
Total 7 7 11 9 34

Weighted Average
Cost $1.72 $1.76 $1.56 $1.56 $1.59

For packing and selling grapefruit in 4/5 bushel fiberboard boxes,

houses in the smallest volume group had total costs of 20 cents above the

average cost, while those in the largest volume group had costs the same

as the average (Table 11).

The relationship between total volume of fruit through the house

and cost per box is imperfect because important factors affecting costs

may 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

- 25 -

TABLE ll.--Variation in the Cost of Packing and Selling Florida
GRAPEFRUIT in 4/5 Bushel Fiberboard Boxes by Volume Groups,
38 Packinghouses, 1964-65

Number of Boxes Handled (1-3/5 bu. Equivalent)
Cost per Under 300,000- 500,000- 800,000 All
1-3/5 Bushel 300,000 499,999 799,999 & over Volumes
- - Number of Packinghouses - - -
$1.00 $1.09 1 2 3
$1.10 $1.19 1 3 3 7
$1.20 $1.29 3 1 3 1 8
$1.30 $1.39 3 3 2 2 10
$1.40- $1.49 1 1 2 4
$1.50 $1.59 1 2 3
$1.60 $1.69 2 2
Total 9 7 11 10 37

Weighted Average
Cost $1.54 $1.41 $1.31 $1.35 $1.35

house arid machinery which affect labor costs. 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.

Trends in Packing and Selling Cost

The trend in total cost of packing and selling Florida citrus

fruits in the most common containers during the past 14 seasons has been

generally upward (Table 12). Weighted average costs in 1962-63 rose to

unusual highs following the severe freeze, but declined somewhat in

1963-64 as operations for more houses approached a nearer normal output.

Many houses had additional increases in volume of fruit packed in 1964-65,

and packing and selling cost for most packs again declined somewhat.

- 26 -

TABLE 12.--Average Total Cost per 1-3/5 Bushel Equivalent for Packing
and Selling Florida Citrus Fruits for Fresh Consumption,
1951-52 through 1964-65a

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

1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62
1962-63
1963-64
1964-65

1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62
1962-63
1963-64
1964-65

$1.1069
1.2067
1.2335
1.2609
1.2322
1.2639
1.3644
1.4086
1.3770
1.4411
1.3584
1.7465
1.6623
1.4758

ORANGES
$1.3444
1.4469
1.4597
1.5005
1.4967
1.5278
1.6464
1.6682
1.6425
1.7011
1.6339
2.0385
1.8234
1.7285

$0.9111
0.9530
0.9355
0.8863
0.9603
1.0068
1.1164
1.0990
1.0782
1.1247
1.0726
1.4006
1.2504
1.2093

$0.8487
0,8543
0.8375
0.7984
0.8682
0.9285
1.0077
0.9719
0.9462
1.0010
0.9584
1.1581
1.0853
1.0266

$- -

$1.0088
1.0508
1.0939
1.1551
1.2150
1.2247
1.2648
1.3328
1.3188
1.4956
1.4202
1.4395

$0.9058
0.9277
1.0000
1.0549
1.1057
1.1305
1.1804
1.2042
1.2819
1.2857
1.2857
1.3713

$- -

$1.2996
1.4069
1.4430
1.4189
1.4518
1.4330
1.7311
1.6431
1.5877

$1.1803
1.2539
1.2790
1.2626
1.3270
1.2862
1.4847
1.3568
1.3493

4/5 bu. Bruce Flat
$1.3589
1.4379
1.4373
1.4597
1.4725
1.5675
1.6277
1.6044
1.7005
1.6754
1.6547
2.1290
1.7424
1.6626

TANGERINES
4/5 bu.

Half Bruce Box

$1.5909
1.5534
1.5689
1.5253
1.8081
1.7793
1.6394

aNumber
1951-52 67
1952-53 63
1953-54 43

of houses included in each of the
1954-55 43 1957-58 42
1955-56 42 1958-59 0 42
1956-57 43 1959-60 39

years:
1960-61 -
1961-62 -
1962-63 -

1963-64 38
1964-65 38

GRAPEFRUIT
$1.0467 $1.2670
1.1231 1.3233
1.1659 1.3666
1.1891 1.3964
1.1724 1.4264
1.2188 1.4730
1.3089 1.5805
1.2972 1.6132
1.2668 1.5785
1.3301 1.6448
1.2863 1.5939
1.4978 1.8132
1.4227 1.7152
1.3320 1.6312

1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62
1962-63
1963-64
1964-65

1964-65

OTHER PUBLICATIONS AVAILABLE ON CITRUS COSTS
DEPARTMENT OF AGRICULTURAL ECONOMICS
FLORIDA AGRICULTURAL EXPERIMENT STATIONS
GAINESVILLE, FLORIDA

1. Costs of Processing, Warehousing and Selling Florida Citrus
Products, 1964-65 Season.
Agricultural Economics Mimeo Report EC66-9. April 1966

2. Costs of Picking and Hauling Florida Citrus Fruits, 1964-65 Season.
Agricultural Economics Mimeo Report EC66-7. March 1966.

3. Thirty-three Years of Citrus Production Costs and Returns in Florida,
1931-1964.
Agricultural Expension Service Economic Series 66-2. April 1966.

4. Thirty Years of Orange Production Costs and Returns in Florida, 1931-1961
Agricultural Expension Service Economic Series 63-3. April 1963.

5. Cost of Planting and Developing Florida Citrus Groves Through 10
Years of Age.
Agricultural Extension Service Economic Series 65-1. February 1965.

AHS/cl May 1966
Exp. Sta., Agr. Econ. 1500

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