August 1958

Agricultural Economics
Mimeo Report No. 59-1

COSTS OF PROCESSING, WAREHOUSING AND

SELLING FLORIDA CITRUS PRODUCTS, 1956-57 SEASON

Cost

Season Ending--

Trend in the Cost of Processing, Warehousing and Selling Single Strength
Orange Juice Per 12/46 Case, 1946-47 to 1956-57 Inclusive

Department of Agricultural Economics
Florida Agricultural Experiment Stations
Gainesville, Florida >
in cooperation with
Farmer Cooperative Service
U. S. Department of Agriculture n
Washington, D. C. 20

FOREWORD

Costs of processing Florida citrus products have been published
annually for the past eleven seasons. These costs have been assembled,
tabulated, and published by the Florida Agricultural Experiment Station
in cooperation with the Farmer Cooperative Service, U. S. Department
of Agriculture.

This is a report of one phase of Southern Regional Project SM-4,
"Marketing Citrus Fruits".

This report was prepared by:

A. H. Spurlock, Agricultural Economist, and H. G. Hamilton, Agricultural
Economist and Head, Department of Agricultural Economics, Florida Agricultural
Experiment Station, University of Florida, Gainesville, Florida.

F. E. Hulse, Agricultural Economist, Fruit and Vegetable Branch, and
J. K, Samuels, Director, Marketing Division, Farmer Cooperative Service,
Washington, D. C.. Etta Emmons, Farmer Cooperative Service, made most
of the computations for the data appearing in the tables.

TABLE OF CONTENTS

Cost of processing single-strength juices . 3

Variations in cost . . . .6

Volume and cost ..... .. ..... 8

Cost of processing citrus sections . . 11

Cost of processing frozen orange concentrate 12

424-43

COSTS OF PROCESSING, WAREHOUSING, AND SELLING
FLORIDA CITRUS PRODUCTS, 1956-57 SEASON

Nineteen processing firms cooperated in the study for the 1956-57 season.

These firms processed some 31 million actual cases of single-strength juices and

sections--approximately 73 percent of total Florida production; and 47 million

gallons of frozen orange concentrate, or 65 percent of total Florida production

for the season.

Data for frozen orange juice concentrate were based on records of 12 firms

operating 13 plants while data for single-strength juice were based on records of

15 firms operating 15 plants.

This is a 44 percent increase over the 1955-56 season in number of plants

providing records on frozen orange juice concentrate and represents a 55 percent

increase in the cooperating plants' proportion of Florida's total production. There

was no increase this year in number of plants providing records on single-strength

juices and sections except for some case sizes and for tangerine juice and sections.

However, volume handled by cooperating plants this year showed an increase of

7 percent in the proportion of total Florida production represented. Shifts in size

and composition of the sample are so substantial in the case of frozen orange juice

concentrate that cost comparisons for the last two seasons have been considered for

each product for those plants that have cooperated in both years. In the case of

those products for which the sample has changed little, the average cost of prod-

uction will be very nearly comparable with costs for prior years.

It should be noted that these data represent estimates of industry costs. Year

to year changes in these estimates may result from both changes in plant costs and
I

changes in the sample. Thus, when sample changes have been substantial, as with

frozen orange juice concentrate, caution must be used in interpreting data.

Detailed cost data assembled from the cooperating firms were combined into

the major cost categories listed below for single-strength juice and sections:

Materials:

Cans

Cartons

Labels and adhesives

Labor:

Direct--includes associated payroll taxes and compensation insurance

Indirect--includes supervision, associated payroll taxes and compensation
insurance

Warehousing and shipping--includes all labeling labor and other ware-
housing and shipping labor, plus associated payroll taxes and
compensation insurance

Other manufacturing costs:

Power, light and water

Maintenance, building and equipment (materials)

Royalties

Depreciation

Manufacturing overhead--includes appropriate insurance and taxes

Warehousing

Miscellaneous expense

Administrative and selling--includes such items as accounting, interest, travel,
telephone, and telegraph, office supplies, salaries and associated payroll
taxes and compensation insurance, etc. Brokerage and discounts are
excluded.

Other costs--includes fruit advertising tax and inspection tax or fee.

As in the previous year, an effort has been made in this report to provide

detailed information on the "materials" and "other manufacturing" categories. In

general it is possible to be quite confident in the total cost figures for various prod-

ucts and sizes. As categories are divided into subgroups, however, there is room for

some discrepancy. For example, the report attempts to put all labeling labor--either

from line or stack-- into "warehouse labor". Occasionally a cooperating firm will

include labeling from the line in "direct labor". In such instances it is difficult to

isolate and measure.

In this report social security taxes and associated charges are grouped in the

wage or salary category to which they apply. Some firms distribute such charges

along with associated labor costs, while others distribute social security and related

items to some category such as "general administrative expense". This calls for

arbitrary reallocation and distribution to make labor items consistent for all firms.

Costs of Processing Single-Strength Juices

Average costs of processing, warehousing, and selling single-strength juices,

excluding the cost of sugar, in 12/46 cases, are shown in Table 1. This table covers

the past ten years, and shows a definite increase in costs over previous years.

Analysis of major cost categories for unsweetened orange juice shows that

costs in three items (other manufacturing costs, administrative and selling costs,

and other costs--or fruit taxes and inspection fee) were lower in 1956-57 than in

1955-56. However, the other two cost items which account for 80 percent of the

Table 1.--Average Cost of Processing, Warehousing,
Juices, Excluding Sugar, in 12/46 Cases,

and Selling Florida Citrus Fruit
1947-48 through 1956-57 Seasons.

Season Orange Juice Grapefruit .Juice Blended Juice

1947-48 $ 1.09 $1.09 $1.09
1948-49 1.17 1.17 1.15
1949-50 1.21 1.19 1.19
1950-51 1.24 1.23 1.23
1951-52 1.30 1.31 1.31
1952-53 1.35 1.35 1.34
1953-54 1.26 1.26 1.26
1954-55 1.27 1.27 1.28
1955-56 1.32 1.33 1.33
1956-57a 1.38 1.40 1.39

01956-57 costs are based on data from 15 firms as compared with the same number
of firms producing orange and grapefruit juice and 14 producing blended juice for 1955-
56 costs, and include data for each product from two plants not included in the 1955-56
sample. See text for further explanation.

total cost exclusive of sugar (material costs and labor costs) were higher. Details of the

change among principal cost categories are as follows:

Orange Juice 12/46 Change in cost
(excluding sugar) 1955-56 1956-57 from 1955-56 Percent

Material $0,8982 $0.9627 +$0,0645 +7.2
Labor .1341 .1415 + .0074 +5.5
Other manufacturing .1640 .1580 .0060 -3.7
Administrative and selling .0894 .0812 .0082 -9.2
Other costs 0.0338 0.0330 0.0008 -2.4
Total--nonsweetened $1.3195 $1.3764 +$0.0569 +4.3

As explained earlier in this report, some changes in the composition of sample

plants have occurred this year for all products analyzed. These changes have had little

effect on costs for single-strength juices packed in 12/46 cases. For the 13 plants

included in the sample for both years, overage costs for orange and grapefruit juices

are about one cent less in 1956-57 than the average for all 15 plants. For blended

juice, 12 plants were included in both years and showed an average cost of one cent

less than the cost of all 15 plants. The: differences between 1955-56 and 1956-57

costs for these identical plants averaged about one cent less than the differences

indicated in Table 1.

On the basis of major cost categories shown in the table above for processing

and selling unsweetened orange juice in 12/46 cases, the 13 plants identical to both

the 1955-56 and 1956-57 samples show approximately the same costs as for all plants.

Details of the comparisons for the 12 plants are as follows:

Orange Juice 12/46 Change in cost
(excluding sugar) 1955-56 1956-57 from 1955-56 Percent

Material $0.8982 $0.9546 + $0.0564 + 6.3
Labor .1336 .1410 + .0074 + 5.5
Other manufacturing .1627 .1586 .0041 2.5
Administrative and Selling .0894 .0816 .0078 8.7
Other costs 0.0338 0.0331 0.0007 2.1
Total--nonsweetened $1.3177 $1.3689 +$0.0512 +3.9

Similar analysis of costs for grapefruit and blended juices show that material

costs, labor costs, and other manufacturing costs, or about 90 percent of the total

cost exclusive of sugar, were higher in 1956-57 than for the previous season. Other

costs and administrative and selling costs were lower for both products than in the

previous season.

Itemized costs of- processing single-strength juices in the most popular can sizes

(24/2 and 12/46 cases) for the 1956-57 season are shown in Table 2. Average costs

(excluding sugar costs) for processing and selling citrus juices were higher in 1956-57

than in 1955-56. Increases ranged from $0.0569 per case of 12/46 orange juice to

$0.1101 per case of 24/2 tangerine juice.

The costs of processing and selling citrus juices unsweetened, in 12/46 cases

were about six cents per case higher than for 24/2 cases. However, for an equivalent

volume of juice, (basis 24/2 cases) the costs for 12/46 cases were approximately 23 cents

per case lower than for 24/2 cases. The difference is somewhat larger than that existing

in 1955-56, which was three cents smaller than the 1954-55 difference. Differences in

individual plant costs for these different case sizes show a high degree of consistency.

Also, plants substituted in the 1956-57 sample for those dropped from the 1955-56 sample

show similar cost differences for these case sizes. Changes in sample plants in 1956-57

have no appreciable effect on the following comparison:

Orange Grapefruit Blended Tangerine
Item Juice Juice Juice Juice

24/2 cases $1.3242 $1.3427 $1.3326 $1.3610
12/46 cases (24/2 basis) 1.0932 1.1122 1.1010 1.1329
Dlfferenc* 1956-57 $0.2310 $0.2305 $0.2316 $0.2281
1955-56 difference 0.1914 0.1883 0.1971 0.1923

Variations in Cost

The average cost per case for all firms is a weighted average based on the total

cost and volume of each firm. Variations in the total cost of processing, warehousing,

Table 2.--Cost per Case by Type of Container for Processing, Warehousing, and Selling Florida Citrus Fruit Juices, 15 Canneries,
1956-57 Season

Product Orange Juice Grapefruit Juice Blended Juice Tangerine Juice
Type of Container 24/2 12/46 24/2 12/46 24/2 12/46 24/2 12/46
Number of Firms 15 15 15 15 15 15 7 8
Cases per Firm 192,002 504,609 138,647 417,372 50,557 183,005 14,580 46,405

Cosr per case:
Material:
Cans
Cartons
Labels, etc.
Total material
Labor:
Direct
Indirect
Warehousing and shipping
Total labor
Other manufacturing:
Power, light, and water
Maintenance, bldg., equip.
Royalties
Depreciation
Manufacturing overhead
Warehousing
Misc, expense
total other mfg. expense
Total processing, warehsg
Administrative and selling
Other costs
Cost unsweetened
Sugar
Total Cost

$0.8262
.0868
.0673

jou.You

.0524
.0104
.0637

$0.8020
.1073
.0534

$0.9627

.0601
.0129
.0685

$0.8298 $0.8069
.0888 .1099
.0632 .0525
$0.9818 $0.9693

.0521
.0114
.0644

.0614
.0146
.0689

$0.8282
.0874
.0654
$0.9810

.0508
.0111
.0664

$0.1265 $0.1415 $0.1279 $0.1449 $0.1283 $0.1452 -$0.1413 $0.1699

.0186 .0236 .0194 .0238 .0194 .0243 .0186 .0240
.0176 .0229 .0195 .0246 .0188 .0231 .0304 .0363
.0378 .0496 .0240 .0290 .0284 .0361 .0432 .0553
.0124 .0159 .0141 .0182 .0134 .0173 .0135 .0169
.0071 .0094 .0076 .0109 .0074 .0101 .0075 .0102
.0254 .0276 .0239 .0253 .0241 .0259 .0230 .0271
.0070 .0090 .0079 .0105 .0078 .0100 .0054 .0071
$0.1259 $0.580 .114 $0.1423 $.1193 $. $0.1416 $0.1769
.i. 1 $g540'548,,... .0
~t 62) ~ 3~;i l~--(l~llI- IIIII TI----- T-. ~468IY

$0.8048
.1080
.0526
$0.9654

.0607
.0135
.0710

$0.8185
.0860
.0638
$0.9683

.0709
.0156
.0548

$0.7880
.1072
.0503
$0.9455

.0894
.0186
.0619

.0653
.0262
$1.3242-
.0523
$1.3765

.0812
.0330

9PI I
.0617
_0*19Q

f .05 0 A
!k 177461 0580I"
'L 5T376A~rZ ~ ~- ~ .*.. .-

*913038
.0752
nAAP

0I .ZZ4
.0632
r\AfQ

1 .Z574
.0776
n ii

$1.2512
.0637
rr A j r

$1.2923
.0760

.0672

S1.4436

*u-c

.1037 132- -5 flA .1 'O .
,, I

$1.4464

'41 4w'Jr'

$1.5328

SI33 A
0866A

$1.4192

* I .OQI

$1.5000

AA 1

$1.4022

nI.MO

$1.4794

I.

-
r

.0524
.0104
.0637

and selling single-strength unsweetened juices for 1956-57 are shown in Table 3.

Table 3.--Variations in Cost for Processing, Warehousing, and Selling Florida
Citrus Fruit Juices, Excluding Sugar, by Type of Product and Case
Size, 15 Firms, 1956-57 Season

Cost per Orange Juice Grapefruit Juce :Blended Juice Tangerine Juice.
Case 24/2 12/46 24/2 12/46 24/2 12/46 24/2 12/46
S---------- -Number of firms------------------
Under $1.30 3 0 2 0 2 0 0 0
$1.30-1.34 5 1 6 2 6 1 2 0
1.35 1 39 3. 7 3 4 3 6 2 2
1.40-1.44 3 2 3 4 3 3 2 1
1.45 and over 1 5 1 5 1 5 1 5
Total number
of firms 15 15 15 15 15 15 7 8

In Table 4 are shown the variations in cost among firms for processing and ware-

housing unsweetened citrus juices, exclusive of administrative, sailing, and "other costs".

Table 4.--Variations in Cost for Processing and Warehousing Florida Citrus Fruit Juices,
Excluding Administrative, Selling, Sugar, and Other Costs, by Type of Prod-
uct and Case Size, 15 Firms, 1956-57 Season

Cost per Oranpp Juice Graoefruit Juice Blended Juice Tangerine Juice
Case 24/2 12/46 24/2 12/46 24/2 12/46 24/2 12/46
-- ----------- Number of firms ---------------
Under $1.20 2 1 4 1 3 1 1 0
$1.20 1.24 4 2 5 4 5 4 1 2
1.25-1.29 5 5 3 5 3 5 3 2
1.30-1.34 3 3 2 2 3 2 1 1
1.35 and over 1 4 1 3 1 3 1 3
Total number
of firms 15 15 15 15 15 15 7 8

Volume and Cost

The 15 firms processing single-strength juice were divided into two groups on the

basis of total volume processed. Eight firms processed fewer than 1,500,000 cases,

and seven firms more than 1,500,000 cases each. Average per-firm volumes for each

kind of juice are detailed in Table 5.

A comparison of average costs of processing and selling unsweetened juices in

12/46 cases reveals a cost difference between those firms handling over 1,500,000

cases and those handling under 1,500, 000 cases of about one to nearly seven cents

per case as follows:

Size Group Orange Juice Grapefruit Juice Blended Juice Tangerine Juice
--- - -cost per 12/46 case, unsweetened - -
Under 1,500, 000
cases $1.4078 $1.4143 $1.3941 $1.4896
1,500,000 cases
and over 1.3685 1.3950 1.3840 1.4234
Difference $0,0393 $0.0193 $0.0101 $0.0662

Total costs per 12/46 case including sugar, for those firms handling over 1,500,000

cases were lower than for those handling fewer than 1,500, 000 cases for single-strength

orange and tangerine juice. This did not hold for grapefruit and blended juices which

showed the larger volume firms with sweetened products costs slightly higher than smaller

volume firms as follows:

Size Group Orange Juice Grapefruit Juice Blended Juice Tangerine Juice
S- - cost per 12/46 case, sweetened - -
Under 1,500,000
cases $1.4713 $1.5315 $1.4917 $1.5537
1,500,000 cases
and over 1.4367 1.5338 1.5017 1.4761
Difference $0.0346 ($0.0023) ($0.0100) $0.0776

Table 5.--Volume and Cost of Processing, Warehousing, and Sailing Florida Citrus Fruit Juices in 12/46 Cases, 1956-57 Season

Product Orange Juice Grapefruit Juice Blended Juice Tangerine Juice
Under 1,i 00,000 Under 0,000 r 1,500,000 Undndr 1,500,0000
Volume, cases 1, S,000 and over 1,500,000 and over 1,500,000 and over 1,500,000 and over
Number offirms 8 7 8 7 8 7 3 5
Cases per firm 192,247 861 595 213 446 650,430 70 994 311 018 5,477 70,962
Cost per case:
Material:

Cans
Cartons
Labels, etc.
Total material
Labor:

Direct
Indirect
Warehousing and shipping

Total labor

$0.8083
.1153
.0532

A0t

$0.8004
.1053
.0535

$0.8131
.1152
nO?5A

$0.8046
.1079
n0A5r

$0.8005
.1133
n1ciA

$0.8059
.1067

$0.7978
.1100

$0.7876
.1071

.0690
.0154
.0648

--,'4 .... -- "... .0131 .0059 .0598
$0.1492 $0.1a96 $n o ,n .O .)4 5 9 .

.0579
.0123

.0675
.0183
M1A7

.0591-
.0132
n7no

.0700
.0150
nL n

$0 6.y5

.0583
.0131
ft"W

$0.y534

.0646
.0309

$0.9452

.0905
.0181

Other manufacturing: ..-. u Vu. 144 P0.209 $0.1684
Power, light, and water .0237 .0236 .0211 0248 .020 .0247 .03160237
Maintenance, bldg., equip. .0251 .0223 .0230 .0252 .0248 .0227 .0353 .0363
Royalties .0554 .0482 .0276 .0295 .0393 .0352 .0634 .0549
Depreciation .0241 .0138 .0229 .016 .0251 .0152 .0292 .0163
Manufacturing overhead .0148 .0080 .0170 .0086 .0166 .0084 .0197 .0098
Warehousing 0237 2 .0170 *08 .0166 *0084 197 0098
WMiehousing .0237 .0285 .0231 .0262 .0233 .0266 .0166 .0276
Misc. expense .0127 .0081 .0123 .098 0120 0095 .0176 .0066
Total other mfg. exp. $0.1795 $0.1525 $0.1470 so.405 $0.1641 $0 0006
Total processing1423 $0.2134 o.1752
and warehousing $1.3055 $1.2513 $1.2772 $1.2487 $1.2783 $1.2520 $1.3677 $1.2888

dminitrati nd selling .0686 .0844 .0681 .0778 .0638 .0812 .0662 .0765
Other costs .0337 .0328 .0690 .068550 055
Cost unsweetened i0690.407R f U .050 .0557 n

Sugar

Total Cost

0 i .1414 1.3950 $1.3941 $1.3840 $1.4896 $1.4234
.0635 .0682 1172 .1388 .0976 .1177 .0641 .0527
$1.4713 1.4367 $1.5315 $1.5338 1.4917 $1.5017 $1.5537 $1.4761

_~~ _~~__~~

~~~~ ___~_

_ __ ____

`---1-11-~---1--__~_~_____
-----I_-----~

-~-~-~-

---~-~ ~

Differences between large and small volume firms in costs of processing, warehousing

and selling sweetened Florida citrus fruit juices in 12/46 cases are shown in Table 5.

These cost differences are small. With the exception of sugar costs and administrative

and selling costs large volume firms show some advantage in major cost categories with

few exceptions. The cost variation within groups, shown in the following summary for

single-strength unsweetened orange juice in 12/46 cases, illustrates the advantage of the

larger volume operations as reflected in lower costs:

Cost per case Under 1,500,000 cases 1,500,000 cases and over

Under $1.35 3 1
$1.35 -$1.45 2 5
Over $1.45 3 1

Cost of Processing Citrus Sections

The average costs of processing, warehousing, and selling grapefruit sections continued

the upward trend which has characterized five of the past six seasons. The following costs

for grapefruit sections show these trends:

Type of Container
Season 12/46 24/30
1951-52 .... $2.19
1952-53 .... 2.23
1953-54 .... 2.33
1954-55 $3.03 2.23
1955-56 3.07 2.34
1956-57a 3.23 2.48

a1956-57 costs are based on data from 13 firms as compared with 12 firms for 1955-56
costs, and include data from 2 plants not included in the 1955-56 sample. See text for
further explanation.

Average costs for grapefruit sections in 24/303 cases show practically no effect as a

result of changes in size and composition of sample firms. Average 1956-57 costs for

the 11 firms included in both the 1955-56 and 1956-57 samples are almost identical

with the 13 firm average for this year.

Production of the 12/46 case size of grapefruit sections, introduced in the 1954-55

report for the first time, showed a continued per-firm increase in 1956-57, while prod-

uction of 24/2's was reported by only one of the 13 firms producing sections. Table 6

carries a breakdown of major cost items for the most popular case sizes and fruit packs of

citrus sections. In all but one major cost category (administrative and selling) average

costs have increased over the previous season.

Table 6.--Cost of Processing, Warehousing, and Selling Florida Citrus Sections,
1956-57 Season

Product Grapefruit Sections Salad Sections
Type of container 24/303 12/46 24/303
Number of firms 13 9 10
Cases per firm 221 082 57,515 28,568

Cost per case:
Material:
Cans
Cartons
Labels, etc.
Total material
Labor:
Direct
Indirect
Warehousing and shipping
Total labor
Other manufacturing
Total processing and
warehousing
Administrative and selling
Other costs
Sugar
Total Cost

$0.7703
.0840
.0496
$0.9039

.9673
.0369
.0608
$1.0650
.1805

$2.1494
.0837
.0469
.2044
$2.4844

$0.8096
.1109
.0460
$0.9665

1.3374
.0463
.0662
$1.4499
.3175

$2.7339
.1057
.0706
.3206
$3.2308

$0.7539
.0811
.0479
$0.8829

1.3922
.0390
.0603
$1.4915
.2046

$2.5790
.0863
.0419
.1904
$2.8976

I II

II

_ __

---

*

*

Cost of Processing Frozen Orange Concentrate

The average cost of processing and warehousing frozen orange concentrate during

the 1956-57 season for the 13 plants cooperating in this study was slightly over 37 cents

per gallon, as shown in Table 7.

Table 7.--Cost per Gallon of Processing, and Warehousing Frozen Orange Concentrate,
Excluding the Cost of Cans, Cartons, and Selling, 13 Florida Plants,
1956-57 Season

Gallons per Plant

Cost per gallon:
Labor:
Direct
Indirect
Warehousing and shipping
Total labor
Other manufacturing:
Power, light, and water
Maintenance, building and equipment
Royalties
Depreciation
Manufacturing overhead
Warehousing
Miscellaneous expense
Total other manufacturing expense
Administration
Other costs
Total cost

Frozen Orange Concentrate
3,578,093

$0.0633
.0171
.0203
$0.1007

.0481
.0216
.0301
.0361
.0122
.0232
.0113
$0.1826
.0462
.0410
$0.3705

These costs are based on records of 13 plants and constitute 65 percent of Florida's

total 1956-57 production. Of the 13 plants represented, eight were included in the

sample for 1955-56. That sample included 9 plants responsible for 42 percent of Florida's

total production.

The additional coverage for the 1956-57 season has resulted in an average cost

figure which can be assumed to be more typical of braod industry operations. However,

with the substantial changes in sample size and composition necessary to achieve

broader coverage, some comparability between 1956-57 costs and costs for prior years

has been sacrificed. For example, if average costs per gallon are compared for the

8 plants included in the 1955-56 and 1956-57 season's samples, the results would appear

as follows:

Cost per gallon
(excluding cans, cartons, Change in Cost
and selling) 1955-56 1956-57 from 1955-56

Identical 8 plants $0.3465 $0.3343 -$0.0122

These data show an actual decrease in cost of production. Had data been available

for the past two seasons for. all 13 plants included in this report, 1955-56 costs might

well have been more than 37 cents per gallon. Interpretation of cost relationships for

recent years should be made with due consideration for broader coverage of the 1956-

57 sample. The following nine-year record shows average per gallon costs:

Season Frozen Orange Concentrate
S- Cost per gallon -
1948-49 $0.465
1949-50 .451
1950-51 .346
1951-52 .326
1952-53 .372
1953-54 .340
1954-55 .328
1955-56 .341
1956-570 .371

a1956-57 costs are based on data from 13 plants as compared with nine plants for 1955-
56 costs, and include data from five plants not included in the 1955-56 sample. See text
for further explanation.

Table 8 lists detailed costs in the major categories for frozen orange concentrate for

three popular container sizes--48/6, 24/12, and 12/32. Container cost is included,

selling omitted.

Table 8.--Type of Container and Cost of Processing and Warehousing Florida Frozen
Orange Concentrate, Excluding Selling, 1956-57 Season

Type of Container
Number of firms
Cases per firm

Cost per case:
Material:
Cans
Cartons
Total material
Labor:
Direct
Indirect
Warehousing and shipping
Total labor
Other manufacturing:
Power, light and water
Maintenance, bldg. and equipment
Royalties
Depreciation
Manufacturing overhead
Warehousing
Miscellaneous expense
Total other mfg. expense
Total processing and warehousing
Administrative
Other costs
Total cost

48/6
11
1 1.221.415

$1.0066
.0710
$1.0776

.1469
.0421
.0490
$0.2380

.1100
.0494
.0658
.0814
.0278
.0524
.0262
$0.4130
$1.7286
.1113
.1075
$1.9474

24/12
9
263.050

$0.7407
.0763
$0.8170

.1204
.0250
.0396
$0.1850

.1159
.0483
.0690
.0807
.0205
.0553
.0257
$0.4154
$1.4174
.0826
.0646
$1.5646

12/32
9
106,028

$0.6293
.0882
$0.7175

.1788
.0346
.0496
$0.2630

.1546
.0615
.0958
.1182
.0256
.0655
.0328
$0.5540
$1.5345
.1118
.0035
$1.7298

The 48/6 and 24/12 cases each contain approximately the same net volume, which is

25 percent less than that contained in a case of 12/32's. Therefore, for an equivalent

volume (basis 48/6) the 1956-57 costs compared as follows with those for 1955-56:

i ll l II I

..... I

I
I II

I I I I I I
I

-- --

I.

I

I I .....
III I I I I

Type of Container 1956-57a 1955-56 Difference

48/6 $1.95 $1.81 +$0.14
12/32 (48/6 basis) 1.30 1.34 0.04
24/12 (48/6 basis) 1.56 1.53 + 0.03

01955-56 costs for the case sizes shown are based on data for 7 plants. All of these
plants are included in these case size data for the 1956-57 season. See text for further
explanation.

In view of the increase in sample size affecting the 1956-57 data, the above comparison

should be considered carefully.

Average cost for 48/6 cases in 1956-57 for the same 7 firms included in last year's

sample are $1.8461 or approximately four cents higher while average costs for 12/32

cases are $1.7673 or approximately two cents lower than in 1955-56. On an equivalent

volume (basis 48/6) frozen orange juice concentrate in 12/32 cases would show a cost

of $1.3255 or two cents lower than in 1955-56.

Definition of Terms

COST PER FIRM

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

PROCESSING OPERATIONS

Blended Juice: A mixture of orange and grapefruit juices, with the proportion of
each varying from 60-40 to 40-60 percent.

Cases per firm: Number of cases processed.

Containers:

Kind Cans per case Size of can
24/2 24 18-ounce
12/32 12 32-ounce
12/404 or 12/46 12 46-ounce
24/12 24 12-ounce
48/6 48 6-ounce
24/303 24 15-ounce

Cost items:

Material: Cans, cartons, labels, adhesives, freight on material.

Labor: Plant and warehouse labor, supervision, mechanic, watchman, payroll
taxes, workmen's compensation insurance.

Other manufacturing: Depreciation, repairs and maintenance of building and
machinery, power, lights, water, fuel, royalties, insurance, taxes,
miscellaneous supplies, other operating expense, warehouse expense
other than labor,
Administrative: Management and office salaries, office supplies, and expenses,
auto and travel, operating interest, telephone and telegraph, legal and
audit,dues, subscriptions, other administrative expense.
Soiling: Salaries of salesmen and others, advertising other plant selling costs.
Brokerage, discounts and allowances are omitted.
Total cost: The cost, excluding sugar, of processing, administration and selling.
When given, the cost of sugar is the average for those firms that produced
sweetened juices, sections and salads.

	Title Page
	Foreword
	Cost of processing single-strength...
	Cost of processing citrus...
	Cost of processing forzen orange...
	Definitions of terms