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COSTS OF PROCESSING, WAREHOUSING AND SELLING
FLORIDA CITRUS PRODUCTS, 1966-67 SEASON

by
A. H. Spurlock

CONTENTS
Page

Introduction ................................................... 1

Single-Strength Juice........................................... 3

Canned Sections and Chilled Citrus Products...................... 9

Frozen Orange Concentrate..........*...... ................*.. 14

Citrus By-Products.......................... ........ ....... 18

Introduction

Fifteen citrus processing firms cooperated in the study for the

1966-67 season. These firms processed 21,797,000 cases of 24/2 equiva-

lent canned single-strength juices, 2,853,000 cases of 24/2 equivalent

canned sections, and 76,937,040 gallons of frozen orange concentrate.

The firms in the sample produced about 61 percent of the Florida output

of canned juices, 55 percent of the canned sections and 60 percent of

the frozen orange concentrate.1

Data for single-strength juice were based on records of 10 firms;

for canned sections on 8 firms; and for concentrates 13 firms. Only

6 of the 15 firms in the sample produced juices, sections and concen-

trates.

1/ Calculated from data in the Statistical Summary, Season of
1966-67, Florida Canners Association. Winter Haven. Florida.

1

The summaries following contain only the costs for plant opera-

tion, warehousing and selling the finished products. Fruit cost is

not included.

These data represent estimates of industry costs. Year-to-year

changes in these estimates may result both from changes in plant

operating conditions and changes in the sample. All of the costs shown

in this summary are weighted averages. The cost for each firm for a

given pack is weighted by the volume packed. This tends to place the

average cost nearer the cost for the firms with the larger pack of that

product than would occur if a simple average were used. This also

explains some of the differences shown in cost of identical items for

various products. For example, in Table 2 can costs for size 12/46

orange juice averaged $0.9591 per case, and for tangerine juice $0.9608;

yet cans are identical for each pack. Such differences may be caused

by a change in the number of firms averaged or in a shift in the

volume weight of the firms included in each group.

Detailed cost data were combined into several major cost cate-

gories for each product and each can size to give a total cost, unsweetened.

Sugar cost was then added, if the product is commonly sweetened, to

give a total cost sweetened. The sugar cost shown is the average rate

per case for those cases sweetened.

Selling costs include brokerage as well as the firm's own sales

department expense--sales salaries, telephone and telegraph, office

expense, travel and advertising. The detailed tables show brokerage as

a separate item, since it was not included prior to 1961-62. Discounts,

allowances and brand royalties have been omitted.

Costs of Processing Single-Strength Juices

Average costs of processing, warehousing and selling single-

strength juices in cases of 12/46 ounce cans, excluding the cost of

sugar, are shown for the past 20 years in Table 1. The cost trend

over this period has been definitely upward be declined slightly from

the trend in several years of the period. Costs in 1962-63 and

1963-64 were affected by the reduced volume of citrus available for

processing. The cost was lowered in 1964-65, with operations nearer

normal, but was still higher than in any season before the 1962 freeze.

Table l.--Average Cost of Processing, Warehousing and Selling Florida
Citrus Juices, Excluding Sugar, in 12/46 Ounce Cases, 1947-48
Through 1966-67 Seasons

Orange
Juice
$1.09
1.17
1.21
1.24
1.30
1.35
1.26
1.27
1.32
1.38
1.48
1.47
1.52
1.59
1.57
1.79
1.78
1.66
1.75
1.72
Costs include brokerage
years.

Grapefruit Blended T
Juice Juice
$1.09 $1.09
1.17 1.15
1.19 1.19
1.23 1.23
1.31 1.31
1.35 1.34
1.26 1.26
1.27 1.28
1.33 1.33
1.40 1.39
1.50 1.49
1.47 1.48
1.50 1.50
1.57 1.58
1.54 1.55
1.72 1.74
1.72 1.75
1.62 1.64
1.70 1.74
1.68 1.70
ge in selling expense, which was

Season
1947-48
1948-49
1949-50
1950-51
1951-52
1952-53
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62a
1962-63a
1963-64a
1964-65a
1965-66a
1966-67a
i/
in prior

angerine
Juice
$---

1.24
1.24
1.32
1.39
1.29
1.33
1.33
1.43
1.47
1.51
1.52
1.57
1.55
1.70
1.75
1.65
1.72
1.69
omitted

I

I,

Total costs per case for unsweetened orange juice, 12/46 were

2.2 percent less than in 1965-66. Materials cost increased 0.5 percent

and labor 8.5 percent, but most other groups were significantly lower.

A comparison of the change among the principal cost categories

for the past two seasons is as follows:

Orange Juice, 12/46 (Excluding Sugar)
Cost Per Case :Change in Cost :Percent
Cost Group 1965-66 : 1966-67 : From 1965-66 :Change

Materials $1.1174 $1.1226 $0.0052 0.5
Processing, labor,
taxes,insurance .1182 .1283 .0101 8.5
Other manufacturing exp. .1526 .1283 -.0243 -15.9
Warehousing labor & exp. .0934 .0952 .0018 1.9

Administrative & selling .1510 .1203 -.0307 -20.3
Other costs .1221 .1213 -.0008 0.7
Total nonsweet $1.7547 $1.7160 -$0.0387 -2.2

The costs of processing and selling citrus juices unsweetened in

12/46 cases were about 6 or 8 cents per case higher than for 24/2

cases in 1966-67. However, for an equivalent volume of juice, the

costs for 12/46 cases were 28 cents per case lower than for 24/2 cases.

The comparative costs for packing an equivalent 24/2 quantity of juice

in both can sizes for 1966-67 were as follows:

Orange Grapefruit Blended
Item Juice Juice Juice
Cost per 24/2 case $1.6467 $1.6178 $1.6366
Cost per 24/2 equivalent
in 12/46 case 1.3630 1.3321 1.3528
Difference $0.2837 $0.2857 $0.2838

Difference in 1965-66 $0.2589 $0.2620 $0.2570

Itemized costs of processing single-strength juices in the most

popular can sizes for the 1966-67 season are shown in Table 2.

Variations in Cost.-- Variations among plants in the total cost

of processing, warehousing and selling single-strength unsweetened

juices for 1966-67 are shown in Table 3.

In Table 4 are shown the variations in cost among plants for

processing and warehousing unsweetened citrus juices, exclusive of

administrative, selling and other costs. These costs represent only

the manufacturing and warehousing expenses--materials, labor and

plant costs.

Table 2. Cost Per Case by Container Size for Processing, Warehousing and
Selling Florida Citrus Fruit Juices, 10 Plants, 1966-67 Season

Product 'Orange Juice. Tangerine
I _Juice
Container Size 24/2 12/46 48/6 12/46

Number of Plants 10 10 9 6
Number of Cases Per Plant 103,738 525,040 145,226 17,723

Cost Per Case

Materials:
Cans
Cartons
Labels
Total materials

Manufacturing labor:
Direct
Indirect
Payroll taxes and insurance
Total manufacturing labor FS
taxes.
Other manufacturing:
Power, lights, water
Maintenance, bldgs. & equipme
Depreciation
Royalties
Taxes, insurance, rent
Miscellaneous expense
Total other manufacturing
Total manufacturing expense

Warehouse expense:
Warehouse & shipping labor &
Other warehouse expense
Total warehouse ex pnse
Administrative expense a-

Selling expense:
Brokerage b
Other selling expense -
Total selling expense

Other expense:
Advertising taxes & inspection
Other (int.,misc.deductions)
Total other expense

Total cost unsweetened
Sugar

$0.9924
.0883
-f92Q

$0.9591
.0991
0-4fi4&

$1.0892
.0645
f -

$0.9608
.0979
.0671

$1.1499 $1.1226 $1.1537 $1.1258

$0.0742 $0.0827 $0.0518 $0.1064
.0275 .0323 .0156 .0263
.0116 .0133 .0073 .0145
0.1133 $6.1283 $o.0747 $0.1472

$0.0141 $0.0182 $0.0099 $0.0164
nt .0172 .0228 .0103 .0233
.0148 .0202 .0078 .0176
.0326 .0426 .0215 .0691
.0064 .0083 .0039 .0082
.0137 .0162 .0081 .0171
$0.0988 $0.1283 $0.0615 $0.1517
$1.3620 $1.3792 $1.2899 $1.4247

taxes$0.0507 $0.0568 $0.0372 $0.0500
.0357 .0384 .0281 .0333
$0.0864 $0.0952 $0.0653 $0.0833
$0.0325 $0.0401 $0.0250 $0.0393

$0.0480 $0.0544 $0.0309 $0.0412
.0205 .0258 .0125 .0148
$0.0685 $0.0802 $0.0434 $0.0560

n $0.0807 $0.1004 $0.0566 $0.0711
.0166 .0209 .0089 .0146
$0.0973 $0.1213 $0.0655 $0.0857

$1.6467 $1.17160 $1.4891 $1.6890
.0420 .0537 .0268 .1010

Total cost sweetened $.6887 1.7697 1.)159 1.I9U!
a/ Includes management and office salaries, telephone, travel, office expense.
h/ Includes sales salaries, telephone, advertising, travel, but excludes brand
royalties, discounts, allowances.

0

Table 2 Cont. -- Cost Per Case by Container Size for Processing, Warehousing and
Selling Florida Citrus Fruit Juices, 10. Plants, 1966-67 Season
I i

Product

container Size

24/2

Grapefruit Juice

12/46

48/6

Blended
Juice

12/i

Number of Plants 9 9 8 9
Number of cases Per Plant 132,771 731,284 160,889 178,
Cost Per Case

Materials:
Cans
Cartons
Labels
Total materials

46

764

$0.9947 $0.9601 $1.0940 $0.9608
.0882 .0980 .0647 .0968
.0692 .0660 -- .0665
$1.1521 $1.1241 $1.1587 $1.1241

Manufacturing labor: $
Direct $0.0737 $0.0840 0.0452 $0.0876
Indirect .0268 .0330 .0131 .0326
Payroll taxes & insurance .0116 .0134 .0063 .0139
Total manufacturing labor & talxei .1 j2i .1304 $.646$....41-

Other manufacturing:
Power, lights, water
Maintenance, bldgs. & equipment
Depreciation
Royalties
Taxes, insurance, rent
Miscellaneous expense
Total other manufacturing
Total manufacturing expense

$0.0146 $0.0181 $0.0100 $0.0189
.0201 .0239 .0107 .0262
.0167 .0211 .0080 .0217
.0218 .0293 .0157 .0353
.0056 .0075 .0036 .0070
.0142 .0165 .0079 0173
$0.0930 40.1164 $0.0559 $6.1264
$1.3572 $1.3709 1.2792 $1.3846

Warehouse expense: $ 1
Warehouse & shipping labor & taxes$O.0488 $0.0544 $0.0379 $.0512
Other warehouse expense .0347 .0385 .0279 .0365
Total warehouse expense 0.0835 $0.0929 50.0658 0.0877
Administrative expense a O.0300 $0.0406 0.0251 $0.0380

Selling expense:
Brokerage /
Other selling -
Total selling expense

Other expense:
Advertising taxes & inspection
Other (int,misc. deductions)
Total other expense

Total cost unsweetened
Sugar
Total cost sweetened

$0.0484 $0.0493 $0.0269 $0.0616
.0124 .0152 .0098 .0194
0.0608 40.0645 $0.0367 $0.0810--

$0.0706 $0.0877 $0.0456 $0.0937
.0157 .0205 .0087 .0182
0.0863 0.1082 $0.0543 $0.1119

$1.6178
i 0 a.

$1.6771
1 7&

$1.4611
0O660

$1.7032
.1035

*107 .0' 1~I QI '~

Includes management 4nd office salaries, telephone, travel, office expense.
Includes sales salaries, telephone, advertising, travel, but excludes brand
royalties, discounts, allowances#

S1.5271/

h1 1i11

r

SLOUVO

1_04n5

Table 3. -- Variations in Cost for Processing, Warehousing and Selling Florida
Citrus Fruit Juices, Excluding Sugar, by Type of Product and Case Size
1.0 Firms, 1966-67 Season

Grapefruit Blended Tangerine
Cost Per Case Orange Juice Juice Juice Juice

24/2 12/46 48/6 24/2 12/46 12/46 12/46

Number of Firms

$1.40 $1.44 0 0 1 0 0 0 0
1.45 1.49 0 0 1 0 0 0 0
1.50 1.54 1 0 4 2 0 0 0
1.55 1.59 2 0 2 1 1 1 1
1.60 1.64 2 2 1 3 1 1 0
1.65 1.69 3 2 0 3 3 1 2
1.70 1.74 2 2 0 0 2 4 2
1.75 1.79 0 2 0 0 2 1 1
1.80 1.84 0 2 0 0 0 1 0

Total number
of firms 10 10 9 9 9 9 6

Table 4. -- Variations in Cost for Processing and Warehousing Florida Citrus
Fruit Juices, Excluding Sugar, Administrative, Selling and Other Costs,
by Type of Product and Case Size, 10 Firms, 1966-67 Season

Grapefruit Blended Tangerine
Cost Per Case Orange Juice Juice Juice Juice

24/2 12/46 48/6 24/2 12/46 12/46 12/46

$1.25
1.30
1.35
1.40
1.45
1.50

Number of Firms
1 0
2 2
5 4

$1.29
1.34
1.39
1.44
1.49
1.54

Total number
of firms

9 9 9

9 6

10 10

Costs of Processing Canned Sections and
Chilled Citrus Products

The trend in the total cost of processing, warehousing and selling
canned grapefruit sections and citrus salad for a number of years is shown
in Table 5. The cost of pineapples and cherries, if used, is omitted from
chilled grapefruit sections.

Table 5. -- Average Cost of Processing, Warehousing and Selling Flvrida Grape-
fruit and Salad Sections by Can Size, 1966-67 Season

Canned Grapefruit Canned Citrus Chilled Grapefruit
Season Sections Salad Sections
12/46 24/303 24/303 12/32

1951-52 $ -- $2.19 $2.48 $ --
1952-53 -- 2.23 2.49
1953-54 -- 2.33 2.60 --
1954-55 3.03 2.23 2.50 --
1955-56 3.07 2.34 2.72 --
1956-57 3.23 2.48 2.90 --
1957-58 3.41 2.60 3.09 --
1958-59 3.39 2.56 2.96 --
1959-60 3.53 2.54 2.99 --
1960-61 3.79 2.64 3.03 --
1961-62-/' 3.86 2,67 3.22 --
1962-63.9/ 4.27 3.04 3.58 --
1963-64. 4.29 3.01 3.44 3.30
1964-65 a/ 3.98 2.94 3.39 3.09
1265-66 4.01 2.94 3.40 3.17
1966-67 4.02 3.00 3.36 3.00

a/ Costs include brokerage
years. Brokerage for 1966-67 is

in selling expense which was omitted
shown separately in Tables 6 and 8.

In Table 6 a summary of costs is shown for several can sizes of processed
sections.
Cost summaries have also been prepared for several packs of chilled sections
and salad in Tables 7 and 8, and for chilled orange juice and grapefruit juice
in glass (Table 9). These summaries are based on a smaller number of firms
than for most products shown and, therefore, have the weaknesses inherent in
averaging a small group.

in prior

Table 6.--Costs of Processing, Warehousing and Selling Florida Canned Citrus
Sections, 1966-67 Season

Canned Grapefruit Canned Citrus
Product Sections Salad

Container Sie 24/303 12/46 24/303 12/46
Number of Plants 8 6 7 5
Number of Cases Per Plant 272,624 83,038 23,019 8 815
Cost Per Case

Materials:
Cans
Cartons
Labels
Total materials
Labor:
Direct--peeling
sectionizing
other direct
Total direct labor
Indirect labor
Payroll taxes and insurance
Total manufacturing labor & taxes
Other manufacturing:
Power, lights, water
Maintenance, bldgs. & equipment
Depreciation
Royalties
Taxes, insurance, rent
Miscellaneous expense
Total other manufacturing
Total manufacturing expense

Warehouse expense:
Warehouse & shipping labor & taxes
Other warehouse expense
Total warehouse expense
a/
Administrative expense -
Selling expense:
Brokerage b/
Other selling expense -
Total selling expense
Other expense:
Advertising taxes & inspection
Other (interest,misc.,deductions)
Total other expense
Total cost unsweetened
Sugar
Total cost sweetened

$0.8479
.0792
.0647
$0.9918

$0.2593
.5961
.2517
$1.1071
.0464
.1498
$1.3033

$0.0488
.0480
.0355
.0665
.0153
.0288
$0.2429
$2.5380

$0.0504
.0412
$0.0916

$0.9546
.1026
.0558
$1.1130

$0.2418
.9513
.3490
$1.5421
.0576
.2198
$1.8195

$0.0749
.0785
.0465
.1346
.0302
.0482
$0.4129
$3.3454

$0.0607
.0410
$0.1017

$0.8448 $0.9576
.0794 .1043
.0622 .0589
$0.9864 $1.1208

$0.4032
.7036
.2825
$1.3893
.0466
.1810
$1.6169

$0.0476
.0502
.0430
.0839
.0149
.0235
$0.2631
S2.8664

$0.0569
.0401
$0.0970

$0.0346 $0.0651 $0.0384

$0.3735
1.2365
.4351
$2.0451
.0544
.2714
$2.3709

$0.0680
.0692
.0527
.1709
.0297
.0513
$0.4418
$3.9335

$0.0553
.0398
$0.0951
$0.0763

$0.0573 $0.0738 $0.0637 $0.0741
.0180 .0277 .0219 .0301
$0.0753 $0.1015 $0.0856 $0.1042

$0.0535
A)Ain.

$0.0866
n'24A

$0.0648
Al <

$0.0997
.0174

.V1t .
l,

.073IJ97 $.yv --

$2.8134
.1894
$3.0028

$3.7237
.2968
$4.0205

$3.1680
.1937
$3.3617

$4.3262
.3057
$4.6319

a/ Includes management and office salaries, office expense, telephone, and travel.
b/ Includes sales. salaries, telephone, advertising, travel, but excludes brand
royalties, discounts, allowances.

U. 1L I.L

n 11 n

fl 0IXl th

n

I

L I

--

--

fi

I

II I

II
IL

II--

n ii L J I

---

---

----- ---- ~

Table 7.-- Costs of Processing, Warehousing and Selling Florida Chilled
Salad, 1966-67 Season

Product Chilled Salad-
Container Size 4/1 gal. 12/32 oz. 12/16 oz.

Number oz Plants
P- l nt

174.097 44,133

Materials--containers
Labor:
Direct--peeling
sectionizing
other direct
Total direct labor
Indirect labor
Payroll taxes & insurance
Total manufacturing labor &
Other manufacturing:
Power, lights, water
Maintenance,bldgs.,& equipment
Depreciation
Royalties
Taxes, insurance, rent
MioaloanfeoUs expense
Total other manufacturing

taxes

Total manufacturing expense
Warehouse expense:
Warehouse & shipping labor & taxes
Other warehouse expense
Total warehouse expense
Administrativea
Selling expense:
Brokerage
Other selling expenseb
Total selling expense
Other expense:
Advertising taxes and inspection
Other (interest, misc.,deductions)
Total other expense
Total cost unsweetened

Sugar .0895 .0891 .0436
Pineapple, cherries .7169 .1727 .0856
Total cost sweetened .....-_ $5.0464 3.6284 $2.0952.

a/ Includes management and office salaries, office expense, telephone
and travel.
b/ Includes sales salaries, telephone, advertising, travel, but excludes
brand royalties, discounts, allowances.

Number Io. cas e-L rm"- -a -

Cost per Case
J0.8971 $0.8855 $0.6798

$0.3158 $0.2937 $0.1572
1.3465 .9106 .4532
.4021 .3100 .1572
$2.0644 $1.5143 $0.7676
.0817 .0650 .0330
.2766 .2148 .1082
$2.4227 $1.7941 $0.9088

$0.1051 $0.0655 $0.0329
.0572 .0491 .0240
.0604 .0497 .0249
.1323 .1075 .0527
.0274 .0181 .0090
.0310 .0365 .0177
$0.4134 $0.3264 $0.1612
$3.7332 $3.0060 $1.7498

$0.0561 $0.0459 $0.0385
.0567 .0446 .0381
$0.1128 $0.0905 $0.0766
$0.0565 $0.0383 $0.0205

$0.1181 $0.0780 $0.0420
.0537 .0426 .0218
$0.1718 $0.1206 $0.0638

$0.1060 $0.0722 $0.0362
.0597 .0390 .0191
$0.1657 $0.1112 $0.0553
$4.2400 $3.3666 $1.9660

51-748

Table 8.--Costs of Processing, Warehousing and Selling Florida Chilled Citrus
Sections, 1966-67 Season

Chilled Chilled
Product Grapefruit Sections Orange Sections

Container Size 4/1 gal. 12/32 oz 4/1 gal.
Number of Plants 3 3 3
Number of Cases Per Plant 18,611 24,636 20,893

Materials-- Containers
Labor:
Direct-peeling
sectionizing
other direct
Total direct labor
Indirect labor
Payroll taxes and insurance
Total manufacturing labor and taxes
Other manufacturing:
Power, lights, water
Maintenance, bldgs. and equipment
Depreciation
Royalties
Taxes, insurance, rent
Miscellaneous expense
Total other manufacturing
Total manufacturing expense
Warehouse expense:
Warehouse & shipping labor and taxes
Other warehouse expense
Total warehouse expense
Administrative expense --
Selling expense:
Brokerage b/
Other selling expense -
Total selling expense
Other expense:
Advertising taxes and inspection
Other (interest,misc. deductions)
Total other expense

Cost Per ase
$0.8960 $0.8862 $0.8960

$0.2984 $0.2466 $0.4435
.9822 .6463 1.3687
.3685 .2576 .4254
$1.6491 $1.1505 $2.2376
.0675 .0501 .0883
.2195 .1597 .2972
$1.9361 $1.3603 $2.6231

$0.1003
.0594
.0620
.1340
.0266
.0358
$0.4181

$0.0642
.0498
.0501
.0900
.0179
.0379
S0.3099

$0.1075
.0539
.0604
.1571
.0278
.0267
$0.4334

$3.2502 $2.5564 $3.9525

$0.0622 $0.0463 $0.0523
.0613 .0448 .0556
135 $0.0911 $0.1079

$0.0534 $0.0375 $0.0612

$0.1123 $0.0757 $0.1355
.0539 .0424 .0577
$0.1662 $0.1181 $0.1932

$0.0977 $0.0649 $0.1176
.0570 .0383 .0633
$0.1547 $0.1032 $0.1809
$2 &9063 4 49>f-Q57

Total cost unsweetened 3.*8 ..
Sugar .0998 .0962 .0781
Pineapples, cherries .0294 .1540 .0598
Total cost sweetened $3.8772 $3.1565 $4.6336

a/ Includes management and office salaries, office expense, telephone and travel.
b/ Includes sales salaries, telephone, advertising, travel, but excludes
brand royalties, discounts, allowances.

-I

IIIII

Table 9.--Costs of Processing, Warehousing and Selling Florida Chilled Citrus
Juices, 1966-67 Season

Chilled Chilled
Product ,
Orange Juice Grapefruit Juice

Container 12/32 6164 12/32
Number of Plants 6 4 5
Number of Cases Per Plant 489,977 596,234 77,910
Cost Per Case

Materials--containers (glass)
Manufacturing labor:
Direct
Indirect
Payroll taxes and insurance
Total manufacturing labor

and taxes

Other manufacturing:
Power, lights, water
Maintenance, bldgs. & equipment
Depreciation
Royalties
Taxes, insurance, rent
Miscellaneous expense
Total other manufacturing
Total manufacturing expense
Warehouse expense:
Warehouse and shipping labor & taxes
Other warehouse expense
Total warehouse expense
Administrative expense -1
Selling expense:
Brokerage /
Other selling expense -
Total selling expense
Other expense:
Advertising taxes and inspection
Other (interest, misc. deductions)
Total other expense
Total cost unsweetened
Sugar
Total cost sweetened

$0.8330 $0.7296 $0.8216

$0.0721 $0.0835 $0.0862
.0262 .0204 ,0238
.0114 0.121 .0130
$0.1097 $0.1160 $0.1230

$0.0216
.0240
.0329
.0277
.0100
.0170
$0.1332
$1.0759

$0.0379
.0410
SO. 0789

$0.0138
.0180
.0285
.0239
.0082
.0134
$0.1058
$0.9514

$0.0355
.0388
$0.0743

$0.0126
.0167
.0281
.0235
.0068
.0167
$0.1044
$1.0490

$0.0418
.0418
$0.0836

$0.0285 $0.0212 $0.0238

$0.0325 $0.0500 $0.0425
.0275 .0181 .0171
$0.0600 $0,0681 $0.0596

$0.0515 $0.0812 $0.0695
.0156 .0164 .0214
$0.0671 $0.0976 $0.0909
$1.3104 $1.2126 $1.3069
0 0 .0507
$1.3104 $1.2126 $1.3576

a/ Includes management and office salaries, telephone, travel, office expense.
]/ Includes sales salaries, telephone, advertising, travel, but excludes brand
royalties, discounts, allowances.

.... .

Costs of Processing Frozen Orange Concentrate

Costs for processing, warehousing and selling frozen orange concen-

trate for 1966-67 are shown for the three most common can sizes in Table

10. These three sizes accounted for 91 percent of the concentrate packed

in cases. "Multipak" cartons were used for less than two percent additional

in these sizes. "Multipak" costs differed from regular case packs principally

in the added carton costs, which were about $0.10 per case more for the

48/6 size. Labor costs also were increased by two or three cents per case.

The last column in TablelO showing costs per gallon of frozen orange

concentrate represents a conversion of all cases and bulk containers to

equivalent gallons of 45o Brix, excluding the cost of cans,cartons and

drums. While this cost includes packaging costs and some other items

which may be higher per gallon for cases than for drums or bulk containers,

it is not far different from the cost obtained by averaging the drum-

packed product. Many items of costs, excluding packaging materials are

allocated on a gallon basis. The labor cost per gallon averaged 2.2 cents

lower for bulk containers than for all containers including cases.

Table IQ--Costs of Processing, Warehousing and Selling Florida Frozen Orange
Concentrate, 450, 13 Firms, 1966-67 Season

48/6

Conta ner 48/6
IkUllLa.tLU*4 UCL- .
^ -nj -ii r i- *i -- ..- .....in.. .. i |- ^ iiiiin ~ m .iin i i 1 *iin im '' 3

24/12

Gallon

Number of r mU ... -- .. --....--
1 111 1 ... ,n- I

Pmrodurd Per Firm

954,675

622,807

S- 1 _-

Materials:
Cans (lithographed)
Cartons
Total materials
Manufacturing Labor:
Direct
Indirect
Payroll taxes & insurance
Total labor
Other Manufacturing:
Power, lights, water
Maintenance, bldgs.,& equipment
Depreciation
Royalties
Taxes, insurance, rent
Miscellaneous expense
Total other manufacturing
Total Manufacturing Expense
Warehouse Expense:
Warehouse labor, payroll tax,ins
Other warehouse expense
Total warehouse expense
Administrative Expensea

Selling Expense:
Brokerage
Other selling expense
Total selling dxpenseb

Cost Per Case

$0.9552 $0.6738 $0.5491
.0656 .0642 .0754 4
$1.0208 $0.7380 $0.6245

$0.1385 $0.1397 $0.1901
.0523 .0522 .0652
.0209 .0210 .0284
$0.2117 $0.2129 $0-2837

$0.0468 $0.0474 $0.0637
.0338 ,0341 .0474
.0539 .0541 .0639
.0749 .0751 .0982
.0193 .0187 .0205
.0472 .0455 .0513
90.2759 $0.2749 $0.3450

$1.5084

$1.2258

$1.2532

. $0.0369 $0.0397 $0.0506
.0664 .0681 .0886
$0.1053 $0.1078 $0.1392

$0.0766

$0.0399
.0536

An ninks

$0.0753

$0.0921

$0.0389 $0.0572
.0541 .0773
AO.0930 $0.1345

Other Expense: $.1082
Advertising tax & inspection $0.2499 $0.2486 $0.3204 $0.082
Other (int.,misc. deductions) .0326 .0356 .0273 .0133
Total other expense $0.2825 $0.2842 $0.3477 $0.1215
Total Costs $2.0663 $1.7861 $1.9667 $0.4557
a/ Includes management and office salaries, office expense, telephone
and travel.
b/ Excludes allowances, discounts, brand royalties.
c/ All packs converted to equivalent gallons, 450 Brix.

284,0U4

8,233
8,233

-

$0.0605
.0220
.0090
$ .0915

$0.0207
.0149
.0224
.0331
.0083
.0204
$0.1198-
$0.2113

$0.0173
.028/4
$0.0457
$0.0348

$0.0174

$0.0424

T------

1

yvvrr -r-~------ --- --1

I

12/3z

i C4 S

I

5'?9

The average cost per gallon for processing, warehousing and selling

frozen orange concentrate for the 1966-67 season was approximately 46

cents per gallon, 45 equivalent. The record for the past 19 years is

as follows:

Cost Per 420 Equivalent Number of Plants
Season Gallon (Excluding b in Sample
Packaging Materials)

1948-49 $0.465 5
1949-50 .451 8
1950-51 .346 9
1951-52 ( .326 7
1952-53 .372 9
1953-54 .340 10
1954-55 .328 10
1955-56 .341 9
1956-57 .371 13
1957-58 .461 15
1958-59 .407 16
1959-60 .428 14
1960-61 .433 18
1961-62 .407a 14
1962-63 .710a 18
1963-64 .684a 15
1964-65b .486a b 15
1965-66 .589a, 17
1966-67 .456a,b 13

a/ Includes selling; prior years do not.
b/ Costs 1965-66 and 1966-67 are for 450 concentrate.

17
Citrus By-Products

The 12 plants from which citrus by-product costs were obtained for
1966-67 manufactured 296,327 tons of citrus pulp and meal, 57,471 tons of
molasses and 2,838,209 pounds of cold pressed peel oil. The itemized costs
of producing pulp and meal, molasses and oil are shown in Table 11. These
are weighted average costs.
Ina 11 the by-products the direct costs of production represent a large
proportion of the total cost. Materials, labor and other manufacturing
expenses were about 78 percent of the total cost for feed; 90 percent for
molasses and 87 percent for peel oil. Warehouse expense was negligible for
molasses and oil. Bags, labor, fuel and power were the largest items of
cost in feed production.
Citrus feed averaged $21.63 per ton for all costs of manufacturing and
selling; molasses $12.00 per ton; and peel oil $0.1343 per pound (Table 11).
Variation in the total costs by firms for pulp and meal and for molasses
are shown in Table 12. Some of these variations are probably due to
different methods of allocating costs among the various by-products since
the firms do not have the same position or rank in the production of pulp
and of molasses.
Some of the variations are due also to individual items in the make-up
of total cost. In the production of pulp and meal, materials including
bags and twine varied from $4.02 per ton to $6.57 depending partly on whether
paper or burlap bags were used. Manufacturing labor, including payroll
taxes and workmen's compensation insurance, ranged from $2.70 to $6.85 per
ton; power, water, steam and fuel cost from $3.89 to $7.01 per ton; main-
tenance and repairs varied from $0.48 to $5.77 per ton; and depreciation
on buildings and equipment from $0.25 to $3.34.

Table 11.--Average Costs of Processing, Warehousing and Selling Florida Citrus
By-Products, 12 Plants, 1966-67 Season

Product Pulp and Meal Molasses Peel Oil
Number of Plants 12 5 5
Production Per Plant 24,694 tons 11,494 tons 567,642 lbs.
Cost Per Unit

Materials:
Drums
Bags and twine
Lime and other
Total materials
Manufacturing labor:
Direct
Indirect
Payroll taxes and insurance
Total manufacturing labor
Other manufacturing expense:
Power,steam, fuel
Maintenance and repairs
Depreciation
Taxes, insurance, rent
Misc. supplies and expense
Total other manufacturing
Total manufacturing expense
Warehouse expense:
Warehouse, labor, taxes, ins.
Other warehouse expense
Total warehouse expense
Administrative:
Salaries, incl. payroll tax & ins.
Other administrative
Total administrative expense
Selling expense:
Salaries, incl. payroll tax & ins.
Brokerage
Other selling expense
Total selling expense
a/
Other expense -a
Total cost per unit

$0.0151
""

$4.17
.54
$4.71

$0.0151

$2.22 $1.04 $0.0250
1.20 .61 .0146
.41 .17 .0039
$3.83 $1.82 $0.0435

$5.32 $6.10 $0.0158
1.40 1.15 .0141
.78 .87 .0141
.25 .17 .0040
.53 .67 .0098
$8.28 $8.96 $0.0578
$16.82 $10.78 $0.1164

$1.85 $0.04 $0.0004
.99 .02 .0002
$2.84 $0.06 $0.0006

$0.28 $0.27 $0.0008
.18 .17 .0005
$0.46 $0.44 $0.0013

$0.26 $0.14 $0.0047
.50 .38 .0079
.15 .08 .0026
$0.91 $0.60 $0.0152
$0.60 $0.12 $0.0008

$21.63

$12.00

$0.1343

_q Inspection taxes and miscellaneous other deductions.

I [ l j I i i I [

Table 12 .--Variation in Cost of Processing, Warehousing and Selling Citrus Feed
12 Plants, 1966-67 Season

Cost Per Ton Number of Plants

$18.00 $18,99 1
19.00 20.99 3
21.00 22.99 4
23.00 24,99 2
25.00 26,99 1
27.00 and over I

Total number of Plants 12

Range in cost per ton $18.78 $33.43

Other Mimeographed Publications Available on Citrus Costs
Department of Agricultural Economics
Florida Agricultural Experiment Stations
Institute of Food and Agricultural Sciences
Gainesville, Florida 32601

1. Costs of Packing and Selling Florida Fresh Citrus Fruits, 1966-67
Season. Agricultural Economics Mimeo Report EC 68-6. March 1968.

2. Costs of Picking and Hauling Florida Citrus Fruits. 1966-67 Season.
Agricultural Economics Mimeo Report EC 68-5. March 1968.

3. Thirty-Four Years of Citrus Production Costs and Returns in Florida,
1931-1965. Agricultural Extension Service Economic Series 67-1.
Jan. 1967.

4. Thirty-Five Years of Orange Production Costs and Returns in Florida,
1931-1966. Agricultural Extension Service Economic Series 67-3.
November 1967.

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/emh March 1968
Exp. Sta. Agr. Econ. 1000

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