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Special Report
Agricultural Economics
Series No. 51-14
University of Florida Agricultural Experiment Station
Gainesville, Florida, Texas Agricultural Experiment Station,
College Station, Texas, and Cooperative Research and Service
Division, Farm Credit Administration, United States Department
of Agriculture, Washington, Do C., Cooperating
COST OF HANDLING FLORIDA AND TEXAS CITRUS FRUITS
IN FRESH AND PROCESSED FORM, 1949-50 SEASON
A Study Conducted With Funds Provided
by the Research Marketing Act
University of Florida
Agricultural Experiment Station
Gainesville, Florida
June 25, 1951
PREFACE
This is a report on one phase of the Southern Regional Project SM-h,
"Marketing Citrus Fruits". Costs of packing and processing citrus fruits
in Florida and Texas for the 1946-47, 1947-48 and 1948-49 seasons have been
published previously. A study of the margins and factors affecting margins
for wholesaling and retailing citrus fruits and citrus products is also in-
cluded in the project. The Bureau of Agricultural Economics and Fruit and
Vegetable Branch of the Production and Marketing Administration are conduct-
ing these phases of the study. Subsequent publications will include an
analysis of the margins for handling citrus fruits at wholesale and retail
as well as a more detailed analysis of the costs of packing and processing
citrus fruits in Florida and Texas.
This report was prepared by the following:
D. L. Brooke, Associate Agricultural Economist, H. W. Little, Assistant
Agricultural Economist, Florida Agricultural Experiment Station and
H. G. Hamilton, Agricultural Economist and Head, Department of Agricul-
tural Economics, University of Florida, Gainesville, Florida
K. A. Fugett, Associate Professor, Department of Agricultural Economics
and Sociology, H. M. Mayes, Technical Assistant, Texas Agricultural
Experiment Station, College Station, Texas.
C. K. Baker, Agricultural Economist and J. K. Samuels, In Charge, Fruit
and Vegetable Section, Cooperative Research and Service Division, Farm
Credit Administration, U. S. Department of Agriculture, Washington 25, D.C.
CONTENTS
Page
FRESH CITRUS FRUIT
Cost of Packing and Selling Fresh Citrus Fruits. .
Variation in Packing and Selling Costs .* 11
Relation of Volume to Cost of Packing and Selling. 18
Packing and Selling Costs by Types of Firms. 26
PROCESSED PRODUCTS
Cost of Processing, Warehousing and Selling Citrus
Juices and Sections. . 29
Variation in Processing, Warehousing and Selling
Costs* * * 34
Relation of Volume to Cost of Processing, Warehousing
and Selling. *. * 39
Processing, Warehousing and Selling Costs by Types of
Firms in Florida .* .* *... 42
Cost of Processing, Warehousing and Selling Frozen
Orange Concentrate .* 44
Definition of Terms ..... 6
Other Publications Available. h8
COST OF HANDLING FLORIDA ATD TEXAS CITRUS FRUITS
IN FRESH AND PROCESSED FORM, 1949-50 SEASON
This report is the latest in a series whose purpose is to analyze citrus
packing and processing costs in Florida and Texas. The current report presents
costs for the 19h9-50 season based on cost information secured from 73 packing-
houses and 16 canning plants in Florida and from 19 packinghouses and six can-
ning plants in Texas. Also included for the 1949-50 season is the average
cost of processing frozen orange juice concentrate by eight Florida firms.
As in the reports for previous seasons, packing and canning costs are
shown by major items of expense, by volume groups and by types of firms.
Variations in costs among firms are indicated by use of tables showing the
number of firms whose costs fell within certain ranges of cost or cost groups.
Costs for processing frozen concentrate are shown by major items of expense
only.
FRESH CITRUS FRUIT
Cost of Packing and Selling Fresh Citrus Fruit
The average cost of packing and selling fresh citrus fruit in bruce boxes
in Florida and Texas for each of the four seasons from 1946-47 through 1949-50
is shown in Table 1. A change of five cents per box in the cost of packing
and selling both oranges and grapefruit is noted for Florida from the 1946-47
to the 1949-50 season. During this period Texas grapefruit cost increased
more than 15 cents and oranges more than 16 cents per box. The greater portion
of this change is evident when comparing the last two seasons. Costs in Flo-
rida increased four cents on oranges and seven cents on grapefruit in bruce
boxes from the 1948-49 to 1949-50 season. In Texas costs of packing and sell-
ing increased six cents on oranges and five cents on grapefruit for the same
period. Prior to the 1948-49 season the average cost of packing and selling
per box was lower for Texas packinghouses than for those in Florida. There
has been a definite change in that relationship during the past two seasons,
due primarily to reduced volume in Texas resulting from the severe freeze
suffered during January 1949.
Table 1.--Average Cost of Packing and Selling Florida and Texas Citrus
Fruit in Bruce Boxes*-, 1946-47 through 1949-50 Season.
Season 1949-50 1948-49 1947-48 1946-47
Cost per 1-3/5 bushel equivalent
Florida
Oranges $0.8785 $0.8330 $0.8421 $0.8279
Grapefruit .80o6 .7359 .7323 .7545
Tangerines 1.2491 1.1916 1.1812 1.1579
Texas
Oranges $0.9125 00.8555 $0.7744 $0.7467
Grapefruit .8056 .7508 .6176 .6506
Tangerines -. 405- 1.00O
Oranges and grapefruit in 1-3/5 bruce boxes. Tangerines in 4/5 bruce
boxes.
** Not enough tangerines packed to arrive at an accurate average.
Average costs per box by major items of expense for packing and selling
fresh citrus in various types of containers are shown for Florida for the
1949-50 season in Table 2.1/ Costs of packing and selling oranges were lower
for 1/2 box bags, 1-3/5 bruce boxes and 20-pound bags than for other types of
containers. Per box costs using these types of containers were 00.76, $0.88
and ?0,92, respectively. Costs for wrapping and packing in 1-3/5 standard
boxes were $1.1 and in 5-pound bags, $1.26. As was the case in previous
years, much of the difference in the total cost per box for fruit packed in
different containers was due to differences in the actual cost of the con-
tainers and other materials used. Labor costs were lowest for 1-3/5 bruce
boxes and highest for 1-3/5 standard boxes, the latter being wrapped fruit.
The rapidity with which these types of containers can be packed is responsible
for the greater portion of the difference in labor cost. Lower piece rates
are paid to packers of bruce boxes and bags than to those packing in 1-3/5
standard containers. Other direct operating expenses, which include power,
lights and water, repairs to buildings and equipment and miscellaneous supplies,
were slightly higher for fruit packed in bags than for that packed in other
containers. Administrative and selling costs were slightly lower for fruit
packed in bruce boxes than in other types of containers. The large volume of
bruce boxes as compared to other containers may be responsible for this dif-
ference.
The average per box cost of packing and selling grapefruit was lowest
for fruit packed in 1-3/5 bruce boxes than for other types of containers.
1/ Average costs by types of containers for packing and for total cost shown
in Tables 2 and 3 are not the same as the averages shown in Tables 4, 5,
6 and 7 for the same types of containers. The costs in Tables 2 and 3
are weighted averages and those in the other tables mentioned are simple
averages. This is true of other tables shown later in the report. A
listing of those tables that contain simple averages is given in the
"Definition of Terms" shown at the end of this report.
Per box costs for grapefruit in all containers except 1/2-box bags were lower
than costs for oranges in corresponding containers. This is due to the lower
piece rates for packing grapefruit and to the fact that most packinghouses are
able to pack grapefruit at a more rapid rate than oranges. Very few grape-
fruit were packed in 1/2-box bags by the packinghouses studied during the
1949-50 season.
Per 1-3/S bushel equivalent, the cost for tangerines averaged $1.25 pack-
ed in t/5 bruce boxes and $1.57 in 4/5 standard boxes. The higher per box
costs for tangerines than for other types of fruit is the result of higher
piece rates for packing, slower rate at which tangerines may be run through
the packinghouse and the difference in type of container used.
The average cost per box by major items of expense for packing and sell-
ing fresh oranges and grapefruit in 19 Texas packinghouses are shown in Table
3. The cost of packing and selling oranges in Texas ranged from $0.91 per
box in 1-3/5 bruce to $1.37 per box in 5-pound bags. This was six and four
cents higher respectively, than costs for similar containers a year earlier.
It is three and 11 cents higher than costs ih corresponding containers for
S Florida packinghouses during the 1949-50 season. Grapefruit costs were $0.81
in 1-3/5 bruce boxes, $1.16 in 1-3/5 standard boxes and $0.99 per box in 8-
pound bags for Texas packinghouses. This is five, five and six cents higher
than the cost of packing and selling in corresponding containers in Texas
the previous year. It is 13 cents higher than the cost in Florida for 1-3/5
standard and five cents higher than the cost per box in 8-pound bags during
the 1949-50 season. Material costs were somewhat lower by types of containers
in Texas than in Florida with the exception of grapefruit packed in 1-3/5
standard boxes. Labor costs per equivalent box were slightly lower in Texas
than in Florida for most types of containers. Other direct operating expenses
and those for administrative and selling, however, are higher for Texas packing-
Table 2.-Cost of Packing and Selling Florida Citrus Fruit by Type of Fruit and
Type of Container for 73 Packinghouses, 1949-50 Season,
Oranges
1-3/5
Type of container 1-3/5 Standard 1/2 Box 20-Lb. 8-Lb. 5-Lb.
Bruce Wrapped Bag* Bag* Bag* Bag*
Number of packinghouses 66 21 36 32 45 35
Boxes per packinghouse 106,267 37,298 935 1,304 12,787 19,371
Items of cost:
Material $0.3655 $0.5393 $0.2395 $0.3729 $0.4779 $0.6462
Labor:
Receive, truck dump .0292 .0346 .0333 .0338 .0367 .0421
Crate making & labeling .0287 .0330 .0053 .0065 .0039 .0047
Foreman, graders, others .0486 .0678 .0569 .061L .0637 .0673
Wrap and pack .0590 .1037 .0629 .0769 .0892 .1117
Truck, check, load .0339 .0335 .0431 .0421 .0502 *.096
Payroll taxes .0075 .0111 .0067 .0088 .0067 .0072
Total labor .2069 .2837 .2082 .2295 .250o .2826
Other direct operating .0588 .0603 .0621 .0671 .0767 .0789
Indirect operating .0370 .0582 .0367 .0383 *0343 .0348
Total packing cost ,6682 .9415 .5465 .7078 .8393 1.0425
Administrative & selling .1087 .1183 .1089 .1110 .1088 .1130
Other cost .1016 .0770 *1050 .1059 .1007 .1025
Total cost $0.8785 $1.1368 $0.7604 $0.9247 01.0488 $1.2580
Grapefruit
1-3/5
Type of container 1-3/5 Standard 1/2 Box 10-Lb. 8-Lb. 5-Lb.
Bruce Wrapped Bag* Bag* BagB- Bag-
Number of packinghouses 66 18 6 14 27 24
Boxes per packinghouse 50,033 26,963 68 1,070 2,012 1,989
Items of cost:
Material $0.3669 $0o.515 $0.4005 $0.4743 0o.L654 $0.6398
Labor:
Receive, truck, dump ,0258 .0346 .0249 .0262 .0345 *0319
Crate making & labeling .0277 .0387 *0020 .0026 .0069
Foreman, graders, others .0374 .0471 *0313 .0776 00403 .0656
Wrap and pack ,0456 ,0668 .0848 .0743 .0774 .1167
Truck, check, load .0327 90330 .0334 .O477 .0465 .0480
Payroll taxes .0065 o0094 .0056 .0056 .0067 .0050
Total labor .1757 .2296 .1800 .2334 .2080 .2741
Other direct operating .0509 .0o46 .0489 .0866 .0682 .0746
Indirect operating .0338 .0398 .0313 .0542 .0260 .0467
Total packing cost .6273 .8565 .6607 .8485 .7676 1.0352
Administrative & selling .0990 ,0964 .1004 .0803 .1079 .1124
Other cost .0783 .0728 .0734 .0691 .0698 .0911
Total cost $0.8046 $1.0257 $0.8345 $0.9979 $0.9453 $1.2387
1-3/5 bushel equivalent.
Table 2.-Cost of Packing and Selling Florida Citrus Fruit by Type of Fruit and
Type of Container for 73 Packinghouses, 1949-50 Season (Concluded).
Type of container
Number of packinghouse
Boxes per packinghouse
Items of cost:
Material
Labor:
Receive, truck, dump
Crate making & labeling
Foreman, graders, others
Wrap and pack
Truck, check, load
Payroll taxes
Total labor
Other direct operating
Indirect operating
Total packing cost
Administrative & selling
Other cost
Total cost
1-3/5 bushel equivalent.
Tangerines
4/5 Bruce*
52
19,352
$0.5798
.0364
.0464
.0685
.1087
.0603
.0108
.3311
.0784
.0515
1.0408
.1051
.1032
$1.2491
4/5 Bruce Flat*
9
23,338
$0.6171
.0384
.0392
.0691
.0944
.0508
.0060
.2979
.0699
.0367
1.0216
.1309
.1030
$1.2555
4/5 Standard*
12
4,262
$0.7963
.0362
.0613
.0648
.0987
.0619
.0203
.3432
.1169
.0582
1.3146
.1251
.1305
$1.5702
housesthan for those in rxorida. These two items account for the major portion
of the difference in packing cost for similar ',-nes of containers in the two
states. Reduced volume in Texas packinghouses, as a result of the freeze
suffered by the industry during the 1948-49 season, may be responsible for
the higher direct operating and administrative and selling expenses during
the past two seasons.
__
~
Table 3.-Cost of Packing and Selling Texas Citrus Fruit by Type of Fruit and
Type of Container for 19 Packinghouses, 1949-50 Season.
Oranges
Type of container
Number of packinghouses
Boxes per packinghouse
Items of cost:
Material $
Labor:
Receive, truck, dump
Crate making & labeling
Foreman, graders, others
Wrap and pack
Truck, check load
Payroll taxes
Total labor
Other direct operating
Indirect operating
Total packing cost
Administrative & selling
Other operating cost
Total cost
1-3/5
Bruce
17
27,653
1-3/5
Standard
Wrapped
7
1,158
4/5
Bruc e*
9
865
0.3625 $0.4425 $0.5655 $0.3068 $0.5270 ,0.6921
1/2
Box
Bag*
15
1.539
8-Lb.
Bag*
17
h.,294
5-Lb.
Bag*
17
7.091
.0249
.0179
.0481
.0535
.0529
.0015
.1988
.0470
*0622
.6705
*1500
.0920
0.9125
.0217
.0182
.0635
.0968
.0614
.0030
.2646
.0547
.0509
.8127
.1809
.0911
$1.0847
.0216
.0348
.0476
.1074
.0586
.0018
.2718
.0558
.0691
.9622
.1211
.09114
$1.17L7
.0296
-
.0606
.0496
.0639
.0013
.2050
.0)95
.0623
.6236
.1673
.09648
$0.8857
.0255
-
.0596
.0932
.0708
.0018
.2509
.0577
.0653
.9009
.1296
.0966
$1.1271
.0261
-
.0663
.1430
.0752
.0017
.3123
.0619
.0650
1.1313
.1396
.0980
$1.3689
Grapefruit
Type of container
Number of packinghouses
Boxes per packinghouse
1-3/5
Bruce
18
117,146
Items of cost:
Material $
Labor:
Receive, truck, dump
Crate making & labeling
Foreman, graders, others
Wrap and pack
Truck, check, load
Payroll taxes
Total labor
Other direct operating
Indirect operating
Total packing cost
Administrative & selling
Other operating cost
Total cost
0*3621 $0.6028 $0.9722 $0.3058 $0.4588 $0.6379
.0229
.0197
*0344
.0352
.0377
.0014o
.1513
.0363
.0580
*6077
.1376
.0603
0.8056
.0227
.0204
.06148
.07140
.0433
.0011
.2263
.0512
.0757
.9560
.1392
.0607
$1.1559
.0177
.0392
.0793
.0940
.0619
.00214
.2945
.0669
.0682
1.4018
.11421
.0667
$1.6106
.0339
-
.0437
.0441
.0o61
.0016
.169l4
.0382
.0665
.5799
.1862
.0620
30.8281
.0248
-
.0511
.08)43
.0617
.0019
.2238
.0481
.0626
.7933
.1106
.0610
30.9949
* 1-3/5 bushel equivalent.
.0248
-
.0476
.1304
.0579
.0019
.2626
.0503
.0691
1.0199
.1291
.0632
$1.2122
1-3/5
Standard
Wrapped
14
I4,115
4/5
Standard
Box*
7
592
1/2
Box
Bag*-
714
715
8-Lb.
Bag*
19
8,051
8,51 3,2
5-Lb.
Bag*
13
3,221
I 117-
$(
$(
_
-f ?"
---
Grapefruit
.1*74
Variation in Packing and Selling Costs
The extent of variation among firms in the total cost per box of packing
and selling citrus in Florida and Texas is shown in Tables L and 5. The 66
firms packing oranges in 1-3/5 bruce boxes had costs ranging from less than
0').70 to more than $1.h5 per box. Of these firms, however, 5$ had costs rang-
ing between )0,.75 and $1.00 per box, vrith 34 of the firms falling in the $0.85
to $0.95 per box group. Of the 73 packinghouses studied in Florida, 66 packed
grapefruit in 1-3/1 bruce boxes. Their costs ranged from $0.65 to '1.32
per box. Of these 66 firms, $9 had costs between $0.70 and $0.95 per box with
h5 firms falling in the $0.75 to $0.90 per box group. Variations in cost for
packing tangerines in 4/5 bruce boxes were similar in nature though higher
than the variations for oranges and grapefruit. Variations in costs among
Florida firms for oranges and grapefruit in other containers were similar to
those for each type fruit in 1-3/5 bruce boxes.
Costs per box for oranges in 1-3/5 bruce boxes for Texas firms ranged from
less than $0.70 to $1.20. Of these 17 firms, eight had costs between $0.85 and
$0.90 per box. Eighteen Texas firms packed grapefruit in 1-3/5 bruce boxes.
Their cost ranged from less than $0.70 to $1.05 per box. Of these firms more
than half had costs for grapefruit ranging between $0.75 and $0.90 per box.
Variations in packinghouse operating costs as represented by variations
among firms for packing only, before administrative and selling costs and
other miscellaneous costs are added, are shown in Tables 6 and 7. Forty-
seven of the 66 Florida firms packing oranges in 1-3/5 bruce boxes had pack-
ing costs between $0.60 and $0.75 per box and 21 of these fell within the
$0.65 to $0.70 cost group. This shows a more definite concentration of costs
in a smaller and lower range than was pointed out in Table h. Grapefruit,
however, do not follow so definitely this same pattern among Florida firms.
Texas firms also show a more definite concentration of packing costs within
Table 4.-Variation in Cost Per Box of Packing and Selling Florida Citrus Fruit by
Type of Fruit and Type of Container for 73 Packinghouses, 1949-50 Season.
Oranges
1-3/5 1-3/5 1/2
Type of container 1-3/5 Standard Standard Box 20-Lb. 8-Lb. 5-Lb.
Bruce Unwrapped Wrapped Bag* Bag* Bag* Bag*
Cost group Number of firms
Under P0.6500 0 0 0 3 0 0 0
$0.65 .6999 1 0 0 5 0 0 0
.70 .7499 1 0 0 5 1 0 0
.75 .7999 7 0 0 10 1 0 0
.80 .8499 8 0 0 h 6 0 0
.85 .8999 18 0 1 6 h 4 0
.90 .9499 16 0 0 0 6 2. 1
.95 .9999 5 2 0 1 9 7 1
1.00 1.0499 5 2 2 0 3 3 1
1.05 1.0999 1 1 4 1 0 14 1
1.10 1.1499 2 1 3 0 1 7 1
1.15 1.1999 1 0 4. 0 0 h 5
1.20 1.2499 0 0 1 0 0 h 6
1.25 1.2999 0 0 1 0 0 0 6
1.30 1.3499 0 0 3 0 0 0 4
1.35 1.3999 0 0 2 0 0 0 4
1.40 1.499 0 0 0 0 0 0 3
1.45 and over 1 0 0 0 1 0 2
Total number of firms 66 6 21 35 32 45 35
Average cost per firm $0.9103 i1.0310 $1.1687 :0.7772 $0.9374 $1.0629 r1.2612
Grapefruit
1-3/5 1-3/5 1/2
Type of container 1-3/5 Standard Standard Box 10-Lb. 8-Lb. 5-Lb.
Bruce Unwrapped Wrapped Bag* Bag* Bag* Bag*-
Cost group Number of firms
Under $0.6000 0 0 0 1 0 0 0
$0.60 .6499 0 0 0 1 0 0 0
.65 .6999 3 0 0 1 0 0 0
.70 .7499 8 0 0 2 0 0 0
.75 .7999 18 0 0 o 0 1 0
.80 .8499 15 0 0 0 2 1 0
.85 .8999 12 1 1 0 4 2 0
.90 .9499 6 3 1 0 3 10 0
.95 .9999 1 1 5 1 3 5 0
1.00 l.0499 1 5 2 0 1 6 0
1.05 1.0999 0 0 3 0 0 2 2
1.10 1.1499 1 1 3 0 1 0 10
1.15 1.1999 0 1 0 0 0 0 2
1.20 1.2499 0 0 1 0 0 0 4
1.25 1.2999 0 0 1 0 0 0 4
1.30 and over 1 0 1 0 0 0 2
Total number of firms 66 12 18 6 14 27 24
Average cost per firm $0.8306 $1.0127 $1.0674 $0.7172 $0.9360 $0.9576 $1.1891
1-3/5 bushel equivalent.
Table 4.-Variation in the Cost Per Box of Packing and Selling Florida Citrus Fruit
by Type of Fruit and Type of Container for 73 Packinghouses, 1949-50 Season*
(Concluded)
Tangerines
Type of container 4/5 Bruce* 4/5 Bruce Flat* 4/5 Standard-
Cost group Number of firms
Under $1.0500 2 0 0
$1.05 1.0999 1 1 0
1.10 1.1499 10 0 0
1.15 1-1999 h 1 0
1.20 1.2499 8 1 0
1.25 1.2999 9 1 0
1.30 1-.399 7 2 1
1.35 1.3999 2 1 3
1.40 1.h499 3 1 1
1.45 1.4999 3 0 3
1.50 1.5499 0 0 0
1.55 1.5999 0 0 1
1.60 and over 3 1 3
Total number of firms 52 9 12
Average cost per firm $1.2719 $1.3120 $1.l921
1-3/5 bushel equivalent.
smaller group limits than was noted in the previous table. This is apparently
due to the elimination of the influence of administrative and selling costs
for which there was a wide variation among firms in both states.
Table 5.-Variation in the Cost Per Box of Packing and Selling Texas Citrus Fruit
by Type of Fruit and Type of Container for 19 Packinghouses, 1949-50 Season.
Oranges
1-3/5 1/2
Type of container 1-3/5 Standard 4/5 Box 8-Lb. 5-Lb.
Bruce Wrapped Bruce* Bag* Bag* Bag*
Cost group Number of firms
Under $0.7000 1 0 0 0 0 0
$0.70 .7499 0 0 0 0 0 0
.75 *7999 0 0 0 2 0 0
.80 .8499 0 0 0 5 0 0
,85 .8999 8 0 0 2 1 0
.90 .9499 3 0 0 4 0 0
.95 .999 2 0 0 0 0 0
1.00 1.0499 1 1 0 1 2 0
1.05 1.0999 1 0 1 1 3 1
1.10 1.1499 0 0 2 0 1 0
1.15 1.1999 1 1 1 0 4 1
1.20 1.2499 0 1 2 0 0 1
1.25 1.2999 O 2 1 0 2 2
1.30 1.3499 00 0 0 4 2
1.35 1.3999 0 2 1 0 0 2
1.40 and over 0 0 1 0 0 8
Total number of firms 17 7 9 15 17 17
Average cost per firm $0*9218 $1.2620 $1.2421 $0.8852 $1.1681 $1.3708
Grapefruit
1-3/5 4/5 4/5
Type of container 1-3/5 Standard Standard Box 8-Lb. 5-Lb.
Bruce Wrapped Box-* Bag* Bage Bag*
Cost group Number of firms
Under $0.6500 0 0 0 1 0 0
$0.65 .6999 3 0 0 0 0 0
.70 .7499 0 0 0 2 0 0
.75 .7999 2 0 0 4 0 0
.80 .8499 5 0 0 2 2 0
.85 .8999 4 0 0 3 0 0
.90 .9499 2 2 0 1 3 0
.95 .9999 1 0 0 1 3 0
1.00 1.0499 1 0 0 0 3 1
1.05 1.0999 0 0 0 0 3 0
1.10 1.1499 0 2 0 0 3 2
1.15 1.1999 0 8 0 0 2 2
1.20 1.2499 0 1 0 0 0 1
1.25 1.2999 0 0 0 0 0 4
1.30 and over 0 1 7 0 0 3
Total number of firms 18 14 7 14 19 13
Average cost per firm $0.8317 $1.1498 $1.5786 $0.8041 31.0133 $1.2218
1-3/5 bushel equivalent.
Table 6.-Variation in the Cost Per Box of Packing Florida Citrus Fruit by Type
of Fruit and Type of Container for 73 Packinghouses, 1949-50 Season.
Oranges
1-3/5 1-3/5 1/2
Type of container 1-3/5 Standard Standard Box 20-Lb. 8-Lb. 5-Lb.
Bruce Unwrapped Wrapped Bag* Bag* Bag* Bag*
Cost group Number of firms
Under $0.*000 0 0 0 1 0 0 0
$0.40 .4499 0 0 0 1 0 0 0
.45 .4999 0 0 0 6 0 0 0
.50 .5499 1 0 0 10 1 0 0
.55 .5999 3 0 0 8 0 0 0
.60 .6499 15 0 0 6 6 0 0
.65 .6999 21 0 0 1 12 1 0
.70 .7499 11 1 1 1 8 3 1
.75 .7999 8 1 0 0 2 5 1
.80 .8499 3 3 1 0 1 13 1
.85 .8999 2 0 3 1 0 14 0
.90 .9499 1 1 7 0 1 5 0
.95 .9999 0 0 2 0 0 3 8
1.00 1.0499 0 0 3 0 0 0 7
1.05 1.0999 0 0 1 0 0 1 7
1.10 1.1499 0 0 3 0 0 0 6
1.15 1.1999 1 0 0 0 0 0 1
1.20 and over 0 0 0 0 1 0 3
Total number of firms 66 6 21 35 32 45 35
Average cost per firm $0.7005 $0.8105 $0.9624 $0.5540 $0.7179 $0.8505 $1-0477
Grapefruit
1-3/5 1-3/5 1/2
Type of container 1-3/5 Standard Standard Box 10-Lb. 8-Lb. 5-Lb.
Bruce Unwrapped Wrapped Bag* Bag* Bag* Bag*
Cost group Number of firms
Under $0.4500 0 0 0 1 0 0 0
$0.45 .4999 0 0 0 1 0 0 0
.50 .5499 4 0 0 1 0 0 0
.55 .5999 17 0 0 1 0 0 0
.60 .6499 16 0 0 1 1 0 0
.65 .6999 13 1 0 0 3 2 0
.70 .7499 9 0 2 0 4 7 0
*75 .7999 5 3 3 1 5 & 0
.80 .8499 1 4 3 0 0 8 0
.85 .8999 0 3 3 0 0 2 3
.90 .9499 0 1 4 0 0 0 5
.95 .9999 0 o 0 0 1 0 6
1.00 1.0499 1 0 1 0 0 0 4
1.05 1.0999 0 0 1 0 0 0 4
1.10 1.1499 0 0 0 0 0 0 0
1.15 1.1999 0 0 1 0 0 0 1
1.20 and over 0 0 0 0 0 0 1
Total number of firms 66 12 18 6 14 27 24
Average cost per firm $0.6501 $0.8213 $0.8835 $0.5589 $0.7476 $0.7824 $1.0003
1-3/5 bushel equivalent.
Table 6.-Variation in the Cost Per Box of Packing Florida Citrus Fruit by Type of
Fruit and Type of Container for 73 Packinghouses, 1949-50 Season.
(Concluded)
Tangerines
Type of container 4/5 Bruce* 4/5 Bruce Flat* 4/5 Standard*
Cost group Number of firms
Under $0.9000 2. 0 0
$0.90 .9h99 6 2 0
,95 .9999 8 0 0
1.00 1.0499 13 3 0
1.05 1.0999 7 1 1
1.10 1.1499 6 0 1
1.15 1.1999 2 1 1
1.20 1.2499 3 1 2
1.25 1.2999 2 0 2
1.30 1.3499 1 0 3
1.35 and over 2 1 2
Total number of firms 52 9 12
Average cost per firm $1.0648 $1.0754 Q1.2708
1-3/5 bushel equivalent.
Table 7.-Variation in the Cost Per Box of Packing Texas Citrus Fruit by Type of
Fruit and Type of Container for 19 Packinghouses, 1949-50 Season.
Oranges
1-3/5 1/2
Type of container 1-3/5 Standard 4/5 Box 8-Lb. 5-Lb.
Bruce Wrapped Bruce* Bag* Bag* Bag*
Cost group Number of firms
Under $0.5500 0 0 0 3 0 0
$0.55 -5999 1 0 0 2 0 0
.60 .6499 6 0 0 5 0 0
.65 .6999 6 0 0 3 0 0
.70 .7499 2 0 0 2 0 0
.75 .7999 1 1 0 0 3 0
.80 .8499 1 0 1 0 2 0
.85 .8999 0 0 0 0 3 0
.90 .9499 0 1 3 0 2 2
.95 .9999 0 1 2 0 1 2
1.00 1.0499 0 1 0 0 5 2
1.05 1.0999 0 3 2 0 1 0
1.10 1.1499 0 0 0 0 0 1
1.15 1.1999 0 0 0 0 0 5
1.20 and over 0 0 1 0 0 5
Total number of firms 17 7 9 15 17 17
Average cost per firm $0.6682 $0.9851 $0.9809 $0.6213 $0.9145 $1.1172
Grapefruit
1-3/5 1-3/5 4/5 1/2
Type of container Bruce Standard Standard Box 8-Lb. 5-Lb.
Box Wrapped Box*e Bag* Bag* Bag*
Cost group Number of firms
Under $0.5000 0 0 0 2 0 0
$0.50 .5499 2 0 0 3 0 0
.55 .5999 8 0 0 4 0 0
.60 .6499 4 0 0 3 0 0
.65 .6999 3 0 0 2 4 0
.70 .7499 1 1 0 0 3 0
.75 .7999 0 0 0 0 2 0
.80 .8499 0 1 0 0 4 0
.85 .8999 0 1 0 0 3 3
.90 .9499 0 5 0 0 3 1
.95 .9999 0 3 0 0 0 1
1.00 1.0499 0 3 0 0 0 3
1.05 1.0999 0 0 0 0 0 3
1.10 1.1499 0 0 0 0 0 1
1.15 1.1999 0 0 0 0 0 1
1.20 and over 0 0 7 0 0 0
Total number of firms 18 14 7 14 19 13
Average cost per firm $0.6115 $0.9325 $1.3664 $0.5722 $0.7988 $1.0151
1-3/5 bushel equivalent.
Relationship of Volume to Cost of Packing and Selling
In order to compare costs for houses of different sizes the firms were
classified according to volume of fruit handled. The results for Florida
firms are shown in Tables 8 and 10, and for Texas firms in Tables 9 and 11.
The costs for oranges and grapefruit in 1-3/5 bruce boxes was highest on the
average for those houses handling less than 100,000 boxes. As the volume in-
creased, costs per box were progressively lower in most cases. For oranges,
the 9 firms having a volume of 400,000 to 699,999 boxes had an average cost
slightly higher than the average for the 28 firms having a volume of 200,000
to 399,999 boxes. Eight Florida firms handling more than 700,000 boxes of
fruit had a slightly higher average cost for grapefruit than the nine firms
in the next smaller volume group. In each case the average number of boxes
packed per house was greater for the higher cost group. The variation be-
tween the two size groups packing oranges is accounted for primarily by higher
container, direct operating and other costs of the 400,000 to 699,999 volume
group. Similarly for grapefruit, the difference in costs for the volume group
700,000 and over, as compared with the next smaller volume group, is noted in
higher labor and indirect operating costs and in higher costs for administra-
tive and selling.
For 52 Florida firms packing tangerines in 4/5 bruce boxes, the group
having a volume of less than 100,000 boxes had the lowest cost per box, $1.15.
The high cost group was again the large volume group of 700,000 boxes and over.
These data do not follow the pattern established by similar data from the same
and other Florida firms in previous years. It is possible that the allocation
of cost is weighted too heavily for tangerines; a result of the estimated
capacities of the various houses packing them. Tangerines are packed at a
S slower rate in most houses than oranges or grapefruit, and the rate of packing
may have been somewhat underestimated for this particular season. It is
possible, too, that the small volume firms packing tangerines were able to
operate more closely to their capacity rate than were large volume firms.
A random sample of 150 firms/ packing fresh fruit in both 1948-49 and
1949-50 discloses that 111 of those firms packed a smaller volume of fresh
fruit in the latter season. Too, a greater volume of fruit was sold for can-
ning in the latter season. This would indicate that many houses did not op-
erate to capacity for any type of citrus during the 1949-50 season. Operating
at lower than capacity tends to increase indirect operating costs, administra-
tive and selling and other costs.
Texas firms packing and selling oranges and grapefruit in 1-3/5 bruce
boxes show the same relationship as that noted for the Florida firms. The
group with the smallest volume had the highest cost per box. The large volume
group has, however, a higher per box cost than the medium volume group. In
packing oranges the only item of cost for the large volume group which is
lower than that of the medium volume group is administrative and selling cost.
In packing grapefruit the Texas firms having the largest volume have the
least cost for labor and administrative and selling cost when compared to the
medium volume group.
The extent of variation among firms in the total cost of packing and
selling citrus by volume groups for Florida and Texas are sho-w in Tables
10 and 11. None of the five Florida firms that packed under 100,000 boxes
of fruit had a per box cost for oranges in 1-3/5 bruce boxes less than 00.90.
Three of the five firms had costs higher than $1.00. In the largest volume
group, 700,000 boxes and over, six of the eight firms had costs of less than
$0.90 per box. It is true of Texas firms, also, that the spread in costs
S 2/ Source: Florida Department of Agriculture; Citrus and Vegetable Inspec-
tion Division, Annual Reports, 1948-49 and 1949-50 Seasons.
among firms is less in the higher volume than in the smaller volume groups.
This is not intended to imply that volume alone is responsible for the
variation in costs of packing and selling citrus. Some firms handling a
relatively small volume have per box costs well below the average of all firms,
large or small. The extent to which volume of fruit handled, regardless of
whether that volume is large or small, utilizes the existing capacity of a
plant in the form of building, equipment and management, is probably one of
the most important ways in which volume is related to cost. A small packing-
house operated at near capacity all season may have a lower cost per box than
a large house with a comparatively large volume but whose volume is still not
large enough to utilize its facilities at near capacity. The floor arrange-
ment and type of equipment used in the packing process, the distance and means
of conveyance from the unloading platform to the coloring room or dump belt,
the distance and means of conveyance from the end of the packing line to the
place of loading or storage and many other factors, also, are believed to
have an important influence on cost.
Table 8.-Relation of Volume to Cost of Packing and Selling Florida Citrus
Fruit in Bruce Boxes by Type of Fruit for 66 Packinghouses
1949-50 Season.
Under 100,000- 200,000- 400,000- 700,000 All groups
Volume100,000 199,999 399,999 699,999 & over combined
Oranges 1-3/5 Bruce
Number of packinghouses 5 16 28 9 8 66
Boxes per packinghouse 28,015 45,852 93,635 174,082 243,922 106,267
Items of cost:
Material $0.3819 $0.3748 $0.3654 $0.3667 $0.3600 $0.3655
Labor:
Receive, truck, dump .0475 .0295 .0285 .0272 .0302 .0292
Crate making & labeling .0470 .0301 .0260 .0273 .0316 .0287
Foreman, graders, others .0772 .0524 .0511 .0468 .0434 .0486
Wrap and pack .0592 .069 .0551 .0565 .0624 .0590
Truck, check, load -0549 .0367 .0358 .0293 .0324 .0339
Payroll taxes .0175 .0077 .0077 .0099 .0045 .0075
Total labor .3033 .2258 .2042 .1970 .2045 .2069
Other direct operating .0665 .0620 .0513 .0689 .0589 .0588
Indirect operating .0860 .0515 .0398 .0289 .0309 .0370
Total packing cost .8377 .7141 .6607 .6615 .6543 .6682
Administrative & selling .1341 .0974 .1176 .0982 .1075 .1087
Other cost .0877 .0857 .0986 .1191 .0985 .1016
Total cost $1.0595 0.8972 $0.8769 $0.8788 $0.8603 $0.8785
Grapefruit 1-3/5 Bruce
Number of packinghouses 5 15 29 9 8 66
Boxes per packinghouse 5,468 27,254 47,809 72,475 103,412 50,033
Items of cost:
Material $0.3817 $0.3824 $0.3657 $0.3640 $0.3631 $0.3669
Labor:
Receive, truck, dump .0465 .0258 .0241 .0259 .0279 .0258
Crate making & labeling .0463 .0284 .0262 .0224 .0334 .0277
Foreman, graders, others .0783 .0440 .0380 .0341 .0345 .0374
Wrap and pack .0513 .0433 .0453 .0398 .0514 .0456
Truck, check, load .0478 .0326 .0343 .0310 .0310 .0327
Payroll taxes .0201 .0082 .0074 .0059 .0040 .0065
Total labor .2903 .1823 .1753 .1591 .1822 .1757
Other direct operating .0691 .0520 .0472 .0558 .0519 .0509
Indirect operating .0924 .0415 .0368 .0252 .0301 .0338
Total packing cost .8335 .6582 .6250 .6041 .6273 .6273
Administrative & selling .1440 .0958 .1057 .0892 .0956 .0990
Other cost .0638 .0677 .0772 .0804 .0845 .0783
Total cost $1.0413 $0.8217 00.8079 $0.7737 $0.8074 $0.8046
Table 8.-Relation of Volume to Cost of Packing and Selling Florida Citrus
Fruit in Bruce Boxes by Type of Fruit for 66 Packinghouses
1949-50 Season. (Concluded)
Under 100,000- 200,000- 400,000- 700,000 All groups
Volume* 100,000 199,999 399,999 699,999 & over combined
Tangerines 4/5 Bruce**
Number of packinghouses 3 14 20 8 7 52
Boxes per packinghouse 11,210 7,382 22,923 23,848 31,439 19,352
Items of cost:
Material $0.5528 $0.5874 $0.5715 $0.5562 $0.6179 $0.5798
Labor:
Receive, truck, dump .0297 .0417 .0361 .0344 .0373 .0364
Crate making & labeling .0575 .0443 0.416 .0452 .0568 .0464
Foreman, graders, others .0416 .07)4 .0696 .0697 .0666 .0685
Wrap and pack .1181 .1264 .1050 .1042 .1105 .1087
Truck, check, load .0403 .0665 .0603 .0562 .0638 .0603
Payroll taxes .0169 .0071 .0109 .0163 .0067 .0108
Total labor .3041 .3604 .3235 .3260 .3417 .3311
Other direct operating 0o489 .0696 .0715 .1032 .0801 .0784
Indirect operating .0672 .0523 .0616 .0469 .0317 .0515
Total packing cost .9730 1.0697 1.0281 1.0323 1.0714 1.0408
Administrative & selling .1308 -0897 .1112 .0955 .1041 .1051
Other cost .0483 .0718 .0983 .1176 .1238 .1032
Total cost $1.1521 $1.2312 $1.2376 $1.2454 $1.2993 $1.2491
In making volume sort, the total number of boxes of all kinds of fruit, packed
and bulk, handled through the packinghouse was used.
** 1-3/5 bushel equivalent.
Table 9.-Relation of Volume to Cost of Packing and Selling
in 1-3/5 Bruce Boxes, 1949-50 Season.
Texas Citrus Fruit
Under 150,000 Over All groups
Volume 150,000 299,999 300,000 combined
Oranges 1-3/5 Bruce
Number of packinghouses 6 7 4 17
Boxes per packinghouse 17,562 18,769 58,336 27,653
Items of cost:
Material $0.3645 $0.3579 $0.3641 $0.3625
Labor:
Receive, truck, dump .0399 .0215 .0200 .0249
Cratemaking and labeling .0178 .0169 .0186 .0179
Foreman, graders, others .0594 .*O10 .0470 .0481
Wrap and pack .0489 .0541 .0552 .0535
Truck, check, load .0649 .0408 .0542 .0529
Payroll taxes .0014 .0006 .0021 .0015
Total labor .2323 .1749 .1971 .1988
Other direct operating .Oi444 .0370 .0537 .0470
Indirect operating .0701 .0484 .0666 .0622
Total packing cost .7113 .6182 .6815 .6705
Administrative and selling .1897 .1555 .1289 .1473
Other operating cost .0847 .0705 .1074 .0920
Total cost $0.9857 $0.8442 $0,9178 $0.9098
Grapefruit 1-3/5 Bruce
Number of packinghouses 6 7 5 18
Boxes per packinghouse 55,382 86,618 234,020 117,146
Items of cost:
Materials $0.3546 $0.3579 $0.3664 $0.3621
Labor:
Receive, truck, dump .0363 .0232 .0189 .0229
Cratemaking and labeling .0183 .0182 .0208 .0197
Foreman, graders, others .0119 .0353 .0318 .0344
Wrap and pack .0374 .0359 .0343 .0352
Truck, check, load .0455 .0341 .0373 .0377
Payroll taxes .0015 .0011 .0016 .0014
Total labor .1809 .1478 .1447 .1513
Other direct operating .0306 .0306 .009 .0363
Indirect operating .0584 .0477 .0633 .0580
Total packing cost .6245 .5840 .6153 .6077
Administrative and selling .1903 .1472 .1176 .1304
Other operating cost .0629 .0558 .0618 .0603
Total cost $0.8777 $0.7870 $0.7947 $0.7984
Table 10.-Variation in the Cost Per Box of Packing and Celling Florida Citrus
Fruit in Bruce Boxes by Type and Volume of Fruit Handled for
66 Packinghouses, 1949-50 Season.
Under 100,000- 200,000- 400,000 700,000
Volume* 100,000 199,999 399,999 699,999 and over
Cost group Number of firms
Oranges 1-3/5 Bruce
Under $0.8000 0 3 3 1 2
$0.80 .8999 0 4 13 5 h
.90 .9999 2 5 9 3 2
1.00 1.0999 1 3 2 0 0
1.10 and over 2 1 1 0 0
Total number of firms 5 16 28 9 8
Average cost per firm $1.1097 $0.9203 $0.8949 $0.8770 $0.8576
Grapefruit 1-3/5 Bruce
Under $0.7000 0 2 1 0 0
$0.70 .7999 0 3 10 8 4
.80 .8999 3 3 17 1 4
.90 .9999 0 7 0 0 0
1.00 and over 2 0 1 0 0
Total number of firms 5 15 29 9 8
Average cost per firm $1.0218 W0.8409 $0.8194. $0.7767 $0.8041
Tangerines 1/5 Bruce**
Under $1.1000 0 0 2 1 0
$1.10 1.1999 2 3 5 1 3
1.20 1.2999 0 5 6 4 2
1.30 1.3999 0 4 4 1 0
1.h0 and over 1 2 3 1 2
Total number of firms 3 14 20 8 7
Average cost per firm $1.3725 $1.2915 $1.2550 $1.2452 $1.2682
In making volume sort the total number of boxes of all kinds of fruit,
packed and bulk, handled through the packinghouse was used.
** 1-3/5 bushel equivalent.
Table 11.-Variation in the Cost Per Box of Packing and Selling Texas Citrus
Fruit in Bruce Boxes by Type and Volume of Fruit Handled for
19 Packinghouses, 1949-50 Season*
Volume* Under 150,000- 300,000
150,000 299,999 and over
Cost group Number of firms
Oranges 1-3/5 Bruce
Under $0.8000 0 1 0
$0.80 *8999 2 4 2
.90 .9999 2 1 2
1.00 1.0999 1 1 0
1.10 1.1999 1 0 0
1.20 and over 0 0 0
Total number of firms 6 7 4
Average cost per firm $0.9792 $0.8731 $0.9208
Grapefruit 1-3/5 Bruce
Under $0.7000 0 1 1
$0.70 ,7999 1 2 0
.80 .8999 2 3 4
.90 .9999 2 1 0
1.00 1.0999 1 0 0
1.10 and over 9 0 0
Total number of firms 6 7 5
Average cost per firm $0.9019 $0,7938 $0.8006
In making volume sort the total number of boxes of all kinds of fruit, packed
and bulk, handled through the packinghouse was used*
Packing and Selling Costs by Types of Firms
Average packing and selling costs in bruce boxes for Florida packing-
houses that were integrated with canning plants, for those that were affili-
ated with canning plants but were not in the same organization and for spe-
cialized packinghouses are shovn in Table 12. Packinghouses by types, as
contained in this table, are so arranged in the belief that the integrated
type of firm has a better opportunity to spread overhead and fixed operating
costs than either the specialized or affiliated organization. Data in previous
seasons-hae indicated this premise to be correct. The relationship holds for
oranges in 1-3/5 bruce for the 1949-50 season. Indirect operating costs, ad-
ministrative and selling and other costs are lower for integrated firms than
for either of the other types. The total cost of packing and selling oranges
is lower by four cents per box for integrated firms than for specialized
firms and lower by six cents than for affiliated firms. This same relation-
ship does not hold true for grapefruit and tangerines for the 1949-50 season.
As has been mentioned previously, a random sample of 150 fresh fruit
firms disclosed that many had packed a smaller volume of fresh fruit in the
1949-50 season than in 1948-L9. It is possible, too, that the larger firms,
which the integrated type tends to be, having a better opportunity for diver-
sion of fruit from fresh to canned uses, reduced their volume of fresh fruit
packed by a greater proportion of their previous year's pack than other types
of firms. Integrated firms are in a better position than other types to take
advantage of changing relationships between fresh and processed fruit prices
during the season.
Table 12.-Cost of Packing and Selling Florida Citrus Fruits in Bruce Boxes
by Type of Fruit and Type of Firm for 66 Packinghouses, 1949-50 Season.
Type of firm Integrated Specialized Affiliated
Oranges 1-3/5 Bruce
Number of packinghouses 8 43 15
Boxes per packinghouse 134,977 86,654 147,176
Items of cost:
Material $0.3613 $0.3671 $0.3649
Labor:
Receive, truck, dump .0267 .0309 .0274
Crate making and labeling .0285 .0297 .0271
Foreman, graders, others .0503 .0450 .0539
Wrap and pack .0592 .0581 .0606
Truck, check, load .0372 .0344 .0314
Payroll taxes .0051 .0067 .0100
Total labor .2070 .2048 .2104
Other direct operating .0563 .0592 .0593
Indirect operating .0318 .0405 .0337
Total packing cost .6564 .6716 .6683
Administrative and selling .0894 .1142 .1086
Other cost .0921 .0922 .1221
Total cost $0.8379 $0.8780 $0.8990
Grapefruit 1-3/5 Bruce
Number of packinghouses 8 43 15
Boxes per packinghouse 85,976 40,310 58,737
Items of cost:
Material $0.3678 $0.3699 $0.3604
Labor:
Receive, truck, dump .0260 .0267 .0239
Crate making and labeling .0278 .0285 .0258
Foreman, graders, others .0445 .0370 .0328
Wrap and pack .0501 .0450 .0433
Truck, check, load .0352 .0342 .0278
Payroll taxes .0068 .0060 .0071
Total labor .1904 .1774 .1607
Other direct operating .0551 .090 .0512
Indirect operating .0382 .0334 .0313
Total packing cost .6515 .6297 .6036
Administrative and selling .0841 .1036 .1015
Other cost .0767 .0676 .1008
Total cost $0.8123 $0.8009 $0.8059
11 I I,, ,
Table 12.-Cost of Packing and Selling Florida Citrus Fruits in Bruce Boxes
by Type of Fruit and Type of Firm for 66 Packinghouses, 1949-50 Season.
(Concluded)
Type of firm Integrated Specialized Affiliated
Tangerines h/5 Bruce*
Number of packinghouses 7 31 14
Boxes per packinghouse 13,372 19,600 21,791
Items of cost:
Material $0.5908 $0.5681 $0.5997
Labor:
Receive, truck, dump .0223 .0371 .0392
Crate making and labeling .0050 .0401 .0577
Foreman, graders, others .0646 .0603 .0862
Wrap and pack .1078 .1104 .1057
Truck, check, load .0625 .0565 .0670
Payroll taxes .0083 .0089 .0154
Total labor .3160 .3133 .3712
Other direct operating .0826 .0727 .0883
Indirect operating .0394 .0555 .0474
Total packing cost 1.0288 1.0096 1.1066
Administrative and selling .1069 .1015 .1117
Other cost .1071 .0863 .1355
Total cost $1.2428 $1.1974 $1.3538
1-3/5 bushel equivalent.
PROCESSED PRODUCTS
Cost of Processing, Warehousing and Selling Citrus Juices and Sections
The cost of processing single strength citrus juice continued to climb
in Florida in 1949-50 while in Texas processing costs were slightly lower.
In Florida costs increased four cents a case for orange juice, two cents for
grapefruit juice and 4.5 cents for blended juice, while in Texas the cost of
processing grapefruit juice declined two cents a case, Table 13. The over-
all increase in costs from 1946-47 to 1949-50 was between 13 cents and 15 cents
a case in Florida and about 25 cents in Texas. Florida costs have increased
each season since 1946-47. However, in Texas costs took a big jump in 1948-49
as a result of the loss in volume brought about by the freeze of January, 1949.
Continued low production in Texas in 1949-50 again kept processing costs at a
relatively high level. Prior to 1948-49 processing costs wTere about five cents
a case lower in Texas, but in the past two seasons they have been 14 to 18
cents higher than in Florida.
Table 13.--Average Cost of Processing, Warehousing and Selling
Florida and Texas Citrus Fruit Juices, Excluding Sugar Costs, in
12/404 Cases, 1946-47 Through 1949-50 Seasons.
Season 1949-50 1948-49 1947-48 1946-47
Florida
Orange juice $1.2098 $1.1672 $1.0920 $1.0558
Grapefruit juice 1.1893 1.1685 1.0909 1.0574
Blended juice 1.1929 1.1488 1.0930 1.0498
Texas
Orange juice $1.2559 $0.9962 $1.0028
Grapefruit juice $1.3287 1.3463 1.0402 1.0815
Blended juice 1.1926 .9925 .9650
The costs for processing the principal citrus juices and sections in Flo-
rida and grapefruit juice in Texas by major items of expense for various size
containers are shown in Tables 14, 15 and 16.
The data indicate only slight differences between the cost of processing
orange, grapefruit or blended juice. For example,the cost for natural grape-
fruit juice in Florida in 2h/2 cases was $1.14, while the cost for orange
juice and blended juice averaged $1.15 per case. The cost of tangerine juice
was approximately five cents a case higher than other citrus juices. Larger
advertising assessments on tangerines accounted for most of this amount.
Costs for processing and selling citrus juices in 12/404 cases in Florida
ranged from four to six cents higher than the cost for similar products in
24/2 cases. In the case of grapefruit juice in Florida the cost for 24/2 cases
averaged $1.14, while the cost for 12/404 cases of grapefruit juice was almost
$1.19 per case. In Texas, however, the difference in costs between 24/2 and
12/404 cases of grapefruit juice was approximately eight cents; the cost being
$1.25 for 24/2 cases compared with $1.33 for 12/404 cases.
Costs for natural grapefruit juice was 11 cents higher in Texas than in
Florida for 24/2 cases and 14 cents higher for 12/404 cases. Materials were
almost five cents higher in Texas; other manufacturing expense was 13 cents
higher for 24/2 cases and 17 cents higher for 12/404 cases. On the other hand,
labor costs were three cents lower in Texas for 24/2 cases and four cents for
12/404 cases. Administrative and selling expense and other cost, also, were
approximately four cents lower in Texas.
The cost of processing, warehousing and selling grapefruit sections in
Florida was $2.28, salad (orange and grapefruit) sections $2.36 and orange
sections $2.45. These costs are about the same as in 1948-49.
Table 14.-Cost Per Case of Processing, Warehousing and Selling Florida Citrus
Fruit Juices by Type of Juice and Type of Container for 16 Canneries,
1949-50 Season.
Orange Juice
Type of container
Number of firms
Cases per firm
Items of cost:
Material
Labor:
Direct
Indirect
Warehousing and shipping
Total labor
Other manufacturing cost
Total processing and warehouse cost
Administrative cost
Selling cost
Total administrative and selling cost
Other cost
Total cost
24/2
1L
1646,09
$0.7625
.0683
.0190
.0353
.1226
.1449
1.0300
.0527
.0449
.0976
.0218
1.1494
12/404
15
428,510
Cost excluding
$0.77435
.0768
.0205
.0407
.1380
.1811
1.0626
.0636
.0556
.1192
*0280
C1.2098
6/10
4_
2.544
sugar
$0.6107
.0660
.0173
.0433
.1266
.1796
.9169
.o454
.0488
.0942
.0261
$1.0372
Number of fines
Sweetened cases per firm
Sugar
13
138,493
$O.0493
Cost of sugar
15
330,063
$0.0606
Total cost $1.2704 $1.0882
Grapefruit Juice
Type of container 24/2 12/404 6/10
Number of firms 14 15 3
Cases per firm 95,881 197,341 12,792
Items of cost: Cost excluding sugar
Items of cost:
Material $0.7560 $0.7327 $0.6686
Labor:
Direct .0704 .0779 .0759
Indirect .O184 .0204 .0099
Warehousing and shipping .0340 .0402 .0398
Total labor .1228 .1385 .1256
Other manufacturing cost .1333 .1598 .1589
Total processing and warehouse cost 1.0121 1.0310 .9531
Administrative cost .0506 .0624 .0467
Selling cost .0395 .0534 .0601
Total administrative and selling cost .0901 .1158 .1068
Other cost .0339 .0425 *0429
Total cost $1.1361 $1.1893 $1.1028
Cost of sugar
Number of firms 14 15 3
Sweetened cases per firm 61,891 135,090 3,275
Sugar $0.0695 $0.0939 $0.1067
Total cost $1.2056 $1.2832 $1.2095
4
1,429
$0.0510
---
Total cost-
Nube of firm 13.....
Table 14.-Cost Per Case of Processing, Warehousing and Selling Florida Citrus
Fruit Juices by Type of Juice and Type of Container for 16 Canneries,
1949-50 Season. (Concluded)
Blended Juice
Type of container
Number of firms
Cases per firm
Items of cost:
Material
Labor:
Direct
Indirect
Warehousing and shipping
Total labor
Other manufacturing cost
Total processing and
Administrative cost
Selling cost
Total administrative
Other cost
Total cost
Number of firms
Sweetened cases per firm
warehouse cost
and selling cost
214/2
614
68,199
$0.760C
.0728
.0182
.0336
.1246
.1390
1.0276
.0495
.0438
.0933
.0276
$1.1485
14
50,284
12/401
14
193,181
Cost excluding
$0.7389
.0781
.0201
.0391
.1373
.1679
1.0441
.0595
.0541
.1136
.0352
$1.1929
Cost of sugar
14
150,280
150,280
14
1,638
sugar
$0.6050
.0609
.0126
.0l33
.1168
.1749
.8967
.0409
.0470
.0879
.0335
$1.0181
4
1,236
Sugar $0.05114 $0.0628 $0.0802
Total cost $_1.1999 $1.2557 $1.0983
Tangerine Juice
Type of container 24/2 12/404
Number of firms 11 11
Cases per firm 49,825 37,538
Items of cost:
Material
Labor:
Direct
Indirect
Warehousing and shipping
Total labor
Other manufacturing cost
Total processing and warehouse cost
Administrative cost
Selling cost
Total administrative and selling cost
Other cost
Total cost
Cost excluding sugar
$0.7764 $0.7404
.0782
.0201
.0346
.1329
.1472
1.0565
.0464
.0432
.0896
.0524
1.1985
Cost
.0813
.0267
.0426
.1506
,1702
1.0612
.0608
.0576
.1184
,0642
$1.2438
of sugar
Number of firms 10 10
Sweetened cases per firm 52,561f 40,585
Sugar S0.0352 SO.0436
Total cost
,,- ,- r.. .. 't,, ,, ,
6/10
$0-7640
I
33
Table 15-Cost Per Case of Processing, Warehousing, and Selling Texas Grapefruit
Juice in 24/2 and 12/404 Cases for 6 Canneries, 1949-50 Season.
Type of container 24/2 12/404
Number of firms 6 6
Cases per firm 49,511 127,308
Items of cost:
Material $0*8020 $0.7828
Labor:
Direct .0453 .0471
Indirect .0295 .0483
Warehousing and shipping .0159 .0032
Total labor .0907 .0986
Other manufacturing cost .2678 .3341
Total processing and warehouse cost 1.1605 1.2155
Administrative and selling cost .0749 .1008
Other cost .0109 .0124
Total cost $1.2463 $1.3287
Table 16.-Cost Per Case of Processing, Warehousing and Selling Florida Citrus
Sections by Type of Product and Type of Container for 12 Canneries,
1949-50 Season.
Grapefruit Salad Orange
Sections Sections Sections
Type of container 24/2 24/2 24/2
Number of firms 12. 9 3
Cases per firm 132,975 23,550 1,395
Items of cost:
Material $0.7497 $0.7927 $0.7329
Labor:
Direct .8333 .8057 .9074
Indirect .0497 .0723 ,0816
Warehousing and shipping .0372 .0426 .0018
Total labor .9202 .9206 .9908
Other manufacturing cost .2605 .2919 .3699
Total processing and warehouse cost 1.9304 2.0052 2.0936
Administrative cost .0624 .0613 .0855
Selling cost .0470 .0400 .0161
Total administrative and selling cost .1094 .1013 .1016
Other cost .0281 .0269 .0334
Sugar .2103 .2240 .2198
Total cost $2.2782 $2.3574 $2.4484
Variation in Processing, Varehousing and Selling Cost
Tables 17 through 19 show the variation in cost for the 16 canneries in
Florida and six in Texas. Variations in total cost are given in Tables 17
and 19, and variations in processing and warehousing costs, with administrative,
selling, sugar and other cost excluded, are indicated in Tables 18 and 19.
In Florida nine out of 15 firms or 60 percent had total costs bettseen
$1.00 and $1.30 per case for 12/hOb cases of unsweetened orange juice and
grapefruit juice. Ten out of 15 firms producing unsweetened blended juice
and seven out of 11 producing unsweetened tangerine juice, also, had costs
within this range. Six firms were above $1.30 in total cost for unsweetened
orange juice in 12/h0O cases, five for blended juice and four for grapefruit
juice. Nine out of 15 firms processing sweetened orange and blended juice
and eight processing sweetened grapefruit juice had total costs between $1.10
and $1.hO for 12/0h4 cases. All other firms processing sweetened juice had
total costs above $1..0. Eleven of the 15 firms producing orange, grapefruit
and blended juice had costs of processing and warehousing, with administrative,
selling, sugar and other cost excluded, between $0.90 and $1.20.for 12/40o
cases. Twelve out of lh, also, had costs between $0.90 and $1.20.for 21/2
cases.
Costs in 19h9-50 in Florida appear to have had about the same range as in
1948-h9 even though eight less firms were in the sample. However, in 1948-49
almost one-half the firms were concentrated in one croup, $1.10 to $1.20;
whereas in 1949-50 a more even distribution of costs was indicated.
In Texas four out of six firms had total costs for 2L/2 cases of grape-
fruit juice between $1.20 and $1.30 and five out of six had costs for 12/1h0
cases between $1.20 and $1.O0. For processing and warehousing only four out
of the six firms had costs under $1.20 for 2h/2 cases and five had costs below
$1.30 for 12/hO4 cases.
Table 17.-Variation in the Cost Per Case of Processing, VWarehousing and Selling
Florida Citrus Fruit Juices by Type of Fruit and by Type of Container for
16 Canneries, 1949-50 Season.
Type of container 24/2 12/404 24/2 12/404
Excluding sugar Sweetened
Orange Juice
Cost group Number of firms
Under $1.0000 1 0 0 0
$1.00 1.0999 3 3 2 0
1.10 1.1999 h 1 4 4
1,20 1.2999 4 5 4 2
1.30 1.3999 0 2 1 3
1.40 1.4999 2 1 1 3
1.50 and over 0 3 1 3
Total number of firms 1)4 15 13 15
Average cost per firm $1.1890 $1.3004 $1.2416 $1.3768
Grapefruit Juice
Cost group Number of firms
Under $1.0000 0 0 0 0
$1.00 1.0999 4 2 0 0
1.10 1.1999 4 3 6 2
1.20 1.2999 3 4 2 4
1.30 1.3999 2 2 4 2
1.40 1.4999 0 1 0 3
1.50 and over 1 3 2 4
Total number of firms 14 15 14 15
Average cost per firm $1.1901 $1.2964 $1.2704 $1.3961
Table 17.-Variation in the Cost Per Case of Processing, Warehousing and Selling
Florida Citrus Fruit Juices by Type of Fruit and by Type of Container for
16 Canneries, 1949-50 Season. (Concluded)
Type of container 24/2 12/404 24/2 12/404
Excluding sugar Sweetened
Blended Juice
Cost group Number of firms
Under $1.000 1 0 0 0
$1.00 1.0999 3 2 1 0
1.10 1.1999 4 3 5 4
1.20 1.2999 3 5 4 2
1.30 1.3999 2 1 2 3
1.40 1.4999 1 1 1 3
1.50 and over 0 3 1 3
Total number of firms 14 15 14 15
Average cost per firm $1.1900 $1.2985 $1.2575 $1.3815
Tangerine Juice
Cost group Number of firms
Under $1.0000 0 0 0 0
$1.00 1.0999 3 0 0 0
1.10 1.1999 4 3 4 1
1.20 1.2999 1 4 3 3
1.30 1-3999 1 1 1 3
1.40 1.4999 1 1 0 1
1.50 and over 1 2 2 2
Total number of firms 11 11 10 10
Average cost per firm $1.2162 $1.2963 $1.2859 $1.3819
Table 18.-Variation in the Cost Per Case of Processing and Warehousing Florida
Citrus Fruit Juices, Excluding Sugar Costs, by Type of Fruit and by Type
of Container for 16 Canneries, 1949-50 Season.
Type of container 24/2 12/h40 24/2 12/404
Orange Juice Grapefruit Juice
Cost group Number of firms
Under $0.9000 0 0 0 0
$0.90 .9999 4 3 5 4
1.00 1.0999 5 4 3
1.10 1.1999 3 4 3 4
1.20 1.2999 2 2 2 2
1.30 and over 0 2 0 2
Total number of firms 14 15 14 15
Average cost per firm $1.0624 $1.1297 $1.0541 $1.1139
Blended Juice Tangerine Juice
Number of firms
Cost group
Under $0.9000 0 0 0 0
$0.90 .9999 4 4 3 2
1.00 1.0999 5 3 5 4
1.10 1.1999 3 4 1 3
1.20 1.2999 2 2 2 1
1.30 and over 0 2 0 1
Total number of firms 1l 15 11 11
Average cost per firm $1.0588 $1.1219 $1.0615 $1.10ll
Table 19.-Variation in the Cost Per Case of Processing, Warehousing and Selling
Texas Grapefruit Juice by Type of Fruit and by Type of Container for 6
Canneries, 1949-50 Season.
Processing and Warehouse
Processing, Warehouse (Administrative, Selling
and Selling and Other Costs Excluded)
Type of container 24/2 12/4Oh 24/2 12/h04
Cost group Number of firms
Under $1.2000 1 0 4 3
$1.20 1.2999 4 2 1 2
1.30 1.3999 0 3 1 1
1.40 1.4999 0 0 0 0
1.50 1.5999 0 0 0 0
1.60 and over 1 1 0 0
Total number of firms 6 6 6 6
Average cost per firm $1.3074 $1.3910 $1.1784 $1.2990
Relation of Volume to Cost of Processing, Warehousing and Selling
The 16 Florida canning firms in the sample were segregated into two groups
according to the total volume of single strength juice and sections, Table 20.
Ten firms had a volume of less than 700,000 cases while six produced over
1,h00,000 cases. There were no firms in the sample with a volume of 700,000
to 1,00,000 cases.
The data indicate that, except in the case of tangerine juice, large firms
in Florida had at least 10 percent lower costs for producing unsweetened juice
in 12/0h4 cases. A comparison of total costs of large and small canneries for
12/0hh cases is as follows:
Small Large Small Large
Orange juice $1.37 $1.19 Blended juice $1.30 $1.18
Grapefruit juice 1.33 1.17 Tangerine juice 1.30 1.21
Materials cost the large firms about three cents less except for tangerine
juice. Labor cost was three to five cents lower, other manufacturing expense
from four to seven cents lower and administrative expense from two to three
cents less.
In Texas the difference in cost between firms with large volume (200,000
and over) and those with small volume (under 100,000) was somewhat greater
than in Florida, Table 21. The cost of the large canneries was 13 percent
lower for grapefruit juice in 2h/2 cases and 15 percent for 12/0h4 cases. Ad-
ministrative and selling expenses of the large canners in Texas were 15 cents
lower for 2h/2 cases of grapefruit juice and almost 21 cents lower for 12/hO4
cases; while production costs, such as material, labor and other manufacturing
expenses, were only three to four cents lower for the large firms. This is in
contrast to Florida where decreased operating expenses accounted for most of
the lower cost of the large firms.
Table 20.-Relation of Volume to Cost of Processing, Warehousing and Selling
Florida Citrus Juices in 12/40h Cases, 1949-50 Season.
V e Under Over Under Over
Volume 700,000 1,400,000 700,000 1,h00,000
Orange Juice Grapefruit Juice
Number of firms 9 6 9 6
Cases per firm 87,299 940,325 43,52L4 28,068
Items of cost Cost excluding sugar
Material $0.7748 $0.7391 $0.7606 $0.7284
Labor:
Direct .0862 .0754 .0872 .0765
Indirect .0433 .0174 .0487 .0161
Warehousing and shipping .0389 .0410 .0408 .040l
Total labor .1681 .1338 .1767 .1327
Other manufacturing cost .2306 .1742 .2118 .1519
Total processing & warehouse cost 1.1738 1.0471 1.1491 1.0130
Administrative cost .0939 .0594 .0865 .0587
Selling cost .0753 .0528 .0532 .0535
Total administrative & selling cost .1692 .1122 .1397 .1122
Other cost .0300 .0278 .0410 .0427
Total cost $1.3730 $1.1871 $1.3298 $1.1679
Cost of sugar
Number of firms 9 6 9 6
Sweetened cases per firm 65,062 727,565 30,102 292,571
Sugar $0.0891 $0.0567 $0.1030 $0.0925
Total cost $1.4621 $1.2L38 $1.4328 $1.260o
Blended Juice Tangerine Juice
Number of firms 9 5 7 5
Cases per firm 35,059 477,802 23,251 57,541
Items of cost: Cost excluding sugar
Material $0.7610 $0.7360 $0.7222 $0.7507
Labor:
Direct .0884 .0767 .0826 .0806
Indirect .0o48 .0164 .0473 .0151
Warehousing and shipping *.000 .0389 .0386 .0448
Total labor .1768 .1320 .1685 .1405
Other manufacturing cost .2025 .1634 .2191 .1425
Total processing & warehouse cost 1.1403 1.0314 1.1098 1.0337
Administrative cost .0780 .0570 .0705 .0554
Selling cost .0489 .0548 .0613 .0555
Total administrative & selling cost .1269 .1118 .1318 .1109
Other cost .0368 .0350 .0557 .0689
Total cost $1.3040 $1.1782 $1.2973 $1.2135
Cost of sugar
Number of firms 9 5 6 5
Sweetened cases per firm 28,570 369,358 26,454 57,541
Sugar $0.0914 $0,0588 $o.o614 $0.0338
Total cost $1.3954 $1.2370 $1.2173
Table 21.-Relation of Volume to Cost of Processing, Warehousing and Selling
Texas Grapefruit Juice in 24/2 and 12/404 Cases, 1949-50 Season.
Volume 1/ Under 100,000- 200,000 Under 100,000- 200,000
100,000 199,999 and over 100,000 199,999 and over
Type of container 24/2 12/404
Number of firms 2 2 2 2 2 2
Cases per firm 11,031 33,924 103,577 38,418 95,396 248,109
Items of cost:
Material $0.8261 $0.8016 $0.7996 $0.8041 $0.7777 $0.7814
Labor:
Direct .0293. .0246 .0539 *0370 .0307 .0549
Indirect .0362 .0368 .0264 .0432 .0373 .053b
Warehousing & shipping .0253 ./ .0200 .0320 / -
Total labor .0908 .061 e .1003 .1122 .0680 .1083
Other manufacturing cost .2888 .2829 .2606 .3328 .3659 .3220
Total manufacturing and
warehouse cost 1,2057 1.1459 1.1605 1.2491 1.2116 1.2117
Administrative and
selling cost }/ .2074 .0993 .0527 .2728 .1205 .0667
Other cost .0016 .0007 .0153 .0018 .0011 .0184
Total cost $1.4147 $1.2459 $1.2285 $l.5237 $1.3332 $1.2968
_/ In making volume sort the number of cases in all types
sidered and not just 24/2 and 12/404 case containers.
2/ Labor not broken down.
3/ Administrative and selling cost not broken down.
of containers were con-
Processing, WTarehousing and Selling Costs by Types of Firms in Florida
Costs in Florida for integrated firms (canning plants that also pack
fresh fruit) and for firms that process only are shown in Table 22. Total
costs for unsweetened juices for integrated and all other firms were as
follows:
Orange Grapefruit Blended Tangerine
Juice Juice Juice Juice
Integrated firms $1.17 $1.18 $1.16 $1.25
Other firms 1.23 1.19 1.21 1.25
These data show that generally integrated firms had somewhat lower costs than
other firms. As indicated previously integrated firms also had somewhat
lower costs for packing fresh fruit.
The only significant difference in the processing operation was in labor
cost. Except in the case of tangerine juice, labor costs were from 3.5 to
4.5 cents lower for integrated firms. Data from previous seasons also show
lower labor costs for this type of operation. Firms having both canning and
packing operations probably are more flexible in the use of labor and can
shift workers into various operations as needed.
Table 22.-Cost of Processing, Warehousing and Selling Florida Citrus Fruit Juices
in 12/404 Cases by Type of Firm for 16 Canneries, 1949-50 Season.
Type of firm Integrated Other Integrated Other
Orange Juice Grapefruit Juice
Number of firms 8 7 8 7
Cases per firm 256,552 625,032 119,632 286,152
Items of cost: Cost excluding sugar
Material $0.7250 $0.7521 $0.7238 $0.7369
Labor:
Direct .0556 .0867 .0598 .0866
Indirect .0176 .0219 .0207 .0203
Warehousing and shipping .0337 .0440 .0332 .0435
Total labor .1069 .1526 .1137 .1504
Other manufacturing cost .1796 .1819 .1781 .1511
Total processing & warehouse cost 1.0115 1.0866 1.0156 1.0384
Administrative cost .0703 .0605 .0717 .0579
Selling cost .0572 .0548 .0483 .0559
Total administrative & selling cost .1275 .1153 .1200 .1138
Other cost .0331 .0256 .0466 .0405
Total cost $1.1721 $1.2275 $1.1822 $1.1927
Cost of sugar
Number of firms 8 7 8 7
Sweetened cases per firm 188,637 491,693 69,761 209,751
Sugar $0.0648 $0.0587 $0.0944 $0.0938
Total cost $1.2369 $1.2862 $1.2766 $1.2865
Blended Juice Tangerine Juice
Number of firms 8 7 7 5
Cases per firm 103,458 268,125 22,098 61,911
Items of cost: Cost excluding sugar
Material $0.7224 $0.7462 $0.7192 $0.7547
Labor:
Direct .0600 .0860 .0823 .0911
Indirect .0194 .0204 .0402 .0171
Warehousing and shipping .0338 .0414 ,0340 .0461
Total labor .1132 .1478 .1565 .1543
Other manufacturing cost .1764 .1642 .1865 .1611
Total processing & warehouse cost 1.0120 1.0582 1.0622 1.0701
Administrative cost .0644 .0573 .0665 .0536
Selling cost .0459 .0578 .0620 .0577
Total administrative & selling cost .1103 .1151 .1285 .1113
Other cost .0402 .0330 .0630 .0674
Total cost $1.1625 $1.2063 $1.2537 $1.2488
Cost of sugar
Number of firms 8 7 6 5
Sweetened cases per firm 68,637 222,117 25,109 61,911
Sugar $0.0810 $0.0564 $0.0564 $0.0306
Total cost $1.2435 $1.2627 $1.2794
,.:-., ; .. ,: .. LI
Cost of Processing, Warehousing and Selling Frozen Orange Concentrate
Concentrate costs for eight Florida firms are shown in Tables 23 and 2h.
The costs in Table 23 are for the labor, manufacturing expense, administrative
cost and other cost for a gallon of frozen orange concentrate. Container cost
and selling expenses are excluded. Total cost per gallon was h5 cents, of
which 13 cents was for labor, 20 cents other manufacturing cost, 9.5 cents
administrative cost and 2.5 cents for advertising stamps, testing and in-
spection.
Records from three firms did not include material cost. In order to
show costs by type of container, the total operating and administrative
expenses of the eight firms were converted to 48/6, 2l/6 and 12/32 case bases.
The can and carton cost of the firms selling concentrate in containers was
added to the operating and administrative expenses of all firms to determine
the total cost per case (Table 24).
The cost of producing frozen orange concentrate vas $1.95 per h8/6 case,
$1.00 per 24/6 and $1.97 per 12/32 case. Processing and warehousing costs
only were 01.68, "0.87 and $1.61, respectively. Costs of advertising and
selling for the 1949-50 season are not included, since information was not
obtained from all firms on methods and expense of selling.
A comparison of costs in 1949-50 with the costs reported in 19)18-c9 for
five firms indicate that container costs for 48/6 cases increased about five
cents a case. On the other hand, labor costs decreased in spite of somewhat
higher wage rates. Other manufacturing expenses also declined. The lower
cost per case for these items of expense reflect increased efficiency of pro-
duction, as most of the firms in the sample expanded output and gained operat-
ing experience.
Table 23.-Cost Per Gallon of Processing and Warehousing Frozen Orange
Concentrate Excluding the Cost of Cans and Cartons, for Eight
Florida Firms, 1949-50 Season.
Frozen Orange Concentrate
Gallons per firm
1,989,854
Items of cost:
Labor:
Direct
Indirect
Warehousing and shipping
Total labor
Other manufacturing cost:
Power, lights, water
Maintenance building and equipment
Royalties
Depreciation
Taxes, licenses and insurance
Miscellaneous
Total other manufacturing cost
Administrative cost
Advertising stamps, testing and inspection
Total cost
Cost per gallon
$0.0715
.0427
.0182
.1324
.0496
.0322
.0417
.0460
.0137
.0177
.2009
.0935
.0239
o0.4507
Table 24.-Cost Per Case of Processing and Warehousing Frozen Orange
Concentrate by type of Container for Eight Florida Firms,
1949-50 Season.*
Frozen Orange Concentrate
Type of container 48/6 24/6 12/32
Items of cost:
LIaterial:
Cans $0.8693 $0.4439 $0.5304
Cartons .0650 .0475 .0846
Total material .9343 .4914 .6150
Labor .2979 .1490 o3972
Other manufacturing cost .4520 .2260 .6027
Total processing and warehouse cost 1.6842 .8664 1.6149
Administrative cost .2104 .1052 .2805
Advertising stamps, testing and inspection .0538 .0269 .0717
Total cost $1.9484 $0.9985 $1.9671
* Includes all operating and overhead costs except selling costs.
The cost of cans and cartons for 48/6 cases is the average of five firms; for
24/6 cases the average of two firms was used and for 12/32 cases four firms.
All other costs are for eight films.
--
Definition of Terms
AVERAGE COST PER FIRM
Average c>st per firm used in Tables 4,5,6,7,10,11,17,18 and 19 is a simple
average of the per-unit cost of the firms. It was obtained by dividing
the sum of the per-unit costs of all firms by the number of firms. The
per-box or per-case cost in Tables 1,2,3,8,9,12,,13,15,1166,20,21,22,23
and 24 is a weighted average. It was obtained by dividing the sum of the
dollar cost of all firms for the appropriate container by the sum of the
corresponding container pack.
TYPE OF FIRM
Integrated firm: A firm having both canning and packing operations under
a unified management.
Specialized firm: A firm which either packs or processes citrus fruits as
distinct from integrated firms that both pack and process.
Affiliated firm: Packinghouses that are members of, or are affiliated with,
a cooperative canning plant which processes the cannery fruit of its affil-
iated packinghouses.
VOLUE,. GROUP
Determined for each packinghouse by the total boxes 1-3/5 bushel equiva-
lent handled as packed or bulk fruit through the packinghouse, and for
each cannery to the total cases of citrus fruit products processed.
PACKING OPERATIONS
Boxes per packinghouse: Average volume packed, 1-3/5 bushel equivalent.
Containers:
1-3/5 bruce, 1-3/5 standard wrapped, 1-3/5 standard unwrapped: 1-3/1
bushel by volume.
h/5 bruce, h/5 standard, 1/2-box bags, 8-pound bags, 10-pound bags,
5-pcund bags, 8-pound bags in master container, 10-pound bags in
master container: All expressed in the equivalent of 1-3/5 bushel by
volume.
Items of cost:
Materials: Crate material; bags; fruit wraps; nails, strips and straps;
labels and paste; and end guards.
Labor: Receive, truck and dump; crate making and labeling; foreman,
graders and others; wrap and pack; truck, check and load; and payroll
taxes. Payroll taxes includes both social security and compensation
insurance.
Other direct cost: Cost of power, lightsand water; repair of building
and equipment; and miscellaneous supplies.
Indirect operating: Insurance, taxes, licenses and depreciation.
Total packing cost: The total of materials, labor, other direct cost
and indirect operating.
Administrative and selling: Management and office salaries; office
supplies and expense; auto and travel; telephone and telegraph; mis-
cellaneous office expense; sales department cost, or charge for selling.
Selling cost does not include brokerage or any terminal market charges.
Other cost: Gas coloring; color add and wax; precooling and inspection
f'or Florida and Texas; and advertising taxes and marketing agreement
assessments for Florida.
PRLOCE:SdIIG OPERA''IOINS
blended juice: A blend of orange and grapefruit juice. The proportion
of each varies from 60-h0 to 0h-60 percent.
Cases per firm: Average volume of actual cases produced.
Containers:
.2" A case of 2h eighteen ounce cans.
12,72: A case of 12 thirty--two ounce cans.
12/h77 : A case of 12 forty-six ounce cans.
6/10: A case of 6 oni-]himdrcd-eight ounce cans.
727/: A case of 72 six ounce cans.
27: A case of 2) six ounce cans.
T'/7 : A case of 48 six ounce cans.
Ite.3s of co,:t:
hiaeria.L,: Cans, cartons, labels, and freighton materials.
Labor: Processing and warehousing labor; superv-ision; mechanic and
-,a'-chi.vmn; and payroll taxes.
Othr manufacturing cost: Exponse for depreciation, repairs and
maintenance; power, lights and water; fuel; royalties; insin'ance;
taxes; miscellaneous sunpjlies; miscellaneous operating cost and
warehouse cost other than labor.
Achmiinistrative cost: Includes management and office salaries, office
supplies and expense, auto and travel, operating interest, tole )hone
and tlegrao.h, legal and audit, dues and subscriptions and other general
:-dministrative cost.
Sl.lin; cost: Salaries of salesmen and others, advertising and miscel-
laneJus plant selling cost. Does not include con.m:ercial brokora-;e,
discounts and allowanices.
Total cost: The cost of processing juice excluding sugar. The average
costs of adding sugar. for -thos firms that produced sweetened juice and
sections are shovm in Tablev; 1i,16,20 and 22.
Other Publications Available
Fugett, K. A. and Samuels, J. K., Cost of Handling Texas Citrus, Fresh and Pro-
cessed, 1946-47. Texas Agricultural Experiment Station Bulletin 709, 1949.
Fugett, K. A., Baker, C. K., and Mayes, H. M., Schedule for Pricing Texas Citrus
According to Containers. Texas Agricultural Experiment Station, Progress
Report 1290, 1950.
Capel, G. L., Coryell, Jay and Samuels, J. K., Analysis of Packinghouse Cost
for 31 Southern California Citrus Associations, 19h6-47 and 1947-48 Seasons.
Farm Credit Administration Special Report 214, 1950.
Cochran, L. Wayne Wholesale Margins for Fresh Citrus Fruits in the Pittsburgh,
Pennsylvania Wholesale Fruit and Vegetable Marketa Production and Marketing
Administration, Fruit and Vegetable Branch, Unnumbered Report, 1950.
Marketing Desert Grapefruit, Arizona Agricultural Experiment Station Bulletin 221,
1949*
Bulk Handling Compared with the Use of Field Boxes in the Harvesting of Desert
Grapefruit. Arizona Agricultural Experiment Station Report No. 89, 1949.
Tree to Car Costs of Marketing Desert Citrus Fruity Arizona Agricultural Experi-
ment Station Report No. 92, 1949.
Lilieholm, Vi. C., Grove to Retail Margins for Florida Valencia Oranges Marketed
in Fresh Form in Selected Cities, 1940-48. Bureau of Agricultural Economics,
Unnumbered Report, 1950.
Samuels, J. K., and Goldsborough, G* H., Wholesale Distribution of Citrus Fruits
in Five Terminal Markets, December 1946 March 1947- Farm Credit Administra-
tion Miscellaneous Report 139, 1950.
Retailing Grapefruit and Grapefruit Products in Los Angeles. Arizona Agricultural
Experiment Station Bulletin 96, 1950.
Cost of Handling Florida Citrus Fruit in Processed and Fresh Form, 1944-45
Season. Special Report, Florida Agricultural Experiment Station, 1946.
Cost and Methods of Operation of Dealers Supplying Canners with Citrus Fruit,
194h-45 Season. Special Report, Florida Agricultural Experiment Station, 1946.
Cost of Handling Florida and Texas Citrus Fruits in Fresh and Processed Form,
1947-48 Season. Special Report, Florida Agricultural Experiment Station, 1949.
Cost of Handling Florida and Texas Citrus Fruits in Fresh and Processed Form,
1946-47 Season. Special Report, Florida Agricultural Experiment Station, 1948.
Ag. Exp. Sta., Ag. Ec.
DLB:fw:bjb
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