R. Clegg Hooks
Richard L. Kilmer

Economic Information

Report 78

Estimated

Costs

of Processing,

Warehousing and Selling

Florida

Citrus

Products, 1975-76

Food and Resource Economics Department July 1977
Agricultural Experiment Stations
Institute of Food and Agricultural Sciences
University of Florida, Gainesville 32611

ABSTRACT

The costs of processing, warehousing and selling Florida
citrus products for the 1975-76 season are estimated to have decreased
from 1974-75 levels. The estimated total cost of producing 48
6-ounce cans of orange concentrate decreased to $3.24-a five
percent decrease from 1974-75 levels while the costs of producing
single strength orange juice in 12 46-ounce cans are estimated to
have decreased to $2.89--a .6 percent decrease from 1974-75 levels.

Key words: citrus marketing, citrus processing, marketing
margins, processing costs, citrus.

ACKNOWLEDGEMENTS

We wish to express our appreciation to the participant processors
for their excellent cooperation, to Dr. Daniel Tilley and Mr. A. H. Spurlock
for their counsel and to Ms. Pamela Speakes and Mrs. Johnette Arnold
for their clerical and secretarial assistance.

ABSTRACT

The costs of processing, warehousing and selling Florida
citrus products for the 1975-76 season are estimated to have decreased
from 1974-75 levels. The estimated total cost of producing 48
6-ounce cans of orange concentrate decreased to $3.24-a five
percent decrease from 1974-75 levels while the costs of producing
single strength orange juice in 12 46-ounce cans are estimated to
have decreased to $2.89--a .6 percent decrease from 1974-75 levels.

Key words: citrus marketing, citrus processing, marketing
margins, processing costs, citrus.

ACKNOWLEDGEMENTS

We wish to express our appreciation to the participant processors
for their excellent cooperation, to Dr. Daniel Tilley and Mr. A. H. Spurlock
for their counsel and to Ms. Pamela Speakes and Mrs. Johnette Arnold
for their clerical and secretarial assistance.

TABLE OF CONTENTS

Page

SUMMARY . . . . .

INTRODUCTION . . . . .

FROZEN CONCENTRATE . . . . .

SINGLE STRENGTH JUICES AND GRAPEFRUIT SECTIONS .

CITRUS FEED . . . . . .

COST AND PRICE TRENDS . . . .

REFERENCES . . . . . .

LIST OF TABLES

Table

1 Volume of citrus products produced by sample firms
relative to the total volume produced in Florida, 1975-76
season . . . . . . .

2 Estimated costs of processing, warehousing and selling
Florida orange concentrate, 450 brix, 48 6-ounce cans in
cases, 1975-76 season with comparisons to 1974-75 season
levels . . . . . . .

3 Estimated costs of processing, warehousing and selling
Florida frozen concentrate in cases, 450 brix, nine firms,
1975-76 season . . . . . .

4 Estimated costs of processing, warehousing and selling
Florida frozen concentrate in cases, 450 brix, 1975-76
season . . . . .

5 Estimated costs per gallon for processing, warehousing
and selling Florida frozen orange concentrate, 450 brix,
1975-76 season . . . . .

Page

2

4

5

6

3

9

9

9

. . 20
. . 20

LIST OF TABLES (Continued)

Table Page

6 Estimated costs per gallon for processing, warehousing
and selling Florida frozen concentrate, 580 brix, 1975-76
season . . . .... . . 8

7 Estimated costs of processing, warehousing and selling
12 46-ounce cans of single strength Florida orange juice
in cases, 1975-76 season with comparisons to 1974-75
levels ... ... ......... . . 10

8 Estimated costs of processing, warehousing and selling
Florida citrus fruit juices, 1975-76 season . .. 11

9 Estimated costs of processing, warehousing and selling
Florida grapefruit juices and sections, 1975-76 season 12

10 Estimated costs of processing, warehousing and selling
Florida chilled orange juice, 1975-76 season. .. .. 13

11 Estimated costs of processing, warehousing and selling
Florida citrus feed, in bulk, 1975-76 season with com-
parisons to 1974-75 . .... .. . . 14

12 Total cost for processing, warehousing and selling
Florida frozen, 450 brix, orange concentrate, 1965-66
through 1975-76 seasons . . . * 16

13 The relative changes in the component costs that make up
the total cost of processing, warehousing and selling
48 6-ounce orange concentrate, 1965-66 through 1975-76
seasons . . . . *. * 17

14 Estimated average costs of processing, warehousing and
selling canned Florida citrus juices, excluding sugar,
in 12 46-ounce cases, 1961-62 through 1975-76 seasons 18

15 Estimated average costs of processing, warehousing and
selling Florida canned sections and chilled products,
1961-62 through 1975-76 seasons . . . 19

ESTIMATED COSTS OF PROCESSING, WAREHOUSING AND
SELLING FLORIDA CITRUS PRODUCTS, 1975-76 SEASON

R. Clegg Hooks and Richard L. Kilmer

SUMMARY

The costs of processing, warehousing and selling Florida citrus
products for the 1975-76 season are estimated to have decreased from
1974-75 levels. The estimated total costs of producing 48 six-ounce
cans of orange concentrate has decreased to $3.24 -- a five percent
decrease from 1974-75 levels while the costs of producing single
strength orange juice in 12 46-ounce cans are estimated to have
decreased to $2.89 -- a .6 percent decrease from 1974-75 levels.

INTRODUCTION

The purpose of this study is to develop estimates of processing
costs for Florida citrus products for the 1975-76 season. Citrus
processing cost data were obtained from 13 firms. The total volume
for each type of product and the percentage of total Florida production
processed by firms in the sample are shown in Table 1. The sample
firms represent a larger share of concentrate and canned product
production than of chilled product production.
Most firms provided average unit costs from their audited financial
statements. The following summaries present estimates of the average
costs for plant operation, warehousing and selling the finished products.
Fruit costs are not included. The numbers shown in the following tables

R. CLEGG HOOKS is an assistant in Agricultural Economics and
RICHARD L. KILMER is an assistant professor in Food and Resource Economics.

Table l.--Volume of citrus products produced by sample firms relative to
the total volume produced in Florida, 1975-76 season

Percentage
Total Total of total Sampl
firms
Prodt produced produced Florida i
Product producing
by sample in production prod
firms Floridaa produced by each
sample firms product

----Equivalent units----

Percent

No.

Orange concentrate
(gallons)

Grapefruit concentrate
(gallons)

Canned single strength
orange juice
(24/2 equivalent)

Canned single strength
grapefruit juice
(24/2 equivalent)

Canned blended single
strength juice
(24/2 equivalent)

Canned grapefruit
sections
(24/2 equivalent)

Chilled orange juice
(gallons)

Chilled grapefruit
juice
(gallons)

69,852,688

1,336,421

5,304,255

9,716,352

558,456

361,883

2,854,023

184,513,425

9,315,874

10,635,464

18,438,986

1,686,942

1,602,389

133,013,666

779,863 18,150,176

aReported by the Florida Canners' Association [1].

are weighted averages where the weights are the volumes packed of each
product by each firm. Weighted averages tend to place the numbers
reported in the tables closer to the costs for those firms with the
larger volume of each of the products.
The firms were not selected according to a sample design. Some
of the year-to-year cost variation can be attributed to variation in
the firms in the sample and the distribution of the total volume of each
product among sample firms. This is especially true for the 1975-76
sample which contains two firms not previously included, and excludes
one firm which had been included in the 1974-75 sample.
Detailed costs were aggregated into several major cost categories
for each product and can size to give a total cost unsweetened.
Selling costs include brokerage as well as the firms' sales
department expense. Discount allowances and brand royalties have been
omitted.

FROZEN CONCENTRATE

The estimated costs of processing, warehousing and selling orange,
grapefruit and blended frozen concentrate in various retail and bulk
forms are shown in Tables 2, 3, 4, 5 and 6.
Estimated average costs for packing 48 six-ounce cans of orange
concentrate in cases are shown in Table 2 along with item-by-item
comparisons to 1974-75 estimates. Total costs were estimated at $3.24
per case -- a five percent decrease below 1974-75 estimates. Although
several smaller items showed the larger percentage decreases materials
(primarily cans) showed the largest decrease -- down 13 cents. Labor
costs decreased seven percent. Selling costs decreased five percent
while other processing expenses increased seven percent.
Tables 3, 4, 5 and 6 show costs of packing other retail and
institutional packages as well as bulk concentrate in drums.
The changes in costs for the other retail packs are similar to
those shown for the 48 six-ounce cans in cases. The total estimated
costs for 24 12-ounce, 24 16-ounce and 12 32-ounce cans in cases
decreased four, seven and two percent below 1974-75 respectively.
Bulk 450 brix orange concentrate costs shown in Table 5 were down
three percent from 1974-75 estimates while the cost for equivalent gallons
for all packs (excluding materials) is estimated to have

Table 2.--Estimated costs of processing, warehousing and selling
Florida orange concentrate, 450 brix, 48 6-ounce cans
in cases, 1975-76 season with comparisons to 1974-75
season levels

Frozen orange concentrate 48 6-oz.

Cost group Estimated cost C
Change
1975-76 1974-75a in cost

Number of plants 9 9
Number of cases per plant 688,610 768,095

----Cost per case---- Percent
Materials
Cans $1.4063 $1.5426 9
Cartons .1141 .1070 + 7
Labels .0000 .0005 0
Other .0009 .0033 -73
Total materials $1.5213 $1.6534 8
Processing labor
Direct $0.2224 $0.2402 7
Indirect .0745 .0818 9
Payroll taxes & ins. .0425 .0434 2
Total processing labor $0.3394 $0.3654 7
Other processing expense
Power, lights, water $0.1408 $0.1204 +17
Maintenance & repairs .1331 .1364 2
Depreciation & rent .0894 .0794 +13
Royalties on machinery .0724 .0722 0
Taxes & insurance .0253 .0225 +12
Miscellaneous expense .0858 .0821 + 5
Total other processing $0.5468 $0.5130 + 7
Total processing expense $2.4075 $2.5317 5
Warehousing expense
Whse. & ship., labor & taxes $0.0634 $0.0834 -24
Other warehousing expense .1371 .1406 2
Total warehouse expense $0.2005 $0.2240 -10
Administrative expense $0.1247 $0.1636 -24
Selling expense
Brokerage $0.0721 $0.0551 +31
Other selling expense .0769 .1015 -24
Total selling expense $0.1490 $0.1566 5
Other expense
Advertising tax & insp. $0.2216 $0.2190 + 1
Other (int., misc. dedct.) .1406 .1245 +13
Total other expense $0.3622 $0.3435 + 5
Total cost $3.2439 $3.4194 5

aFrom Tilley [2].

bln this and the following tables administrative expenses include
management and office salaries, office expense, telephone and tele-
graph, and travel.

Cln this and the following tables selling expense excludes
allowances, discounts, and brand royalties.

Table 3.--Estimated cost of processing, warehousing and
selling Florida frozen concentrate in cases,
450 brix, nine firms, 1975-76 season

Item Orange concentrate

Container size 24/12 12/32

Number of plants 9 9
Average number of cases per plant 893,493 191,010

---Cost per case----
Materials
Cans $0.9842 $0.7912
Cartons .1128 .1387
Labels .0000 .0000
Other .0041 .0078
Total materials $1.1011 $0.9377
Processing labor
Direct $0.2246 $0.2942
Indirect .0827 .1256
Payroll taxes & ins. .0448 .0674
Total processing labor $0.3521 $0.4872
Other processing expense
Power, lights, water $0.1377 $0.1809
Maintenance & repairs .1343 .1766
Depreciation & rent .0972 .1391
Royalties on machinery .0731 .1015
Taxes & insurance .0263 .0349
Miscellaneous .0818 .1087
Total other processing expense $0.5504 $0.7417
Total processing expense $2.0036 $2.1666
Warehouse expense
Whse. & shipping, labor & taxes $0.0647 $0.0864
Other warehouse expense .1398 .1750
Total warehouse expense $0.2045 $0.2614
Administrative expense $0.1227 $0.1625
Selling expense
Brokerage $0.0718 $0.0934
Other selling expense .0722 .0884
Total selling expense $0.1440 $0.1818
Other expense
Advertising tax & insp. $0.2210 $0.2942
Other (int., misc. deductions) .1380 .1823
Total other expense $0.3590 $0.4765
Total cost $2.8338 $3.2488

Table 4.--Estimated costs of processing, warehousing and selling
Florida frozen concentrate in cases, 450 brix, 1975-76
season

Concentrate
Item
Orange Grapefruit

Container size 24/16 24/6

Number of firms 9 7
Average number of cases per firm 380,416 33,376

----- Cost per case-----

Materials
Cans $1.3648 $0.7112
Cartons .1398 .0947
Labels .0000 .0000
Other .0061 .0027
Total materials $1.5107 $0.8086
Processing labor
Direct $0.2983 $0.1199
Indirect .1184 .0533
Payroll taxes & ins. .0615 .0287
Total processing labor $0.4782 $0.2019
Other processing expense
Power, lights, water $0.1875 $0.0668
Maintenance & repair .1741 .0603
Depreciation & rent .1283 .0483
Royalties on machinery .0978 .0412
Taxes & insurance .0359 .0144
Miscellaneous expense .1051 .0359
Total other processing expense $0.7287 $0.2669
Total processing expense $2.7176 $1.2774
Warehouse expense
Warehouse & shipping, labor & taxes $0.0841 $0.0472
Other warehouse expense .1756 .0833
Total warehouse expense $0.2597 $0.1305
Administrative expense $0.1563 $0.0516
Selling expense
Brokerage $0.0892 $0.0334
Other selling expense .0897 .0344
Total selling expense $0.1789 $0.0678
Other expense
Advertising tax & insp. $0.2950 $0.1364
Other (int., misc. deductions) .1903 .0644
Total other expense $0.4853 $0.2008
Total cost $3.7978 $1.7281

Table 5.--Estimated costs per gallon for processing, warehousing and
selling Florida frozen orange concentrate, 450 brix,
1975-76 season

Concentrate

Item Gallons, 450 Equivalent gallon
in drums 450 all packs

Number of firms 8 9
Average number of gallons per firm 2,134,562 7,761,409

----------Cost per gallon---------
Materials
Drums and liners (total) $0.0092 $0.0000
Processing labor
Direct $0.0926 $0.0972
Indirect .0404 .0381
Payroll taxes, insurance .0206 .0203
Total processing labor $0.1536 $0.1556
Other processing expense
Power, lights, water $0.0599 $0.0613
Maintenance & repair .0559 .0581
Depreciation & rent .0560 .0451
Royalties on machinery .0342 .0332
Taxes & insurance .0112 .0114
Miscellaneous .0369 .0373
Total other processing $0.2541 $0.2464
Total processing expense $0.4169 $0.4020
Warehouse expense
Whse. & shipping, labor & taxes $0.0239 $0.0274
Other warehouse expense .0579 .0592
Total warehouse expense $0.0818 $0.0866
Administrative expense $0.0517 $0.0541
Selling expense
Brokerage $0.0212 $0.0290
Other selling expense .0241 .0302
Total selling expense $0.0453 $0.0592
Other expense
Advertising tax & insp. $0.0964 $0.0979
Other (int., misc. deduction) .0610 .0613
Total other expense $0.1574 $0.1592

Total costs

$0.7531

$0.7611

Table 6.--Estimated costs per gallon for processing, warehousing
and selling Florida frozen concentrate, 580 brix,
1975-76 season

Concentrate

Item Orange Grapefruit
Gallon, 580 Gallon, 580
in drums in drums

Number of firms 3 4
Average number of gallons:per firm 2,167,358 524,180
------Cost per gallon-----

Materials
Drums and liners (total) $0.0044 $0.0355
Processing labor
Direct $0.1451 $0.1643
Indirect .0447 .0604
Payroll taxes, insurance .0220 .0305
Total processing labor $0.2118 $0.2552
Other processing expense
Power, lights, water $0.0800 $0.0967
Maintenance & repair .0808 .0781
Depreciation & rent .0659 .0705
Royalties on machinery .0411 .0523
Taxes & insurance .0149 .0170
Miscellaneous expense .0438 .0421
Total other processing $0.3265 $0.3567
Total processing expense $0.5427 $0.6474
Warehouse expense
Whse. & shipping, labor & taxes $0.0307 $0.0392
Other warehouse expense .0773 .0670
Total warehouse expense $0.1080 $0.1062
Administrative expense $0.0725 $0.0768
Selling expense
Brokerage $0.0125 $0.0051
Other selling expense .0130 .0058
Total selling expense $0.0255 $0.0109
Other expense
Advertising tax & inspection $0.1370 $0.1740
Other (int., misc. deductions) .0711 .0584
Total other expense $0.2081 $0.2324
Total cost $0.9568 $1.0737

decreased five percent below 1974-75 levels.
The costs of processing 580 brix bulk orange and grapefruit concen-
trate are shown in Table 6. It should be noted that only three firms
reported costs for these products and that estimates are subject to
great variability.

SINGLE STRENGTH JUICES AND GRAPEFRUIT SECTIONS

Estimated average single strength processing, warehousing and
selling costs are shown in Tables 7, 8, 9 and 10.
Table 7 shows estimated single strength processing costs for 12
46-ounce cans in cases for 1975-76 with comparisons to 1974-75 estimates.
Cans were the item showing the largest absolute decreases while selling
expenses were the items with the greatest percentage increases. Total
estimated costs rose by .6 percent relative to 1974-75 estimates.
Tables 8 and 9 show estimated costs for other retail packages of
orange, grapefruit and blended juices. Table 10 reports the weighted
average cost of producing canned grapefruit sections and chilled orange
juice for the three sample firms producing those products. The costs
are shown only for general information and are not felt to be reliable
estimates of the industry average cost because of the small sample size
and low volumes of the sample firms.

CITRUS FEED

The estimated costs of processing citrus feed in bulk are shown in
Table 11.
Citrus feed processing costs per ton are estimated to have increased
from $37.81 to $38.33. Nearly all of the increase can be attributed
to increased processing expense.

COST AND PRICE TRENDS

Processing, warehousing and selling costs remained reasonably
stable until the 1971-72 season. As shown in Table 12, costs for pro-

Table 7.--Estimated costs of processing, warehousing and selling 12 46-
ounce cans of single strength Florida orange juice in cases,
1975-76 season with comparisons to 1974-75 levels

Orange juice 12 46-oz.
(excluding sugar)
Cost group Season Change
Change
1975-76 1974-75 in cost

Number of plants 6 6
Average number of cases per plant 496,539 639,584

---Cost per case---- Percent

Materials
Cans $1.5440 $1.6093 4
Cartons .1589 .1530 + 4
Labels and other .0849 .0782 + 9
Total materials $1.7878 $1.8405 3
Processing labor
Direct $0.1255 $0.1297 3
Indirect .0519 .0628 17
Payroll taxes & ins. .0317 .0296 + 7
Total processing labor $0.2091 $0.2221 6
Other processing expense
Power, lights, water $0.0662 $0.0631 + 5
Maintenance & repairs .0890 .0648 + 37
Depreciation & rent .0607 .0432 + 41
Royalties on machinery .0370 .0326 + 13
Taxes & insurance .0145 .0103 + 41
Miscellaneous expense .0474 .0454 + 4
Total other processing $0.3148 $0.2594 + 21
Total processing expense $2.3117 $2.3220 .4
Warehouse expense
Whse. & ship., labor & taxes $0.0825 $0.1303 37
Other warehouse expense .1071 .1085 1
Total warehouse expense $0.1896 $0.2388 21
Administrative expense $0.0812 $0.1076 25
Selling expense
Brokerage $0.0659 $0.0566 + 16
Other selling expense .0654 .0315 +108
Total selling expense $0.1313 $0.0881 + 49
Other expense
Advertising tax & insp. $0.1079 $0.1007 + 7
Other (int., misc. deductions) .0676 .0484 + 40
Total other expense $0.1755 $0.1491 + 18
Total cost unsweetened $2.8893 $2.9056 .6

Table 8.--Estimated costs of processing, warehousing and selling
Florida citrus fruit juices, 1975-76 season

Blended
Orange juice juce

Container size 48/6 24/2 12/46

Number of plants 6 3 4
Average number of cases per plant 223,653 55,919 106,493

-* -----Cost per case--------

Materials
Cans $2.0428 $1.6953 $1.5514
Cartons .1110 .1571 .1558
Labels .0000 .0906 .0879
Other .0028 .0187 .0092
Total materials $2.1566 $1.9617 $1.8043
Processing labor
Direct $0.0737 $0.1330 $0.1287
Indirect .0322 .0688 .0645
Payroll taxes & ins. .0187 .0352 .0357
Total processing labor $0.1246 $0.2370 $0.2289
Other processing expense
Power, lights, water $0.0339 $0.0571 $0.0699
Maintenance & repairs .0478 .0681 .0756
Depreciation & rent .0355 .0616 .0725
Royalties on machinery .0203 .0291 .0353
Taxes & insurance .0081 .0126 .0161
Miscellaneous .0237 .0390 .0451
Total other processing $0.1693 $0.2675 $0.3145
Total processing expense $2.4505 $2.4662 $2.3477
Warehouse expense
Whse. & shipping, labor & taxes $0.0753 $0.1101 $0.0779
Other warehouse expense .0814 .1059 .0864
Total warehouse expense $0.1567 $0.2160 $0.1643
Administrative expense $0.0428 $0.0463 $0.0594
Selling expense
Brokerage $0.0506 $0.0582 $0.0618
Other selling expense .0358 .0267 .0430
Total selling expense $0.0864 $0.0849 $0.1048
Other expense
Advertising tax & insp. $0.0553 $0.0939 $0.1260
Other (int., misc. deductions) .0359 .0775 .0840
Total other expense $0.0912 $0.1714 $0.2100

$2.8276

$2.9848 $2.8862

Total cost unsweetened

Table 9.--Estimated costs of processing, warehousing and selling Florida
grapefruit juices and canned sections, 1975-76 season

Grapefruit
Item Grapefruit juices Grapefruit
sections

Container size 48/6 24/2 12/46 24/303

Number of plants 6 3 6 3
Average number of cases per plant 343,132 63,643 984,376 111,403
--------------Cost per case --------

Materials
Cans $2.0428 $1.7247 $1.5334 $1.5273
Cartons .1105 .1571 .1593 .1323
Labels .0000 .0926 .0794 .0698
Other .0023 .0153 .0044 .0577
Total materials $2.1556 $1.9897 $1.7765 $1.7871
Processing labor
Peeling $ -- $ -- $ -- $0.1555
Sectionizing -- -- -- .7170
Other direct .0708 .1259 .1190 .6319
Indirect labor .0309 .0617 .0511 .2606
Payroll taxes, ins. .0170 .0316 .0284 .3053
Total processing labor $0.1187 $0.2192 $0.1985 $2.0703
Other processing expense
Power, lights, water $0.0344 $0.0576 $0.0636 $0.1965
Maintenance & repairs .0481 .0679 .0929 .1502
Depreciation & rent .0352 .0581 .0574 .1162
Royalties on machinery .0173 .0310 .0318 .4306
Taxes & insurance .0083 .0128 .0145 .0501
Miscellaneous .0233 .0377 .0460 .0943
Total other processing $0.1666 $0.2651 $0.3062 $1.0379
Total processing expense $2.4409 $2.4740 $2.2812 $4.8953
Warehouse expense
Whse. & shipping, labor & taxes $0.0729 $0.1034 $0.0786 $0.0952
Other warehouse expense .0786 .0991 .1011 .1240
Total warehouse expense $0.1515 $0.2025 $0.1797 $0.2192
Administrative expense $0.0407 $0.0474 $0.0781 $0.0586
Selling expense
Brokerage $0.0480 $0.0515 $0.0556 $0.0431
Other selling expense .0344 .0251 .0425 .0295
Total selling expense $0.0824 $0.0766 $0.0981 $0.0726
Other expense
Advertising tax & insp. $0.0660 $0.1088 $0.1277 $0.0915
Other (int., misc. deductions) .0351 .0717 .0600 .1517
Total other expense $0.1011 $0.1805 $0.1877 $0.2432

$2.8166 $2.9810 $2.8248 $5.4889

Total cost unsweetened

Table 10.--Estimated costs of processing, warehousing and
selling Florida chilled orange juice, 1975-76
season

Item Chilled orange juice

Container size 24/7 6/65

Number of plants 3 3
Average number of cases per plant 144,062 691,945

4* ----Cost per case---

Materials
Cans $0.1787 $0.0361
Cartons 1.4422 1.2330
Labels .0000 .0251
Other .0094 .0117
Total materials $1.6303 $1.3059
Processing labor
Other direct $0.0926 $0.1392
Indirect labor .0357 .0489
Payroll taxes, ins. .0234 .0314
Total processing labor $0.1517 $0.2195
Other processing expense
Power, lights, water $0.0291 $0.0657
Maintenance & repairs .0307 .0697
Depreciation & rent .0338 .0388
Royalties on machinery .0144 .0264
Taxes & insurance .0136 .0161
Miscellaneous .0210 .0611
Total other processing $0.1426 $0.2778
Total processing expense $1.9246 $1.8032
Warehouse expense
Whse. & shipping, labor & taxes $0.1030 $0.0868
Other warehouse expense .1019 .1121
Total warehouse expense $0.2049 $0.1989
Administrative expense $0.0195 $0.0790
Selling expense
Brokerage $0.0381 $0.0429
Other selling expense .0168 .0296
Total selling expense $0.0549 $0.0725
Other expense
Advertising tax & insp. $0.0387 $0.0846
Other (int., misc. deductions) .0333 .0416
Total other expense $0.0720 $0.1262
Total cost unsweetened $2.2759 $2.2798

Table ll.--Estimated costs of processing, warehousing and selling
Florida citrus feed, in bulk, 1975-76 season with
comparisons to 1974-75

Season
Change
Item
1975-76 1974-75a in cost

Number of plants 9 10
Avg. number of tons produced per plant 31,390 37,172
----Cost per ton---- Percent

Materials total $ 0.92 $ 0.75 + 23
Processing labor
Direct $ 4.36 $ 3.48 + 25
Indirect 1.36 2.30 41
Payroll taxes & insurance .83 .83 0
Total processing labor $ 6.55 $ 6.61 1
Other processing expense
Power, water, lights, steam $13.70 $13.56 + 1
Maintenance & repairs 6.24 3.88 + 61
Depreciation & rent 4.18 4.50 7
Taxes & insurance .56 1.27 56
Miscellaneous expense 1.26 1.33 5
Total other processing expense $25.94 $24.54 + 6
Total processing expense $33.41 $31.90 + 5
Warehouse expense
Whse. & shipping, labor & taxes $ 0.80 $ 1.05 24
Other warehouse expense 1.07 1.19 10
Total warehouse expense $ 1.87 $ 2.24 17
Administrative expense $ 1.06 $ 1.89 44
Selling expense
Brokerage $ 0.34 $0.17 +100
Other selling expense .36 .59 39
Total selling expense $ 0.70 $ 0.76 8
Other expense total $ 1.29 $ 1.03 + 25
Total costs $38.33 $37.81 + 1

aReported by Tilley [2].

bDoes not include bag costs.

cessing, warehousing and selling 48 six-ounce cans of concentrate in
cases were at only 107 percent of the 1965-68 average until the 1971-72
season. Since the 1971-72 season the index has risen to 153 percent in
1974-75 and declined slightly to 145 for 1975-76 season. In the last
two columns of Table 12, the actual and relative retail prices of 48 six-
ounce cans of concentrate are shown. While 1975-76 processing costs
were estimated at 145 percent of 1965-68 levels, 1975-76 prices were
at only 131 percent of 1965-68 levels.
Changes in the cost categories that make up the total processing,
warehousing and selling expenses for 48 six-ounce cans of concentrate
are shown in Table 13. Materials, other processing expenses and ware-
housing expenses are the items that increased the most relative to
1965-68 levels while materials, selling and other expenses have shown
relatively small increases.
Tables 14 and 15 show how costs of producing other products have
changed since the 1961-62 season.

Table 12.-Total cost for processing, warehousing and
selling Florida frozen, 450 brix, orange
concentrate, 1965-66 through 1975-76 seasons

Average retail price
Season Cost per case, per 48/6-oz. cans
48/6-oz.a ic
in cases

Actual Indexc Actual Indexc

1965-66 $2.38 107 $ 8.80 108
1966-67 2.07 92 7.00 86
1967-68 2.26 101 8.60 106
1968-69 2.24 100 9.76 120
1969-70 2.38 107 8.68 107

1970-71 2.43 109 8.88 109
1971-72 2.39 107 9.84 121
1972-73 2.61 117 9.56 118
1973-74 3,02 135 9.55 117
1974-75 3.42 153 10.09 124

1975-76 3.24 145 10.66 131

years prior to 1975-76 are from Tilley [2].

bReported by the Market Research
of America.

Corporation

CThe index was computed as a percentage of the
1965-68 average.

Table 13.-The relative changes in the component costs that make up the total cost of processing, warehousing and selling 48/6-ounce
orange concentrate, 1965-66 through 1975-76 seasonsa

Season Materials Labor Otherb Warehousing Administrative Selling Other Total
processing

$/case Percent $/case Percent S/case Percent $/case Percent S/case Percent S/case Percent $/case Percent S/case Percent

1965-66 .9982 99 .2656 106 .3872 112 .1234 100 ,1444 128 .1519 123 .3163 116 2.3870 107

1966-67 1.0208 101 .2117 85 .2759 80 .1053 86 .0766 68 .0935 76 .2825 104 2.0663 92

1967-68 1.0128 100 .2729 109 .3705 108 .1395 114 .1180 104 .1249 101 .2164 80 2.2550 101

1968-69 1.0279 102 .2776 111 .3380 98 .1112 91 .1203 106 .1169 95 .2481 91 2.2400 100

1969-70 1.0271 102 .2943 118 .3355 97 .1278 104 .1211 107 .1223 99 .3556 131 2.3837 107

1970-71 1.0627 105 .2881 115 .3769 109 .135/4 110 .1390 123 .1514 127 .2737 101 2.4272 109

1971-72 1.0771 107 .2666 107 .3728 108 .1147 93 .1623 143 .1270 103 .2646 97 2.3851 107

1972-73 1.1815 117 .2978 119 .4170 121 .1358 111 .7761 156 .1389 113 .2639 97 2.6110 117

1973-74 1.3285 131 .3865 155 .4864 141 .1930 157 .1521 135 .1279 104 .3483 122 3.0227 135

1974-75 1.6534 164 .3654 146 .5130 149 .2240 182' .1636 145 .1566 127 .3435 126 3.4194 153

1975-76 1.5213 151 .3394 136 .5468 159 .2005 163 .1247 110 .1490 121 .3622 133 3.2439 145

Basec 1.0106 100 .2501 100 .3445 100 .1228 100 .1130 100 .1234 100 .2717 100 2.2361 100

YTears prior to 1975-76 are taken from Tilley [2].
bInclude power, water, lights, steam, maintenance, repairs..royalties, taxes, insurance, rent and miscellaneous expenses.

CThe index for each item was computed as a percentage of the 1965-68 average cost (shown in the last row of the table).

Table 14.--Estimated average costs of processing, warehousing and
selling canned Florida citrus juices, excluding sugar,
in 12 46-ounce cases, 1961-62 through 1975-76 seasonsa

Season Orange Grapefruit Blended
juice juice juice

------------.-Dollars per case-------------

1961-62
1962-63
1963-64
1964-65
1965-66

1966-67
1967-68
1968-69
1969-70
1970-71

1971-72
1972-73
1973-74
1974-75
1975-76

1.57
1.79
1.78
1.66
1.75

1.72
1.91
1.90
2.02
2.02

2.05
2.14
2.43
2.91
2.89

1.54
1.72
1.72
1,62
1.70

1.68
1.88
1.86
1.98
2.06

2.06
2.16
2.52
2.87
2.82

1.55
1,74
1.75
1.64
1.74

1.70
1.91
1.91
2.00
2.00

2.05
2.15
2.50
2.93
2.89

aData for years prior to 1975-76 are taken from Tilley [2].

Table 15.--Estimated average costs of processing, warehousing and selling Florida canned sections and
chilled products, 1961-62 through 1975-76 seasonsa

Canned Canned Chilled Chilled Chilled
Chilled
grapefruit citrus grapefruit salad orange
Season sections salad sections juice

12/46 24/303 12/46 24/303 4/1 gal. 12/32 4/1 gal. 12/32 12/32

---------------------------------------Dollars per case-------------------------------------

1961-62 3.86 2.67 4.42 3.22 -- -
1962-63 4.27 3.04 4.93 3.58 4.47 -- 3.68 --
1963-64 4.29 3.01 4.52 3.44 4.85 3.30 -- -- 1.51
1964-65 3.98 2.94 -- 3.39 4.09 3.09 5.22 -- 1.39
1965-66 4.01 2.94 4.78 3.40 4.10 3.17 5.45 3.48 1.48

1966-67 4.02 3.00 4.63 3.36 3.85 3.00 5.05 3.63 1.31
1967-68 4.48 3.27 5.14 3.65 4.35 3.35 5.80 4.02 1.51
1968-69 5.06 3.66 5.78 4.11 4.72 3.95 6.18 4.46 1.54
1969-70 4.96 3.61 5.41 4.00 5.14 4.10 6.35 4.34 1.55
1970-71 5.50 3.78 5.62 2.24 5.55 4.43 6.98 4.90 1.66

1971-72 5.10 3.85 6.04 4.60 5.36 3.13 6.82 5.14 1.71
1972-73 5.16 4.25 5.92 4.32 4.90 5.02 6.65 5.45 1.75
1973-74 6.30 4.75 7.75 5.56 5.90 5.51 7.56 6.43 2.01
1974-75 8.19 5.78 8.75 6.15 7.16 5.96 8.05 6.41 2.26
1975-76 -- 5.77 -- 6.29 -- -- -- -- 2.47

years prior to 1975-76 are

from Tilley [2].

REFERENCES

[1] Florida Canners' Association. Statistical Summary, 1975-76
Season. Winter Haven: 1977.

[2] Tilley, Daniel S. Estimated Costs of Processing, Warehousing and
Selling Florida Citrus Products, 1974-75 Season. Food and
Resource Economics Department. Economic Information Report
52. Gainesville: July 1976.

This public document was promulgated at an annual cost of $968.00 or $0.97
per copy to report citrus processing research results to county agricultural
directors and firms and agencies in the citrus industry.

	Front Cover
	Abstract
	Acknowledgement
	Table of Contents
	Main
	Reference