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Estimated costs of processing, warehousing and selling Florida citrus products
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Permanent Link: http://ufdc.ufl.edu/UF00026338/00004
 Material Information
Title: Estimated costs of processing, warehousing and selling Florida citrus products
Series Title: Economic information report
Physical Description: v. : ; 28 cm.
Language: English
Creator: University of Florida -- Food and Resource Economics Dept
Publisher: Food and Resource Economics Dept., Agricultural Experiment Stations, Institute of Food and Agricultural Sciences, University of Florida.
Place of Publication: Gainesville
Creation Date: 1976
 Subjects
Subjects / Keywords: Citrus fruit industry -- Estimates -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
serial   ( sobekcm )
 Record Information
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 001546941
oclc - 05037841
notis - AHG0479
lccn - 79641503 //r892
System ID: UF00026338:00004

Table of Contents
    Front Cover
        Front Cover
    Abstract
        Page i
    Table of Contents
        Page ii
        Page iii
    Main
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
    Reference
        Page 20
Full Text
,. C eggj oo

Richard L. Kimer


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.,-onao- ic Information


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bod and Resource Economics Department
ricultural Experiment Stations
stitute of Food and Agricultural Sciences
diversity of Florida, Gainesville 32611


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ABSTRACT


The costs of processing, warehousing and selling Florida citrus
products for the 1976-77 season are estimated to have increased from
1975-76 levels. The estimated total cost of producing 48 6-ounce cans
of orange concentrate increased to $3.49--an eight percent increase
from 1975-76 levels while the costs of producing single strength orange
juice in 12 46-ounce cans are estimated to have increased to $2.92--a
one percent increase from 1975-76 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, and to Ms. Earlene Lee for her clerical
and secretarial assistance.











TABLE OF CONTENTS


Page

SUMMARY . . .... . ........... 1

INTRODUCTION . .... . . . . . .

FROZEN CONCENTRATE . ..... ...... . 3

SINGLE STRENGTH JUICES AND GRAPEFRUIT SECTIONS . . 9

CITRUS FEED . . ..... . . .. 9

COST AND PRICE TRENDS . . .... .. . .. .. 9

REFERENCES . . . . . . 20


LIST OF TABLES

Table Page
1 Volume of citrus products produced by sample firms
relative to the total volume produced in Florida, 1975-77
season . . . . . . 2

2 Estimated costs of processing, warehousing and selling
Florida orange concentrate, 450 brix, 48 6-ounce cans in
cases, 1976-77 season with comparisons to 1975-76 season
levels . . 4

3 Estimated costs of processing, warehousing and selling
Florida frozen concentrate in cases, 450 brix, 1976-77
season . . . . 5

4 Estimated costs of processing, warehousing and selling
Florida frozen concentrate in cases, 450 brix, 1976-77
season . . . . . . 6

5 Estimated costs per gallon for processing, warehousing
and selling Florida frozen orange concentrate, 450 brix,
1976-77 season . . . . 7

5 Estimated costs per gallon for processing, warehousing
and selling Florida frozen concentrate, 580 brix, 1976-77
season . . . . . . 8






LIST OF TABLES (Continued)
Table Page
7 Estimated costs of processing, warehousing and selling
12 46-ounce cans of single strength Florida orange juice
in cases, 1976-77 season with comparisons to 1975-76
levels . . . .. 10

8 Estimated costs of processing, warehousing and selling
Florida citrus fruit juices, 1976-77 season ..... 11

9 Estimated costs of processing, warehousing and selling
Florida grapefruit juices and canned sections, 1976-77
season . . . 12

10 Estimated costs of processing, warehousing and selling
Florida chilled orange juice, 1976-77 season ..... 13

1 Estimated costs of processing, warehousing and selling
Florida citrus feed, in bulk, 1976-77 season with corm-
parisons to 1975-76 . . . . 14

12 Total cost for processing, warehousing and selling
Florida frozen, 450 brix, orange concentrate, 1965-66
through 1976-77 seasons ...... . 16

13 The relatives changes in the component costs that make up
the total cost of processing, warehousing and selling
48 6-cunce orange concentrate, 1965-66 th ,.i] 1976-77
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 1976-77 seasons 18

15 Estimated average costs of processing, warehousing and
selling Florida canned sections and chilled products,
1961-62 through 1976-77 seasons . . . .. 19


~_~














ESTIMATED COSTS OF PROCESSING, WAREHOUSING AND
SELLING FLORIDA CITRUS PRODUCTS, 1976-77 SEASON


R. Clegg Hooks and Richard L. Kilmer

.-.:' ,RY


The costs of processing, warehousing and selling Florida citrus
products for the 1976-77 season are estimated to have increased from
1975-76 levels. The estimated total costs of producing 48 six-ounce
cans of o-ange concentrate has increased to $3.49 -- an eight percent
increase front 1975-76 levels while the costs of producing single
strength orange juice in 12 46-ounce cans are estimated to have
increased t-- 2.92 a one percent increase from 1975-75 levels.

INTR .:_CTION


The p;r-,ose of this study was to develop estimates of processing
costs for Florida citrus products for the 1976-77 season. Citrus
processing cost data were obtained from 15 firms. The total volume
for each type of product and the percentage of total Florida production
processes by firms in the sample are shown in Table 1. The sample
firms represent a larger share of concentrate and ci.-iw!'rJ 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 1.--Volume of citrus products produced by sample firms relative to
the total volume produced in Florida, 1976-77 season


Total
produced

Fin da
Floridaa


-----Equivalent units-----


Percentage
of total
Flori da
production
produced by
sample firms


Percent


Sample
fi rms
producing
each
product


No.


Oranre concentrate
(gallons)

Grapefruit concentrate
(gal Ions)

Canned single strength
orange juice
(24/2 equivalent)

Canned single sLtrength
grapefruit juice
(24/2 equivaleni;

Canned blended siglre
strength juice
(24/2 equivalent)

Canned grapefruit
sections
(24/2 equivalent)

Chilled orange juice


Chilled grape-fruit
jul ci;
(gal Ions)


68,489,047


4,264,629


4,446,868



7,4.88,304


430,968



672,806


8,354,971


2,025,582


158,035,253


11,258,347


10,766,872



18,808,995


1 ,308,315



1,722,075


124,577,717


17,581 ,748


aReported by the Florida Canners' Association [1].


Product


Total
produced
by sample
fi rms


43 .





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 productss.
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 1976-77
sample which contains two firms not previously included,
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 CONCENTF.,


The estimated costs of processing, warehnusing and selling orange,
grape -i;. n -._i e:der d frozen concentrate in various retail and bulk
forms are sh'- in Tables 2, 3, 4, 5 and 6
Estimated average costs for packing a4 six-ounce cans of orange
concentate t-& cases are shewn in Table 2 along with item-by-item
comparisons :- 1975-76 estimates. Total costs were estimated at $3.49
per case -- -a eight percent increase above 1975-76 estimates. The
items wic-, t.e largest increases were: labor expense, up 31 percent;
other pri.cssiCg expense, up 15 percent; and selling expense, up
35 perces:.
labe.s 3, 4, 5 and 6 show costs of packing other retail and
institu_.on a packages as well as bulk concentrate in drums.
T e :.-es in costs for the other retail pack s are similar -to
those si.wn for the 43 six-ounce cans in cases. The total estimated
costs for 24 12-ounce, 24 16-ounce and 12 32-ounce cans in cases
increased nine, seven and fourteen percent above 1975-76.
Bulk 450 brix orange concentrate costs shown in Table 5 were up
eighteen percent from 1975-76 estimates while the cost for equivalent
gallons for all packs (excluding materials) is estimated to have




Table 2.--Estimated costs of processing, warehousin and selling Florida
orange concentrate, 450 brix, 48 6-ounce cans in cases, 1976-77 season
with comparisons to 1975-76 season levels



Frozen orange concentrate 48 6-oz.

Cost group Estimated cost
Change
in cost
1976-77 1975-76a


Number of plants 9 9
Number of cases per plant 562,612 688,610


-----Cost per case------ Percent.

Hateri als
Cans $1.3473 $1.4063 4
Cartons .1035 .1141 9
Labels .0000 .0000 0
Other .0048 .0009 ----
Total materials $1.45A '1.5213 4

Process; nj 14bo;
Direct $0.2683 $0.2224 +21
Indi-rec .1144 .0745 +54
Pa;yrol taxes S ins. .0636 .0425 +50
Total processing labor $ .4463 $0.3334 +31

Other r_2 Lce sinj xpvGense
owe li 't. after $0.1571 $0.1408 +12
MaiT. pn.c; a reoairs .1412 .1331 + 6
Deprec:i i-n A rint .1017 .094 +14
Royalties on machinery .0809 .0724 -12
Taxes "n;-. .--ce .0331 .0253 +31
MiscellanoCs expense .1162 .0A58 +35
Total 't-er processing $0.6312 $0.5468 +15

Total roc.-n_ expense $2.5322 $2.4075 5
T'a reh1oui. nc j."Oa nse
cT : .e s labor & taxes $0.0755 $0.0534 +19
Other wre .o'sing expense .1441 371 + 5
Total wrS;,ouse expense $0.2196 ,. + 9

Administrat7e exopenseb $0.1460 $0.1247 +17


roer-- $0.r1 U6 $0.0721 +40
Other sl;ng expensec .00 .0769 +30
Total selling expense $0.2006 )0.1490 +35

Other exenise
A-.ver-' sin- .tax & insp. $0.2561 S0.2215 +16
O h r ( t. misc. dedct.) .1339 .1406 5
Total other expense $0.39 $ .3622 + 8

Total- cst $3.4884 $3.2439 + 8



"From Hooks [2].

bIn this and the following tables administrative expense include management
and office salaries, office expense, telephone and telegraph, and travel.
Cin this and the following tables selling expense excludes allowances,
discounts, and brand royalties.







Table 3.-- Estimated cost of processing, v'arehousing and
selling Florida frozen concentrate in cases,
45 brix, 1976-77 season

Item Orange Corncentrate

Container size 24/12 12/32

Number of plaits 9 10
Average number of cases per plant 827,491 !53045

-----Cost per case----
ateri als
Ca ns $ .951i $0.7847
Car tons .i / .1176
Labels .0000 .0000
Oer .0059 .0145
Tctal material' 01s $1.7. .916
Precessi r labor
G ^ --0.2!c, 6 8 $0. 3613
d eI .1157 .1584
FPyro raxes & ins. .0642 .os1.
ot:-i processing 1cbor $0 .4467 $0.6107
Other orocessin q expense
eP5.. Slh ts, w $0.1560fe $0.2340
a-intenanc & repairs .1415 .1982
Dernc action & rent .1081i .1472
Ro.' ie on machinery .031 1083
x- a insurance .033 .0431
isce a aneous .1154 1507
Tcta other processing expense '. .-- 0.o815
Tol r ,cessi g expense $2.'1409 $2.4090
', e .' :.: ex ens e
e. shippng, labor & taxes $0.0751 $0.0
O ,er warehouse expense .1439 .1811
Tota; warehouse expense $0.2190 $0.2891
Ad inistr~tive exei se $0.1428 $0.1980
Sel inq expense
BrQ- rage $0.0995 $0.1503
Other selling expense .0992 .1454
Total selling expense $0 1937 $0.2957
Other expense
~- -sig r insp. $0.2575 $0.3430
Other (int., misc. deductions) .1351 .1544
Total other expense $0.3926 -0.4974
Total cost $3.0940 $3.6892







Table 4.--Estimated costs of processing, warehousing and selling
Florida frozen concentrate in cases, 450 brix, 1976-77
season

Concentrate
Item
Orange Grapefruit

Container size 24/16 24/6

Number of firms 9 5
Average number of cases per firm 296,456 34,341

------Cost per case-------
'te riadls
Cans $1.2865 $0.6700
Cartons .1262 .0875
Labels .0000 .0000
Other .016 .0035
Total materials $1.4243 $0.7610
Processing lab or
ODirect $0.3557 $0.1343
Indirect .1611 .0514
Payroll taxes & ins. .0881 .0336
Total processing labor 30.6049 0.2293
uOthe processing expense
Power, lights water $0.21'i4 $0,0700
Maintenance & repair .18410 .0656
Depreciatio- & rent .1391 .0497
Royalties on machinery .1094 .0246
Taxes 8 insurance .0454 .0143
i scel I ar;eoujs expense .1501 .04, 77
Total other processing expense .0.8394 90.27i9
Total processing expense $2.8686 $1.2622
Warehouse expense
Warehouse & shipping, labor & taxes $0.0926 $0.0447
Other ;warehouse expense .1776 .0834
Total warehouse expense 50.2702 $0.1281
Administrat-ve expense $0.1849 $0.0593
Selling expense
Brokerage $0.1224 $0.0459
Other selling expense .12G2 .0475
Total selling expense 0-486.0934
Other expense
Advertising tax & insp. $0.3404 $0.1540
Other (int., misc. deductions) .1692 .0546
Total other expense 50.5096 $0.2086
Total cost $4.0819 $1.7516







Table 5.--Estimated costs per gallon for processing, warehousing and
selling Florida frozen orange concentrate, 45 brix,
1976-77 season


Concentrate
Item ________________________
Gallons, 450 Equivalent gallon
in drums 450 all packs

Number of firms 8 11
Average number of gallons per firm 2,978,798 6,226,277
--..-------Cost per gallon--------
Ma te ri.- s
Drus ear.d liners (total) $0.0221 $0.0000
Processing, labor
Direc-t $0.10l $0.1124
Indire~ .0434 .0489
Prv;-;,; taxes, insurance .0241 .0271
o:-l p-rocessing labor $0.1686 -. 84
her ,ocssii g expense
P i o 1. lts water $0.0770 $0.0726
Mair. ;- e & repair .0551 .0602
p reci on rent .0541 .0484
Roya-ties on machinery .0354 .0350
Taxes insurance .0168 .0153
iis c eous 5.0498 .0518
Tc -t.er processing $o0.282 $0.2843
Total 1 sing expense $0.4789 $0.4727
War eho:se e :.earnse
-e. i shipping, labor & taxes $0.0278 $0.0311
OtheL -arehouse expense .0571 .0600
T i- rehouse expense .0849 $0.09il
Ad~in's a-Le expense0680 $0. 0 0.0651
Se1];i::1seexpen
Br ,- $0.0163 $0.0342
Otn- sel ing expense .0179 .0348
To rl- selling expense 0.0342 $0.0690
Other e- cnse
advertisingg tax & insp. $0.1193 $0.1154
Other (int. misc. deduction) .1026 .0724
Tol other expense $0.2219 0.1878
Total cots $0.8879 $.8867






Table 6.--Estimated costs per gallon for processing, warehousing and
selling Florida frozen concentrate, 580 brix, 1976-77 season


Item Concentrate

Orange Grapefruit

Gallon, 580 Gallo, 580
in drums in drums

Nu'.ber of firms 3 4
Average number of gallons per firm 1,316,428 142,625

---------..Cost per galion.-----

;:.s and liner (total) $0.0378 $0.i268
Pr :essing labor
Sr$ct $0.1457 $0.1667
Indirect .0533 .0950
SPyroll t axes, insurance .0279 .0490
Total processing labor -0.2269 .0_3107
Other processin eense
Poler, ight-s, water $0.0985 $0.1348
Maintenance & repair .0892 .0704
Depreciation & rent, .0932 .0707
Royalties on machinery .0501 .0523
Taxes & insurance .0139 .0149
Miscellaneous expe nse .0486 .0458
Total other processing 0.3935 $0. 3889
Total Drocessinl expense $0.6 5 2 $0.8264
aiarehouse e cens
:. g, labor & taxes $0.0394 $0.0437
Other warehouse expense .0766 .0556
Total wa rehouse expense 10.1160 $0.0993
Administrative expense $0.1033 $0.0919
Se Cli e expose
brokerage $0.0178 $0.0144
Oxher selling expense .0175 .0163
Total selling expense $0.0353 $0.0307
Other expense
HAdvertising tax & inspection $0.1681 $0.1923
Other (int., misc. deductions) .0475 .0374
Total other expense $0.2156 _0.2297
Total cost $1.1284 $1.2780





increased seventeen percent.
The costs of processing 580 brix bulk orange and grapefruit con-
centrate are shown in Table.6.


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 1976-77 with comparisons to 1975-76 estimates.
Labor expense was the item showing the largest absolute increase, while
cost changes for other items were small and mixed (some increasing others
decreasing) with the outcome being a one percent increase in total costs
over 1975-75 estimates.
Tables 8 and 9 show estimated costs for other retail packages of
orange, grap-,ruit and blended juices. Table 10 reports the weighted
average cost of producing chilled orange juice for the three sample
firms prcdu rG these products.


CITRUS FEED


The st'i.ted costs of processing citrus feed in bulk are shown
in Table 11
Citr-s feed processing costs per ton for 1976-77 are estimated
to be $3.,23, ,jst slightly lower than for 1975-76.


COSTS AND PRICE TRENDS


Costs for processing, warehousing and selling 48 six-ounce cans of
concnta'~ e ir cases remained relatively stable through the 1971-72
season (Tsie 12). From 1971-72 through 1974-75, costs increased by
$1.03 (46 points) while average retail price increased $1.01 (3 points).
Since 1974-75, costs have increased 7 cents (3 points) while the average
retail price has increased $2.71 (33 points).




10


Table 7.--Estimated costs of processing, warehousing and selling 12 46-
ounce cans of single strength Florida orange juice in cases,
1976-77 season with comparisons to 1975-76 levels


Orange juice 12 46-oz.
(excluding sugar)
Cost group
Season
Change
1976-77 1975-76 in cost
Nur e of plants 4 6
Avera number of cases per plant 662,892 496,539

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

UC' $1.53-41 $1.5440 1
.Car on .1372 .1589 -14
Labels and other .1073 .0849 +26
To-cei materials 7786 $1 Ti878 -.5
Processin3 Labor
Di rect $0.1431 $0.1255 +-14
Indirect .0702 .0519 +35
Payroll taxes & ins. .0399 .0317 +26
Total processing labor .2532 0.2091 +2
Other processing expense
Power, lights, water $0.0740 $0.0662 +12
Maintenance & repairs .0823 .0890 8
Depreciation & rent .0626 .0607 + 3
Royalties on machinery .0399 .0370 + 8
Taxes & insurance .0144 .0145 1
Miscellaneous expense .0537 .0474 +13
Total other processing $0.3269 $0.3 8 + 4
To ta pressing expense $2.3587 $2.3117 + 2
Warehouse expense
I1hse. & ship., labor & taxes $0.1006 $0.0825 +22
Other warehouse expense .0956 .1071 -11
Total warehouse expense -s.1962 "0.1896 + 3
Administrative expense $0.0736 $0.0812 9
Seli ne expense
B ro e age $0.0696 $0.0659 + 1
Other selling expense .0561 .0654 -14
Total selling expense U21257 10.313 .. 4
Other expense
Advertising tax & insp. $0.1162 $0.1079 + 8
Other (int., misc. deductions) .0491 .0676 -27
Total other expense -0.1653 o$0.1755 6
Total cost unsweetened $2.9195 $2.8893 + 1




11


Table 8.--Estimated costs of processing, w\;vrehousing and sellirig
Florida citLrus fruit juices, 1976-77 season

Bi en deed
Orange j uicef
jui ce

Container size 48/6 24/2 12/46

NumLber of plants 4 3 3
Average number of cases per plant 220,022 40,230 11, 667

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


Can
Cartons

SLabel-
Other
lotzn noterials
P ro rc S I: 3 5 *-

Ini r ,l
Pay .il~ t-/es & ins.
.-t. : ocessin g labor


:,;itnte o;c;;C; & repairs




.Tot.c treer processing
To st I q e ? si p e n s e

1 se. a sipping, labor & taxes
O^ -,arehouse expense
Tct5"i a 'arehosuse expense
Adr i s:ti ve expense


: :,e;,- se -iny expense
Total selling expense
Oth r expense
Ade-tsing tax & insp.
Other (int., misc. deductions)
Total other expense


$2.0689
.1035
.0000
.0049
$2.1773

$0.0973
.0445
.0273
$071691

$0.0382
.04193
.0356


S.02
$0.1 71
$2.5179

$0.0869
.0797
50 .166 6
$0.0454.

$0. 0643
.0454
$0.1097'

$0.0623
i0293
S0.0916


$1.6745
.1403
101 5
.0227

1 .9390 '

$0.1590
.0784
.0463
.0.2837

$0.068o
.0595
.0643
.0312
.r I37
0445
SO.281 8
$2.5045

$0.1174





'0. l07
.1- 7 -
.0.2181
$0.0565

$0.0684



$0.0924
.04465
%?O.T370c


$ .5124
.1331
.0959
.0 01
51.751 5

$0.1514
.0727
.0420
S0.2561

$0.0850
.0658
.0812
.0238
.0168
.0492
$0.3227
$2.3403

$0.0822
.0747
07 1 569
$0.0550

$0.0681
.0508
$0.1 t 189

$0.1293
.0669
$0.1962


Jot 71 cost uns 4w- eenL d 2 J03186


3







Table 9.--Estimated costs of processing, warehousing and selling Florida
grapefruit juices and canned sections, 1976-77 season


Item


Grapefruit juices


container size

Nubeir of plants


48/6


Grapefrui
sections


24/2 12/46


average number of cases per plant 286,202 51,858 960,8,33 160


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


a at a aas
C -t-ns

0
oTtal materials
Pro sing la bor

Sec-ion -zing
Oth er direct
Indirect labor

T;.a1 procession labor
Othen processi, e'ense

Maintenance & repairs

Royalties on achiJry
Taxes & ins;,urance
Miscel]aneou :;
Total other. p-roessing
Tetal processi- es senses e
.War use expe:ns
'se-. S sh~ppng labor & taxes
0,ear warehouse expense
ota'i wa,,reihouse expense
A~di ni strat'i ve expense
See 'pj e xpe nse
Brokerage
Othier selling expense
o;tal selling expense
t er, expense
Adverti sing tax & insp.
Other (int., misc. deductions)
Total other expense
Total cost unswe ,_eened


$2.0672
.1035
.0000
.0054
2.1 761

$ -

.0989
.0456
.0280
0.1725

$0.0394
.0422
.038 3
.0114
.0078
.0271
$ 1 662


$1.7435
.1429
.1070
.0168
.Oluc0
$2 0 102



.1476
.0716
.0412


$. 3606
o064i
.05965
.0o 30
.011 9
.0450
50726u{


$2.5148 $2.5310


$0. 0O89
.0809
$0. 1698


$0.1145
.1045
TO. 21908


$1.5404
.1376
.0949
.0096
$1.7825

$ -.

.1409
.0688
.0404
.2501

$0.0715
.0872
.0569
.0294
.0161
.0531i
0. 3143


$1.4826
.1246
.0684
.0659
$1 7415

$0. 734
.8457
.5878
.2585
.3293
2 .19 47

$0.2078
.1573
.1372
.3888
.0767
.1318
$1 .0996


$2.3469 $5.0358


$0.1057
.0950
ill -


$0.0934
.0813
$0. 747


$0.0429 $0.0669 $0,0773 $0.0601


$0.0585
.0422


$0.0675
.0290
$0.0965


$0.0581
.0421
0. 1002

$0.0980
.0349
-0.1 329


$0.0703
.0511


$0.1248
.0/80
0.1_ 728


$0.0549
.0437
$0.0986

$0.0896
.1288
$0F2184


$2.9247 $3.0500 ,$2.9191 $5.5876


3 5 3


1 ,460







Tabe 10.---Estimated costs of processing, warehousing and selling
Florida chilled orange juice, 1976-77 season

Item Chilled orange juice

Container size 12/32 3 6/64

Numt.ber of plants 3 3
Average number of cases per plant 288,354 588,l18

-- -Cost.per case- -
Materials
Cans $0.4635 $0.4575
Ca rto .5179 .5392
Labels .0338 .0204
Othr .0726 0519
qota m6teri as $1.0878 1 .0590


Indi-ect bor. .0561 .0587
ayro t r es, ins. 0371 .038
[otoal :ocessing labor $0.2,02 $0.2411
Other iroc-ssisnq exDens -
Power1, lihs, water & $0.1825 $0.1620
Maintenance & repairs .0542 .0523
Depreciation & rent .0403 .0410
Ro .-tieS oin machinery .0171 .0203
T a .:: irs rance .0150 .0138
Miscells-.ous .0485 .0603
,ot,' o,:iter processing (0.3577 06.3597
Total rocein expense $.6757 $1.6698

i,, ifi5iTniq, labor & taxes $0.1255 $0.1333
0 ,: e a. .. 3l' .se e, expense .0883 .1063
.:,:1 ,-rehouse expense $0.?-i2 8 -$ .2396
A ni rra t e _e en se $0.0680 $0.0697
Se I i n r i e x-, se
S$0.0570 $0.0570
Ot:,.:- sei-ing ex'en see 1383 .^8100
n j e e ) 100
Tot L selling expense 5.1953 $0. 1650
Other e.xpens e
Advertising tax & insp. $0.0951 $0.0896
lOher (int. Misc. deductions) .0233 .0231
iotal other expense $0.1184 $0.1127
Total cost unsGweetened $2.2722 $2.2568




14


Table 11.--Estimated costs of processing, warehousing and selling
Florida citrus feed, in bulk, 1976-77 season with
comparisons to 1975-76

Season .Change
Item in cost
1976-77 1975-76 i

Number of plants 11 9
Avg. number of tons produced per plant 34,356 31,390

----Cost per ton---- Percent
Materials total $ 1.02 $ 0.92 +11
Processing Labor
Direct $ 4.17 $ 4.36 4
Indirect .. 1.10 1.36 -19
Payroll taxes & insurance .82 .83 1
Total processing labor $ 6.09 $ 6.55 7
Other processing expense
Power, water, lights, steam $16.36 $13.70 +19
Maintenance & repairs 3.67 6.24 -41
Depreciation & rent 4.40 4.18 + 5
Taxes & insurance .97 .56 +73
Miscellaneous expense 1.30 1.26 + 2
Total other processing expense $26.70 $25.94 + 3
Total processing expense 33.81 $33.41 + 1
Warehouse expense
Whse. & shipping, labor & taxes $ .82 $ 0.80 + 3
Other warehouse expense .77 1.07 -28
Total warehouse expense $ 1.59 T 1.87 -15
Administrative expense $ 1.00 $ 1.06 6
Selling expense
Brokerage $ .29 $ 0.34 -15
Other selling expense .29 .36 -19
Total selling expense $ .58 $ 0.70 -17
Other expense total $ 1.25 $ 1.29 3
Total costs $38.23 $38.33 0

aReported by Hooks [2].
Does not include bag costs.





SChanges in the cost categories that make-up the total processing,
warehousing and selling expenses for 48 six-ounce cans of orange con-
centrate are shown in Table 13. ,Mterials cost decreased while the
remaining cost categories increased relative to 1975--76.
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 1976-77 seasons


Cost per case,
48/6-oz.a


Actual
$2.38
2.07
2.26
2.24
2.38

2.43
2.39
2. 1
3.02


3.42
3'.-9 G


Index
107
92
101
100
107


109
107
117
135
153

145
156


Average retail price
per 48/6-oz. cans
in cases


Actual
$ 8.80
7.00
8.60
9.76
8.68


8.88
9.84
9.56
9.55
10.09

10.66
12.80


Indexc
708
86
106
120
107

109
121
118
S17
124

131
157


fYears prior to 1976-77 are from Hooks [2].

Reported i.;; the Market Research Corporation of America.

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


Season


1965-66
1966-67
1957-68
1968-69
1969-70

1970-71
1971-72
1972-73
1973-741
1974-75

1975-76
1976-77









Table 13.--The relative chan ge in the cor'poilent costs that ..ike up the total cost of process
orange' concentrate, 1965-66 through 1T76-77 seasons-


Season


SMateri al S


Labo r


Other
process ing


I!'i 'e; h u s i ) g


Admini s rati ve


nig, warehousing and selling 4S/6-ounce


Selling


Other


.Total


Percent S/case

106 .3872

85 .2759

109 .3705

111 .3380

118 .3355

115 .379

107 .3728

119 .4170

155 .4854

146 .5130

135 .54G8

178 .6302

100 .3445


aYears prior to 1976-77 are taken from Hooks [2].


Include 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 (sho'.n in the last row of the table).


1955-55

1965-57

1957-.58

1968-69

1969-70

1970-71

1971-72

1972-73

1973-74

1974-75

1975-76

1976-77

Basec


S/case

.9982

1.0208

1.0128

1.0279

1.0271

1 .0 2?7

1.0771

1 18 15

1.3285

1 .6534

1 .5213

1.4557

1.0106


Percent

99

ini
101

100

102

102

105

107

117

131

164

151

144

100


j/case

.2656

.2117

.2729

.2776

.2943

.28GG

.2060

.2978

.3855

.3551

.3394

.4463

.2501


Percent

112

80

103

98

97

109

108

121

141

149

159

183

100


Scas e

.1234

.1053

.1395

.1112

.1278

.13542

.1147

.1358,

.1930

.2240

.2005

.2196

.1228


Percent t

100

85

114

91

104

110

93

111

157

1862

163

179

100


.1444

.0766

.1180

.1203

.12 1
.12 311
.1390

.1523

.1 761

.1521

.1636

.1247

.1450

.1 130


Percent

128

68



106

107

123

143

156

135

145

110

129

100


$/ca se

.1519

.0935

.1249

.1156

.1223

.1514

.1270

.1389

.1279

.1566

.1490

.2005

.1234


Percent

123

76

101

95

99

127

103

113

104

127

121.

163

100


$/case

.3163

.2825

.2164

.2481

.3556

.2737

.2546

.2639

.3483

.3435

.3622

.3900

.2717


Percent

115

104

80

91

131

101

97

97

122

126

133

144

100


S/cose

2.3870

2.0663

2.2550

2.2400

2.3837

2.4272

2.3351

2.6110

3.0227

3.4194

3.2439

3.4884

2.2361


Percent

107

92

101

100

107

109

107

117

135

153

145

15

100


_~i_~ I__________ ~I_ ______~__~




18



Table 14.--Estimated average costs of processing, warehousing and
selling canned Florida citrus juices, excluding sugar,
in 12 46-ounce cases, 1961-62 through 1976-77 seasons


Season Orange Grapefruit Blended
juice juice juice

-----.--.----------Dollars per case----------------
1961-62 1.57 1.54 1.55
1952-63 1.79 1.72 1.74
1953-64 1.78 1.72 1.75
7564-65 1.66 1.62 1.64
1 65-66 1.75 1.70 1.74

195 -67 1.72 1.68 1.70
1 57-68 1.91 1.88 1.91
1 36-69 1.90 1.86 1.91
196,-70 2.02 1.98 2.00
1970-71 2.02 2.06 2.00

1971-72 2.05 2.06 2.05
1972-73 2.14 2.16 2.15
1973-74 2.43 2.52 2.50
1974-75 2.91 2.87 2.93
1975-76 2.89 2.82 2.89

1976-77 2.92 2.92 2.87


aData for years prior to 1976-77 are taken


from Hooks [2].





Table 15.---Estimated average costs of processing, warehousing iand selling Florida canned sections
and chilled producLs, q161-62 through 1976-77 seasons.


Canned
grap' f'ruit

unsw ic Lened
12/46 24/303


C :rn
ci trust
t lad


12/46 24/303


Chill ed
crapc fori it
;s c L i o I


4/1 qal .


12/32 4/1 gal. 12/32 12/32


- ------------------------------------Dollars Jer case---


5.22
5.45

5.05
5.80
6.18
6.35
6.98

6.82
6.65
7.56
8.05


3.68


3.48

3.63
4.02
4.46
4.34
4.90


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

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

1971-72
1972-73
i973-74
1974-75
1975-76

1976-77


years prior to 1976-77 are from Hooks [2].


Season


Chilled
salad


Chi lled
orange
juice


3.85
4.27
4.29
3.98
4.01

4.02
4.48
5.06
4.96
5.50

5.10
5.16
6.30
8.19


7.46


4.42
4.93
4.52

4.78

4.63
5.14
5.78
5.41
5.62

6.04
5.92
7.75
8.75


2.67
3.04
3.01
2.94
2.94

3.00
3.27
3.66
3.61
3.78

3.85
4.25
4.75
5.78
5.77

5.59


3.22
3.58
3.44
3.39
3.40

3.36
3.65
4.11
4.00
2.24

4.60
4.32
5.56
6.15
6.29


4.47
4.85
4.09
4.10

3,85
4.35
4.72
5.14
5.55

5.36
4.90
5.90
7.16


3.30
3.09
3.17

3.00
3.35
3.95
4.10
4.43

3.13
5.02
5.51
5.96


5.14 1.71
5.45 1.75
6.43 2.01
6.41 2.26
-- 2.47

2.27


1.51
1 .39
1.48

1 .31
1.51
1.54
1.55
1.66












REFERENCES


[1] Florida Canners' Association. Statistical Summary, 1976-77
Season. Winter Haven: 1978.

[2] Hooks, R. Clegg and Richard L. Kilmer. Estimated Costs of
Processing, Warehousing and Selling Florida Citrus Prod-
ucts, 1975-76 Season. Food and Resource Economics
Department. Economic Information Report 78. Gainesville:
July 1977.






























This public document was promulgated at an annual cost of $911.00 or
$0.76 per copy to report citrus processing research results to county
agricultural directors and firms and agencies in the citrus industry.