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Richard L. Kimer n4 1, J I I1 r"L Q '.,. toj .,-onao- ic Information Re po i;, B% *. 7 ixO JU j A&s Oa s^ir- "-'"i C' ,S' *- <, _J S i - ,I *Y/ V ;1- - j0 4~ , , *-_I U 4i -We | , F, ;at 1' "n ,.7, 7 J * HUHE UBARY I t 1, 5 LI SIF.AS. U;. of Florida -> ,. i -0 .J . bod and Resource Economics Department ricultural Experiment Stations stitute of Food and Agricultural Sciences diversity of Florida, Gainesville 32611 July d Y i^Bfiv; ^ t ~s ', j 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. |