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Estimated costs of processing, warehousing and selling Florida citrus products
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Permanent Link: http://ufdc.ufl.edu/UF00026338/00005
 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: 1977
 Subjects
Subjects / Keywords: Citrus fruit industry -- Estimates -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
serial   ( sobekcm )
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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: UF00026338:00005

Table of Contents
    Front Cover
        Front Cover
    Abstract
        Page i
    Acknowledgement
        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
    Reference
        Page 18
Full Text

R. Clegg Hooks
Richard L. Kilmer


Economic Information
Report 123


Estimated Costs of Processing,
Warehousing and Selling
Florida Citrus Products,
1977-78 Season


Food and Resource Economics Department
Cooperative Extension Service
Institute of Food and Agricultural Sciences
University of Florida, Gainesville 32611


November 1979















ABSTRACT


The costs of processing, warehousing and selling Florida citrus
products for the 1977-78 season are estimated to have increased from
1976-77 levels. The estimated total cost of producing 48 6-ounce
cans of orange concentrate increased to $3.63--a four percent increase
from 1976-77 levels while the costs of producing single strength orange
juice in 12 46-ounce cans are estimated to have increased to $3.19--a
nine percent increase from 1976-77 levels.


Key words:
processing costs,


citrus marketing, citrus processing, marketing margins,
citrus.


ACKNOWEDGEMNTS


for
and


We wish to express our appreciation to the participant processors
their excellent cooperation, and to Mrs. Theresa Zerr for her clerical
secretarial assistance.















ABSTRACT


The costs of processing, warehousing and selling Florida citrus
products for the 1977-78 season are estimated to have increased from
1976-77 levels. The estimated total cost of producing 48 6-ounce
cans of orange concentrate increased to $3.63--a four percent increase
from 1976-77 levels while the costs of producing single strength orange
juice in 12 46-ounce cans are estimated to have increased to $3.19--a
nine percent increase from 1976-77 levels.


Key words:
processing costs,


citrus marketing, citrus processing, marketing margins,
citrus.


ACKNOWEDGEMNTS


for
and


We wish to express our appreciation to the participant processors
their excellent cooperation, and to Mrs. Theresa Zerr for her clerical
secretarial assistance.















TABLE OF CONTENTS


Page

SUMMARY . . . . . . 1

INTRODUCTION ......................... 1

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

SINGLE STRENGTH JUICES . . . . 9

CITRUS FEED . . . . . . 9

COST AND PRICE TRENDS . . . . 9

REFERENCES .. .. ... ..... .. .. ..... 18

LIST OF TABLES

Table Page
1 Volume of citrus products produced by sample firms
relative to the total volume produced in Florida, 1977-78
season . . . . .. . 2
2 Estimated costs of processing, warehousing and selling
Florida orange concentrate, 450 brix, 48 6-ounce cans in
cases, 1977-78 season with comparisons to 1977-76 season
levels . . . . ... . 4
3 Estimated costs of processing, warehousing and selling
Florida frozen concentrate in cases, 450 brix, 1977-78
season . . . . . 5
4 Estimated costs of processing, warehousing and selling
Florida frozen concentrate in cases, 450 brix, 1977-78
season . . . . . .. 6
5 Estimated costs per gallon for processing, warehousing
and selling Florida frozen orange concentrate, 450 brix,
1977-78 season ..... .. . . . 7
6 Estimated costs per gallon for processing, warehousing
and selling Florida frozen concentrate, 580 brix, 1977-78
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, 1977-78 season with comparisons to 1976-77
levels . . . . ... . .. 10

8 Estimated costs of processing, warehousing and selling
Florida citrus fruit juices, 1977-78 season . .. 11

9 Estimated costs of processing, warehousing and selling
Florida grapefruit juices, 1977-78 season ...... 12

10 Estimated costs of processing, warehousing and selling
Florida citrus feed, in bulk, 1977-78 season with
comparisons to 1976-77 season . . ... .13

11 Total cost for processing, warehousing and selling
Florida frozen, 450 brix, orange concentrate, 1965-66
through 1977-78 seasons . . . 14

12 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 1977-78
seasons . . . . ... ..... .. 15

13 Estimated average costs of processing, warehousing and
selling canned Florida citrus juices, excluding sugar,
in 12 46-ounce cases, 1961-62 through 1977-78 seasons 17


















ESTIMATED COSTS OF PROCESSING, WAREHOUSING AND
SELLING FLORIDA CITRUS PRODUCTS, 1977-78 SEASON

R. Clegg Hooks and Richard L. Kilmer


SUMMARY


The costs of processing, warehousing and selling Florida citrus
products for the 1977-78 season are estimated to have increased from
1976-77 levels. The estimated total costs of producing 48 six-ounce
cans of orange concentrate has increased to $3.63--a four percent
increase from 1976-77 levels while the costs of producing single
strength orange juice in 12 46-ounce cans are estimated to have
increased to $3.19--a nine percent increase from 1976-77 levels.


INTRODUCTION

The purpose of this study was to develop estimates of processing
costs for Florida citrus products for the 1977-78 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 chilled
juices were not reported this year because of lack of participation
by chilled juice firms.
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. KIIIER 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, 1977-78 season


Percentage Sample
Proct Total Total of total fi
produced produced Florida producing
by sample in production each
firms Floridaa produced by prouc
product
sample firms

-----Equivalent units----- Percent No.

Orange concentrate 61,914,735 161,203,606 38 9
(gallons)
Grapefruit concentrate 2,843,791 13,692,707 21 7
(gallons)
Canned single strength 5,687,536 11,654,185 49 6
orange juice
(24/2 equivalent)
Canned single strength 6,424,985 16,788,758 38 6
grapefruit juice
(24/2 equivalent)
Canned blended single 520,923 1,663,617 31 4
strength juice
(24/2 equivalent)


aReported by the Florida Citrus Processors 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.
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 1976-77 estimates. Total costs were estimated at $3.63
per case --a nine percent increase above 1976-77 estimates. The
items with the largest increase were: other processing expense, up
nine percent; and selling expense, up twelve percent.
Tables 3,4,5 and 6 show costs of packing other retail and in
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
increased four, one and five percent above 1976-77.
Bulk 450 brix orange concentrate costs shown in Table 5 were up
two percent from 1976-77 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, 45 brix, 48 6-ounce cans in cases, 1977-78
season with comparisons to 1976-77 season levels

Frozen orange concentrate 48 6- oz.

Estimated cost ha
Change
in cost
1977-78 1976-77a


Number of plants 8 9
Number of cases per plant 540,740 562,612


---Cost per case -


Materials
Cans
Cartons
Labels
Other
Total materials
Processing labor
Direct
Indirect
Payroll taxes & Ins.
Total processing labor
Other processing expense
Power, lights, water
Maintenance & repairs
Depreciation & rent
Royalties on machinery
Taxes & insurance
Miscellaneous expense
Total other processing
Total processing expense
arehousing expense
Whose. & shipping, labor & taxes
Other warehousing expense
Total warehousing expense
Administrative expense
Selling expense
Brokerage c
Other selling expense
Total selling expense
Other expense
Advertising tax & insp.
Other (int., misc. deductions)
Total other expense
Total cost -znsweetened


$1.4011
.0956
.0000
.0082
$1.5049

$0.2553
.1261
.0702
$0. 4517

$0.1673
.1573
.1223
.0819
.0328
.1238
$0.6854
$2.6420

$0.0763
.1441
$0. 2204
$0.1323

$0.1244
.0995
$0.2239

$0.2474
.1625
$0.4099
$3.6285


$1.3473
.1036
.0000
.0048
$1.4557

$0.2683
.1144
.0636
$0.4463


Percent

+ 4
- 8
0
+ 71
+ 3


$0.1571 +
.1412 +
.1017 +
.0809 +
.0331
.1162 +
$0.6302 +
$2.5322 +


$0.0755
.1441
$0.2196
$0.1460

$0.1006
.1000
$0.2006

$0.2561
.1339
$0.3900
$3.4884


- 4
+ 21
+ 5
+ 4


arom 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, warehousing and
selling Florida frozen concentrate in cases,
450 brix, 1977-78 season


Item Orange Concentrate

Container size 24/12 12/32

Number of plants 8 8
Average number of cases per plant 914,631 237,532

Materials -----Cost per case-----
Materials
Cans $0.9772 $0.8518
Cartons .0933 .1131
Labels .0000 .0000
Other .0058 .0094
Total materials $1.0763 $0.9743

Processing labor
Direct $0.2557 $0.3477
Indirect .1227 .1700
Payroll taxes & ins. .0688 .0995
Total processing labor $0.4472 $0.6172

Other processing expense
Power, lights, water $0.1643 $0.2211
Maintenance & repairs .1623 .2318
Depreciation & rent .1248 .1725
Royalties on machinery .0816 .1158
Taxes & insurance .0327 .0436
Miscellaneous .1268 .1821
Total other processing $0.6925 $0.9669

Total processing expense $2.2160 $2.5584

Warehouse expense
Whse. & shipping, labor & taxes $0.0748 $0.0960
Other warehouse expense .1452 .1825
Total warehouse expense $0.2200 $0.2785

Administrative expense $0.1333 $0.1824
Selling expense
Brokerage $0.1243 $0.1690
Other selling expense .0988 .1343
Total selling expense $0.2231 $0.3033
Other expense
Advertising tax & insp. $0.2477 $0.3319
Other (int., misc. deductions) .1666 .2240
Total other expense $0.4143 $0.5559


Total cost unsweetened $3. 2067 $3 .8785


Total cost unsweetened


$3.2067


$3.8785










Table 4.--Estimated costs of processing, warehousing and selling
Florida frozen concentrate in cases, 450 brix, 1977-78
season

Item Concentrate

Orange Grapefruit

Container size 24/16 24/6

Number of firms 8 6
Average number of cases per firm 378,730 27,960

Materials -----------Cost per case------
Materials
Cans $1.2086 $0.7066
Cartons .1163 .0804
Labels .0000 .0000
Other .0097 .0042
Total materials $1.3346 $0.7912
Processing labor
Direct $0.3395 $0.1259
Indirect .1648 '.0660
Payroll taxes & ins. .0947 .0380
Total processing labor $0.5990 $0.2299
Other processing expense
Power, lights, water $0.2264 $0.0852
Maintenance & repairs .2081 .0719
Depreciations & rent .1680 .0568
Royalties on machinery .1096 .0317
Taxes & insurance .0445 .0151
Miscellaneous .1629 .0560
Total other processing $0.9195 $0.3167
Total processing expense $2.8531 $1.3378
Warehouse expense
Whse. & shipping, labor & taxes $0.0953 $0.0466
Other warehouse expense .1819 .0790
Total warehouse expense $0.2772 $0.1256
Administrative expense $0.1758 $0.0587
Selling expense
Brokerage $0.1588 $0.0417
Other selling expense .1335 .0434
Total selling expense $0.2923 $0.0851
Other expense
Advertising tax & insp. $0.3303 $0.1485
Other (int., misc. deductions) .2122 .0725
Total other expense $0.5425 $0.2210


Total cost unsweetened


$4.1409


$1.8282










Table 5.--Estimated costs per gallon for processing, warehousing
and selling Florida frozen orange concentrate, 4 5 brix,
1977-78 season

Item Concentrate

Gallons, 450 Equivalent gallon
in drums 450 all packs

Number of firms 7 9
Average number of gallons per firm 2,907,464 6,879,415

---------Cost per gallon----------
Materials
Drums and liners (total) $0.0222 $0.0000
Processing labor
Direct $0.0879 $0.1054
Indirect .0345 .0488
Payroll taxes & ins. .0205 .0279
Total processing labor $0.1429 $0.1821
Other processing expense
Power, lights, water $0.0732 $0.0731
Maintenance & repairs .0717 .0718
Depreciation & rent .0682 .0580
Royalties on machinery .0350 .0361
Taxes & insurance .0178 .0154
Miscellaneous .0586 .0569
Total other processing $0.3245 $0.3113
Total processing expense $0.4896 $0.4934
Warehouse expense
Whse. & shipping, labor & taxes $0.0204 $0.0292
Other warehouse expense .0471 .0572
Total warehouse expense $0.0675 $0.0864
Administrative expense $0.0709 $0.0621
Selling expense
Brokerage $0.0375 $0.0488
Other selling expense .0188 .0366
Total selling expense $0.0563 $0.0854
Other expense
Advertising tax & insp. $0.1109 $0.1094
Other (int., misc. deductions) .1117 .0823
Total other expense $0.2226 $0.1917
Total cost unsweetened $0.9069 $0.9190











Table 6.--Estimated costs per gallon for processing, warehousing
and selling Florida frozen concentrate, 568 brix, 1977-78
season

Concentrate

Item Orange Grapefruit

Gallon, 58 o Gallon, 58
in drums in drums

Number of firms 3 3
Average number of gallons per firm 838,815 366,048
-------Cost per gallon------
Materials
Drums and liner ( total) $0.0556 $0.1112
Processing labor
Direct $0.1350 $0.1692
Indirect .0532 .0896
Payroll taxes & ins. .0259 .0453
Total processing labor $0.2141 $0.3041
Other processing labor
Power, lights, water $0.0852 $0.1063
Maintenance & repairs .1000 .0985
Depreciation & rent .1094 .1013
Royalties on machinery .0635 .0413
Taxes & insurance .0164 .0184
Miscellaneous .0544 .0582
Total other processing $0.4289 $0.4240
Total processing expense $0.6986 $0.8393

Warehousing expense
Whse. & shipping, labor & taxes $0.0409 $0.0415
Other warehouse expense .1030 .0579
Total warehouse expense $0.1439 $0.0994
Administrative expense $0.0945 $0.0853
Selling expense
Brokerage $0.0645 $0.0180
Other selling expense .0313 .0180
Total selling expense $0.0958 $0.0360
Other expense
Advertising tax & insp. $0.1508 $0.1645
Other (int., misc. deductions) .0322 .0248
Total other expense $0.1830 $0.1893

Tntal cost unsweetened $1.2158 $1.2493











increased four percent.
The costs of processing 580 brix bulk orange and grapefruit
concentrate are shown in Table 6.

SINGLE STRENGTH JUICES


Estimated average single strength processing, warehousing and
selling costs are shown in Tables 7,8 and 9.
Table 7 shows estimated single strength processing costs for 12
46-ounce cans in cases for 1977-78 with comparisons to 1976-77 estimates.
Materials expense was the item showing the largest absolute increase,
while cost increases for other items ranged from eight to ten percent
with the outcome being a nine percent increase in total costs
over 1976-77 estimates.

CITRUS FEED


The estimated costs of processing citrus feed in bulk are shown
in Table 10.
Citrus feed processing costs per ton for 1977-78 are estimated
to be $42.50, an eleven percent increase over the 1976-77 season.

COSTS AND PRICE TRENDS


Costs for processing, warehousing and selling 48 six-ounce cans of
concentrate in cases remained relatively stable through the 1971-72
season (Table 11). From 1971-72 through 1974-75, costs increased by
$1.03 (46 points) while average retail price increased $.25 (3 points).
Since 1974-75, costs have increased 21 cents (9 points) while the average
retail price has increased $3.07 (38 points).
Changes 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 12. Administrative cost decreased while the
remaining cost categories remain constant or increased relative to









Table 7.--Estimated costs of processing, warehousing and selling 12 46-
ounce cans of single strength Florida orange juice in.cases,
1977-78 season with comparisons to 1976-77 levels

Orange juice 12 46-oz.
(excluding sugar)
Cost group
Cost group Season Change
in cost
1977-78 1976-77

Number of plants 5 6
Average number of cases per plant 555,663 662,892

Materials ---Cost per case---- Percent
Cans $1.7312 $1.5341 + 13
Cartons .1426 .1372 + 4
Labels and other .1134 .1073 + 6
Total materials $1.9872 $1.7786 + 12
Processing labor
Direct $0.1549 $0.1431 + 8
Indirect .0724 .0702 + 3
Payroll taxes & ins. .0454 .0399 + 14
Total processing labor $0.2727 $0.2532 + 8
Other processing expense
Power, lights, water $0.0716 $0.0740 4
Maintenance & repairs .0826 .0823 0
Depreciation & rent .0581 .0626 8
Royalties on machinery .0408 .0399 + 2
Taxes & insurance .0162 .0144 + 12
Miscellaneous .0576 .0537 + 7
Total other processing $0.3269 $0.3269 0
Total processing expense $2.5868 $2.3587 + 10
Warehouse expense
Whse. & ship., labor & taxes $0.1063 .1006 + 6
Other warehouse expense .0976 .0956 .+ 2
Total warehouse expense $0.2039 $0.1962 + 4
Administrative expense $0.0741 $0.0736 + 1
Selling expense
Brokerage $0.0824 $0.0696 + 18
Other selling expense .0573 .0561 + 2
Total selling expense $0.1397 $0.1257 + 11
Other expense
Advertising tax & insp. $0.1175 $0.1162 +1
Other (int., misc. deductions) .0649 .0491 + 32
Total other expense $0.1824 $0.1653 + 10
Total cost unsweetened $3.1869 $2.9195 + 9









Table 8.--Estimated costs of processing, warehousing and selling
Florida citrus fruit juices, 1977-78 season


Orange juice Blended
juice

Container size 48/6 24/2 12/46

Number of plants 5 3 4
Average number of cases per plant 204,412 41,892 101,901
-----------Cost per case------
Materials
Cans $2.2002 $1.6397 $1.7281
Cartons .1016 .1402 .1372
Labels .0000 .1097 .0959
Other .0078 .0323 .0102
Total materials $2.3096 $1.9219 $1.9714
Processing labor
Direct $0.1044 $0.1669 $0.1611
Indirect .0486 .0893 .0732
Payroll taxes & ins. .0339 .0517 .0491
Total processing labor $0.1869 $0.3079 $0.2834
Other processing labor
Power, lights, water $0.0394 $0.0374 $0.0879
Maintenance & repairs .0427 .0663 .0699
Depreciation & rent .0361 .0691 .0696
Royalties on machinery .0227 .0334 .0365
Taxes & insurance .0095 .0162 .0188
Miscellaneous .0295 .0517 .0529
Total processing labor $0.1799 $0.2741 $0.3356
Total processing labor $2.6764 $2.5039 $2.5904
Warehouse expense
Whse. & shipping, labor & taxes $0.0906 $0.1155 $0.0931
Other warehouse expense .0805 .1013 .0794
Total warehouse expense $0.1711 $0.2168 $0.1725
Administrative expense $0.0434 $0.0510 $0.0700
Selling expense
Brokerage $0.0700 $0.0992 $0.0681
Other selling expense .0493 .0663 .0488
Total selling expense $0.1193 $0.1655 $0.1169
Other expense
Advertising tax & insp. $0.0624 $0.0684 $0.1223
Other (int., misc. deductions) .0424 .0663 .0876
Total other expense $0.1048 $0.1347 $0.2099


Total cost unsweetened $3.1150 $3.0719 $3.1597


$3.0719 $3.1597


$3.1150


Total cost unsweetened








Table 9.--Estimated costs of processing, warehousing and selling
Florida grapefruit juices, 1977-78 season


Item Grapefruit juices

Container size 48/6 12/46

Number of plants 5 5
Average number of cases per plant 243,489 784,000

-------Cost per case--- ------
Materials
Cans $2.2201 $1.7095
Cartons .1007 .1423
Labels .0000 .1003
Other .0064 .0081
Total materials $2.3272 $1.9602
Processing labor
Other direct $0.1023 $0.1532
Indirect labor .0467 .0695
Payroll taxes, ins. .0332 .0494
Total processing labor $0.1822 $0.2721
Other processing expense
Power, lights, water $0.0395 $0.0707
Maintenance & repairs .0433 .0871
Depreciation & rent .0347 .0601
Royalties on machinery .0167 .0276
Taxes & insurance .0092 .0156
Miscellaneous .0294 .0575
Total other processing $0.1728 $0.3186
Total processing expense $2.6822 $2.5509
Warehouse expense
Whse. & Ship., labor & taxes $0.0891 $0.1045
Other warehouse expense .0798 .0966
Total warehouse expense $0.1689 $0.2011
Administrative expense $0.0426 $0.0711
Selling expense
Brokerage $0.0552 $0.0694
Other selling expense .0389 .0486
Total selling expense $0.0941 $0.1180
Other expense
Advertising tax & insp. $0.0723 $0.1409
Other (int., misc. deductions) .0411 .0678
Total other expense $0.1134 $0.2087
Total cost unsweetened $3.1012 $3.1498









Table 10.--Estimated costs of processing, warehousing and selling
Florida citrus feed, in bulk, 1977-78 season with
comparisons to 1976-77


Season Change
in cost
1977-78 1976-77a

Number of plants 7 11
Av. number of tons produced per plant 30,704 34,356
----Cost per ton--- Percent
Materials total $ 1.34 $ 1.02 + 31
Processing labor
Direct $ 5.01 $ 4.17 + 20
Indirect 1.45 1.10 + 32
Payroll taxes & insurance 1.24 .82 + 51
Total processing labor $ 7.70 $ 6.09 + 26
Other processing expense
Power, lights, water $14.94 $16.36 10
Maintenance & repairs 5.50 3.67 + 50
Depreciation & rent 5.55 4.40 + 26
Taxes & insurance .96 .97 1
Miscellaneous 1.66 1.30 + 28
Total other processing $28.61 $26.70 + 7
Total processing expense $37.65 $33.81 + 11
Warehouse expense
Whse. & shipping, labor & taxes $ 1.22 $ .82 + 49
Other warehouse expense .99 .77 + 28
Total warehouse expense 2.21 $ 1.59 + 39
Administrative expense $ .78 $ 1.00 28
Selling expense
Brokerage $ .28 $ .29 4
Other selling expense .50 .29 + 72
Total selling expense $ 78 $ .58 + 34
Other expense total $ 1.08 $ 1.25 16
Total costs $42.50 $38.23 + 11


aReported by Hooks 12].
bDoes not include bag costs.










Table 11.--Total cost for processing, warehousing and
selling Florida frozen, 45 brix, orange
concentrate, 1965-66 through 1977-78 seasons


Average retail price
Cost per cage, per 48/6-oz.bcans
Season 48/6-oz. 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 10.06 131
1976-77 3.49 156 12.80 157
1977-78 3.63 162 13.16 162


years prior to 1977-78 are frmn Hooks [2].


Reported by the Market Research Corporation


of America.


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















Table 12.--The relative changes in the component costs that make up 1he total cost of processing, warehousing and selling 48/6-
ounce orange concentrate, 1965-66 through 1977-78 seasons

Season Materials Labor Other b Warehousing Administrative Selling Other Total
processing

$ case Percent $ case Percent $/case Percent $/case Percent $/case Percent $/case Percent $/case Percent $/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 .1354 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 .1761 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
1976-77 1.4557 144 .4463 178 .6302 183 .2196 179 .1460 129 .2006 163 .3900 144 3.4884 156
1977-78 1.5049 149 .4517 181 .6854 199 .2204 179 .1323 117 .2239 181 .4099 151 3.6285 162
Basec 1.0106 100 .2501 100 .3445 100 .1228 100 .1130 100 .1234 100 .2717 100 2.2361 100


aYears prior to 1977-78 are taken frcm Hooks (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).






16




1976-77.
Table 13 shows how costs of producing canned products have
changed since the 1961-62 season.










Table 13.--Estimated average costs of processing, warehousing and
selling canned Florida citrus juices, excluding sugar
in 12 46-ounce cases, 1961-62 through 1977-78 seasons


Season Orange Grapefruit Blended
juice juice juice

------------ Dollars per case-----------------
1961-62 1.57 1.54 1.55
1962-63 1.79 1.72 1.74
1963-64 1.78 1.72 1.75
1964-65 1.66 1.62 1.64
1965-66 1.75 1.70 1.74

1966-67 1.72 1.68 1.70
1967-68 1.91 1.88 1.91
1968-69 1.90 1.86 1.91
1969-70 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
1977-78 3.19 3.15 3.16


aData for years prior to 1977-78 are taken from Hooks [2].
















REFERENCES


[1) Florida Citrus Processors Association.
Season. Winter Haven: 1979.


Statistical Summary, 1977-78


12] Hooks, R. Clegg and Richard L. Kilmer. Estimated Costs of
Processing, Warehousing and Selling Florida Citrus Products,
1976-77 Season. Food and Resource Economics Department.
Economic Information Report 96. Gainesville: July 1978.































This public document was promulgated at an annual cost of $961.00 or
$0.80 per copy to report citrus processing research results to county
agricultural directors and firms and agencies in the citrus industry.