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Estimated costs of processing, warehousing and selling Florida citrus products
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Permanent Link: http://ufdc.ufl.edu/UF00026338/00007
 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: 1979
 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: UF00026338:00007

Table of Contents
    Main
        Main
    Main
        Page i
    Main
        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

1-Richard L. Kilmer
R. Clegg Hooks


Economic Information
Report 144


Estimated Costs of Processing,
Warehousing and Selling Florida
Citrus Products, 1979-80 Season


HUME
JUL
i .AS. UL


LIBRARY


2 1981


riv. of Florida


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


May 1981


















ABSTRACT


The costs of processing, warehousing and selling Florida citrus
products for the 1979-80 season are estimated to have increased from
1978-79 levels. The estimated total cost of producing 48 6-ounce
cans of orange concentrate increased to $3.90 --a four percent increase
from 1978-79 levels while the costs of producing single strength
orange juice in 12 46-ounce cans are estimated to have increased
to $3.99 --a fourteen percent increase from 1978-79 levels.


Key
margins,


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


ACKNOWLEDGEMENTS

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

















TABLE OF CONTENTS


Page


SUMMARY . . . . .

INTRODUCTION . . . . . .


FROZEN CONCENTRATE .

SINGLE STRENGTH JUICES .


S. 1


S. 9


CITRUS FEED . . . . .

COST AND PRICE TRENDS . . . .

REFERENCES . . . . .


9

9

. . 18


LIST OF TABLES

Table

1 Volume of citrus products produced by sample firms
relative to the total volume produced in Florida,
1979-80 season . . . . . .

2 Estimated costs of processing, warehousing and selling
Florida orange concentrate, 450 brix, 48 6-ounce cans in
cases, 1979-80 season with comparisons to 1978-79
season levels . . . . . .

3 Estimated costs of processing, warehousing and selling
Florida frozen concentrate in cases, 450 brix, 1979-80
season . . . . . . .

4 Estimated costs of processing, warehousing and selling
Florida frozen concentrate in cases, 450 brix, 1979-80
season . . . . . . .


Page



S2




. 4



S5



S6


5 Estimated costs per gallon for processing, warehousing and
selling Florida frozen orange concentrate, 450 brix, 1979-80
season .. . . . . . 7

6 Estimated costs per gallon for processing, warehousing and
selling Florida frozen concentrate, 580 brix, 1979-80
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, 1979-80 season with comparisons to 1978-79
levels . . . . ... . . 10

8 Estimated costs of processing, warehousing and selling
Florida citrus fruit juices, 1979-80 season . .. 11

9 Estimated costs of processing, warehousing and selling
Florida grapefruit juices, 1979-80 season . .. 12

10 Estimated costs of processing, warehousing and selling
Florida citrus feed, in bulk, 1979-80 season with
comparisons to 1978-79 season . . . .. 13

11 Total cost for processing, warehousing and selling
Florida frozen, 450 brix, orange concentrate, 1965-66
through 1979-80 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 1979-80
seasons . . . . ... ... .16

13 Estimated average costs of processing, warehousing and
selling canned Florida citrus juices, excluding sugar,
in 12 46-ounce cases, 1961-62 through 1979-80 seasons 17














ESTIMATED COSTS OF PROCESSING, WAREHOUSING AND
SELLING FLORIDA CITRUS PRODUCTS, 1979-80 SEASON

R. Clegg Hooks and Richard L. Kilmer


SUMMARY


The costs of processing, warehousing and selling Florida citrus
products for the 1979-80 season are estimated to have increased from
1978-79 levels. The estimated total costs of producing 48 six-ounce
cans of orange concentrate 450 brix1 has increased to $3.90 --a four
percent increase from 1978-79 levels while the costs of producing
single strength orange juice in 12 46-ounce cans are estimated to
have increased to $3.99 --a fourteen percent increase from 1978-79
levels.

INTRODUCTION


The purpose of this study was to develop estimates of processing
costs for Florida citrus products for the 1979-80 season. Citrus
processing cost data were obtained from 12 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 again were not reported because of lack of participation
by enough firms who produce chilled juice.


Brix Quantitative measurement of total soluble solids, chiefly
fruit sugars. Brix equals the percent by weight of fruit sugar solids.
For example, each 100 pounds of 450 brix concentrate would contain
45 pounds of fruit sugar solids.

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

1








Table l.--Volume of citrus products produced by sample firms relative to
the total volume produced in Florida, 1979-80 season

Percentage Sample
Total Total of total f
Product produced produced Florida in
by sample in production each
firms Florida sample firms product

----------UNITS--------- Percent No.

Orange concentrate 76,127,328 231,256,856 33 12
(gallons 45 brix)

Grapefruit concentrate 3,052,373 19,442,747 16 6
(gallons 420 brix)

Canned single strength 5,014,043 13,869,188 36 5
orange juice
(cases 24/#2 equivalent)

Canned single strength 5,944,922 16,603,823 36 5
grapefruit juice
(cases 24/#2 equivalent)

Canned blended single 425,094 1,313,596 32 4
strength juice
(cases 24/#2 equivalent)

aReported by the Florida Citrus Processors Association [1].







Most firms provided average total costs per case or per gallon
from their audited financial statements. The following tables
present estimates of the average costs for plant operation, ware-
housing and selling the finished products. Fruit costs are not
included. The numbers shown in the following tables are weighted
averages where the weights are the volumes packed of each product by
each firm during the 1979-80 production year. 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 firms
entering and leaving 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 1978-79 estimates. Total costs were estimated at $3.91
per case-- a four percent increase above 1978-79 estimates. The items
with the largest increase were: cartons, indirect labor, power,
lights and water, and selling expense.
Tables 3,4,5 and 6 show costs of packing other retail and in
institutional packages as well as bulk concentrate in drums and tank
farm.
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
















Table 2.--Estimated costs of processing, warehousing and selling Florida
orange concentrate, 450 brix, 48 6-ounce cans in cases, 1979-80
season with comparisons to 1978-79 season levels


Frozen orange concentrate 48 6-oz.

Estimated cost Change

1979-80 1978-79a in cost

Number of firms 9 9
Number of cases per firm 435,958 420,936

-----Cont npe case ------ Percent


Materials
Cans
Cartons
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
Total other processing
Total processing expense
Warehousing expense
Whse. & shipping, labor & taxes
Other warehousing expense
Total warehousing expense
Administrative expense
Selling expense
Brokerage
Other selling expense
Total selling expense
Other expense
Advertising tax & insp.
Other (int., misc. deductions)
Total other expense
Total cost unsweetened


$1.6053
.1276
.0089
$1.7419

$0.2755
.1326
.0698
0. 4779


$1.4888
.1101
.0022
$1.6011

$0.2669
.1187
.0659
$0.4515


$0.1889 $0.1618
.1702 .1660
.1127 .1094
.0768 .0765
.0325 .0316
.1143 .1162
$0.6954 $0.661
$2.9152 $2.7141


$0.0809
.1501
$0.2310
$0.1512

$0.1339
.0905
$0.2244


$0.0761
.1507
0.22 68
$0.1563

$0.1213
.0850
$0.2063


$0.2239 $0.2042
.1609 .2520
$0.3848 $0.4562
$3.9066 $3.7597


aFrom Hooks [2].
bln this and the following tables administrative expense
management and office salaries, office expense, telephone and
and travel.


include
telegraph,


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


+ 8
+ 16
+ 305
+ 9


+ 6
0
+ 2
- 3


S-_- r-_-.-:-






5


Table 3.--Estimated cost of processing, warehousing and
selling Florida frozen concentrate in cases,
450 brix, 1979-80 season

Item Orange Concentrate

Containers per case/container size 24/12 oz. 12/32 oz.
Number of plants 9 9
Average number of cases per plant 1,063,882 194,238
--------Cost per case-----------------
Materials
Cans $1.0969 $1.0150
Cartons .1222 .1557
Labels .0000 .0000
Other .0071 .0093
Total materials $1.2262 $1.1800
Processing labor
Direct $0.2758 $0.3678
Indirect .1331 .1747
Payroll taxes & ins. .0703 .0960
Total processing labor $0.4792 $0.6385
Other processing expense
Power, lights, water $0.1923 $0.2549
Maintenance & repairs .1665 .2255
Depreciation & rent .1135 .1651
Royalties on machinery .0771 .1032
Taxes & insurance .0302 .0453
Miscellaneous .1170 .1629
Total other processing $0.6966 $0.9569
Total processing expense $2.4020 $2.7754
Warehouse expense
Whse. & shipping, labor & taxes $0.0758 $0.0990
Other warehouse expense .1453 .1889
Total warehouse expense $0.2211 $0.2879
Administrative $0.1513 $0.2071
Selling expense
Brokerage $0.1305 $0.1831
Other selling expense .0959 .1305
Total selling expense $0.2264 $0.3136
Other expense
Advertising tax & insp. $0.2235 $0.2978
Other (int., misc. deductions) .1511 .2338
Total other expense $0.3746 $0.5316
Total cost unsweetened $3.3754 $4.1156








Table 4.--Estimated costs of processing, warehousing and selling
Florida frozen concentrate in cases, 45 brix, 1979-80
season

Concentrate
Item
Orange Grapefruit

Containers per case/container size 24/16 oz. 24/6 oz.
Number of firms 9 5
Average number of cases per firm 384,425 34,408
----------Cost per case----------------
Materials
Cans $1.4007 $0.8072
Cartons .1530 .1053
Labels .0000 .0000
Other .0104 .0030
Total materials $1.5641 $0.9155
Processing labor
Direct $0.3682 $0.1236
Indirect .1809 .0608
Payroll taxes & ins. .0947 .0322
Total processing labor $0.6438 $0.2166
Other processing expense
Power, lights, water $0.2607 $0.0890
Maintenance & repairs .2135 .0558
Depreciation & rent .1499 .0606
Royalties on machinery .1032 .0423
Taxes & insurance .0427 .0178
Miscellaneous .1495 .0471
Total other processing $0.9195 $0.3126
Total processing expense $3.1274 $1.4447
Warehouse expense
Whse. & shipping, labor & taxes $0.0959 $0.0416
Other warehouse expense .1816 .0770
Total warehouse expense $0.2775 $0.1186
Administrative expense $0.1911 $0.0600
Selling expense
Brokerage $0.1648 $0.0583
Other selling expense .1257 .0472
Total selling expense $0.2905 $0.1055
Other expense
Advertising tax & insp. $0.2979 $0.1281
Other (int., misc. deductions) .2098 .1143
Total other expense $0.5077 $0.2424
Total cost unsweetened $4.3942 $1.9712








Table 5.--Estimated costs per gallon for processing, warehousing
and selling Florida frozen orange concentrate, 450 brix,
1979-80 season

Concentrate
Item
Gallons, 450 Eqiivalent gallon
in drums 450 all packs
Number of firms 7 12
Average number of gallons per firm 2,727,133 6,343,944
----------Cost per gallon--------------
Materials
Drums and liners (total) $0.0335 $0.0000
Processing labor
Direct $0.1024 $0.1156.
Indirect .0424 .0530
Payroll taxes & ins. .0237 .0286
Total processing labor $0.1685 $0.1972
Other processing expense
Power, lights, water $0.0833 $0.0846
Maintenance & repairs .0672 .0710
Depreciation & rent .0648 .0537
Royalties on machinery .0353 .0354
Taxes & insurance .0175 .0150
Miscellaneous .0420 .0480
Total other processing $0.3101 $0.3077
Total processing expense $0.5121 $0.5049
Warehouse expense
Whse. & shipping, labor & taxes $0.0206 $0.0311
Other warehouse expense .0402 ,0562
Total warehouse expense $0.0608 $0.0873
Administrative expense $0.0811 $0.0700
Selling expense
Brokerage $0.0336 $0.0469
Other selling expense .0251 .0346
Total selling expense $0.0587 $0.0815
Other expense
Advertising tax & insp. $0.0979 $0.0975,
Other (int., misc. deductions) .0909 .0746,
Total other expense $0.1888 $0.1721


Total cost unsweetened


$0.9015


$0.9158








Table 6.--Estimated costs per gallon for processing, warehousing and
selling Florida frozen concentrate, 580 brix, 1979-80 season

Concentrate

Item Orange Grapefruit

Gallon, 58 Gallon, 580
in drums in drums
Number of firms 5 4
Average number of gallons per firm 1,242,850 293,774
-----------Cost per gallon---------
Materials
Drums and liner (total) $0.0800 $0.1131
Processing labor
Direct $0.1406 $0.1359
Indirect .0544 .0484
Payroll taxes & ins. .0324 .0325
Total processing labor $0.2274 TO.2168
Other processing expense
Power, lights, water $0.1077 $0.1158
Maintenance & repairs .0834 .0861
Depreciation & rent .0701 .0868
Royalties on machinery .0560 .0449
Taxes & insurance .0214 .0139
Miscellaneous .0544 .0526
Total other processing $0.3930 $0.4001
Total processing expense $0.7004 $0.7300
Warehouse expense
Whse. & shipping, labor & taxes $0.0552 $0.0454
Other warehouse expense .0722 .0328
Total warehouse expense $0.1274 $0.0782
Administrative expense $0.0757 $0.0727
Selling expense
Brokerage $0.0232 $0.0153
Other selling expense .0174 .0223
Total selling expense $0.0406 $0.0376
Other expense
Advertising tax & insp. $0.1124 $0.1062
Other (int., misc. deductions) .1050 .0255
Total other expense $0.2174 $0.1317
Tntal ncst unsweetened $1.1615 $1.0502


u~U ~VI









costs for 24 12-ounce, 24 16-ounce and 12 32-ounce cans in cases increased
three, four and two percent above 1978-79.
Bulk 450 brix orange concentrate costs shown in Table 5 were
up four percent from 1978-79 estimates while the cost for equivalent
gallons for all packs (excluding materials) is estimated to have
decreased one 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 1979-80 with comparisons to 1978-79
estimates. The 1979-80 cost is $3.99 per case, a fourteen percent
increase in total costs over 1978-79 estimates.

CITRUS FEED


The estimated costs of processing citrus feed in bulk are shown
in Table 10.
Citrus feed processing costs per ton for 1979-80 are estimated
to be $48.04 an eight percent increase over the 1978-79 season.

COSTS AND PRICE TRENDS


Costs for processing, warehousing and selling 48 6-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 49 cents (21 points) while the
average retail price has increased $12.04 (148 points).
Changes in the cost categories that make-up the total processing,
warehousing and selling expenses for 48 6-ounce cans of orange concentrate








Table 7.--Estimated costs of processing, warehousing and selling 12 46-
ounce cans of single strength Florida orange juice in cases,
1979-80 season with comparisons to 1978-79 levels

Orange juice 12 46-oz. cans
(excluding sugar)
Cost group Season Change
in cost
1979-80 1978-79

Number of firms 5 5
Average number of cases per firm 577,818 522,201
-----Cost per case----------- Percent
Materials
Cans $2.2580 $1.9674 + 15
Cartons .1853 .1556 + 19
Labels and other .1336 .1197 + 12
Total materials $2.5769 $2.2427 + 15
Processing labor
Direct $0.1763 $0.1593 + 11
Indirect .0813 .0716 + 14
Payroll taxes & ins. .0435 .0402 + 8
Total processing labor $0.3011 $0.2711 + 11
Other processing expense
Power, lights, water $0.0985 $0.0833 + 18
Maintenance & repairs .1370 .1182 + 16
Depreciation & rent .0624 .0528 + 18
Royalties on machinery .0369 .0415 11
Taxes & insurance .0194 .0151 + 28
Miscellaneous .0689 .0665 + 4
Total other processing $0.4231 $0.3774 + 12
Total processing expense $3.3011 $2.8912 + 14
Warehouse expense
Whse. & ship., labor & tax $0.1154 $0.1078 + 7
Other warehouse expense .1068 .0991 + 8
Total warehouse expense $0.2222 $0.2069 + 7
Administrative expense $0.1069 $0.1000 + 7
Selling expense
Brokerage $0.0894 $0.0813 + 10
Other selling expense .0669 .0603 + 11
Total selling expense $0.1563 $0.1416 + 10
Other expense
Advertising tax & insp. $0.1135 $0.0777 + 46
Other (int., misc. deduct.) .0904 .0900 0
Total other expense $0.2039 $0.1677 + 22


Total cost unsweetened $3. 9904 $3.5074 + 14


$3.9904


$3.5074 + 14


Total cost unsweetened







Table 8.--Estimated costs of processing, warehousing and selling
Florida citrus fruit juices, 1979-80 season

Orange juice Blended
juice

Containers per case/container size 48/6 oz. 12/46 oz.
Number of firms 5 3
Average number of cases per firm 245,476 110,464
---------Cost per case----------
Materials
Cans $2.7783 $2.2368
Cartons .1225 .1828
Labels .0000 .0711
Other .0121 .0611
Total materials $2.9129 $2.5518
Processing labor
Direct $0.1191 $0.1945
Indirect .0545 .0886
Payroll taxes & ins. .0330 .0519
Total processing labor $0.2066 $0.3350
Other processing expense
Power, lights, water $0.0525 $0.1037
Maintenance & repairs .0685 .1044
Depreciation & rent .0368 .0835
Royalties on machinery .0193 .0305
Taxes & insurance .0120 .0218
Miscellaneous .0333 .0617
Total other processing $0.2224 $0.4056
Total processing expense $3.3419 $3.2924
Warehouse expense
Whse. & shipping, labor & taxes $0.0919 $0.0893
Other warehouse expense .0804 .0848
Total warehouse expense $0.1723 $0.1741
Administrative expense $0.0639 $0.0623
Selling expense
Brokerage $0.0586 $0.0752
Other selling expense .0427 .0632
Total selling expense $0.1013 $0.1384
Other expense
Advertising tax & insp. $0.0595 $0.1304
Other (int., misc. deductions) .0575 .1295
Total other expense $0.1170 $0.2599
Total cost unsweetened $3.7964 $3.9271

aBlended juice: a blend of orange and grapefruit juices.








Table 9.--Estimated costs of processing, warehousing and selling
Florida grapefruit juices, 1979-80 season

Item Grapefruit juices

Containers per case/container size 48/6 oz. 12/46 oz.
Number of firms 5 5
Average number of cases per firm 278,617 710,752
----------Cost per case-------------
Materials
Cans $2.7443 $2.2371
Cartons .1224 .1844
Labels .0000 .0797
Other .0102 .0532
Total materials $2.8769 $2.5544
Processing labor
Direct $0.1192 $0.1828
Indirect .0540 .0840
Payroll taxes & ins. .0341 .0478
Total processing labor $0.2073 $0.3146
Other processing expense
Power, lights, water $0.0507 $0.0954
Maintenance & repairs .0654 .1343
Depreciation & rent .0428 .0704
Royalties on machinery .0198 .0345
Taxes & insurance .0125 .0205
Miscellaneous .0323 .0678
Total other processing $0.2235 $0.4229
Total processing expense $3.3077 $3.2919
Warehouse expense
Whse. & shipping, labor & taxes $0.0869 $0.1094
Other warehouse expense .0760 .1015
Total warehouse expense $0.1629 $0.2109
Administrative expense $0.0575 $0.0987
Selling expense
Brokerage $0.0588 $0.0864
Other selling expense .0431 .0674
Total selling expense $0.1019 $0.1538
Other expense
Advertising tax & insp. $0.0728 $0.1299
Other (int., misc. deductions) .0690 .1067
Total other expense $0.1418 $0.2366


Total cost unsweetened


$3.7718


$3.9919








Table 10.--Estimated costs of processing, warehousing and selling
Florida citrus feed in bulk, 1979-80 season with
comparisons to 1978-79 season

Season Change
in cost
1979-80 1978-79a

Number of firms 8 7
Av. number of tons produced per firm 35,042 29,589
---------Cost per ton-------- Percent

Materials totalb $ 1.71 $ 1.71 0
Processing labor
Direct $ 4.98 $ 5.17 4
Indirect 1.66 1.69 2
Payroll taxes & insurance 1.21 1.18 + 3
Total processing labor $ 7.85 $ 8.04 2
Other processing expense
Power, lights, water $21.82 $16.05 + 36
Maintenance & repairs 5.69 6.19 8
Depreciation & rent 4.00 5.33 -25
Taxes & insurance .86 1.02 16
Miscellaneous 1.49 1.32 + 13
Total other processing $33.86 $29.91 + 13
Total processing expense $43.42 $39.66 + 9
Warehouse expense
Whse. & shipping, labor & taxes $ 0.89 $ 1.02 13
Other warehouse expense .90 .99 9
Total warehouse expense $ 1.79 $ 2.01 11
Administrative expense $ 0.95 $ 0.86 + 10
Selling expense
Brokerage $ 0.24 $ 0.28 14
Other selling expense .46 .52 12
Total selling expense $ 0.70 $ 0.80 13
Other expense total $ 1.18 $ 1.28 8
Total costs $48.04 $44.61 + 8

citrus feed -- A by-product of processing fresh citrus into juice,
concentrate or canned fruit. It consists of dried citrus pulp with
lime added. The major use for this by-product is cattle feed.
Reported by Hooks [2].
CDoes not include bag costs.








Table ll.--Total cost for processing, warehousing and
selling Florida frozen, 450 brix, orange concentrate,
1965-66 through 1979-80 seasons

Sp Average retail price
Season per case per 48/6 oz. cans
Season 48/6 oz. cans 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
1976-77 3.49 156 12.80 157
1977-78 3.63 162 13.16 162
1978-79 3.76 168 17.57 216
1979-80 3.91 174 18.47 227


years prior to 1979-80 are from Hooks [2].
bReported by NPD Research, Inc.
cThe index was computed as a percentage of the


1965-68 average.








are shown in


Table


Administrative and other costs decreased while


the remaining cost categories increased relative to


Table


1978-79.


13 shows how costs of producing canned products have changed


since the


1961-62


season.











Table 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 1979-80 seasons

Season Materials Labor Other b Warehousing Administrative Selling Other Total
processing

S/case Percent $/case Percent $/case Percent $/case Percent $/case Percent L/case Percent S/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 .3789 109 .1354 110 .1390 123 .1514 127 .2737 101 2.4272 109
1971-72 1.0771 107 .2666 108 .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
1978-79 1.6011 158 .4515 181 .6615 192 .2268 185 .1563 138 .2063 167 .4562 168 3.7597 168
1979-80 1.7419 172 .4779 191 .6954 202 .2310 188 .1512 134 .2244 182 .3848 142 3.9066 175

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

years prior to 1977-78 are taken from Hooks [2].
blnclude 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 13.--Estimated average costs of processing, warehousing and
selling canned Florida citrus juices, excluding sugar
in 12 46-ounce cases, 1961-62 through 1979-80 seasons

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

1976-77
1977-78
1978-79
1979-80


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

2.92
3.19
3.51
3.99


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

2.92
3.15
3.49
3.99


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

2.87
3.16
3.45
3.93


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















REFERENCES

[1] Florida Citrus Processors Association. Statistical Summary,
1979-80 Season. Winter Haven: 1981

[2] Hooks, R. Clegg and Richard L. Kilmer. Estimated Costs of
Processing, Warehousing and Selling Florida Citrus Products,
1978-79 Season. Food and Resource Economics Department.
Economic Information Report 136. Gainesville: July 1980.



























This public document was promulgated at an annual cost of $1023.25 or
$0.85 per copy to report citrus processing research results to county
agricultural directors and firms and agencies in the citrus industry.