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Estimated costs of processing, warehousing and selling Florida citrus products
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Permanent Link: http://ufdc.ufl.edu/UF00026338/00008
 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: 1980
 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: UF00026338:00008

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
    Reference
        Page 17
Full Text

R. Clegg Hooks


Economic Information
Report 200


Estimated Costs of Processing,
Warehousing and Selling Florida
Citrus Products, 1980-81 Season


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


June 1984















ABSTRACT


The costs of processing, warehousing and selling Florida citrus
products for the 1980-81 season are estimated to have increased from
1979-80 levels. The estimated total costs of producing 48 6-ounce cans
of orange concentrate 43.40 brix increased to $4.74-a 26.7 percent
increase from 1979-80 levels while the costs of producing single
strength orange juice in 12 46-ounce cans are estimated to have
increased to $4.76--a 19.2 percent increase from 1979-80 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 Mrs. Theresa Zerr for her cleri-
cal and secretarial assistance.















ABSTRACT


The costs of processing, warehousing and selling Florida citrus
products for the 1980-81 season are estimated to have increased from
1979-80 levels. The estimated total costs of producing 48 6-ounce cans
of orange concentrate 43.40 brix increased to $4.74-a 26.7 percent
increase from 1979-80 levels while the costs of producing single
strength orange juice in 12 46-ounce cans are estimated to have
increased to $4.76--a 19.2 percent increase from 1979-80 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 Mrs. Theresa Zerr for her cleri-
cal and secretarial assistance.







TABLE OF CONTENTS


ABSTRACT.......................................................... i

TABLE OF CONTENTS.............................................. ii

LIST OF TABLES ..........*......... ... ..... ............ .......... ii

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

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

SINGLE STRENGTH JUICES........................................... 3

CITRUS FEED...................................................... 12

COSTS AND PRICE TRENDS........................................... 12

REFERENCE. ............................... ..................... 17


LIST OF TABLES


Table Page

1 Volume of citrus products produced by sample firms rela-
tive to the total volume produced in Florida, 1980-81
season...................................................... 2

2 Estimated costs of processing, warehousing and selling
Florida orange concentrate, 43.4" brix, 48 6-ounce cans
in cases, 1980-81 season with comparisons to 1979-80
season levels............................................... 4.

3 Estimated cost of processing, warehousing and selling
Florida frozen concentrate in cases, 43.4 brix, 1980-81
season...................................................... 5

4 Estimated cost of processing, warehousing and selling
Florida concentrate in cases, 1980-81 season................ 6

5 Estimated cost per gallon for processing, warehousing and
selling Florida frozen orange concentrate, 43.4 brix,
1980-81 season............................................. 7

6 Estimated costs ner gallon for processing, warehousing and
selling Florida frozen concentrate, 580 brix, 1980-81
3eason... **......*........***......*... ..................... 8

7 Estimated costs of processing, warehousing and selling 12
46-ounce cans of single strength Florida orange juice in
cases, 1980-81 season with comparisons to 1980 levels........ 9

ii









LIST OF TABLES (continued)


Table Page


8 Estimated costs of processing, warehousing and selling
Florida citrus fruit juices, 1980-81 season................. 10

9 Estimated costs of processing, warehousing and selling
Florida grapefruit juices, 1980-81 season................... 11

10 Estimated costs of processing, warehousing and selling
Florida citrus feed, in bulk, 1980-81 season with com-
parisons to 1979-80 season.......................... ........ 13

11 Total cost for processing, warehousing and selling Florida
frozen, 450 brix, orange concentrate, 1965-66 through
1980-81 season.............................................. 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 1980-81 seasons......... 15

13 Estimated average costs of processing, warehousing and sell-
ing canned Florida citrus juices, excluding sugar in 12 46-
ounce cases, 1961-62 through 1980-81 seasons............... 16


iii



















ESTIMATED COSTS OF PROCESSING, WAREHOUSING AND
SELLING FLORIDA CITRUS PRODUCTS, 1980-81 SEASON

R. Clegg Hooks


INTRODUCTION


The purpose of this study was to develop estimates of processing
costs for Florida citrus products for the 1980-81 season. Citrus pro-
cessing cost data were obtained from 9 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.
Most firms provided average total costs per case or per gallon from
their audited financial statements. The following tables present esti-
mates 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 are weighted averages where the weights are the
volumes packed of each product by each firm during the 1980-81 produc-
tion 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.


R. CLEGG HOOKS is an assistant in Agricultural Economics.








Table 1.-Volume of citrus products produced by sample firms relative to the
total volume produced in Florida, 1980-81 season.

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

Units Percent Number

Orange concentrate 57,813,138 174,537,195 33 9
(gallons 43.40 brix)

Grapefruit concentrate 2,080,568 20,763,128 10 6
(gallons 420 brix)

Canned single strength 4,139,068 13,012,221 32 5
orange juice
casess 24/#2 equivalent)

Canned single strength 4,922,534 14,231,147 36 5
grapefruit juice
(cases 24/#2 equivalent)

Canned blended single 370,666 984,068 38 4
strength juice
(cases 24/#2 equivalent)

aReported by the Florida Citrus Processors Association [1].








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 depart-
ment expense. Discount allowances and brand royalties have been omit-
ted.


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 com-
parisons to 1979-80 estimates. Total costs were estimated at $4.74 per
case a 26.7 percent increase above 1979-80 estimates. The items with
the largest increase were: processing labor, power, lights and water,
administrative, and other expense.
Table 3,4,5, and 6 show costs of packing other retail and in insti-
tutional 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
costs for 24 12-ounce, 24 16-ounce and 12 32-ounce cans in cases
increased 29.1, 31.6 and 28.6 percent above 1979-80.
Bulk 43.40 brix orange concentrate costs shown in Table 5 were up
35.9 percent from 1979-80 estimates while the cost for equivalent gal-
lons for all packs (excluding materials is estimated to have increased
40.1 percent.
The cost of processing 580 brix bulk orange and grapefruit concen-
trate are shown in Table 6.


SINGLE STRENGTH JUICES


Estimated average single strength processing, warehousing and
selling costs are shown in Table 7, 8, and 9.








Table 2.--Estimated costs of processing, warehousing and selling Florida
orange concentrate, 43.40 brix, 48 6-ounce cans in cases,
1980-81 season with comparisons to 1979-80 season levels.

Frozen orange concentrate 48 6-oz.
Estimated cost Change
1980-81 1979-808 in cost

Number of firms 8 9
Number of cases per firm 326,258 455,227

---Cost per case--- Percent

Materials
Cans $1.7245 $1.5374 +12.2
Cartons 0.1377 0.1222 +12.7
Labels 0.0096 0.0085 +12.9
Total 1 1.6681 T7728
Processing labor
Direct 0.3361 0.2638 +27.4
Indirect 0.1769 0.1270 +39.3
Payroll taxes & ins. 0.0905 0.0668 +35.5
Total 0.4576 +-+=
Other
Power, lights, water 0.2645 0.1809 +46.2
Maintenance & repairs 0.1935 0.1630 +18.7
Depreciation & rent 0.1617 0.1079 +49.9
Royalties on machinery 0.0929 0.0735 +26.4
Taxes & insurance 0.0469 0.0311 +50.8
Miscellaneous 0.1511 0.1095 +38.0
Total other processing OU.Y9U U.b659 +~3.
Total processing expenses 3.3859 2.7918 +21.3
Warehousing expenses
Whse. & shipping, labor & taxes 0.0955 0.0775 +23.2
Other warehousing expenses 0.2043 0.1437 +42.2
Total warehousing expense .2998 U.221 +35.
Administrative expense 0.2269 0.1448 +56.7
Selling expenses
Brokerage 0.1639 0.0775 +23.2
Other selling expense 0.1086 0.1437 +42.2
Total 2725 0.2149
Other expense
Advertising tax & insp. 0.2342 0.2144 +9.2
Other (int., misc. deductions) 0.3216 0.1541 +108.7
Total other expense .5558 +50.8
Total cost unsweetened 4.7409 3.7412 +26.7

aFrom 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
Y'rozen concentrate in cases, 43.40 brix, 1980-81 season.

Item Orange Concentrate

Container per case/container size 24/12 12/32

Number of firms 8 8
Average number of cases per firm 887,410 178,594

----Cost per case----

Materials
Cans $1.2169 $1.1168
Cartons 0.1361 0.1734
Labels 0.0000 0.0000
Other 0.0102 0.0143
Total materials $1.3632 $1.3045
Processing labor
Direct $0.3437 $0.4510
Indirect 0.1758 0.2385
Payroll taxes & ins. 0.0902 0.1219
Total processing labor $0.6097 $0.8114
Other processing expense
Power, lights, water $0.2661 $0.3549
Maintenance & repairs 0.2083 0.2784
Depreciation & rent 0.1414 0.2223
Royalties on machinery 0.0970 0.1267
Taxes & insurance 0.0389 0.0586
Miscellaneous 0.1609 0.2305
Total other processing $0.9126 $1.2714
Total processing expense $2.8855 $3.3873
Warehouse expense
Whse. & shipping, labor & taxes $0.0864 $0.1183
Other warehouse expense 0.1852 0.2499
Total 0.2716 0.3682
Administrative $0.2414 $0.3244
Selling expense
Brokerage $0.1580 $0.2152
Other (int., misc. deductions) 0.1086 0.1479
Total $0.2666 $0.3631
Other expense
Advertising tax & insp. 0.2300 0.2973
Other (int., misc. deductions) 0.2792 0.4467
Total other expense 0.5092 0.7440


Total cost unsweetened


$4.1743 $5.1870









Table 4.--Estimated cost of processing, warehousing and selling Florida
concentrate in cases, 1980-81 season.

Concentrate
Item Orange Grapefruit
43.40 brix 420 brix

Containers per case/container size 24/16 24/6

Number of firms 8 5
Average number of cases per firm 334,707 22,211

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

Materials
Cans $1.4968 $0.8421
Cartons 0.1651 0.1216
Labels 0.0000 0.0000
Other 0.0168 0.0086
Total materials $1.6787 $0.9723
Processing labor
Direct $0.4556 $0.1622
Indirect 0.2406 0.0858
Payroll taxes & ins. 0.1230 0.0460
Total processing labor $0.8192 $0.2940
Other processing expense
Power, lights, water $0.3586 $0.1392
Maintenance & repairs 0.2594 0.0857
Depreciation & rent 0.2042 0.0916
Royalties on machinery 0.1253 0.0488
Taxes & insurance 0.0522 0.0222
Miscellaneous 0.2065 0.0881
Total other processing 1.2062 0.4756
Total processing expense $3.7041 $1.7419
Warehouse expense
Whse. & shipping, labor & taxes $0.1095 $0.0544
Other warehouse expense 0.2378 0.1027
Total warehouse expense $0.3473 $0.1571
Administrative expense $0.2946 $0.1040
Selling expense
Brokerage $0.2114 $0.0780
Other selling expense 0.1492 0.0694
Total selling expense $0.3606 $0.1474
Other expense
Advertising tax & insp. $0.2854 $0.1407
Other (int., misc. deductions) 0.4186 0.2017
Total other expense $0.7040 $0.3424


Total cost unsweetened


$2.4928


$5.4106








Table 5.-Estimated cost per gallon for processing, warehousing and
selling Florida frozen orange concentrate, 43.4- brix, 1980-81
season.

Concentrate
Gallons, 43.40 Equivalent gallon
Item in drums 43.40 all packs

Number of firms 6 8
Average number of gallons per firm 2,621,545 6,423,682
--------Cost per gallon---------

Materials
Drums and liners (total) $0.0113 $0.0000
Processing labor
Direct $0.1390 $0.1496
Indirect 0.0799 0.0000
Payroll taxes & ins. 0.0406 0.0407
Total processing labor $0.2595 $0.2706
Other processing expense
Power, lights, water $0.1109 $0.1178
Maintenance & repairs 0.0747 $0.0867
Depreciation & rent 0.0733 0.0668
Royalties on machinery 0.0393 0.0419
Taxes & insurance 0.0158 0.0174
Miscellaneous 0.0594 0.0684
Total other processing $0.3734 $0.3990
Total processing expense $0.6442 $0.6696
Warehouse expense
Whse. & shipping, labor & taxes $0.0331 $0.0366
Other warehouse expense 0.0776 0.0792
Total warehouse expense $0.1107 $0.1158
Administrative expense $0.0897 $0.1011
Selling expense
Brokerage $0.0200 $0.0564
Other selling expense 0.0401 0.0470
Total selling expense $0.0601 $0.1034
Other expense
Advertising tax & insp. $0.1007 $0.0994
Other (int., misc. deductions) 0.1681 0.1394
Total other expense $0.2688 $0.2388


Total cost unsweetened $1. 1735 $1. 2287


Total cost unsweetened


$1.1735


$1.2287









Table 6.--Estimated costs per gallon for processing, warehousing and
selling Florida frozen concentrate, 580 brix, 1980-81 season.

Concentrate
Gallon, 58 Gallon, 58
Item in drums in drums

Number of firms 4 4
Average number of gallons per firm 2,384,658 140,607

----Cost per gallon-----

Materials
Drums and liners (total) $0.1011 $0.3914
Processing labor
Direct $0.1215 $0.1367
Indirect 0.0190 0.1017
Payroll taxes & ins. 0.0142 0.0419
Total processing labor $0.1547 $0.2803
Other processing expense
Power, lights, water $0.1738 $0.1163
Maintenance & repairs $0.0788 0.0641
Depreciation & rent $0.0889 $0.0442
Royalties on machinery 0.0500 0.0349
Taxes & insurance 0.0216 0.0147
Miscellaneous 0.0445 0.0366
Total other processing $0.4576 $0.3108
Total processing expense $0.7134 $0.9825
Warehouse expense
Whse. & shipping, labor & taxes $0.0026 $0.0218
Other warehouse expense 0.0487 0.0461
Total warehouse expense $0.0513 $0.0679
Administrative expense $0.1659 $0.0662
Selling expense
Brokerage $0.0843 $0.0383
Other selling expense 0.0134 0.0454
Total selling expense $0.0977 $0.0837
Other expense
Advertising tax & insp. $0.1713 $0.0468
Other (int., misc. deductions) 0.0600 0.2113
Total other expense $0.2313 $0.2581


Total cost unsweetened $1. 2596 $1. 4584


$1.2596


$1.4584


Total cost unsweetened









Table 7.-Estimated costs of processing, warehousing and selling 12 46-ounce cans of
single strength Florida orange juice in cases, 1980-81 season with
comparisons to 1980 levels.

Orange juice 12 46-oz. cans
(excluding sugar) Change
Cost group 1980-81 1979-80 in cost

Number of firms 5 5
Average number of cases per firm 403,550 577,818

Cost per case Percent

Material
Cans $2.4426 $2.2580 +8.2
Cartons 0.2114 0.1853 +14.1
Labels and other 0.1353 0.1336 +1.3
Total materials $2.7893 $2.5769 +8.2
Processing labor
Direct $0.2067 $0.1763 +17.2
Indirect 0.1313 $0.0813 +61.5
Payroll taxes & ins. 0.0487 0.0435 +12.0
Total processing labor $~.3867 $0.3011 +28.4
Other processing expenses
Power, lights, water $0.1277 $0.0985 +29.6
Maintenance & repairs 0.1765 0.1370 +28.8
Depreciation & rent 0.0920 0.0624 +47.4
Royalties on machinery 0.0467 0.0369 +26.6
Taxes & insurance 0.0500 0.0194 +157.7
Miscellaneous 0.0908 0.0689 +31.8
Total other processing $0.5837 $0.231 +38.0
Total processing expense $3.7597 $3.3011 +13.9
Warehouse expense
Whse. & shipping, labor & tax $0.1427 $0.1154 +23.7
Other warehouse expense 0.1423 0.1068 +33.2
Total warehouse expense $0.2850 $0.2222 +54.5
Administrative expense $0.1652 $0.1069 +13.9
Selling expense
Brokerage $0.1357 $0.0894 +51.8
Other selling expense 0.1160 0.0669 +73.4
Total selling expense $0.2517 $0.1563 +61.0
Other expense
Advertising tax & insp. $0.1396 $0.1135 +23.0
Other (int., misc. deduct.) 0.1561 0.0904 +72.7
Total other expense $0.2957 $0.2039 +45.0


Total cost unsweetened $4.7573 $3.9904 +19 2


$4.7573 $3.9904


+19.2


Total cost unsweetened








Table 8.--Estimated costs of processing, warehousing and selling Florida
citrus fruit juices, 1980-81 season.

Orange Blended
juice juice

Containers per case/container size 48/6 oz. 12/46 oz.

Number of firms 4 3
Average number of cases per firm 245,632 72,509

----Cost per case---
Material
Cans $2.9023 $2.3946
Cartons 0.1402 0.2113
Labels 0.0000 0.0350
Other 0.0143 0.0982
Total materials $3.0568 $2.7391
Processing labor
Direct $0.1548 $0.2361
Indirect 0.0793 0.1465
Payroll taxes & ins. 0.0457 0.0748
Total processing labor $0.2798 $0.4574
Other processing expenses
Power, lights, water $0.0733 $0.1358
Maintenance & repairs 0.0864 0.1670
Depreciation & rent 0.0604 0.1513
Royalties on machinery 0.0232 0.0387
Taxes & insurance 0.0181 0.0926
Miscellaneous 0.0459 0.0777
Total other processing $0.3073 $0.6631
Total processing expense $3.6439 $3.8596
Warehouse expense
Whse. & shipping, labor & tax $0.1047 $0.0872
Other warehouse expense 0.1113 0.1192
Total warehouse expense $0.2160 $0.2064
Administrative expense $0.0913 $0.0876
Selling expense
Brokerage $0.0863 $0.1364
Other selling expense 0.0733 0.1254
Total selling expense $0.1596 $0.2618
Other expense
Advertising tax & insp. $0.1447 $0.1891
Other (int., misc. deduct.) 0.1060 0.2712
Total other expense $0.2507 $0.4603
Total cost unsweetened $4.3615 $4.8757

aBlended juice: a blend of orange and grapefruit juices.









Table 9.--Estimated costs of processing, warehousing and selling Florida
grapefruit juices, 1980-81 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 230,774 557,548

---Cost per case-----

Material
Cans $2.9187 $2.4325
Cartons 0.1423 0.2125
Labels 0.0000 0.0771
Other 0.0108 0.0560
Total materials $3.0718 $2.7781
Processing labor
Direct $0.1495 $0.2042
Indirect 0.0871 0.1241
Payroll taxes & ins. 0.0438 0.0604
Total processing labor $0.2804 $0.3887
Other processing expenses
Power, lights, water $0.0687 $0.1238
Maintenance & repairs 0.0893 0.1772
Depreciation & rent 0.0607 0.0982
Royalties on machinery 0.0212 0.0387
Taxes & insurance 0.0170 0.0578
Miscellaneous 0.0473 0.0927
Total other processing $0.3042 $0.5884
Total processing expense $3.6564 $3.7552
Warehouse expense
Whse. & shipping, labor & tax $0.0987 $0.1347
Other warehouse expense 0.1117 0.1399
Total warehouse expense $0.2104 $0.2746
Administrative expense $0.1014 $0.1651
Selling expense
Brokerage $0.0842 $0.1309
Other selling expense 0.0692 0.1088
Total selling expense $0.1534 $0.2397
Other expense
Advertising tax & insp. $0.1480 $0.1568
Other (int., misc. deduct.) 0.1030 0.1623
Total other expense $0.2510 $0.3191


Tota cot unweeened$4.3726 $4.753


Total cost unsweetened


$4.3726


$4.7537









Table 7 shows estimated single strength processing costs for 12 46-
ounce cans in cases for 1980-81 with comparisons to 1979-80 estimates.
The 1980-81 cost is $4.76 per case, a 19.2 percent increase in total
costs over 1979-80 estimates.


CITRUS FEED


The estimated costs of processing citrus feed in bulk are shown in
Table 10.
Citrus feed processing costs per ton for 1980-81 are estimated to
be $54.48 an 13.4 percent increase over the 1979-80 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).
From 1974-75 through 1979-80 costs increased 49 cents (21 points) while
the average retail price has increased $8.38 (103 points). Now in one
season, 1980-81, costs have increased $.83 (38 points) while average
retail price has increased $1.95 (24 points), due mainly to the lower
volume packed, brought on by the freeze.
Changes in the cost categories that make-up the total cost for 48
6-ounce cans of orange concentrate in Table 12, show increases in all
categories.
Table 13 shows how costs of producing canned products have changed
since the 1961-62 season.








Table 10.-Estimated costs of processing, warehousing and selling Florida citrus
Feeda, in bulk, 1980-81 season with comparisons to 1979-80 season.

Season Change
1980-81 1979-80 in cost

Number of firms 6 8
Average number of tons produced per firm 33,462 35,042

Cost per ton Percent

Materials totalc $1.70 $1.71 -0.6
Processing labor
Direct $5.28 $4.98 +6.0
Indirect 1.95 1.66 +17.5
Payroll taxes & ins. 1.38 1.21 +14.0
Total processing labor $8.61 $7.85 +9.7
Other processing expenses
Power, lights, water $24.61 $21.82 +12.8
Maintenance & repairs 6.26 5.69 +10.0
Depreciation & rent 4.99 4.00 +24.8
Taxes & insurance 0.90 0.86 +4.7
Miscellaneous 1.76 1.49 +18.1
Total other processing $38.52 $33.86 +13.8
Total processing expense $48.83 $43.42 +12.5
Warehouse expense
Whse. & shipping, labor & tax $1.05 $0.89 +18.0
Other warehouse expense 1.04 0.90 +15.6
Total warehouse expense $2.09 $1.79 +16.8
Administrative expense $0.90 $0.95 -5.3
Selling expense
Brokerage $0.33 $0.24 +37.5
Other selling expense 0.48 0.46 +4.3
Total selling expense $0.81 $0.70 +15.7
Other expense total $1.85 $1.18 +56.8
Total cost $54.48 $48.04 +13.4

aCitrus 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.
bReported by Hooks [2].
cDoes not include bag costs.









Table II.--Total cost for processing, warehousing and selling Florida
frozen, 450 brix, orange concentrate, 1965-66 through 1980-81
season.

Average retail price
Cost per case per 48/6 oz. cans
Season 48/6 oz. cansa in casesb

Actual Indexc Actual Indexc

1965-66 $2.38 106 $ 8.80 108
1966-67 2.07 93 7.00 86
1967-68 2.26 101 8.60 106
1968-69 2.24 100 9.76 120
1969-70 2.38 106 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

1980-81d 4.74 212 20.42 251


years prior to 1980-81


are from Hooks [2].


bReported by NPD Research, Inc.

CThe index was computed as a percentage of the 1965-68 average.
d1980-81 is reported for 43.40 brix.








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 1980-81 season.


Season


Materials


Labor


Other
processing


Warehousing


Administrative


Selling


Other


Total


$/case Percent

1965-66 .9982 99
1966-67 1.0208 101
1967-68 1.0128 100
1968-69 1.0279 102
1969-70 1.0271 102
1970-71 1.0627 105
1971-72 1.0771 107
1972-73 1.1815 117
1973-74 1.3285 131
1974-75 1.6534 164
1975-76 1.5213 151
1976-77 1.4557 144
1977-78 1.5049 149
1978-79 1.6011 158
1979-80 1.7419 172
1980-81c 1.8718 185
Based 1.0106 100


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

.2656 106 .3872 112 .1234 100 .1444 128 .1519 123 .3163 116 2.3870 107
.2117 85 .2759 80 .1053 86 .0766 68 .0935 76 .2825 104 2.0663 92
.2729 109 .3705 108 .1395 114 .1180 104 .1249 101 .2164 80 2.2550 101
.2776 111 .3380 98 .1112 91 .1203 106 .1169 95 .2481 91 2.2400 100
.2943 118 .3355 97 .1278 104 .1211 107 .1223 99 .3556 131 2.3837 107
.2881 115 .3789 109 .1354 110 .1390 123 .1514 127 .2-37 101 2.4272 109
.2666 108 .3728 108 .1147 93 .1623 143 .1270 103 .2j46 97 2.3851 107
.2978 119 .4170 121 .1358 111 .1761 156 .1389 113 .2639 97 2.6110 117
.3865 155 .4864 141 .1930 157 .1521 135 .1279 104 .3483 122 ,.0227 135
.3654 146 .5130 149 .2240 182 .1636 145 .1566 127 .3435 126 3.4194 153
.3394 136 .5468 159 .2005 163 .1247 110 .1490 121 .3622 133 3.2439 145
.4463 178 .6302 183 .2196 179 .1460 129 .2006 163 .3900 144 3.4884 156
.4517 181 .6854 199 .2204 179 .1323 117 .2239 181 .4099 151 3.6285 162
.4515 181 .6615 192 .2268 185 .1563 138 .2063 167 .4562 168 3.7597 168
.4779 191 .6954 202 .2310 188 .1512 134 .2244 182 .3848 142 3.9066 175
.6035 241 .9106 264 .2998 244 .2269 201 .2725 221 .5558 205 4.7409 212
.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].
bInclude power, water, lights, steam, maintenance, repairs, royltles, taxes, insurance, rent and miscellaneous expenses.

c1980-81 brix is 43.4* prior years are 45. brix.
dThe 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 1980-81 seasons.

n Orange Grapefruit Blended
Season
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
1980-81


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
4.76


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
4.75


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
4.88


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












REFERENCES


[1] Florida Citrus Processors Association. Statistical Summary, 1980-
81 Season. Winter Haven: 1982.

[2] Hooks, R. Clegg and Richard L. Kilmer. Estimated Costs of Process-
ing, Warehousing and Selling Florida Citrus Products, 1979-80
Season. Food and Resource Economics Department. Economic
Information Report 144. Gainesville: May 1981.
































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.