April 1964
COSTS OF PICKING AND HAULING
FLORIDA CITRUS FRUITS
1962-63 SEASON
By
A. H. Spurlock
Agricultural Economist
Florida Agricultural Experiment Stations
,Gainesville, Florida
*. .' ..*;
.,, -- ''-'-
A Study Conducted with Funds Provided by the
Research and Marketing Act
Department of Agricultural Economics
Florida Agricultural Experiment Stations
Gainesville, Florida
Agricultural Economics
Mimeo Report EC 64-8
COSTS OF PICKING AND HAULING FLORIDA
CITRUS FRUITS, 1962-63 SEASON
CONTENTS
Page
Introduction . . . . . . 1
Costs of Picking and Hauling, 1962-63. . . .. .. 2
Variation in Cost Among Firms. .. . . . .. 6
Comparison of 1962-63 Costs with Previous Seasons. . ... 10
Introduction
This is the 13th annual summary of costs of picking and hauling
citrus fruits, prepared from a sample of citrus dealers, packinghouses,
and processors. Other handling and marketing costs in the citrus indus-
try are released in separate publications as indicated inside the back
cover.
Costs of handling citrus fruits from the tree to the packinghouse
or processing plant for the 1962-63 season were summarized by type of
fruit for 32 firms. However, several firms did not haul fruit and sev-
eral others did not pick all the fruit hauled by their trucks. Seven of
the firms furnishing data were citrus dealers specializing in the pro-
curement, sale, and delivery of fruit to the processing plant, 22 were
principally packers of fresh fruit and 3 were processors. Most of the
dealers also contracted with other operators to pick and haul some of
their volume. Contracting with other operators to pick and haul part or
all of their volume also was common among the fresh packers and processors.
COSTS OF PICKING AND HAULING FLORIDA
CITRUS FRUITS, 1962-63 SEASON
CONTENTS
Page
Introduction . . . . . . 1
Costs of Picking and Hauling, 1962-63. . . .. .. 2
Variation in Cost Among Firms. .. . . . .. 6
Comparison of 1962-63 Costs with Previous Seasons. . ... 10
Introduction
This is the 13th annual summary of costs of picking and hauling
citrus fruits, prepared from a sample of citrus dealers, packinghouses,
and processors. Other handling and marketing costs in the citrus indus-
try are released in separate publications as indicated inside the back
cover.
Costs of handling citrus fruits from the tree to the packinghouse
or processing plant for the 1962-63 season were summarized by type of
fruit for 32 firms. However, several firms did not haul fruit and sev-
eral others did not pick all the fruit hauled by their trucks. Seven of
the firms furnishing data were citrus dealers specializing in the pro-
curement, sale, and delivery of fruit to the processing plant, 22 were
principally packers of fresh fruit and 3 were processors. Most of the
dealers also contracted with other operators to pick and haul some of
their volume. Contracting with other operators to pick and haul part or
all of their volume also was common among the fresh packers and processors.
The number of firms included by location was Polk County, 10; Orange
County, 7; Lake County, 4; Pinellas County, 3; Indian River County, 2; Pasco
County, 2; and one each in Hillsborough, Seminole, Hernando, and Highlands
Counties,
Total volume of fruit handled varied widely among firms. Only one
firm had less than 100,000 boxes, 6 firms picked more than 1,000,000 boxes
and 7 firms hauled more than 1,000,000 boxes each. The average volume for
the 29 firms picking was 711,678 boxes, and for 31 firms hauling fruit
823,996 boxes.
Costs of Picking and Hauling, 1962-63
The average costs per box for picking and hauling citrus fruit for
the 1962-63 season from the grove to the processor or packinghouse are shown
in Table 1. These costs are weighted averages; that is, the total money
costs of all firms were divided by the total number of boxes handled. In
prior years the costs for citrus dealers were shown separately to reflect
somewhat different methods of operation. The distinction between citrus
dealers, packers and processors in methods of picking and hauling is per-
haps not as clear as it once was. Packinghouses often pick and handle some
fruit destined for canneries by the bulk methods used by citrus dealers and
processors. A few packers also use bulk handling methods for the fruit which
is packed fresh.
In some prior years a cost was estimated for the procurement and sale
of fruit by dealers. Because of the difficulty of arriving at a suitable
proration basis this has not been attempted in Table 1. Direct or identifi-
able procurement costs such as buyers' salaries or commissions have been
omitted. Certain other buying and selling costs as auto expense and telephone
have been distributed to picking and hauling expense.
TABLE 1.--Average Costs Per
1962-63 Seasons.
Processors
Box of Picking and Hauling Citrus Fruits,
Fresh Fruit Packinghouses,
and Citrus Dealers.
Item
Number of operators
Average volume
(boxes) 823,996 519,626 182,953 31,534
Cost Per Box (cents)
Labor:
Field foremen 0.18 3.39 2.11 4.75 3.57 2.29 4.93
Pickers .. 22.50 15.11 66.86 22.50 15.11 66,86
Loaders .. 2.11 2.71 3.73 2.11 2.71 3.73
Grove drivers .. 1.41 1.06 2.80 1.41 1.06 2.80
Highway drivers 3.26 .. .. .. 3.26 3.26 3.26
Other labor .58 .63 .37 .68 1.21 .95 1.26
Total 4.02 30.04 21.36 78.82 34.06 25.38 82.84
Payroll taxes,
insurance .25 1.48 1.14 4.10 1.73 1.39 4,35
Total labor 4.27 31.52 22.50 82.92 35.79 26.77 87.19
Other Costs:
Gasoline, oil 2.04 .77 .61 .70 2.81 2,65 2.74
Repairs 2.04 2.19 1.93 2.68 4,23 3.97 4.72
Licenses, taxes .67 .18 .12 .37 .85 .79 1.04
Depreciation 1.94 1.00 .49 1.61 2.94 2.43 3,55
Insurance .44 .23 .13 .33 .67 .57 .77
Supplies & shop .10 .24 .15 .33 .34 .25 .43
Equipment rental .16 .35 .25 1.24 .51 .41 1.40
Foreign labor .. .58 .51 1.53 .58 .51 1.53
Miscellaneous a.19 .11 .08 .15 .30 .27 .34
Administrative 1.09 2.40 1.55 4.11 3.49 2.64 5.20
Total other costs 8.67 8.05 5.82 13.05 16.72 14.49 21.72
Total costs 12.94 39.57 28.32 95.97 52.51 41.26 108,91
alncludes management and office salaries, office supplies, auto, travel
and entertainment, interest expense, lights and water, legal and audit, adver-
tising, dues and subscriptions, donations, and telephone and telegraph,
A comparison of 1962-63 costs of picking and hauling citrus with
the preceding season is shown in Figure 1.
Picking.--This is the operation of getting the fruit off the tree and
into the highway truck, commonly termed "picking and loading" or "roadsiding."
The principal costs of performing this service are labor, fuel, repairs, licenses,
insurance and depreciation for the grove trucks, crew trucks, tractors, load-
ing machines and other picking equipment, and administrative expense.
Picking costs, as shown in Table 1, include all amounts paid for
direct labor for picking and delivery to the roadside, grove truck expense,
and a portion of overhead and administrative expenses. Picking labor was
allocated to the various types of fruit from payroll analyses or estimated
piece rates. Fuel and repairs were prorated on a box basis equally to all
kinds of fruit. Certain overhead expenses, which tend to be fixed, were dis-
tributed between the several types of fruit in the ratio of 1.00 to grapefruit,
1.50 to oranges and 3.00 to tangerines.
The methods of picking and handling fruit (tree-to-roadside operation)
such as picking in boxes, tractor baskets, grove trailers, and pallet boxes
are mixed among the various operators. A single operator may use two or more
methods. The method used affects the cost of labor as shown in Table 1 as well
as the distribution among classes of labor. For example, picking in boxes
required loading and driving labor for the grove truck, whereas some other
method would eliminate loading. Thus an operator using some crews with the
box method and some with other picking methods would have in the aggregate a
labor distribution which would not represent either single method exactly.
Labor costs for handling citrus in boxes are higher than for the other
methods, especially if the fruit is destined for a packinghouse. From a
limited amount of data, costs per box for packinghouse fruit were about 1
cents higher for orange pickers, but no higher for grapefruit pickers.
Loaders averaged 3 cents more for box fruit for packinghouses, foremen
cent more, and grove drivers no difference. Total labor costs for pick-
ing and loading oranges were about 5 cents higher for packinghouse fruit
picked in boxes than for cannery fruit.
Total picking costs for 29 firms picking oranges averaged 39.57
cents per box; and for grapefruit, for 27 firms 28.32 cents (Table 1).
Total picking costs for tangerines averaged 95.97 cents per box for 20
firms. Labor, including workmen's compensation insurance and payroll
taxes, was the largest item of cost in picking fruit, being approximately
80 percent of the total for oranges and grapefruit, and 86 percent for
tangerines.
Hauling.--This operation refers to the transportation of fruit
from the roadside to the processing plant or fresh fruit packinghouse.
It includes also the hauling of packinghouse eliminations to the cannery,
this being counted as a separate haul. This is usually a somewhat less
expensive haul than from grove to plant, according to operators. One
of the reasons for this is heavier loading of trucks and the use of bulk
handling methods. Hauling does not include the use of grove trucks, this
being considered a part of the picking and loading operation.
Citrus hauling costs for 31 firms with an average volume of 823,996
boxes were 12.94 cents per box for 1962-63 (Table 1). This is a com-
posite cost for all kinds of fruit hauled, and all types of operators.
Labor costs including payroll taxes and workmen's compensation insurance
were 33 percent of the total, and other operating costs (fuel, repairs,
licenses, depreciation, insurance, rent) 59 percent. Administrative costs
were about 8 percent of the total.
The distances over which the fruit was hauled are unknown, but
citrus dealers and processors are believed to have had longer hauls than
packinghouses hauling box-fruit. While costs do not vary directly with
distance hauled, they do increase with longer hauls. On the other hand,
hauling box fruit is higher than bulk hauling for the same distance.
Hauling costs per box do not appear to be related to total volume
hauled. Hauling costs perhaps are affected more by the volume per truck
owned, and by average distance of haul as well as by the proportion of box
fruit and tangerines hauled.
Most operators have stated that hauling costs are about equal for
oranges and grapefruit, but higher for tangerines because of the lighter
loading required.
Picking and Hauling Costs Combined.--The last three columns in
Table 1 show the average costs for the complete operation of moving of
fruit from the tree to the plant which included picking and hauling combined.
This is obtained by adding together the costs allocated to the separate
services. Oranges cost 52.51 cents per box, grapefruit 41.26 cents, and
tangerines $1.09 for picking and hauling to the plant.
Many citrus firms, both dealers and packers, contract with other
operators to pick or haul, or both. Contract picking and hauling :car
separated from the expense of the firm's own crews. Rates or amounts paid
contractors are not shown in Table 1 because of the difficulty of deter-
mining the exact service performed and the kind of fruit.
Variation in Cost Among Firms
Total cost varied rather widely among firms for providing the same
service. These variations in total costs for picking and hauling in 1962-63
are shown in Tables 2, 3, and 4. Not enough is known about the individual
firms' operations to provide much information about reasons for costs'
being high or low. The data do not show any consistent relationship be-
tween volume of fruit handled and level of costs. In each volume group
there is a wide range of costs for both picking and hauling, indicating
the influence of factors other than volume. For hauling, the average
distance hauled,the idle capacity of the equipment owned and the type of
fruit hauled doubtless affected the over-all season hauling cost per box,
For picking, costs cannot decrease beyond a certain point because of the
large proportion of labor costs, some of which are piece rates and do not
fluctuate with volume picked. The proportion of different kinds and
varieties of fruit affect picking cost differences among firms. Seedlings
are much more expensive to pick than budded oranges. Temples and tange-
rines have been included in oranges. Some murcotts have been included in
tangerines which are more expensive to pick.
Management decisions probably affect citrus picking and hauling
costs to a considerable extent. The operation of picking and hauling
fruit is only one segment of the total business operation, whether the
firm be a citrus dealer, packinghouse, or processor. Obtaining a large
and continuous volume of fruit may have advantages to the firm that out
weigh the advantage of merely achieving lo4 cost in the picking and
hauling operation.
Total picking costs for 29 firms varied from 28.0 cents to 60.6
cents per box for oranges, and for 27 firms from 19.5 cents to 39.9 cents
per box for grapefruit. The range in cost for picking tangerines was from
61.0 cents to $1.41 per box for 20 firms (Table 2).
8
Hauling costs for 31 firms varied from 6.2 cents to 23.3 cents
per box (Table 3).
For picking and hauling combined, total costs for 28 firms ranged
from 38.4 cents to 83.9 cents per box for oranges. The modal group of
14 firms had costs between 44.8 cents and 59.2 cents. Picking and hauling
costs for grapefruit for 26 firms varied from 29.9 cents to 63.2 cents
per box. The modal group of 14 firms had costs between 36.3 cents and
48.0 cents per box. Picking and hauling tangerines varied from 75.3 cents
to $1.64 per box for 20 firms with costs for 10 firms in the modal group
between 93.4 cents and $1.17 per box (Table 4).
TABLE 2.--Variation in Total Cost Per Box for Picking Oranges, Grapefruit,
and Tangerines, 1962-63 Season. Citrus Dealers, Packers and Processors.
Cost Per Box Oranges Grapefruit Tangerines
(cents)
Under 20.
20 24.
25 29.
30 34.
35 39.
40 44.
45 49,
50 54.
55 59.
60 64.
65 69.
70 74.
75 79.
80 84.
85 89.
90 94.
95 99.
100 104.
105 109.
110 and over
Total
Average cost per box
(cents)
Range in costs
(cents)
3
7
9
3
4
2
1
29
Number of Firms
1
5
9
7
5
27
1
1
1
4
2
2
3
3
3
20
39.6 28.3 96,0
28, -- 606 1. -3. 1, 4.
28.0 60.6 19.5 39.9
61.0 140.9
TABLE 3.--Variation in Total Cost Per Box for Hauling Citrus Fruit From
Grove to Plant, 1962-63 Season. Citrus Dealers, Packers, and Processors.
Cost Per Box
(cents)
6 7. . .
8 9. . .
10 11. . .
12 13. . .
14 15. . .
16 17. . .
18 19. . .
20 and over .
Total number of firms
Average cost per box (cents)
Range in costs (cents)
Number of Firms
3
4
4
4
9
3
2
* 2
31
12.9
6.2 23.3
TABLE 4.--Variation in Total Cost Per Box for Picking and Hauling Citrus,
1962-63 Season. Citrus Dealers, Packers, and Processors,
Cost Per Box Oranges Grapefruit Tangerines
(cents) Number of Firms
25 29. .. 1
30 34. .. 3
35 39. 2 7
40 44. 6 4
45 49. 5 5
50 54. 4 4
55 59. 5 1
60 64. 3 1
65 69. 2
70 74.
75 79. .. 1
80 84. 1 .. 1
85 89. .... 2
90 94. .... 3
95 99.
100 109. .... 3
110 119. .... 5
120 and over .. .. 5
Total 28 26 20
Average cost per box
(cents) 52.5 41.3 108.9
Range in costs
(cents) 38.4 83.9 29.9 63.2 75.3 164.2
Comparison of 1962-63 Costs with Previous Seasons
Total picking and hauling costs for 1962-63 increased substantially
over the preceding season (Table 5 and Figure 1). Total picking costs for
oranges and tangerines averaged 17 percent higher than for 1961-62, grapefruit
picking was 10 percent higher and hauling costs increased by 24 percent. Total
harvesting and hauling (1 haul) increased over the preceding season by approx-
imately 14 percent for grapefruit and 18 percent for oranges and tangerines.
The principal reason for the per box costs increases in 1962-63 was
the disastrous freeze in December 1962 which drastically reduced the volume
of fruit to be handled, affected the seasonality of operators, and caused
difficult operating conditions. The itemized costs of the harvesting operation
showed increases in every category of expense.
Since the freeze did not affect the whole citrus belt with equal
severity, there are much wider-than-normal ranges in costs among individual
firms. Some operators were little affected by volume changes while others
with severely curtailed operations found some per-unit expenses pushed up to
unusual highs.
Some of the season to season variation in cost for each service is
due to the firms included. They have not remained identical each year, and
as previously pointed out, costs vary widely among firms.
Percentage changes in picking and hauling costs for 1962-63 compared
with 5 and 10 year earlier periods are shown in Table 6.
TABLE 5.--Average Cost Per Box for Picking and Hauling Citrus Fruits, 12
Seasons.
No. Picking Total Picking & Haulinga
Season of Hauling Grape- Tange- Grape- Tange-
Firms Oranges fruit rines Oranges fruit rines
Cents Per Box
1950-51 9 10.31 28.36 18.62 56.93 38.67 28.93 67.24
1951-52 26 9.81 28.42 19.51 61.93 38.23 29.32 71.74
1952-53 29 9.71 29.12 21.98 59.62 38.83 31.69 69.33
1953-54 37 9.61 28.87 20.58 60.86 38.48 30.19 70.47
1954-55 36 9.38 28.93 20.91 64.72 38.31 30.29 74.10
1955-56 36 9.47 30.52 21.73 66.39 39.99 31.20 75.86
1956-57 34 9.27 31.36 23.46 73.96 40.63 32.73 83.23
1957-58 34 11.31 33.20 24.09 75.53 44.61 35.40 86.84
1958-59 32 11.46 33.30 24.16 74.90 44.76 35.62 86.36
1959-60 33 11.23 34.17 25.16 83.68 45.40 36.39 94.91
1960-61 37 11.17 34.96 26.69 83.53 46.13 37.86 94.70
1961-62 33 10.41 33.79 25.75 81.66 44.20 36.16 92.07
1962-63 32 12.94 39.57 28.32 95.97 52.51 41.26 108.91
a
Citrus dealers usually have an additional cost for buying and
selling fruit which has varied from 21 to 4 cents per box,
TABLE 6.--Percentage Changes in Picking and Hauling Costs, 1962-63 vs.
5 and 10 Years Earlier. (1952-53 = 100)
Picking Total Picking & Hauling
Season Grape- Tange- Grape- Tange-
Hauling Oranges fruit rines Oranges fruit rines
1952-53 100 100 100 100 100 100 100
1957-58 116 114 110 127 115 112 125
1962-63 133 136 129 161 135 130 157
12
Costs, cents per box
0 10 20 30
40 50 60 70 80 90 100 110
.a nling -___
Pick ing 1962-63
Oranges 1961-62
1961-62
Grapefruit
Tangerines ----- -
Picking &
Hauling
Orlngcs
Grapefruit -
Tangerines --- -
i l '
Figure 1.--Citrus Picking and Hauling Costs, 1962-63
and 1961-62.
__
OTHER MIMEOGRAPHED PUBLICATIONS AVAILABLE ON CITRUS COSTS
DEPARTMENT OF AGRICULTURAL ECONOMICS
FLORIDA AGRICULTURAL EXPERIMENT STATIONS
GAINESVILLE, FLORIDA
1. Costs of Packing and Selling Florida Fresh Citrus Fruits, 1962-63
Season.
Agricultural Economics Mimeo Report EC 64-8. April 1963.
2. Costs of Processing, Warehousing and Selling Florida Citrus Products,
1962-63 Season.
Agricultural Economics Mimeo Report EC 64-10. April 1964.
3. Thirty-one Years of Citrus Production Costs and Returns in Florida,
1931-1962.
Agricultural Extension Service Economic Series 64-2. March 1964.
4. Thirty Years of Orange Production Costs and Returns in Florida,
1931-1961.
Agricultural Extension Service Economic Series 63-3. April 1963.
5. Cost of Planting and Developing Florida Citrus Groves Through 10
Years of Age.
Agricultural Extension Service Economic Series 59-6. September 1959.
AHS:ghs 4/3/64
Experiment Stations Ag. Ec. 1400
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