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Special Report
University of Florida Agricultural Experiment Station
Gainesville, Florida, Texas Agricultural Experiment Station,
College'Station, Texas, and Cooperative Research and Service
Division, Farm Credit Administration, United States Department
of Agriculture, Washington, Do C., Cooperating
COST OF HANDLING FLORIDA AND TEXAS CITRUS FRUITS
IN FRESH AND PROCESSED FORUM, 1948-49 SEASON
A Study Conducted With Funds Provided
by the Research Marketing Act
University of Florida
Agricultural Experiment Station
Gainesville, Florida
July 25, 1950
PREFACE
This is a report on one phase of the Southern Regional Project SH-4,
"Iarketing Citrus Fruits". Costs of packing and processing citrus fruits
in Florida and Texas for the 1946-47 and 1947-48 seasons have been published
previously. A study of the margins and factors affecting margins for whole-
saling and retailing citrus fruits and citrus products is also included in
the project. The Bureau of Agricultural Economics and Fruit and Vegetable
Branch of the Production and Marketing Administration are conducting these
phases of the study. Subsequent publications will include an analysis of
the margins for handling citrus fruits at wholesale and retail as well as a
more detailed analysis of the costs of packing and processing citrus fruits
in Florida and Texas.
This report was prepared by the following:
H. W. Little, Assistant Agricultural Economist, Florida Agricultural
Experiment Station and H G. Hamilton, Agricultural Economist and
Head, Department of Agricultural Economics, University of Florida,
Gainesville, Florida.
K. A. Fugett, Associate Professor, Department of Agricultural
Economics and Sociology, Texas Agricultural Experiment Station,
College Station, Texas.
C. K. Baker and J. K. Samuels, Agricultural Economists, Cooperative
Research and Service Division, Farm Credit Administration, U. S.
Department of Agriculture, Washington, D. C.
CONTENTS
Page
FRESH CITRUS FRUITS
Cost of Packing and Selling Fresh Citrus Fruits .. . 4
Variation in Packing and Selling Costs , , 10
Relation of Volume to Cost of Packing and Selling . 17
Packing and Selling Costs by Types of Firms * 24
PROCESSED PRODUCTS
Cost of Processing, Warehousing and Selling Citrus
Juices and Sections .. # * *. * .. 27
Variation in Processing, Warehousing and Selling Costs 32
Relation of Volume to Cost of Processing, Warehousing
and Selling * * * * * p 38
Processing, Warehousing and Selling Costs by Types of
Firms , , , , , . . . . . 42
Cost of Processing, Warehousing and Selling Frozen
Citrus Concentrate * * * * * * * * 45
Cost of Processing, Warehousing and Selling Citrus Feed
and Citrus Molasses * .* * * a * * * 47
Definition of Terms * * * a *. * * * 49
COST OF HANDLING FLORIDA AND TEXAS CITRUS FRUITS
IN FRESH AND PROCESSED FORM, 1948-49 SEASON
This report is the latest in a series whose purpose is to analyze
citrus packing and processing costs in Florida and Texas* The current
report presents costs for the 1948-49 season based on cost information
secured from 73 packinghouses and 23 canning plants in Florida and from
24 packinghouses and 13 canning plants in Texas. Also included for the
1948-49 season is the average cost of processing frozen orange juice con-
centrate by five Florida firms~/ and the average cost of processing citrus
feed and citrus molasses by seven firms. The figures for frozen concen-
trate include costs for some firms that operated only a portion of the
season and the costs shown should be interpreted with that in mind.
As in the reports for previous seasons, packing and canning costs
are shown by major items of expense, by volume groups and by types of firms.
Variations in costs among firms are indicated by use of tables showing the
number of firms whose costs fell within certain ranges of cost or cost groups.
Costs for processing frozen concentrate and for citrus feed and molasses
are shown by major items of expense only.
A brief release showing the cost of processing frozen citrus concentrate
was made on May 18, 1950* The figures on frozen concentrate shown in
this report are the same as were contained in that release*
FRESH CITRUS FRUITS
Costs of Packing and Selling Fresh Citrus Fruits
Table 1 shows the average cost of packing and selling fresh citrus in
bruce boxes in Florida and Texas for each of the three seasons from 1946-47
through 1948-49. It appears that very little change has occurred in the
average cost per box of packing and selling by Florida packinghouses during
these three seasons. Per box costs for Texas packinghouses were considerably
higher during the 1948-49 season than during the two previous seasons due
probably to reduced volume resulting from the severe freeze during January,
1949. It will be noted that, during both the 1946-47 and 1947-48 seasons,
costs were lower in Texas than in Florida but that, during the 1948-49
season, average costs per box were lower in Florida than in Texas.
Table 1.-Average Cost of Packing'and Selling Florida and Texas Citrus
Fruit in Bruce Boxes*, 1946+47 through 1948-49 Seasons.
Season 1948-49 1947-48 1946-47
Cost per 1-3/5 bushel equivalent
Florida
Oranges $0.8330 $0.8421 $0.8279
Grapefruit 0.7359 0.7323 0.7545
Tangerines 1.1916 1.1812 1.1579
Texas
Oranges $0,8555 $0.7744 $0,7467
Grapefruit 0.7508 0.6176 0.6506
Tangerines ** ** 1.0405
* Oranges and grapefruit in 1-3/5 bruce boxes. Tangerines in 4/5 bruce
boxes.
** Not enough tangerines packed to arrive at an accurate average.
Average costs per box by major items of expense for packing und selling
fresh citrus in various types of containers are shown for Florida for the 1948-
49 season in Table 2." For packing and selling oranges, costs were lowest
in 1/2-box bags, 20-pound bags and 1-3/5 bruce boxes. Per box costs when
these types of containers were used were $0.66, $0.83 and $0.83, respectively.
The average cost per box for packing and selling was 01,16 for oranges in
1-3/5 standard boxes, $1.01 in 8-pound bags and 01.18 in 5-pound bags. I:uch
of the difference in the total cost per box in the containers shown was due
to differences in the actual cost of the types of containers and other materials
used. However, labor costs were also lowest for packing in 1-3/5 bruce,
1/2-box bags and 20-pound bags. This was due partly to lower piece rates to
packers when packing in these containers and possibly in part because oranges
can ordinarily be packed in these containers at a more rapid rate. The latter
factor results in an output of a larger number of boxes for a given expendi-
ture on the labor that is geared to the speed of the packing process. To a
certain extent, costs per box for other operating expenses such as power,
lights and water, insurance, taxes and depreciation also fell more lightly
on those containers that can be packed more rapidly--
Average costs by types of containers for packing and for total cost shown
in Tables 2 and 3 are not the same as the averages shown in Tables 4,
5, 6, and 7 for the same types of containers# The costs in Tables 2
and 3 are weighted averages and those in the other tables mentioned
are simple averages. This is true of other tables shown later in the
report. A listing of those tables that contain weighted averages and
those that contain simple averages is given in the "Definition of Terms"
shown at the end of this report.
/2
The tendency is somewhat offset in the figures shown for bags by lower
overhead costs per box by many of the houses that packed a large volume.
Many of the smaller houses whose costs per box were higher, packed very
few bags.
The average per box cost for packing and selling grapefruit ranged
from a low of 00.58 in 1/2-box bags to a high of $1.17 in 5-pound bags*
Tangerines averaged $1.19 in 4/5 bruce and $1.35 in 4/5 standard boxes.
Per box costs for grapefruit in all containers were lower than costs for
oranges in corresponding containers due largely to lower piece rates for
packing -and to the fact that most packinghouses pack grapefruit more rapid-
ly than oranges* The higher per box costs for tangerines resulted from
higher piece rates, the slower speed required in packing this type of fruit,
and the different type of container usually used.
Costs by types of containers are shown in Table 3 for Texas packing-
houses. Grapefruit costs were between $0.02 and $0.03 higher in Texas than
in Florida for packing and selling in 1-3/5 bruce and 1-3/5 standard boxes
and about $0.06 higher in 5-pound bags. Oranges cost more in Texas than in
Florida by a little more than $0.02 in bruce boxes, about $0*15 in standard
boxes and $0*15 in 5-pound bags* Administrative and selling costs accounted
for more of the difference in cost between Texas and Florida than any other
single classification of expense. This no doubt was due to the short crop
resulting from the freeze. Materials and direct and indirect operating
costs were also higher in Texas for most containers. Labor costs for
packing grapefruit in most containers were slightly lower for Texas than
for Florida houses.
Table 2.-Cost of Packing and Selling Florida Citrus Fruit by Type of Fruit and
Type of Container for 73 Packinghouses, 1948-49 Season,
Oranges
Type of container
1-3/5
Bruce
68
144,535
Number of packinghouses
Boxes per packinghouse
Items of cost:
Material . .
Labor:
Receive, truck, dump
Crate making & labeling
Foreman,graders,others
Wrap and pack .
Truck, check, load .
Payroll taxes . .
Total labor . .
Other direct operating
Indirect operating .
Total packing cost
Administrative & selling
Other cost . * #
Total cost . .
1-3/5
Standard
Wrapped
230
*51.204
1/2 Box
Bag*
1,981
20-Lb.
Bag*.
37
1,916
8-Lb.
Bag*
T47-
34,532
5-Lb.
Bag*
21
6,453
Q0.3738 $0.5612 ^0.2156 ~0.3571 00.4895 %0.6415
$0,0279
0.0276
0.0442
0.0586
0.0301
.0.0062
00.1946
90.0496
0,V0.0298
To.61478
00.085o
50. 1000
050.5.30
1ElQT
i0.0330
0.0359
0.0677
0.1078
0.0301
0.0094
0,.0.2539
00,0528
150.0476
0. 9455
*01139
1.1590
TETRY
7TlItif
0. 0333
0,0059
0.0460
0.0596
0.0311
0.0071
00.1830
,O.0512
Q0.4748
0 O5821
00.65821
00.0307
0.0066
0.0533
0.0741
0.0339
0.0063
00.2049
'0.0550
Q0.,0264
.0.6434
0,0 1013
O. 8329
00.0341
0.0035
0.0593
0.0933
0.0462
0.0057
006.2421
00.0621
Q0,0290
06.0853
O.o0972
01.60052
00.0352
0.0022
0.0621
0.1172
0.0412
0.0041
00.2620
00.0653
'00. 826
01.1822
Grapefruit
10-Lb. 8 5-b
Type of container
Number of packinghouses
Boxes per packinghouse
Items of cost:
Material . . .
Labor
Receive, truck, dump
Crate making & labeling
Foremen,graders,others
Wrap and pack , ,
Truck, check, load e
Payroll taxes
Total labor . ,
Other direct operating
Indirect operating a
Total packing cost
Administrative & selling
Other cost .. .
Total cost . .
1-3/5
Bruce
667
66,879
1-3/5
Standard
Trapped
21
17.108
1/2 Box
Bag*
13
151
00.3738 $0.5590 00.2141
0,.0234 "000305
0.0272 0*0370
0,0306 0.0670
0.0431 0.0674
0.0279 0.0382
0.0052 0.0076
10.1574 00. 2477
30.0364 00.0476
0.o,0229 00.0651
60.5905 90.9194
0;.0746 00o0870
o0.0708 '0.o0721
10-Lb.
Bag*
565
3,565
8-Lb.
Bag*
23
4.433
5-Lb,
Bag*
31
313
00.4379 00.4733 $0.6729
$0.0275 00.0274
0.0072 0.0022
0.0355 0.0433
0.0515 0.0748
0.0317 0.0443
0.0042 0.0061
Q0.1576 00.1981
00.0394 0. 0528
00.0215 00,0397
00,4326 00.7285
0,o0818 000O872
00,0298
0.0087
0.0412
0.0844
0.0360
0,0051
00.2052
707.0484
00.0292
10.7561
?0.0911
0.06-81b
0.0639 00,0669
00.0487
0.0080
0.0389
0.0910
0.0332
0.0053
00,2251
30.0687
00.0294
00.9961
50. 0739
30.7359 81.0785 00.5783 N0.8826 00.9153 Q1.1736
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Table 2.-Cost of Packing and Selling Florida
Type of Container for 73 Packinghouses,
Citrus Fruit by Type of Fruit and
1948-49 Season (Concluded)*
Tangerines
Type of container 4/5 Bruce* 4/5 Bruce Flat* 4/5 Standard*
Number of packinghouses' 2 3 22
Boxes per packinghouse 19,609 14,524 8,012
Items of cost:
l~terial . . . . . 0.5697 ,0.6225 00.7230
Labor:
Receive, truck, dump . ,:0.0365 I;0.0426 o0.0338
Crate making & labeling 0.0464 0.0329 0.0511
Foreman,graders,others * 0*0676 0.0710 0.0773
Wrap and pack . . * 0,1019 0.1071 0.1085
Truck, check, load . 0.0495 0.0496 0.0521
Payroll taxes . . 0.0098 0,0093 0,0099
Total labor . .* @ O.311 $00.3125 0.O3327
Other direct operating . "0.0754 ~0-0733 00.'0662 I
Indirect operating . . 0.045.5 0.03596 'i .o.0.36
Total packing cost . $1.0023 1'.0479 31.1588
Administrative & selling *. 0,0916 0.0688 00.0828
Other cost . * * 0.0977 0O.0958 00.1063
Total cost . .191 1.2125 1.3479
* 1-3/5 bushel equivalent.
9
Table 3s- Cost of Packing and Selling Texas Citrus Fruit by Type of Fruit and
Type of Container for 24 Packinghouses, 1948-49 Season.
Oranges
5 -L .
Type of container
Number or paclinghouses
Boxes per packinghouse
Items of cost:
Material . .
Labor:
Receive, truck, dump
Crate making & labeling
Foreman,graders,others
Wrap and pack. . #
Truck, check, load .
Payroll taxes .
Total labor . .
Other direct operating
Indirect operating .
Total packing cost
Administrative & selling
Other cost . .., .
Total cost . .
1-3/5
Bruce
4.420
24.455
1-0/50
Standard
Wrapped
14
1.179
50.3550 00.6355
00,0262
0.0172
0.0422
0.0548
0.0414
0.0010
%10.1828
00.0465
00.0586
06.5429
00.1325
$6.08001
30.8555
00.0262
0.0189
0.0967
0.1023
0.0781
0.0009
Q0.3231
"0.0890
0,0 716
1.1192
0QO.0790
01.3093
4/5
Bruce*
15
***2,485
1/2
Box
Bag*
19
3.343
8-Lb.
Bag*
20
11,989
5-Lb.
Bag*
20
12,852
$0.5603 00.3048 00.5212 $0,7273
00,0281
0.0309
0.0462
0.0853
0.0483
0.0008
30.2396
P0.0485
00. 492
00.8976
30.1362
00.0662
Q1.1000
00.0309
- -
0.0573
0.0543
0.0530
0.0010
So0.1965
00,0526
00,0475
00.6014
06.1278
60.7928
00,0302
0.0530
0.0902
0.0574
0.0007
* ..0,2 ,15
00.0534
00.0480
600.8541
00.1208
00.0596
01.0345
00.0374
0.0592
0.1434
0.0605
0.0005
00.3010
00,0502
00.0593
01.1378
V0.1332
01.3326
1-3/5
Bruce
2-3
118.489
Type of container
Number of packinghouses
Boxes per packinghouse
Items of cost:
Material . . .
Labor:
Receive, truck, dump
Crate making & labeling
Foreman,graders,others
Trap and pabk. .
Truck,oheck,load
Payroll taxes
Total labor .
Other direct operating
Indirect operating *.
Total packing cost
Administrative & selling
Other cost . . .
Total cost . .
1-3/5 bushel equivalent.
Only 12 firms were used in
firm packed less than 25 boxes.
Grapefruit
S1-3/"
Standard
Wrapped
17
' 6.,72-
$0.3591 50.6368
0.0238
0.0195
0.0326
0.0343
0.0332
0.0009
-10.1443
30.0407
W0.0499
60.5940
o0.1256
00.0312
50.7508
$0.0264
0.0225
0.0474
0.0702
0.0433
0.0005
M0.2103
SO. 0518
f,.0644
60.9635
v0.1147
S0.0276
81.1056
- a_
1/2
Box
Bag*
15
1.417-
1.417
10-Lb.
Bag*
17
2.223
8-Lb.
Bag*
21
13,193
5-Lb.
Bag*
'13
1,212**
$0.3062 00.4421 $0.4754 $0.6224
00.0205
- -
0.0296
0.0387
0.0343
0.0005
50 1236
0(0.0444
lo. 0346
00.5088
s0.1088
$0.0278
o0.6454
00.0249
- -
0.0488
0.0596
0.0544
0.0009
60.1886
0o. 0571
?0.0387
,0.7265
8>0.1199
00.0311
00.8775
00.0263
- -
0.0475
0.0798
0.0498
0.0008
%p0.0509
%0o. 0476
.00.7781
vo0.1226
,0.0292
0. 9299
00.0205
0.0508
0.1241
0.0623
0.0006
0o.2583
0. 0606
00.1165
,0.0260
01.1170
computing average number of boxes per firm since one
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11
Variation in Packing and Selling Costs
Tables 4 and 5 show the extent of variation among firms in the total cost
per box of packing and selling citrus in Florida and Texas. The 68 Florida
firms that packed a part of their oranges in 1-3/5 bruce boxes had costs for
packing in this container ranging from less than $0.65 to over $1.35. However,
costs for 51 of the firms were between $0.75 and $0.95 with 18 of the firms
falling in the $0.85 to $0.90 group. Variations in costs among Florida firms
for oranges in other containers and for grapefruit and tangerines in various
containers were similar to those for oranges in 1-3/5 bruce boxes.
Of the 20 packinghouses in Texas that packed oranges in 1-3/5 bruce boxes,
15 had costs between $0.75 and $0.95 and five of the 15 fell in the 00.80 to
$0.85 group. Sixteen of the 23 firms that packed grapefruit in 1-3/5 bruce
boxes had costs between $0.65 and $0.85 and eight of these were in the $0.75
to $0.80 group.
Variations among firms for packing only before administrative and selling
and other miscellaneous costs are added represent variations in packinghouse
operating costs and are shown in Tables 6 and 7. Fifty'-seven of the 68
Florida houses that packed orarges in bruce boxes had packing costs between
$0.55 and $0.75 and 22 of the firms fell in the $0,60 to $0.65 cost group.
This is a somewhat greater concentration of costs within similar ranges except
at lower levels than was the case for total packing and selling shown in Table
4. Slightly less variation in packing costs as compared to packing and selling
is also noted for most of the other types of containers and types of fruit
shown and was apparently due to elimination of the influence of administrative
and selling costs for which there was wide variation among firms. Somewhat less
variation in operating costs is also noted for Texas houses as represented in
Table 7 than in total expense including administrative and selling for oranges
and grapefruit in 1-3/5 bruce and 1-3/5 standard boxes (Table 5).
11
Table 4.-Variation in the Cost Per Box of Packing and Selling Florida Citrus Fruit
by Type of Fruit and Type of Container for 73 Packinghouses, 1948-49 Season.
Oranges
1-3/5 1-3/5 1/2
Type of container 1-3/5 Standard Standard Box 20-Lb. 8-Lb. 5-Lb.
Bruce Unwrapped Trapped Bag* Bag* Bag* Bag*
Cost group Number of firms
Under $0.5500 ... 0 0 0 3 0 0 0
$0.55 0,5999 . 0 0 0 5 0 0 0
0.60 0.6499 . 1 0 0 7 0 0 0
0.65 0.6999 . 0 0 7 0 0 0
0.70 0.7499 . 5 0 0 8 5 0 0
0.75 0.7999 10 0 0 7 4 0 0
0.80 0.8499 . 14 0 0 3 8 1 0
0.85 0.8999 . 18 2 0 1 8 4 0
0.90 0.9499. . # 9 2 0 1 7 7 0
0.95 09999 5 4 1 0 1 5 1
1.00 1.0499 . 3 2 0 3 11 1
1.05 1.0999 . 1 1 4 0 1 10 2
1.10 1.1499 1 0 2 0 0 4 2
1.15 1.1999 . 0 1 6 0 0 3 1
1.20 1.2499 . 0 0 2 0 0 1 3
1.25 1.2999 . 0 1 1 0 0 1 2
1.30 1.3499 ... 0 1 4 0 0 0 6
1.35 and over .. 1 0 1 0 0 0 3
Total number of firms 68 15 23 42 37 47 21
Average cost per firm 00.8686 I1.0193 V1.1977 0O.6894 30.8612 01.0267 01.2430
Grapefruit
1-3/5 1-3/5 1/2
Type of container 1-3/5 Standard Standard Box 10-Lb. 8-Lb. 5-Lb.
Bruoe Unwrapped Wrapped Bag* Bag* Bag* Bag*
Cost group Number of firms
Under ,0.4500 0 0 0 2 0 0 0
00.45 0.4999 . 0 0 0 4 0 0 0
0.50 0.5499 . . 0 0 0 0 0 0
0.55 0.5999 . 1 0 0 3 0 0 0
0.60 06499 a . 3 0 0 2 0 0 0
0.65 0.6999 . *. 10 1 0 1 0 0 0
0.70 0.7499 . 12 0 0 0 1 0 0
0.75 0.7999 . . 12 2 0 1 4 1 0
0.80 0.8499 . 12 1 0 0 9 4 0
0.85 0.8999 .. 7 1 3 0 4 5 0
0.90 0.9499 . 6 3 2 0 7 6 0
0.95 0.9999 . . 1 2 3 0 2 3 1
1.00 1.0499 . 0 3 4 0 2 2 0
1.05 1.0999 ... 2 0 3 0 1 1 1
1.10 1.1499 ... 0 1 3 0 1 1 2
1.15 1.1999 . . 1 0 1 0 0 0 1
1.20 and over . 0 1 2 0 0 0 1
Total number of firms 67 15 21 13 31 23 6
Average cost per firm 00.7917 $0.9372 01.0464 "0.5543 '0.8826 $0.9252 $1.1228
II54 I.82 I.12
Table 4.-Variation in the Cost Per Box of Packing and Selling Florida Citrus Fruit
by Type of Fruit and Type of Container for 73 Packinghouses, 1948-49 Season.
(Concluded)
Tangerines
Type of container 4/5 Bruce* 4/5 Bruce Flat* 4/5 Standard*
Cost group Number of firms
Under $1.0000 . . . 0 0 1
$1.00 1.0499 . . . 3 0 0
1.05 1.0999 . . .. 7 1 1
1.10 1.1499 ,. . . 7 2 0
1.15 1.1999 . . .. 8 2 1
1.20 12499 . . . 12 3 2
1.25 1.2999 . . . 6 1 1
1.30 1.3499 . . 5 2 1
1,35 13999 . *. 1 1 3
1.40 1.4499 . . . 1 1 7
1.45 1.4999 . . 1 0 0
1.50 1.5499 . . . 0 0 2
1.55 1.5999 . .. o 0 0 1
1.60 and over .. 1 0 2
Total number of firms 52 13 22
Average cost per firm $1,2082 $1.2357 $1.3719
* 1-3/5 bushel equivalent.
Table 5.-Variation in the Cost Per Box of Packing and Selling Texas Citru' 13
Fruit by Type of Fruit and Type of Container for 24
Packinghouses, 1948-49 Season.
Oranges
1-3/5
Type of container 1-3/5 Standard 4/5 1/2 Box 8-lb. 5-lb.
Bruce Vfrapped Bruce* Bag* Bag* Bag*
Cost group Number of fijrm
Under 30.7000 . 1 0 0 4 0 0
$0.70 0.7499 . .. 1 0 0 1 0 0
0.75 0.7999 .... 3 0 0 4 0 0
.80 0.8499 .... 5 0 0 2 0 0
0.85 0.8999 .. 4 0 0 3 1 0
0.90- 0,9499 . 3 0 1 3 1 0
0.95 0.9999 ... 0 1 0 0 0 0
1.00 1.0499 . .. 1 1 2 0 3 0
1.05 1.0999 .... 0 0 1 0 5 0
1.10- 1.1499 . 0 2 4 1 4 1
1.15 1.1999 ... 1 3 1 2 2
1.20 1.2499 .. 1 0 1 0 1 1
1.25 1.2999 .... 0 3 2 0 0 2
1.30 1.3499 . .. 0 3 0 0 1 6
1.35- 1.3999 .... 0 0 0 0 0 0
1.40 and over . 1 3 1 0 2 8
Total number of firms 20 15 19 20 20
Average cost per firm $0.8898 $1.2759 $1.1532 $0.82$9 $1.13.44 $1.3699
Grapefruit
1.-3/5
Type of container 1-3/5 Standard 1/2 Box 10-lb. 8-lb. 5-lb.
Bruce Wrapped Bag_ Bag* Bag, Bag
Cost group Numnm "f firms
Under $0.6500 . 1 0 3 0 0 0
$0.65 0.6999 .... 3 0 2 1 0 0
0.70 0.799 . 4 0 6 1 0 0
0.75 0.7999 .. .. 8 0 0 2 2 0
0.80 0.8499 .. .. 1 0 2 2 3 0
0.85 0.8999 ... 2 1 1 2 1 0
0.90 0.9499 ... 1 0 0 4 3 0
0.95 0.9999 .... 0 1 0 1 4 1
1.00 1.0499 .... 1 2 0 1 5 3
1.05 1.0999 .. .. 0 4 1 2 2 0
1.10 1.1499 .... 1 1 0 0 0 0
1.15 1.1999 ... 0 4 0 0 1 2
1.20 1.2499 1 3 0 0 0 1
1.25- 1.2999 . 0 0 0 0 0 3
1.30 and over . .. 1 0 1 2 3
Total number of firms 23 17 15 17 21 13
Average cost per firm $0.8054 $1.1291 $0.7334 Ft 9237 $1.0122 $1.2328
* 1-3/5 bushel equivalent
Table 6g-Variation in the Cost Per Box
Fruit and Type of Container for
14
of Packing Florida Citrus Fruit by Type of
73 Packinghouses, 1948-49 Season.
Oranges
1-3/5 1-3/5 1/2
Type of container 1-3/5 Standard Standard Box 20-Lb, 8-Lb. 5-Lb.
Bruce Unwrapped Trapped Bag* Bag* Bag* Bag*
Cost group Number of firms
Under $0,4000 . 0 0 0 5 0 0 0
$0.40 0.4499. . 0 0 0 7 0 0 0
0.45 0.4999 ... 0 0 0 13 0 0 0
0.50 0,5499 . 1 0 0 8 0 0 0
0.55 0.5999 * 6 0 0 6 6 0 0
0.60 0.6499 22 0 0 2 10 0 0
0.65 06999# . 15 1 0 1 13 1 0
0.70 0*7499 14 1 1 0 4 5 0
0.75 0.7999 . 5 3 0 0 2 9 0
0.80 0.8499 . 3 4 1 0 1 14 2
0.85 0.8999 1 3 3 0 1 10 1
0.90 0.9499 . 0 1 4 0 0 4 1
0.95- 0.9999 . O 0 3 0 0 3 2
1.00 1.0499 0 1 6 0 0 1 5
1,05 1.0999 . 0 1 2 0 0 0 2
1.10 1.1499 . 0 0 0 0 0 0 5
1.15 1.1999 . 0 0 0 1 0 0 0 2
1.20 and over . 1 0 2 0 0 0 1
Total number of firms 68 15 23 42 37 47 21
Average cost per firm 0.6836 $0.8350 ,(1.0037 ""0.4951 i0.6616 50.8350 r1.0415
Grapefruit
1-3/5 1-3/5 1/2
Type of container 1-3/5 Standard Standard Box 10-Lb. 8-Lb. 5-Lb.
Bruce Unwrapped Wrapped Bag Bag* Bag* Bag*
Cost group Number of firms
Under 0.3000 .... 0 0 0 1 0 0 0
00.30 0*3499 .. 0 0 0 1 0 0 0
0,35 0.3999 . 0 0 0 5 0 0 0
0.40 0.4499 . 0 0 0 2 0 0 0
0.45 0.4999 .* 1 0 0 2 0 0 0
0*50 0.5499 . 8 0 0 0 0 0 0
0.55 0.5999 19 1 0 2 0 0 0
0.60 0.6499 . 15 1 0 0 6 0 0
0.65 0.6999 . 9 2 1 0 9 4 0
0,70 0.7499. . 6 0 0 0 4 7 0
0.75 0.7999 . o 5 4 5 0 9 6 0
0.80 0.8499 . 2 6 2 0 0 4 0
0.85 0.8999 . 1 0 5 0 3 1 1
0*90 0.9499.. . 0 0 2 0 0 1 1
0.95 0.9999 .. 1 0 3 0 0 0 2
1.00 1.0499. . 0 1 1 0 0 0 2
1.05 1,0999 0 0 0 1 0 0 0 0
1.10 and over . 0 0 1 0 0 0 0
Total number of firms 67 15 21 13 31 23 6
Average cost per firm $0.6367 00.7724 $0.8865 00.4188 00.7228 00.7667 00.9629
Table 6.-Variation in the Cost Per Box of Packing Florida Citrus Fruit by Type of
Fruit and Type of Container for 73 Packinghouses, 1948-49 Season.
(Concluded)
Tangerines
Type of container 4/5 Bruce* 4/5 Bruce Flat* 4/5 Standard*
Cost group Number of firms
Under 00.8500 . . . 0 0 1
$0.85 0.8999 . . . 3 0 0
0.90 0.9499 . . . 10 0 1
0.95 -0.9999 . . . 11 4 0
1,00 1.0499 .. . . 14 2 2
1.05 1.0999 . . . 6 4 1
1.10 1.1499 . . . 4 -20 2
1.15 1.1999 . .. 3 4
1.20 1.2499 . .. 0 0 5
1.25 1.2999 . . . 0 1 2
1.30 1.3499 .. . . 0 0 3
1.35 and over * .. . 1 0 1
Total number of firms 52 13 22
Average cost per firm $1.0185 $1.0625 $1.1761
* 1-3/5 bushel equivalent.
16
Table 7,-Variation in the Cost Per Box of Packing Texas Citrus Fruit by Type
of Fruit and Type of Container for 24 Packinghouses, 1948-49 Season.
Oranges
Type of container
1-3/5
1-3/5 Standard 4/5
Bruce Jrapped Eruce*
Cost group
Under $0.4500
$o.U4 0o.999
0.50 0.5499
0.55 0.5999
0,60 0.6499
0.65 0.6999
0.70 0.7499
0.75 0.7999
0.80 0.8499
0.85 0.8999
0.90 0.9499
0.95 0.9999
1.00 1.0499
1.05 1.0999
1.10 1.1499
1.15 1.1999
1.20 and over
1/2 Box
Bafe*
8-lb.
Bafe
Number of firms
0
0
0
0
0
0
0
0
3
3
4
1
1
2
1
0
0
5-lb.
Bag~
J3?!^-
0
0
0
0
0
0
0
0
0
0
1
1
3
3
2
U
6
6
Total number of firms 20 14 15 19 20 20
Average cost per firm $0,6721 $1.O433 $0.9420 $0.6086 $0.9165 $1.1520
Grapefruit
S1-3/5--
Type of container 1-3/5 Standard 1/2 Box 10-lb. 8-1b. 5-lb.
Bruce Wrapped Bag- Bag-. Bag* Bag*i
Cost group Number of firms
Under $0.400. . 0 1 0 0 0
$o.o5 0.999.... 0 0 3 0 0 0
0.50 0.599 .... 2 0 3 0 0 0
0.55 0.5999 ... 9 0 5 0 0 0
0.60 0.6499 .... 7 0 2 3 0 0
0.65 0.6999 ..,. 1 0 0 L 1 0
0.70 3.7499 . 1 0 0 2 5 0
0.75 0.7999 .. 0 0 1 3 4 0
0.80 0.899 ... 1 2 0 1 4 1
0.85 0.8999 .... 2 3 0 2 2 1
0.90 0.9499 . 0 4 0 1 2 1
0.95 0.9999 .... 0 2 0 0 0 2
1.00 1.0499 0 3 0 0 1 0
1,05 1.0999 0 1 0 1 1 6
1.1 1.199 . 1 o 0 0 0
1.15 1.1999 .... 0 0 0 0 0 0
1.20 and over .. 0O 1 0 0 1 2
Total number of firms 23 17 15 17 21 13
Average cost per firm $0.6343 $0.9616 $0.5625 $0.7549 $0.8359 $1.0576
* 1-3/5 bushel equivalent.
Bruce Wranned BrucWN-
w
Relationship of Volume to Cost of Packing and Selling
Packinghouses were classified according to volume of fruit handled in
order to compare costs for houses having different size operations, The
results for Florida packinghouses are shown in Tables 8 and 10, and for Texas
packinghouses in Tables 9 and 11. The average of the costs for Florida
oranges in 1-3/5 bruce boxes for houses that handled under 100,000 boxes
was highest at $1.00. Averages of houses falling into each of the larger
volume groups were progressively lover until the lowest average cost reached
$0.81 for those houses that handled over 700,000 boxes of fruit. It will be
noted that average labor costs per box were lower as larger volumes of fruit
were handled. In most cases, other direct operating, indirect operating
and administrative and selling costs also varied inversely with volume. A
similar relationship between volume and cost is apparent for Texas packing-
houses.
Table 10 indicates that none of the five Florida packinghouses that
packed under 100,000 boxes of fruit had a per box cost for oranges in 1-3/5
bruce boxes less than $0.90. Two had costs between $0.90 and $1.00, two
between 01.00 and $1.10 and one had an average cost over $1.10. On the other
hand, five of the 12 firms that handled over 700,000 boxes had costs for
oranges in 1-3/5 bruce less than $0.80 and the remaining seven had costs
between $0.80 and $0.90. Similarly, more of the Texas houses that handled
small volumes of fruit had costs in the higher cost groups and more of those
that had large volumes had costs in the lower cost classifications (Table 11)o
However, it is not inferred that volume alone is responsible for
variations in cost per box among packinghouses. For example, four of the
16 Florida houses whose volume was between 100,000 and 200,000 boxes, a
comparatively small volume, had a cost for oranges in bruce boxes less than
$0.80. The extent to which volume of fruit handled, regardless of whether
that volume is large or small, utilizes the existing capacity of a plant in
the form of building, equipment and management, is probably one of the most
important ways in which volume is related to cost. A small packinghouse
operated at near capacity all season may have a lower cost per box than a
large house with a comparatively large volume but whose volume is still not
large enough to utilize its facilities at near capacity. The floor arrange-
ment and type of equipment used in the packing process, the distance and
means of conveyance from the unloading platform to the dump belt or coloring
room, the distance and means of conveyance from the end of the packing line
to the place of loading or storage and many other factors also are believed
to have an important influence on cost.
Table 8.-Relation of Volume to Cost of Packing and Selling Florida
Citrus Fruit in Bruce Boxes by Type of Fruit for 68 Packinghouses
1948-49 Season.
Volume* Under 100,000- 200,000- 400,000- 700,000 All groups
100,000 199,999 399,999 699,999 & over combined
Oranges 1-3/5 Bruce
Number of packinghouses 5 16 18 17 12 68
Boxes per packinghouse 25,888 51,705 104,103 166,809 346,841 144,535
Items of cost:
Material . . $0.3807 $0.3736 $0.3676 00.3715 00.3781 80.3738
Labor:
Receive, truck, dump 3000532 t0.0349 30.0307 00.0280 30.0244 00.0279
Crate making & labeling00368 0.0359 0.0276 0.0286 0.0249 0.0276
Foreman,graders,others 0.0696 0.0512 0.0494 0.0447 0.0394 0.0442
Wrap and pack . 0.0596 0.0625 0.0575 0.0553 0.0606 0.0586
Truck, check, load 0.0416 0.0360 0,0363 0.0266 0.0283 0.0301
Payroll taxes . 0.0093 0.0075 0.0067 0.0084 0.0039 0.0062
Total labor . $0,2701 0.2280 0,62082 $0.1916 00.18185 0.1946
Other direct operating 0.0695 90.0506 .0,0501" 0.0533 $0.049 00496
Indirect operating . 30,0596 00.0411 '0.0358 $0.0287 00.0247 30.0298
Total packing cost $0.7799 30.6933 $0.6617 $0.6451 0.6302 Q0,6478
Administrative & selling0.1319 '6.0935 30.0937 "0.0894 '0,0755 "0.0852
Other cost . . . 0,0889 00818 $60920 0.1043 ;$0.1046 0.100O
Total cost . . 1.0007 0.8686 0.8474 $0.8388 30.8103 30.8330
Grapefruit 1-5/5 Bruce
Number of packinghouses 5 16 17 17 12 67
Boxes per packinghouse 10,769 16,759 54,359 82,013 153,582 66,879
Items of cost:
Material . . . $0.3734 $0.3783 $0.3678 $0.3702 $0.3788 $0.3738
Labor:
Receive, truck, dump $0.0455 00,0299 00.0255 30.0238 ;0,0205 $0.0234
Crate making & labelingO.0315 0.0292 0.0279 0.0304 0.0239 0.0272
Foreman,gradersothers 0.0701 0.0423 0 0334 0.0275 0.0287 0.0306
Wrap and pack . 0.0425 0.0476 0.0419 0.0392 0.0462 0.0431
Truck, check, load 0.0315 0.0376 0.0310 0.0283 0.0247 0.0279
Payroll taxes . 0.0068 0.0092 0.0059 0.0059 0.0035 0.0052
Total labor . 80.2279 $00.1958 00.1656 $0.1551 30.1475 00.1574
Other direct operating 00.0454 00.0403 00.0432 00.0376 00.0312 00.0364
Indirect operating . 00.0561 $0.0376 $0.0251 00.0227 .0,0189 $0.0229
Total packing cost $0.7028 30.6520 0.6017 $0.5856 0O.5764 0.5905
Administrative & selling30.1290 60.0780 $0,0903 00.0859 :30.0560 00.0746
Other cost . . . $0,0589 00.0657 00.0723 00.0687 00.0728 00.0708
Total cost . $0.8907 0.7957 0.7643 00.7402 00.7052 $0.7359
Table 8.-Relation of Volume to Cost of Packing and Selling Florida
Citrus Fruit in Bruce Boxes by Type of Fruit for 68 Packinghouses,
1948-49 Season (Concluded).
Volu* Under 100,000- 200,000- 400,000- 700,000 All groups
Volume* 100,000 199,999 399,999 699,999 & over combined
Tangerines 4/5 Bruce**
Number of packinghouses 5 9 15 13 10 52
Boxes per packinghouse 4,874 15,794 16,910 24,348 28,297 19,609
Items of cost:
Material . . $0.5772 00.5768 $0.5746 $0.5701 $0.5608 $0.5697
Labor:
Receive, truck, dump ,0.0588 ?0.0412 00.0396 $0.0269 Q0.0401 .0.0365
Crate making & labeling0.0425 0.0513 0.0363 0.0495 0 0498 0.0464
Foreman,graders,others 0.1251 0.0624 0.0776 0.0546 0.0710 0.0676
Wrap &nd pack . 0.1157 0.1065 0,1055 0.0970 0.1008 0.1019
Truck, check, load 0.0636 0.0430 0.0542 0.0424 0.0552 0.0495
Payroll taxes . 0.0090 0,0067 0.0086 0,0117 0.0102 0.0098
Total labor . .0.4147 00.3111 0.13218 00,2821 0,.5271 00.3117
Other direct operating 0..0745 0Q.0703 $0,0664 0.0764 O0,.0850 0.0-0754
Indirect operating 60.1430 00.0485 00.0482 1 0.0378 j0.0416 ~0455
Total packing cost 51.2094 1,.0067 $1.0110 .0.9664 1,0145 l..002.3
Administrative & selling0O.1373 ,0. 0743 Q0 .1036 .o.00948 00819 0. 0916
Other cost *. . . 0,'0754 '0.0772 "0,0987 0.10 00-1031 00.0977
Total cost . . ~ .4221 ?1.1582 ""1.2133 1.1644 1.1995 01.1916
* In making volume sort, the total number of boxes of all kinds of fruit, packed
and bulk, handled through the packinghouse was used,
*# 1-3/5 bushel equivalent.
Table 9.-Relation of Volume to Cost of Packing and Selling Texas Citrus
Fruit in 1-3/5 Bruce Boxes, 1948-49 Season.
Volume Under 200,000- 350,000- 500,000 All groups
200,C00 349,999 499,999 and over combined
Oranges
Number of packinghouses 5 6 5 20
Boxes per packinghouse 17,295 21,752 26,197 33,462 24,455
Itemsof cost:
Material . . . . $0.353 $0.08 $0*3549 $0.3591 $0.35j2
Labor: -
Receive, track, dump ) 0o.0h38 $0.0169 $0.0200 $0o026-
Crate making labelingng 0I77 0.0151 0.0210 0.0161 TY.72
Foreman, graders, others 0.03 0.Oj17 0.0537 0.0351 0.022
WraD and pack . . 0.0558 .0511 0.0552 0.0548
Truck, check, load . O42 0.0488 0,0360 0.0375 O.O41
Payroll taxes . . 0.0005 0.0012 0.0012 0.0010 0.0010
Total labor . . $0.1853' $0.2064 80 1799 $0.1649 30.1828
Other direct operating $0 29 Qo.035 00565 o.0472 50.0465
Indirect operating . 0.6881 .0560 504062 $0.O0g5 0.6056
Total packing cost 0.6797 0.667 o.075 $0.6117 0.65 8
Administrative & selling .O0.1756 Q0.1390 $0.1207 $0.1125 00.1325
Other cost . . $0.0794 70.0693 $0.0615 80.0879 50.0O01
Total cost . . O '93i7 ;o.8550 0-6.597 -SO*6121 8-0
Grapefruit
lumner or packingiouses 6 15 5 -
Boxes per packinghouse 51,449 77,395 197,B51 201,315 118,489
3temsof cost:
Material . . . . $0.3698 $0.3574 $0.3639 $0.3531 $0.3591
SLabor:
Receive, truck, dump $0.0257 40.0377 $0.0148 $0.0218 $0.0238
Crate making & labeling 0.0186 0.0176 0.0260 0.0166 0.0195
Foreman,graders,others 0.0363 0.0403 0.0258 0.0322 0,0326
Wrap and pack . . 0.0343 0.0356 0.0338 0.0337 0.0343
Truck, check, load . 0.0345 0.0391 0.0198 0.0389 0.0332
Payroll taxes .. . 0.0 001 016 0.000O 0.0010 0.0009
Total labor . 4. 0.1U98 .1719 o0.120, 40.1L42 $0.1443
Other direct operating 0O.0532 50.0374 $0.0390 0.002 S.0,07
Indirect operating 0.0929 00.0589 $0.0456 80.03n7 $0.0199
Total packing cost. $0.6657 $0.62F6 $0.5691 $0.5722 So. 940o
Administrative & selling 0.1465 50.1488 $0.1205 $0.1088 $0.1256
Other cost . . . $0.0431 $0.0324 .0.0313 0.02668 0312
Total Cost. .... o.8553 So. 8 0.7209 ,0.7078 .0.7508
Table 10-Variation in the Cost Per Box of Packing and Selling Florida Citrus
Fruit in Bruce Boxes by Type And Volume of Fruit Handled for
68 Packinghouses, 1948-49 Season*
Volume* Under 100,000- 200,000- 400;000- 700,000
100,000 199,999 399,999 699,999 and over
Cost group Number of firms
Oranges 1-3/5 Bruce
Under $0,8000... 0 4 3 4 5
00.80 0.8999. 0 4 11 10 7
0,90 0.9999 0 2 6 3 3 0
1,00 1.0999 . 2 1 1 0 0
1,10 and over . .. I 1 0 0 0
Total number of firms 5 16 18 17 12
Average cost per firm 1.0659 $0,8895 $0.8633 $0.8393 $0.8080
Grapefruit 1-3/5 Bruce
Under $047000 # 0 2 2 5 5
$0.70 0.7999 0 3 7 8 6
0.80 0.8999 . 1 6 7 4 1
0.90 0.9999 3 3 1 0 0
1.00 and over . 1 2 0 0 0
Total number of firms 5 16 17 17 12
Average cost per firm 60.9672 $0,8437 $0.7762 $0.7523 00.7272
Tangerines 4/5 Bruce**
Under $1.1000 . 0 3 1 5 1
$1.10 1,1999 ,. 0 4 3 5 3
1.20 1.2999 . 3 2 5 3 5
1.30 1.3999 1 0 5 0 0
1.40 and over 1 I 0 1 0 1
Total number of firms 5 9 15 13 10
Average cost per firm 01.3658 $1.1501 $1.2507 $1.1368 $1.2108
kinds of fruit, packed
**1-3/5 bushel equivalent.
* In making volume sort the total number of boxes of all
and bulk, handled through the packinghouse was used,
Table 11.-Variation in the Cost Per Box of Packing and Selling Texas Citrus
Fruit in Bruce Boxes by Type and Volume of Fruit Handled for
24 Packinghouses, 1948-49 Season.
Volume Under 200,000- 350,000- -5000,000-
Volumes 200,000 3)9,999 499,999 and over
Cost group Number of firms
Oranges 1-3/5 Bruce
Under $0.8000 . . 1 2 2
00.80 0.8999 . . 1 1 3
0.90 0.9999 . . 2 0 1 0
1.00 1.0999 . . 0 1 0 0
1.10 1.1999 . . 0 0 0 0
1.20 and over . 2 0 0 0
Total number of firms 5 6 h 5
Average cost per firm $1.0683 $0.8717 $0,8150 40.7928
Grapefruit 1-3/5 Bruce
Under $0.7000 . 1 1 2
$0.70 0.7999 . 3 4 2 3
0,80 0.8999. . . 1 1 1 0
0.90 0.9999 . . 0 1 0 0
1.00 1.999 . 1 0 0 0
1.10 and over . 1 1 0 0
Total number of firms 6 8 4 5
Average cost per firm $0.8852 $0.8421 $0.7350 0;0.7070
of fruit, packed
* In making volume sort the total number of boxes of all kinds
and bulk, handled through the packinghouse was used.
Packing and Selling Costs by Types of Firms
Average packing and selling costs in bruge boxes for packinghouses
that were integraipd with canning plants, for those that were affiliated
with canning plants but were not in the same organization, and for special-
ized packinghouses are shown in Table 12. Total per box costs for oranges
by integrated packinghouses were lower than per box costs by specialized
houses by slightly less than $0.04 and lower than affiliated houses by
slightly less than 0,.05. Integrated houses had an average cost for pack-
ing and selling grapefruit about $0,04 lower than specialized packinghouses
but only about $0.01 lower than affiliated houses. Integrated and specialized
houses had about the same average cost for packing tangerines in 4/5 bruce
boxes and their averages were about 00.06 lower than the average for affili-
ated houses.
Integrated houses had slightly lower average costs for indirect
operating and administrative and selling for oranges an4 grapefruit, The
lower costs may be due in part to organizational set up but probably also
to the larger volume handled by most integrated firms.
Table 12.-Cost of Packing and Selling Florida Citrus Fruits in Bruce Boxes by
Type of Fruit and Type of Firm for 68 Packinghouses,
1948-49 Season,
Type of firm Integrated Specialized Affiliated
Oranges 1-3/5 Bruce
Number of packinghouses 10 42 16
Boxes per packinghouse 219,926 105,661 1994
Items of cost:
Material . . . 0.3661 $0.3799 $0.3706
Labor:
Receive, truck, dump . . 0.0255 00,0317 00.0243
Crate making & labeling * 0.0257 0.0307 0.0245
boreman,graders,others . 0.0437 0.0420 0.0477
Wrap and pack * @ * * 0.0594 0.0563 0.0613
Truck, check, load . . 0.0307 0.0298 0.0303
Payroll taxes * 0.0066 0,0055 0.0066
Total labor . . . 0.1916 .1960 0.1947
Other direct operating $0.0445 00.0521 0.0496
Indirect operating . . . $0.0198 $0.0361 Q0.0280
Total packing cost . 0. 0.6220 0,6641 -0.6429
Administrative.& selling . 0.0767 QO.087.3 00.0881
Other cost . . . $0.124 6. 0866 6O.1169
Total cost. . . . 0$.8011 0.'8380 $0.8479
Grapefruit 1-3/5 Bruce
Number of packinghouses 10 41 16
Boxes per packinghouse 104,709 46,983 94,220
Items of cost:
Material . ., . .
Labor:
Receive, truck, dump . ,
Crate making & labeling .
Foremangraders,others * *
Wrap and pack * *
Truck, check, load .
Payroll taxes * *
Total labor . .
Other direct operating . .
Indirect operating . . .
Total packing cost .
Administrative & selling . .
Other cost a. *. . .
Total cost *. . .
00.3675
:0.0211
0.0252
0.0330
0.0423
0.0268
0.0051
p0.1535
60. 0369
S0.0168
$0,.5747
$0.0721
~070694
0.I7162
$0.3822
o000257
0.0295
0.0323
0.0442
0.0304
0.0056
50.1677
0. 0356
00. 28 7
00.6142
0. 0745
$0.0633
60.7520
0.3673
$0.0220
0.0256
0.0268
0.0424
0.0256
0.0047
o0.1471
'O.0371
00.019o 7
$0.5712 3
$0.0764
10. 0815
$0.7291
- -- --
- -
--
~
..
- i- _;.__~ _
~_ ___-_
1 I 1 I I II I .. . . .. .
26
Table 12*-Cost of Packing and Selling Florida Citrus Fruits in Bruce Boxes by
Type of Fruit and Type of Firm for 68 Packinghouses.
1948-49 Season (Concluded).
Type of firm Integrated Specialized Affiliated
Tangerines 4/5 Bruce *
Number of packinghouses 7 33 12
Boxes per packinghouse 2,087 16,676 26,940
Items of cost:
Material, *, 0.5506 $0,5757 $0.5682
Labor:
Receive, truck, dump . . 00,0267 0.,0377 00.0390
Crate making & labeling .* 0.0610 0,0390 0.0522
Foreman,graders,others * 0o0739 0.0608 0.0765
WIrap knd pack * * * 0.0962 0.1045 0.1000
Truck, check, load . . 0.0577 0.0428 0.0571
Payroll taxes . . . 0.0114 0.0067 0.0142
Total labor , . . 0,3269 0.2915 0.3390
Other direct operating . . 60.0691 90,0738 $0.0810
Indirect operating . . . 00.0328 Q0.0543 90.0363
Total packing cost . . 0.9794 $0.9953 Ql,0245
Administrative & selling . 0.1029 0.0875 0.0934
Other cost . . . . 0.0940 00.0874 00.1171
Total cost . . . . 01.1763 $1.1702 01.2350
* 1-3/5 bushel equivalent.
PROCESSED PRODUCTS
Cost of Processing, Warehousing and Selling Citrus Juices and Sections
Average costs per case for processing, warehousing and selling citrus
fruit juices increased considerably in both Florida and Texas from the 1946-
47 through the 1948-49 seasons (Table 13). The increase was between $0.10
and $0.11 for Florida and between $0.23 and $0.26 in Texas per 12/404 case
for the three season period. WTith the exception of grapefruit for the
1946-47 season, costs were lower in Texas than in Florida during each of the
first two seasons but were higher in Texas than in Florida for the 1948-49
season. As was the case with costs for packing fresh fruit, the higher cost
per unit in Texas for the latter season was probably the result of reduced
volume due to the 1949 freeze.
Tables 14 and 15 show costs per case by major items of expense for
canned citrus juices and sections in various size containers for Florida
and Texas for the 1948-49 season. Orange juice cost Florida firms an average
of $1.13 in 24/2, $1.17 in 12/404 and $1.10 in 6/10 cases, with the cost of
sugar excluded. The average cost of grapefruit juice with sugar costs ex-
cluded, was $1.10, $1.17 and $1.08 for 24/2, 12/404 and 6/10 cases respectively.
Costs for Texas canneries shown in Table 15 for 12/404 cases only were
$0.09 per case higher for orange juice and ?0.18 per case higher for grape-
fruit juice than average costs in this container in Florida. Other manu-
facturing costs and administrative and selling costs were considerably higher
for Texas firms and the average cost for materials was also somewhat higher,
especially in the case of grapefruit. Total labor cost was from $0.02 to $0.05
per 12/404 case lower for Texas than for Florida plants.
The average cost for blended juice in 12/404 cases, excluding sugar cost
was $1.15 in Florida and $1.19 in Texas. Grapefruit sections cost an average
of $2.03 for Florida firms and $2.08 for plants in Texas.
Table 13.-Average Cost of Processing, Warehousing and Selling
Florida and Texas Citrus Fruit Juices, Excluding Sugar Costs, in
12/404 Cases, 1946-47 Through 1948-49 Seasons.
Season 1948-49 1947-48 1946-h7
Florida
Orange juice $1.1672 $1.0920 $1.0558
Grapefruit juice .i1685 1.0909 1.0574
Blended juice 1.1488 1.0930 1,O498
Texas
Orange juice $1.2559 $0.9962 $1.0028
Grapefruit juice 1.3463 1.0402 1.0815
Blended juice 1.1926 0.9925 0.9650
29
Table 14.-Cost Per Case of Processing, Warehousing and Selling Florida Citrus
Fruit Juices by Type of Juice and Type of Container for 23 Canneries,
1948-49 Season.
Orange Juice Orange Sections
Type of container 24/2 12/404. 6/10 2/2
Number of firms 21 23 8 12
Cases per firm 155,920o 3 06,041 2770 4,624
Cost excluding sugar
Items of cost:
Material . . . . . . .0.7640 $0.7473 $0.6954 ,0O.7569
Labor:
Direct . .. . . . . 0.0560 0.0644 $0.0767 $1.0735
Indirect . . . . 0.0174 0.0191 0.0162 0,0731
Warehousing & shipping . . ... 0.0389 0.0405 0.0331 0.0342
Total labor . . . $0.1123 d0.1240 $0.1260 31.1808.
Other manufacturing cost . . . 0.1402 0.1680 $0.1601 0.2397
Total processing & warehouse cost $1.0165 $1.0393 30.9815 32.1774
Administrative cost . . . . j0.0557 50.06 3 30.0554 ;0.050os
Selling cost . . . . . 0.0315 0.0359 0.0345 0.0280
Total administrative & selling cost $0.0872 0.1002 70.0899 $0.0764
Other cost . . . . . ..0223 50.0277 W0.0275 o0.0187
Total cost . .. . .. 8,1.1260 01.1'672 1l.0989 $ 02.2745
Cost of sugar
Number of firms 21 22 7 12
Sweetened cases per firm 102,757 194,060 1,062 4,624
Sugar 40.0341 ,0.0307 .0.0356 ;0.1865
Total cost $1.1601 2.4610
Grapefruit Grapefruit
Juice Sections
Type of container 24/2 12/40 6/10 2V/2
Number of firms 21 23 9 16
Cases per firm 85,850 161,577 4,286 146,694
Cost excluding sugar
Items of cost:
Material . . .... . . $0.7550 $0.7542 $0.6619 $0.7567
Labor:
Direct . . . . . . .. $0.0557 $0.0633 $0.0672 $0.8058
Indirect . . . . . 0.0170 0.0209 0.0245 0.0752
Warehouse & shipping ....... 0.0390 0.0429 0.0435 0.0419
Total labor 0.1117 0,?0.1271 3 0.1352 0.9229
Other manufacturing cost . . 0.1259 $0.1529 $0.1509 S0.2342
Total processing & warehouse cost O0.9926 51.0342 *0.9480 $1.9130
Administrative cost . . ... . 0.0505 30.0601 0.0501 0.60635
Selling cost . . . . . . 0.0266 0.0336 0.0401 0.0287
Total administrative & selling cost "0.071 771 0.0937 0.0902 0.0922
Other cost . . . . . .. W0.0325 30.0406 50.0415 00.0277
Total cost . . .. . 1.1022 $1.1685 31,0797 i2.0337
Cost of sugar
Number of firms 21 22 8 16
Sweetened cases per firm 52,483 104,863 1,492 146,627
Sugar 30.0625 30.0757 50.0815 W0.2232
Total cost 1.16? 52.2509
Table 14.-Cost Per Case of Processing, Warehousing and Selling Florida Citrus
Fruit Juices by Type of Juice and Type of Container for 23 Canneries,
1948-49 Season (Concluded).
Blended Juice Salad Sections
Type of container 24/2 12/UO4 6/10 24/2
Number of firms 21 22 8 15
Cases per firm 8U,0 217,6U6 1,838 36,100
Cost excluding sugar
Items of cost:
Material . . . . $0.7627 $0.7436 $0.6972 $0.7760
Labor:
Direct . . . . .. $0.0569 $0.0638 $0.0826 $1.0024
Indirect ...... . . .012 0.0173 0.0242 0.0666
Warehousing & shipping ...... 0.0379 0.0396 0.0394 0o.019
Total labor . . . . . 30.1100 0.1207 ,0.1L62 1.1109
Other manufacturing cost . . .. $0.1293 $0.1556 $0.1554 $0.2509
Total processing & warehouse cost $1.0020 $1.0199 $0.9968 $2.l378
Administrative cost . .. 0.027 0.07 0.0634 $0.056
Selling cost . . . . . . 0.0274 0.0328 0.0383 0.0277
Total administrative & selling cost $0.0801 $0.0945 $0.1017 $0.061
Other cost . . ..0272 $0.03 0.0356 0.02
Total cost . . . . 1.093 1.1488 $1.1361 $2.2.63
Cost of sugar
Number of firms 21 22 7 15
Sweetened cases per f rm6,001 8,96 1,335 36,100
Sugar 0 0506 40.00558 60.0639 50.2022
Total cost $1.1597 $1.2066 $2.45...
Table 15. Cost Per Case of Processing, Warehousing, and Selling Texas
Citrus Fruit Juices in 12/404 Cases and Grapefruit Sections in
24/2 Cases for 13 Canneries, 1948-49 Season.
Type of Container 12/404 24/2
Product Orange Grapefruit l3ended Grapefruit
juice juice juice sections
Number of firms 6 13 6 5
Cases per firm 43.548 130.177 18,518 14,206
Cost excluding sugar
Items of cost:
Material $0.7798 $0.8245 $0.7799 $0.8279
Labor:
Direct $0.0384 $0.0501 $0.0378 $0.9054
Indirect 0.0115 0.0348 Q.0179 0.0723
Warehousing & shipping 0.0226 0.0233 0.0361 0.0269
Total Labor $0.0725 $0.1082 $0.0918 $1.0046
Other manufacturing cost$0.2499 S0.2617 $0.1937 $0.1329
Total processing and
warehouse cost $1.1022 $1.1944 $1.0654 $1.9654
Administrative cost $0.0782 $0.0930 $0.0673 $0.0842
Selling cost 0.0713 0.0539 0.0496 0.0230
Total administrative
and selling cost$0.1495 $0.1469 .0.1169 t0.1072
Other Cost $0.0042 $0.0050 '0.0103 S0.0040
Total Cost $1.2559 $1.3463 $1.1926 $2.0766
Cost of Sugar
Number of firms 5
Sweetened cases per firm 14,206
Cost of sugar $0.1524
Total Cost $2.2290
Variation in Processing, Warehousing and Selling Cost
Variations in costs among firms for processing, warehousing and
selling Florida citrus juices are shown in Table 16 and for processing and
warehousing with administrative and selling costs excluded in Table 17.
The former table represents variations in total expense and the latter shows
variations in operating costs only* Sixteen of the 21 Florida firms that
processed orange juice in 24/2 cases had costs between $1,00 and 1.@30 with
the sugar cost excluded, and 15 had costs within this range for sweetened
orange juice. Then administrative and selling costs were excluded 17 of
the 21 firms processing orange juice in 24/2 cases had costs between $0.90
and $1.20 (Table 17). Variations in cost appear to be somewhat greater for
processing orange, grapefruit and blended juice in 12/404 cases than was the
case in 24/2 cases.
Costs for processing, warehousing and selling Texas grapefruit juice
in 24/2 cases varied from less than $1.10 to over 1,50 with costs for nine
of the 13 firms between $1.10 and $1*40 (Table 18). In 12/404 oases costs
varied from $1.10 to over $1.60 with eight of the 13 firms having costs
between $1.10 and $1.40. There was considerably less variation in operating
costs for Texas firms as shown in Table 19 than was the case when admin-
istrative and selling costs were included. Twelve of the 13 firms had costs
between $1.00 and $1.30 for grapefruit in 24/2 cases and 12 out of 13 had
costs between $1.00 and $1.40 in 12/404 oases.
Tables 20 and 21 show the range in costs for firms that packed grape-
fruit sections in Florida and Texas. There was considerable variation in
costs for processing, warehousing and selling, especially in Florida and
somewhat less variation when administrative and selling costs were excluded.
Table 16.-Variation in the Cost Per Case of Processing, Viarehousing and Selling
Florida Citrus Fruit Juices by Type of Fruit and by Type of Container
for 23 Canneries, 1948-49 Season.
Type of container 24/2 12/404 24/2 12/404
Excluding Sugar Sweetened
Orange Juice
Cost group Number of firms
Under 0.9000 . . 0 0 0 0
$0.90 0.9999 . . . . 1 1 1 1
1.00 1.0999 . .0 5 2 5 0
1.10 1.1999 . . 8 11 6 7
1.20 1.2999 ., . . 3 1 4 5
1.30 1.3999. . 3 3 2 3
1.40 and over. 1 5 3 6
Total number of firms 21 23 21 22
Average cost per firm 01.1757 01.2868 $1.2112 $1.3369
Grapefruit Juice
Cost group Number of firms
Under $0,9000 . . . 1 1 0 0
$0.90 0.9999. . . 0 0 1 1
1.00 1.0999 . . . 6 2 2 0
1.10 1.1999 . . . 7 11 7 4
1.20 1.2999 . a . 3 2 6 9
1.30 1.3999 . . . 2 1 1 2
1.40 and over . *. . 2 6 4 6
Total number of firms 21 23 21 22
Average cost per firm $1.1736 $1.2860 01.2336 ,1.3619
Blended Juice
Cost group Number of firms
Under $0.9000 . . 0 0 0
$0.90 0.9999 . . . 0 1 0 0
1.00 1.0999. . . 7 3 3 1
1.10 1.1999 . . . 7 10 8 5
1.20 1.2999 . . . 3 2 5 8
1.30 13999. . 3 1 1 2
1.40 and over * . 1 6 4 6
Total number of firms 21 23 21 22
Average cost per firm $1.1794 01.2898 $1.2339 $1.3602
.. I ' I '- " ... ... .
Table 17.-Variation in the Cost Per Case of Processing and Warehousing Florida
Citrus Fruit Juices, Excluding Sugar Costs, by Type of Fruit and by
Type of Container for 23 Canneries, 1948-49 Season.
Type of container 24/2 12/40O
Orange Juice
Cost group Number of firms
Under $0.8000 . . .... . 0
$0.80 0.8999 . .. . . . 1 1
0.90 0.9999 . . . . . .7 5
1.00 1.0999 . . . . . 5 9
1.10 1.1999 .. . . . . 5 2
1.20 and over ............ 3 6
Total number of firms 21 23
Average cost per firm $1.0531 $1.1168
Grapefruit Juice
Cost group Number of firms
Under 0.8000. . . . . . 0
0.80 0.8999 . . . . . .. 1 1
0.90 0.9999 . . . . 8 5
1.00 1.0999 . . . . . . 5 9
i.IO i.6999 ........... 4 3
1.20 and over . . . . . .. 3 5
Total.number of firms 21 23
Average cost per firm $130459 $1,1096
Blended Juice
Cost group Number of firms
Under $0.8000. . . . . . 0 0
$0.80 0.8999 . . . . . .. 0 1
0.90 0.9999 . . . . . . 8 4
1.00 1,0999 . . . . . .. 5 10
1.10 1.0999 ........... . 5 3
1.20 and over . . . . . 3 5
Total number of firms 21 23
Average cost per firm $1.0527 $1.11U8
Table 18.-Variation in the Cost Per Case of Processing, Tfarehousing and Selling
Texas Citrus Fruit Juices by Type of Fruit and by Type of Container for
15 Canneries, 1948-49 Season.
Type of container 24/2 12/404 72/6 6/10
Excluding Sugar
Orange Juice
Cost group Number of firms
Under 01.1000 l 0 0 0 0
$1.10 1.1999 . 4 2 0 0
1.20 1.2999 . .. .. 1 2 0 0
1.30 1.3999 a . . .. 1 1 1 0
1.40 14999 . 0 0 0 0
1.50 1.5999 . . 0 1 0 0
1.60 and over .... 0 0 1 0
Total number of firms 6 6 2 0
Average cost per firm 01.1988 $1.2793 $1.6136 -
Grapefruit Juice
Cost group Number of firms
Under $1.1000 . . 1 0 0 3
$1.10 1.1999 0 . . . 4 3 0 0
1.20 1.2999 . . .. 2 2 0 0
1.30 1.3999 . 3 3 1 2
1.40 1.4999 . 0 . . 2 1 0 1
1.50 1.5999 0 0 0 0 . 1 3 1 0
1.60 and over. . . .. 0 1 3 0
Total number of firms 13 13 5 6
Average cost per firm v1.2807 $1.3662 $1.6557 $1.2388
Blended Juice
Cost group Number of firms
Under 01.1000. . . 0 0 0 0
$1.10 1.1999 . 0 3 1 0 0
1.20 1.2999 o a . a 2 2 0 0
1.30 1.3999 0 a . . 0 3 1 0
1.40 1.4999 . o . .* 0 0 0 0
1.50- 1.5999 . .* * 1 0 1 1
1.60 and over . . o 0 0 0 0
Total number of firms 6 6 2 1
Average cost per firm $1.2372 $1.2225 $1.4890 $ 1.5203
Table 19.-Variation in the Cost Per Case of Processing and Uarehousing Texas
Citrus Fruit Juices, Exlcuding Sugar Costs, by Type of Fruit and by
Type of Container for 13 Canneries, 1948-49 Season.
Type of container 24/2 12/404 72/6 6/10
Orange Juice
Cost group Number of firms
Under $1.0000 . . . . 0 0 0
$1.00 1.0999 . .* 5 2 0 0
1.10 1.1999 . 0 3 0 0
1.20 1.2999. .* . 1 0 0 0
1.30 1.3999 0 . *. 0 0 1 1 0
1.40 1.4999. . . 0 0 0 0
1.50 1.5999 . . 0 0 0 0
1.60 and over. . . 0 0 0 1 0
Total number of firms 6 6 2 0
Average cost per firm $1.0838 $1.1405 $1.4748 0
Grapefruit Juice
Cost group Number of firms
Under $1.0000. . . 0 0 0 3
$1.00- 1.0999. .* . 6 3 0 1
1.10 11999 . . 3 4 0 2
1.20 12999 . . . . 3 2 0 0
1.30 13999. . . . 1 3 1 0
1.40 1.4999 . . 0 0 0 0
1.50 1*5999. . . . 0 1 2 0
1.60 and over. e . 0 0 2 0
Total number of firms 13 13 5 6
Average cost per firm 01.1470 $1.2056 $1.5314 1.0516
Blended Juice
Cost group Number of firms
Under $1.0000. . . 0 0 0 0
v1.00 1.0999 . . . 5 3 0 0
1.10 1.1999. . . . 0 3 0 0
1.20 1.2999 * . 0 0 0 0
1.30 1.3999 . . * 1 0 1 0
1.40 1.4999 .. . . o 0 0 0 1
1.50 1.5999 . . . 0 0 1 0
1.60 and over . . O 0 0 0
Total number of firms 6 6 2 1
Average cost per firm $1.1040 01.0892 01.4105 $1.3385
Table 20.-Variation in the Cost Per Case of Processing, HVarehousing
and Selling Florida and Texas Grapefruit Sections in 24/2 Cases,
1948-49 Season.
Florida
Texas
Cost group Number of firms
Under 02.0000 . . . . .@ 1 2
$2.00 2.0999 . . . . . . 2 1
2.10 2.1999 , # . . . . 3 1
2.20 2.2999 . . 0 a 4 0
2.30 2.3999 . . . . . . 2 0
2.40 2.4999 . . . 1 0
2.50 and over #. . .# 1 3 1
Total number of firms 16 5
Average cost per firm $2.30 $2,20
Table 21,-Variation in the Cost Per Case of Processing and YTarehousing Florida
and Texas Grapefruit Sections in 24/2 Cases, Excluding Sugar Cost,
1948-49 Season.
Florida Texas
Cost group Number of firms
Under $1.8000. . . . . . 5 2
$1.80 1.8999 . . . . . . 3 1
1.90 1.1999 a . 0 , 0 5 1
2.00 2,0999 a . . a 0 0 0
2.10 and over . . e 3 1
Total number of firms 16 5
Average cost per firm $1.90 $1.91
Relationship of Volae to Cost of Processing, Warehousing and Selling
Volume of fruit processed to citrus juices and sections is related to
cost of processing, warehousing and selling in Table 22 for Florida and in
Table 23 for Texas plants. For orange and grapefruit juice, the Florida
plants that had the smallest volume had the highest average total cost per
box and those with the greatest volume had the lowest average cost. Costs
for Florida plants that processed less than 700,000 oases of all types of
juice and sections averaged $1.25 for orange juice and $1.23 for grapefruit
juice in 12/404 cases. Average costs for plants processing over 1,400,000
cases were $1.14 for orange juice and $1.16 for grapefruit juice in 12/404
cases. Texas plants that processed less than 150,000 cases had an average
cost of $1.55 for grapefruit juice in 12/404 cases while the corresponding
cost for plants that processed over 250,000 cases was $1.29. Other manu-
facturing and administrative costs appear to be mainly responsible for the
lower cost with increased volume in Florida. This also appears to be true
for Texas plants in processing grapefruit juice. Total labor costs also
decreased as volume increased in Texas but not in Florida plants* The
inverse relationship between total cost and volume, was not apparent in all
cases for orange and grapefruit sections and for blended juice due possibly
to the small number of plants in each volume group and to the fact that these
products are of minor importance for most houses that do process them*
Table 22,-Relation of Volume
Citrus Fruit Juices in
39
to Cost of Processing, Warehousing and Selling Florida
12/404 Cases and Sweetened Sections in 24/2 Cases,
1948-49 Season.
Volume* Under 700,000- Over Under 700,000- Over
_700,000 1,400,000 1,400,000 700,000 1,OO,000 1,l00,000
Orange Juice 12/40h Orange Sections 24/2 Fancy
Number of firms 9 7 7 2 4 6
Cases per firm 67,360 214,081 704,877 638 4,175 6,252
Items of . Cost excluding sugar
Items of cost:
Material . . . . $0.7346 $0.7433 $0.7501 $0.7447 $0.7498 $O.7605
Labor:
Direct . . . . $0o0561 $0.0616 $0.0663 $0.9281 $1.0084 $1.1074
Indirect ... . 0.0189 0.0292 0.0161 0.0484 0.1032 0.0605
Warehousing & shipping 0.0o00 0.0575 0.0354 0.0722 O.O084 0.0267
Total labor . . 30.1150 $0.1483 $0.11768 1.0457 U.1i0o0 81.936
Other manufacturing cost $0.2348 $0.1992 0.1503 0.1868 0.1706 0.272
Total processing and
warehouse cost .. $1.0844 $1.0908 $1.0182 $1.9802 $2.0804 $2.2274
Administrative cost . *0.09485 $0.615 $0.0613 $0.0708 S0.0574 0$.0466
Selling cost . 0. 0.0447 0.0289 0.0369 0.0029 0.0286 0.0285
Total administrative
and selling cost $0.1395 $0.0907 $0.0982 $0.0737 $0.0860 $0.0751
Other cost . . . 00304 $0.0263 $0.0278 $0.0180 $0.0194 $0.0185
Total cost. . $,.253 $1.2078 $.1442 2.0719 $2.1858 52.=3210
Cost of sugar
Number of firms 8 7 7 2 4 6
Sweetened cases per firm 51,595 116,O05 434,892 638 4,175 6,252
Sugar 80.0523 5.0~390 $0.0368 $0.3327 $0.2127 $0.1698
Total cost $1.2468 $.1810 $2.4046 $52.3985 32.4908
Grapefruit Juice 12/l04 Grapefruit Sections 24/2
Number of firms 9 7 7" 5 7
Cases per firm 27,923 108,252 3,86,744 .1,812 101,57 0 238,850
Items of cost: Cost excluding sugar
Material . . . . $0.7455 $0.7409 $0.7587 $0.7330 0o.7543 $0.7599
Labor:
Direct . . . . $0.0490 $0.0592 $0.0658 $0.7317 $0.7060 $0.8434
Indirect . . . 0.0275 0.0299 0.0177 0.0489 0.1095 0.0674
Warehousing & shipping 0.0401 0.0577 0.0390 0.0757 0.0544 0.0348
Total labor . . $0.1166 $0.1468 $0.1225 $0.8563 '0,8699 80.9456
Other manufacturing cost 0,20.31 $0.i8171 $0llj3 $0- 480 8i.Sl-4 $M24 S
Total processing and -
warehouse cost . $10652 $1.o658 $1,0225 $1.8373 $1.8056 $1.9543
Administrative cost $0.1016 $0.0591 $0.0565 $0.1751i 0,O6l3 $0.0529
Selling cost . . . 0.0197 0.0293 0.0361 0.0046 0.0408 0.0275
Total administrative
and selling cost $0.1213 $0.0884 $0.0926 $0.1797 $0.1021 80.0804
Other cost . . .6. $0,053 $6.037b6 $0CL0 '. $2.0"o03 $0.026-
Total cost . 12318 1.1918 $l.151 $2.0649 1.9380 2.O
Cost of sugar
Number of firms 8 7 7 Ct of su 5 7
Sweetened cases per firm 16 021 59.059 252,202 1,545 101,560 238850
Msar 0 ..614. $5.0693 $0.076 $06.2564 $0.2296 $0.2179
Total cost l.ob61U $i.2329 $2,3013 R2.1676 R2.2795
Table 22.-Relation of Volume to Cost of Processing, Warehousing and Selling Florida
Citrus Fruit Juices in 12/o40 Cases and Sweetened Sections in 24/2 Cases,
1948-49 Season (Concluded).
Volume* Under 700,000- Over Under 700,000- Over
Volume 700 000 1 oo00,000oo 1, ,000 700,000 l,4o0,000 1,100,000
Blended Juice 12/40h Salad Sections 24/2
Number of firms 8 7 7 4 4 7
Cases per firm 4'6,24 138,483 1492,824 70,306 4 o,056 50,292
Cost excluding sugar
Items of cost:
Material . . . . $0.7450 $0.7400 $0.7445 $0.7352 $0.7770 $0.7790
Labor:
Direct . . . . $0.0517 $0.0610 $0,0659 $1.0354 $0.9272 $1.0340
Indirect . . . 0.019 0.0260 0.0146 0.0610 0.0755 0.0629
Warehousing & shipping 0.0363 0.0615 0.0338 0.0680 0.0544 0.0340
Total labor . . $0.l074 80.1485 $0.1143 1.1644 $1.0571 3$.1309
Other manufacturing cost W0.1733 $0.1905 $0.1439 $0.2484l 0.1695 $0.2881
Total processing and
warehouse cost . $1.0257 $1.0790 $1.0027 $2.1l80 $2.0036 $2.1980
Administrative cost .. 5 0.0917 40.0595 $0.0591 $0,197 '0.05"64 $0.O.061
Selling cost . . . 0.0310 0.0322 0.0332 0.0098 0.0234 0.0311
Total administrative
and selling cost $0.1227 $0.0917 $0.0923 $0.1795 $0.0818 $0.0772
Other cost . . . $0.0367 $0.0325 50.0314 $0.0216 30.0299 $0.022T
Total cost $1.1871 $1.2032 $1.1295 $2.3491 $2.1153 $2.2974
Cost of sugar
Number of firms 8 7 7 4 4 7
Sweetened cases per firm 38,1U2 98,515 325,853 7,306 1j0,056 50,292
Sugar $0.0755 50.O423 $0..0572 0.2594 $0.2036 $0.196d
Total cost $1.2626 $1.2U5M 5 $1.1866 $2.60o5 $2.3189 2.9542
* In making volume sort the number of cases in all types of containers were
considered and not just 24/2 and 12/1404 containers.
Table 23.-Relation of Volume to Cost of Processing, Warehousing and Selling
Texas Citrus Fruit Juices in 12/404 Cases and Grapefruit Sections in
24/2 Cases, 1948-49 Season.
Volume* Under 150,000- 250,000- Under 150,000- 250,000
150,000 249,999 and over 150,000 249,999 and over
Orange Juice 12/404 Blended Juice 12/404
Number of firms 1 1 4 1 1 4
Cases per firm 12,326 6,519 27,900 2,457 275 27,094
Cost excluding sugar
Items of cost:
Material . . . . $0.8160 $0.8253 $0.7732 $0.7100 $0.8253 $0.7814
Labor:
Direct . . . . $00900 $0.0896 $0.0297 -** $0.0897 $0.0371
Indirect . . . 0.0431 0.0317 0.0068 --:- 0.0318 0.0182
Warehousing & shipping 0.0250 0.0237 e* 0.0370
Total labor . . $0.1581 $0.1213 $0.0602 $0.0628 $0.1215 $0.0923
Other manufacturing cost $0.4230 $0.1719 $0.235* 4 Z0.3193 $0.1721 $0.1909
Total processing and
warehouse cost . $1.3971 $1.1185 L1.0688 $1.0921 $1.1189 $1.0646
Administrative cost . $0,1340 60.O853 00.0716 $0.1885 W0.0854 $5.o643
Selling cost . . . 0.0158 0.0149 0.0808 0.1000 0.0149 0.0486
Total administrative
and selling cost $0.1498 $0.1002 $0.1524 $0.2885 $0.1003 $0.1131
Other cost . . .. 0.003 0.006 60,0042 60.0046 $0.0106
Total cost .... 1I.5500 $1.2233 61L $-TO $1.31o06 2 -- I13--
Grapefruit Juice 12/404 Grapefruit Sections 24/2
Number of firms 4 5 2 3
Cases per firm 45,864 107,793 215,535 7,306 18,802
Cost exuding sugar
Items of cost:
Material . . .. $0.7777 $0.8201 $0.8342 $0.8221 $0.8294
Labor:
Direct . . . . $0.0704 $o.o051 $0.0462 $1.1003 $0.8550
Indirect . . 0.1455 0.0312 0.0173 0.2811 0.0182
Warehousing & shipping 0.0146 0.0228 0,0250 0.0338
Total labor . . $0.2305 50.1054 $0.0885 $1.3814 0.*9070
Other manufacturing cost 40.3461 60.3097 $0.2281 60.2119 0.1125
Total processing and
warehouse cost . $1.3543 $1.2352 $1.1508 $2.4154 $1.8489
Administrative cost . $0.1630 60.1135 $0.0730 .$0.1375 $0.0703
Selling cost . . 0.0296 0.0432 0.0622 0.0124 0.0258
Total administrative
and selling cost $0.1926 $0.1567 $0.1352 $0.1499 $0,0961
Other cost . . .. $0.026 $0.0052 $0.0053 $0.0050
Total cost .. . 1.5495 $1.3971 51.2913 .56 -- 1.9500
SIn making volume sort the number of cases in all types of containers were
considered and not just 24/2 and 12/404 case containers.
* Labor not broken down,
Processing, Warehousing and Selling Costs by Types of Firms in Florida
Costs in Florida for integrated firms (canning plants that also pack
fresh fruit),for firms that specialize in processing only, and for processing
firms that have arrangements with affiliated packinghouses for handling their
cannery fruit are compared in Table 24* Integrated firms had slightly lower
costs for processing orange juice, grapefruit juice and blended juice than
either specialized or affiliated plants* Integrated firms also had a slight-
ly lower average cost for packing and selling fresh fruit. Affiliated plants
had higher costs for canning orange and blended juice than specialized houses,
but their average costs were about the same for processing grapefruit juice,
Labor costs were lowest for integrated canning plants and administrative
costs were also low for this type plant except in canning grapefruit juice.
Total costs per case for processing orange juice in 12/404 cases were
01.14, $1.18 and $1.23 for integrated, specialized and affiliated houses
respectively, Corresponding costs were $1.15, D1.18 and $1.18 for grape-
fruit juice and $1.14, "1.15 and 01,20 for blended juice.
Table 24.-Cost of Processing, Warehousing and Selling Florida Citrus Fruit 43
Juices in 12/404 Cases by Type of Firm for 23 Canneries,
1948-49 Season.
Type of firm Integrated Specialized Affiliated
Orange Juice
Number of firms11 .8
Cases per firm 268,166 410,297 201,65
Items of cost: Cost excluding sugar
Material . . . . . . $0.7424 $0.7554 $0.7322
Labor:
Direct . . . . . . . 0.0525 O0.0744 $0.0672
Indirect . . . . . 0.0187 0.0196 0.0184
Warehousing & shipping . . . 0.0368 0.0412 0.0516
Total labor . . . . . QO.d100 -0.1352 $0.1372
Other manufacturing cost .. . . $0.1695 0O.1610 $0.1911
Total processing & warehouse cost 51.0199 $1.0516 $1.0605-
Administrative cost . . . $0.0565 $0.0676 $0.0796
Selling cost . . . . . 0.0326 0.0324 0.0618
Total administrative and
selling cost . . . . $0.0891 $0.1000 $0.1414
Other-co 0 0 .02
Other cost . . . . . . 0.28 0.0272 0270
Total cost. ....3.. $ -.13 7 ,1788 $1,2 289
Cost of sugar
Number of firms 10 8 4
Sweetened cases per firm 181,327 230,677 152,658
Sugar 40.0429 00.0336 50.0j17
Total cost 21.2124 02706
Grapefruit Juice
Number of firms 11 8 4
Cases per firm 12h,973 201,477 182,3
Items of c : Cost excluding sugar
Items of cost:
Material. . . . $0.7427 $0.7727 $0.7348
Labor:
Direct . . . . . . $O.0486 $0.0723 $0.0712
Indirect . .. . . . 0.0231 0.0196 0.0196
Warehousing & shipping . . . 0.0395 Oo0.10 0.0o53
Total labor . . . $0.1112 $0.1329 0 O.lI2
Other manufacturing cost . . . $0.1692 50.1338 $0.1647
Total processing & warehouse cost $1.0231 1i.0394 $1.0437
Administrative cost . . 0.0599 W.0656 $.. 0.0483.
Selling cost . . ... . 0.0331 0.0314 0.0394
Total administrative and
selling cost . . ..... $0.0930 $0.0970 $0.0877
Other cost. . . . . . . 0.0374 O0.0417 0.0
Total cost . . i1. 13 1. $l1758
Cost of sugar
Number of firms 10 8 4
Sweetened cases per firm 76,576 120,63 144,384
Sugar ..0.0699 $0.0694 $0.609 S .
otal cos 1.25 1.2699
Table 24.-Cost of Processing, Warehousing and Selling Florida Citrus Fruit
Juices in 12/404 Cases by Type of Firm for 23 Canneries,
1948-49 Season (Concluded).
Type of firm Integrated Specialized Affiliated
Blended Juice
Number of firms 11 8 4
Cases per firm 153,361 350,552 7T4,i2
Cost excluding sugar
Items of cost:
Material . . . . . . . $0.7418 $0. 760 $0.7321
Labor:
Direct . . . . . . . $0.0502 $0.0715 00.0683
Indirect . . . . . .018 0.0165 0.0181
Warehousing & shipping . . . 0.0375 0.0395 0.0519
Total labor . . . . . '0.1061 $0.1275 5$0.1383
Other manufacturing cost . . . $0.1692 $0.171 $0.177~9
Total processing & warehouse cost $1.0171 $1.01o6 51.0683
Administrative cost . . . 0.0550 $0.0652 $.065
Selling cost . . . . . 0.0328 0.0309 0.0517
Total administrative and
selling cost . . ... 00.0878 ,0.0961 $0.1171
Other cost . . . . . $ 0.0331 o;0.0351 00.0353
Total cost . . . .. . 1380 7.1498 *1 L.200.7
Cost of sugar
Number of firms 10 8 o4
Sweetened cases per firm 109,3U1 2U1,782 62,013
Sugar $0.06h44 .0.0465 $0.0906
Total cost .1.1963 l.2913
I l I l i II l Il 1 ll,
Cost of Processing, Warehousing and Selling Frozen Citrus Concentrate
The average cost per case for processing frozen orange juice concen-
trate for five Florida firms for the 1948-49 season is shown in Table 25.
The costs are for processing, warehousing and selling a 48/6 case which is
approximately equivalent, when the concentrate is reconstituted, to two
12/404 cases of single strength juice* Since most of the firms operated
only a portion of the season, the costs per case shown are probably somewhat
higher than would have been the case if all firms had operated a full season.
The total cost, per case, averaged $1.93. The average cost for
materials was $0.88, Labor cost approximately 00.34, other manufacturing
costs totaled 00.55, and administrative costs averaged 00.11.
There was very little variation between firms in direct labor and
warehouse and shipping labor. However, there was wide variation in indirect
labor, other manufacturing and administrative costs. The wide variation
in these items was probably due in part to variations in the length of time
that the firms operated.
46
Table 25.-Average Cost of Processing, Harehousing'and Selling Frozen Orange
Juice Concentrate for Five Florida Firms, 1948-49 Season.
Cost per firm Cost per 48/6 case
Cases per firm 371,628
Items of cost:
Material:
Cans *. . . . a
Cartons . . . .
Total material . .
Labor:
Direct . . *.
Indirect . . . *
Warehousing and shipping
Total labor . . .
Other manufacturing cost:
Power, lights and water . . ,
Maintenance building and equipment.
Royalties . . . . . .*
Depreciation . . . . . .
Rent building * # . . .
Insurance, taxes, licenses . . .
Miscellaneous . . . . .
Total other manufacturing cost .
Total processing and warehousing cost
Administrative cost:
Management and office salaries . .
Office supplies and expense .. .
Auto and travel . . . .
Interest o . . .# .. *
Telephone and telegraph . . .
General expense .. o .. . .
Total administrative cost . .
Other cost:
(Advertising stamps, testing and
inspection),eto*. . . . .
Total cost . * *. *
$304,621.39
23,898.03
0328,519.42
$ 92,105.56
21,806.10
13,746.59
$127,658.25
V0.8197
0.0643
o0.8840
00. 2478
0.0587
0.0370
,0.3435
$ 30,976.54 $0.0834
41,552.91 0.1118
69,499.50 0.1870
33,251.64 0.0895
3,056.67 0.0082
10,724.54 0.0288
16,159.19 0.0435
$205,220.99 0.5522
YY._!,Y YY .....
$661,398.66
$1.7797
$ 14,612.57 0.0393
1,400.37 0.0038
2,045.97 0.0055
9,070.04 0.0244
1,373.69 0.0037
10,882.68 0.0293
A 39,385.32 00.1060
$ 16,521.10 $0.0445
$717,305.08 $1.9302
N I
n i
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l | N
Cost of Processing, Tarehousing and Selling Citrus Feed and Molasses
Citrus feed and citrus molasses are being manufactured in increasing
volume by a number of Florida citrus canning plants. Table 26 shows the
average cost per ton for processing these by-products by seven firms. The
average cost shown for citrus feed includes costs for citrus meal and citrus
pulp as well as feeds designated by some firms as dry feed and citrus feed,
some of which are processed to slightly different forms, The costs shown
represent the average for all feed.
The cost for processing, warehousing and selling citrus feed was $26.98
per ton. Costs for materials averaged 06.30 and labor 94.95. Other manu-
facturing cost was $13*65, of which $6.56 was for power, lights and water.
The average cost for administrative and selling was 02.08.
The average total cost for citrus molasses was $23.67 per ton. Other
manufacturing cost amounted to 018.77, and $9.92 of this amount was for power,
lights and water. Labor costs averaged only $3.84, while costs for materials
and administrative and selling accounted for only a very small proportion of
the total.
Table 26.-Cost Per Ton of Processing, Warehousing and Selling Citrus
Feed and Molasses for Seven Florida Firms, 1948-49 Season.
Feed and
Feed* Molasses Molasses
Combined
Number of firms 6 7 6
Tons per firm 8,89 2,669 12,780
Items of cost:
Material . . . . . . . $6.2955 $0.193 $5.0024
Labor .. ........ S .950 3.637 $.724
Other manufacturing cost:
Power, lights and water . .. $6.613 $9.9168 $6.7287
Repairs and maintenance . . 2.9577 3.4232 3.0236
Depreciation and rent . . . 2.67L44 4.173 2.8712
Manufacturing overhead . . .. 0.8721 0.7070 0.5626
Miscellaneous cost . . . . 0.820 0.5799 0.5867
Total other manufacturing cost $13.6b75 $18,7742 $13.7728
Total processing and warehouse cost ,$24.493 $22.'722 523.-996
Administrative and selling cost 4 2.08566 $ 0.9C08 1.5781
Total cost . . . .9780 23 0 25.0777
* Includes feeds designated citrus pulp, citrus meal, dry feed and citrus
feed by various firms.
Definition of Terms
AVERAGE COST PER FIRM
Average cost per firm used in Tables 4,5,6,7,10,11,16,17,18,19,20 and
21 is a simple average of the per unit cost of the firms. It was ob-
tained by dividing the sum of the per unit costs of all firms by the '
number of firms. 'The per box or per case cost in Tables 1,2,3,8,9,12,
13,14,15,22,23,24,25 and 26 is a weighted average. It was obtained by
dividing the sum of the dollar cost of all firms for the appropriate
container by the sum of the corresponding container pack.
TYPE OF FIRM
Integrated firm: A firm having both canning and packing operations under
a unified managements
Specialized firm: A firm which either packs or processes citrus fruits
as distinct from integrated firms that bo-h pack and process.
Affiliated firm: Packinghouses that ars riembers of, or are affiliated with,
a cooperative canning plant which processes the cannery fruit of its
affiliated packinghouses.
VOLUME GROUP
Determined for each packinghouse by the total boxes 1-3/5 bushel equivalent
handled as packed or bulk fruit through the packinghouse, and for each
cannery to the total cases of citrus fruit products processed.
PACKING OPERATIONS
Boxes per packinghouse: Average volume packed, 1-3/5 bushel equivalent*
Containers:
1-3/5 bruce, 1-3/5 standard trapped, 1-3/5 standard unwrapped: 1-3/5
bushel by volume*
4/5 bruce, 4/5 standard, 1/2-box bags, 8-pound bagn, 10-pound bags,
5-pound bags, 8-pound bags in master conta.inir,-'rT-i-.ound as in
master container: All expressed in the equivalent of 1-3/5 bushel
by volume.
Items of cost' *
hterialss Crate material; bags; fruit wraps; nails, strips and
straps; labels and paste; and end guards.
Labor: Receive, truck and dump; orate making and labeling; foreman,
graders and others; wrap and pack; truck, check and load; and payroll
taxes. Payroll taxes includes both social security and compensation
insurance.
Other direct cost: Cost of power, light and water; repair of building
and equipment; and miscellaneous supplies.
Indirect operating: Insurance, taxes, licenses and depreciation.
Total packing cost: The total of materials, labor, other direct cost
and indirect operating,
Administrative and selling: Management and office salaries; office
supplies and expense; auto and travel; telephone and telegraph; mis-
cellaneous office expense; sales department cost, or charge for selling.
Selling cost does not include brokerage or any terminal market charges*
Other cost: Gas coloring; color add and wax; precooling and inspection
for Florida and Texas; and advertising taxes and marketing agreement
assessments for Florida..
PROCESSING OPERATIONS
Blended juice: A blend of orange and grapefruit juice, The proportion of
each varies from 60-40 to 40-60 percent.
Citrus feed: Rag, seed and peel left from the extraction of citrus juices
or removal of segments processed so as to remove most of the moisture.
Citrus feed has feeding qualities similar to beet pulp.
Citrus molasses: The liquid "press liquor" set free in processing citrus
pulp further concentrated to a brownish yellow sirup used as a carbohydrate
concentrate.
Cases per firm: Average volume of actual cases produced.
Tons per firm Average volume in tons produced.
Containers:
24/2: A case of 24 eighteen ounce cans.
742404: A case of 12 forty-six ounce cans*
6/1: A case of 6 one-hundred-eight ounce cans.
72/6: A case of 72 six ounce cans.
48 6: A case of 48 six ounce cans.
Items of cost:
Materials: Cans, cartons, labels, and freight on materials.
Labor: Processing and warehousing labor; supervision; mechanic and
watchman; and payroll taxes.
Other manufacturing cost: Expense for depreciation, repairs and
maintenance; power, lights and water; fuel; royalties; insurance; taxes;
miscellaneous supplies; miscellaneous operating cost and warehouse cost
other than labor.
Administrative cost:- Includes management and office salaries, office
supplies and expense, auto and travel, operating interest, telephone
and telegraph, legal and audit, dues and subscriptions and other gene
administrative cost.
Selling cost: Salaries of salesmen and others, advertising and mite
laneous plant selling cost* Does not include commercial brokerage,
discounts and allowances.
Total cost: The cost of processing juice excluding sugar. The average
costs of adding sugar for those firms that produced sweetened juice and
sections are shown in Tables 14,15,22 and 24.
1,200 copies
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