-9-


cents per box for oranges, 33.97 cents for grapefruit, and 66.62 cents for

tangerines. Only a very small quantity of tangerines was picked by the crews of

the firms included. More tangerines were handled, but the additional volume was

picked by contract with other operators.

 Since fresh fruit packinghouses do not normally buy and sell unpacked fruit

 their combined costs in Table 2 are only for picking and hauling and thus are not

 comparable with those for the dealers. Some packers have fruit procurement costs,

 but these were dropped; their selling costs apply to packed fruit principally.

 Many citrus firms both dealers and packers contract with other operators

 to pick or haul or both. This may be done to help them over a peak period when

 their own crews and equipment are inadequate, or to do specialized picking. Rates

 or amounts paid to contractors are not given because of the difficulty of obtain-

 ing the exact service they were performing (picking or hauling) and the kind of

 fruit. Some instances were noted where operators were able to contract picking

 and hauling at rates somewhat lower than their own costs.

 None of the costs in Tables 1 and 2 includes interest on invested capital.

 Interest paid by the firms for the use of operating capital is included, though

 only one-third of the firms had this expense.

 Capital Investment

 Capital invested in land, buildings, trucks, boxes and ladders, and other

equipment for 17 firms amounted to $55,243 per firm, or $94.90 per 1,000 boxes

handled (Table 3). The volume here was taken as the total number of boxes on

which any service was performed. Interest at 5 percent on this would amount to

0.47 cents per box. Picking and hauling are more intensive operations, and the

capital invested directly for these (trucks and trailers, boxes and ladders)

amounted to $104.63 per 1,000 boxes picked and hauled. Values given for capital

investment are depreciated values, except for land. Cost of the assets in use

would be considerably more.