-2-

the operator, payroll analyses, or sometimes standard ratios, an attempt was made to

divide the total costs of operation into the following functions:

 (1) Buying and Selling. For specialized citrus dealers this is one of the services

performed in procuring and delivering fruit to the processing plant. Many different

types of arrangements are made with the grove owner as to the price of the fruit and

method of measurement. Dealers buy and sell fruit which they may pick and haul with

their own crews, or they may contract with other similar operators to pick or haul. The

costs of buying and selling fruit include salaries for management, office, and buyers;

brokerage or commission; telephone and telegraph, and auto and travel expense.

 (2) Picking. This is the operation of getting the fruit off the tree and into the

highway truck. As here summarized it represents the cost per box for the operator's own

crews, but not for contract crews. The principal costs of performing this service are

labor; fuel, repairs, licenses, insurance and depreciation for the grove trucks, crew

trucks, loading machines, and other picking equipment; and management and office

salaries.

 (3) Hauling. This refers to hauling fruit from the roadside to the processor or

fresh fruit packinghouse. It does not include hauling in the grove to the roadside. It

also includes hauling of packinghouse eliminations to the cannery, this being counted as

a separate haul. This is usually a somewhat less expensive haul according to the

operators than hauling from grove to plant. Most operators state that hauling costs are

about equal for oranges and grapefruit, but higher for tangerines because of the lighter

loading required.

 The average costs per box for picking and hauling citrus fruit for the 1953-54

season from the grove to the processor or packinghouse are shown in Tables I and 2, by