42 



BULLETIN 63, U. S. DEPARTMENT OF AGEICULTUKE. 



RESULTS FROM A FINANCIAL STANDPOINT. 



In order to emphasize the importance of careful work, the data may be analyzed 

 from a financial standpoint. The results are perhaps more impressive when expressed 

 in dollars and cents than when a statement is made regarding the percentages of 

 decay in various lots of fruit. 



The difference between the average percentages developed in the carefully picked 

 and packed and the commercially picked and packed fruit during the season of 1910-11 

 was 6.4 per cent. This means that 1 out of approximately eveiy 15^ boxes shipped 

 during the season was unnecessarily destroyed by blue-mold decay, and that this 

 loss might have been avoided ii the fruit had been handled with care approximating 

 that given by the bureau workers. It is only necessary to extend this line of reason- 

 ing. Out of every 100 boxes of fruit shipped, the avoidable loss was 6^ boxes; there- 

 fore, on a basis of 3,500,000 boxes of oranges shipped from Florida during the season 

 of 1910-11 this loss aggregated 224,000 boxes, which at a fair f. o. b. price of $1.50 

 per box gives a direct money loss of 1336,000. 



In 1911-12 the difference in decay between the carefully handled and commercially 

 handled fruit was 3.5 per cent, or a loss of 1 box for every 28 J boxes shipped. A fair 



estimate of the total ship- 



P/CK/r\/G /A/SPfTCr/OM 



DECEMBE/? /3. 

 CLIPPER CUTS 1KL/.S%. 



LONG STEMS WKtKKI^M /o.-^- 



PULLED WL/.'f Vo 



Vo 



£XPEf?/MENTAL S^/PMEA/TS. 



Fig. 24.— Diagram illustrating the percentage of imperfections in 

 picking and the percentage of blue-mold decay of oranges on 

 arrival in Washington and after holding for three weeks, in fruit 

 shipped from one packing house, showing decrease in blue-mold 

 decay due to greater care in handling, 1911-12. 



ment of oranges during that 

 season is 3,750,000 boxes. 

 The loss on this fruit, at the 

 rate indicated, aggregates 

 131,250 boxes, which, 

 figured at prevailing prices, 

 may be valued at approxi- 

 mately $200,000. Perhaps 

 this is an exaggerated 

 method of analyzing the 

 true condition of affairs, 

 yet when one takes into 

 consideration the immense 

 financial outlay necessary 

 to jjick, haul, grade, and 

 pack these oranges, the 

 actual money loss is not far 

 from the amounts stated. 

 The figures stated above 

 In addition, there is a large loss 



approximate the net loss to the growers due to decay 

 due to the cost of transporting and selling. According to statistics recently compiled, 

 it costs from $1.75 to $1.93 to produce, prepare for shipment, and deliver in market 

 one packed box of oranges. ^ With this cost as a basis, the losses reached the stupen- 

 dous totals of $432,320 during 1910-11 and approximately $250,000 during 1911-12. 



From the standpoint of the effect upon the reputation of the Florida product the 

 financial loss is even greater. It is impossible to give such a loss in actual figures, 

 for the value of a reputation for high shipping and holding quality can not be estimated 

 in dollars and cents. It is safe to say that the introduction of more careful methods 

 would not increase the cost of handling to any material extent. No figures are avail- 

 able for such an increase, but the extra expense would certainly be only a small frac- 

 tion of the actual money loss enumerated above. Leaving out of consideration the 

 desirability of a good reputation, these figures should serve to convince those people 

 who can appreciate values only from a financial standpoint that careful handling is 

 necessary for the success of the industry. 



1 Statements of J. C. Chase and W. C. Temple before the Committee on Ways and Means, U. S. House 

 of Representatives, 1913. 



