The demand for dried fruit in Germany

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The demand for dried fruit in Germany
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Newhouse, Milton J
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UNITED STATES EEPARThEITT OF AGRICULTURE
Bureau. of Agricultural Economics
Washington







Report F.S. 47 March 7, 1930




T10 UEMAI-D FOR DRIED FRUIT IT GERr.:ArY


I; U.S. DEPOSITORY


Milton J. !Tewhouse
Specialist in Dried Fruit Markeoting


COrTE rTS


Page


-Introduction and summary . 1
Position of Germany as a dried fruit importer 2
Factors relating to German demand for dried fruit 7
The domestic fruit industry in Germany 12
Germnan fresh fruit import trade . 15
Trade practices and marketing developments 17
PaCking prunes in Germany . .. 22


Washington, D. C.


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THE JEL&D FOR DRIED FRUIT III CERLIAY

by.
Milton J. Newhouse,

Specialist in Dried Fruit. Marketing a/

Introduction and Summnary

Germany is the largest foreign market for American dried prunes
and is second only to the Uni.ted Kingdom as a market for American dried
fruit as a whole. The following report points out the principal factors
bearing upon the German demand for dried fruit with particular reference
tr the trend in the per capital consumption of dried fruit, the competition
of both imported and domestic fruit, and trade practices and marketing
developments in the German dried fruit market.

Net imports. of all dried fruit into Germany during the five years
1924-1928 averaged 203,751,Q000 pounds annually compared with 211,642,000
pounds during the period 1909-1913. .This represents a per capital con-
sumption of about 3,2 pounds in recent years compared with about 3.3
pounds before the war. Approximately 38 per cent of the total dried fruit
imported into Germany during the period 1924-1928 came from the United
States. About 58-per cent of the imported prunes came from the United
States and most of the remainder from Yugoslavia. Practically all of the
currants came from Greece ahile Turkey supplied 60 per cent of the im-
ported raisins and the United States 21 per cent. It appears that American
raisins have been supplanting Greek currants in the German market t) a
considerable extent during recent years. Most of the remaining dried fruit
such as apples, apricots and peaches are supplied'by the United States.

A study of the German income st-tistics reveals the fact that over
three-fourths of the German population have incomes too small to permit
tf the purchase of any but the cheapest fruit. This group is probably able
to buy dried fruit only when the price is relatively lo.7. Price is, there-
fore, a very important consideration in determining not only the amount
of dried fruit imported from the United States but also the competition
to be encountered from dried fruit imported from other foreign countries.

Since data on domestic fruit production in Germany are practically
non-existent, no estimate can be made of the trend in fresh fruit consump-
tion in Germany. Imports of fresh fruit, which make up a large part of the
German consumption, however, may give some clue to this trend. During the
five years 1924-1928 not imports of fresh fruit ppr capital ipto Germany
mounted to 22.8 pounds as compared with 19.6 pounds during the period
1909-1913. The principal gains -in imports of fresh fruits have been in
bananas and oranges.


a/ Based on investigations in Germany by Mr. Newhouse during 1928-29,
while attached to the Division of Cooperntive Marketing which has
since been transferred to the Federal Farm Board; supplemented by
a report from Assistant Agricultural Commissioner Dawson, Berlin,
and by Etatistics compiled in the Foreign Service cf tho Bureau of
Agricultural Economics.


..ud ": .i .......





2
I .~. ...
*~~~ ~ ~ .*: .- ............ .. .*

American dried fruits need more publicity to overcome the far.. '
reaching and effective advertising nom done in behalf of fresh fruit Jl
and competing dried fruit.. There needs to be more personal contact .*
between American dried fruit interests and the' German market. Such .i
contacts bnhave alrca-ly been established by countries competing with the
United States for the German driod fruit..traBe'. Germ-an importers of :.-
dried fruit appear generally to be satisfied -.7ith the Pacific Coast
dried fruit contracts. Carton packages Of dried fruit are"not popular
since the Gerr.n housewife invarinbly wishes to see what she is purchas-
ing. It' is important, therefore, -from the point of vie'- of advertising.
Pacific Coast dried fruit that bulk displays be properly identified
as to origin.

Position of Germany as dried fruit importer

In Germany, as in other North Earopean countries, the demand for
dried fruit developed as a result of the relatLive scarcity and high
price of fresh fruit during the .iAriter months. Since dried fruit can
be. shipped to distant markets *vith much less danger of deterioration
and since they are the most highly concentrated form of fruit, Germarny
bec-jne an important consumer of theso products and at the present time
is surpzssod only by the United Kingdom as the world's largest importer
of dried fruit.

uermany, produces practically no dried fruit. For that reason
net imports over a period of ye-ars give a fairly accurate picture of
domestic consumption. During, the five ye'rs 1924-1928 the German net
imports of dried fruit av-3r"';ed 203,751,000 pounds annually compared
with an .annual average of 211,642,000 pounds during the five years 1909-
1913. This v:.s eqaivalant to approximately 3.18 pounds per capital since
the ,nr as compared with 3.26 pounds per capital before the wvar. The
slight decline is due lcrgeLr to reduced consumption of driod apples.
;While the per capital consumption of dried fruit shows very little change
before and after the nar thrt of fresh fruit seems to be increasing.
ITet imports of fr,'sh fruit during the fivn years 1924-1928 averaged 22.8
pounds per capita as compared .vith 19.6 pounds per capital during the
fiv y.-3ars 1909-191.3.

Raisins -nl currants constitute the most important item in the
dried fruit imports of Germ-,any but prunes run a close second. During
1909-1913 raisins and currants made up 35,5 per cent of the tot.l and
prunes .34.1 per cant. During 1924-192P raisins and currants constituted
38.7 per cent of the total and prunes 34.9 per cent. Turkey, Greece and
the United States supply most of the raisins tnd currants and the United
States and Yugosl-vir most of the prunes. Thb other dried fruits enter-
ing into thi 3errnan trade in th0r order of their importance are figs,
mostly from Turk-y and Gr--ece; apples and pears, mainly from the United
Strt-s; apricots and pj.aches, mostly from the United States; dates,
mainly from Irorth Africa rnd Persia; and oth,3r dried fruit, mainly from
tho United St. tos, Italy .nd. -Yugoslavia.




"1" IflE
*I~ *


*Ii
A


:~~ .
Average.
Dried' fruit
1909-191 1924-1928

: Pounds : Pounds
: 0
Apples and pears.............. 27,354,000 : 16,673,000
Apple and pear by-products.....: 4,291,003 2,311,000
Apricots and peaches........... 6,743,C0C0 8,784,000
Prunes.... .. gems..... .s.. ... ., 73,290,000 : 74,436,00C
Cherries, prunella, etc.......: 2,660,000 1,856,0C0O
Figs....... ........... 18,453,000 22 653,000
Currants.... ....... gag..... 36,342,000 22,319,000
Raisins........ ...... ........... 39,990,000 : 60,234,000
Dates.................s........ :. 5.664.0CO 4.164.000
Total imports.. ......... .: 214,787,000 213,430,000
Reexports..................: 3,145,000 a 9,679,000

Net imports..............: 211,642,000 203,751,000
*
Per c3ita a/ Per capital a/
Net imports..............: 3.26 3.18
Compiled in the Foreign Section, Division of Statistical and Historical
Research, from "Auswartiger Handel" for the -years'specif led.
a/ Population during 1909-1913 estimated at 65,000,000 and during 1924-
1928 at 64,000,000.

Raisins and currants


SImports of raisins into Germany during the f Ive years 1924-1928
have averaged 60,234,OCC.pounds annually as.compared uith an annual aver-
age of 39,990,000 pounds before the.war. The consumption of currants on
the other hand has been Qeclining, imports in. the.1924-1.928 period having
averaged 22,.19,000 pounds annually.agninst 36,.342?,000 pounds In 1909-1913.
The increase in.raisin consumption -n recent yeors has been due in part
to extremely low prices.

As regards raisins Turkey has always been and still is the most
important source of supply. During 1909-1919 Turkey supplied 85 per cent
of the raisins imported into Germany, Greece about 4 per cent and the
United States less than 1 per cent of the total. During the five years
1924-1928 Turkey supplied on the average 60 per cent of the total, the
United States 21 per cent and Greece 17 per cent. The great increase in
the raisin imports of Zermaxy since the war is due to the increase in im-
ports from the United States and Greece. Average imports from Turicey dur-
ing the five years 1924-1928 were about the same as during the five pre-
war years.


DRIED FRUIT: Imports- into Germany, total reexports and
per capita'net imports






A 4 -


German imports of raisins from the United States have increased
greatly in the past five years 'because the increasing export surplus of J
California raisins has enabled Cal.ifornia shippers to undersell the ::'!
Smyrna product in the *German market. The G3rinan trade, however, still
appears to favor the Smyrna sultan.i as to quality. Raisins from Russia .
have been a -groving factor in supplies- in the past few years. These "
raisins arrive in bags or boxes but the grading is very poor. After coleam- v
ing and grading, the better grades' present an aroma ?!nd quality very sim- ::
lar to Smyrna -sultana. The prices of these Rassian raisins have been very
low.

Greece is still practically the only country from which Germany im-
pdrts "currants but theree has been d 'tady decline in imports since thsl
war. 'Average imports from Greece 'ddfTig the five years 1924-1928 n.nounted
to 22,28-,000 'pounds annually as c'dmlardd"Wi'h 35,-412,000 pounds annually
during 1909-1913. The German traded 'eenrig 't"6 b 6'd the d'pfriion that the
natural sultq:na from California haM bden replacing the Greek currant in
the bakery trade. The chdapness and ne6nridsns 6o"PACk'plus effective ad-
vertising are the main factors thiE' ave "co6ntrifbdi'd'to t'he increasing
demand for Americr.n raisins in Gorma.ny. .. ..
RAISINlS iUYD CURRATTS: *Inports into Germatny, average
1909-1913 %nd 1924-1928

VT.";4- n,,t Ave.rnge


country of origin


: 1909-191


S1924-1928


R-isins
Turkey .
Gruoeece .
Spain .
Persia ..*
Italy .
Russia. .
United States
All others .


* S S
* S S
* S S S
0 5 5 5
S 5 S

* S S S


Total .


. .


* 5 .* S
* S S
* S
* S 5
* S S S


* Pounds
. 339,761,000
1,662,000
1,175,000
2,083,000


251,000
628,000
430,0C0


Pounds
34,714,000
10,136,000
421,000
101,000
a/ 1,239,006
131,000
12,685,000
907,000


39,990,000 60,234,000


Currant s
Greece .
All others .
Total .


o. o o o *
o o e o o o *


35,412,00
930,000


. .. 76,542,000


Grand totil .


0 0 .


76, :..2 ,000"


S '22,284,000
35,000
S'22,319,000
S 82,553,000


Compiled in th1. Foroir.n Section, Division of St:tistical and historical
Research, from "A1.s.vartiger Handel" for thu years specified.
a/ Represents largely imports from Turkey through the Frog Port of Trieste.

Prunes
During th4 five yorrs 1924-1928 prunes constituted 35 per cent of
the German dried fruit imports. The Unit3d States is the Tost import-int
source of supply having furnished on the average 58 per cent of the annual
imports during this period. Yagoslavia is the next most important source of
supply, having furnished on tho average 36 per cent of the imports. Imports
from the United St-tos hivw been increasing rapidly 'Ihil, those from Yugo-
slavia have boon declining.



U.;=j






-5-

There has beon a tendency to igr-ore Yagoslav prunes on the markets
*. :-- .'of northwest Germany in recent yoc.rs: due to the av:.i liability of superior
n: quality, low priced American prunes 'ahich hove proved more suitable for
M. poking than the less carefully dried Yugosltv prune. This tendency has
to..,.i.ot been so true of southern Germany, ho, ever, where special facilities
: have boan established for pakcling Yugoslav bulk. prunes.. A tariff dixfer-
S ntilal favors bulic prunes .over packed prunes in the Gorma'n market, and
consequently a large part of. the prunes' are imported in bulc.

PRUlES. Imports into Germany, average 1909-1913 and 1924-1928
*: _______ve rago____
Country of origin Average
: 1909-1913 : 1924-1928
: 1.000 pounds 1,000 pounds
**
United States ........ : 31.,65 43,421
Austria Hungary 13,720 :1
Serbia . : 20,202 a/
Yugoslvia .. : 27,074
Prance .... a : 6,717 354
All others *aa*. e 1,026 a 3,587
Totpl .. 73,290 74,436
Compiled in the Foreign Section, Division of St.Utisticrl and Historical
Research, from "Ausrvrtiger Handel" for th" years specified.
a/ Included in Yugoslavia since tha -'Jar.
/ Included in Austria Hungnry and Serbia before the .var.

Evaporated apples

It is believed that the availnbility of fresh apples throughout most
of the year has restricted the demand for dried apples in Germany. The
trade, however, reports an increasing demand for apple rings for use in
dried fruit mixturas-and by tho pastry trade. The qurlity of Oregon-,tash-
ington apple rings in 1928 proved v.ry good but tho slices .vore soroa.vhat
thick. Dried apple rings from these areas are replacing the lNewv York State
apple because of their superior quality although the sour taste of the Ne;V
York apple is profarred.

Although imports of dried apnles are still considerably below: the pre-
war average, there h.as b33n an increasing domnd-for this fruit recently.
Lack of quality fruit has tended to restrict- the demand sinco the War. The
extra choice Cregon-Washington appl.3-ring hns made rapid progress -is it is
comparatively .vhite in appearance, fitting in ::oll in driod fruit mixtures.
Its lack of tirtnoss is the only objection. Extrn choice C-lifornia sliced
apples are also selling ;;oiell. Qur.trt-rs are selling in small quantities but
the lower grades (choice) arn not much in demand. There is a good demand for
apple chops, for apple screenings, -nd for cores and peolings p.cced in bags.

Apricots and other dried fruit

Germany offers a gcod market for extra choice northern California
apricots as long as the price is not too high. Fancy and choice apricots
are.., selling in smaller volume. Some factors in the trade report that prices


. ,;..., .. ..





- 6 -


on apricots are so high that the medium grades are called for and it is ..
generally felt that price is restricting demand. Apricots are a favored .
article for the mixed dried fruit trade. Competition in apricots comes
mainly from South Africa (Cape Colony), and Russia. The trade is incliwt ,,ii
to ignore the possibilities of Russia as an important factor due to ir-
regularities of supplies, and the small size and sweet taste of the fruit- Il
from that area. Competition from South Africa is of some significance -
but the fruit in 192811929 was almost too sour although having good appear- *"
ance. Occasionally Persia makes offers but no significant competition from. .1
that-source seems likely in the near future.

Dried pears and peaches in Germany are used almost exclusively in
mixtures. While the demand for this purpose is not large it is fairly
steady. The consumption of peaches 'appears to be decreasing, according to
the trade, daie to the heavy peel.

Relative position of the United States in the German dried fruit trade.

As indicated by the following table 'the 'total imports of dried fruit
into Germany in the post-war years show but little change compared with the
pre-war volume of trade. The significant feature of the Situation is that
the percentage of the total supplied by the United States has been increas-
ing steadily w-hile 'that supplied by foreign doyfpeting areas has been de-
clining. During the five years 1924-1928 the United .States supplied on the
average 38.1 per cent of the total as compared .vith 31.7 per cent in 1909-
1913, .7hile foreign competing areas supplied 61.9 per cent as compared with
68.3 per cent before the var.

DRIED FRUIT: Imports into Germany from the Unite. States and
from other countries, aver-ge for 1909-1913 9r.) 1924-1928

Average
1909-1913 : 1924-1928
Fruit-------* --------
: United: All : : United: All : Total
: States: others: : States: others:
: 1,00C 1,000 : 1,000 : 1,0.0 : 1,000 : 1,000
Sounds: pounds: pounds: pounds: pound s pounds

Apples and per.rs......... 25,152: 2,202: 27,354: 14,545: 2,128: 16,673
Apple and pear by-products: 4,137: 154: 4,291: 1,912: 399: 2,311
Apricots and p3achos.....: 6,524: 219: 6,743: 8,140: 644: 8,784
Prunes.................: 31,625: 41,665: 73,290: 43,421: 31,015: 74,436
Cherries, prunella, etc..: 87: 2,573: 2,660: 669: 1,187: 1,856
Figs .....................: -- :18,453: 18,453: --- 22,653: 22,653
Currants .................: -- :36,312: 36,342: --- 22,319: 22,319
Raisins ..................: 628: 39,362: 39,99C: 12,685: 47,549: 60,234
Dates.................... i --- : 5,664: 5,664: --- : 4,164: 4,164
Total................: 68,153:146,634:214,787: 81,372:132,058:213,430
Compiled in the Foreign Section, Division of Statistical and Historical
Research from "Au-is:rrtiger Handel" for y3ars mentioned.






- 7 .


Factors relating to German demand for dried fruit a/

:" Population

i*. Accordingto'the last nre-4ar census in Germmany (December 1, 1910)
l1, the tQtal population the he c'antry numbered 64,926,000. In spite of
I" the fTct that Germany lost large provinces as a result of the ear, the
.. Population of the country in its na', boundaries at the beginning of 1928
S was estimated at about 63,400,000 compared with 60,022,000 in 1914 in the
corresponding boundaries. This increase of about 3,400,OCO .,as due in
part to the return of many German citizens from the colonies, foreign coun-
tries and separated districts 'and in pjart to the natural increase in popu-
lation. At present the annual increase in G3rm-ny is estimated to be
about 3O0,000 to -.t'00,000C a compared- 1ith an annual increase before the
*wrar in the present boundaries of about 750,009.

The distribution of the Germain population by ag.3s has changed con-
siderably since the .ar. The number of people of fifteen years and less
in 1928 comprised about one-fourth of the tot.l population compared with
one-third in 1914. These figures pdint to a further reduction in the
annual increase ili population.

During the last fifty yoers thare hMs been ri large movement of
population in Germany from the country and small toa;ns to the large cities.
In 1882 ahan the total population of the country numbered 9,814,000 about
40 percent was engrged in agricultural purs-aits a.nd.6e per cent in in-
dustrial, cctmercial and other occupations.. In 1925 ;;ith i total popula-
tion of 62,411,000 only 23 per cent was engagod. in agriculture and 77 per
cent in other occiapat ions." This increase. in. tNhe urb>n population has
probably .meant an- increase in the consumption of such foodstuffs as im-
ported dried and frash fruit. :

Purchasing vo-ver

The purchasing po'ver of the German pooplo is of basic importance
in evaluating the demand for fruit in that country. Ger-m:n income tix
statistics shao incomes of u,'.-e recipients by classes and these together
tvith supplementary information an incomes other than those of .vag3 earners
permit a rough estimate of Germgn purchasing po.or.

Roughly three-fourths of the German income recipients in 1925 had
incomes not exceeding RM 1500 ('357.00) per year. So far as consumers
in this group are concerned it sens probable that they c:.-n afford to
buy only very chop fruit. A second group of consumers may be formed of
the cl-iss-3s receiving from RU 1500 (Y357.00) to EM 5000 (91190) which
comprises r.bout 15 per cent of tho total German income recipients.



a/ Based on -i report pripnroil in the Berlin office of the United States
Department of. Agriculture.

..E
.:






-. 8 -.


People in this group are probably good consumers of dried fruit and of
the less expensive fresh fruit. In the last group, comprising 11 per .
cent of the total income recipients, good consumers of fruit also will
be found -but it must be remembered that this group contains a number of
receivers of very. large incomes .tho consume very little dried fruit.



Analysis of German income recipients by groups, 1925


: : Percentage of
Class : Number total income
: : recipients
Thousands Per cent

Income ap to :..nd including :
1500 RM (4357) .......... ..........:a/ 26,519 : 74
Income above 1500 RM to :
3000 RM (.357 to .715)..............:b/ 4,035 11.3
Income above 3000 RM to
5000 RM (W715 to 41190)..........,.:b/ 1,043 : 2.9
Income above e 5000 RM *
(l190) ...........................350 0.9

M iscellinoous............o ............ :c_/ 3,907 10.9
Total income ricipients...........: .5,.854 100.0
Family members vitlout :
sspar-te income ...***..... *..6........: 26,556 :
*
Tot-al German population ............ 62,410

a/ Includes 17,819,000 employees receiving loss than 1500 RIM- (4357);
6,400,000 recipients of income other than w'ages whose individual
income is less than 1,100 RM (j262), the taxation limit :and
2,300,000 recipients of jar cripple, vidow. and orphan supports 7ith
incomes mostly belo.' 1,000 RM (Q240).
b/ Vage recipients only.
c/ This group comprises income recipients othir than employees for which
no separrtlon by size of income is possible; it is supposed to in-
clude some v-?ry large incomes and none b-o.low 1,100 RM (U262) the
taxation limit.

Tbl- following t:ible distributes the family members without separate
incomes .Lmong the income recipients and givos n rough picturJ of the pur-
chasing po-xr of the Germqn population for fruit:
Group 1 Able to buy only very cheap fruit 46,171,000 or 74'
2 Prob-bly good consumers of fruit 9,437,000 or 15%
3 Partly good 'consumers of fruit 6,802,000 or 1
Total Germ'an Popialation (1925) 62,.410,000 1007





-- 9-


..r 1925 and it is probable that German purchasing po'vor 1,as increased
"pice that time. Nevertheoless, it is believed that these summaries give
fairly good idea as to thu ability of German consumers topurchase
reported froh .nd dried fruit.

rie. d fruits in the German diet

Germans, and for that matter northern and western Europeans in
general, have not yet learned to eat dried fruits as such. In Silesia
'"dried fruits are used throughout the entire year in making the so-called
"Scolosischo Himmolrelch" which is a famous national dish consisting of
biled rice and dried fruits. A favorite %,ay to prepare prunes is in
soups or in mixtures" of dried fruits. Used in this form, dried fruit
not' only serves the purpose of supplying fruit in the diet but it also
1beoomas a complete meal from the quantity point of vie-7. This mixing
of foods is partly inheritod and is partly the result of thrift and a
feeling that the eating of dried fruits as such is too expensive.

Mixed dried fruits in Germanyv aro very popular and most retailers
report greater sales in this form.tha.n in dried fruits separately, vith
' the possible exception of dried apricots. Boxes may be either f"cod or
unlaced. Prunes used in such mixtures ara usually smill and prices in-
crease as the percentage of prunes decreases. Mixed dried fruits are
usually packed in cellophane containers. The package should not sell
Over 1.20 Mark or 30 cents. A typical mixture consists of the following:

SAbout 55% 80/90 prunes
i 15% choice peaches
15% pears
10% apples
5%f choice apricots

Relation of Quality in dried fruits to the German market

Germany is a large market for fruit belowv grade. This is true of
prunes, apricots, apples and po-iches from America, prunes often unclassi-
fied and ungraded from Bulgaria, Rumania and Naples, and of raisins and
dried apricots from Russia. The packing plants in Hamburg offer oppor-
tunities for the cleaning and reprocessing of such fruit. As the price
is of necessity low:, large quantities of such fruit can be absorbed,
much of .nhich finds its ,ay into jam manufacturing plants. The German
trade feels that this demand for off-grade fruit, has created an im-
pression that quality is secon-ary in the German markets. This is abso-
S lutely untrue and to the extent that it prevails it oper-rtss to the
Detriment of sales. Off-graie fruit must never be offered as other than
w hat it actually is. It should be shipped in unmrricod boxes or bags only
S and should nevqr be confused ;'ith classified, graled and inspected fruit.
S One of the most important facts to kbep in mind reg riding the German dried
fruit market is that while e it is at present l-rgely a "price market" and
ii one that is willing to buy off-gride fruit to supply the requirements of
Sheer poorer class of consumers, the fruit received must be strictly in
accord with the sampl..s provided.





iO ...0ii

Size demands in prunes....*

Before and shortly. after the war, Germany consumed prihcipafl3. .:1i
prunimes, 70/.BQ!s' and smaller, but during the last three or four years t
has developed a trend toward sizes 40/50's to 60/70's, This tend.enc.::.
been aided by the relatively cheap prices ruling on larger sizes siBnce1 t
war and in more recent years, 1927 and 1928, by the smaller crops ofr.
tively high priced and somewhat inferior quality prunes from Yugoslav4i.:. ....i..
Yugoslavia produces only the smaller sizes which, combined with a tends~qrllH
in California to produce, relatively lower percentages of the smaller salii.
a/, has made the smaller sizes relatively scarce with a tendency toward
higher values -compared with the larger fruit. The German trade, however, : 74
shows a very positive leaning toward the larger sizes from America and. IL.a '
tendency for these to. replace Yugoslav prunes. The trade does not care to 'i::,
accept this tendency as permanent since the Yugoslav prune is well liked a":4.
ae. return on the part of that country to regular supplies of good quality, ..:
would find a favorably responding market in *Germany. ':!

Prune preferences

Germany presents a natural demand. for the more highly flavored, tart :..
variety of prune. The Jewish portion of the population naturally favors the...
tarter fruit. In the past, this type of prune has been supplied by Yugo- .
slavia and the Pacific Nnrthwest with small supplies now and then from ':.
Roumania and Bulgaria. The Pacific Northwest is generally able to supply .
the larger sizes, thus filling the lack of these in the Yugoslav crop, b In
1926 the Pacific Northwest prune secured a very wide distribution in Germany:"
which combined with excellent quality laid the foundation for a large future" :i
market. One objection to the Pacific Northwest prune is its irregularity in
production. The partial failure of -the crop in 1927 and the total failure
in 1928 and its consequent absence from trade channels, has given prunes
from other sources a stronghold not heretofore held.

The tart prune is particularly well liked in Cologne, but there is a
feeling there that the keeping quality of prunes is inferior and that both
Yugoslav and Oregon prunes should be a winter article. A high class store
in Munich reports a definite demand for the Yugoslav prune, particularly.
for the pitted prunes of the better grades. These prunes are very black in
appearance. The' bulk of the business in Yugoslav prunes in that market is
done by the cheaper stores were the fruit is sold in bulk. This market is
strongly inclined to the Yugoslav prune. Oregon prunes are not so well
known. Munich imports small quantities of Bulgarian prunes which are
considered equal in quality to those from Oregon. Supplies from that coun-
try are limited, however, as Bulgaria ships most of its prunes fresh to
Turkey. Yugoslav prunes were formerly sold in large quantities in Berlin
but the scarcity of both Bosnian and Oregon prunes has strongly entrenched
the Cplifornia prunes in that market. As the flavor of the tarter rune is
preferred by most people, however, it is believed that the interest will
swing back when supplies are again available.


_/ See "Prune Supply and Price Situation" by Dr. S. W. Shear, University of
Calif-rnia. .






- 11 -


Hp. The natural markets- for :YugolaiV prunes in Germany are found In the
.:buth'German States, Bavaria, Wurtemburg, Middle Saxony, Thurigen and Sileula.
-'l Vhe German people have so- generally eaten Yugoslav prunes in the past that
n" 'Ksthere' is a decided preference throughout the country for the acid prune.
This is so pronounced that the California prune in one of the largest depart-
mett stores is used mainly in fruit mixtures with other more acid fruits,
including dried apples, peaches, apricots, pears and both Yugoslav and Oregon
Sprunes. In this connection and for this purpose the New York State dried
S apple is preferred because of its acid flavor. In tne face of declining sup-
1 plies from Yugoslavia, the Pacific Northwest has an opportunity to establish
its tart variety as a distinct fruit to supply this consumer preference.

Competition of fresh fruits

A majority of trade factors in Germany consider Spanish and Italian
oranges the outstanding competitors of dried fruits.and all agree that large
quantities of low priced European fruit is at all times a serious competi-
tor and a factor bearing upon demand and prices of dried fruits. It is
generally felt that fresh apples and their availability throughout the
entire year have definitely decreased the demand for dried apples. On the
other hand, many factors competent to judge state that fresh fruits do not
offer the competition to dried fruit that is generally believed to exist
,except when fresh fruits are extremely cheap. Their contention is based
on the fact that fresh fruits are generally eaten raw and out of hand while
dried fruits are universally cooked and form a part of the lunch or dinner.
Unlike the practice in America, fruits in Germany are hardly ever eaten for
breakfast. The trade statistics, in the absence of adequate production,
data, are the only information at hand to indicate the trend in per capital
consumption of fresh' fruits in Germany. As far as can be judged from im-
ports, there has been a decided increase in the consumption of fresh fruits
in recent years. This is particularly true of oranges, bananas ani grapes.
Dried fruits, on the other hand, have not maintained- pace.

Three important reasons for the increase in fresh fruit consumption,
according to a trade factor in Cologne, have been: (1) the enormous quanti-
ties of slightly off-grade fruit solid by hawkers and peddlers, (2) the
cheapness of the fresh fruit and (3) the effective health agitation.

Competition of canned fruits

Very little statistical information is available on the canned
fruit industry in GermR.ny. The trade, however, is of the opinion that an
S increasing consumption of canned fruits is having some effect on the
demand for dried fruit. The fruit canning industry in Germany is still
of rather small proportions due largely to the fact that the country dces
not produce fruits suitable for canning purposes. German canning costs
are high, in spite of cheaper labor, due to the lack of modern machinery.
S Plums and cherries constitute the bulk of the German canned fruit proi-
ucts. The center of the domestic canning industry is at Brunswick. The
fresh fruits used have to be shipped long distances, strawberries comining
mainly from the Netherlands, apples from southern Geinmanv, and 9lums
;;- from the Itineland and Yugos]avia. Besides freight costs there is a con-
siderable loss in waste en route.





- 13 -.


The imports of canned fruits into Germany, although increasingL.A
recent years, are still small'comznpared with .imports of fresh and dried: :'t.H,,
fruits. An important factor in keeping .down imports of canned fruit hA
been the high duty on fruits canned in sugar -and imported in her teticSal:!I
sealed containers. Canned pineapples. which- constitute the bulk of the'
canned fruits now imported into Germany, have been an exception because
of the lower import luty on fruit imported in juice, i.e., without' sugar *,
and in large containers that are not hermetically sealed when passing th.ro..i
the customs. There has been a steadily increasing demand for pineapples ..........
Germany since the War. Peaches, apricots and pears, are also imported in *I
juice in order to circumvent the high tariff but the volume of the trade :
is still relatively small. N.

The domestic fruit industry in Germany ; a ... ::

Fruit producing areas in Germany .::i

The southern and southwestern sections of Germany, including the "
Rhine district, constitute the most important commercial fruit producing .
areas of the country. Climatic and soil conditions there are favorable '
for fruit production on an extensive scale, particularly for apples, pears, :..:i
plums and cherries. The best producing areas are in the valley of the
upper and middle Rhine and its tributaries. In some districts peaches
and apricots are grown. Marketing conditions are especially favorable
to fruit growers in the-Rhine valley as Germany's greatest industrial
centers are located in the vicinity of the Rhine.

The Lake Constance area is one of the most important producing areas
along the Rhine, particularly of apples. Tne main shipping points are
Friedrichshafen, Lindau, Ravensburg and Ueberlingen. The plain of the
Rhine Valley between Freiburg and Karlsruhe is another important comner-
cial fruit producing area. Buehl in Baden is well known as a market for
early plums and small fruits. Large quantities of cider apples and pears
are grown east of the Black Mountains in Wurtemberg. This area also pro-
duces a surplus of table apples. The slopes of the Odenwald Mountains
north of Heidelberg, constitute another important fruit producing area.
The Palatinate on the left bank of the Rhine is especially important for
the production of pears, plums and prunes.


a7-Basei on a report prepared in the Berlin office of the Unitel States
Department of Agriculture.

ii






- j.0 -


BHE Central Germany constitutes the second most important fruit produc-
i g area of the country and considerable quantities of apple, pears, and
S plums are grown there. As the population is very dense in middle Germany,
however, these districts have a deficit and must depend on other areas and
S. on imported fruit. The outstanding feature of central Germany is the large
I number of plum and prune trees found there. A great share of the prunes and
S plums harvested there is consumed as fresh fruit and most of the balance is
S manufacturered into marmalade. The share of prunes dried is relatively in-
significant.

Commercial fruit production in northeastern Germany is of relatively
little importance except in a few scattered districts. Soil and climatic
conditions there are generally unfavorable for apples and pears. Cherries,
however, are quite commonly grown in northeastern Germany. In fact the
number of cherry trees is greater in proportion to the population in that
area than in any other part of the country.

Conditions in northwestern Germany are more favorable for fruit pro-
duction than in northeastern Germany. Rainfall in northwestern Germany is
abundant and the temperatures show smaller variations during the year.
Some apple varieties, especially Gravensteins, which need much moisture,
show much better quality in northwestern Germany than in the Southern and
southwestern districts. In general, however, fruit production has not been
developed on an extensive scale in northwestern Germany although it is be-
lieved that climatic and soil conditions there would permit of a consider-
able expansion in the industry, particularly in apple growing.

Changes as a result of the War

No census of the distribution of fruit trees in Germany has been
taken since 1913. At that time, however, there was a total of 194,000,000
trees in the country of which 143,000,000 were bearing and 51,000,000 non-
bearing. While considerable territory was lost by Germany as a result of
the war, Alsace-Lorraine was the only important fruit producing area in-
volved. As a result of these cessions of territories Germany lost 5,603,000
bearing trees and 6,259,000 non-bearing trees. Approximately 5,478,000 of
these bearing trees were in Alsace-Lorraine. Deducting the total tree losses
from the 1913 census leaves 136,831,000 bearing and 45,000,000 non-bearing
trees, or a balance of 182,000,000 trees for Germany with its new boundaries.
FRUITS: Bearing and non-bearing trees in Germany in 1913
Fruit Bearing Non-bearing Total

Number Numb er Number
Apples ...... .... : 49,744,082 : 24,631,847 : 74,375,929
Pears .......... : 22,200,657 8,588,229 : 30,788,886
Plums ........... : 52,673,330 : 11,873,887 : 64,547,217
Cherries ........ : 16,218,848 : 5,171,240 21,39u,088
Apricots ........ : 511,679 : 258,U52 : 769,731
S Peaches ......... : 1,285,447 : 735,741 : 2,021,188
Vl Total ......... 142,634,043 51,258,996 : 193,893,039
i Published in "Vierteljahrshefts zur Statistick des Deutschen Reichs", in
1915.





- 14 -


Post-war developments .

Unfortunately there are no official statisticsas to the total t....
tribution of fruit trees in Germany at the present time. One authority ,
estimates that in 1920 Germavny with its ne.7 boundaries hid about 15,000,0ai (
more trees than were in existence in the corresponding boundaries in 19133*1
All commercial authorities seem to be of the opinion that there has been,
considerable new planting since the War. Official statistics are availabbb.i"
shooing that as far as the area in vhich fruit constituted the main lan= '.
utilization is concerned, the total in 1927 .-/as 210,000 acres as compared 4"
with 120,000 acres in 1913. This shows the growing importance of the I
commercial production of fruit in Germany. Distribution of thesp commer- .
cial areas according to fruits is not av,-ilable for 1913 but in 1927
mixed fruit constituted 41.8 per cent of the total,' apples 31.4 per cent, ::
pears 10.4 pbr cent, cherries 7.6 per c-3nt, plums 6.1 per cent., and L.
berries (currants, gooseberries and raspberries) 2.7 per cent. The general..,=
consensus of opinion in Germany is that apples, mix3d fruit, pears and ;
plums made up the main share of the increase.

The increase in the areas devoted to commercial orchards in Germazw
is believed to be the result mainly of the declining acre .ge devoted to
wvine grapes. Even in pre-war times a steady shift from wine-grape p-roduc-
tion to the production of tree fruits mas noticeable. The increasing
foreign competition of imported .'ines in the German market had made the
domestic production of .vine-grapes unprofitable. The slopes in the valleys
of western and southern Germany, therefore, began to be planted with other
fruits. This pre--var development has continued since- the "Jar. The area
devoted to vineyards in Germany during the throe years 1911-1913, averaged
199,000 acres annually, according to the International Institute of Agri-
culture. The 1928 vineyard ara :;as 179,000 acres.

Confusion of v-rieti3s h-s retarded dovelopmont

Progress in the comnnrcial fruit industry of Germany has been re-
tarded by th- confusion of a aide number of varieties. This is partic-
ularly true of apples and peqrs. This conf-ision of v:.rieti'-'s is consid-
ered one of the weakest points in tho Gorman fresh fruit industry. The
xide number of different varieties gro'.vni maes it impossible in many
cases to deliver a ca-rloid of one vrioty from a producing area. Action
.'as started in 1927 and 1928 to reduce the number of varieties, and to
gro.7 only those .vhich have provd to be most practicable. With the on-
courag'.ment no.v being 'given to expert grafting it is believed that the
present confusing mixtures of vwrioties Jill gradually disappear. The
Chambers of Agriculture h-ve compiled lists of recommended varieties
which promise success in local districts. Cor.sider-ble ext-Insion Work
is being done in this connection by the Chr.mbers of Agriculture which h
receive support from the State and in some c-ises from th? Foder-il Govern-
mont. Th-ire are 35 Ch-tnb*3rs of Agriculture in Germany.

a7 Estimate of A. Janson published in "Dor Grossobstbau", B3rlin, 1924.









, .O official assist nco _t fresh fruit industry

i,,:"A& pa.rt of the .0 million mn-r'cs apnropri.'Ltor in 1928 by the Feloral
: Gov.'irrnment for farm reli. f purposes has beo.,r set .iido to pro-iote the fresh
: fruit industry. According to the provisions of the "Farm Relief Progrnn"
this money must be used as follo.Ts:

1. To improve the marketing of domestic fruit by the oncourager.ent
of cooperative m.ariceting :and by the establishment of collecting,
sorting and packing plants;

2. To Tnako specific studies of marketing problems;

3. To improve the quality of the fruit by reducing thu number
of varieties, by tnchlng improved methods of insect and
disease control and 1by setting up commercial grades and
stand rds.

@3rm'mn fresh fruit import trade

Trend in Giowman fresh fruit imports

Fresh fruit consumption in Germany in recent ye-Lrs h:s b)en stimu-
lated as a result of improved transportation facilities and local handlir.g
methods and also by the encourYLg-rnont given to fruit consumption by the
medical profession. There has b-oen a st.xady upward trend in the per capital
net imports of frjsh fruit since th3 war. ITJt imports daring the five years
1924-1928 averaged 23 pounds per capitu as compared :ith 20 pounds per
capital during the five years 1909-1913. Incrlasod imports of oranges and
bananas largely account for this tendency. While no statistics are avail-
able on the domestic productlor of fruits in Germany increasing attention
is being devoted to commercial fruit culture. Progt.oss along these lines
may be expected to have considerable bearing not only on the import trade
in fresh fruits but Rilso on the future irmnin for dried fruits in Germany.

Total imports of fresh friit into Gormany during the five yeors
1909-1915 aver-wed 659,000 short tons annually. Exports and roexports dur-
ing the same period averaged only aboit 21,0(0 short tons annually. Since
the i.-:r imports of frnsh fruit have bean increasing steadily but the export
movement has declined, the former avetnging713.,000 tons 2-nnaally during
the five years 1924-1928 and the latter 12,000 tons.

Orrn.apes, apples, banruin;s, grapes, lemons and penrs constitute over
90 per cent of tha fresh fruit imported into Gerrnmny. Spain and Italy
supply most of the oranges; the United States, S,.itzorland, Astria, Italy
and Holland most of the applos; the British West Indias, Honduras, Columbia
and the Cannry Islands most of the b:-nans; Italy, France .n.I Spain most
of the grapes; Itily and Spain most of the lenons, _and Czichoslova.cia,
Belgium -nd Italy most of the pears. -During th- five :,oars 1909-1913 apples
constituted 42.5 rpr cent of th- fresh fruit imports and oranges 21.8 per
cent. Apple imports have been smaller since the rvar but or'ngis have in-
creased in import-inco. During the past five y'.rrs 1924-1929 apple.s con-
S stituted only 29.6 per cesnt of the total and or-.ngos 30,0 per cent,


- U, -




...16:....

Market periods of princiol frl.shf fruits-. /

Fresh fruits are available to the German market throughout the
entire ynar and particularly during th6 fall and wVintea when the United
States is shipping its ie'7 crop of dried fruits. Hungtrinn and yugosliat :.,
apples and Am)rican Grivenst3ins are -.vailrble on the German .market *du.a !:|f[
ing August mrnd Septembir. Tbn domestic apple crop is nvatlable from
October to December ..nd'-runs much later in good crop years. The bulk f o.
the Europetn npole crop arrives during October 3nd November and. some in
December. If crops in France, Hollanmd and Balgiim -are good imports may
run into January and February. Amn3rican apples nre available on the
German market in largest Volume from Janunx.ry to JJarch. Australian apples
appear during April and last through June. Cherries come on th' h r.martot I U.f
June and .plums strrt' in 'august and continue to October. About 95 per cent .*
cf -.ll crangas, mostly Spanish and Italian, are imported from December to ,:::
May. Banana shipments arrive throughout the yohr but are heaviest in the .:,
spring and summer months. Increased qunntitios of fresh prunes are being
imported from Yugoslavia, Bulg-'ria, Hung-ry and Rumania during the late
sumrmior and early fall. .X

a/ According to the report from 7r. 0. L. Dawson, Assistnift Agricultural
,Cormissioner at Berlin.

FRIST FRUIT: Imports and o:ports from Girrmiany, averages
1909-1913 and 1924-1928

4Avragoe
Kind of fruit : 1909-1913 :1921-1928
: Imorts : Exports : Imports : Exports
:t1,000 pounrss:l.0C0 ,oundrs:1.0(0 pounls:l.GCO pounds
Fr.3sh fruit .
Table fr-.ip s ....... 76,946 : 218 : 116,830 : 188
ApPTles.............: 560,275 : 5,193 443,369 2,019
Pi.rs. ..............; 10,699 : 5,012 : 107,480 : 75
Pe ch s-J ............:2 10,-463 :b 22,788 :
Damson plums.......: 7,340 : 17,20 : 22,374 7,723
Other rlurns c/...,.: .19,215 .d 2,104 : 18,919 d/ 2,094
Cherries...........: 17,759 : 2,723 : 14,025 : 3,844
Stra aberri.s ....... 12,595 : 179. : 9,158 : 24
Other berriis......: 8,109 : 5,1176 28,803 1,159
Bnanas ............ 66,721 1,194 : 125,675 534
Or'rgis ............: 298,112 :(. 1 452, 081 1(
Lemons........ ...:/ 80,745 :( 9E 115,658 ( 16
Pineapples.........: 5,289 : 97 : 11,377 : 16
Tot-,l..........: 1I317,767 ; 414048 : 1,485,197 24,322
Co.ipiled in the Foreoign Section, Division of StatisticAl : nd Historical
Research, from "Ausauirtig3n Handcl" for .-.,'ars mentioned.
a/ Includes nricots for 1909-1911. Theroaft..ir apricots are included in
"other plans". .
b/ Included in "other plums".
/ Listed ,-s :;ir-ibell, Gr-en Gage an' other fruits of the plum family.
d/ Includes exports of peaches.
e/ Includes rl-ttivefy insignificant qu-ntities of other citrus fruits and
of fresh dates .nd figs. i








wJ i rraae prac tices ana mar ering aeve opmenms

I ii i,:, -..
A.-Principal -portq of entry .
i For many years Hamburg has been' the outstanding dried fruit distri-
butting center for Northern and.,Westetn Europe. Excellent dock and free
harbor facilities, financial resourcess, experience in fruit trading, to-
S gether with the fact that it is the geographical center for a laree con-
S suming territory, have combined to give Hamburg this supremacy. Northern
and Eastern Germany,. Central Europe, Poland and the Scandinavian countries
were all served through this port in pre-war days. Following the ,ar this
supremacy for a time was threatened. The isolation of Hamburg during the
war forced the Scandinavian countries to uy increasing quantities of their
fruits direct from producing areas and this trend has been manifested in a
number of Central European countries which formerly purchased through
Hamburg. The threatened decline in the position of Hamburg as a fruit
importing port has been overcome in recent years by the increased volume of
dried prunes handled by'that port. Hamourg is still the leading dried fruit
importing market in Germany for every variety of fruit except prunes from
Yugoslavia. Bremen is next in importance. The Rhine cities are important
markets for fruit coming into the country via the Netherlands and Belgium.
Passau Pnd Regensburg on the Danube river 2re 'the leading ports for the
importation, packing and distribution of Yugoslav prunes.

Time required to serve Germany from export countries

German ports secure excellent freight service. The available refrig-
erator space is constantly increasing and has been an aid in securing fresh
fruits in excellent condition. Distaice is no longer a formidable handicap
froi a quality standpoint, the time required for fruits to arrive in Germany
from different ports and countries is as follows:

New York -. to termeny 10-14 days
Pacific Copst 4-6 weeks
.ustrlip Pnd New Zerland" 6" 6- wEeks
Cpoetown (South Africa) 3-4 weeks
Mediterrqnenn Countries 2-3 weeks
Yugoslavia (prunes) lu-14 days

Buying periods for Vried fruits
The bulk of tne dried fruit business in Germany is done for arrival
in October-and November so as to have the 6oods on hand for tne Christmas
trade. New crop contracts are partly entered into from tree to four months
before shipping date. It is common for the large factors in wholesale dis-
tribution to buy about fifty per cent of their prune needs in the f.nll and
then in smaller lots as needed. There is more buying throughout the year in
Germany than in most of the other European countries. This tendency will no
doubt continue as the consumption of prunes extends into the summer season.
If prices are considered right, comparatively large quantities may be pur-
chased in advance, but the practice of speculation in dried fruit on paper
is generally unknown in Germany. Inquiries for prunes especially late in
the season, fairly,well reflect the inland demand.




- 18 -


Distributing agencies 7..... ,
.f. .age-die"
The distribution of dried fruit in Germany ig still largelyy in th
hands of the long established importers located principally at Hamburg s1d
in a much smaller degree at Bremen and the Rhine'-ports. Hamburg PosseasBlUE'
all of the facilities fi hon.irig fresh and dried .frait on a large., scah.'
Most of the dried fruit Importers in Hsmburg'"have'.thei:r own packing faciir,
ties or have their' prun-es packed by others. Distances :to inland markets !'i
ere relatively short and 'this with the availability of rapid means of ".'.4
transportation asnd-.cotuhicatfion makes -it possirole:to distribute supplies. *K!
quickly in all parts of Gerrimany. 'The H-imbarg importers -and pa.qckers sell. :
to wholesalers in the inland cities and'the latter sell to retailers. -.: !

Consumer cooperative end group buying has m&de rapid.progress iAi.. :.i
recent years, but there is'no decided tendency as yet for such organize.. t ""3
tions to buy their fruit- supplies direct from-exporting countries. They.
still continue to rely upon Hamburg and.-Bremen importers. There is :af.. i,
definite inclination on-the part-of inland' cities, however, for direct "
representation. This may result in a tendency to ignore Hamburg and
Bnemen importers. The latter development is particularly true of certain A1
Mediterranean dried fruits. While e few of the larger American prune
exporters have established direct connections in some of these inland
markets, it seems'unlikely that such direct representation will result in ::
a large volume of sales owing to the advantages offerei by the prune pack- .
ing industry at Hamburg. Such direct trade at the present time is confined
to relatively small quantities of the very large size prunes and to driel
fruit other than prunes which are bought in original pack and come direct
into the Rhine country via Hollend, Hamburg importers maintain that- a I
development of this kind would not result in a greater volume of sales
and that shippers' risks are greatly increased thereby due to the relative-
ly weak financial position of the inland trade.

Hamburg has both the agent and local broker, Theoretically, the
agdnt represents the ship-oer end the local broker handles sales among im-
porters. He may be employed by the agent on a split brokerage basis. It
is common to give him offers "subject to confirmation", the agent handling
all "firm" offers. It is generally understood that the local broker has
no direct account but this rule is often disregarded since Hamourg at
present is not nearly as speculative as it was three or four years ago.
It is generally well understood that the agent 'cannot.be a regular buyer
of fruit. In the fall when payments are heavy, it is occasionally the
practice for agents to finance buyers.. In that case the ouyer is willing-
to add enough to the sales price to reimburse agents for interest during
the time elapsing between arrival of documents and arrival of goods. This,
however, is a rare practice.

Trade organizations

Tne "Reichsverband des Deutscnen Nanrun6eomittel Grosshandels"'- with
headquarters at Berlin is .the national association of wholesalers for ,.
Germany. It takes an active part in such .dried fruit questions as tariff j
rates, contracts end restrictive measures regarding imported fruits and:
health. The "Verein zur Foerderung des Hemburgischen Handels mit Kolon- .,
ialwaren und Getrockneten Fruechten" is a local Hamburg organization and .
is the clearing house for difficulties of a local trade nature. Similar




- I %. -


Sassocirtions are located at other ports. Germany is taking an active
part in the International Wholesaler Association which was created in 1927.

Grou; buying

Cologne is the center for the "GEPAG", a large central buying
organization for various Catholic consumers cooperative buying societies.
Its turnover in 1928. amounted to 20 million dollars. All kinds of food-
stuffs are handle& an, they pack prunes in their own plant. The "EDEKA.Z-
ENTRALE" with headquarters in Hamburg buys all foreign imports for various
central associations located in the larger cities comprising about 38,000
retail stores. In 1928 their prune business totaled 90,000 boxes of 25 -;"
pounds each. The "Grosse Einkpnfs Geselscheft, Deutsche Konsumevereine",
is another consumers buying organization. This cooperative organization
usually referred to as the G.E.G. comprised 1,C33 consumer cooperatives in
1928. Its total turnover in 1928 wns 1,124 million Reichsmark ($281,000,000)
as against 247 million Reichmark ($61,700,000) in 1927. Goods produced in
their own factories tot-led $26,1001,00 in 1928 as against $15,700,000 in
1927. Some units of G.E.G., as the one at Dusseldorf, are allowed to buy
direct but most of the buying is done through the Hamourg office.

Another Hamburg cooperative buying society is the "Production" which
is made up mostly of workmen. Their buying is done through the G.E.G. In
1928 this group had a membership of 101,909. Its activities include sav-
ings banks, 1.utlding societies, bakeries, furniture factories, meat shops
and almost the entire range of articles concerned with the home and living.
Its turnover in 1927 amounted to $16,000,000. Chain stores have not made
the progress characteristic of them in the United States but they promise
to become sn increasing factor in time.

Origin marks on boxes

The practice adopted in 1927, of stamping "Grown and Packed in
Clifornia" on every oox of original pack California dried fruits does
not appear to oe strictly enforced. This stamp should not ue omitted and
attention should be drawn to it especially if an advertising g program is
adopted. The German trade does not consider Santa Clara as a 6eo.raphical
designation but as a standard for quality. For that reason it is their
contention that the better grade be market "Santa Clcra" prunes although
admitting that the full premium is not always secured. The attitude of
considering "Santa Clara" prunes as a resignation of highest quality
rather than as a term designating a geographical district is common all
over Europe. Prunes in boxes destined for Germnany should be strapped
separately, each box with one wire in the center, rather than two boxes
to a bundle. The 12-1 kilo (27A pound) DOX is the most common in use
both for local and original pack.







- 20 -


Payments and inspection


Dried fruit contracts provide for buyer's option, three days sikt,'.
draft on German buyer, or sixty days American banker's acceptance.credit. .fl;,
The seller pays the. interest end prices for both terms are the same. Ve :r '
little use i.s made at present of a banker's credit, the three days eight "
draft being used almost exclusively, the objectioqn to banker's'credit be-'
ing that it offers no inducement. In some quarters it is urged that the .E
greater safety possible under the credit plan should be compensated for by?
a rebate on the c.i.f. price, which would result in larger purchases. i
This, however, is a violation of the contract terms. ,..

'While the German trade admits that the practice of contracting for il
Pacific Coast dried fruits on the basis of Dried Fruit Associatiofi certifi- ;||
cates being final as to quality, is both desirable and practicable, they i
insist that no allowances be made as to quality. This is particularly ::
true of dried fruits requiring special prepar&tfon such as apricots, raisins:|
peaches, pears, and apples, on which most complaints have been made. Apple "
rings, particularly, have caused difficulties but the trade in this respect
is blaming the individual shipper as much as inspection. Ametican prunes
nave a high reputation for good quality. i

No special contract forms -re used in ouying dried fruits from other'
competing nations. Imports other than those from the United States are i
subject to arbitration at destination. Credit terms very but they gen-
erally include payment on 9rrivsl of 7oods, shipping documents to be sur-
rendered against payments enly. Russian dried fruits are consigned and
sold through Government representatives after arrival. The stronger houses
in Germany have no objection to the severe contract sterns on fruits from
America as it has a tendency to eliminate the smaller and less desirable
operator. Ports in competition with Hamburg find objection to the extreme-
ly favorable terms extended by that port.

Retail and wholesale buying

Retailers generally buy in small quantities, covering their imme-
diate needs only. This practice is very pronounced in Germany as fresh
pack is quickly available from packing centers. Weekly buying by large
retailers is common. Losses due to spoilage under this policy are reduced
to a minimum. Under the Hambur, plan of "open" assortments, the sizes in
demand by consumers can always be secured.

Bargain seles of dried fruits combined with advertising to move
large quantities or to serve as leaderss" h-rdly ever occur in the average_
retail grocery store in Germany. This practice is well understood, however,':
by the newer type of department stores which nave found it a means to
greatly increase their sales.






-21 -

Inland wholesalers will contract for large quantities only when they
consider the market favorable. Such contracts are not for prompt delivery,
bout often run over three or four months, to be called for in small lots
p; during that period. While quantity and prices are definitely stated, the
matter of size is left onen and can be altered from time to time depending
p upon consumer preference. Wholesalers, therefore, ere not confronted with
the problem of having to dispose df sizes not particularly in demand. The
credit terms are extremely liberal, starting with thirty days and extended
if necessary to sixty and even ninety days. Under this plan, Hamburg
practically finances tihe prunes until consumed. This type nf contract is
| a .unique feature of the German trade and is only possible because of the
terms extended by the packing centers.

pRetail selling of dried fruit

The retail stores catering to the Wealthy classes are unimportant in
general as dried fruit outlets. Their customers prefer canned and fresh
fruits. This tendency'has become more pronounced as economic conditions
have improved. Fresh fruits are offered for sale in these stores through-
out the year. While the patrons of these stores generally do not indicate
much of a demand for &ried fruits, prunes are an exception as they are
" looked upon as healthful. Only the largest size and highest quality of
prunes are demanded. The packages should be neat and the prunes shiny.
The usual unit of sale in these particular stores is high, ranging from
two to five pounds. Even in tne retail stores catering to the wealthier
classes, dried fruits in cartons are not popular. Special packs in glass
containers from France are in demand by :a limited number of consumers.
It has been suggested thnt dried fruit in cartons might be made more popu-
lar if shippers would provide shelf display cartons with cellophane front
so that the fruit could be seen. Prunes in these stores are identified by
countries but no distinction is made between California and Pacific North-
west prunes.

LIn the small and medium size retail stores catering to the families
with medium income, mixed dried fruits and ring apples, where there is a
bakery trade, are most popular. The patrons of these stores judge quality
first by taste and then by Rppearance. In prunes the demand is decidedly
for tart fruit. The fruit must be black in appearance. Dried fruits are
called for from Christmas and continue until new fresh fruit is available,
beginning usually with strawberries. Prunes in cartons are not wanted.
The tendency is to distinguish between prunes coming from California and
Yugoslavia but no distinction is given tne Pacific Northwest prunes al-
though the taste of the latter may be preferred. The unit of purchase
in these stores is about two pounds.

In large establishments catering to a wide range of consumers, the
unit of purchase is a pound -r less. There is e continual demand in these
stores for dried fruits used as ingredients in soups and other dishes. The
demand for prunes alone is confined mainly to the winter months. Black
......and shiny prunes are preferred. The appearance of the fruit, moisture
content and taste are the points most often referred to in these stores.





22 -

Carton prunes in these stores are out of th.. question since fruit must b'
available for inspection by the prospective'parchaser Raisins in cart .,f,
are making very slow progress even under"advertising. In the mountain r
sort regions, however, the cellophanbe mixed fruit package is making sa..
progress.. ... .

The'price tag on dried fruit is the accepted rule in all type of.
retail stores imbut it is particularly itmporiaint'in stores which caber to .. ,i:,
the medium -and lesn-well-to-do families. 'In these stores dried fruits are ::
always displayed in neatly arranged heaps or in open boxes so that every-
body can see the quality and mixture of the' fruit. 'The German housewife
lays thc'-tmost importance on seeing what shebuys. Identity of the fruit
is not entirely lost as mixed fruit may be designated as "Californi ache
Backobst." Individual dried fruits are designated as Californian prunes,
Turkey raisins or Bosnian prunes. Often thedisplay- boxes have no identi-
fying marks whatsoever and cards may indicate "These are California Prunes",
"These are Californias, unbleached sultanas", or "These are Bosnian prunes11.-
In Germany the distinction is mainly between sweet and tart varieties.
The term "Catherinen Pflauman" is frequently used to designate a sweet
prune. The practice of buying by sight has developed elaborate and often
effective displays which are powerful factors in making sales. American
dried fruit interests can well afford to give every encouragement to such
displays.

Designating prunes as large, medium and small'

Original sale of prunes on the basis of large, medium and small is
held by the German trnde es quite impossible. In their opinion this size
range is too wide end the basis too indefinite. Aside from the fact that
the established gradings have been in operation since the beginning of the
industry and are generally followed by'ell prune exporting countries, it
is held that the present system more nearly expresses real values than the ,
less definite plan.

While the present size rradin-s are carried down to the retailer,
they mean very little to the consumer. Prunes are not displayed and sol.
as 30/40's or 80/90's, such terminology being foreign to the consumers.
Some stores have only two grades; lrge .nd small, while others have a
;enerol r.nge of large, medium and small. In stores catering to the
less-well-to-do classes even these designations pre obscured by the
question of price. Under the present system the retailer has an oppor-
tunity of doing his own mixing and price variation between stores can be
explained on the ground of "better quality". Htrein lies one of the
inherent objections to the carton package which definitely establishes
the quality and grade of fruit.

P.cking prunes in Germany :

In 1928 tnere were in Hambur6 eleven importers of prunes who owned.
their own packing plants. In' addition tnere were four operators, doing '::
custom packing for others. Bremen has one packing plant catering to cus-
torn packing for importers. Two or three packing plants are located on or |


















ii
.............. ie in rm y twos t e largeli y t





the10 Uk .pe 10. ils ( $. 8 ers~ 1,00 e iondstallfed retia i faor ofh~
bsgprne hicnrullprart~- ,9?.. ith t so doinf .rTenta plno s r aedue
.... icp o0 atiii inor voive oteg-






appar ontnt iththepreentlowdiferential CandthO'ereisno or1igaion.
for iithe bswere marflfresan lt








crease~~~~~~~ in mwrt noxiinhva prunes anrteloe ifrenteinale
(les thn 14 cnt at b,-) ~ ha otmteriaize *as r ye.Womlen thre 4 haks
thrug the port of hours ; wome ar
Pii4 ii irg vmi t hio









method~~~ ~ ~ ~ of-rcesn prunes whcwnole- h h end theyr weure norie
of he arer-anl -nae* esonsbl opEtos Whoeer, theearve inosoalledi
labo savng~mchinry~ad~m ier procesin requipment, Machin es fo rtn


air raf Psthe runs-.olli nt,!e-cute or oxije Thge~sve pla era-r

invaiaby th wods .Sana C~ra runs". Y~.o l-v prune arequiesi nat

employed~~~ mostl fo ti..wr--
ambur, prune packers have 'De( n, accuse,! of mixin!-,, rieties, a,! ......
tooli muc moistureilii pac ing ofiiiii-, lni ii up s izesi,iiiiiliiiii paciiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii under ii ii
w e i h t -ii c a l i n tiihei iiikeii iiiiiiiiiii S aiiiiriii~ii iiiiiiiiiiiiii~iiiiiiiiiii~ l iiiiiiiiiiiiii iiiiii=iia.C r P r u n e s wihiii th e iw eiiiiiiiiiiiti
............. a s su ch a n ieiiiiiii t oiiiiiiiaiaii W h e reiiil th e rei a r e n oiiii o ffiiiiiiiiiiiii c iaii i iiiiiiiiiiii ~~iiiii iiiiiiiiiiii
r eiiiiiiiiii2iiiiiiiu liliiiait iiioiiiiiiiiiiiiiiiiiiiiisllui iiiilliiiiiiiia s o n t h e P i if i c C o a s t r e q u i r i n g p a c k i n g t o c e r t a in



hi-h ereo' tna&iiqa ity In orde to protect the~iiiiliiir reuaiioiiniiii
elso akr n'Pmug ae onit, necssry ti n.i refuse toiii mii ix iviiii-
iie ies or. to addi bn unu ua pe jrnt g-e ofi moisiir w! ae e;- to lo so.iiiiiiiiiiiiiiiiiiiiiii~ii iiii i
.Ti.isAkolodjn-tefa-t.itat pu iis rom Tagoslaiii the Pa ificiiiiiiii
'Northwest.~ -an Cziii oria,,,4aeoirYin- As eeoe isinc methodsiiiiii
.6:'rcs ig rne.er~s i~tbl p _ti: f h fi rit
.- h s areasi iii. iiiiiiiiii





-a 24 -


... Oregon hal complaints, re,,a.rd.n her pack as long as attempts wr
made to secure packing: gains equal',to California. The tender-skinned
flavored. and artificially-dried Oregon prune requires different treatmait
from that of the sun-dried California prune. It is only in comparative...
recent years .that ..the Pacific Northwest prune.has been able to build up Ai
reputation for keepingg quality, possible only at the cost of material if-l!
provement in packing. Yugoslav prunes, as at present dried, are more
suitable for "etuvage" which is in reality a second drying, than for
"dipping" or the addition of water.

Custom packers further refuse blends that are too far apart but
will take half of one size and half of another. Occasionally, packers
will have an agreement with retailers so that price's will be based on a
* count other than those recognized in the original pack. It is generally
admitted that local pack contains more water than original pack but this
is not looked upon as a questionable practice. It is maintained that more


water results in a blacker, more pliable and more appetizing fruit. Fur-
thermore, it is held that more water is possible as the local pack need '
not be shipped by water under tropical conditions. As wholesalers can 1
order forward in small lots and retailers buy from hand to mouth, the
turnover is frequent and keeping quality is less necessary than with the
original pack. Designating prunes as "Santa Claras" is claimed to be
.ethical as the German.people, and for that matter all European people, as
previously mentioned, do not think of Santa Clara as a-geographical area
but as a designation of highest quality.

Advantages of Hamburg Tack over original pack.

The attitude of the trade throughout Germany toward the Hamburg
pack is frequently expressed, by a feeling of uncertainty as to just what
has happened to the prunes while passi-ng through the Hamburg packing plants..
There is an almost unanimous agreement that Hamburg pack carries more mois- *a
ture than original pack, although the better operators are improving in
this respect. Other advantages, however, outweigh the matter of quality. .
Among these various advantages,' as expressed by the wholesalers, are the
. following: (l) They are cheaper; (2) always fresh; (3) can be ordered as
needed; .(4) easy credit; (5) availability of sizes demanded by consumers;
(6) quick deliveries; (.7) requires less storage space; (8) difficulties
can be easily adjusted through personal contact.

One of the largest department stores in Germany admits that some
preference is given original pack chiefly because they feel that no undue .
amount of moisture has been added and that there, has been no mixing of :l
sizes.. However, if prices on Hamburg pack ar& cheaper the-preference
goes there and as they buy weekly their turnover is rapid and the freshly' :
packed prune is an important factor in selling. The "Edekazentrale", in
Hamburg, one of the largest cooperative buying units, buys about 90 Vaer ;
cent Hamburg pack and 1C per cent original pack. A quantity of original
California pack is bought for Christmas and later only on orders. The S
bulk of the purchases consist of Hamburg pack and in the spring the Ham-
burg pack is bought .exclusively. The quality of the original pack is |
held superior ani the trade will pay a small premium for it, Attempts !i








Sto provide some restriction on HD.mbur, pack may materialize in the near
j: futures Four or five oft. the more responsible packers have agreed to form
S a commission which has for Its purpose the bringing of the Hamburg pack to
(if a standard of higher quality.

Charges lower on Hamburg p _qk

The ocean freight-and tariff charges are considerably lower on prunes
imported into Germ.any in bags than on boxed prunes. This gives the German
importer of bagged prunes a material advantage over the importer of "original
pack prunes". The total handling charges from the Pacdific Coast to Hamburg
* are $1.40 per 100 pounds on prunes in bags and. $1.78 per 100 pounds on prunes
S in boxes. This advantage of 38 cents per 10C pounds in buying bulk prunes is
reduced, however, not only by the -oss in weight -f bag prunes, estimated by
some at one per cent, -but also by subsequent extra cartage and handling
charges'.

Comparisons of charges on original
pack and Hamburg pack

t Prunes in boxes Prunes in bag:
SI tems .,
:: ______per 100 lbs net per 100 lbs

Cents Cents
; Freight: Pacific Coast to
SHamourg . .. 84.5 75. C
S Tariff per 100 kilos gross, 8 marks
less 10 per cent tare .. 87.5
S... Tariff per 100 kilos, 6 marks . 65.0
H Strapping charges .. 5.5
S Total per 1CO pounds net $ 1.775 $ 1.400



Packing rates

Hamburg rates for custom packing are 68 cents per 100 pounds (6.3
marks per 100 kilos) when packed in boxes containing 12i kilos of fruit.
When packed in boxes containin-, 25 kilos of fruit the rat-e is 56.5 cents
per 100 pounds (5.2 marks per 100 kilos). The custom packing rates on
the Pacific Coast vary considerably. In Oregon, where gain in weight and
blending must be small in order to obtain a finished pack of :good keeping
:i quality, the packing rate is $1.50 per 100 pounds. In California the
!., rate is $1.00 per 100 pounds. This shows that the packing cost in Hamburg
* varies from 56.5 cents to 68 cents per 1CO pounds, depending on the size
of the container, while on the Pacific coast it ranges from $1.00 to $1.50
t pqr 100 pounds. The advantage to the Hamburg packer, however, is not as
great as these figures would seem to indicate since the handling costs on


bm "; HN.-MMAM.;
_aA.Ul: __ 01:10




UNIVERSITY OF FLORIDA

6 111' 31262089297427

i ..
the Pacifiic coa st', 'i."ut. a .taing PP4'%M: &P$,: l'
to Hawburg in bep ASS0ut about a5s centsPet
in- the price .paid;by tie t mbxrg importerh tJ"- v "" t rr
4 ". < \ .. .. '4' ,:., i.


t 5 8 ** ; > : ..* *' > *' : .* '. :, ; :' .'. ".' ,...- ... ..' -.i ,:
V.t...... .....
The follovi4i'bable, compiled fkbS *Ma6k6 tvs ne
of pacekeilIM d rletruh.~t
.. -. "4 .. '
D RUID.PRtMZS: Movemient in b.rt .1 SM .
*. 6 ", .: ." .; : ... "-'..^ ":-


", .' '. ," -" .-* '. "
t qMqvement -. ; :





boxes .... .6. .:. '68,0p0 : ,0.' *.:.
_' J ve_,. .... .. i "' ....


.1ioijJUi in ua.iu and pacicen for the
trade in .Getrmany .
Importei Il "ori-inel pack" in boxes .:
* For "ships transit" .
Total . .


44,418,000
2,024,000
55,000
56.185,000


it 4


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