• TABLE OF CONTENTS
HIDE
 Front Cover
 Table of Contents
 Introduction and history
 Importance
 Citrus cooperatives
 Truck crop cooperatives
 Dairy associations
 Egg marketing associations
 Tobacco and livestock associat...
 Farm supply cooperatives
 Service cooperatives
 Conclusions
 Back Cover
 Historic note






Group Title: Bulletin - University of Florida. Agricultural Experiment Station ; 672
Title: Florida cooperatives
CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00027441/00001
 Material Information
Title: Florida cooperatives
Series Title: Bulletin University of Florida. Agricultural Experiment Station
Physical Description: 53 p. : chart ; 23 cm.
Language: English
Creator: Hamilton, H. G ( Henry Glenn ), b. 1895
Love, Maxey D
Spurlock, A. H
Publisher: University of Florida Agricultural Experiment Station
Place of Publication: Gainesville Fla
Publication Date: 1964
 Subjects
Subject: Agriculture, Cooperative -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
non-fiction   ( marcgt )
 Notes
Statement of Responsibility: H.G. Hamilton, Maxey Love, A.H. Spurlock.
General Note: Cover title.
 Record Information
Bibliographic ID: UF00027441
Volume ID: VID00001
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 000929063
oclc - 01310869
notis - AEN9831

Table of Contents
    Front Cover
        Page 1
    Table of Contents
        Page 2
    Introduction and history
        Page 3
        Page 4
        Page 5
    Importance
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
    Citrus cooperatives
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
    Truck crop cooperatives
        Page 33
    Dairy associations
        Page 34
        Page 35
    Egg marketing associations
        Page 36
        Page 37
        Page 38
    Tobacco and livestock associations
        Page 39
        Page 40
        Page 41
    Farm supply cooperatives
        Page 42
        Page 43
        Page 44
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
    Service cooperatives
        Page 52
    Conclusions
        Page 53
    Back Cover
        Page 54
    Historic note
        Page 55
Full Text
I':.


0R IDA

OPERATIVES


H. G. HAMILTON
MAXEY LOVE
A. H. SPURLOCK


University of Florida
AGRICULTURAL EXPERIMENT STATIONS
J. R. Beckenbach, Director, Gainesville, Florida


:.
.V














CONTENTS



INTRODUCTION ..................................... ...... ... ... ........................................... 3

H ISTORY ..................... .......................................... .......................................... 3

IMPORTANCE ............................................... ..... .... ..... ................... 6

CITRUS COOPERATIVES .............................................. ........... 12

Sales ................................. ....................... ..............- .- 21

Pooling Arrangements .......................... ..................... 22

Florida Citrus Exchange ................................. .......... 26

Factors Associated with Efficiency ......................... .. ........ 27

TRUCK CROP COOPERATIVES ......................... ..... ..... ........-- ........ 33

DAIRY ASSOCIATIONS ............................. ...................... 34

EGG MARKETING ASSOCIATIONS ............................... ..... .......... 36

TOBACCO ASSOCIATIONS ................................................... ................... 39

LIVESTOCK ASSOCIATIONS ......................... ................... .. ................. 39

FARM SUPPLY COOPERATIVES ........................................................ 42

SERVICE COOPERATIVES ....................................... .................... ............ 52

CONCLUSIONS ...... ...........................- .............. ...... .. .. ................... 53









FLORIDA COOPERATIVES

H. G. HAMILTON, MAXEY LOVE, A. H. SPURLOCK 1


INTRODUCTION

The Department of Agricultural Economics of the Florida
Agricultural Experiment Stations has conducted research on
Florida cooperatives since 1930. There have been a number of
bulletins and theses published on the results. Some of the bul-
letins are now out of print, and the theses are not available for
general distribution. It seemed desirable, therefore, that some
of the more important findings of these studies be made available
in a current publication. This is an adaptation of earlier pub-
lished works-the most recent of which was prepared for admin-
istrative use only and never received general distribution.2

HISTORY
The Florida State Grange was organized in 1875 and the
Farmers' Alliance in 1888. The Grange over the years of its
activity formed 113 local units with a total membership of about
1,500. The Farmers' Alliance organized 186 local units with
a total membership close to 4,500. Perhaps a dozen of the
Grange units and three or four dozen of the Alliance units or-
ganized and operated general merchandising stores. Most of
these stores operated only two or three years and none more than
five years. It is believed that pricing policy (below competition)
and over-extension of credit were the chief causes of most fail-
ures. At least two of the stores undertook to market produce
of their members.
The Florida Farmers' Union operated in the state from 1908
to 1920. There were around 2,000 local units of the Farmers'
Union with a membership of about 12,000. The local units were
federated into County Unions which formed the connecting link
with the State Union. The local units, like those of the Grange
and Alliance, in some cases, formed local stores and, in some
cases, engaged in marketing farm produce.

'Agricultural Economist and Department Head, former Research As-
sistant, and Agricultural Economist, Agricultural Economics Department.
SAcknowledgments are made to M. A. Brooker and E. W. Cake, who par-
ticipated in these studies.











TABLE 1.-NUMBER OF COOPERATIVE ASSOCIATIONS ORGANIZED IN FLORIDA, FIVE-YEAR PERIODS,
1889 THROUGH JUNE 1959.

Livestock and
Citrus Livestock Truck Crops Farm Supply Miscellaneous Total
I Products
Period I Percent
Organ- Active Organ- Active Organ- Active Organ- Active Organ- Active Organ- Active in
ized 1959 ized 1959 ized 1959 ized 1959 ized 1959 ized 1959

1885-1889 1 1 0.00
1890-1894 1 1 2 0.00
1895-1899 1 1 0.00
1900-1904 -
1905-1909 95 12 95 12.60
1910-1914 20 3 5 5 30 10.00
1915-1919 27 1 1 22 1 1 8 59 3.40
1920-1924 38 3 5 27 1 9 1 79 6.30
1925-1929 13 4 20 2 40 1 29 102 6.90
1930-1934 32 5 20 21 1 2 38 112 6.25
1935-1939 45 2 6 16 2 8 2 22 4 97 9.70
1940-1944 23 1 6 18 4 28 1 28 103 5.80
1945-1949 29 8 12 3 27 6 10 5 40 12 118 28.80
1950-1954 14 7 18 10 6 4 6 3 24 7 68 45.60
1955-1959 7 2 11 8 16 8 6 6 20 15 60 65.00
Total 345 48 99 23* 199 26 60 20 224 39** 927 16.80

Includes three livestock marketing associations, four livestock caretaking associations, six dairy marketing and six dairy service associations, and
four poultry associations marketing table eggs.
** Includes miscellaneous marketing and business service associations.
SOURCE: Data for 1885 through 1930 from M. A. Brooker and H. G. Hamilton, Farmers' Cooperative Associations in Florida. II, Organization and
Management (Gainesville, Florida: Agricultural Experiment Station Bulletin 263, 1933), p. 8.
Records on cooperative associations chartered in Florida taken from Secretary of State's files for period September 1931 through June 1959.







Florida Cooperatives


The first cooperative receiving a state charter for the pur-
pose of marketing farm products was organized in 1889. There
were only four cooperatives formed prior to 1909. In 1909 there
were 95 charters issued to citrus cooperatives; 12 of these as-
sociations were still operating in 1959. The number of associa-
tions chartered by five-year periods and by commodity types
is given in Table 1. From 1885 to 1959 there were 927 associa-
tions chartered. Only 16.8 percent of these were active in 1959.
The number of associations that were active by type of as-
sociation is given for the years 1930, 1937, 1944, and 1959 in
Table 2. While there was a marked decrease in the number of
citrus and truck crop cooperatives, there was a big increase in
the volume of business handled by these cooperatives. Actually,
some associations chartered never operated.


TABLE 2.-NUMBER OF FLORIDA COOPERATIVES ACTIVE IN 1930, 1937, 1944,
AND 1959, BY COMMODITY TYPE.

SLivestock and
Year Citrus Truck Livestok Farm Miscellaneous Total
II Crop Products Supply
1930 91* 52** 17t 1$ 16tt 177
1937 82 26 16 11 44 179
1944 57 19 5 9 24 114
1959 48 26 13 20 53 160

Two associations not incorporated.
** Twelve associations not incorporated.
t Eight associations not incorporated.
$ Not incorporated.
ft One association not incorporated.
Miscellaneous associations include four foreign cooperatives, of which three marketed
peanuts, and one sold semen for artificial insemination of cattle.
SOURCE: Data for 1930, 1937, and 1944 from M. A. Brooker and H. G. Hamilton,
Farmers' Cooperative Associations in Florida. I, Status and Legal Phases (Gainesville,
Florida: Agricultural Experiment Station Bulletin 245, 1930), pp. 7-21. Supplement to
Bulletin 245, 1937. Supplement to Bulletin 245, 1944.

The services rendered by citrus associations include harvest-
ing and packing fresh citrus, processing of citrus fruit, grove
care service, production credit, and production supplies. Vege-
table associations are engaged primarily in packing and selling.
Livestock associations are primarily for selling at auction. Farm
supply associations handle the major production supplies such
as feed, fertilizer, fencing, and sprays, and some of them also
market grain, pecans, peanuts, and a few other commodities.






Florida Agricultural Experiment Stations


In recent years a number of citrus associations have been formed
to engage in bargaining.
Prior to 1909 there was no statute that specifically provided
for incorporating cooperatives. Up to that time they had been
incorporated under the state's general corporation law. In that
year the "Cooperative Marketing Act of 1909" was passed, and
it provided for incorporating associations without capital stock.
In 1917 a second cooperative marketing act was passed. This
act provided for chartering cooperatives with capital stock. How-
ever, this act was never used extensively. In 1923 a third statute
was passed which enabled cooperatives to incorporate either with
or without capital stock. The 1923 act was amended in part
and repealed in part by the Agricultural Cooperative Act of 1931.
Most of the cooperatives formerly operating under the 1909 act
have been re-incorporated under the 1931 act. The 1931 act
remains essentially the same to this day, except for a change
in recent years allowing for perpetual existence. Prior to 1959
the charter had to be renewed after 50 years of existence.

IMPORTANCE
In 1959, Florida ranked second among the states in volume
of fruits and vegetables marketed. Cooperatives, during the
past 40 years, have handled a significant share of the state's
volume of these and other commodities. In the 1958-59 season
Florida citrus cooperatives handled about two-fifths of the citrus
crop, about two-fifths of the milk, one-fifth of the truck crops,
and a significant portion of the livestock, tobacco, and eggs
(Table 3).
The volume of marketing, farm supply, and service business
done by Florida cooperatives during the 1958-59 season is given
in Table 4. The gross volume of business exceeded $350 million
in that season.3 The 160 associations operating in 1958-59 had
a membership of 25,656.4 The combined balance sheet of these
160 associations is given in Table 5. Their total assets were
$120,665,428.45, and the members' equity in these assets amount-
ed to $68,712,083.15 or 56.94 percent of the total. The sources
of credit for interest bearing investments are given in Table 6.

3 These volume of business, number of associations and total membership
figures do not include those for Production Credit Associations, Federal
Land Bank Associations, and Rural Electric Cooperatives, which most peo-
ple consider to be farmer cooperatives.
SIbid.







Florida Cooperatives


Many cooperative marketing associations in Florida have pre-
dominantly large volume producers as members. This is parti-
cularly true of the bargaining, processing, dairying, tobacco, and
truck crop associations (Table 7). The average sales per mem-
ber of four dairy distributing associations operating in 1959 was
$301,984.49, and these members had an average equity in the
assets of these associations of $51,616.12. The average sales
per members of the processing associations was $177,419.32, and
that of truck crops, $39,028.78.






TABLE 3.-PERCENTAGE OF FLORIDA'S MAJOR FARM COMMODITIES SOLD
THROUGH COOPERATIVES, 1958-59.

Volume Percentage
Commodity Sold by State Sold Through
Cooperatives Totals Cooperatives
Citrus:
Fresh (boxes) 11,095,755 28,332,040 39.2
Processed (boxes) 33,781,145 89,021,726 37.9
Total (boxes) 44,876,900 117,353,766* 38.2
Livestock:
Cows and calves (head) 57,918 503,300** 11.5
Hogs (head) 43,838 532,000** 8.2
Milk:
Distributing (gallons) 8,030,590 114,982,590 7.0
Market bargaining (gallons) 41,669,779 114,982,590 36.2
Total (gallons) 44,032,201t 114,982,590 38.3
Table eggs (dozen) 5,195,248 57,000,000$ 9.1
Tobacco-shade (pounds) 711,241 4,836,0001 14.7
Truck crops (dollars) 32,379,752 158,110,000tt 20.5

State totals for 1958-59 season do not include express shipments, interstate by-
products, and intrastate noncommercial.
** State totals for 1958 slaughter.
t Adjusted for duplication.
$ State totals for 1958 production.
ft Based on f.o.b. sales value for 1958-59.
SOURCE: State totals for citrus compiled from 1958-59 Season Annual Report, Citrus
Vegetable Inspection Division, p. 7. Other commodity totals compiled from Annual Statis-
tical Summary, Florida State Marketing Bureau, 1958-59 Season, pp. 187, 151, 157, 146, and 71.










TABLE 4.-MEMBERSHIP AND BUSINESS VOLUME OF FLORIDA MARKETING, FARM SUPPLY, AND
RELATED SERVICE COOPERATIVES, 1958-59 SEASON.*


Type of
Operation


Marketing:
Citrus
Dairy
Livestock
Table eggs
Tobacco
Truck crops
Miscellaneous
Total marketing
Farm supply:
Manufacturing
Retail
Total farm supply
Related service:
Citrus grove care
Miscellaneous service
Trade association
Foreign cooperatives
Grand total


Number Membership
in State


3,291
197
937
180
27
973
200
5,805

362
7,376
7,738


5 81
34 784
8 11,248
4 -
160 25,656t


Value of
Products
Marketed
1,000
Dollars

228,035
34,609
5,980
2,713
1,838
34,192
229
307,596


43
43


9,360
316,999


Farm
Supply
Sales
1,000
Dollars

5,782
20
107

3,783
6
9,698


10,690
6,530
17,220

681

2
27,601


Gross Net
Service Business Business
Revenue Volume Volume
1,000 1,000 1,000
Dollars Dollars Dollars


5,861
47



104
6,012


970
380
28
7,390


239,678
34,656
6,000
2,820
1,838
37,975
339
323,306

10,690
6,573
17,263

1,651
380

9,390
351,990


191,804
31,300
6,000
2,820
1,838
37,975
339
272,076

10,690
6,573
17,263

1,651
380

9,390
300,760


* Sales for five supply, eight truck crops, two dairy, and two miscellaneous marketing cooperatives are for fiscal year ending in 1958.
** One vegetable cooperative selling 20,694 head of livestock not included.
f Duplication in membership may exist in that numbers shown may be members in more than one cooperative.


I


I


-


I


I











TABLE 5.-CONSOLIDATED BALANCE SHEET FOR 130 FLORIDA FARMER COOPERATIVES, FISCAL YEAR ENDING 1959.*


Assets


Current assets:
Cash on hand and
on deposit
Note and accounts
receivable
Inventory
Other current assets
Total current
assets
Fixed assets:
Land
Buildings, machinery,
and equipment (net
after depreciation)




Total fixed
assets


Amount




$13,745,228.28

19,786,657.54
34,916,276.73
16,303,899.26

$84,752,061.81


$ 990,868.17


22,476,365.99


$23,467,234.16


Percent


70.24


19.45


Liabilities


Current liabilities:
Accounts payable
Notes payable to:
Members
Other
Accrued items
Other
Total current
liabilities
Fixed liabilities:
Mortgages payable to:
Banks
Other
Certificates of
indebtedness and
net worth items
approaching maturity
Other
Total fixed
liabilities


Amount



$23,767,784.95

813,628.38
9,985,005.26
1,332,807.77
7,314,219.86

$43,213,446.22


$ 3,450,060.65
1,976,911.04


Percent


0
3C
0
3.

35.81
5

c^.
re
%


139,885.65
3,173,041.74

$ 8,739,899.08













TABLE 5.-CONTINUED.


Liabilities


Amount Percent
I


Other assets:
Investments
Other cooperatives
Prepaid expenses
Other







Total other
assets
TOTAL ASSETS


$ 4,095,289.95
6,208,073.68
640,592.06
1,502,176.79


$ 12,446,132.48
$120,665,428.45


Current ratio
Membership equity to long-term debt
Membership equity to fixed assets


10.31
100.00


1.96:1
12.69:1
2.93:1


Net worth:
Capital stock:
Common
Preferred
Book credit in lieu
of stock or ctfs.
Patrons' equity ctfs.
Surplus and undivided
profits
Other:
Unallocated margins
and reserves
Total net worth
TOTAL LIABILITIES AND
NET WORTH


$ 2,105,698.17
4,814,104.85

10,314,509.74
18,056,291.68

3,350,765.83


30,070,712.88
$ 68,712,083.15

$120,665,428.45


l-t

*-t
Cl
N





56.94

100.00


0
c-^


r*.
Ol
5694 o


* Balance sheet for five supply, eight truck crops, two dairy, and two miscellaneous marketing cooperatives are for fiscal year ending 1958.


Assets


Amount
I


Percent








Florida Cooperatives


TABLE 6.-SOURCES OF INTEREST-BEARING CREDIT AND AMOUNT OF
BORROWED FUNDS OUTSTANDING AS EVIDENCED BY FINANCIAL
STATEMENTS, FLORIDA COOPERATIVES,
FISCAL YEAR ENDING 1959.*


Principal Sources


Number of
Associations
Using


Commercial banks
Banks for cooperatives
Bond issues
Individuals
Other cooperatives
Other lending institutions
Supply manufacturers
Certificates of indebtedness
Other sources
Total


Total Percent of
Amount Total Amount
Borrowed** Borrowed


$ 652,299
10,071,280
833,200
584,024
45,000
479,097
80,064
129,809
95,377
$12,970,150


5.0
77.7
6.4
4.5
0.4
3.7
0.6
1.0
0.7
100.0


Financial statements for five supply, eight truck crops, two dairy, and two miscellan-
eous marketing cooperatives were for fiscal year ending 1958.
** Amount represents loans outstanding at close of fiscal year on which records were
taken.



TABLE 7.-AVERAGE SALES PER MEMBER AND EQUITY PER DOLLAR OF SALES,
86 FLORIDA MARKETING COOPERATIVES, BY COMMODITY HANDLED
AND TYPE OPERATION,* 1958-59 SEASON.


Number Average
Type of in Membership Sales per
Operation State Member


Citrus:
Packinghouses 30
Processors 6
Bargaining 5


Dairy:
Distributing
Bargaining
Livestock
Poultry
Tobacco


2,972 $ 23,331.68
466** 177,419.32
458 86,902.84


4 33 301,984.49
2 164 150,504.75
3t 937 6,382.66
4 180 15,235.31
31 22 83,544.14


Truck crops 26 973 39,028.78


Miscellaneous


3 200 1,172.95


Average
Equity
per Member


$ 5,723.37
29,273.70
481.09


51,616.12
1,355.88
442.56
341.56
5,355.57
7,236.00
617.82


Equity
per Dollar
of Sales


$0.240
.210
.007


.170
.009
.040
.020
.050
.180
.530


* Includes sales of products marketed and supplies purchased.
** Membership includes 24 cooperatives and 15 corporations.
t One vegetable cooperative selling 20,694 head of livestock not included.
$ One association not included which began operation in 1959.







Florida Agricultural Experiment Stations


CITRUS COOPERATIVES
In the 1958-59 season, 48 citrus associations were in opera-
tion in Florida. The type of operation and the nature of the
membership are given in Table 8. Many citrus groves in Flor-
ida are owned by nonresidents. In the case of the nonresident
member and many of the resident members, the association
makes all or most of the marketing and grove caretaking de-
cisions. About 60 percent of the associations vote on the basis
of one member, one vote; about 30 percent (those incorporated
under general corporation law) vote one share of stock, one vote;
and the remainder vote on a patronage basis.
Early in the history of citrus cooperatives, they were or-
ganized on a noncapital stock basis. But the trend has been
definitely away from the noncapital stock to the capital stock
basis of organization.
The volume of farmer cooperative business by type of service
rendered and type of cooperative operation is shown in Table 9.
The total volume of business done by packing associations ranged
from $275,250 to $5,096,710 and averaged $1,744,000; the pack-
ing and grove caretaking from less than $500,000 to $5,043,679,
averaging $2,400,000; processing from $4,299,098 to $21,940,757,
averaging $13,567,000; and the bargaining from $441,094 to
$24,910,999, averaging over $11,000,000 (Table 10).
Citrus associations are much larger today than in the past.
Many of the smaller associations of the past have ceased to oper-
ate, and most all of the others have increased in size and have
extended their services beyond fresh fruit packing operations.
There were 56 citrus associations in 1927. All of these were
fresh fruit packing associations, and only in a few cases were
grove caretaking services rendered. By 1940 the assets of the
average citrus associations had more than doubled (Table 11).
By 1959 the packing associations had about six times the assets
of the associations operating in 1927. The assets of packing
associations in 1927 averaged only $74,141.46. The packing-
grove-caretaking associations in 1959 had, on the average, total
assets of $1,190,728.84 (Table 12). The average assets of proc-
essing cooperatives operating in 1959 amounted to $8,358,392.13.
Most of the processing associations are federations whose mem-
bers and real owners are the local packing and grove caretaking
associations and in some cases individual growers and corpora-
tion groves large enough to have their own fresh fruit packing-
houses.












TABLE 8.-MEMBERSHIP IN FLORIDA CITRUS COOPERATIVES, BY TYPE OPERATION, 1958-59 SEASON.


Farm Members Farmer Others
Type of Number Nonresident Cooperative Who Are Total
Operation of In State Members Members*
Assns. Total Avg. per Total Avg. per Total Avg. per Total Avg. per Total Avg. per
Number Assn. Number Assn. Number Assn. Number Assn. Number Assn.

Packing 11 402 36.5 49 4.4 451 40.9


96.7
71.2
124.8


7.4 44
22.0 -
70.2 805


-`* 32
4.3 13
**


2.2
2.2


2,521
466
658


- 81
2.0 67
--** 4,244


Packing and
grove
caretaking
Processing
Bargaining
Grove
caretaking
Other
Total


1,837
427
624

37
44
3,371


* Others who are members include corporations and intermediate hand ers who are not producers.
** Averaged less than one.


132.7
77.7
131.6

16.2
33.5
88.4
















TABLE 9.-VOLUME OF BUSINESS OF FLORIDA CITRUS ASSOCIATIONS, BY TYPE OPERATION, 1958-59 SEASON.
Number I
Type of of Marketing Farm Grove Other Total Average
Operation Assns. I I Supplies Care Services
Number Dollars Dollars Dollars Dollars Dollars Dollars
Packing 11 19,188,024 60,311 19,248,335 1,749,849
Packing
and grove caretaking 19 45,644,466 4,448,956* 4,212,816 203,227 54,509,465 2,868,919
Processing 6 81,404,837 1,272,568 1,445,306 84,122,711 14,020,452
Bargaining 5 57,182,069 57,182,069 11,436,414
Grove caretaking 5 680,775* 970,358 1,651,133 330,227
Other 2 24,615,522 24,615,522 12,307,761
Total** 48 228,034,918 6,462,610 6,628,480 203,227 241,329,235 5,027,692

Represents supplies and materials such as fertilizer and insecticides used and charged to members in grove caretaking operations.
** Duplication exists in totals in that when the same fruit is handled by two cooperatives, the value is counted twice.








Florida Cooperatives


TABLE 10.-DISTRIBUTION OF FLORIDA CITRUS COOPERATIVE PACKINGHOUSES,
PROCESSING PLANTS, AND MARKET BARGAINING ASSOCIATIONS,
BY SPECIFIED AMOUNTS OF NET SALES, 1958-59 SEASON.*

Type Operation

Range of Packing Packing and
Net Sales Grove Caretaking
(1,000 Dollars) Number Average Number Average
of Cumulative Net of Cumulative Net
Assns. Percent Sales Assns. Percent Sales
Number Percent Dollars Number Percent Dollars
500 and less 1 9.1 275,250 3 15.8 398,943
501- 1,000 3 36.4 812,729 2 26.3 754,455
1,001 1,500 3 63.7 1,182,949 1 31.6 1,408,217
1,501- 2,000 3 47.4 1,793,016
2,001- 2,500 1 72.8 2,367,044 1 52.7 2,289,732
2,501- 3,000 2 91.0 2,730,991 4 73.7 2,838,987
3,901- 3,500 -
3,501- 4,000 1 79.0 3,811,866
4,001- 4,500 1 84.3 4,082,000
4,501- 5,000 2 94.8 4,784,118
5,001 10,000 1 100.0 5,096,710 1 100.0 5,043,679
10,001 15,000 -- -
15,001- 20,000 -
20,000 and over -
Total 11 19,188,024 19 45,644,466
Average 1,744,366 2,402,340

Includes only sales for citrus fruit and does not include supply sales and grove care-
taking income.


TABLE 10.-CONTINUED.

Type Operation
Range of
Net Sales Processing I Bargaining
(1,000 dollars) Number Average Number Average
of Cumulative Net of Cumulative Net
Assns. Percent Sales Assns. Percent Sales
Number Percent Dollars Number Percent Dollars
500 and less 1 20.0 441,094
501- 1,000 -
1,001- 1,500 -
1,501- 2,000 -
2,001- 2,500 1 40.0 2,024,106
2,501- 3,000 -
3,001- 3,500 -
3,501- 4,000 -
4,001- 4,500 1 16.7 4,299,098 -
4,501- 5,000 1 33.4 4,757,553 1 60.0 4,892,872
5,001- 10,000 -
10,001 15,000 1 50.1 12,330,000 -
15,001 20,000 2 83.4 18,955,126 -
20,000 and over 1 100.0 21,940,757 2 100.0 24,910,999
Total 6 81,404,837 5 57,182,069
Average 13,567,473 11,436,014















TABLE 11.-AVERAGE BALANCE SHEET FOR FLORIDA CITRUS COOPERATIVE ASSOCIATIONS, YEARS ENDING JUNE 30.

Years I 1927 I 1930 1 1937 | 1940
Number of Associations I 56 I 61 | 61 1 50


Assets


Current assets:
Cash
Notes and accounts receivable
Inventory
Other

Total current assets

Fixed assets
Investments
Other assets

Total assets


$10,190.94
5,571.71
345.70
3,590.45

$19,698.80

$44,661.29
8,031.48
1,749.89

$74,141.46


$ 11,737.83
10,132.32
2,987.84
1,487.48

$ 26,345.47

$ 60,553.59
12,118.20
9,621.49

$108,638.75


$ 13,101.66
22,055.06
8,377.14
112.75

$ 43,646.61

$ 75,981.01
10,362.69
8,974.26

$138,964.57


$ 11,
43,
12.


$ 68:

$ 75
23
2

$168


4-

s-
,924.88
,218.48
,460.92
474.13

,078.41

157.38
,155.50
,447.85

,839.14


"q

c^.
a,
?s











TABLE 11.-CONTINUED.

Liabilities and Members' Equity
Current liabilities:
Accounts payable $ 1,587.73 $ 1,668.56 $ 7,899.79 $ 12,570.97
Notes payable 6,760.79 3,951.82 6,265.55 20,976.16
Other 799.99 572.00 2,197.76 4,014.38
Total current liabilities $ 9,148.51 $ 6,192.38 $ 16,363.10 $ 37,561.51
Fixed liabilities: .
Bonds $ 4,730.92 $ 836.07 $ 1,556.39 $ 1,531.20
Mortgages 6,260.24 25,434.95 26,437,97 21,993.42
Other 4,522.11 9,384.93 1,587.08 1,405.38
Total fixed liabilities $15,513.27 $ 35,655.95 $ 29,581.44 $ 24,930.00
Members' equity:
Common stock -- $ 16,720.27 $ 16,875.01
Preferred stock -- 11,957.46 24,807.54
Certificates of indebtedness $27,559.44 $ 33,805.98 28,407.53 22,375.69
Book credit in lieu of stock and
certificates 4,486.82 6,435.85
Surplus and reserves 21,920.24 32,984.44 31,447.95 35,853.54

Total members' equity $49,479.68 $ 66,790.42 $ 93,020.03 $106,347.63

Total liabilities and members' equity $74,141.46 $108,638.75 $138,964.57 $168,839.14









SHEETS FOR CITRUS ASSOCIATIONS, BY TYPE OPERATION, FISCAL YEAR ENDING 1959.


Type Operation


Assets


S 10
Packing


19 Packing
and Grove
Caretaking


5
Processing


5
4 Grove
Bargaining Caretaking


Current assets:
Cash on hand and on deposit
Notes and accounts receivable
Inventory
Other
Total current assets

Fixed assets:
Land
Buildings, machinery
equipment (net)

Total fixed assets

Other assets:
Investments
Investments in other cooperatives
Prepaid expenses
Other

Total other assets

TOTAL ASSETS


$180,027.31
50,322.71
27,902.07
1,137.87


$ 192,651.87
321,925.48
54,236.88
12,801.97


$ 616,123.86
750,733.36
4,610,240.95
137,064.10


$ 56,955.88
4,762,276.60
2,084,225.41


$ 26,870.41
58,038.34
14,859.00


$259,389.96 $ 581,616.20 $6,114,162.27 $6,903,457.89 $ 99,767.75


$ 4,997.07 $ 14,046.02 $ 37,937.75 --
72,770.36 248,462.34 1,947,158.25 $ 36,072.27

$ 77,767.43 $ 262,508.36 $1,985,096.00 $ 36,072.27


$ 29,248.23 $ 93,857.17 $ 86,375.85 $ 10,500.00 $ 15,006.34
94,087.75 215,789.59 68,139.49 59,340.00 -
5,090.38 8,288.57 39,569.29 571.32 894.33
7,472.40 28,668.95 65,049.23 1,774.05 -

$135,898.76 $ 346,604.28 $ 259,133.86 $ 72,185.37 $ 15,900.67

$473,056.15 $1,190,728.84 $8,358,392.13 $6,975,643.26 $151,740.69


I


TABLE 12.-AVERAGE BALANCE












TABLE 12.-CONTINUED.

Type Operation
Liabilities 19 Packing 5
10 and Grove 5 4 Grove
Packing Caretaking Processing Bargaining Caretaking


Current liabilities:
Accounts payable
Notes payable
Accrued items
Other
Total current liabilities

Fixed liabilities:
Mortgages payable
Certificates of indebtedness
and net worth items approaching
maturity
Other

Total fixed liabilities


$121,411.25
3,710.00
2,841.17


$131,701.24
71,397.72
21,024.38


$2,377,210.44
1,475,307.78
98,549.99


$6,896,858.32

848.07


$24,571.42

2,863.82


~1, ,O.- 4,1.1i,035,502.8-_ -
$127,962.42 $318,283.95 $4,986,571.08 $6,897,706.39 $27,435.24


$ 37,413.94 $ 602,943.91

3,368.42 -
$ 61,348.57 102,917.05 110,825.44 $ 249.30

$ 61,348.57 $143,699.41 $ 713,769.35 $ 249.30











TABLE 12.-CONCLUDED.


Net Worth


10
Packing ]


Type Operation

5
Processing


5
4 Grove
Bargaining 1 Caretaking


Net worth:
Capital stock:
Common
Preferred
Book credit in lieu of
stock or certificates
Patrons' equity certificates
Surplus and undivided profi

Other

Total net worth


$ 29,868.36 $ 10,966.06 $ 29,779.22 $ 1,312.50 $ 11,025.00
7,870.59 148,354.75 155,620.00 59,625.00 -

29,634.79 143,900.03 178,338.03 6,484.48 25,391.39
59,096.13 192,645.38 2,242,135.95 10,514.89 10,272.38
ts 14,794.27 63,798.06 35,888.28 77,367.38

142,481.02 169,081.20 16,290.22

$283,745.16 $ 728,745.48 $2,658,051.70 $ 77,936.87 $124,056.15


TOTAL LIABILITIES
AND NET WORTH


$473,056.15 $1,190,728.84


2.03:1

3.65:1
23.15


1.82:1
19.47:1
2.78:1
9.15


$8,358,392.13


1.23:1
4.40:1
1.34:1
6.40


$6,975,643.26


1.00:1


$151,740.69 5


3.64:1 |

3.44:1


19 Packing
and Grove
Caretaking


Current ratio
Net worth to long-term debt
Net worth to fixed assets
Turnover of fixed assets







Florida Cooperatives


Sales
At one time more than 50 percent of Florida citrus fruit was
sold at terminal city auctions, and some cooperatives sold almost
100 percent of their citrus at such auctions. Today the major
part of the fresh citrus sales are made on a private-sale basis, and
some cooperatives sell none of their fruit at terminal auctions
(Table 13). Most of the private sales are made directly to the
buyers without going through brokers, and the manifests are
made to the buyers' specifications (Tables 14 and 15).

TABLE 13.-SALES OUTLETS FOR 11 FLORIDA CITRUS SALES ORGANIZATIONS,
1958-59 SEASON.

Firm Auction Private Sales I Commission
S Chain I Other
Percent Percent Percent Percent


Represents sales for 19 cooperative packinghouses plus other members of Seald-Sweet
Sales, Inc.

TABLE 14.-METHODS OF HANDLING SALES TO CHAIN STORES, 11 FLORIDA
FRESH FRUIT SALES ORGANIZATIONS, 1958-59 SEASON.


Firm Chain
Fill Order I Find Buyer for Manifest
Direct I Broker I Direct I Broker
Open I Open Open Open I
Account Draft Account Draft Accounti Draft Accountl Draft
Percent Percent Percent Percent Percent Percent Percent Percent
1 100 -
2 75 25 -
3 89 11 -
4 94 6 -
5 10 76 14 -
6 20 80 -
7 100 -
8 32 27 14 27 -
9 50 33 17 -
0 100 -
1 100 -


1
1







Florida Agricultural Experiment Stations


TABLE 15.-METHODS OF HANDLING PRIVATE SALES TO FIRMS OTHER THAN
CHAIN STORES, 11 FLORIDA FRESH FRUIT SALES COOPERATIVES,
1958-59 SEASON.

Other Private Sales
Fill Order I Find Buyer for Manifest
Firm Direct | Broker Direct I Broker
Open Open Open I Open
Accounts Draft Account Draft Accountl Draft [Account Draft
Percent Percent Percent Percent Percent Percent Percent Percent
1 70 22 8 -
2 28 72 -
3 58 28 14 -
4 87 13 -
5 15 55 1.5 12 15 1.5
6 100 -
7 73 12 10 5 -
8 50 25 9 16 -
9 51 13 36 -
10 20 80 -
11 36 27 18 9 9

In most cases, sales are made on an open-account basis rather
than drawing a bank draft on the buyer. The processing asso-
ciations, as a general rule, sold their products by their own sales
staff without the use of brokers. However, one used brokers
for more than 50 percent of its sales (Table 16).

TABLE 16.-PERCENTAGE OF PRODUCTS SOLD THROUGH BROKERS, FIVE
FLORIDA CITRUS PROCESSING PLANTS, 1958-59 SEASON.

Percent of Product Percent of Product
Firm Sold by Brokers Sold by Own Staff
Concentrate I Single-Strength I Concentrate I Single-Strength
1 33 75 67 25
2 25 40 75 60
3 10 90 -
4 55 45 -
5 100 100

In all cases, processed citrus products were packed under both
the cooperative's label and buyers' labels. However, a larger
percent was packed under buyers' labels (Table 17).

Pooling Arrangements
It is necessary for most of the expenses incurred in perform-
ing services for citrus growers to be pooled if the cooperative
is to operate efficiently. There are also advantages in pooling
the returns of fruit. Some of these are: (1) pooling spreads







Florida Cooperatives


TABLE 17.-PERCENTAGE OF PRODUCTS PACKED UNDER FIRM'S OWN LABEL
VERSUS BUYER'S LABEL FOR FIVE FLORIDA COOPERATIVE PROCESSING PLANTS,
1958-59 SEASON.

Percent of Product Percent of Product
Firm Packed Under Own Label Packed Under Buyer's Label
Concentrate I Single-Strength I Concentrate I Single-Strength
1 75 60 25 40
2 50 25 50 75
3 5 95 -
4 25 75 -
5 5 5 95 95


risk, (2) pooling enables management to pack a more uniform
quality product, (3) pooling enables a more uniform flow of
fruit to the different markets, and (4) pooling may assist in
development of new markets. However, it is difficult to pool
and maintain absolute equity among the members. Perhaps
no one arrangement is best for all associations. The pooling
arrangements used in 1958-59 by citrus cooperatives are given
in Tables 18, 19, 20, 21, 22, and 23. The trend over the years has
been away from short-period pools to the seasonal pool. The
seasonal pool gives management more freedom in the sale of
fruit and probably enables an association to operate at lower
costs.

TABLE 18.-ORANGE POOLING ARRANGEMENTS OF 27 FLORIDA CITRUS
COOPERATIVES, 1958-59.

Seasonal, by variety, grade, and size ............................... ........................ 15
Seasonal, early and midseason lumped, Valencias and Temples pooled
separately, by grade and size ................. ...................................... 1
Seasonal pools for Pineapples, Temples, and Valencias by grade
and size. Hamlins, Parson Browns, and Navels pooled in
multiple pools, variable time lengths, by grade and size ........................ 4
Seasonal, by variety and weight box (90 pounds per box) ...................... 1
Two pools: first pool for 15 days; second from close of first pool to
end of the season, by variety and grade, no size ...................................... 1
Variable length pools, by variety, grade, and size .................................... 1
Monthly, by early, midseason, and late, grade and size,
on packed-box basis ..................................................... .................... 1
October, daily pools; November 1 through remainder of season,
15-day pools, by variety, grade, and size ................................... ......... 1
Two-week pools through December, monthly thereafter through
season, by variety, grade, and size ...................................... ....... 1
Weekly pools through November, biweekly thereafter,
by variety, grade, and size ........................................ .... ................. 1







Florida Agricultural Experiment Stations


TABLE 19.-GRAPEFRUIT POOLING ARRANGEMENTS OF 27 FLORIDA CITRUS
COOPERATIVES, 1958-59.

Seasonal by variety, grade, and size .......................................... ... 17
Two-week pools to December 31, then seasonal,
by variety, grade, and size ................................................ 1
Four one-week pools, then seasonal, by variety, grade, and size .............. 1
Monthly pools, by variety, grade, and size ...................... .......... 2
Seasonal, by variety, Pinks and Reds separate; all others
lumped together, field-box basis, no size ........................................ ......... 1
One 30-day grapefruit pool at beginning of season; seasonal
thereafter, with Marsh Seedless, and Reds and Pinks
pooled separately; all others lumped together,
grade and size, field-box basis ....... ........................................ 1
Seasonal pool for white and pink grapefruit by grade and size ................ 1
Daily pools through October, 15-day pools thereafter,
by variety, grade, and size ...................................... .................... 1
Monthly pools until January 1, seasonal thereafter,
by variety, grade, and size ...................................... ........................ 1
Seasonal pool with Marsh Seedless separate; Reds and Pinks
by growers account, picked-box basis ......................................................... 1






TABLE 20.-TANGERINE POOLING ARRANGEMENTS OF 25 FLORIDA CITRUS
COOPERATIVES, 1958-59.

Seasonal, by variety, grade, and size ...................... .......... ............ .. 21
Two-week pools, by variety, grade, and size to January 1;
one pool for rem ainder of season .............................................................. 1
Monthly, by variety, grade, and size ........................... ....................... 2
Two pools, by variety, grade, and size. First pool to January 1;
second, January 1, through remainder of season .................................... 1







Florida Cooperatives


TABLE 21.-ORANGE POOLING ARRANGEMENTS FOR CANNERY FRUIT OF 25
FLORIDA CITRUS COOPERATIVES, 1958-59 SEASON.

Two pools: first pool runs from December 1 through February 28;
second pool from March 1 to end of season on pound-solids basis ........ 9
Yearly pool: early-season oranges pooled separately, midseason
and late oranges together, juice and solids basis ............................... 2
Seasonal pool, by variety, weight-box basis .................................. 5
Seasonal pool to include all early and midseason oranges;
separate pool to include all late oranges, weight-box basis .................. 1
Three pools: first pool for early-season oranges paid on box basis;
second pool for midseason oranges, juice and.solids basis;
and third pool for late-season oranges on juice and solids basis ............ 2
Seasonal pools for early, midseason, and late oranges, all paid
on pound-solids basis .................................. ....... ....................... 1
Four pools: two pools, one to include all early and midseason oranges,
one to include all late oranges going into concentrate, to be
paid on pounds-solids basis. One pool for all single-strength
juice, one pool for all chilled juice to be paid on weight-box basis ........ 1
Three pools: first pool from beginning of season until November 30;
second pool from December 1 through February 28; third pool
from March 1 until end of season ....... .......................... ......... 2
Two pools for packinghouse eliminations: one from beginning
of season through February 28; one from March 1 until
end of season. Direct fruit paid on pound-solids or
gallons by individual delivery .................................... ...................... 1
Two pools: one to include all direct-to-cannery fruit by variety;
one to include all packinghouse eliminations, by variety .................... 1




TABLE 22.-GRAPEFRUIT POOLING ARRANGEMENTS FOR CANNERY FRUIT OF
24 FLORIDA CITRUS COOPERATIVES, 1958-59 SEASON.

One yearly pool, by variety, weight-box basis ........................................ 15
Two pools: one to include all juice grapefruit; one to include
all direct cannery white seeded grapefruit ............................................ 1
Two pools: one to include all white grapefruit; one to include
all Pinks and Reds ............................................................................. ............... 3
Two pools; one to include all juice grapefruit; one to include
all sections ...................................................................... .............................. 5







Florida Agricultural Experiment Stations


TABLE 23.-POOLING PRACTICES OF FOUR FLORIDA CITRUS PROCESSING
COOPERATIVES, 1958-59 SEASON.
| Length of Pool I Unit of Account I Advances
Firm I Single- Single- I Single-
Concentratel Strength Concentrate Strength Concentratel Strength

.................................... ..... Oranges ..................... ........ .......
1 Seasonal Seasonal
by variety by variety Solids Gallons Yes Yes
2 Oct. through
Feb.; March
to end of
season Season Solids Gallons Yes Yes
3 Season -Solids No standard -
practice
4 Oct. through
Jan.; Feb. to
end of
season -Solids Yes

............................. .... .......... Grapefruit ...................................... ..
1 Season Season Box Box Yes Yes
2 Season Season Solids Gallons Yes Yes
3 Season Season Box Box No standard Yes
practice
4 Season Season Pounds Pounds Yes Yes



Florida Citrus Exchange

The Florida Citrus Exchange is a federated association hav-
ing, in 1958-59, 19 cooperative association members, 12 indi-
vidual-grower-packinghouse members, and 4 corporate-grower-
packinghouse members. The Florida Citrus Exchange was or-
ganized in 1909, and over the years has made an important con-
tribution in establishing marketing policies beneficial to grow-
ers, and in handling from 20 to 35 percent of the state's volume
of fresh fruit sales. The Exchange does no packing; however,
through two subsidiary cooperative corporations, it has handled
packing supplies for local associations, and has been a dominant
factor in extending credit to both packing associations and to
individual growers.






Florida Cooperatives


Factors Associated with Efficiency

The success of cooperative effort, perhaps, is associated with
a few major factors and many small factors. Most observers
of cooperatives have attributed success of a cooperative to such
things as cooperative spirit and loyalty to the association. It is
likely that cooperative spirit and loyalty to the cooperative are
the result of something more fundamental. The facts reveal
that there is today and has been in the past a great variation
in the size of cooperatives. There has also been a wide variation
in the percent of assets owned by the members. It is probable
that these two factors, size of business and percent of members'
equity in the assets of the association, are the overriding forces
making for success or failure of cooperatives.
There are two commonly used measures of size: (1) volume
in boxes of fruit handled and (2) volume in dollar sales. A
better measure is to combine the volume in terms of boxes with
the method of handling. The index of size given below measures
size by combining volume in terms of boxes with the intensity
of the service on the fruit. If it costs $1.00 to pack a box of
grapefruit and $1.50 to pack a box of oranges, then the index
would reflect in size a volume of 200 boxes of oranges as being
equivalent to 300 boxes of grapefruit. This reflects the differ-
ence in intensity of the service to kinds of fruit, kinds of con-
tainer, and kinds of production service according to size (Table
24). It will be observed that one association had a size index
of only 19, while one had a size index of 266. Thus the largest
association was about 14 times the size of the smallest.

TABLE 24.-INDEX OF SIZE FOR 27 FLORIDA CITRUS ASSOCIATIONS OPERATING
FRESH FRUIT PACKINGHOUSES DURING THE 1958-59 SEASON.

Size Index Size Index Size Index

266 110 52
252 94 50
206 90 51
199 83 48
199 79 34
135 75 28
133 72 27
125 72 23
115 63 19







Florida Agricultural Experiment Stations


In order to have a common denominator to compare cost, a
cost index was prepared. This index is given in Table 25. It
will be observed that on a uniform basis one association was
performing the service at 77 percent of the average cost, while
another was operating at 133 percent of the average cost. The
relation of the size index to the cost index is given in Table 26
and Figure 1. The relation of volume to the cost of packing
citrus fruit from 1925-26 to 1939-40 is given in Figure 2. On
the average the cost decreases as the volume of fruit handled
increases. Furthermore, there was much less variation in the
cost for associations with more than 300,000 boxes than for as-
sociations with less than 50,000 boxes.


TABLE 25.-INDEX OF COST FOR 27 FLORIDA CITRUS ASSOCIATIONS OPERATING
FRESH FRUIT PACKINGHOUSES DURING THE 1958-59 SEASON.

Cost Index Cost Index Cost Index

77 97 102
86 98 102
88 99 104
92 99 104
92 99 106
94 100 106
95 101 106
96 102 124
96 102 133



TABLE 26.-COMPARISON OF INDEX OF SIZE WITH INDEX OF COST, 27 FLORIDA
CITRUS ASSOCIATIONS OPERATING FRESH FRUIT PACKINGHOUSES,
1958-59 SEASON.

Index of Size Number of Average Index
Associations of Cost
0- 25 2 117
26- 50 6 105
51- 75 5 99
76-100 4 98
101-125 3 99
126-150 2 96
151-175 0 -
176-200 2 98
201-225 1 86
226-250 0 -
251-275 2 87







Florida Cooperatives


Cost Index
160I

140-


60j-


I I I I I I I


I I I I I I


20 40 60 80 100 120 140 160 180 200 220
Size Index


240 260 280


Fig. 1.-Relationship between index of size and index of cost, 27 Florida
citrus associations operating fresh fruit packinghouses during the 1958-59
season.


Associations with large volumes of fruit returned to growers
higher prices than did small volume associations (Figure 3).
The index reflects the difference in price of fruit among coopera-
tives when adjusted for variety and kind of fruit.
Large associations, on the average, borrow larger amounts
of money than small. The relation between the size of loan and
interest rate paid is given in Table 27. Associations with large
loans had interest rates of 67 percent of the average, while those
with small loans paid interest rates 23 percent higher than the
average.


TABLE 27.-RELATION OF SIZE OF LOAN TO COST OF SHORT-TERM CREDIT
FOR 35 FLORIDA CITRUS COOPERATIVE ASSOCIATIONS FOR THE SEASON 1939-40.

1 Average Interest Percent of
Loan Group Number of Size of Rate Average
SAssociations Loan (percent) Rate
Under $15,000 14 $ 7,146.43 5.3 123
$15,000 to $49,999 13 24,358.46 4.1 95
$50,000 and over 8 98,932.94 2.9 67
Total or average 35 $34,519.24 4.3 100


_ I 1 I I I I I I I I I


120 -

100-








Florida Agricultural Experiment Stations


Packing Cost
per Box





$1.80


1.20 I-


1.00 [-


.80 F-


.60 -


.40 -


Under 25 25-49 50-99 100-199
Volume (000) Boxes)


200-299 300 & over


Fig. 2.-Relation of volume of fruit handled per association to cost of
packing oranges in standard boxes, Florida Citrus Cooperatives, seasons
1925-26 to 1939-40, inclusive.


w-



.....


"":'
' !iiii:
o..







Index


140





120






100
1: : .. ::




... ......:






60- :.






40 .





20





0






-20





-40






-60 _
Under 25 25-49 50-99 100-199 200 & over
Volume (000 Boxes)

Fig. 3.-Relation of box volume to grower price index, Florida citrus
cooperative associations (other than East Coast), 1925-26 and 1939-40,
inclusive.






Florida Agricultural Experiment Stations


The amounts of members' equity and the percent of the mem-
bers' equity in the assets of the association were also related
to interest rates paid by the association (Tables 28 and 29). This
was because the associations with the largest amounts of mem-
ber equity and those with the higher proportions of equity owned
by members also tended to be those which borrowed the larger
amounts of money and therefore obtained the lowest interest
rates.


TABLE 28.-RELATION OF AMOUNT OF MEMBERS' EQUITY TO COST OF SHORT-
TERM CREDIT FOR 35 FLORIDA CITRUS COOPERATIVE ASSOCIATIONS
FOR THE 1939-40 SEASON.
Average Interest Percent of
Members' Equity Number of Members' Rate Average
Groups Associations Equity (percent) Rate
Under $40,000 13 $ 26,324.21 5.1 119
$40,000 to $99,999 11 58,149.05 4.4 102
$100,000 and over 11 290,188.52 3.3 77
Total or average 35 $119,255.09 4.3 100


TABLE 29.-RELATION OF PERCENT OF MEMBERS' EQUITY TO COST OF SHORT-
TERM CREDIT FOR 35 FLORIDA CITRUS COOPERATIVE ASSOCIATIONS
FOR THE 1939-40 SEASON.
Percent Average Per- IInterest Percent of
Members' Equity Number of cent Members' Rate Average
Groups Associations Equity (percent) Rate
50 and under 8 28.5 4.7 109
50.1 to 75 21 60.6 4.2 98
75.1 and over 6 90.1 4.1 95
Total or average 35 44.4 4.3 100


Citrus associations with a large volume of business had
more favorable financial ratios than those with a small volume.
The current ratio (ratio of current assets to current liabilities)
of associations with less than 500,000 boxes was 2.4:1; for those
associations of over 1,000,000 boxes the current ratio was 9.4:1.
Members of the small-volume group associations owned 54 per-
cent of the assets; the members of the large-volume associations
owned 70 percent of the assets. The net worth to fixed assets
ratio for small-volume associations was 2.2:1, and for large-
volume associations it was 4.2:1 (Table 30).







Florida Cooperatives


TABLE 30.-DISTRIBUTION OF FINANCIAL RATIOS OF 29 FLORIDA CITRUS
PACKINGHOUSE COOPERATIVES, BY VOLUME OF FRUIT HANDLED, 1958-59.
Number
Volume of Arithmetic Range
Associations Average IHigh | Median I Low
............Ratio of Current Assets to Current Liabilities.............
1,000
Boxes Number Ratio Ratio Ratio Ratio
Less than 500 12 2.40:1 11.54:1 1.60:1 .95:1
500 1,000 7 3.54:1 12.63:1 1.48:1 .97:1
Over 1,000 10 9.41:1 69.05:1 2.13:1 1.23:1
..................Percentage of Net Worth to Total Assets................
1,000
Boxes Number Percent Percent Percent Percent
Less than 500 12 54 85 53 22
500-1,000 7 62 96 69 21
Over 1,000 10 70 96 77 28
......................Ratio of Net W orth to Fixed Assets.......... .....
1,000
Boxes Number Ratio Ratio Ratio Ratio
Less than 500 12 2.22:1 4.60:1 1.92:1 .93:1
500-1,000 7 4.06:1 8.69:1 4.20:1 .85:1
Over 1,000 10 4.19:1 10.08:1 3.30:1. 1.71:1


TRUCK CROP COOPERATIVES

Truck crops are the second most important group of com-
modities in Florida. Cooperatives have probably had more suc-
cess in marketing these crops in Florida than in any other state.
The volume of business for truck crop cooperatives during
the 1958-59 and 1929-30 seasons is shown in Table 31. These
cooperatives, on the average, handled about seven times as large
a volume in 1958-59 as in 1929-30. About 70 percent of the
truck crop cooperatives in 1929-30 had sales of $100,000 or less,
but in 1958-59 only 8 percent had sales of $100,000 or less. In
addition to the sales of members' products, the associations in
1958-59 purchased supplies for their members up to an amount
of $151,319 per association.
Truck crop associations, like citrus, were originally organized
without capital stock. All truck crop associations voted one
member, one vote. Sixty-four percent of the net margins of
these associations was returned to members on a patronage
basis, and the rest was credited to the members' accounts. The
amount of the net margins or profits averaged $190,209 per as-
sociation or $653.52 per member for the 1958-59 season.







Florida Agricultural Experiment Stations


TABLE 31.-DISTRIBUTION OF FLORIDA TRUCK-CROP MARKETING
COOPERATIVES, BY SPECIFIED AMOUNTS OF NET SALES,
1958-59 AND 1929-30 SEASONS.*
1958-59 Season I 1929-30 Season
Range of Number of Average Number of Average
Net Sales Associations Net Sales Associations Net Sales
1,000
Dollars Number Dollars Number Dollars
100 and less 2 21,797 22 20,835
101- 500 6 289,523 4 185,115
501- 1,000 6 651,682 2 752,240
1,001 1,500 1 1,278,153 1 1,083,086
1,501 2,000 3 1,807,305 2 1,574,745
2,001 2,500 2 2,222,840** -
2,501 3,000 -
3,001 3,500 2 3,278,408 -
3,501 4,000 1 3,547,400 -
4,001 4,500 -
4,501 5,000 -
5,001 and over 2 5,462,803 -
Total 25t 37,974,567 31 6,935,886
Average 1,518,983 223,738

Includes farm products sold and supplies purchased by farmers through cooperatives.
** Includes one vegetable association selling 20,694 head of livestock.
t One association organized in 1959 not included.

The financial status of truck crop associations is given for
the years 1930 and 1959 in Table 32. This shows a striking
comparison in that the average assets of truck crop associations
were about 16 times as large in 1959 as in 1930.
Only 10 of 26 truck cooperatives operated pools. Five of them
used daily pools; three, weekly pools; one, a seasonal pool; and
one, a variable pool usually running a few days in a week. As-
sociations not pooling handled the product on an account-sale
basis.

DAIRY ASSOCIATIONS

There were four distributing co-ops and two bargaining co-ops
among the milk marketing associations operating in the 1958-59
season. The volumes of sales of these cooperatives are given
in Table 33.
On the average, the dairy associations are in good financial
condition as revealed by their average balance sheet shown in
Table 34. The distributing co-ops had $6.16 of sales for each
dollar invested in physical facilities and $3.52 of sales for each
dollar of assets. The services rendered by distributing co-ops







Florida Cooperatives


TABLE 32.-AVERAGE BALANCE SHEETS OF FLORIDA TRUOK CROP MARKETING
COOPERATIVES, 1958-59 AND 1929-30 SEASONS.

S 1958-59 1929-30
Number of Associations I 25 51
Current assets:
Cash $110,113.35 $ 2,894.57
Notes and accounts receivable 107,822.72 11,219.94
Inventories 29,390.77 1,105.30
Other 8,907.96 296.77
Total current assets $256,234.80 $15,516.58
Fixed assets:
Land $ 7,762.67 $ 6,239.83
Building and equipment 132,713.98 -
Total fixed assets $140,476.65 $ 6,239.83
Other assets:
Investments general $ 11,235.95 $ 3,039.83
Investments in other crops 3,556.96 -
Other 22,357.10 1,392.80
Total other assets $ 37,150.01 $ 4,432.63
TOTAL ASSETS $433,861.46 $26,189.04

Current liabilities:
Accounts payable $ 59,641.07 $ 3,226.96
Notes payable 53,384.95 1,378.10
Other 11,558.85 1,603.94
Total current liabilities $124,584.87 $ 6,209.00
Fixed liabilities:
Mortgages $ 27,183.24 $ 556.86
Other 468.19 800.13
Total fixed liabilities $ 27,651.43 $ 1,356.99
Net worth:
Common stock $ 10,765.40 $ 1,637.61
Preferred stock 14,565.47 -
Book credit 145,276.31 -
Patrons' equity certificates 59,257.39 8,843.96
Surplus 20,636.31 7,335.88
Other 31,124.28 805.60
Total net worth $281,625.16 $18,623.05
TOTAL LIABILITIES AND
NET WORTH $433,861.46 $26,189.04







Florida Agricultural Experiment Stations


were primarily processing, bottling, and distributing milk to
households and retail stores.

TABLE 33.-SALES OF SIX FLORIDA MILK MARKETING COOPERATIVES,
1958-59, SEASON.

Range in Number of Average
Sales Associations Sales
(1,000 Dollars)
101- 500 2 $ 194,805
501 -1,000 1 894,000
1,001 1,500 -
1,501 2,000 1 1,994,509
2,001 2,500 -
2,501 3,000 -
3,001 3,500 -
3,501 4,000 -
4,001 4,500 -
4,501 5,000
5,001 and over 2 15,665,684
All 6 $34,609,488
Average $ 5,768,248


The equities of dairy co-op members are principally in the
form of either book credits, certificates of equity, or common
stock. These equities, as a rule, were built up by withholding
from 2.5 to 3 cents per gallon for this purpose.


EGG MARKETING ASSOCIATIONS

In 1939 there were only four egg marketing associations oper-
ating in the state. In addition to marketing, two of these as-
sociations sold farm supplies to their members. These supplies
were primarily medicines, equipment, and baby chicks. In
addition to the normal marketing services of grading, packing,
and selling eggs, two of the associations picked up eggs at the
farm.
One association had sales of over $1,000,000, and three had
sales of less than $1,000,000. Two associations owned their
own buildings and facilities, and two rented buildings and facil-
ities.
The average balance sheets of these associations reveal that
they were in a rather weak financial position (Table 35). The
current ratio (ratio of current assets to current liabilities) was








Florida Cooperatives


TABLE 34.-AVERAGE BALANCE SHEET OF FOUR FLORIDA MILK MARKETING
COOPERATIVES, FISCAL YEAR ENDING 1958 OR 1959.*

1 Amount | Percent


Current assets:
Cash on hand and on deposit
Notes and accounts receivable
Inventory
Other
Total current assets
Fixed assets:
Land
Buildings, machinery, equipment (net)
Total fixed assets
Other assets:
Investments
Investments in other cooperatives
Prepaid expenses
Other
Total other assets

TOTAL ASSETS


Current liabilities:
Accounts payable
Note payable to:
Banks
Other
Accrued items
Other
Total current liabilities
Fixed liabilities:
Mortgages payable to:
Banks
Other
Certificates of indebt. and net worth
items approaching maturity
Other
Total fixed liabilities
Net worth:
Capital stock:


$ 66,704.84
147,102.65
35,615.45
18,801.30
$268,224.24

$ 40,871.59
357,620.25
$398,491.84

$ 8,341.69
7,903.91
7,563.60
6,875.97
$ 30,685.17

$697,401.25


$ 65,739.75

34,230.52
10,973.03
18,995.72
15,624.63
$145,563.65


$ 54,818.22
60,765.95

1,562.75
$117,146.92


38.46



57.14





4.40

100.00


20.87


16.80


Common $ 11,347.50
Preferred 124,533.87
Book credit in lieu of stock or certificates 297,459.40
Patrons' equity certificates 2,150.70
Surplus and undivided profits (800.79)
Other
Total net worth $434,690.68 62.33
TOTAL LIABILITIES AND NET WORTH $697,401.25 100.00

Current ratio-current assets to current liabilities 1.84:1
Net worth to long-term debt 3.76:1
Net worth to fixed assets 1.09:1

Balance sheet for three milk associations are for close of fiscal year 1958.







Florida Agricultural Experiment Stations


TABLE 35.-AVERAGE BALANCE SHEET OF FOUR FLORIDA EGG MARKETING
COOPERATIVES, FISCAL YEAR ENDING 1959.
| Amount I Percent
Current assets:
Cash on hand and on deposit $ 4,803.94
Notes and accounts receivable 19,030.70
Inventory 6,390.18
Other 290.31
Total current assets $30,515.13 64.35
Fixed assets:
Land $ 515.88
Buildings, machinery, equipment (net) 15,665.75
Total fixed assets $16,181.63 34.12
Other assets:
Investments
Investments in other cooperatives $ 25.00
Prepaid expenses 687.71
Other 8.56
Total other assets $ 721.27 1.53
TOTAL ASSETS $47,418.03 100.00

Current liabilities:
Accounts payable $24,632.95
Notes payable to:
Banks 920.78
Other 3,087.40
Accrued items 1,235.54
Other 472.95
Total current liabilities $30,349.62 64.00
Fixed liabilities:
Mortgages payable to banks $ 1,698.24
Total fixed liabilities $ 1,698.24 8.59
Net worth:
Capital stock:
Common $ 60.00
Preferred 1,495.00
Book credit in lieu of stock or certificates 6,628.57
Surplus and undivided profits 7,186.60
Total net worth $415,370.17 32.41

TOTAL LIABILITIES AND NET WORTH $47,418.03 100.00

Current ratio-current assets to current liabilities 1.00:1
Net worth to long-term debt 9.05:1
Net worth to fixed assets 0.95:1






Florida Cooperatives


only 1:1, and the member's equity was only 32 percent of the
assets.
Operating revenue in all cases was obtained by deducting
from sales a charge for services. Only one of these associations
provided for a planned method of building capital. This associa-
tion assessed and collected 1/2 cent per dozen eggs for a capital
member-equity account.


TOBACCO ASSOCIATIONS

In 1959 there were four associations handling shade tobacco.
However, one of these was organized during the year 1959, and
no records of its operation for a part of the year were obtained.
One cooperative had operated continuously since 1947, and the
other two began operations in 1956. One association owned its
warehouse, two were renting warehouses, and one was building
a warehouse in 1959.
These associations, because of the nature of the product
pooled neither their receipts nor their expenses. Each grower's
tobacco was handled for the account of the grower, and expenses
for grading and packing his tobacco were charged directly to the
member's account. The average balance sheet for two of these
tobacco marketing associations is given in Table 36.


LIVESTOCK ASSOCIATIONS
Livestock associations over the years have not been long-
lived. Only three of the livestock associations that have been
organized were operating in 1959. All three of these operated
local auction markets; one of them handled only cattle, one only
hogs, and one both cattle and hogs. One of these was a large
association with sales in excess of $4,500,000; the sales of the
other two were between $500,000 and $1,000,000. All three of
these associations charged 3 percent of the sale price for the
service of selling. Farmers received their checks either on the
day of sale or the day following sales. However, buyers usually
did not pay the cooperative for several days. Because of this,
the cooperative either had to borrow funds or build operating
account reserves to take care of these advances. Only one of the
associations usually had adequate funds of its own for financing
this operation.







Florida Agricultural Experiment Stations


TABLE 36.-AVERAGE BALANCE SHEET OF TWO FLORIDA TOBACCO MARKETING
COOPERATIVES, FISCAL YEAR ENDING 1959.
S Amount I Percent
Current assets:
Cash on hand and on deposit $ 6,738.12
Notes and accounts receivable 9,620.11
Inventory
Other
Total current assets $16,358.23 44.98
Fixed assets:
Land $ 4,000.00
Buildings, machinery, equipment (net) 16,007.00
Total fixed assets $20,007.00 55.01
Other assets:
Other $ 2.50
Total other assets $ 2.50 0.01
TOTAL ASSETS $36,367.73 100.00

Current liabilities:
Accounts payable $ 530.20
Accrued items 1,019.59
Other 6.70
Total current liabilities $ 1,556.49 4.28
Net worth:
Capital stock-common $14,432.80
Surplus and undivided profits 20,378.44
Total net worth $34,811.24 95.72
TOTAL LIABILITIES AND NET WORTH $36,367.73 100.00

Current ratio-current assets to current liabilities 10.51:1
Net worth to fixed assets 1.74:1


All three cooperatives used the conventional method of selling
at auction in which the animals were assembled and auctioned
in the auction ring. However, one cooperative introduced the
method of having buyers inspect certain lots of cattle on the
ranch and then auctioning these animals at a predetermined
date without the animals being present at the time of the sale.
Sales of this nature were held only for sizeable lots of cattle.
The volume sold this way was only a small part of the total.
Balance sheets were available for only two of these livestock
marketing cooperatives (Table 37). These cooperatives were
in excellent financial condition in 1959. Net worth was about
97 percent of the assets, and the current-assets-to-current liabi-
lities ratio was 21:1.








Florida Cooperatives


TABLE 37.-AVERAGE BALANCE
MARKETING COOPERATIVES,


SHEET OF TWO FLORIDA LIVESTOCK
FISCAL YEAR ENDING 1959.*


I Amount I Percent
Current assets:
Cash on hand and on deposit $ 48,077.20
Notes and accounts receivable 15,800.60
Inventory 1,897.59
Other 362.50
Total current assets $ 66,137.89 63.41
Fixed assets:
Land $ 7,664.08
Buildings, machinery, equipment (net) 28,677.84
Total fixed assets $ 36,341.92 34.84
Other assets:
Investments
Investments in other cooperatives
Prepaid expenses $ 1,826.33
Other
Total other assets $ 1,826.33 1.75
TOTAL ASSETS $104,306.14 100.00

Current liabilities:
Accounts payable $ 1,503.09
Notes payable to:
Banks
Other 219.20
Accrued items 1,458.67
Total current liabilities $ 3,180.96 3.05
Net worth:
Capital stock:
Common $ 58,734.30
Preferred 6,229.92
Surplus and undivided profits 36,160.96
Total net worth $101,125.18 96.95
TOTAL LIABILITIES AND NET WORTH $104,306.14 100.00


Current ratio-current assets to current liabilities
Net worth to fixed assets


20.79:1
2.78:1


* Balance sheet for one livestock association is for close of fiscal year 1958.






Florida Agricultural Experiment Stations


FARM SUPPLY COOPERATIVES

In 1959 there were 20 farm supply cooperatives operating in
Florida. However, two of these were formed in 1959, and no
data on their operation were obtained. Of the 18 for which
data were available, five mixed and sold fertilizer, three sold
containers, nine sold various farm supplies through retail stores,
and one mixed and sold feed.
The organization of these cooperatives was conventional in
that the members elected the board of directors and the directors
elected the officers. In 14 of these cooperatives, the method of
voting was one member, one vote; and in six, voting was one
share of stock, one vote.
Six of the farm supply stores were affiliated with the Cotton
Producers' Association of Atlanta, Georgia. These stores are
legally independent, but many of their operation decisions are
influenced by the Cotton Producers' Association. Not only does
the Cotton Producers' Association have a management contract
to operate each store, but it also provides financial aid and fur-
nishes manufacturing and wholesale service.
The number of associations and membership are given in
Table 38 for various groups of farm supply cooperatives sorted
by principal type of products handled.
Details of capital structure for farm supply cooperatives are
given in Table 39.
Most of the cooperatives except those handling feed were
financed principally with common stock and through saving from
operations, which were evidenced by certificates of equity and
book credit. Dividends of 6 to 8 percent were paid on stock. No
interest was paid on certificates of equity or book credits.
The cooperatives handling mixed farm supplies obtained cap-
ital almost exclusively from equity certificates or book credit.
Certificates of equity of these associations were callable at the
will of the board of directors and bore interest at the rates of
5 and 6 percent.
The one cooperative handling feed was financed without capi-
tal stock-mostly by certificate of indebtedness.
The volume of business done by farm supply cooperatives
ranged from less than $200,000 for five associations to over
$4,000,000 for one association, and averaged $956,687 per asso-
ciation (Table 40).





TABLE 38.-NUMBER OF ASSOCIATIONS AND MEMBERSHIP IN FLORIDA FARM SUPPLY COOPERATIVES
SORTED BY PRINCIPAL PRODUCTS HANDLED, FISCAL YEAR ENDING 1959.*

Principal Number Farm Members Farmer Others
Products of Non- Cooperative Who Are Total
Handled Associations In State resident Members Members
Fertilizers and
insecticides 5 344 19 2 365
Containers 3 12 50 10 72
Mixed supplies 9 5,172 7 5,179
Feed 2** 122 122
Total 19 5,650 7 69 12 5,738

Data on six associations were for fiscal year ending 1958 due to incomplete audits at the time of the survey.
** One association, recently incorporated but not operating, did not have a membership list and Is not included.

TABLE 39.-TYPES OF CAPITAL STRUCTURE ACCOUNTS FOR FLORIDA FARM SUPPLY COOPERATIVES SORTED BY PRINCIPAL
PRODUCTS HANDLED, FISCAL YEAR ENDING 1959,* AND PROPORTION OF CAPITAL IN EACH TYPE ACCOUNT.
5 9
Cooperatives 3 Cooperatives 1
Handling Cooperatives Handling Cooperative
Type of Fertilizers Handling Mixed Handling
Capital Structure and Containers Farm Feed
Account Insecticides Supplies
Percent Percent Percent Percent
Number of Number of Number of Number of
With- Capital With- Capital With- Capital With- Capital
Structure Structure Structure Structure
Long-term debt 3 15.3 1 4.5 1 1.5 1 44.8
Certificates of indebtedness 1 53.7
Preferred stock 1 6.7 -
Common stock 5 14.8 2 27.1 1 7.6 -
Equity certificates 2 28.7 1 2.9 8 26.6 -
Book credit 2 28.6 1 43.6 6 42.7 1 1.5
Surplus and reserves 3 12.6 1 15.2 5 21.6 -
Total 100.0 100.0 100.0 100.0

Data on six associations were for fiscal year ending 1958 due to incomplete audits at the time of the survey.












TABLE 40.-AVERAGE SALES, MEMBERSHIP, AND NET MARGINS OF 18 FLORIDA FARM SUPPLY COOPERATIVES, SORTED BY
VOLUME OF SALES AND BY PRINCIPAL PRODUCTS HANDLED, FISCAL YEAR ENDING 1959.*


Average per Association
Sales to
Members Sales to Non- Net
SMembers members Margins
Number Dollars Dollars Dollars


Volume of sales:**
$ 100,000-$ 199,999
200,000 299,999
300,000 399,999
400,000 499,999
500,000 999,999
1,000,000 1,999,999
2,000,000- 2,999,999
3,000,000 and over
Total


Principal products handled:
Fertilizers and insecticides
Containers
Mixed supplies
Feed


.............................. Associations Classified by Volume of Sales.............. .........


175,228
241,244
314,181
429,706
655,761
1,420,017
2,370,815
4,303,935
956,687


155
573
672
44
1,335
14
106
56


139,408
202,938
252,868
354,740
624,723
1,420,017
1,939,921
2,286,636


428 744,482


35,820
38,306
61,313
74,966
31,038

430,894
2,017,299
212,205


1,956
5,709
19,306
11,998
26,945
175,707
111,551
161,350
45,797


............................Associations Classified by Principal Products Handled..... ............


1,887,779
1,556,519
324,076
195,233


1,204,209
1,556,519
279,426
195,233


683,570

44,650


86,076
87,684
10,343
9,799


* Data on six associations were for fiscal year ending 1958 due to incomplete audits at the time of the survey.
** No association had sales below $100,000.


Item


Number
of
Associations

Number


Sales of
Farm
Supplies
Dollars







Florida Cooperatives


Fertilizer and insecticide sales averaged $1,887,779 per as-
sociation for the five associations handling these products. The
three associations handling containers averaged $1,556,519 in
sales.
The proportions that various products were of the total sales
for each of 15 associations are given in Table 41. For the 14
cooperatives handling fertilizer, the percent that fertilizer was
of their total business ranged from 16.5 percent for association
number 7 to 100 percent for association number 12. Of the 10
associations that handled some feed, one handled only feed.
Seventeen of the 18 associations handling farm supplies earned
net margins in the fiscal period covered by the study (Table 42).
Two of the associations allocated 100 percent of their net mar-
gins to patrons' book credits and one to patrons' equity certifi-
cates. For all associations nearly one-half of the net margins
were returned to members in the form of cash refunds.
The financial condition of the supply cooperatives was good.
On the average, the nine mixed-supply cooperatives had mem-
bers' equity in the assets of 51.44 percent. Members' equity
in the assets of the container cooperatives averaged 71.47 per-
cent, and in the fertilizer and insecticides cooperatives, averaged
54 percent. The current assets-to-current-liabilities ratio, on the
average, was satisfactory for the type of business (Table 43).
The net margins to sales for the principal items sold are
given in Table 44.
Supply cooperatives, because of the nature of their business,
require large amounts of funds for operating capital due to their
large inventories and extension of credit to members. The
amount of credit outstanding at the end of the fiscal period is
given in Table 45 for various groups of cooperatives sorted by
principal products handled and by length of credit. The sources
from which they obtained their credit are given in Table 46.














TABLE 41.-PROPORTION THAT VARIOUS PRODUCTS WERE OF TOTAL SALES, FOR EACH OF 15 FLORIDA FARM SUPPLY
COOPERATIVES, FISCAL YEAR ENDING 1959.*

Firm Fertilizers Insecticides** Feed Seed Miscellaneous Baby Total
Farm Supplies Chicks
Percent Percent Percent Percent Percent Percent Percent


1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total


35.0
28.3
26.3
50.9
46.0
43.4
16.5
57.5
55.8

83.9
100.0
79.6
78.3
67.2
65.7


6.1
8.1
3.9

6.5
2.5
6.3
4.4

16.1

20.4
21.7
32.8


60.0
33.8
28.8
18.0
27.0
22.8
74.7
14.3
26.2
100.0


5.0
13.9
23.2
13.6
13.0
13.9
1.9
13.4
9.0






2.6


* Data on six associations were for fiscal year ending 1958 due to incomplete audits at the time of the survey.
** Insecticides include all spray materials and farm medicines.


100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0









TABLE 42.-KIND OF INSTRUMENTS USED AND ALLOCATION OF NET MARGINS, BY VOLUME OF SALES, AND PRINCIPAL
PRODUCTS HANDLED, 18 FLORIDA FARM SUPPLY COOPERATIVES, FISCAL YEAR ENDING 1959.*

Number Number Disposition of Margins
Item of Earning Patrons'
SAssns. Net Unallocated Book Equity Cash Total
| Margins Credit Certificates Refund
Number Number Percent Percent Percent Percent Percent
........................................Associations Classified by Volume of Sales........... .................
Volume of sales:**
$ 100,000-$ 199,999 5 4 42.4 11.7 45.9 100.0
200,000- 299,999 2 2 100.0 100.0
300,000- 399,999 2 2 65.4 34.6 100.0
400,000- 499,999 1 1 100.0 100.0
500,000- 999,999 3 3 57.9 30.1 12.0 100.0
1,000,000- 1,999,999 1 1 14.2 85.8 100.0
2,000,000- 2,999,999 3 3 26.8 4.5 68.7- 100.0
3,000,000 and over 1 1 100.0 100.0
Total 18 17 12.2 31.2 7.2 49.4 100.0
.............................Associations Classified by Principal Products Handled.... ..................
Principal products handled:
Fertilizers and insecticides 5 5 19.9 35.8 44.3 100.0
Containers 3 3 27.4 72.6 100.0
Mixed supplies 9 9 2.5 25.0 50.4 22.1 100.0
Feed 1 1 100.0 100.0

Data on six associations were for fiscal year ending 1958 due to incomplete audits at the time of the survey.
** No association had sales below $100,000.










TABLE 43.-AVERAGE BALANCE SHEETS OF 17 FLORIDA FARM SUPPLY COOPERATIVES, BY PRINCIPAL PRODUCTS HANDLED,
FISCAL YEAR ENDING 1959.*

Products Handled
Assets 5
9 3 Fertilizers
Mixed Supplies Containers and Insecticides
Amount Percent Amount Percent Amount Percent


Current assets:
Cash on hand and
on deposit
Note and acts. receivable
Inventory
Other
Total current assets
Fixed assets:
Land
Buildings, machinery,
equipment (net)
Total fixed assets
Other assets:
Investments
Investments in other
cooperatives
Prepaid expenses
Other

Total other assets
TOTAL ASSETS


$ 3,524.83
50,595.66
23,489.09
141.68
$77,751.26

$ 1,897.50

30,435.89
$ 32,333.39


$ 40.02

41,841.29
2,721.21

$ 44,602.52
$154,687.17


$144,889.51
103,128.94
103,745.53
1,800.00
50.26 $353,563.98

$ 696.93

101,657.49
20.90 $102,354.42

$ 29,716.97

7,044.24

28.84 $ 36,761.21
100.00 $492,679.61


$106,348.16
187,238.26
130,287.25
4,792.65
71.76 $428,666.32

$ 14,435.93

248,340.40
20.77 $262,776.33

$ 45,880.68

13,809.92
13,388.45
1,907.66

7.47 $ 74,986.71
100.00 $766,429.36


L-~






34.28

Co
55.94 N


ct




ca
TO


a
c-t


9.78
100.00











TABLE 43.-CONTINUED.

Products Handled
Liabilities 5
9 3 Fertilizers
Mixed Supplies Containers and Insecticides
Amount Percent Amount Percent Amount Percent
Current liabilities:
Accounts payable $56,884.57 $ 55,599.38 $108,998.33
Notes payable to:
Members -
Banks 5,047.34 -98,802.50
Other 2,644.44 -
Accrued items 312.38 7,180.77 21,734.22
Other 63.78 61,119.09 48,334.73
Total current liabilities $64,952.51 41.99 $123,899.24 25.15 $277,869.78 36.25

Fixed liabilities:
Mortgages payable to:
Banks $ 9,051.20 -$ 74,760.71
Other 1,111.10 -
Certificates of indebt. and net worth
items approaching maturity -
Other $ 16,666.67 -
Total fixed liabilities $10,162.30 6.57 $ 16,666.67 3.38 $ 74,760.71 9.75












TABLE 43.-CONCLUDED.


B Products Han


Net Worth


An


Net worth:
Capital stock:
Common
Preferred
Book credit in lieu of
stock or ctfs.
Patrons' equity ctfs.
Surplus and undivided profits
Other
Total net worth
TOTAL LIABILITIES
AND NET WORTH


9
Mixed Supplies
nount Percent


$ 5,872.22

33,457.87
23,371.57
16,870.70

$ 79,572.36

$154,687.17


3
Containers
Amount


$100,006.67
25,000.00

160,904.08
10,725.67
55,477.28

51.44 $352,113.70

100.00 $492,679.61


dled j
5
Fertilizers 2.
I and Insecticides
Percent Amount Percent


$ 72,365.40


139,708.50
140,118.07
61,606.90

71.47 $413,798.87 54.00

100.00 $766,429.36 100.00
c-


Current ratio-current
assets to current liabilities 1.20:1 2.85:1 1.54:1
Net worth to long-term debt 7.83:1 21.13:1 5.53:1
Net worth to fixed assets 2.46:1 3.44:1 1.57:1
Turnover of fixed assets 10.27 15.21 7.18

Data on six associations were for fiscal year ending 1958 due to incomplete audits at the time of the survey.


----








Florida Cooperatives


TABLE 44.-PERCENT OF NET MARGINS TO SALES BY PRINCIPAL PRODUCTS
HANDLED, 18 FARM SUPPLY COOPERATIVES, FISCAL YEAR ENDING 1959.*

S Net Margin to Sales
Product (percent)

Fertilizers and insecticides 4.56
Containers 5.63
Mixed supplies 4.05
Feed 5.02

Data on six associations were for fiscal year ending 1958 due to incomplete audits at
the time of the survey.


TABLE 45.-USE OF BORROWED FUNDS BY 18 FLORIDA FARM SUPPLY
COOPERATIVES, SORTED BY TYPES OF PRODUCTS HANDLED,
FISCAL YEAR ENDING 1959.*

Number
Principal Number Using Percent Amount**
Products of Borrowed of Short- I Long-
Handled Associations Funds Total term I term Total
Number Number Percent Dollars Dollars Dollars
Fertilizers and
insecticides 5 3 60.0 494,604 373,212 867,816
Containers 3 1 33.3 50,000 50,000
Mixed supplies 9 6 66.7 69,226 91,461 160,687
Feed 1 1 100.0 2,800 18,400 21,200
Total 18 11 61.1 566,630 533,073 1,099,703

Data on six associations were for fiscal year ending 1958 due to incomplete audits
at the time of the survey.
** Amount represents loans outstanding on books at end of fiscal year.


TABLE 46.-SOURCES OF CREDIT USED BY 13 FLORIDA FARM SUPPLY
COOPERATIVES, FISCAL YEAR ENDING 1959.*


Principal Sources


Number of
Associations
Using


Percent of
Total Amount
Borrowed**


Commercial banks 3 13.2
Columbia Bank for Cooperatives 3 77.2
Other cooperatives 5 4.1
Other sources 2 5.5
Total 13 100.0

Data on six associations were for fiscal year ending 1958 due to incomplete audits
at the time of the survey.
** Represents percent of total loans outstanding on the books of the associations as
shown by financial statements.






Florida Agricultural Experiment Stations


SERVICE COOPERATIVES

In addition to the cooperatives performing services of mar-
keting, grove-care, and purchasing farm supplies, Florida farm-
ers use cooperatives for other purposes. At the time of this
survey, in addition to the grove-care service performed by the
citrus marketing associations, there were 34 associations per-
forming various other types of services for farmers. Of these,
12 were dairy cattle artificial breeding associations, nine were
dairy herd improvement associations, six were dairy bargaining
associations, four engaged in tending cattle for their members,
one in tung nut grove caretaking, and one in potato production
(Table 47).

TABLE 47.-MEMBERSHIP IN 42 FLORIDA MISCELLANEOUS SERVICE
COOPERATIVES, BY TYPE OPERATION, 1959.
I Number I I Average
Type of of 1 Number of Membership
Operation Assns. I Members per Assn.*
Artificial breeding 12 286 28
Caretaking:
Cattle 4 118 30
Tung grove 1 4 4
Dairy Herd Improvement Association 9 112 12
Dairy service** 6 225 38
Precooling vegetables 1 7 7
Production of Irish potatoes 1 32 32
Trade associations 8 11,248 1,406
Total 42 12,032 286

Rounded to nearest whole number.
** Associations, in general, represent producers before legislative committees and reg-
ulatory bodies.
The 12 artificial breeding associations had a total of 286
members who owned approximately 44,000 cows which were bred
artificially. These associations were organized without capital
stock. Fees were charged on a per cow basis from which they
paid the technician's salary and the cost of the semen. At the
end of the year, if any margins were earned, they were either
returned to the members or held in the association as reserve.
The dairy herd improvement associations were also organized
without capital stock. The services consist of a periodic testing
and weighing of the milk from each cow by a dairy technician
who visited the association members and supervised the record
keeping, computed the value of milk and cost of feed, and made







Florida Cooperatives


general suggestions for improving the member's dairy operation.
The dairy herd improvement associations had 112 members.
There were 17,973 cows in the nine associations.
The six dairy bargaining associations were engaged primarily
in trying to obtain favorable prices for their members' milk in
addition to legislative and other trade association type activities.
The representatives of these associations voiced their opinions
and wishes with respect to milk prices before both federal and
state bodies engaged in pricing of milk.


CONCLUSIONS
Cooperatives pioneered in many of the improvements in mar-
keting and production in Florida. Over the years they have
marketed a significant percent of the output from Florida farms.
There have been many failures of farmer cooperatives. The rate
of failure of farmer cooperatives has, in general, been lower
than that for other types of businesses engaged in the same
services. Many failures of cooperatives, like the failures of other
organizations, have been the result of technological changes.
Some have been due to poor managers, inadequate financing, and
operations that were not, or were not believed by the members
to be, equitable in treatment of members.
This and other studies conducted by the authors showed that
cooperatives which had below average costs, which had returns
from products equal to or above the industry as a whole, and
which allocated these benefits to members on an equitable basis
were quite successful.
In general, cooperatives serving Florida farmers today are
greatly improved over those of a few years back. As farmers
gain in experience, it is likely that cooperatives will play an
increasingly important role in the marketing of farm products,
purchasing of supplies for farms, and especially in the perform-
ing of production and other services for farmers.









HISTORIC NOTE


The publications in this collection do
not reflect current scientific knowledge
or recommendations. These texts
represent the historic publishing
record of the Institute for Food and
Agricultural Sciences and should be
used only to trace the historic work of
the Institute and its staff. Current IFAS
research may be found on the
Electronic Data Information Source
(EDIS)

site maintained by the Florida
Cooperative Extension Service.






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