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Annual report of the Florida Citrus Exchange
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Permanent Link: http://ufdc.ufl.edu/UF00075941/00009
 Material Information
Title: Annual report of the Florida Citrus Exchange
Alternate title: Seald-Sweet story
Seald-Sweet annual report
Physical Description: v. : ill. ; 24 cm.
Language: English
Creator: Florida Citrus Exchange
Publisher: The Exchange
Place of Publication: <Tampa Fla.>
Creation Date: 1935
Frequency: annual
regular
 Subjects
Subjects / Keywords: Citrus fruit industry -- Statistics -- Periodicals -- Florida   ( lcsh )
Citrus fruits -- Statistics -- Periodicals -- Florida   ( lcsh )
Citrus fruits -- Marketing -- Statistics -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
serial   ( sobekcm )
 Notes
General Note: Mimeographed, 1933/34-1934/35.
General Note: Description based on: Season 1926/27; title from cover.
 Record Information
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 001753794
oclc - 46798761
notis - AJG6778
lccn - 2001229399
System ID: UF00075941:00009
 Related Items
Preceded by: Annual report of the business manager of the Florida Citrus Exchange

Full Text







Annual Report

of the

FLORIDA CITRUS

EXCHANGE






SEASON
1935-1936


General Manager


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Annual Report

of the


FLORIDA CITRUS


EXCHANGE


















SEASON
1935-1936


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/93 5/36
CONTENTS
SEASON 1935-36 Page
Improved Quality ............................. 3
Buying Power Up ............................ 3
Industry and Legislation ........................ 4
Volume Slightly Reduced ....................... 4

STATE LEGISLATION
A cts of 1935 ................................ 6
First Season Under New Program ................. 6
M ayo H helpful ............................... 7
FEDERAL MARKETING AGREEMENT ......... 7

FLORIDA CITRUS EXCHANGE SALES
M ore V olume ................................ 8
More Income ...................... ........... 9
Premium Prices ............................... 9
Special Order Department ....................... 9
Export A activities .............................. 10
Sales to Canneries ............................. 10
Data on M markets ............................. 18-22
FIELD OPERATIONS IN STATE
District Manager Plan Successful ................. 11
Color A dded ................................ 12
Policies .................. ................. 12
A association A activities .......................... 13
Decay Losses Brought Down .................... 13
ADVERTISING AND SALES PROMOTION
Advertising and Dealer Service in the Northern Markets.. 13
Exhibits .............. ...................... 14
Juice Extractors .............................. 14
TRANSPORTATION.AND TRAFFIC
W after Schedules'.M'iniird .';'. j. i : '....... 15
Rail, Bo3f,.'an4 Truck Shipments.... ..:' ... ...... 16
AFFIL.I A.'S ::r* .: **:*:
,, *.. .. .. ......,
Gr&~ers Loan and: G&anty*o..... ......... 17
Exchange Supply Company ...................... 17











Annual Report
of the

FLORIDA CITRUS EXCHANGE

Season 1935-1936

During the shipping season of 1935-36 a combination of several
factors served to increase the price level for Florida citrus fruits. While
these conditions affected the entire Florida crop favorably, active Ex-
change merchandising and sales facilities took advantage of them to
move a greater volume of fruit at a considerably increased gross reve-
nue, reflecting a better than average return to member growers. (See
pages 10-12).
Specifically the major causes of this improved situation were (a)
better quality, (b) improved economic conditions and increased buy-
ing power, and (c) the coordination of industry in merchandising and
standardization of grades.
Quality Improving
The December freeze of 1934 sharply reduced the volume of the
state crop for the season 1934-35. A far more costly effect of that
freeze, however, was the destruction of quality and consequent confi-
dence of the trade in the crop as a whole. Low prices resulted. Large
crops of good quality fruit from California and other producing sec-
tions were adequate to meet market requirements, with the result that
Florida fruit moved, in many cases, at sacrificed prices as the trade
dropped out of the Florida market.
This season, however, these factors have disappeared. The crop
as a whole has been of unusually good quality, juice content and flavor
have been high, and trade and consumer acceptance favorable. Present
indications point to the maturity of a new crop of even superior quality,
as trees throughout the citrus belt have fully recovered from the effects
of the freeze.
Buying Power Improved
This lowered volume of better quality fruit moved to markets which
possessed far greater buying power, and economic conditions through-
out the nation, as judged by all major indices, have improved consider-
ably. Mid-Western markets with the support of strengthened agricul-
tural and manufacturing conditions were stronger than they have been
for the past five years. Eastern markets, because of improvements in
heavy industries and manufacturing, reflected even greater capacities
to purchase.
Southern markets bought heavily for the first time in four seasons.
This properly may be attributed to increased buying power. Coupled
3


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with this economic factor, however, is the effect of the state regulations
preventing indiscriminate shipping of unpacked fruit through subnormal
trade channels, particularly to this territory.
Retailers, wholesalers, jobbers and distributors throughout all Flor-
ida markets reported a steady and healthy demand during the entire
season. Those markets which constant study and close analysis showed
most improvement in current and potential activity received the brunt of
Exchange merchandising efforts. This discriminating sales work, made
possible because of the national coverage of the Exchange organization,
resulted in the creation of several unusual records on Exchange volumes
later discussed.
Legislation Improves Industry Position
The third major factor causing the improved situation during the
season was the result of better merchandising, standardization of grades
and general better business coordination throughout the industry, cre-
ated through the rigid enforcement of the new state citrus legislation.
The principles of this group of laws are practically identical with many
of the major precepts for which the Florida Citrus Exchange has labored
during the past twenty-five years.
Better graded fruit in containers marked with full identification of
quality and maturity brought about the elimination of the bulk fruit
problem and gave the buying trade renewed confidence in the Florida
product. This revised attitude on the part of the trade improved de-
mand at more favorable price levels as markets were exploited.
An additional stimulant created by this legislation and partially
effective in contributing to the improved season may be found in the
state citrus advertising campaign. It tended to reduce consumer sales
resistance to Florida citrus fruit which had been excessively activated
by the lower quality of the preceding season's crop.
In addition to the state campaign, advertising and trade promotion
by the Exchange, plus a most aggressive sales campaign throughout the
season, procured premium prices for Exchange fruit which sold under
the established and accepted trade names Seald-Sweet and Mor-juce
with which the public has been favorably acquainted for many years.

Volume Only Slightly Reduced
Perhaps the most marked tribute to the effect of these three major
factors in improving this season's marketing conditions is the fact that
these results were gained in spite of the similiarity in crop volumes. The
total movement of citrus from all major producing sections feeding the
American markets was only 7.1 per cent (as of May 28, 1936) less
than for the comparable period of the preceding season.
Most of this slight volume loss is in the shorter crop shipped from
California. Florida shipped only 1017 cars or 1.7 per cent less, while
Texas was only 23 cars or .5 per cent short of the preceding season.
These detailed data of volumes are cited in the following table:









Shipments from Major Producing Sections (Cars)
Seasons 1935-36 1934-35

(As of May 28)

1935-36 1934-35 Loss % Loss
Florida ... 57,358 58,375 1,017 1.7
California 34,898 41,300 6,402 15.5
Texas..... 4,574 4,597 23 .5

96,830 104,272 7,442 7.1

While the state shipped slightly less volume as a whole, the Ex-
change organization has been responsible for an increased percentage
of this total movement.

Compared with last season, the state shipped nearly two (2%)
per cent less fruit, while the Exchange gained six (6%) per cent on
their own shipments.

The Exchange also increased its percentage of the total state vol-
ume by two (2%) per cent.

The premiums obtained for this increased volume of fruit handled
by the Exchange over general averages for the state is a direct tribute
to the hard-hitting efficiency which has been built into the organization
through the depression years. The effect of the revisions and improve-
ments of operating policies from the packing house through to terminal
markets are making themselves felt, not only in increased tonnage hold-
ings but also in more favorable dollars and cents returns. (See sales,
pages 8 and 9).

Coupled with the greater average returns on volumes moved by the
Exchange is the lowered cost of handling and selling made possible
through cooperative at-cost operations. The profits of fertilizing, care-
taking, packing and sales all are returned to grower members as in-
creased returns on the tree. They become one of the dividends of the
cooperative effort which properly must be added to the increased pre-
miums obtained on the sale of the fruit in terminal markets.

STATE LEGISLATION
After careful consideration and close cooperation between all ma-
jor factors in the industry, a group of laws were enacted by the state
legislature during its 1935 session, which were designed to coordinate
and regulate fruit handling and merchandising functions within the in-
dustry. The laws are effective over a two year period-the current
season and next season-expiring in June of 1937.
5









Much has been published concerning the details of these laws. It
is, therefore, unnecessary in this report to do other than summarize, and
examine their effect to date.
These laws include the following measures:
1. The creation of a state citrus commission.
2. A maturity act.
3. A per box tax for the creation of a fund to advertise Florida
citrus fruits (3 bills).
4. The bonding and licensing of fruit handlers.
5. Guaranty of growers' costs under stipulated conditions.
6. Regulation of shippers' charges.
7. Registration of field box marks.
8. Regulation of the use of coloring materials.
While considerable delay was experienced between the enactment
of these bills into law and the final organization of the machinery re-
sponsible for their use in the industry, impartial observation nevertheless
must concede a large measure of helpfulness to the industry in the bet-
ter merchandising of Florida citrus fruits.

Program Helpful
The effect of certain individual acts in this original program more
than justify the action taken. The inspection and certification of grade
has brought about increased confidence on the part of dealers and the
consuming public in Florida fruit. This alone has done much to stabi-
lize market conditions generally.
Under the bonding and licensing act, citrus fruit dealers who for-
merly were able to purchase much fruit for which growers were never
paid are held under strict control. Occurrences of this kind which,
during other seasons, have cost growers of the state thousands of dol-
lars, are now held to a minimum.
Advertising of Florida citrus fruits as a commodity became a reality
with the entire industry paying the bill. An appreciable fund was ac-
cumulated by the per box tax on oranges, grapefruit and tangerines and
was invested in those media and in such a manner as the Citrus Com-
mission believes most helpful in stimulating consumer demand. The
tangerine advertising, selling a fruit which heretofore was neglected ex-
cept for the small amounts the Florida Citrus Exchange spent in previ-
ous seasons, showed particularly good results.
During the course of the season the Commission conceded to the
canneries a heavy percentage of the grapefruit advertising fund to be
used in the promotion of the canned article. This action, in view of
the great need for advertising fresh Florida grapefruit, has been regarded
by many with question and disappointment.
It should be remembered, however, that the program as a whole
was authorized for two years only. It will be necessary for the in-









dustry to cooperate with the legislature to obtain the reenactment of this
legal structure with such improvements as experience may indicate as
desirable at the next session of legislature which convenes in April of
1937.
Mayo Helpful
Commissioner of Agriculture Nathan H. Mayo accomplished much
for which the citrus industry should be grateful and for which he should
be commended. His department was charged under the law with the
enforcement of the various measures enacted.
He built an efficient organization, basing his employment of per-
sonnel upon civil service principles instead of political patronage. The
work of the organization thus created and operated has been most effec-
tive in applying these laws to the benefit of the entire industry, and the
growers particularly. No law is better than its enforcement agency and
much of the value of this legislation must be attributed to the impartial
and full enforcement for which this department has been responsible.

FEDERAL MARKETING AGREEMENT
As the present heavy citrus plantings of non-bearing or partially
bearing capacity in Florida, Texas, Arizona and California reach ma-
turity, the necessity for coordinating the shipment and distribution of
these crops becomes apparent. Without such action, markets cannot
be stabilized or prices held at levels permitting the growers a moderate
return on their investment.
A citrus crop of from 80 to 100 million boxes is not only possible
but probable for future seasons. Production of oranges and grapefruit
has increased 60 per cent in American producing sections within the
last fifteen years. Neither American population nor per capital con-
sumption have kept pace with this heavy increase.
Essentially three operating policies are made necessary by this con-
dition, which is becoming more and more critical. They are first, a
control of shipments; second, the creation of a greater consumer de-
mand; and third, the development of new uses for citrus fruits, which
in turn will widen general markets.
The Federal Marketing Agreement serves, in a measure, as the
first policy. Advertising and trade promotion will become the second.
The third will require the development of greater and more intensive
research activities.
As citrus production increases, greater coordination of sales and
distribution also must be developed.

Agreement Now In Effect
After considerable negotiation during the season in which the Flor-
ida Citrus Exchange took an active and major part, the present Federal
Marketing Agreement was written by the industry and declared in effect
by the Federal Secretary of Agriculture on May 8, 1936. It has been
designed to help regulate the flow of fruit from Florida into its natural









markets by making possible proration by grades and sizes, and by
volume.
The personnel of the Citrus Commission appointed by the Gover-
nor of the State of Florida under the Agreement is named as the Con-
trol Committee responsible for the administration of these prorate pro-
visions through the Agricultural Adjustment Administration at Wash-
ington. Properly administered, the Federal Marketing Agreement will
assist materially in stabilizing markets by regulating the volume and
market acceptance of shipments to the then existing demand. This is
an inevitable-but fortunately a temporary-requirement of large crop
years.
A more specific advantage provided in the completion of a Market-
ing Agreement reacts to the direct benefit of Florida citrus growers. It
makes possible the purchase of surplus fruits by the government for dis-
tribution to populations not reached by normal trade channels. This is a
procedure which has been practiced to the benefit of the growers of
prunes, apples, grain and other American agricultural products.
The actual operation of this policy is simple but directly effective.
With the Citrus Commission personnel acting as the Control Commit-
tee and operating as a recognized governmental agency, the Surplus
Commodities Corporation in Washington can purchase through it for
distribution to the needy of the nation through Federal relief agencies,
all Florida citrus surpluses. The corporation can use funds made avail-
able from the 30 per cent import duty reserve now set up in Washing-
ton for the subsidation of export pools and for the relief of domestic
markets. The withdrawal of such lower grade surpluses from normal
trade channels may stabilize prices at higher levels and thus afford
growers a secondary beneficial result from the program.

FLORIDA CITRUS EXCHANGE SALES
The true measure of sales results is properly determined in com-
parative returns, grade for grade and size for size. The only source of
such information which permits a faithful comparison of Exchange
returns, as compared to all other competitors in the state, is the. records
of auction sales. These, together with the registration of brands in
Florida, are public information. In addition, sales at auction consti-
tute nearly half of the total movement of the crop and therefore ade-
quately reflect comparative conditions existing in private sales markets
between these competing brands.
An analysis of these data, therefore, accurately reflects the true
position of the Florida Citrus Exchange as a packing and sales organi-
zation as compared with other state competition.
Not only did the Florida Citrus Exchange ship more fruit this sea-
son and a greater percentage of the state crop (See Table C, page 19),
but its brands Seald-Sweet and Mor-juce brought more money to Ex-
change grower members on the average in, all the auctions than did the
fruit of all competitive shippers in the state.









For all fruit, including Indian River, the Exchange sold in all ten
auction markets a total of 2,853,704 boxes of Seald-Sweet and Mor-
juce oranges, grapefruit and tangerines, for an average price per box
of $2.83, Sales for competitors in the same markets for the same
period totaled 6,012,309 boxes, and returned an average of $2.70.
Exchange fruit thus brought a premium of 1 3c per box.
This 13c premium totals $370,981.52 and represents funds which
grower members received because of superior Exchange packing and
selling methods. If the 6,000,000 odd boxes of competitive fruit had
been sold at Exchange prices, the growers owning that fruit would have
received $781,600.17 more than they did for their crops.
Excluding Indian River fruit, the Exchange sold in the ten large
auction markets 1,417,260 boxes of oranges at an average delivered
price of $2.93 per box, 418,566 boxes of grapefruit at $2.40, and
310,672 boxes of tangerines at $2.72, representing a premium over
competitive averages of 1 4c per box, weighted average.
Round oranges sold by the Exchange totaled 673,065 boxes and
brought an average delivered price of $2.88 per box-8c more than
competitive averages. Pineapple orange sales at auction totaled 324,-
427 boxes, bringing an average price of $2.98 per box, or 13c above
competition. A total of 419,768 boxes of Valencias were sold at
auction by the Exchange for $2.96 per box, or 16c above competition.
Comparable computations for premiums obtained on the sale of
Exchange grapefruit indicate an average of 9c per box, and for tan-
gerines an average of 1 5c per box. The weighted average for all fruit
of all varieties reflects a premium of 14c per box for Exchange fruit,
exclusive of Indian River.
The details of the above discussion are completely tabulated in
Table A, page 18.

Total Income On Packed Fruit
Exchange association remittances as of May 12 amounted to 419,-
230 boxes more fruit this season than last. They received $2,350,-
382.02 more money this season than last.
Remittances this season, as of May 12th, totaled 4,332,088 boxes
and averaged net f.o.b. Tampa $8,945,807.53 or $2.07 per box.
During the preceding season to the same date, a total of 3,912,858
boxes returned $6,595,425.51 or an average of $1.69 per box.
The difference of 38c per box represents the average increase re-
turn per box this season over last.

Special F. O. B. Orders
The Special Order Department within the Sales Department, or-
ganized three years ago, increased the number of orders filled from
2300 cars last season to 3350 cars during the present season. This
department gives its special attention to the development of carlot ship-
ments on special orders. Large buyers have come to rely on the Ex-









change, in many instances, for a complete satisfaction of their particular
requirements. Small buyers also are finding it more convenient to have
special orders filled through this department promptly.
The direct contact between the Tampa sales office and the various
associations, coupled with the complete cooperation of the district man-
agers, has permitted this Special Order Department to function satis-
factorily and increased its volume and service to the buying trade. Un-
der this revised method of operation, special orders are now filled far
more promptly and accurately than by the old sub-exchange relay
method under which orders frequently were lost to competitors because
of hesitancy and delay.

Export Activities
In the fight to include citrus fruits in the reciprocal trade agree-
ment under negotiation with Canada a year ago, the Florida Citrus
Exchange secured the able assistance of the Florida congressional rep-
resentatives. An extensive brief was prepared and filed with the tariff
commission in Washington on March 5, 1935. A formal hearing was
held on March 12th. On September 15th special notice of these nego-
tiations was made and on November 15th the new reciprocal trade
agreement between the United States and Canada was signed.
The tariff duties on oranges shipped from the United States into
Canada prior to the signing of this trade agreement were 70c per box.
Under the new agreement all tariffs were dropped entirely for four
months of the year-January, February, March and April. The tariff
on grapefruit was reduced 50 per cent, from Ic to /2c per pound.
Under these revised tariff conditions, Canadian markets are re-
opened for exploitation to American citrus. Thus the general market-
ing picture is broadened considerably, relieving domestic markets in
direct ratio to the volumes which all American producing sections and
sales organizations are able to sell profitably in Canada.
During the present season Florida not only participated in these
new markets but received direct benefit through the use of them by the
disposition of heavy volumes of California citrus in Canada, particularly
the larger markets in the middle and western part of the nation.

Sales to Canneries
Florida citrus canneries packed over 6,000,000 cases during the
season 1934-35. The pack for the current season will be probably in
excess of 4,000,000 cases.
With this average pack of 5,000,000 cases per season for the last
two years, the Florida citrus canning industry has grown to a size which
assures its permanency. It will continue as long as cannery grade fruit
is available.
Much of the volume, however, which has gone to canneries in the
past has been purchased from growers at prices far below the cost of









production. This practice, it must be recognized, is destructive and a
serious detriment to the industry. Only when the grower receives at
least his cost of production can he continue to grow fruit.
During the season now closing, however, canneries have paid at a
better price level for fruit used. This fact alone proves their ability
to produce and market their product at prices which will compensate the
grower adequately, at least at a rate equivalent to his cost of production.
The constructive cooperation of the canners with the growers on this
point, plus the adequate merchandising of the canned product at proper
price levels, will be of material benefit to the industry as a whole.
It is to be hoped that the heavy concessions made by the Citrus
Commission to the canners in advertising the canned product will serve
to actuate and materialize this cooperation upon a consistently sound
basis.
Outlook For Next Season
Heavy rainfall and favorable weather conditions following the 1934
freeze has produced a rapid recovery in the physical condition of citrus
trees in Florida. Properties rapidly are improving their productive
status. Present indications point to an increased volume with an ex-
ceptionally high quality for next season.

FIELD OPERATIONS
Field operations of the Florida Citrus Exchange are handled pri-
marily under the immediate supervision of the Assistant General Man-
ager. It is his responsibility to increase as far as possible the efficiency
of the various packing houses by maintaining a close cooperation of the
district managers working directly under the Tampa office and the house
managers. The district manager plan has been in operation long enough
to permit some deduction as to its merits.
In summary, the plan has proved to be of decided value in the oper-
ation of the Florida Citrus Exchange. It has saved all former sub-
exchange costs to growers and has improved the working relations of
the Tampa sales department and the packing units immeasurably.
Formerly a corps of inspectors were employed to* maintain close
uniformity of grades in all houses. The Tampa office and the district
managers now work in close harmony with the state inspection force,
leaving the district managers free to work in the field with house man-
agers. Improvements in uniformity of local operations because of this
advantages are permitted. As a result the Exchange has been able to
maintain at least as uniform a grade in all houses without the expense
of an inspection department.
This work, in many cases, extends to the service of groves them-
selves, producing on the average a better quality of fruit and a greater
quantity per acre at lower unit costs. This in turn has raised the aver-
age quality of the pack under Exchange brands and in the composite
represents a service attractive to large interests, as well as small grow-
ers. It is a major contributing factor for the renewed growth of the
Florida Citrus Exchange which, while it is not startling, is nevertheless
steady and stable.









Color-Added Regulations
The present status of the color-added situation for Florida citrus
fruits may be cited in the existence of an order by the Federal Secre-
tary of Agriculture prohibiting the shipment of fruit so treated after
the close of the current shipping season, with a specific expiration date
for the period designated as September 1, 1936.
Under the present Florida law, color-added shipments were re-
quired to meet higher juice contents specifications than those defined by
the Federal government for citrus fruits as a whole. The mark "color-
added" therefore has been used to some advantage by certain opera-
tors in sales work by publicizing the fact that the brand truthfully desig-
nates a superior quality of fruit. Although some difficulty was en-
countered in a few states with the movement of color-added fruit, satis-
factory arrangements were finally worked out in each case whereby the
responsible authorities permitted color-added shipments to continue.
In presenting the case in behalf of color-added fruits to various
state governments and to the Federal departments in Washington, the
Florida Citrus Exchange at considerable expense and time prepared a
brief citing its benefits and necessity. This brief, together with a full
report from the Committee acting for the entire Florida industry, was
filed with the Florida Citrus Commission as the designated agency of
the industry.
A very large percentage of oranges shipped from .the state during
the past season were colored according to state requirements of seasonal
varieties, maturity and juice content.

Policies
Cooperative production, handling and marketing of citrus fruits is
successful only when better services are made available to grower mem-
bers at actual cost, when this cost is comparable or less than the charges
for like services from competitive functionaries.
Inefficient associations cannot accomplish this end.
Recognizing this vital operating truth, the board of directors of
the Florida Citrus Exchange adopted the following resolution as a defi-
nite policy determining future association affiliations:
"... not to allow any packing house to affiliate or to remain
affiliated with the Florida Citrus Exchange which is not in
a position to maintain a satisfactory volume of business on a
sound and economical basis and to render a satisfactory serv-
ice to growers."
The application of this policy, while responsible for some loss in
tonnage, nevertheless has served to improve the merchandising position
of the organization and its service to its grower members very decidedly.
The net result has been the welding of a closer knit, more efficiently
operating cooperative unit than ever before offered to the industry.









Association Activities
All solicitations for membership and fruit are now made by the
associations themselves through their managers, committees, directors and
members. Every possible assistance is afforded by the district man-
agers and Tampa office.
Many packing houses have effected substantial savings and econ-
omies through group purchases of packing house supplies, fertilizer and
spray materials. In addition, many associations now are taking care of
members groves, the financing of which is made possible through co-
operative methods. A more uniform quality of fruit produced at lower
unit costs has resulted from these activities.
The aggregate of such savings and economies in associations
amounts to several hundred thousand dollars per season. It is a definite
tribute to the cooperative principle properly applied.

Decay Losses
Decay losses during the present season have been unusually light.
This indicates a more expert handling of growers' fruit.
The percentage of decay loss for the present season has been less
than one-half of the average for the four preceding years. Tabulated
below is the percentage of decay by years for the past five years:
1935-36, fifteen hundredths of one per cent.... (0.15%)
1934-35, nineteen hundredths of one per cent.. (0.19%)
1933-34, twenty-four hundredths of one per cent (0.24%)
1932-33, forty-five hundredths of one per cent. (0.45%)
1931-32, thirty-two hundredths of one per cent. (0.32%)

ADVERTISING AND SALES PROMOTION
Aggressive advertising and sales promotion activities assisted ma-
terially in increasing both volume and prices of Exchange brands in
many markets.
Large two sheet posters in New York subways and in Chicago
elevated and surface railway stations featured Seald-Sweet and Mor-
juce products throughout the winter and spring months in those areas.
Two to three million people saw these posters daily.
Window, counter and floor displays were erected by dealer serv-
ice men in over 16,000 stores throughout the nation where numerous
week-end sales demonstrations also served to acquaint home buyers
with Seald-Sweet and Mor-juce products, "At the point of sale."
Most prominent item among these displays this season was the new
Seald-Sweet and Mor-juce display vender which was used in several
thousand stores. Dealers and dealer service men report sales increases
ranging all the way from 50 to 300 per cent where the display vender
was used. Its enthusiastic reception by the trade and the sales volume
which it brings in retail stores proves it to be an indispensable item in
dealer service work.









Independent merchants and chain store groups, both voluntary and
corporate, cooperated enthusiastically in all this work, and many deal-
ers showed their preference for Exchange brands by their numerous
requests for display materials.
Several local advertising campaigns using newspaper or radio, in
some instances both, were carried on in cooperation with the distributing
and retail trade.
Northern sales offices and broker representatives, as well as job-
bers and wholesalers and chain stores, joined wholeheartedly in these
efforts. Their letters and numerous photographs, as well as sales
records, show the favorable results of this cooperation.

Exhibits
Several Exchange associations, with the cooperation of Tampa
headquarters, placed exhibits in the Florida Orange Festival in Win-
ter Haven. Two-thirds of the Citrus Pavilion at the Florida State
Fair in Tampa was occupied by an extensive display of Seald-Sweet
and Mor-juce brands from various associations from the entire state.
Educational, nursery, by-products, and appliance exhibits, together with
large display panels depicting the growth and the results of cooperative
citrus marketing, also added to this state display which was viewed by
175,000 people in the Citrus Pavilion.
Ten thousand Exchange folders, health booklets and other pieces
of literature were supplied on request.

Juice Extractors
Sales of the small home type juice extractors were continued during
the past season. Dealer service men pushed the sale and the use of
these home extractors, as well as grapefruit corers and citrus fruit
knives, in all retail contacts and store demonstrations.
A special Florida electric juice extractor adaptable to grapefruit
as well as oranges and equipped to extract the juice from seeded as
well as seedless fruits, has been developed by the Exchange at con-
siderable expense and as a result of years of research and experimental
work. Commercial tests in hotels, restaurants and drug stores prove
the merit of this machine, four of which are now in daily use. Direc-
tors of the Exchange have requested the State Citrus Commission to
secure and to market such an extractor in order to help merchandise
the volume of fruit now in production and in anticipation of a future
increased volume.
The Citrus Commission has appointed a committee which is now
working on plans for the development and sale of such an extractor
which will prove very helpful in stabilizing the Florida citrus industry
through greater fresh juice consumption. Records from California show
that a large percentage of their fruit is consumed in fresh juice drinks
as the result of their cooperation in making it possible for drug stores,
soda fountains, hotels and the like to extract and provide orange juice
readily.









TRANSPORTATION AND TRAFFIC
Savings in excess of $327,000 accrued to Exchange grower mem-
bers this season as a result of rail rate reductions.
In the South, a reduction in rates made it possible to place fruit
as far as Atlanta at half the former cost. Also, there were reductions
of 35 and 15 per cent in the next two zones reaching almost to the
Ohio River. A 12c per box reduction was also made into the entire
middle West.

Water Schedules Maintained
Transportation of citrus fruits by refrigerated boats has now grown
to the point where a regular volume goes to market in that manner.
Below is a list of Florida ports and boat lines and the market centers
served by each:
Sailings Number
LINE Per Week of Ships Refrigerated
Jacksonville to New York
Clyde-Mallory Lines ....... ... 4 5 Yes
Refrigerated SS Lines ......... 4 5 Yes
Tampa to New York
Clyde-Mallory Lines .......... 1 2 Yes
Refrigerated SS Line .......... 2 4 Yes
Fort Pierce to New York
Bull Steamship Line ........... 3 5 2 Refg. 1 Vent
Jacksonville to Philadelphia
Merchants & Miners Trans. ..... 4 4 3 Refg. 1 Vent
Fort Pierce to Philadelphia
Bull Steamship Line ........... 2 4 2 Refg. 2 Vent
Jacksonville to Baltimore
Merchants & Miners Trans. ..... 2 2 1 Refg. 1 Vent
Fort Pierce to Baltimore
Bull Steamship Line ........... 2 4 2 Refg. 2 Vent
Tampa to New Orleans
Clyde-Mallory Lines .......... 1 1 Vent
Moore & McCormack ......... 1 1 Vent
Tampa to Pensacola
Bull Steamship Line .......... I I Vent
Tampa to Mobile
Bull Steamship Line ........... I. 1 Vent
Florala Steamship Line ........ I 1 Vent
15









Gulf shipments move under forced ventilation. All shipments to
Atlantic ports are refrigerated with minor exceptions.
Distribution of fruit transported by water now reaches also into
inland markets from terminal ports. This is accomplished by the ex-
tensive use of truck service. Economies, quick delivery schedules, and
wider distribution are thus made possible through the unloads of small
as well as large lots of fruit.

Rail, Boat and Truck Shipments
The three types of carrier facilities handled approximately the same
percentage of Exchange fruit during the present season as was carried
by each last season.
In spite of the fact that rail carriers reduced their rates to Eastern
markets, apparently to a competitive basis with their water competition,
Exchange associations have continued water shipments into many mar-
kets. The reason for this is obvious upon analysis. Rail rates do not
include icing. Fruit shipped by water, on the other hand, is received
at dock-side into large cooling rooms and moves from them to terminal
ports under refrigeration. Thus growers and shippers receive a com-
pletely refrigerated service at approximately the same cost charged by
rail carriers for non-refrigerated service.
The percentage of shipments by rail remained about the same.
Southern and Southeastern markets received a rail rate reduction of 50
per cent as far as Atlanta, 35 per cent in the middle Tennessee, and 1 5
per cent as far as the Ohio River Valley. These rate reductions are
responsible for an increase of rail shipments into those areas which more
than doubled the Exchange sales volume in these markets. This rail
increase offsets the loss to water carriers in the Northeastern traffic.
A slightly smaller percentage of Exchange volume was moved by
truck this season. The details of this comparative carrier movement
for the state as a whole and for the Florida Citrus Exchange individu-
ally are cited in Table C, page 19.









AFFILIATES
Rounding out the cooperative plan and aims of the Citrus Exchange
in rendering greater service to growers and to associations in marketing
their fruit, are the Growers Loan and Guaranty Company, a financial
credit institution, owned by Exchange affiliates, which is prepared to
extend credit to members and associations, and, the Exchange Supply
Company, a cooperative purchasing agency, also owned by member
associations.

Growers Loan and Guaranty Company
In nineteen years the Growers Loan and Guaranty Company, which
is a stock credit institution, has made loans aggregating a total of $31,-
000,000-a financial service of material assistance to the Florida Cit-
rus Exchange in many ways. This cooperative credit is extended to
growers and to associations and at the present time totals approximately
$1,000,000 annually.
Liquidating its borrowings each year, and carrying a substantial
cash balance at all times, the Growers Loan and Guaranty Company
is favorably known and recognized by financial institutions both here
in the state and in the north.
Expenses of the Growers Loan and Guaranty Company are small
compared to the volume of business handled and to the earnings de-
rived.
The Company has set aside from year to year a portion of its net
earnings as a reserve against possible losses, and this reserve has now
grown to a size which represents a guaranty of sufficient proportions
to off-set losses which might occur and which do occur even in the best
of financial institutions.
Capital and surplus in the Growers Loan and Guaranty Company
at the present time exceeds $1,000,000.

Exchange Supply Company
Since 1916 the Exchange Supply Company has functioned as a
cooperative purchasing agency for associations of the Florida Citrus
Exchange. Packing house supplies and field equipment have been
bargained for in large quantities direct from the producer at lowest
possible prices, the savings passing directly to various associations who
as stock investors own and control the Company.
In the Exchange Supply Company the cooperative idea of services
at cost is carried into the purchasing field, thus supplementing the co-
operative sales activities of the Citrus Exchange proper.
The Exchange Supply Company is in a position at the present
time, as it has been in years past, to save Exchange associations con-
siderable money, and the Company is sufficiently strong financially to
enable it to make contracts and purchases most advantageously.










(Table A)


EXCHANGE AVERAGE PREMIUMS

Auction averages, Exchange averages compared with all competitors,
by varieties for entire season, inclusive and exclusive of
Indian River volumes. Weighted averages used.

Including Indian River Fruit


Auction
Market
New York ......
Cincinnati ......
Pittsburgh ......
Chicago .. .....
Cleveland ......
Philadelphia ...
Boston .........
Baltimore ......
St. Louis .......
Detroit .........
Total .....




Val. Orgs ......
Round Orgs.....
Pineapple Orgs...

Total Orgs..
Grapefruit ......
Tangerines .....
Total .....


Number Boxes Sold
Exchange Compels.
1,398,202 2,878,486
105,134/, 262,690
69,763 223,725
173,331 348,6551/,
154,0871, 235,0421/2
423,539/, 1,160,536
227,483 699,396
111,491% 15,885
58,852 97,341
131,820 90,552


Average Price Per Box
Exchange Compets.
$2.89 $2.76
2.67 2.56
2.73 2.68
3.09 2.75
2.83 2.72
2.74 2.62
2.82 2.70
2.48 2.75
2.52 2.53
2.79 2.61


2,853,704 6,012,309 2.83 2.70 13c

Excluding Indian River Fruit
All auctions by varieties
419,768 784,671 2.96 2.80 16c
673,065 1,135,798 2.88 2.80 8c
324,427 994,161 2.98 2.85 13c

1,417,260 2,914,630 2.93 2.82 Ic
418,566 1,362,706 2.40 2.31 9c
310,872 527,094 2.72 2.57 15c
2,146,698 4,804,430 2.79 2.65 14c


(Table B)

PACKED FRUIT AVERAGES


Exchange average per box returns f.o.b.
fruit by months.


Tampa on packed


September ......
October .......
November ......
December ......
January ....... .
February .......
March .........
April ..........
May .........
June ..........
July .. ........
Season .........


1935-36
Orgs. Grft. Tang.
$1.71
$2.11 1.96 $1.80
2.27 1.90 3.02
2.23 1.69 2.25
2.14 1.82 1.61
2.26 1.81 1.71
2.04 1.74 2.86
2.18 1.87 2.14


1934-35
Orgs. Grft. Tang.
$2.09 $1.69
2.21 1.34 $1.99
1.70 1.31 1.80
1.67 1.23 1.66
1.72 1.23 1.31
1.81 1.32 1.92
2.08 1.27 1.98
2.38 1.49 2.46
2.01 1.25
1.33 1.12
1.57 1.40
1.88 1.31 1.65


Exchange
Premium
13c
I Ic
l ie
5c
34c
I Ic
12c
12c
27c
Ic
18c










(Table C)

CARRIER DISTRIBUTION
Rail, boat and truck volumes of citrus for last two seasons-
entire state and Exchange shipments.
STATE


1935-36
Boxes Cars
Rail *10,550,737 27,074
Boat 7,822,400 19,556
Truck 3,664,400 9,161


Percent
47.9%
35.5
16.6


Boxes
9,917,20(
8,720,40(
3,903,20(


1934-35
Cars
) 24,793
0 21,801
S 9,758


Percent
44.0%
38.7
17.3


Total 22,037,537 55,791 100.0 22,540,800 56,352 100.0

SBased on 389.7 boxes per car, 400 for rail and boat.
Last year 400 on all.


Rail 2,287,916
Boat 2,326,458
Truck 939,240


EXCHANGE
5,877 41.2%
5,815 41.9
2,348 16.9


Total 5,553,614 14,040 100.0


5,244,128 13.283 100.0


(Table D)
FLORIDA CITRUS EXCHANGE SALES
Distribution by Divisions by cars, auction and private
sales combined.
Season 1935-36
(To May )


Division
New England ........

New York ...........

Philadelphia .....

South Eastern .......

Cincinnati .. ........

Detroit ............

Mid Western .........

Mid Southern ........

South Western .......

North Western .......

Truck, Local Cannery
and Misc...........

Totals .........


Orgs.
322
5.0
2140
32.9
949
14.6
182
2.8
604
9.3
255
3.7
520
8.0
700
10.7
5
0.1
3
0.0

838
12.9


Grft.
324
8.2
890
22.5
482
12.2
52
1.3
300
7,6
114
2.9
250
6.3
159
4.0
13
0.3
57
1.4

1314
33.3


Tang. Mix.
29 195
3.4 10.9
336 714
38.8 39.8
93 321
10.7 17.9
6 83
0.7 4.6
88 150
10.1 8.4
58 56
6.7 3.1
88 83
10.1 4.6
5 139
0.6 7.8
0 3
0.0 0.2
1 2
0.1 0.1

163 46
18.8 2.6


6518 3955 867 1792 13132


2,130,140
2,218,588
895,400


5,499
5,546
2,238


40.6%
42.3
17.1


Total
870
6.6
4080
31.0
1845
14.0
323
2.5
1142
8.7
483
3.7
941
7.2
1003
7.6
21
0.2
63
0.5

2361
18.0










Florida Citrus Exchange Sales (Continued)

Season 1934-35


Division Orgs.
New England ........ 232
3.7
New York ........... 2227
35.4
Philadelphia ....... 959
15.2
South Eastern ........ 147
2.3
Cincinnati .......... 410
6.5
Detroit ....... . 178
2.8
Mid Western ........ 460
7.3
Mid Southern ........ 275
4.4
South Western ....... 38
0.6
North Western ....... 3
0.0
Truck, Local Cannery
and Mics. ......... 1370
21.8


Grft. Tang.
206 38
5.4 3.9
1081 444
28.3 45.5
427 131
11.2 13.4
22 3
0.6 0.3
307 54
8.0 5.5
195 34
5.1 3.5
320 77
8.4 7.9
40 5
1.0 0.5
8 2
0.2 0.2
104 3
2.7 0.3

1113 185
29.1 19.0


Mix. Total
84 560
6.3 4.5
579 4331
43.1 34.8
241 1758
17.9 14.1
96 268
7.1 2.2
107 878
8.0 7.1
49 456
3.6 3.7
90 947
6.7 7.6
95 415
7.1 3.3
1 49
0.1 0.4
2 112
0.1 0.9

0 2668
0.0 21.4


Totals ......... 6299


3823 976 1344 12442


(Table E)
FLORIDA CITRUS EXCHANGE PRIVATE SALES DISTRIBUTION
Season 1935-36
(As of May I, 1936, by cars)
Division Orgs. Grft. Tang. Mix. Total
New England ........ 165 93 14 24 296
8.3 10.1 17.9 4.7 8.5
New York ........... 206 117 11 85 419
10.4 12.7 14.1 16.8 12.0
Philadelphia .. ...... 137 116 5 69 327
6.9 12.6 6.4 13.6 9.4
South Eastern ....... 182 52 6 83 323
9.2 5.7 7.7 16.4 9.3
Cincinnati ............ 307 125 16 58 506
15.4 13.6 20.5 11.4 14.5
Detroit ........... 111 29 12 9 161
5.6 3.2 15.4 1.8 4.6
Mid Western ......... 169 158 8 35 370
8.5 17.2 10.3 6.9 10.6
Mid Southern ........ 700 159 5 139 1003
35.2 17.3 6.4 27.4 28.7
South Western ....... 5 13 0 3 21
0.3 1.4 0.0 0.6 0.6
North Western ....... 3 57 1 2 63
0.2 6.2 1.3 0.4 1.8


Total .......... 1985


78 507 3489











Florida Citrus Exchange Private Sales Distribution (Continued)


Division
New England ........

New York ...........

Philadelphia .. ......

South Eastern .......

Cincinnati ........

Detroit .. ..........

Mid Western .........

Mid Southern ........

South Western .......

North Western .......

Total ..........


Season 1934-35
(By cars)
Orgs. Grft. Tang. Mix. Total
112 70 13 6 201
8.9 6.5 16.9 1.4 7.1
171 226 6 44 447
13.6 21.0 7.8 10.1 15.7
176 151 12 77 416
14.0 14.0 15.6 17.7 14.6
147 22 3 96 268
11.7 2.0 3.9 22.2 9.4
174 163 15 51 403
13.9 15.1 19.4 11.8 14.2
57 93 2 21 173
4.5 8.6 2.6 4.8 6.1
103 201 16 41 361
8.2 18.7 20.8 9.4 12.7
275 40 5 95 415
21.9 3.7 6.5 21.9 14.6
38 8 2 1 49
3.1 0.7 2.6 0.2 1.7
3 104 3 2 112
0.2 9.7 3.9 0.5 3.9

1256 1078 77 434 2845


(Table F)

EXCHANGE AUCTION SALES DISTRIBUTION
Season 1935-36
(To May 1, 1936, by cars)


Division
New England ........

New York ...........

Philadelphia .. .. ....

Cincinnati .. ........

Detroit .. ..........

Mid Western .........


Totals .........


Orgs.
157
4.2
1934
52.4
812
22.0
297
8.0
144
3.9
351
9.5

3695


Grft.
231
13.4
773
44.9
366
21.3
175
10.2
85
4.9
92
5.3


Tang.
15
2.4
325
51.9
88
14.1
72
11.5
46
7.3
80
12.8


Mix.
171
13.8
629
50.8
252
20.3
92
7.4
47
3.8
48
3.9


Total
574
7.9
3661
50.3
1518
20.9
636
8.7
322
4.4
571
7.8


1722 626 1239 7282


Season 1934-35
(By cars)


Division
New England ........


Orgs.
120
3.3


Grft. Tang. Mix. Total
136 25 78 359
8.3 3.5 8.6 5.2











Exchange Auction Sales Distribution (Continued)


Division Orgs. Grft. Tang. Mix. Total
New York ........... 2056 855 438 535 3884
56.0 52.4 61.3 58.7 56.0
Philadelphia .. ...... 783 276 119 164 1342
21.3 16.9 16.7 18.0 19.3
Cincinnati .. ....... 236 144 39 56 475
6.4 8.8 5.5 6.2 6.9
Detroit .. .......... 121 102 32 28 283
3.3 6.3 4.5 3.1 4.1
Mid Western ......... 357 119 61 49 586
9.7 7.3 8.5 5.4 8.5

Totals ......... 3673 1632 714 910 6929











OFFICERS, DIRECTORS AND HEADS
OF DEPARTMENTS FLORIDA CITRUS EXCHANGE
SEASON 1935-36



John S. Taylor, President and Chairman of the Board.............-Largo
W. C. VanClief, First Vice-President Winter Haven
A. W. Hurley, Second Vice-President Winter Garden
J. O. Carr, Third Vice-President Fort Ogden
L. L. Lowry, Fourth Vice-President Tampa
C. C. Commander, General Manager Tampa
Harold Crews, Assistant General Manager Tampa
E. E. Patterson, Sales Manager Tampa
Earl Lines, Advertising Manager Tampa
L. D. Aulls, Traffic Manager Tampa
S. L. Looney, Treasurer-Comptroller Tampa
O. M. Felix, Secretary Tampa
Counts Johnson, Attorney Tampa

Sub-Exchange Director Address
Dade & Indian River...H. G. Putnam Oak Hill
DeSoto J. 0. Carr Fort Ogden
Florence W. C. VanClief Winter Haven
Hillsboro B. E. Stall, RFD No. 1 Tampa
International I L. Lowry Tampa
Lake & Marion-.........C. B. Hipson Umatilla
Lake Apopka...-........J- C. Palmer Windermere
Lake Region...............Chas. B. Anderson, 1017 S. Dakota....Tampa
Manatee I ee S. Day Bradenton
Orange Chas. A. Garrett ..Kissimmee
Pinellas John S. Taylor I argo
Polk Geo. W. Mershon, 1715 S. Fla. Av. Lakeland
Ridge D. A. Hunt I ake Wales
Scenic C. H. Walker Bartow
Seminole-Orange.........A. W. Hurley Winter Garden
St. Johns River........-..Francis P. Whitehair DeLand
Winter Haven.............H. E. Cornell Winter Haven