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Annual report of the Florida Citrus Exchange
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Permanent Link: http://ufdc.ufl.edu/UF00075941/00016
 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: 1943
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: UF00075941:00016
 Related Items
Preceded by: Annual report of the business manager of the Florida Citrus Exchange

Full Text









Annual Report
of the

FLORIDA CITRUS

EXCHANGE






/'-


1943-44

63/./8

e94?/44


General Manager












Annual Report
1943-44


EXECUTIVE OFFICERS
C. H. Walker, President
C. C. Commander, General Mgr. S. L. Looney, Treasurer-Comptroller



0


FLORIDA CITRUS EXCHANGE












OFFICERS, DIRECTORS AND DEPARTMENT HEADS
FLORIDA CITRUS EXCHANGE
SEASON 1943-1944


C. H. Walker, President and Chairman of the Board .---. Bartow
W. C. VanClief, First Vice-President' Winter Haven
P. C. Peters, Second Vice-President Winter Garden
W. O. Kirkhuff, Third Vice-President Bradenton
W. S. Buckingham, Fourth Vice-President --__---- Vero Beach
C. C. Commander, General Manager Tampa
Marvin H. Walker, Assistant General Manager -....-----_Tampa
Fred S. Johnston, Sales Manager Tampa
E. E. Gaughan, Traffic Manager Tampa
S. L. Looney, Treasurer-Comptroller Tampa
Counts Johnson, Secretary and General Counsel .---- Tampa
J. Samson, Assistant Secretary Tampa


Sub-Exchange Director Address
Clark I. J. Pemberton Jacksonville
Dundee John L. Olson Dundee
Florence W. C. VanClief Winter Haven
Ft. Pierce W. M. Moseley Fort Pierce
Indian River ------- W. S. Buckingham ------ Vero Beach
Lake County ------. J. N. Mowery Eustis
Lake Region .------ A. R. Updike Lake Wales
North Pinellas ---.-- A. V. Saurman Clearwater
Orange County --.- P. C. Peters Winter Garden
Pinellas W. 0. Kirkhuff Bradenton
Plymouth B. J. Schwind Orlando
Polk County ------- D. A. Hunt Lake Wales
Scenic C. H.-Walker Avon Park
Winter Haven ..---- George B. Aycrigg'" --.... Winter Haven
Succeded H. E. Cornell, who died September 18, 1943.










ANNUAL REPORT
1943-44

T HE 1943-44 season will long be remembered as one of the
most successful in the history of the Florida citrus industry.
More fruit has been produced and distributed, and total return
to growers have been higher, than in any previous year.
It has been an outstanding season for the Florida Citrus
Exchange, too, in the volume of fruit handled, in prices returned
for its members' fruit, in the market preference enjoyed by its
brands, and in the efficiency and economy of its many services.
Manpower and container shortages, as well as restricted
transportation services, have made extremely difficult the hand-
ling of this season's crops. The uncertainty and multiplicity of
government war-time regulations have further handicapped
packing, processing and distribution.
That it has been possible to distribute so much fruit, under
these conditions, has been due to the efficient handling of the
industry's problems with Federal agencies, to the cooperation
of container manufacturers and the railroads, and to the hard
work of those who operate packing and processing plants.

Record Production, Record Prices

There will be about 78,100,000 boxes of citrus fruit produced
in Florida this season an increase of 9,400,000 boxes, or 14
percent, over the 1942-43 crop, which was the largest produced
to that time. The marketing of this large crop at the prices re-
ceived has been possible only because
1) Consumers have had more money than ever before to
buy foods;
2) Available supplies of competing fruits like bananas, ap-
ples, peaches, pineapples, etc., have been restricted, and
3) The Federal government has purchased from 25 to 30
3
169922










percent of all citrus fruit for its armed forces and for lend-
lease export.
The importance given to citrus fruit in the government's
National Nutrition Program, as one of the seven basic foods,
and the continued advertising and promotional work of the
Florida Citrus Commission and other agencies, also have been
factors in the successful marketing of the 1943-44 crop. The
wholesale and retail trades have done a splendid job in handling
the increased volume of citrus fruit under difficult conditions.
Florida's 1943-44 orange crop will be about 7,800,000 boxes
larger than in 1942-43, its grapefruit crop about 2,200,000 boxes
larger and its tangerine crop about 600,000 boxes smaller. Since
this is an "off year" for grapefruit, the size of that crop is
unusual. Some of the increased production of grapefruit is due
to changes in fertilizing methods, which are giving greater yields
at some sacrifice in quality.
Citrus fruit production in Texas, California and Arizona
(see table, page 5) also increased this season. The yield of the
four major producing states for the 1943-44 season totals about
100,468,000 boxes of oranges and tangerines and 53,079,000
of grapefruit, a grand total of 153,547,000 boxes of citrus fruit.
In the preceding 1942-43 season the four states produced but
140,457,000 boxes of the three varieties, and in 1941-42 only
124,636,000 boxes.

Percentages Processed

The 1943-44 season has seen a further increase in the per-
centages of Florida citrus crops utilized by processing plants for
canned citrus products and citrus juice concentrates. To May
29, 1944 there had been processed 68.5 percent of all Florida
grapefruit and 21.8 percent of all Florida oranges. In 1942-43,
there was processed 64.3 percent of this state's grapefruit crop
and 16.9 percent of its orange crop.
The volume and percentage of Florida grapefruit and oranges
shipped fresh and processed in the last eight seasons is shown in
the following table:













DISPOSITION OF FLORIDA GRAPEFRUIT AND
ORANGES, 1936-37 TO 1943-44

GRAPEFRUIT
Fresh Shipments Fruit Processed Total
Season Boxes Percent Boxes Percent Production 1/
1,000 Boxes
1936-37 10,572 58.4% 6,723 37.1% 18,100
1937-38 7,750 53.1 6,157 42.1 14,600
1938-39 11,569 49.6 9,236 39.9 23,300
1939-40 6,416 40.3 8,804 55.4 15,900
1940-41 9,873 40.1 14,326 58.2 24,600
1941-42 8,238 42.9 10,147 52.8 19,200
1942-43 8,779 32.1 17,567 64.3 27,300
1943-44 2/ 9,000 30.5 19,500 66.1 29,500

ORANGES
1936-37 16,722 87.5% 622 3.3% 19,100
1937-38 20,545 85.9 1,253 5.2 23,900
1938-39 26,808 89.6 1,187 4.0 29,900
1939-40 19,817 77.4 4,200 16.4 25,600
1940-41 23,145 80.9 3,949 13.8 28,600
1941-42 21,403 78.7 4,022 14.8 27,200
1942-43 28,988 77.9 6,285 16.9 37,200
1943-44 2/ 33,000 73.3 10,000 22.2 45,000
1/ Includes all distribution, like home consumption.
2/ Estimated


UNITED STATES CITRUS PRODUCTION
FLORIDA CALIF.-ARIZ. TEXAS
Season Oranges 1/ Grapefruit Oranges Grapefruit Oranges Grapefruit
1,000 Boxes
1919-20 8,000 5,900 16,712 392 9 3
1920-21 9,400 5,800 23,831 429 5 5
1921-22 8,400 6,700 14,101 395 5 8
1922-23 10,900 7,800 21,364 454 10 35
1923-24 13,700 8,500 24,239 458 6 65
1924-25 11,300 8,900 18,566 492 17 301
1925-26 10,200 7,600 24,286 750 12 200
1926-27 11,000 8,600 28,327 792 41 361
1927-28 9,500 7,500 22,791 896 85 524
1928-29 16,500 11,300 39,258 1,183 125 753
1929-30 9,800 8,300 21,332 1,365 261 1,550
1930-31 19,200 15,800 35,318 1,690 250 1,200
1931-32 14,200 10,700 34,803 1,881 520 2,600
1932-33 16,400 11,600 34,412 1,964 325 1,440
1933-34 17,900 10,900 28,594 2,572 430 1,200
1934-35 17,600 15,200 45,217 3,407 650 2,740
1935-36 18,000 11,500 33,049 4,067 777 2,780
1936-37 22,100 18,100 30,047 2,940 2,000 9,630
1937-38 26,200 14,600 46,264 4,693 1,440 11,840
1938-39 33,300 23,300 41,850 4,624 2,815 15,670
1939-40 28,000 15,900 44,924 4,875 2,360 14,400
1940-41 31,300 24,600 51,223 4,633 2,650 13,650
1941-42 29,300 19,200 52,192 6,594 2,850 14,500
1942-43 41,400 (27,300 45,026 5,671 2,550 17,510
1943-44 2/ 45,000 29,500 52,168 7,079 3,300 17,500
1/ Includes Florida tangerines. 2/ Estimated.










Government Purchases


During the 1943-44 season the Federal government has pur-
chased more than 25 percent of the entire Florida citrus crop.
Its purchases of processed fruit supposedly have been on the
basis of prevailing market prices, and at times these purchases
have helped to stabilize fruit values, though at other times gov-
ernment prices have been below prevailing market prices. Its
purchases of fresh fruit have been on a bid basis, and the prices
paid frequently have been below average f.o.b. prices.
In Florida, as in other citrus producing areas, the govern-
ment has required canners to reserve for it specified percentages
of their 1943-44 packs. The Florida percentages were 41 per-
cent of the 1942-43 pack of grapefruit juice, 48 percent of the
1941-42 pack of orange juice, 60 percent of the 1941-42 pack
of blended grapefruit and orange juice, and 55 percent of the
1941-42 pack of grapefruit segments. Less than half of the
government orders for grapefruit segments were packed, because
of labor shortages. The 1943-44 government packs utilized
about 7,800,000 boxes of Florida grapefruit and 2,300,000 boxes
of Florida oranges.
In addition, the government purchased in Florida this season
1,225,000 gallons of orange juice concentrate and 18,000 gal-
lons of grapefruit juice concentrate, for which there were util-
ized about 2,000,000 boxes of oranges and 32,000 boxes of grape-
fruit. Its purchases of orange juice concentrate were less than
in 1942-43, when about 1,800,000 gallons were packed here.
Civilian packs of citrus juice concentrates, prohibited in 1942-
43, were permitted most of this season, but these packs have
been comparatively small.
Substantial quantities of fresh Florida oranges, grapefruit
and tangerines were purchased by the government this season
for distribution to military camps, mostly east of the Mississippi
river. Some fresh fruit also was purchased for export, but this
volume was small. Figures are not available as to the quantity
of fresh Florida fruit purchased by the government this season,
but it is believed that at times these purchases represented at least
10 percent of the state's fresh fruit shipments.

Canned Citrus Packs
At the beginning of the 1943-44 season the government
allotted unlimited tinplate for grapefruit juice, but prohibited











civilian packs of orange and blended juices and grapefruit seg-
ments, as it had in 1942-43. Later in the season it permitted
small civilian packs of orange and blended juices, and finally, in
February, it allowed unlimited civilian packs of these products.
Retailers' shelves were bare of orange and blended juices until
the new 1943-44 civilian packs arrived.
The pack of different canned citrus products by seasons,
since 1936-37, is shown in the following table:

CANNED FLORIDA CITRUS PACKS, 1936-37 TO 1943-44
Grapefruit Orange Blended Grapefruit Citrus
Season Segments Juice Juice Juice Salad
Cases of 24 No. 2 cans
1936-37. 4,058,000 498,000 272,000 3,918,000 88,000
.1937-38 3,419,000 806,000 547,000 3,370,000 85,000
1938-39 4,106,000 926,000 699,000 6,190,000 131,000
:1939-40 4,134,000 2,851,000 1,403,000 4,682,000 85,000
1940-41 3,140,000 3,078,000 2,537,000 10,647,000 330,000
1941-42 4,611,000 31466,000 2,305,000 6,180,000 274,000
1942-43 888,000 2,429,000 3,676,000 15,193,000 None 2/
1943-44 1/ 980,000 6,000,000 6,000,000 15,500,000 None 2/
1/ Estimated. 2/ No tinplate allotted for citrus salad.
Si.u.Of the estimated 1943-44 packs, the government is taking
callLthe grapefruit segments and approximately 1,663,000 cases
afcorange juice, 1,382,000 cases of blended juice and 6,229,000
cases; of grapefruit juice. This leaves for civilian distribution
approximatelyy 4,327,000 cases of orange juice, 4,618,000 cases
of blended juice and 9,271,000 cases of grapefruit juice, on the
basis of estimated packs.

Labor, Containers, Transportation

Problems of labor supply, containers and transportation have
greatly handicapped the handling and distribution of 1943-44
Florida citrus crops.
Spf(icie.t -workers were recruited, with the help of the U. S.
Employment Service,.and State Extension Service, to harvest,
pack and process the crop, though serious manpower shortages
eriously.:affected both packing and processing activities in some
Jlocalities. -The use of about 500 German war prisoners par-
tially relieved the shortage of pickers and cannery warehouse
workers during the latter part of the season. The inefficiency
of inexperienced workers has greatly increased labor costs.
Establishment of maximum wage rates for Florida citrus
harvesting employees in the early part of the season reduced










labor pirating and protected growers against much higher pick-
ing costs. The Florida WFA Wage Stabilization Board, of which
L. H. Kramer is chairman, has saved the industry from a chaotic
situation in picking wage rates by its impartial and effective
administration of this government program. The daily earnings
of pickers under these wage rates have been so high, however,
that many pickers have worked only part-time this season.
The disparity between wages of pickers and wages of pack-
ing and processing plant employees has made more difficult the
labor supply problems of packing houses and canning plants.
Maximum uniform wage rates were established by the War
Labor Board for Florida citrus packing and processing employees
on January 1, 1944, but there are still many inequities and in-
equalities in these rates. There have been no ceilings on wages
of citrus grove workers, other than harvesting employees, and
these have steadily advanced to the point where consideration is
being given to their stabilization, too.
Increases in the manufacture of wirebound citrus boxes,
despite serious labor shortages, averted what otherwise might
have been a serious shortage of containers. As it was, numerous
packing houses which did not have established sources of supply
were without new wood boxes much of the time and forced to
ship fruit either in used boxes or bags. Shipments in half-box
bags were heavily discounted at times. The associations affili-
ated with the Florida Citrus Exchange generally were able to
obtain most of the containers they needed. To May 1, 91.5 per-
cent of all Florida shipments were in new and used wood boxes,
6.1 percent in bags and 2.4 percent in paper boxes or in bulk.
The War Production Board, in requiring Texas to ship 15
percent and California 4 percent of their citrus fruit in non-
wood containers had expected Florida to use 10 percent non-
wood containers this season. The Florida percentage was predi-
cated on the assumption that most Army purchases would be in
bags., The Army has probably used bags to the fullest extent
practical, but its use of new wood boxes for distant domestic
and export shipments is partially responsible for the smaller per-
centage of bags used for all Florida shipments this season. The
lack of any provision in the new OPA fresh citrus price ceiling
regulation for the higher cost of packing consumer-size bags
also discouraged the shipment of more fruit in these small bags.
Fewer motor trucks were available for interstate shipments,
with the result that to May 29 the railroads transported 91.3
percent of Florida's 1943-44 fresh citrus movement. Carload-











ings have been heavier, refrigeration services have been restrict-
ed, and the time in transit has been lengthened, but despite these
difficult conditions the railroads, for the most part, have ren-
dered a remarkable service. Under ODT regulations, Florida
carloadings this season to May 29 have averaged 510.5 boxes
for oranges, 507.7 boxes for grapefruit and 478.5 boxes for tan-
gerines an average loading of 507.3 boxes for the three va-
rieties. Container breakage has been severe, especially at New
York, where labor for unloading has been a critical problem.

The percentage of decay has at times been heavy, and the
poor condition of fruit on arrival at markets has substantially
reduced its value. The carelessness of inexperienced harvesting
and packing employees, the rough handling of fruit in transit,
the lack of adequate refrigeration, together with unusually warm
weather much of the time, are factors which have increased
decay this season.

Citrus Price Ceilings

New price ceilings for fresh citrus fruit became effective on
Feb. 23, 1944, under amendment 19 to MPR 426. These ceil-
ings are somewhat higher on oranges, pink grapefruit, tangerines
and temple oranges than those under MPR 292, the previous reg-
ulation. The "on tree" reflections of the new maximum f.o.b.
prices, on the basis of a box of 1 3/5 bushels, are as follows:

FLORIDA "ON TREE" CEILINGS
Oranges:
Sept. 1 Feb. 29 Mar. 1 Aug. 31
Interior Florida $2.25 2.55
Indian River 2.69 2.81
Grapefruit, white:
Interior Florida 1.46 1.72
Indian River 1.96 2.22
Grapefruit, pink:
All Florida districts 1.91 2.12
Tangerines, Tangelos,
Temples, Clementines,
Satsumas and Kings:
All Florida districts 2.76 2.76
The new order permitted shippers to sell fruit either at max-
imum f.o.b. or maximum delivered prices, the latter being the
maximum f.o.b. prices plus the freight from Homestead, Florida,
and 10 cents for refrigeration. In the case of pink grapefruit,
delivered prices for Florida as well as Texas fruit were figured on
freight from Weslaco, Texas, which made possible somewhat
higher "on tree' returns for Florida pink grapefruit.










New maximum prices for canned citrus products, also es-
tablished in February, were based on maximum fruit costs of
$2.42 per box for oranges and $1.63 per box for grapefruit,
delivered at processing plants. These fruit cost figures sup-
posedly reflect "on tree' returns of $2.10 per box for processed
oranges and $1.38 per box for processed grapefruit. In the
case of canned grapefruit juice, which retained the 1942-43
ceilings, subsidies were paid for the difference between a fruit
cost of $1.04 per box delivered and whatever the canners ac-
tually paid, up to $1.63 per box delivered.
While there were repeated delays in the issuance of the new
fresh citrus ceiling prices, which were costly to growers, the new
regulation, when finally issued, was a notable victory for the
representatives of the Florida Citrus Commission, who, in co-
operation with California and Texas citrus representatives, had
fought hard and long for citrus ceilings at parity levels. OPA
said the fact that the new ceilings were at parity levels was just
a happenstance, refusing to recognize the industry's legal right
to maximum prices at levels which will reflect parity prices
to growers.
Delays on the part of the Office of Price Administration and
the Commodity Credit Corporation in working out the details of
the subsidy program on canned grapefruit juice caused what
almost became a chaotic situation in the canning industry, and
cost Florida growers many hundreds of thousands of dollars.
The inefficiency of Federal agencies in handling price control
problems of perishable products was fully revealed in the dilatory
handling of canned citrus price ceiling problems this season.
While it was far from perfect, and had to be amended short-
ly after it was issued, the new fresh citrus price regulation repre-
sented a considerable improvement over the previous one, in
that it simplified and reduced the number of maximum prices
at f.o.b., wholesale and retail levels. But it has not permitted the
single national retail ceilings which the industry sought, so con-
sumers everywhere could at all times know these maximum
prices. The new order has, however, almost eliminated "black
market" activities in fresh citrus fruit, which had threatened
to destroy established marketing and distribution systems at the
opening of the 1943-44 season.
When the new ceiling prices became effective many Florida
growers thought they would receive such prices for their fruit.
Some have, but the average returns of all Florida growers have










been substantially less because canners paid less than ceiling
prices for much processed fruit, and because fresh fruit markets
have been below ceilings much of the time due to heavy ship-
ments, quality, decay, and other factors. Members of the Flor-
ida Citrus Exchange have received returns above the state aver-
age, however, because they received the full market value of their
fruit, plus the savings in packing and handling costs made pos-
sible by their cooperative effort.

Citrus Research
In the field of research, the most significant development
this season has been in the conception of a new product frozen
citrus juice concentrate. Credit for the idea of freezing a 3-to-1
concentration of citrus juice goes to Dr. A. L. Stahl, of the Uni-
versity of Florida experiment station, though it was Dr. L. G.
MacDowell, research director of the Florida Citrus Commission,
who first envisioned its commercial possibilities.
How important frozen citrus concentrates become in the
distribution of Florida citrus fruit remains to be seen, but it is
believed these new products may find a substantial outlet with
the institutional trade, with soda fountains and, in time, through
the packaged frozen food industry. Two plants for the manu-
facture of frozen citrus concentrates are being equipped at
Orlando, and the University of Florida is establishing a pilot
plant at Gainesville to perfect the processing and freezing meth-
ods. The Florida Citrus Exchange is taking an active interest
in this new product, with the view to utilizing it for the benefit
of its members if it proves to be practical.
Studies of processes for making a dehydrated or powdered
orange juice also have been continued. If it can be perfected,
a product of this type might greatly extend the distribution of
Florida fruit in future years. Further improvements in the
orange juice vending machine of the Florida Citrus Exchange
have been delayed, because of the unavailability of necessary ma-
terials, but this device for serving fresh Florida orange juice
directly to consumers will be developed further when conditions
permit.
The Florida Citrus Commission is extending its research in
vital citrus problems, but, like other government agencies, its
available funds for this purpose are totally inadequate. The
need for immediate additional research in new products and by-
products of citrus fruit is urgent. The future welfare of all










Florida citrus growers may depend upon the extent and findings
of research in the next few years.

Future Distribution Problems
No one knows what the future holds for the citrus industry.
Economic conditions, as affected by readjustments after the
war, will inevitably affect citrus as well as other agricultural
industries.
The steadily increasing production of citrus fruit in Florida,
as well as in other producing areas, will represent a serious prob-
lem in future years. Continued plantings of new groves in
Florida, which have been extensive the last two years because
of the reduced expense of such plantings made possible by Fed-
eral tax regulations, will increase this state's production to well
more than 100,000,000 boxes annually in future years, barring
weather hazards.
A lessened demand for both fresh and processed citrus fruit
is inevitable during the period of readjustment following the
war. The government cannot be expected to continue to pur-
chase the large quantities of citrus fruit that it is taking today,
and consumers will not have as much money to buy citrus fruit
and other foods when employment declines. The availability of
greater supplies of competing fruits, like bananas, apples, peaches,
pineapples,'etc., will, of course, also affect the future distribu-
tion and price levels of citrus fruit. Such increased supplies of
competing fruits may occur next season.
Changes in supply and demand, and in economic conditions,
may come sooner than expected. The citrus industry must find
new ways to market more fruit. In addition to research in new
products and by-products, there should be greatly extended our
advertising and promotion of fresh and processed citrus fruit.
The present State fund for such promotional work will be inade-
quate to increase the consumption of citrus fruit to the extent
that will be necessary in future years.
If, in the years ahead, the production of citrus fruit is to be
profitable to growers, there must be effective control of the dis-
tribution and marketing of our crops, both fresh and processed.
Research and advertising, as much as they are needed, will not
solve the future problems of the industry alone. The Florida
industry must effectively coordinate the marketing of its fruit,
so as to be able to work with the California and Texas industries,
for the cooperation of all producing areas will be needed to find
ways to market future crops at profitable prices.










EXCHANGE SEASON

T HE Florida Citrus Exchange and its affiliated associations
will complete the 1943-44 season in the best financial condition
the organization as a whole has ever achieved. Many of the
associations, like the Exchange, are entirely out of debt and have
accumulated reasonable reserves to finance future operations. The
current financial condition of every Exchange association is good.
The grower-members of the Florida Citrus Exchange and its
affiliates also are in excellent financial circumstances. The
prices they have received for their fruit during the past two sea-
sons have enabled many of them to retire all indebtedness against
their properties. Most grower-members also are making some
preparation, in their financial affairs, for the uncertain years
ahead.
While the volume of fruit marketed by the Florida Citrus
Exchange has continued to increase during the 1943-44 season,
little of the increased tonnage has come from new members.
Every affiliated association has had to refuse applications for
membership, because labor and container shortages have .made
it impossible to handle most of the additional fruit offered.
The Exchange's policy this season, as in 1942-43, has been
to serve first those members who own its packing and marketing
facilities, and not to accept new members if by doing so there
will be lessened in any way the efficiency of its service to its
established grower-membership. This policy has made many
growers who do not have a home for their fruit appreciate the
value of Exchange membership.
Until the shipping season ends, in July, accurate compari-
sons cannot be made of the prices received by Exchange and
other growers during the 1943-44 season. But the preliminary
reports of affiliated associations show returns to Exchange grow-
ers which in nearly every instance are substantially higher than
the returns received by most other growers. The differences
frequently are 25 cents a box and as high as 50 cents.
Particularly fortunate this season were those Exchange asso-
ciations with cooperative canning facilities, for their growers
will receive close to ceiling prices for processed fruit while grow-
ers who sold their processed oranges for cash received only half
as much, for several months. Cooperation in canning, as in










fresh fruit marketing, has been shown to be the only way in
which growers can be sure of receiving the full market value
for their crops.

The experience of the industry with prices paid by canners
for processed fruit this season clearly shows that if growers do
not control the canning business the canning business will in
time control the growers. The interest of commercial canners
is in processing profits, not in the production profits of growers.
This was evident when they paid growers $1 a box less than the
ceiling price for processed oranges this season at a time when they
were selling the canned orange juice packed from this fruit at
ceiling levels.

Cooperation has benefitted Exchange growers in other ways,
too, this season. In periods of critical labor shortages Exchange
associations have loaned picking crews to each other, thus avoid-
ing fruit losses. The same degree of cooperation has prevailed
in periods of container shortages. Most of the container prob-
lems of affiliated associations were met this way, though in some
instances the Exchange was able to obtain additional containers
from other sources.

Sales Department

In marketing 1943-44 crops, the Sales Department has not
only obtained the highest possible prices but has further devel-
oped its trade connections, in both auction and private markets.
In the early part of the season, when much fruit sold at "black
market" prices, the Sales Department protected regular custom-
ers of Exchange brands, to the extent that its shipments per-
mitted. The few dollars made by some other shippers who
played the "black market" were lost to them many times by the
discounts they took on their fruit when fruit supplies became
plentiful. The value of Exchange brands, and the effectiveness
of its marketing methods, have been greatly enhanced as a result
of these things.

That more fruit has been sold by the Exchange at private
sale this season is due partly to market conditions when prices
have been at ceiling levels. The total volume of fruit sold by
the Sales Department to May 27 this year is substantially greater
than sales to May 27 last year, and the percentage sold at private
sale has increased from 53.9 to 62.5 percent. The following
table shows the trend of auction and private sales:












SALES THROUGH TAMPA OFFICE
Season 1943-44" Season 1942-43*
Boxes Percent Boxes Percent
Auction sales 2,974,938 37.5 3,925,795 46.1
Private sales 4,949,117 62.5 4,589,122 53.9

Total sales 7,924,055 100.0 8,514,917 100.0
*1943-44 sales to May 27; 1942-43 sales for entire season.

The percentages of various varieties handled by the Sales
Department thus far this season have varied little from 1942-43
percentages. The following table shows sales by varieties to
May 27 this year compared with sales to May 27 last year, for
the State and the Exchange:

STATE AND EXCHANGE CARLOT SHIPMENTS
(Through May 27)
STATE TOTALS:
1943-44 1942-43 Increase Percent
Oranges 60,514 54,180 6,334 10.5
Grapefruit 17,457 17,594 (137) (0.8)
Tangerines 7,066 8,055 (989) (14.0)

Total 85,037 79,829 5,208 6.1
EXCHANGE TOTALS: '
Oranges 10,695 9,783 912 8.5
Grapefruit 4,409 4,451 (42) (0.9)
Tangerines 1,291 1,837 (546) (4.3)

Total 16,395 16,071 324 2.0
Parenthesis indicates decrease; shipments do not include cannery fruit.
The trend in fresh citrus prices this season, compared with
1942-43 prices, is shown by the following auction averages of
Florida, California and Texas fruit, to May 27:

AUCTION AVERAGES FOR FLORIDA, CALIFORNIA
AND TEXAS (To May 27)
FLORIDA: 1943-44 1942-43
Interior oranges, standard boxes $3.86 $3.90
Interior oranges, wirebound boxes 3.67 3.61
Indian River oranges, standard boxes 4.24 4.07
Interior seed grapefruit, standard boxes 3.31 2.72
Interior seed grapefruit, wirebound boxes 2.81 2.26
Indian River seed grapefruit, standard boxes .._ .-..... 3.24 2.90
Interior seedless grapefruit, standard boxes 3.36 2.95
Interior seedless grapefruit, wirebound boxes-------- ---- 3.14 2.88
Indian River seedless grapefruit, standard 3.82 3.64
Tangerines, all districts 4.46 3.60
CALIFORNIA:
Navel oranges 4.78 5.16
Valencia oranges 5.44 5.44
TEXAS:
Seedless grapefruit 3.04 2.91










Advertising
Store posters featuring Seald-Sweet and Mor-juce oranges,
grapefruit and tangerines were distributed in principal markets.
They are designed to take the fullest advantage of the State's
advertising of citrus fruit, and to make consumers more con-
scious of the Seald-Sweet and Mor-juce brands.
Indian River members of the Florida Citrus Exchange con-
tinued to advertise their Florigold brand, using time on the
McCann Hour of WOR, New York radio station reaching
200,000 listeners daily; using time on a 10-minute Jewish lan-
guage news broadcast each Monday, Wednesday and Friday over
WEVD, another New York. station, and time on a Boston food
hour radio program which reaches many New England homes.
In addition, newspaper advertising was used in four New York
Jewish newspapers, and dealer service men were maintained in
New York and Philadelphia.
The value of this advertising is reflected in the premium en-
joyed by Florigold fruit in the New York, Boston and Phila-
delphia markets. The effective results achieved by this adver-
tising would not have been possible, however, but for the fact
that sufficient supplies of Florigold fruit were kept on these
markets and standards of grade and pack maintained throughout
the season.
Traffic Department
The Traffic Department has handled many new problems
this season resulting from transportation and refrigeration short-
ages and new government regulations. Keeping Exchange asso-
ciations and associate shippers advised on changing transporta-
tion conditions, to enable them to handle their fruit to the best
advantage, has been an important service. Developments of
interest this season include the following:
The 3 percent rate increase on citrus fruit authorized by the
Interstate Commerce Commission, effective May 18, 1942 and
suspended until July 1, 1944, has again been suspended until
January 1, 1945.
Rate increases ranging from 2 to 10 cents per 100 pounds
proposed by Southern carriers on citrus fruit in ventilated box
cars to Southern territory, originally scheduled to become effec-
tive May 14, 1943, and suspended on protest of Florida shippers,
the War Food Administration, the Office of Price Administra-
tion and others until December 14, 1943, were found by the










Interstate Commerce Commission, in a decision released February
in I & S Docket No. 5223, to be unjust and unreasonable and
ordered cancelled. This was an important saving in freight
charges to the Florida citrus industry.
As refrigerator car shortages became more serious the Inter-
state Commerce Commission on January 16, 1944 prohibited the
use of refrigerator cars for Florida citrus fruit shipments destined
to points south of the Ohio and Potomac rivers and east of the
Mississippi river. This order remained in effect until March 20,
causing heavy losses on southeastern mid-season orange ship-
ments, and was finally modified only because of vigorous protests
of the Florida Citrus Exchange. Restrictions or refrigerator
service have been severe throughout the season, and until May
20 standard refrigeration could be used only on tangerines and
Temple oranges. On May 28 the Interstate Commerce Com-
mission restricted icing on standard refrigeration service to three-
fourths of bunker capacity at initial icing stations and all re-
icing stations except where half-stage grate cars were available
for half-stage icing service.
In June 1942 the railroads withdrew all guaranteed perish-
able freight schedules and since then have refused payment of
claims based on transportation delays. To secure some compro-
mise adjustment of these claims a national committee consisting
of traffic representatives from large shipping organizations and
receivers, known as the National Fruit and Vegetable Claims
Committee, was formed and several meetings have been held
with rail carriers, but so far no agreement has been reached for
settlement of this class of claims. Unless an agreement is reached
in the next few months, it will be necessary to file suit for the
collection of such delay claims. For the 1942-43 season the
Florida Citrus Exchange has about 400 delay claims pefiding for
its affiliated associations and associate shippers, involving about
$80,000.

Law Department
Numerous regulations have been issued by Federal govern-
ment agencies during the 1943-44 season which affect the oper-
ations of the Florida Citrus Exchange and its affiliated associa-
tions and associate shippers. These have included price ceiling
and service charge regulations, wage stabilization regulations,
container regulations, etc. Provisions of the 1943 Revenue Act
also affect the operations of cooperative associations and require
the filing of information returns with the Bureau of Internal










Revenue. In all these matters, the Law Department has served
the Exchange and its members.
In the litigation over social security taxes paid by affiliates
of the Florida Citrus Exchange prior to 1940, which was started
last year, United States District Judge Dozier A. DeVane held
that social security taxes paid on citrus grove workers are re-
coverable, but he also ruled that citrus packing house employees
are not agricultural workers and that social security taxes paid
on these workers therefore are not recoverable. The case has
been appealed.

Growers Loan and Guaranty Company
The year ending April 30, 1944 was the 27th in the financ-
ing service of the Growers Loan and Guaranty Company to the
members of the Florida Citrus Exchange. During this period
its loans have approximated $42,700,000, with a loss ratio com-
paring most favorably with similar financing institutions.
The volume of loans in the 1943-44 fiscal year, including
trade acceptance discounted by the Exchange Supply Company,
amounted to6$1,716,768.21, an increase of $403,890.43 com-
,pared with loans the previous year. Loans outstanding on April
30, 1944 totalled $713,763.10, compared with loans outstanding
of $382,140.40 on the same date the year before.
On April 30 this year, cash in banks amounted to $522,-
248.91, and liabilities, copnisting entirely of an escrow agreement
fqnd and a fund left on deposit by a borrower, amounted to
$77,156.66. n' April 30 last ypar, cash in banks and U. S.
Treasury Certificates amounted to $373,556.55, and liabilities
consisting of accounts payable only amount to approximately
$100,0,0.
The Company's contingent liability as guqyantor of Federal
Farm Board mortgages on packing plants, as of April 30, 1943,
amounted to $293,909.82. This loan was paid in full in July,
1943, and the Company has no contingent liability a this time.
The importance and value of the services of the growers
Loan and Guaranty Company, in financing sound packiqg and
grove operations of Florida Citrus Exchange members, are shQwn
by its record of 1943-44 business.
Exchange Supply Company
The Exchange Supply Company will complete this season
its 28th year of service to members of the Florida Citrus Ex-











change as a cooperative purchasing organization. During the
1943-44 season it has continued to purchase for its members
various grove and packing house supplies, and to assist them in
obtaining materials needed for their operations.

Substantial savings have been made in the cost of supplies
handled by the Exchange Supply Company this season, despite
the unusual conditions caused by the war. However, its greatest
value continues to be its stabilizing influence on the cost of
packing supplies generally which benefits not only its mem-
bers but everyone in the industry.


FRUIT PRODUCTION: UNITED STATES, 1919-43
TONS
MILLIONSI
Total all fruits







12



Total other than citrus*

4

Total citrus fruits
0 I I I I I I I I I I I I I I I I 1 1 1 1
1919 1924 1929 1934 1939 194,
INCLUDES APPLES, PEACHES PEARS. GRAPES. CHERRIES. PLUMS PRUNES. APICOTS. FIGS OLIVES
PINEAPPLES. AVOCADOS CRANIERRIES. DATES. PERSIMMONS AND POMEGRANATES













COMPARISON OF ORANGE SHIPMENTS, BY WEEKS,
FROM FLORIDA AND CALIFORNIA

1942-43 AND 1943-44

1943-44 1942-43
Shipments Cars Shipments Cars
Week Florida* Calif. Total Florida** Calif. Total
Oct. 2 1 1,625 1,626 2 1,776 1,778
9 2 1,480 1,482 11 1,597 1,608
16 48 1,264 1,312 42 1,541 1,583
23 327 842 1,169 309 1,416 1,725
30 839 840 1,679 707 1,138 1,845
Nov. 6 1,456 590 2,046 948 903 1,851
13 1,923 295 2,218 1,154 713 1,867
20 2,546 508 3,054 1,411 591 2,002
27 2,361 1,251 3,612 1,204 567 1,771
Dec. 4 1,981 1,904 3,885 1,324 1,025 2,349
11 2,569 2,231 4,800 1,897 1,642 3,539
S 18 2,754 1,647 4,401 2,859 1,598 4,457
25 1,310 1,832 3,142 1,283 1,086 2,369
Jan. 1 1,199 1,561 2,760 1,124 1,284 2,408
8 1,591 1,566 3,157 1,710 1,499 3,209
S 15 1,722 2,006 3,728 1,447 1,309 2,756
22 1,768 1,275 3,045 1,329 1,191 2,520
29 1,975 1,524 3,499 1,534 622 2,156
Feb. 5 1,893 1,547 3,440 1,571 1,169 2,740
12 1,888 1,739 3,627 1,650 941 2,591
19 1,817 1,653 3,470 1,941 1,287 3,228
26 2,109 1,078 3,187 1,962 795 2,757
Mar. 4 2,052 1,074 3,126 2,072 950 3,022
11 1,895 1,801 3,696 2,465 1,160 3,625
18 2,136 1,718 3,854 2,602 1,416 4,018
25 1,943 1,945 3,888 2,511 1,397 3,908
Apr. 1 2,354 1,914 4,268 2,396 1,423 3,819
8 2,414 1,780 4,194 2,274 845 3,119
15 2,304 1,423 3,727 2,081 784 2,865
22 1,983 1,862 3,845 2,200 1,581 3,781
29 1,719 1,925 3,644 2,048 1,551 3,599
May 6 2,022 1,712 3,734 1,976 1,683 3,659
13 2,071 2,008 4,079 1,741 1,975 3,716
20 1,909 2,200 4,109 1,194 1,871 3,065
27 1,630 2,310 3,940 1,289 1,874 3,163

Florida 1943-44 average orange carloading, 510.5 boxes.

*"' Florida 1942-43 average orange carloading, 494.6 boxes.














COMPARISON OF GRAPEFRUIT SHIPMENTS, BY WEEKS

FROM FLORIDA AND TEXAS

1942-43 AND 1943-44


1943-44
Shipments Cars
Week Florida* Texas
Sept. 18 2 -
26 -
Oct. 2 -
9 3 -
16 148 65
23 329 509
30 367 679
Nov. 6 429 811
13 598 1,017
20 527 958
27 473 760
Dec. 4 382 545
11 352 838
18 356 582
25 193 369
Jan. 1 373 476
8 547 801
15 624 800
22 432 802
29 413 750
Feb. 5 438 733
12 531 697
19 538 826
26 579 811
Mar. 4 573 703
11 568 497
18 646 619
25 688 598
Apr. 1 751 542
8 653 344
15 672 337
22 717 297
29 762 258
May 6 870 216
13 761 139
20 625 60
27 548 7


Total
2


3
213
838
1,046
1,240
1,615
1,485
1,233
927
1,190
938
562
849
1,348
1,424
1,234
1,163
1,171
1,228
1,364
1,390
1,276
1,065
1,265
1,286
1,293
997
1,009
1,014
1,020
1,086
900
685
555


1942-43
Shipments Cars
Florida** Texas Total


5 4 9
187 328 515
589 631 1,220
502 546 1,048
344 629 973
313 693 1,006
359 692 1,051
406 753 1,159
384 603 987
333 586 919
326 716 1,042
371 654 1,025
259 357 616
389 512 901
473 379 852
512 644 1,156
515 1,089 1,604
531 928 1,459
513 801 1,314
459 709 1,168
466 724 1,190
499 733 1,232
522 709 1,231
762 857 1,619
916 773 1,689
928 623 1,551
800 580 1,380
700 468 1,168
635 385 1,020
639 271 910
667 313 980
714 286 1,000
678 175 853
420 169 589
493 69 562


* Florida 1943-44 average grapefruit carloading, 507.9 boxes.

"" Florida 1942-43 average grapefruit carloading, 475.5 boxes.