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Annual report of the Florida Citrus Exchange
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Permanent Link: http://ufdc.ufl.edu/UF00075941/00018
 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: 1945
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: UF00075941:00018
 Related Items
Preceded by: Annual report of the business manager of the Florida Citrus Exchange

Full Text

2..


Annual Report
of the

FLORIDA CITRUS
EXCHANGE


1945-46


General Manager


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Annual Report
1945-46


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



0


FLORIDA CITRUS EXCHANGE








iq /q. ,




OFFICERS, DIRECTORS AND DEPARTMENT HEADS
FLORIDA CITRUS EXCHANGE

SEASON 1945-46

C. H. Walker, President and Chairman of the Board ... Bartow
W. C. Van Clief, First Vice-President -____ Winter Haven
P. C. Peters, Second Vice-President Winter Garden
W. O. Kirkhuff, Third Vice-President Bradenton
H. C. Allan, Fourth Vice-President Oak Hill
C. C. Commander, 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


I. J. Pemberton
John L. Olson
W. C. Van Clief
e ..----..-._ W. M. Moseley ____-.__
ver -.----- H. C. Allan .
nty ... J. B. Prevatt
on --- -- A. R. Updike
fellas ---.. A. V. Saurman
county .--- P. C. Peters
W. O. Kirkhuff


ity --

aven


ADDRESS
Avon Park
Jacksonville
-____ Dundee
Winter Haven
SFort Pierce
Oak Hill
Tavares
Lake Wales
Clearwater
Winter Garden
Bradenton


Armer C. Johnson Mt. Dora
D. A. Hunt Lake Wales
C. H. Walker Avon Park
George B. Aycrigg ------. Winter Haven


SUB-EXCHANGE DIRECTOR
Avon Park --------E. G. Todd


Clark
Dundee
Florence
Fort Pierc
Indian Ri
Lake Cou
Lake Regi
North Pin
Orange C
Pinellas
Plymouth
Polk Cour
Scenic
Winter H










ANNUAL REPORT
1945-46

IN the first season following World War II, Florida has mar-
keted more fruit than in any previous season. The volume of
production this season will exceed 85,000,000 boxes, compared
with productions of 69,000,000 boxes in 1944-45 and 80,-
800,000 boxes in 1943-44.
While returns per box for some varieties will not be as high
as in 1944-45, when price ceilings were higher on early varieties,
because of the greater volume of fruit produced this season the
total returns to Florida growers will greatly exceed those of any
previous year.
Purchasing power continued at a record level and consum-
ers showed that they will purchase citrus fruits freely if they
have the money. Pre-season apprehensions of extensive post-
war unemployment, and of greater competition from other
fruits, did not materialize.
The greatest difficulty in marketing resulted from the mul-
tiplicity of late blooms. About 30 percent of all Florida fruit
was from blooms appearing after April 1, 1945. The later
maturity of this fruit delayed harvesting and tended to stabilize
early season prices at higher levels.
More oranges and grapefruit were processed than in any
other year. The percentage of oranges processed increased from
33.3 percent last season to 36 percent this season, and the per-
centage of grapefruit processed continued at 69 percent -
despite cancellation of government orders for fruit juices.
Even without war prisoners and foreign workers, labor was
more plentiful. Most citrus wage rates were advanced during
the season, with the relaxation of government controls. Wood
boxes were more plentiful, and the supply of cans for processing
has been adequate, to date, despite rationing during the steel
and coal strikes.
Factors Favoring Record Return
Most citrus people were apprehensive, a year ago, that diffi-
culties would be experienced in marketing 1945-46 citrus crops.
These fears, supported by government economists, were based
mostly on the fact that the government, which bought 14,-
000,000 boxes of Florida fruit in 1944-45, would buy prac-
tically none this season, and on official forecasts of an unem-


192973










ployment of 11,000,000 people in the first year of the post-war
re-adjustment period. Competing fruits also were expected to
be in greater supply.
Government purchases of citrus fruits were but a small frac-
tion of their volume in the war years, but the greater supply
remaining for civilian distribution was readily taken by the
consumers of this country. Unemployment did not exceed
2,500,000 at any time during the season, even in the period of
widespread labor strikes, and the supply of competing fruits was
only slightly larger than in the preceding season.
An important factor affecting Florida orange prices was
the small production and the small sizes of the California Va-
lencia orange crop, both last summer and this summer. Cali-
fornia crop conditions enhanced the consumer demand for
Florida oranges in both the opening and closing months of the
1945-46 season. Other important factors were the short supply
of apples, resulting from the 1945 freeze, and the continued
light supplies of bananas, canned tomato juice, canned pine-
apple juice, canned peaches, etc.
Maximum prices of canned citrus products were removed
early in the season, but prices paid by canners for oranges did
not exceed former ceiling reflections until the last few months
and then went no higher than they did under ceilings a year
ago. Price ceilings on fresh citrus fruits were suspended from
November 19, 1945 to January 4, 1946. They were reinstated
because orange and tangerine prices advanced too high, due to
light supplies and abnormal Thanksgiving and Christmas de-
mands for these fruits.
Undoubtedly the greatest factor affecting the record return
of Florida growers this season was the fact that consumers, with
more money than they have ever had before, are eating more
and better foods. Most of the increased consumption of citrus
fruits this season has been by families which formerly had
smaller incomes. The 1945-46 season has demonstrated that
these people want as much citrus fruit as other people. Some
competent food observers believe they never again will be satis-
fied with lesser quantities.
Other Significant Developments
In the field of processing, the most notable development
this season was the first successful, commercial canning of tan-
gerine juice. The processing concern which initiated this prod-
uct during the season utilized more than 500,000 boxes of tan-
gerines, mostly of grades and sizes which could not have been































PART OF THE EXHIBIT OF THE FLORIDA CITRUS EXCHANGE AT
THE 1946 FLORIDA ORANGE FESTIVAL, AT WINTER HAVEN

marketed otherwise. Its volume would have been greater if it
could have obtained more fruit. Consumer acceptance of the
new product has been good. Other processors are installing
equipment to pack tangerine juice next season. This new outlet
will greatly expand the distribution of tangerines and, with the
supply comparatively limited, makes this variety one of the
most promising of profit in the years ahead.

The canning of grapefruit sections for civilian distribution,
prohibited during most of the war because of military require-
ments, was resumed this season, but the volume packed was lim-
ited by the availability of labor for sectionizing the fruit. Sev-
eral people are working on mechanical devices to sectionize
grapefruit for canning, but as yet no such device has been per-
fected. The demand for grapefruit sections far exceeded the
volume packed this season. Numerous canners, who heretofore
packed only citrus juices, are building and equipping section-
izing plants, and it is believed that in another year or two an
appreciable percentage of processed Florida grapefruit will be
sectionized. The development of new packs of citrus fruit
salads also is anticipated.










The distribution of frozen concentrated orange juice, started
last season, continues to expand. The distribution of this prod-
uct will exceed several hundred thousand gallons this season,
compared with a distribution of about 50,000 gallons in 1944-
45. Even greater increases in the distribution of this product
are expected, with more processors and distributors entering the
field. The Plymouth plant of Vacuum Foods Corporation start-
ed packing frozen concentrated orange juice during the latter
months of the present season, and expects to also produce dehy-
drated, or powdered, orange juice next season.
In the field of research, the most notable development this
season was the discovery that thiourea will control stem end
decay, which always has been one of the most serious problems
in the distribution of fresh Florida fruit. Test shipments made
with the approval of Federal authorities proved that thiourea
treatments almost completely control this decay. Permission
to use the substance commercially for this purpose has not yet
been given by the United States Food and Drug Administration,
pending further tests to prove that the quantities used in the
treatment of citrus fruits are harmless. The control of stem end
decay would solve one of the greatest problems in the distribu-
tion and sale of fresh Florida fruit.
At the State Cattle Experiment Station in Hardee County;
a three-month test was conducted this season to establish the
value of feeding waste citrus fruit to range cattle in the winter
months, when pasture feeding is limited. Whole grapefruit
were fed to cattle in this test, with detailed checks on the pound-
age consumed and the weight gains of the cattle. While details
of the test have not yet been published, it is reported that the
cattle thrived on their grapefruit diet. Florida cattlemen are
interested in the possibility of feeding waste citrus fruit to their
herds in the winter months, when pasture grasses are inadequate.
The Hardee County tests may offer a basis, in the years ahead,
for determining the value of waste grapefruit as a cattle feed.

Pending Industry Problems
Freight Rates. The railroads have asked the Interstate Com-
merce Commission for permission to raise their freight rates on
citrus fruits 15 cents per 100 pounds, while the War Shipping
Administration has requested an increase of 20 cents per box
on rail rates of Florida fruit to North Atlantic ports, with a
truck-boat rate to these ports 7 cents a box lower. Hearings

















Average Tree-to-Car Costs

of Florida Citrus Fruit

1938-39 and 1944-45


1938-39 1944-45 Increase or
Season Season Decrease in
/1 /2 Costs

- - Cents per 1-3/5 bu. - -


Oranges:
Materials 22.31
Labor 12.51
Salaries 3.00
Other operating Costs 7.63
Fixed Costs including
taxes and assessments 6.90
Picking 7.42
Hauling 5.74
Selling Costs -.............. 13.00

Total "Tree to Car" Costs 78.51
Grapefruit:
Materials 23.43
Labor 9.53
Salaries 2.79
Other Operating Costs 4.53
Fixed Costs including
taxes and assessments 7.62
Picking 4.52
Hauling 5.76
Selling Costs ..........----. 11.00

Total "Tree to Car" Costs 69.18
Tangerines:
Materials --- .......---- 35.44
Labor 20.75
Salaries 4.73
Other Operating Costs 7.26
Fixed Costs -including
taxes and assessments 13.99
Picking 10.89
Hauling 5.94
Selling Costs ----- .. 13.00

Total "Tree to Car" Costs 112.00


36.33
21.81
4.04
11.61

6.99
20.28
12.29
10.03

123.38

26.88
18.12
3.98
7.59

8.12
12.84
12.09
9.58

109.20

51.63
30.81
3.81
13.11

12.27
35.55
13.28
9.13

169.59


14.02
9.30
1.04
3.98

0.09
12.86
6.55
2.97

44.87

13.45
8.59
1.19
3.06

0.50
8.32
.6.33
1.42

40.02

16.19
10.06
0.92
5.85

1.72
24.66
7.34
3.87

57.59


NOTE: Above costs, in case of oranges and grapefruit, include fruit
packed in Standard and Bruce Boxes only; in the case of tan-
gerines, fruit packed in 4/5 bu. nailed and 4/5 bu. Bruce.
/1 Data from publication "Cost of Handling Florida Citrus for
the 1938-39 Season", released by U. S. Department of Agri-
culture, January, 1940.
/2 Data developed by Florida Citrus Commission, March 1946.










have started on the railroad's request for a general rate increase
and it is expected that some increase will be granted to compen-
sate the railroads for their higher wages. The hearing on higher
boat rates has been delayed, meanwhile. Operators of the boat
lines contend they must have an increase before they can resume
operations, and the War Shipping Administration is supporting
them. The railroads are opposing the proposed 7-cent differ-
ential between rail and boat rates, however, in their effort to
retain as much as possible of the Florida citrus business against
boat competition in future years. A general increase in railroad
freight rates will not affect the competitive positions of Florida,
Texas and California, but an additional increase in rates on
Florida shipments to North Atlantic ports would lessen this
State's competitive advantage over Texas and California in this
important marketing territory.
Canning Standards. The United States Food and Drug Ad-
ministration has advised the canning industry that it expects to
hold a public hearing within a year on the establishment of
standards of identity and quality for canned citrus products.
The present AMS grades undoubtedly would be revised in the
establishment of such standards. The experiences of the 1945-
46 season have demonstrated the need for practical, adequate
standards of quality to make for greater uniformity in canned
citrus products. With the mixing by canners of fruit of dif-
ferent varieties, and from different blooms, there has been a
wide range in the quality of canned citrus products espe-
cially blended orange and grapefruit juice. To meet the future
competition of other fruit juices, it is essential that there be
standards of quality for citrus products which will meet the
favor of the consuming public. This is one of the most com-
plex, as well as one of the most important problems of the Flor-
ida citrus industry, affecting not only canners but growers, too.

.Consumer Packages. The use of 8-pound bags for Florida
oranges continued to increase this season, and would have in-
creased more if more bags could have been obtained. Other
plans for consumer packages of citrus fruits were delayed because
of material shortages and transportation difficulties. It is evi-
dent that the trend in the consumer packaging of citrus fruits,
and other fruits and vegetables, will continue. More study is
being given to this form of distribution by large retail outlets
in northern markets than by most shippers. Consumer pack-
ages undoubtedly will feature the merchandising of fresh citrus
fruits in the more highly competitive years ahead. The devel-










opment of new consumer packaging practices may affect pres-
ent packing and distributing methods, to a large extent.

Foreign Market Opportunities
The shipment of approximately 100,000 boxes of fresh Flor-
ida oranges to Sweden this spring has revived interest in the pos-
sibility of developing foreign markets for future crops. Smaller
shipments of oranges, and some canned citrus juice, also went
to Holland and Belgium, but thus far Great Britain, our biggest
pre-war foreign customer, has taken no citrus fruits from us,
getting its supplies from Spain, Palestine and South Africa.
The reopening of British markets to United States citrus
fruits apparently depends upon the loan of $3,750,000,000 by
the United States to Great Britain. Under the loan agreement
the British agree, within one year, to abolish their sterling bloc
and re-establish foreign exchange in all currencies. They prob-
ably will limit their imports for a while, but under the loan
agreement United States exporters would get their pre-war pro-
portion of any citrus fruit purchases that are authorized. Flor-


THIS 2/,-YEAR-OLD HEREFORD BRAHMAN BULL CONSUMED OVER 60
POUNDS OF GRAPEFRUIT A DAY IN STATE FEEDING TESTS
(Photo by Parade Publications, Inc.)










ida sold about 2,500,000 cases of canned grapefruit sections in
the British Isles annually, before the war, and about 500,000
boxes of fresh grapefruit and oranges.
Outside of Great Britain, the Scandinavian and coastal Eu-
ropean countries are believed to offer the greatest opportunities
for developing markets for United States citrus fruits. The
development of other European markets will be delayed until
normal trade conditions can be re-established. These countries
have never consumed much fresh citrus fruit, and canned citrus
products are unknown to them. Production of citrus fruits in
Spain, Palestine and the Mediterranean countries is far less than
before the war. When trade conditions improve, Florida may
be able to develop markets for appreciable volumes of citrus
fruits in these countries, though an extensive merchandising
program may be needed to introduce its products.

Fresh Versus Processed Fruit
Average tree-to-car costs of handling fresh Florida oranges
and grapefruit increased almost 60 percent from 1938-39 to
1944-45 (see table, page 7). In the same period the cost of
processing citrus fruit showed a smaller increase, as less labor
is involved in canning.
All changes in cost factors are favoring the distribution of
processed fruit to the disadvantage of fresh fruit. The pros-
pective increase in freight rates, higher wood container costs and
higher labor costs will further tend to make it more economical
for consumers to obtain their citrus fruits in processed form.
Fresh fruit markets must be maintained, because Florida
growers cannot depend upon the processing industry to utilize
all of their crops at profitable prices. The widening differen-
tial between fresh and processed distribution costs makes essen-
tial every possible improvement, every possible economy, in fresh
fruit packing, distributing and merchandising, to meet the in-
creasing competition of processed products.









CITRUS OUTLOOK

FOR two seasons, weather conditions have adversely affected
Florida citrus production. The October 1944 hurricane reduced
the 1944-45 crop by about 25,000,000 boxes, and the record
1945 drought greatly lessened production in the 1945-46 season.
Weather conditions for the production of the 1946-47 crop
thus far have been favorable. An early, heavy bloom was set,
followed by a normal amount of rainfall. If conditions con-
tinue favorable, Florida's 1946-47 production may exceed 100,-
000,000 boxes and establish an all-time record.
The quality of the 1946-47 crop will be better than that of
the past season due to the fact that practically all of it will be
from the one, early bloom. There will not be the problems
caused by the varying degrees of late-bloom fruit produced this
season, which complicated picking, packing and processing.
Competing fruits may be in larger supply next season, but
still below pre-war averages. The April freeze curtailed apple
production in some districts, for the third consecutive year, but
the total United States production of apples will be almost nor-
mal. The production of peaches is expected to be greater, too.
Imports of bananas will be larger, though it will be two years
before they attain pre-war volume. Packers' stocks of all
canned fruits and fruit juices are less than half of what they
were a year ago, while wholesalers' stocks are only slightly high-
er than a year ago.
Other competition for the consumer's dollar will.be felt as
more goods of various kinds, long in short supply, come into the
markets in the coming months. The pent up demand for vari-
ous manufactured articles may well affect the expenditure of
the food dollar and the supplies for which it will be spent.
Uncertainties of Future
The successful marketing of an 8 5,000,000-box Florida citrus
crop in the first year following the war has inspired confidence
that an even larger crop can be marketed just as easily next
season. This appears to depend, however, upon continued full
employment and high consumer purchasing power. Labor
strife may affect the situation, but most observers believe the
average consumer will have plenty of money next season and
will be able to pay fair prices for citrus fruits.
Whether there will be price ceilings on fresh citrus fruits
next season depends on the provisions of the new Price Control
Act and on government production forecasts later in the sum-










mer. With the production now in prospect, it is likely that fresh
citrus ceilings will be removed sometime next season. This will
re-establish market premiums for better grades and packs and
will permit a more normal distribution. The psychological and
stabilizing effect of price ceilings on fruit prices may be missed,
however.
With an even larger percentage of Florida fruit likely to be
processed next season, the canning industry will exert a greater
influence on average fruit values. How well the canning in-
dustry will maintain fruit prices under conditions of greater
supply and competition remains to be seen. The 1946-47 sea-
son will open with retail stocks of canned citrus juices probably
as low as they were at the start of the 1945-46 season. Early
prices on cannery fruit therefore should be at levels comparable
with those of the past season. But markets for canned citrus
products may have to be expanded during the season to main-
tain processed fruit values at levels satisfactory to growers.
New Plantings Continuing
The ruling of a Jacksonville internal revenue agent, limiting
deductions of the cost of new citrus plantings on tax reports,
has had little effect on the planting of citrus groves in Florida.
The only limiting factor has been the supply of trees. Nur-
series still are unable to meet the demand for them. Plantings
in Texas also continue to be heavy, and are mostly of pink grape-
fruit and Valencia oranges.
The expansion of markets for fresh and processed citrus
fruits, and the development of new citrus products and of new
markets for these products, are essential to the profitable dis-
position of future crops. The three fundamentals in the solu-
tion of the industry's problems are
1) More and better advertising, to increase consumer de-
mand for our fruits.
2) More research, to improve present production, pack-
ing, processing and distributing methods, and
3) More uniformity in our products, both fresh and proc-
essed, to win greater consumer acceptance.
Through the Florida Citrus Commission and other agencies,
this state's citrus industry has made great progress in advertising
and research in recent years. But prospective increases in our
production makes necessary even greater progress in these fields.
All factors in the industry must share the responsibility of im-
proving quality and uniformity. The seller's market enjoyed
during the war years won't last. In the inevitable buyer's mar-
ket of the future, quality and uniformity again will count.




























EXCHANGE SEASON

THE total volume of sales of the Florida Citrus Exchange for
its affiliates during the 1945-46 season will approximate $65,-
000,000 the highest in its 31 years of cooperative marketing.
Included in this record volume of business will be the sale of
about $5,000,000 worth of California deciduous fruits, which
the Exchange markets through its Northern offices, mostly in
the summer months.
The percentage of interstate shipments of fresh Florida fruit
handled by the Exchange increased substantially during the
season, and, from all points of view, it was the most successful
year in Exchange history.
Financially, the Exchange now enjoys the strongest position
it has ever attained. Its financing affiliate, the Growers Loan
and Guaranty Company, currently has a net worth, including
capital, reserves and surplus, of $1,600,000.00.
All of the associations affiliated with the Exchange also have
strengthened their financial condition and they have the re-
sources to serve their grower-members efficiently in the years
ahead. New tonnage has been added by many associations, to
the limit of their packing facilities.
Many of the Exchange employees who served in the armed
forces during the war have returned to its service. All depart-










ment, and all Northern sales offices, are competently staffed.
The organization is prepared to extend its marketing service in
all important trading areas.
While labor and materials were more plentiful, and there
were fewer restrictions on railroad transportation, the handling
of the 1945-46 crop involved many difficulties, especially for
packing house managers in the grading and packing of fruit of
mixed blooms. The Exchange maintained the reputation of its
brands, despite these handicaps.
Many new and preferred customers for its fruit were ob-
tained by the Exchange during the season, but it has continued
the policy of first supplying the requirements of its estab-
lished trade. This policy has greatly strengthened the Ex-
change's position with its trade and will benefit Exchange grow-
ers in the marketing of future crops.
To keep its growers informed on Exchange activities and on
happenings in the industry, the Exchange has continued the
publication of its monthly magazine, CITRUS. Through its
membership in the Florida Citrus Producers Trade Association,
it has cooperated with other grower-interests in industry prob-
lems and it has obtained for its affiliates the advisory service
of this Association in legislative and regulatory problems.
New Canned Citrus Service
In recognition of the problems resulting from the continued
expansion of the citrus processing industry, the Board of Direc-
tors of the Florida Citrus Exchange on May 17, 1946, author-
ized the establishment of a department to market the canned
citrus products of its affiliated associations and associate ship-
pers operating processing plants. The action followed a com-
prehensive survey of the problem of marketing processed fruit.
Under the new Exchange canning program, the use of Ex-
change trade-marks will be limited to participating plants, and
standards of quality will be established for products packed
under these brands. The use of the Seald-Sweet trade-mark
will be limited to canned citrus products meeting the minimum
standards of the United States Department for "fancy grade."
The marketing of canned citrus products by the Exchange
will be handled cooperatively, in accordance with State and
Federal cooperative marketing laws. An advisory committee
will be established, consisting of one representative from each
processing plant controlled by affiliates of the Exchange, and
a representative of the Exchange, to advise the Board of Direc-
tors in all matters relating to its canned citrus marketing.










SALES DEPARTMENT

The 1945-46 shipping season opened later than had been
anticipated, due to heavy rains in the late summer months which
totalled from 35 to 40 inches in most citrus sections. The mar-
ket started at ceiling levels and most of the crop has been sold
at maximum prices.
To May 4, auction prices of Flor-
ida oranges averaged $4.51 a box,
compared with an auction average of
$4.45 a box to the same date last sea-
son, when ceilings on early varieties
were higher. To the same date this
season, May 4, auction prices of Flor-
ida grapefruit averaged $3.87 a box,
compared with $4.20 a box last sea-
son, when ceilings were substantially
higher because of the adjustment for
October 1944 storm loss.
Auction prices of Florida tanger-
FRED S. JOHNSTON ines to May 4 averaged $5.42 for a
Gener al Sales Manager 1 3/5 bushel box, compared with an
average of $4.82 last season to establish a new record. While
price ceilings on tangerines were higher last season, under the
adjustment for storm loss, the higher average on 1945-46 sales re-
sulted from the prices obtained when maximum prices were
suspended between Nov. 19 and Jan. 4. Tangerine prices went
up as high as $7 a box, f.o.b., in this suspension period.
The 1945-46 crop will be marketed in the normal harvesting
season, despite earlier expectations that shipping and processing
would continue in volume during July and into August, because
of the large volume of late bloom fruit. Favorable weather
conditions, and the strong demand for both fresh and processed
fruit, have made possible the earlier harvesting of late-bloom
crops.
The first exports of Florida citrus fruit since the war were
shipped from Exchange houses to Sweden by Mr. Oscar Gotsch
of Dundee C.G.A. The Exchange is watching foreign mar-
ket developments closely, to take advantage of all opportunities
for establishing foreign outlets for Florida fruit.
Indian River members of the Exchange continued the adver-
tising of their Florigold brand in metropolitan Eastern markets











this season, to further develop the preference they enjoy with
the trade and the consuming public in these markets. The gen-
eral advertising by the Exchange of its Seald-Sweet and Mor-
juce brands has been limited, due to current marketing condi-
tions, but will be expanded when conditions warrant.
Of its sales during the 1945-46 season, to May 13, the Ex-
change sold 63.7 percent at private sale and 36.3 percent at
auction. Car-loadings have continued heavy, averaging 504.3
boxes for oranges and 514.1 boxes for grapefruit, about the
same as last season.

The percentages of fresh fruit shipments originating in each
of the three citrus producing areas this season to May 11, com-
pared with 1944-45, are as follows:

STATE PERCENTAGES OF FRESH FRUIT SHIPMENTS
Oranges Grapefruit
1945-46 1944-45 1945-46 1944-45
Florida 59.8% 51.0% 37.1% 35.1%
Texas 10.7 8.2 61.8 64.9
California* --... ......-- 29.5 40.8 1.1 -
*For Florida season only.
Shipments of Florida fruit to May 13, in the 1945-46 and
1944-45 seasons, with comparisons of the volume of Exchange
shipments in these seasons, are as follows:
STATE AND EXCHANGE CARLOT SHIPMENTS
(Through May 14)
STATE TOTALS:
1945-46 1944-45 Increase Percent
Oranges -.--.. 52,459 52,385 74 .1%
Grapefruit 15,503 12,575 2928 23.3
Tangerines ------ 6,992 7,668 (676) (8.8)
Total -....... 74,954 72,628 2326 3.2
EXCHANGE TOTALS
Oranges ... 9,737 9,722 15 .2
Grapefruit ---.... 4,036 3,690 346 9.4
Tangerines -----. 1,356 1,646 (290) (17.6)
Total ..----- 15,129 15,058 71 .5
Parenthesis indicate decrease; shipments do not include cannery fruit.


TRAFFIC DEPARTMENT

Transportation service during the past season has shown
some improvement. Most pre-war freight schedules, including
third morning to New York, Philadelphia and Baltimore and
fourth morning to Boston, were re-established last fall, and










while service has shown improvement, it is still not up to the
pre-war standard. The National Refrigerator Car Pool was
continued through the season and the car supply, with a few
minor exceptions, was adequate.
No major changes in transportation charges have been made
during the season. However, on April 15 the Class 1 railroads
of the United States filed with the Interstate Commerce Com-
mission a petition requesting authority to increase all freight
rates and other freight charges 25 percent. In requesting the
2 5 percent increase certain exceptions were made on various
commodities and in dealing with rates
on citrus fruit the petition provided
for an increase of 25 percent, with a
maximum increase of 15c per 100
pounds. Hearings on this petition
(Ex Parte 162) were commenced on
May 6. If the railroads are allowed
to increase rates 15c per 100 pounds
Sit will increase Florida citrus fruit
: shippers' freight bill approximately
$7,000,000.00, based on an estimated
movement of 100,000 cars for the
next season's crop.
E. E. GAUGHAN The all-rail water competitive
Traffic Manager rates published and maintained by the
railroads under Fourth Section Order 12129 to meet the truck-
boat competition to the North Atlantic ports of New York,
Boston, Philadelphia, Baltimore and related points, are now
under attack by the War Shipping Administration by a peti-
tion (Fourth Section Application No. 16028) filed with the
Interstate Commerce Commission on March 8. The War Ship-
ping Administration and the boat lines claim that the present
rates are too low and must be readjusted to a more profitable
basis to permit the boat lines to resume their pre-war service
and while the petition does not state the exact increase desired,
it does request that the Interstate Commerce Commission with-
draw or so modify Fouth Section Order No. 12129 as to re-
quire the railroads to increase their present rates approximately
20c per 100 pounds, which would enable the boat lines to in-
crease their rates 13c per box and require the railroads to main-
tain rates via all rail 7c per box higher than the truck-boat
rates. No date has been as yet assigned for hearing this case










but more than likely we will have an increase in boat rates be-
fore the beginning of next season.
After about two years of negotiations the railroads finally
agreed to a compromise settlement on all war delay claims. The
basis for settlement involved the payment of 50 percent of the
proven loss on all pending claims for delay on shipments orig-
inating on or after December 7, 1941, up to and including
August 15, 1945. During the period September 1, 1945 through
April 30, 1946 a total of 1044 claims were settled, with collec-
tions of $81,709.87.
LAW DEPARTMENT
This has unquestionably been one of the busiest seasons ever
experienced by the Law Department. In addition to the regu-
lar routine matters that always claim much time and attention
and the inevitable efforts with and before multiple government
boards, there were developments of major importance.
The very lengthy litigation, with
the Federal government involving So-
cial Security taxes paid by Exchange
affiliates prior to 1940 was finally
consummated, as a result of which
such affiliates have been refunded ap-
proximately $100,000.00 by the
United States of America and the
State of Florida.
Suits filed against Florida rail-
roads for damages incurred by affili-
ates of the Florida Citrus Exchange
as the result of unreasonably delayed
COUNTS JOHNSON shipments during the war were com-
General Counsel promised and settled on a basis which
has reflected returns to associations and associate shippers in the
Exchange of approximately 50 percent of the damages suffered.
The Law Department has worked closely with others en-
gaged in cooperative effort throughout the country in com-
batting false and misleading propaganda against cooperatives,
all of which propaganda was primarily designed to seriously
impair, if not procure the denial of, the income tax exempt
status accorded to farmers' cooperatives. Bona fide cooper-
atives have themselves long contended that there was great need
for the Bureau of Internal Revenue to issue sufficient rules or
regulations clarifying a number of points or controversies with










respect to which all cooperatives have been left continuously in
doubt insofar as tax exemption is concerned.
During the season the American Bar Association fully, al-
though belatedly, recognized the importance of cooperative
associations by having its Section of Corporation, Banking and
Mercantile Law create a Committee on Cooperatives. The at-
torney for the Florida Citrus Exchange has been named as a
member of such Committee and is now in an even better posi-
tion to assist in the advocating and obtaining of all the needful
laws and regulations that will better enable cooperatives to do
their full share in the more effective stabilizing of the agricul-
tural economy of the country.
GROWERS LOAN AND GUARANTY COMPANY
The Growers Loan and Guaranty Company is an affiliated
agricultural credit corporation, the stock of which is owned by
the Florida Citrus Exchange and its affiliated local cooperative
associations. The year ended April 30, 1946, was the 29th in
its financial service to the associations
and their grower members. During
this period its loans to associations and
t to their grower members have ap-
proximated $50,000,000.00 with a
loss ratio comparing most favorably
with any agricultural credit corpor-
ation or commercial bank.
Its function is to extend seasonal
operating capital credits to associa-
tions and crop production credits to
their grower members. Any affili-
c aated association or grower-member
S. L. LOONEY thereof is entitled to this service. The
Treasurer-Compt roller amount a grower may borrow de-
pends upon the history of his grove, size and quality of his crop,
character and ability of the borrower. Loans to growers are
secured by mortgages and crop liens and orders on the local
associations for the payment of said loans from the proceeds
of their crops. Loans to associations for operating capital pur-
poses are generally secured by orders on the Florida Citrus Ex-
change authorizing it to deduct from their fruit remittances
specified amounts per box and remit to the company until said
loans with interest are fully paid. The volume of loans in the
1945-46 fiscal year amounted to $2,272,842.07, an increase of










$321,309.04 compared with the previous year. In normal
times the average volume of loans is from three to four million
dollars.
Its interest rates and other charges incident to the making
of these loans have been reduced from time to time until now
they compare favorably with the total cost of operating capital
loans through the Bank for Cooperatives and production credit
loans through the production credit corporations, both of which
are sponsored and controlled by the Farm Credit Administra-
tion. It has been the policy of the company to accept only such
loans as are sound and meet the eligibility requirements of com-
mercial banks. The company's financial condition and record
of performance is such that the group of Florida banks which,
for the past several years, has extended to it substantial lines of
credits, considers the company's endorsement as of prime col-
lateral value as well as an assurance that the paper so endorsed
is adequately protected and of a bankable nature. The company
is highly appreciative of the constructive and friendly attitude
on the part of these banks, without which it would have been
impossible for the company to have attained such a fine history
of service to the Exchange and its affiliates.
During the period between world wars one and two, there
were many times when the citrus industry was adversely affect-
ed by climatic and economic catastrophes such as the usual
weather hazards, the real estate boom collapse in 1925 and sub-
sequent bank failures, the stock market crash in 1929 and the
national bank crisis in 1933 followed by several years of low
prices. As a result of these happenings, our associations and
grower-members were oftentimes severely handicapped by the
lack of operating capital with which to economically and effi-
ciently carry on their operations. To make' matters worse,
the usual channels of credit through the local banks were in
many instances closed to them. It is but natural that the com-
pany, looking backward over these many years, reflects with
pardonable pride on its accomplishments in the rendering of
adequate financial services on a sound basis to the associations
and their members. Many of them owe their existence today to
the credit facilities which the company made available to them
during those trying periods. It should also be gratifying to the
company's stockholders and all Exchange affiliates that in addi-
tion to rendering this much needed financial service, the com-
pany has liquidated in an orderly and efficient manner the
grove and packing house properties acquired during the depres-
sion era without any impairment of its capital. The company's













net worth, including capital, reserves and surplus is approxi-
mately $1,600,000.00 and it is in the best financial condition of
its history. Its performance record and standing with the banks
is such that it can easily finance at low interest rates all bank-
able loans offered it by Exchange growers and their associations.


EXCHANGE SUPPLY COMPANY

The Exchange Supply Company effected savings for mem-
bers of the Florida Citrus Exchange again this season in the
cost of grove and packing house supplies. At a time when field
crates were in short supply through the usual channels, a crate
mill was purchased and operated which relieved the shortage
by producing several hundred thousand boxes for Exchange
houses.

This is the thirtieth year in which the purchasing affiliate
has served the interests of members by obtaining supplies at
low cost.


DISPOSITION OF FLORIDA CITRUS CROPS

GRAPEFRUIT


Processed Fruit
Boxes Percent
1000 Boxes

6,759 37.3
6,157 42.2
9,233 39.6
8,804 55.4
13,876 56.4
10,147 52.8
17,567 64.3
20,400 65.8
15,136 67.9
21,000 68.0


ORANGES

9 550
3 1,109
0 1,184
3 4,270
2 4,008
7 4,271
1 6,439
5 11,011
5 14,344
0 17,325


1/ Includes farm and household use
2/ Estimated


Fresh Shipments
Boxes Percent


Season


1936-37
1937-38
1938-39
1939-40
1940-41
1941-42
1942-43
1943-44
1944-45
1945-46



1936-37
1937-38
1938-39
1939-40
1940-41
1941-42
1942-43
1943-44
1944-45
1945-46


11,233
8,349
12,226
6,998
10,624
8,956
9,603
10,436
6,314
10,000



18,322
22,531
28,399
21,080
24,372
22,753
30,552
34,889
26,736
31,185


Total
Production 1/


18,100
14,600
23,300
15,900
24,6,00
19,200
27,300
31,000
22,300
32,000



19,100
23,900
29,900
25,600
28,600
27,200
37,200
46,200
42,800
49,500


I 1














COMPARISON OF FLORIDA AND TEXAS GRAPEFRUIT
SHIPMENTS AND AUCTION AVERAGES, BY
WEEKS 1944-45 AND 1945-46

1945-46 ........---- ----- -.------------------ 1944-45 ---
Florida Texas Florida Texas
'Cars Auction Cars Auction Cars Auction Cars Auction
Week Shipped Average Shipped Average Shipped Average Shipped Average

Sept. 15 11 $ $ 3 $ $ -
22 60 57 -
29 318 3.60 323 -
Oct. 6 625 3.62 709 3.60 -
13 722 3.75 726 3.65 320 -
20 619 3.76 496 388 3.45 1037 3.30
27 572 3.84 1121 3.50 327 3.35 813 2.92
Nov. 3 475 3.43 905 2.97 203 3.12 654 2.76
10 370 3.23 552 2.86 267 4.26 634 3.16
17 280 3.57 636 3.11 375 4.19 696 3.47
24 340 4.61 746 3.45 364 4.33 738 3.46
Dec. 1 343 4.68 971 3.54 345 4.06 799 3.04
8 376 3.77 918 3.47 274 3.90 948 2.76
15 410 4.55 967 3.26 359 4.58 851 2.98
22 533 4.87 687 3.25 274 4.58 623 3.08
29 189 4.73 570 3.29 232 4.46 392 3.16
Jan. 5 432 4.22 757 3.27 348 4.03 751 3.09
12 558 3.73 1011 3.03 330 3.81 585 3.19
19 416 3.26 975 2.75 402 3.93 904 3.25
26 434 3.67 1031 2.85 286 4.24 961 3.21
Feb. 2 502 3.64 996 2.66 436 4.56 774 3.18
9 444 3.43 996 2.56 460 4.45 924 3.53
16 461 3.40 1125 2.62 583 4.35 807 3.42
23 380 3.46 1080 2.51 498 4.22 953 3.28
Mar. 2 311 3.62 927 2.62 511 4.11 1216 3.47
9 464 3.78 962 2.77 392 4.03 1215 3.09
16 466 3.97 1055 3.01 320 3.89 766 2.61
23 450 3.85 841 2.81 389 4.23 769 2.68
30 387 3.90 841 3.03 400 4.58 790 2.95
Apr. 6 529 3.81 1048 3.31 385 4.70 819 3.25
13 561 3.87 1007 3.26 424 4.64 834 3.61
20 654 4.02 813 3.31 356 4.75 689 3.82
27 672 3.93 589 2.67 342 4.80 497 3.98
May 4 528 3.43 424 2.35 247 4.76 373 3.86
11 428 3.61 448 2.67 198 4.78 455 4.11
To May 11
Average $3.84 $2.94 $4.22 $3.11

Florida 1945-46 average carloadings 514.1 boxes
Florida 1944-45 average carloadings 509.4 boxes

*Includes few Boat Shipmepts

Shipments do not include weekly unreported cars for 1945-46
1944-45 Shipments complete














COMPARISON OF FLORIDA AND CALIFORNIA

ORANGE SHIPMENTS AND AUCTION AVERAGES
BY WEEKS 1944-45 AND 1945-46

-.....-- ------ 1944-45 ... ---- --------------------- 1943-44 ----
Florida 'California Florida *California
Cars Auction Cars Auction Cars Auction Cars Auction
Week: Shipped Average Shipped Average Shipped Average Shipped Average

Sept. 29 10 $- 2134 $4.45 57 $- 1896 $5.83
Oct. 6 94 1996 4.56 364 4.51 1843 5.85
13 323 4.26 2074 4.52 1033 4.45 1590 5.85
20 737 4.49 1839 4.46 989 4.31 1300 5.85
27 1234 4.38 1501 4.49 819 4.54 926 5.85
Nov. 3 1253 3.90 996 4.38 1141 4.55 549 5.85
10 1154 3.60 790 4.19 2214 4.64 207 5.86
17 1157 3.80 816 4.38 1828 3.58 70 5.82
24 1685 4.30 1460 5.32 1136 3.34 133 -
Dec. 1 1824 4.41 2229 5.61 1878 4.19 990 -
8 2099 4.55 1862 5.23 2762 4.54 1679 5.28
15 3152 4.54 1706 5.25 3108 4.74 1701 5.30
22 1781 4.74 1640 6.34 2023 4.72 1670 5.31
29 749 5.82 1037 6.40 470 4.75 1683 5.30
Jan. 5 1951 5.48 1401 5.29 1425 4.65 1613 4.98
12 1838 4.34 1614 4.99 1715 4.61 1666 4.53
19 1365 3.94 1463 4.87 1848 4.24 1307 4.03
26 1335 4.51 1494 4.97 1124 4.22 1453 4.13
Feb. 2 2166 4.67 1347 5.08 2006 4.65 1751 4.70
9 1910 4.37 1646 5.10 2081 4.84 1604 5.16
16 1804 4.25 1668 5.19 2185 4.58 1765 5.27
23 1765 4.17 1649 5.24 1879 4.18 1855 5.02
Mar. 2 1480 4.32 1658 5.08 1972 4.30 1571 4.92
9 2225 4.77 1436 5.00 1850 4.50 1789 4.89
16 1808 4.56 1314 4.91 1870 4.49 1691 4.91
23 1683 4.37 1011 4.89 2111 4.77 1370 5.10
30 1737 4.59 1157 5.13 1977 4.69 2110 5.15
Apr. 6 1971 4.73 828 5.22 1691 4.70 2138 5.25
13 2172 4.88 925 5.15 1651 4.74 1821 5.28
20 2097 5.01 1499 5.39 1500 4.85 2146 5.25
27 2074 5.10 1728 5.47 1383 4.98 2299 5.27
May 4 1760 5.08 2205 6.04 1211 4.98 2400 5.78
11 1595 5.11 1750 6.00 882 5.00 2447 5.59
To May 11
Average 4.52 4.99 4.45 5.22

* California includes all domestic Shipments subject to correction

Florida Shipments do not include weekly unreported cars
A few Boat Shipments are included in 1945-46 Florida Shipments

Florida 1945-46 average carloadings 504.3 boxes.
Florida 1944-45 average carloadings 512.8 boxes


I














UNITED STATES CITRUS PRODUCTION


8,000
9,400
8,400
10,900
13,700
11,300
10,200
11,000
9,500
16,500
9,800
19,200
14,200
16,400
17,900
17,600
18,000
22,100
26,200
33,300
28,000
31,000
29,300
41,400
49,600
46,800
54.000


3,900
5,800
6,700
7,800
8,500
8,900
7,600
8,600
7,500
11,300
8,300
15,800
10,700
11,600
10,900
15,200
11,500
18,100
14,600
23,300
15,900
24,600
19,200
27,300
31,000
22,300
32.000


1919-20
1920-21
1921-22
1922-23
1923-24
1924-25
1925-26
1926-27
1927-28
1928-29
1929-30
1930-31
1931-32
1932-33
1933-34
1934-35
1935-36
1936-37
1937-38
1938-39
1939-40
1940-41
1941-42
1942-43
1943-44
1944-45
1945-46 (2)
27 Year Total


Florida
Season (1) Orgs. Gfrt.


929,952 79,012


Calif.-Ariz.
Orgs. Gfrt.
1000 Boxes
16,712 392
13,831 429
14,101 395
21,364 454
24,239 458
18,566 492
24,286 750
28,327 792
22,791 896
39,258 1,183
21,332 1,356
35,318 1,690
34,803 1,881
34,412 1,964
28,594 2,572
45,217 3,407
33,049 4,067
30,047 2,940
46,264 4,693
41,850 4,624
44,924 4,875
51,223 4,633
52,192 6,594
45,026 5,671
53,066 7,269
61,450 7,205
47,710 7.330


32,843 176,075


(1) Includes Tangerines
(2) Estimated April 1st, 1946

BELOW ARE THE PERCENTAGES OF INCREASE
Florida Production of Oranges has Increased by 575%
California Production of Oranges has Increased by 185%
Texas Production of Oranges has Increased by 5,212%
Florida Production of Grapefruit has Increased by 720%
Texas Production of Grapefruit has Increased by 7,666%


141
,l."; J.j
,.




rfr.~fl~u


Texas
Orgs. Gfrt.

9 3
5 5
5 8
10 35
6 65
17 301
12 200
41 361
85 524
125 753
261 1,550
250 1,200
520 2,600
325 1,440
430 1,200
650 2,740
777 2,780
2,000 9,630
1,440 11,840
2,815 15,670
2,360 14,400
2,650 13,650
2,850 14,500
2,550 17,510
3,550 17,710
4,400 22,400
4,700 23,000


583,700 388,900


SINCE 1919-20