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Title: Annual report of the Florida Citrus Exchange.
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Permanent Link: http://ufdc.ufl.edu/UF00075941/00022
 Material Information
Title: Annual report of the Florida Citrus Exchange.
Physical Description: Serial
Creator: Florida Citrus Exchange
Publisher: The Exchange,
Publication Date: 1947-1948
 Record Information
Bibliographic ID: UF00075941
Volume ID: VID00022
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: ajg6778 - LTUF
46798761 - OCLC
001753794 - AlephBibNum

Table of Contents
    Front Cover
        Front Cover
    Title Page
        Page 1
    Main
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
Full Text




Annual Repo
of the
/ FLORIDA CITRUS
EXCHANGE x


1947-48


General Manager








Annual Report

1947-48

EXECUTIVE OFFICERS


W. C. VAN CLIEF
President


C. C. COMMANDER
General Manager


S. L. LOONEY
Treasurer-Comptroller


FLORIDA CITRUS EXCHANGE
Tampa, Florida








OFFICERS, DEPARTMENT HEADS AND DIRECTORS
FLORIDA CITRUS EXCHANGE

SEASON 1947-48

O

OFFICERS


W. C. Van Clief, President ----. -
Phil C. Peters, First Vice-President ---
A. V. Saurman, Second Vice-President
H. C. Allan, Third Vice-President --
John L. Olson, Fourth Vice-President -
Counts Johnson, Secretary -----
James Samson, Assistant Secretary
S. L. Looney, Treasurer -------


-Winter Haven
Winter Garden
Clearwater
----- Oak Hill
.----Dundee
----- Tampa
----- Tampa
------Tampa


DEPARTMENT HEADS


C. C. Commander, General Manager -...
Fred S. Johnston, General Sales Manager
S. L. Looney, Comptroller -------
Counts Johnson, General Counsel -.---
Carlisle Kyle, Advertising Manager ---
E. E. Gaughan, Traffic Manager ----
C. A. Seehof, Canning Division Manager


Tampa
Tampa
-Tampa
Tampa
Tampa
Tampa
Tampa


SUB-EXCHANGE AND DIRECTORS


Avon Park
Clark -----
Dundee
Florence
Fort Pierce-
Indian River-
Lake County-
Lake Region-
North Pinellas-
Orange County
Pinellas
Plymouth
Polk County-
Scenic -----
Winter Haven-


E. G. Todd
-I. J. Pemberton
John L. Olson
W. C. Van Clief
W. M. Moseley-
H. C. Allan
J. B. Prevatt
A. R. Updike
A. V. Saurman
Phil C. Peters
Ford W. Moody-
Armer C. Johnson-
D. A. Hunt----
Charles G. Metcalfe
George B. Aycrigg-


--Avon Park
-Jacksonville
Dundee
Winter Haven
Fort Pierce
Oak Hill
Tavares
Lake Wales
Clearwater
Winter Garden
Palm Harbor
Mount Dora
Lake Wales
Avon Park
-Winter Haven





















HOME OF THE FLORIDA CITRUS EXCHANGE AT TAMPA, FLORIDA


ANNUAL REPORT
1947-1948

WHILE America continued to enjoy one of the greatest and
longest periods of prosperity in the history of the nation, the Flor-
ida citrus industry reeled under continued disorderly marketing
conditions and red ink returns during the season of 1947-48. The
biggest, but certainly not the finest, crop ever produced in Florida
-estimated at 90,900,000 boxes-was sacrificed at a buyer's price,
and produced with expensive materials and services at a seller's
price.
Considering that the size of the crop was affected by a freeze
and two hurricanes in Florida and a freeze in California during
a season when the nation spent freely the wealth of its greatest
peacetime economy, and considering that growers received less
than the cost of production during this time, what can be expect-
ed when our much greater potential production is reached-per-
haps at at time when our economy is less favorable? The solution
to the problem will be found only by the cooperation of all fac-
tors within the citrus industry.
Although the crop was bigger this season, the state had shipped
less fresh fruit to the market by April 24 than last season at the
3


hLL _0,0








same date. The canneries, however, had used considerably more
oranges and slightly more grapefruit. Orange shipments by that
date were 20,000,000 boxes against 24,600,000 last season. Grape-
fruit shipments were 7,100,000 boxes against 7,600,000 last season.
California orange shipments were running higher than last season
by 30,524 to 24,440 cars on May 1, while Texas grapefruit ship-
ments were lower, 9,434 cars this season to 11,679 cars last season.
Despite the drop in total shipments, fresh fruit prices were
lower for Florida, California and Texas fruit. Florida oranges, in-
cluding Indian River, sold at auction (through April 24) aver-
aged $3.21, compared with $3.41 last season. Florida grapefruit,
including Indian River, sold at auction averaged $3.10, compared
with $3.35 last season.
Again this season, Florida received less money per box for its
fruit than California, despite the fact that Florida's is one-fifth
of a bushel larger, and a box of Florida oranges contains from 5 V2
to 6 gallons of juice, compared with only 3 V2 to 33/4 gallons for a
box of California Navels. Considering that Florida offers the
customer more, and receives less, there must be something wrong
with the way it's being offered.
During the week ending May 1, California oranges outsold
Florida on the auctions by an average of $5.12 to $3.21. During
the preceding weeks, California averaged better than Florida by
$5.33 to $3.39; $5.04 to $3.34; $4.88 to $3.17 and $4.96 to $2.96.
A total of these figures shows that California received 57 per cent
more money for a box that contains 12 per cent less fruit and con-
siderably less juice.

Exchange Grades Committee
The Florida Citrus Exchange, realizing the necessity for better
standards for fresh fruit, appointed a permanent grades committee,
comprised of experienced packinghouse managers, to recommend
standards of quality for Seald-Sweet citrus.
There is no doubt that the quality was adversely affected by
excessive rainfall during 1947, when a total of 65.95 inches was
recorded in Tampa, compared with the 57-year average of 49.39
inches. It was the third consecutive year of excessive rainfall. In
1946 there was a total of 59.12 inches, and in 1945 a total of
66.65 inches. In sharp contrast was the drouth of the preceding
year, 1944, when only 34.87 inches was recorded.
The freeze of January 15 this Winter dealt another blow to the
quality-a blow that was still being felt in April when complaints







of dryness and freeze damage were being received from the trade.
On the morning of January 15 the mercury dipped to 20.7 in
DeLand, 25 in Orlando and Lakeland, 26 in Winter Haven and
Bartow and 27 in Tampa.
Two violent hurricanes ripped into the southern part of the
state last Fall on September 17-18 and again on October 11-12
and destroyed some fruit, mostly on the East Coast and in the
Fort Myers area.
The amount of fruit lost by hurricane and freeze damage was
small compared to the total estimated production for the state.
The initial estimate by the United States Department of Agricul-
ture last October was 84,800,000 boxes, which was revised upward
to 90,900,000 boxes by April. The April estimate included
31,000,000 boxes of early and midseason oranges, 25,000,000
boxes of Valencias, 31,000,000 boxes of grapefruit and 3,900,000
boxes of tangerines.
Although Florida's estimated production was the biggest in
history (the next highest was 87,400,000 the previous year), there
was a slight drop in production of citrus in the United States as
a whole. The national estimate this season is 174,720,000 boxes,
compared with 178,320,000 the previous year.

Canneries Utilize Majority
More than half of Florida's crop was utilized by the canneries
this season. Sales of canned orange juice showed an increase of
40 per cent over the previous 12 months' period, and as a result,
canneries took more oranges than ever before. As of April 24 the
canneries had taken 22,900,000 boxes of oranges compared with
15,600,000 boxes the previous season. Thus, the canneries had
accounted for 51.5 per cent of the orange crop that had moved at
that date, compared with 36.2 per cent last season.
Although the overwhelming majority of the grapefruit crop
was going into cans, the total grapefruit pack was lagging behind
the greatly increased orange pack. Sales of grapefruit juice were
still suffering from the stigma of the poor quality grapefruit pack
during the war years. As of April 24 the canneries had taken
15,100,000 boxes of grapefruit, compared with 13,700,000 boxes
the previous season. Thus, the canneries had accounted for 66.1
per cent of the grapefruit crop that had moved at that date, com-
pared with 62.3 per cent last season.
The amount of oranges and grapefruit used for canned blended
juice showed a 16 per cent increase by April 24 over last season.
5








It is evident that canners are inclined to treat citrus as a salvage
proposition, pay growers nothing, and sell at prices highly com-
petitive to fresh fruit.
The government announced a price support program for grape-
fruit involving expenditure of $6,000,000. This money was being
spent for single strength canned juice and for concentrates for use
in the school lunch and immediate foreign aid programs. Pur-
chases in Florida amounted to $2,918,868, of which $2,266,792
was for concentrated grapefruit juice, and the remaining
$652,076 for single strength grapefruit juice. Purchases in Texas
amounted to $1,925,358, all of it for single strength grapefruit
juice.
These government purchases were of little value to citrus grow-
ers, however, because they were virtually a drop in the bucket com-
pared to citrus production, and equally insignificant compared to
the very substantial purchases being made by the government for
other farm commodities.
Concentrated orange juice also was used in the school lunch
program. Last Fall, the government purchased 78,036 gallons of
concentrated orange juice in Florida at a price of about $2.55 per
gallon, and purchased 480,000 gallons from California at virtually
the same price. This Winter the government stepped into the
market again with a much bigger purchase in Florida of 672,252
gallons at a price of about $2.40 per gallon, and a purchase of
102,000 gallons in California at virtually the same price.
The frozen concentrate plants at Plymouth, Lake Wales and
Dunedin have been operating at near capacity and have been pro-
ducing a quality product that is meeting with favorable consumer
acceptance. The satisfactory prices being paid for frozen concen-
trates indicates citrus products can be marketed profitably when
buyers have confidence in the quality. Unfortunately, there has
been no control of the quality of canned citrus juices and some
fresh fruit.
While government purchases perhaps absorbed a little of the
excess production, especially grapefruit, these purchases were too
small to affect materially the price of either fresh or canned oranges
or grapefruit. Most of the grapefruit that was sold this season
was sacrificed for a price below the cost of production. Canneries

GROWERS LOSE ON CANNED CITRUS
Can growers make cost of production when canned grapefruit juice is sold for less
than a nickel for a No. 2 can (18 ounces), and 10 cents for a 46-ounce can, which is
a nickel for 23 ounces? These clippings from grocery advertisements show that both
grapefruit juice and orange juice were given away at prices that returned virtually
nothing to the grower.





SN. 2 CAN ORAPNRUIT
SJUICE 6-can25C

46\*


ORANGE
JUICE CA


2FOR27c








on April 26 were paying, delivered at the platform, as low as 20
cents a box for Marsh seedless grapefruit, 27/2 cents for Duncan
grapefruit and 55 cents for oranges. (On May 5 canneries paid as
low as 35 cents for oranges delivered.) These cannery platform
prices represent on-tree returns below the cost of production. On
that date, canned Florida orange juice sold f.o.b. for $1.75 per
case (dozen, 46-ounce cans), Florida sweetened grapefruit juice
sold for $1.35 and Florida unsweetened grapefruit juice for $1.30,
compared with an even lower figure of $1.15 for Texas unsweet-
ened grapefruit juice.
Texas Floods Markets
Texas' grapefruit crop of 24,000,000 boxes was given away at
red ink prices that had a demoralizing effect on Florida prices.
Texas flooded the fresh fruit markets during January and Feb-
ruary and received very low prices. During the week of February
14, for example, Florida shipped 512 cars of grapefruit, while
Texas shipped almost twice that much, 998 cars. Florida received
an auction average of $3.28 per box that week compared with
Texas' give-away average of $2.49.
Another contributing factor to low fruit prices this season was
the loss of foreign markets. Before the war the United States ex-
ported to other countries, including Canada, about 10,000,000
boxes of fresh citrus and 5,000,000 cases of canned citrus. Also
sold in foreign markets were 40 per cent of. the dried fruits, 20
per cent of the apples and 44 per cent of the winter pears, which
compete with citrus.
Because of the dollar shortage in Europe and Asia the citrus
industry was forced to postpone the development of these poten-
tially important avenues for removing from domestic markets
some of the excess citrus production. Even the shipments to Can-
ada were severely curtailed by a quota system the Canadian govern.-
ment established November 18 in an effort to conserve the dollar
exchange. This quota system, which virtually amounted to an
embargo on fresh fruits and vegetables from the United States,
was not only a handicap to American growers, but also worked a
hardship on the Canadian public by denying them healthful fruits
and vegetables that would be sold to them at low prices, because
they were not bringing cost of production here. Because of the
embargo, Canada is reported to have spent American dollars freely
in Mexico for citrus, in Italy for lemons, Chile and Egypt for
onions, and have paid in practically every instance higher prices
than the same merchandise could be purchased through established
Canadian dealers from established American connections.








About half of the citrus exports in the 1946-47 season went
to Canada. In 1946 Canada imported 5,831,000 boxes of oranges
(all from the United States except 2,754 boxes), and 1,897,000
boxes of grapefruit (all from the United States except 16,670
boxes.) In the same period, Canada imported more than
2,000,000 cases of canned citrus products from the United States.
A comprehensive survey of foreign countries indicates there
are potential export markets for Florida citrus fruits in nine Euro-
pean countries and potential export markets for canned citrus
fruits and juices in 20 foreign countries.
A representative of the Florida Citrus Exchange was recently
sent to Europe to make a further study of export possibilities.
In the 1946-47 season, exports of fresh citrus fruits totaled
nearly 12,000,000 boxes or 6 per cent of the entire United States
crop. During that season about 14 per cent of the canned citrus
juice (single strength basis) and 25 per cent of the canned grape-
fruit segments were exported.

Government Aid Programs
The citrus producing states have cooperated in Washington to
promote citrus exports through government aid programs for Eu-
rope. The Marshall Plan legislation enacted by Congress contains
provisions sponsored by the citrus, deciduous and dried fruit indus-
tries which are intended to assure the use of surplus farm crops in
the European Recovery Program during the next four years. The
extent of this program depends upon funds appropriated by Con-
gress. The legislation increases the fund available to the Commod-
ity Credit Corporation for price support programs from
$40,000,000 to about $80,000,000 a year, by restoring to the price
support program the full amount of Section 32 funds less the
$65,000,000 appropriated for the school lunch program. The
legislation authorizes the Commodity Credit Corporation to sell
farm crops acquired under price support programs to relief
agencies or to other countries at 50 per cent of their cost to the
Corporation. (The effect of this provision is to divide the cost of
exporting surplus foods evenly between the price support program
and the ERP program.) The legislation also authorizes the Com-
modity Credit Corporation to pay a subsidy equivalent to 50 per
cent on foods in excess of domestic requirements when sold pri-
vately to ERP countries. (On transactions of this nature, which
appear remote under present conditions, consideration must be
given by our government to the historic reliance of agricultural
industries on foreign markets.)








Despite all the facilities the government has for helping citrus
growers, and notwithstanding the fact that the government has
stabilized other farm commodities such as cotton and wheat, the
citrus growers have received virtually no benefit from the govern-
ment. This indifference on the part of the government is even
more appalling when one considers the tremendous tax contribu-
tions made to the government by citrus growers in recent years.
Another legislative development of interest to the citrus indus-
try has been the report of the Senate Agricultural Committee on a
long-range farm program, and the introduction of Senate Bill 2318
for such a program. This bill provides a new parity formula, using
the latest 10-year period as a base. Under this formula, United
States parities for oranges would be reduced from $3.76 to $2.27
and for grapefruit from $2.05 to $1.12-as of February 15, 1948.
The parity on Florida oranges would be a little less than $2, and
for Florida grapefruit about the same as the United States parity.
These parity prices are important because they are factors in mar-
keting agreement programs and price support programs.
The citrus industry is affected by the demand and supply of
other competing fruits, such as apples, bananas and pears. The
demand for these fruits has not been as strong this season as last.
Apples and pears were especially hit by the reduction in export
demand resulting from the efforts of several foreign countries to
save dollars. Prices generally have been moderately to considerably
lower than a year earlier.
Apple Production
Apple production was estimated at 15,222,000 bushels, 21 per
cent below the 1946 crop of 19,282,000, the largest crop on record,
but 11 per cent more than the 10-year (1935-44) average of
14,005,000 bushels. Imports of apples amounted to 171,000 bush-
els making a total supply of 15,393,000 bushels.
Prices received by farmers for commercial apples have generally
been lower this season than prices in the same months a year
earlier. Contributing to this price decline were the larger stocks
of apples this year, the reduction in quantities used for processing,
larger supplies of all fruits combined and weaker foreign demand.
Although the demand for bananas has been lighter at times this
season, prices have generally been maintained throughout the
period.
Production of pears was estimated at 1,029,000 bushels, 8 per
cent above the previous year's crop of 951,000, and 58 per cent







higher than the 651,000 produced during the 10-years (1935-44).
Despite the generally fine quality, pears brought lower prices than
at any other time since 1942, but higher than any of the years
between the two World Wars.
Production of peaches was 1,694,000 bushels, about 450,000
bushels less than last year, but greater than the 10-year average of
1,237,000 bushels.
Production of small fruits and grapes was more in 1947 than
in 1946.
The 1947-48 commercial pack of dried fruits was about 20
per cent larger than the previous season and 8 per cent larger than
the 1935-39 average. To assist dried fruit producers, the govern-
ment purchased 203,000 tons this season. These purchases con-
stituted nearly one-third of domestic production and were mostly
raisins and dried prunes. They included 105,000 tons of raisins,
86,000 tons of prunes, 6,000 tons of figs, 3,750 tons of peaches
and 2,250 tons of apples. All of the figs, peaches and apples, and
6,000 tons each of the raisins and dried prunes were for use in the
School Lunch program.
No other major farm product has experienced so marked an
increase in production as citrus. Since the 1935-39 period, peaches
have increased by 53 per cent, pears have increased about 29 per
cent, and apples have declined 22 per cent. In the same period,
citrus production in the United States has increased by 254 per cent.
In the last ten years Florida orange production has jumped
from 26,200,000 boxes to 56,000,000 boxes, an increase of 114
per cent; while Florida grapefruit has climbed from 14,600,000
boxes to 31,000,000 boxes, an increase of 112 per cent.

Costs Increase
It costs considerably more to grow citrus now than it did 10
years ago. A survey by the University of Florida on returns from
194 groves (6,417 acres averaging over 10 years of age) reveals
that it cost 44 cents to grow a box of oranges in 1938-39 and 67
cents per box last season on these particular groves. The cost
varies, of course, and may be lower or higher on other groves. This
survey also reveals that the cost per acre was $89.75 in 1938-39,
compared with $195.22 last season.
Shipping costs also have increased. During this season, freight
rates have been increased three times so that now our total trans-
portation costs are approximately 35 cents per box higher than
11







those in effect prior to the war. On October 13, an increase of
10 per cent became effective. On January 5, this increase was
raised to 20 per cent with a maximum of 20 cents per 100 pounds.
Again on May 6, the increase was hiked to 25 per cent with a max-
imum of 22 cents per 100 pounds. These are so-called temporary
increases granted by the Interstate Commerce Commission (ICC
Docket Ex Parte 166 Increased Rates of 1947).
An increase of 10 per cent was also granted May 6 on refriger-
ation and other protective service charges.
Other costs, such as farm machinery and fertilizer, have fol-
lowed the general upward trend. To help combat these rising
costs, the citrus industry has sought to improve efficiency through
scientific research.
A number of research programs this season have produced in-
teresting results. For example, an experiment at the range cattle
experiment station at Ona in Hardee County indicates that fresh
grapefruit is worth from 40 to 55 cents per box as cattle feed.
While that isn't much for a box of grapefruit, it is better than the
eight cents and less per box which some growers have been offered
this season. It was found that a 500-pound steer will consume
approximately 50 pounds of grapefruit a day. That's a little more
than half a box. This means that one animal could eat 111 boxes
of grapefruit in six months. Two-thousand head of cattle would
consume a quarter-million boxes in the same period. Judging
from this experiment, a closer association between the citrus in-
dustry and the cattle industry might be beneficial to both.
Another interesting research program is being undertaken at
the University of Florida's Citrus Experiment Station at Lake
Alfred to determine what savings, if any, can be made in cultural
practices in groves where the fruit is intended for the cannery.
A $175,000 addition to this experiment station, including a
small experimental canning plant, has made it the only citrus re-
search center in the world that covers all phases of growing, pack-
ing and processing citrus and its by-products.

Vitamin P Studied
The research department of Florida Southern College's new
citrus school, established this season at Lakeland, has already made
remarkable strides in the study of Vitamin P, a substance extracted
from the juice and peel of citrus fruit, which is essential to the
proper functioning of the small blood vessels. This study may
12







eventually prove to be the key to the secret for relief of high
blood pressure, one of the nation's foremost killers.
Other research projects within the industry have included a
continued study by several organizations, including the Florida
Citrus Exchange, to find a practical way of selling citrus juices in
the beverage field.
The Exchange has traditionally taken a leading role in the
industry's efforts to increase outlets for citrus, to improve quality
of the fruit, to reduce costs of growing and marketing fruit and to
encourage cooperative marketing. Only through cooperative mar-
keting can the citrus growers of Florida ever hope to receive a fair
return for their investment and work.
Looking toward the future, the Exchange established a $1,000
scholarship this season in cooperative marketing to be awarded
annually to an outstanding graduate of the School of Agriculture
at the University of Florida.
More than ever before, the Exchange is convinced that coop-
erative marketing must eventually replace the disorderly market-
ing practices that have been largely responsible for red ink returns
to citrus growers during the height of American prosperity.
CITRUS OUTLOOK
INDICATIONS are that Florida's 1948-49 citrus crop will
be even bigger than the record-breaking production of 90,900,000
boxes this season. If weather conditions continue favorable, we
can expect better quality and therefore better consumer accept-
ance.
Buyers are becoming more cautious and are demanding better
quality in all products. The Florida citrus industry is aware of
this fact, and the Florida Citrus Commission has appointed a grades
committee to work with the state and Federal departments of
agriculture in an endeavor to establish better standards for Florida
fruit. It is believed there will be some improvement in the stand-
ards for fresh fruit next season.
An effort is also being made to improve the quality of canned
citrus juices, but it is very difficult to control canners who have
vigorously and successfully opposed all state and Federal regula-
tions that might control the quality of these products or the vol-
ume into the markets.
Florida can again expect keen competition from Texas' grape-
fruit next season. The cost of production in that state is admit-
13







tedly lower than Florida's and the Texas crop may again be sold
for less than the cost of production, unless orderly marketing
practices are introduced.
California groves, hit by a drouth this Spring, will produce
less Valencia oranges this year by about 7,500,000 boxes, which
may mean higher prices for Florida oranges at the opening of the
1948-49 season. California normally ships its Valencias from May
through October.
All citrus producing states are cooperating in their efforts to
sell citrus in large quantities through the European Recovery Pro-
gram, but the extent to which it is included in the program will
largely depend upon the willingness of the 16 participating coun-
tries to accept citrus. The industry has a tremendous selling job
ahead of it. The question of how much citrus we can sell for dis-
tribution in Europe during the four years of the Marshall Plan
will perhaps not be decided in Washington, but in such foreign
capitals as London, Paris, Brussels and Stockholm.
Our own domestic markets must be further developed in the
meantime by more intensive efforts to sell citrus through the bev-
erage field, by further educating the public to the health qualities
of citrus, by promoting citrus-especially grapefruit sections-
for use in salads and desserts, and by offering the buyers better
quality fruit.

Cooperative Marketing Needed
There was considerable comment throughout the state this
season on the obvious need for cooperative marketing in the Flor-
ida citrus industry. It was pointed out that the industry needs an
organization that would control a big majority of the tonnage, and
lend its influence to the plan to bring canners under the Federal
Marketing Agreement Act, and work toward state-wide volume
prorate.
The Florida Citrus Mutual, a proposed organization that would
permit participation by growers, canners and shippers, is being con-
sidered by the industry, and it is hoped the industry will support
this organization to cure the existing marketing evils.
The Exchange, through action of its board of directors, went
on record as favoring any cooperative plan that is legal, practical,
fair and for the good of the growers.
In summarizing the 1947-48 season, and looking ahead to next
season, we have sacrificed a big and expensively produced crop
14







during a period of national prosperity, because of the failure of the
industry to get together on an effective, orderly marketing pro-
gram that could protect the dealers and consumers by preventing
the shipment of poor quality, cheap- canned citrus. If Florida cit-
rus growers are to regain the confidence of consumers and dealers,
it is necessary that we ship better quality fresh fruit into the mar-
kets, eliminate the competition of poor quality canned citrus, and
give the dealer the protection he is rightfully entitled to when
handling Florida citrus to prevent his losses by competitors' buying
at a lower price. We must conduct an aggressive research program,
promote the use of citrus in the beverage field, and more effec-
tively advertise the healthful, delicious product that we grow so
abundantly in Florida.








EXCHANGE SEASON

SALES DEPARTMENT

ALTHOUGH the fruit marketed by the Exchange sold generally
at the top of the market price, the average for all Florida fruit,
including the Exchange's has been disappointing during the 1947-
48 season. The same factors that have adversely affected prices for
all Florida citrus principally poor
quality fruit and the competition of low
priced canned citrus of poor quality-
have likewise affected Exchange prices.
The Sales Department has sought to
open new and additional outlets for both
fresh and canned citrus by conducting
special promotions in selected markets.
Experienced salesmen were sent to these
markets to talk with buyers, jobbers and
brokers and to point out the fact that
Florida citrus was the best food bargain
in America this season. The additional
juice in a Florida box of oranges and the
FRED S. JOHNSTON one-fifth extra bushel of fruit were good
General Sales Manager talking points, but not good enough.
The dealers wanted assurance that they could buy at our price and
not be faced with a loss by their competitors' buying at a lower
price. We could not offer the dealers this assurance because of
the disorderly marketing conditions that existed in Florida.
The Control Committees eliminated shipments of all No. 2
fruit and held to a 60-40 combination or better throughout most
of the Valencia season. Despite this action, and despite the fact
that shipments were comparatively lower this season than the same
weeks last season, prices for all Florida fruit, including the Ex-
change's, were lower.
The Sales Department made every effort, and worked harder
than ever before, to obtain a more satisfactory price for the Ex.
change fruit.

The Exchange's advertising program was increased to include
newspaper, radio and dealer service promotion in the principal
markets. The work of the Advertising Department was closely
16









coordinated with the promotional and sales activities of the Sales
Department.

Although the average price for Exchange fruit was higher than
the average for the rest of the state, these prices will not be satis-
factory. Only through the cooperation of all factors within the
industry will we be able to obtain fair prices for citrus.



STATE PERCENTAGES OF FRESH FRUIT SHIPMENTS OF
FLORIDA, TEXAS AND CALIFORNIA
THROUGH MAY 1, 1948, AS COMPARED WITH SAME
DATE LAST SEASON

STATE ORANGES GRAPEFRUIT
1947-48 1946-47 1947-48 1946-47
Florida ---- -. 56.1 54.0 39.9 39.8
Texas ----- ... 13.2 9.4 59.0 59.5
*California --. 30.7 36.6 1.2 0.7
*Season begins November 1.



PER CENT OF PRIVATE SALES COMPARED WITH
AUCTION SALES, MADE BY EXCHANGE SALES
DEPARTMENT THROUGH MAY 1, 1948

PRIVATE SALES AUCTION SALES
1947-48 1946-47 1947-48 1946-47
Percentage -.-. 50.6 54.0 49.4 46.0



STATE AND EXCHANGE CARLOT SHIPMENTS
THROUGH MAY 1, 1948
(1) (2)
State Totals 1947-48 1946-47 Increase Decrease Per Cent of Decrease
Oranges 40,737 52,252 11,515 22.0
Grapefruit 14,331 16,143 1,812 11.2
Tangerines 5,471 5,466 5 0.1 (increase)

Total 60,539 73,861 5 13,322 18.0
(1) Preliminary (2) Corrected
Exchange Totals
Oranges 7,318 9,191 1,873 20.4
Grapefruit 3,456 4,216 760 18.0
Tangerines 922 1,050 128 12.2

Total 11,696 14,457 2,761 19.1








EXCHANGE DISTRIBUTION BY TOWNS, CUSTOMERS AND STATES
AS OF MAY 1, 1948-LAST SEASON COMPLETE
Canadian New Total Number
Provinces Customers Customers Towns Towns States
Entered Sold Sold Entered Entered Entered
May 1, 1948 6 615 154 55 308 41
May 3, 1947 8 705 229 79 347 43
Season 46-47 8 770 271 87 356 43

ESTIMATED FLORIDA "ON TREE" RETURNS
INTERIOR AND INDIAN RIVER
SOURCE: U.S.D.A. ORLANDO, FLORIDA
Oranges Grapefruit Tangerines
Month Fresh Canned Fresh Canned Fresh Canned
Sept. 15 -
Oct. 15 1.93 .95 1.38 .07 -
Nov. 15 .73 .45 .70 .17 1.99 .02
Dec. 15 .53 .36 .33 .20 .92 .04
Jan. 15 .59 .44 .43 .21 .72 .15
Feb. 15 .90 .64 .43 .18 1.14 .10
Mar. 15 1.15 .59 .32 .10 -
Apr. 15 .73 .33 .22 .06 -
Note: October, November, December, January orange prices are Early and Midseason,
thereafter Early and Midseason and Valencia combined.

SALES DEPARTMENT CANNING DIVISION

OUR stocks of canned citrus accumulated during the canning
season of 1946-47 were sold out completely by early Fall, with an
excellent consumer demand created for Seald-Sweet merchandise.
This is substantiated by the fact that 49
per cent of the Exchange canning sales
and deliveries by April 24 this season
I have been under our Seald-Sweet label,
with only 51 per cent private labels,
compared with the state average of 67
per cent on private label business.
Bartow Growers Cooperative, Bartow,
Fla., applied for membership in the
Florida Citrus Exchange for the purpose
of marketing their production of can-
ned citrus, which application was ap--
proved and accepted.

Canning for 1947-48 has been ex-
ales Maager, CannSEEHOFng tremely heavy on orange juice. Reports
as of April 24 indicate that 33 per cent
more canned orange juice had been produced this year as com-
pared with a like period last year.
18








Prices for canned orange juice prevailing during the greater
portion of the year have been at a very unsatisfactory level, except
for only one period of less than thirty days, when prices approached
a profitable level to grower and canner.

Blended juices were in over-supply the greater portion of the
year. Seventeen per cent more blend had been produced by April
24 than for a like period last year. The cause for the over-supply
was canners' inability to make grade A fancy orange juice, but
proper grade for blend was maintained through the use of high-
acid grapefruit juice, with the low-acid orange.

Grapefruit juice supplies were carried over in sizable quantities
from the 1946-47 pack and as late as May 8 sizable quantities of
old pack grapefruit juice were still available. This juice was offer-
ed at considerably less than cost of production, which contributed
to the fact that the pack as of April 24 was 18 per cent less than
the pack of the previous year.

Price levels on both grapefruit juice and blend have been at a
very unsatisfactory level the greater portion of the year.

The total pack as of April 24 was 20 per cent greater than the
previous year, with a movement 8 per cent greater than the
previous year. Including all canned citrus, however, available
stocks were 44 per cent greater at that time than for a like period
last year.

Prices during the entire year have fluctuated to such an extent
that buyers could not purchase with any confidence, a condition
which created dull trading conditions.

It is felt that when canning has been concluded for this year
and stocks of available merchandise accurately computed, with a
continued movement on the same levels that have existed until May
8, such stocks, particularly those in top quality and grade, will
bring much more favorable prices.

Sales records indicate we have expanded our markets for Seald-
Sweet merchandise and that consumer demand is being created for
this brand.










The following figures offer comparable packs for 1946-47 and
1947-48 (Converted to basis of No. 2 cans) :


Pack Pack
1946-47 1947-48
as of Apr. 26 As of Apr. 24 Increase
Orange Juice 13,675,476 20,777,562 7,102,086
Blended Juices 7,948,378 9,525,734 1,577,356
Grapefruit Juice 7,592,636 6,130,660 -
Grapefruit Sections 5,128,793 2,947,340 -
Range of industry prices prevailing as of May 10, all per dozen and
were as follows:


Orange Juice (Grade A)
Sugar Added ---- -
Unsweetened -------
Orange Juice (Grade C)
Sugar Added --. ----
Unsweetened ------- --
Blended Juices (Grade A)
Sugar Added
Unsweetened ---... ----
Blended Juices (Grade C)
Sugar Added or Unsweetened
Grapefruit Juice (Grade A)
Sugar Added ------
Unsweetened .-- ---
Grapefruit Juice (Grade C)
Sugar Added ------.--
Unsweetened .-- .--..


No. 2's
$ .75 .80
.722 .80

.67% .75
.65 .75

.672 .70
.65 .70

.62/2 .67/2

.57/2 .62/2
.55 .60

.55
.52/2


Decrease


1,461,976
2,181,453
all f.o.b. factory,


46-oz.
$1.75 -
1.70 -


1.60 1.75
1.60 1.70

1.55 1.60
1.50 1.60

1.45 1.55

1.25 1.45
1.25 1.40

1.30
1.25


NEW HOME JUICER




This Seald-Sweet
juice extractor, which
quickly and thor-
oughly reams the
juice from a half or-
ange, is designed in
three parts for easy
cleaning. Manufac-
turer is L. E. Mason

Company of Boston.








ADVERTISING DEPARTMENT
THE Seald-Sweet trademark for both fresh and canned citrus
was extensively advertised during the 1947-48 season. News-
paper advertisements appeared in 43 daily papers twice a week
in 22 of the principal markets. Local retailers in many of these
markets supplemented our advertising
aN program by including Seald-Sweet in
their own advertisements in these news-
papers. While these additional refer-
ences to Seald-Sweet were made with-
out cost to the Exchange, they increased
'I in a substantial amount the value of our
.d r advertising program.
Dealer service representatives of the
Exchange also promoted our brands in
the markets and distributed display ma-
S trial.
The Exchange participated again this
season in the Florida Citrus Exposition
CARLISLE KYLE at Winter Haven, February 16-21, with
Advertising Manager a 200-foot exhibit that was the largest
on the fairgrounds. This display included five animated dioramas
that illustrated the growing, harvesting and marketing of fresh
and canned citrus. This exhibit was also displayed at the Florida
State Fair in Tampa, February 3-14, and a part of it was exhibited
at the Florida Sportsmen's Exposition at Eustis, March 15-20.
Citrus Magazine, published monthly by the Exchange and wide -
ly subscribed to throughout the industry, increased in circulation
and was enlarged by the addition of several more pages. Exchange
activities were further publicized by special booklets and frequent
news releases to the press. Arrangements were made to have the
Seald-Sweet trademark stamped on each aluminum home juice ex-
tractor manufactured by the L. E. Mason Company of Boston,
and also to have Seald-Sweet printed in prominent red letters on
each carton containing these extractors. A similar arrangement
was made with another company to have Seald-Sweet displayed on
an electric extractor designed for commercial use, but this larger
extractor has not yet gone into production.
The Indian River District enlarged its advertising program
that has for years been instrumental in obtaining a premium price
for Florigold and Flo oranges and grapefruit on the auctions. Radio
participation included Florigold's Song Weaver program, heard








five days a week at New York, the Mother Parker program at Bos-
ton and the Anice Ives program at Philadelphia. Dealer service
men promoted Florigold and Flo in all three cities. These brands
were extensively advertised in newspapers, including Jewish and
Italian papers, in the New York area.

LAW DEPARTMENT
THIS has unquestionably been one of the busiest and, in many
respects, one of the most exacting seasons every experienced by the
Exchange's attorney. Aside from an unusually heavy schedule of
routine matters, the past year was replete with matters of major
importance to the Exchange and prob-
lems that vitally concerned all farmer
cooperatives. It is worth while to re-
view some of the more outstanding ones.
t 1During the 1946-1947 season two of
the larger importers of fresh fruits in
Belg'um exhibited such an overwhelm-
ing desire to buy Florida oranges that
they placed three different orders with
the Exchange for shipment in non-re-
frigerated boats on an f.o.b. Tampa
basis under irrevocable letters of credit
providing for payment for the oranges
in Tampa upon presentation of clean
COUNTS JOHNSON ocean bills of lading, which were fur-
General Counsel nished by the carrier in every instance.
Significantly enough, each bill of lading was stamped "Ordinary
Stowage, Buyer's Risk". It is just possible that the exorbitant
high retail price level of oranges in Belgium at the time could have
been the justification of the buyers for assuming so willingly such
a high degree of risk. However, according to these buyers, none
of the shipments arrived in satisfactory condition and they claim
to have suffered very large losses, a circumstance which, of course,
if true, the Exchange greatly regrets, but one of which the buyers
could reasonable and, unquestionably, did forsee-otherwise they
would never have placed the orders under the conditions and on
the basis under and by which the shipments were made. Despite
all of this and despite the fact that the contracts of sale were en-
tered into and completely executed in Tampa, Florida, and despite
the further plain fact that no Belgian Court could possibly obtain
jurisdiction of the Florida Citrus Exchange, in the absence of its
voluntary appearance, these buyers nevertheless instituted three








suits against the Exchange and the carrier in the Commerce Court
in Antwerp, Belgium. If such buyers instituted this litigation on
the theory that regardless of the facts of the law involved they
could, as against an American concern in a Belgium court, obtain
judgment, even though of dubious value and validity, then they
have certainly insulted and violated the integrity of every court
in Belgium. Whatever their theory, the Exchange has no intention
of even attempting to defend these suits on their merits for they
are so obviously without merit. However, on the assumption that
the Belgian Court in which the suits are pending would give full
force and effect to Belgium's own laws with respect to jurisdiction
of foreign nationals, the Exchange's attorney went to Europe the
latter part of March this year and made arrangements to have the
jurisdiction of the Commerce Court in Antwerp over the Florida
Citrus Exchange challenged at the appropriate stage in the pro-
ceedings.
The Exchange's attorney attended all sessions of the hearings
in Washington, D. C., before the Ways and Means Committee of
the United States House of Representatives on the question of
repeal or modification of the exemption from Federal income taxes
accorded farmer cooperatives, which hearings lasted throughout
most of the month of November, 1947. He also attended numer-
ous meetings in Chicago and Washington of the Legal and Tax
Committee of the National Council of Farmer Cooperatives and
the American Bar Association's Committee on Statement of the
Law of Cooperatives, he being a member of both of these com-
mittees.
During the season the Law Department handled an unprece-
dented number of trademark registrations under the new Federal
Trademark (Lanham) Act. While many of these were new reg-
istrations, most of them were old established trademarks that were
seeking the additional protection afforded by the Lanham Act.
In the early part of 1948 the Jacksonville office of the Bureau
of Internal Revenue announced a ruling that shocked the citrus
industry to no small extent. It was held that in computing Federal
income tax liability a citrus fruit grower would not be allowed to
claim losses for partial damage to citrus trees as the result of
storms, hurricanes, freezes, etc.-that there must be total destruc-
tion. The attorney for the Exchange vigorously challenged the
validity of such ruling. After a number of conferences in Jack-
sonville and Washington with officials of the Bureau of Internal
Revenue such ruling was reversed and it was held that loss from
partial damage could be claimed. Publication of the Bureau's
official ruling is expected any day.
23








When the hearings on S.2173, providing for inclusion, among
other things, of citrus fruits for canning and freezing under Fed-
eral marketing agreements and orders, were held before the sub-
committee of the United States Senate Committee on Agriculture
and Forestry, the Exchange attorney appeared and testified in sup-
port of the measure, both for the Exchange and the Florida Citrus
Producers Trade Association.

TRAFFIC DEPARTMENT
THE high level of Agricultural and Industrial production taxed
rail transportation throughout the past season and at times the
railroads were unable to furnish enough refrigeration cars for the
movement of fresh fruits and vegetables. The building of new
refrigerator cars is progressing slowly
and deliveries of new cars, so far, has
not been adequate to replace the worn
out cars withdrawn from service.
On October 13 the Interstate Com-
merce Commission granted an emer-
S, agency increase of 10 per cent on all
.charges except refrigeration. On Jan-
i uary 5, 1948, this emergency percent-
age was increased to 20 per cent with a
maximum of 20c per 100 pounds, and
on May 6th all refrigeration and other
protective service charges were increased
10 per cent and freight rates further
Traffic Manager increased to 25 per cent with a maxi-
mum of 22c per 100 pounds.
The movement by truck during this season has increased ap-
proximately 30 per cent over the same period last season. Re-
frigerated steamer service was not available to Eastern markets
this season.
For the season of 1946-47 the Exchange Traffic Department
filed 1308 claims amounting to $187,233. For the period of Sep-
tember 1, 1947, through April 30, 1948, a total of 594 claims
were collected amounting to $72,640.








GROWERS LOAN AND GUARANTY COMPANY

THE year ended April 30, 1948, was the thirty-first in the fi-
nancing service of the Growers Loan and Guaranty Company to
the associations and grower members thereof affiliated with the
Florida Citrus Exchange.
Its function is to extend seasonal op-
i.f l rating credits to associations and crop
production loans to their members. Dur-
ing this period, loans aggregating ap-
proximately fifty-five million dollars
f were made, with a loss experience com-
paring most favorably with any similar
corporation or commercial bank. During
the preceding twelve months, such loans
and discounts amounted to approxi-
mately $2,400,000.00-a slight increase
over last year.
The industry has now experienced
two successive seasons of low fruit prices
s. L. LOONEY and high production and processing costs
which in many instances have resulted
in operating deficits. Fortunately, most Exchange affiliates, hav-
ing accumulated substantial reserves during the war period of high
prices, are in a strong position and are able to render a complete
and efficient service at actual cost to their members. Also, a sub-
stantial number of Exchange growers accumulated sufficient re-
serves to maintain their groves in good condition during this period
of readjustment. It is now apparent, however, that both associa-
tions and their growers will find it necessary and advantageous
to use the company's credit facilities to a much greater extent than
in the past. The close relationship existing between the company
and the associations and their members makes it possible for it to
understand fully their operating problems and to render a prompt
and efficient service on a liberal, but sound basis.
The excellent performance record of the company over a pe-
riod of thirty-one years in its dealings with Florida and out-of-
state banks, together with the splendid cooperation of the banks,
particularly those in Florida, has made it possible for the company
to reduce its interest rates and other charges incident to the making
of loans, until now they compare most favorably with the total
cost of operating capital loans and production credit loans through
the government sponsored Bank for Cooperatives and Production
Credit Associations. Florida banks have also been helpful in many








other ways to the Florida Citrus Exchange and the industry, and
are now evidencing a keen interest in industry problems and a sin-
cere desire to work closely with its leaders in their efforts to bring
about a more orderly marketing program.

The company is in an excellent financial condition and has
ample resources to finance all sound loan requirements of the
Exchange affiliates and their members.

EXCHANGE SUPPLY COMPANY
SOMETIME ago the boards of directors of the Florida Citrus
Exchange and Exchange Supply Company, realizing the need for
an efficient supply organization, appointed a joint committee
consisting of members of both boards for the purpose of develop-
ing a plan for the reorganization of the Exchange Supply Company
and increasing its scope of operations. This committee has had
several meetings in recent months at which many propositions and
suggestions from those interested in increasing the efficiency of
the company were considered.

At the outset, the committee realized that in order for the
Supply Company to be successful and operate efficiently in every
respect, it must have the complete confidence and loyal support of
all packing houses, particularly their managers. It was also con-
vinced that with aggressive management and such support from
Exchange affiliates, an efficient service could be rendered and
savings effected which in time would result in an organization
that would be a real asset to the Florida Citrus Exchange and its
members.

Having so concluded, the committee, after considerable study,
came to the unanimous conclusion that a provision should be made
whereby the general manager and treasurer of the Florida Citrus
Exchange would also serve in the same capacities as officers of the
Exchange Supply Company. It was believed that such action would
tend to restore confidence in the Exchange Supply Company and
increase its efficiency.

Every effort will be made to build an efficient Supply Com-
pany to take care of the requirement of our members and to
enable them to effect economies in their purchases.
26










34n 1Mrmoriam


CHARLES H. WALKER, PRESIDENT 1939-1947
DECEMBER 24, 1871-OCTOBER 12, 1947


*


WALKER MEMORIAL SANITARIUM AND HOSPITAL NEAR AVON PARK




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