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is a concise review
of the marketing of
citrus during the season
of 1949-50 by the Flor-
ida Citrus Exchange.
THE HOME OF
THE FLORIDA CITRUS EXCHANGE
The Florida Citrus Exchange, a
federated cooperative, for more
than 40 years has been the biggest citrus marketing
organization in the state. With administrative
offices in Tampa, the
Exchange has affiliated packing houses
and processing plants throughout
the citrus producing area of Florida.
O F F I C E R S
W. C. Van Clief
Phil C. Peters
A. V. Saurman
H. C. Allan
John L. Olson
S. L. Looney
C. C. Commander
GENERAL SALES MANAGER
Fred S. Johnston
S. L. Looney
(.irlili K \Il
E. D. Don
CANNING DIVISION MANAGER
Frank J. Poitri,
C C. COMMANDER
S. L. LOONEY
FLORIDA CITRUS EXCHANGE
F LORIDA citrus growers reaped the richest harvest in the history
of the industry during the 1949-50 season.
This unprecedented prosperity was due to the continued phe-
nomenal growth of frozen concentrate, another freeze in California
that sharply curtailed shipments from that state, the stabilizing
effect of minimum prices established by Florida Citrus Mutual, a
hurricane that reduced the size of the Florida crop and the highest
national payroll in history.
More capital was invested in the Florida citrus industry, especi-
ally out-of-state capital, than during any other single season. Thou-
sands of acres of new groves were planted and are still being
planted. Modern concentrating plants, representing investments
of millions of dollars, were con-
structed in various parts of the
state. Other plants were exten- 1 9
sively remodeled and enlarged.
Additional millions of dollars
were spent to expand mechanical
facilities for the production and LU
transportation of the big Florida
crop, estimated at 58,800,000 F L O R ID A C
boxes of oranges, 24,000,000
boxes of grapefruit, and 5,000,-
000 boxes of tangerines.
One of the heaviest, multiple blooms in the memory of growers
indicated the probability of a record-breaking crop for the 1950-51
Texas, California Recover
Texas production is expected to increase rapidly as groves in
that state continue to recover from last season's devastating freeze.
Additional thousands of acres of citrus, both oranges and grape-
fruit, were planted in Texas this season as prices soared. More new
plantings can be expected.
California, set back two years in a row with severe freezes, will
be a bigger factor next season if the weather permits. An increase
in rainfall in that state would undoubtedly alleviate to some extent
the problem of small sizes.
Foreign shipments of citrus into this country increased at an
astounding rate this season. Mexico had sent more than 275,000
boxes of oranges into the United States and Canadian markets by
late Spring, compared with virtually none the previous season. A
token shipment of oranges from Palestine was received at New
York. Lemons from Sicily were competitive with California lem-
ons despite vigorous protests from growers in this country. There
were rumors of contemplated plantings in South American coun-
tries. Airlines were reportedly investigating the feasibility of air
freight for frozen concentrate. The Florida citrus industry pre-
pared to fight any effort on the part of Congress to reduce federal
tariffs on citrus.
Retail Prices Hit Top
Retail prices on citrus marketed in all forms this season ap-
proached the maximum which the American housewife could be
expected to pay, especially considering that many other competi-
tive fruits and vegetables, such as apples and tomatoes, were not
bringing comparably high prices.
There were reports that the
sale of frozen concentrate met
1 9 5 0 with buyer resistance when the
retail price of a six-ounce can ex-
ceeded 29 cents. Some concen-
trators reduced the retail price to
UMMARY Ibelow 30 cents when most con-
centrators had reduced prices paid
S E X C H A N G E to the grower from the season's
peak of $3.50 a box in March to
$2.50, Mutual's floor price estab-
lished April 20.
Some concentrators indicated they would prefer to buy fruit
from the growers on a long-term basis at a price that would enable
the product to retail at a competitive price, which would also return
the grower a reasonable profit. By eliminating the mountains and
valleys in the price structure, the grower could be assured of finan-
cial security and the concentrator could promote sales in a more
orderly fashion. The Snow Crop contract to buy 2,500,000 boxes
of oranges from the Exchange this season has been successful, and
Snow Crop has been interested in seeing that growers receive a fair
return for their fruit.
All these concentrators are in sound financial condition, with
extensive investments in processing plants. They can absorb a huge
volume of the crop each season, which will have its effect on the
two other principal channels of distribution, single strength can-
ning and fresh fruit. These concentrators have large and successful
merchandising organizations that can market a tremendous volume
of Florida fruit at popular prices.
High Quality Demanded
Although the volume of fresh fruit shipments declined about
30 per cent this season, because of the increased percentage of fruit
moving to the concentrate plants, there will always be a market for
fresh fruit. Consumers are demanding high quality, however, and
more careful attention must be given to the grading, packing and
keeping quality of fresh citrus. The new state maturity law, in
effect for the first time this season, helped to insure better quality.
Although there were protests against the law, none of these com-
plaints was upheld in court. Some growers complained that the
higher maturity law would prohibit the marketing of certain varie-
ties of citrus, but there were no varieties that could not eventually
be marketed in one of the three outlets: fresh fruit, frozen concen-
trate, single strength canning.
The general quality of Florida citrus this season, however, was
not up to standard because of weather conditions and other factors.
Shipments and Prices
Due to the higher maturity standards of the new Citrus Code
and because of the later than usual bloom of the 1949-50 crop,
shipments did not move in volume until late in October. Opening
prices were high. By November 5 a total of 1,324 cars of Florida
oranges had been shipped to auction at an average price of $5.07.
The auction market tumbled during the next few weeks to an
average of $3.32 the week of November 26.
When a demoralized market for the Christmas holidays ap-
peared likely, Mutual took the situation in hand by establishing
minimum prices of $2.35 fob for packed oranges and $1.10 per
box to canneries. This action brought immediate stability to the
The market continued to rise during the early part of this year
as California suffered another severe freeze, and the frozen concen-
trators in Florida began to buy in heavy volume. History was
made in the Florida citrus industry as the market steadily advanced
to previously unheard of heights. By the end of the early and mid-
season orange deal, concentrators were paying $3.50 delivered for
oranges. The week ended March 11, a total of 1353 cars of oranges
brought an average of $6.37 at the 10 auctions.
As retail prices also soared, sales began to drop noticeably. The
fresh fruit market began to decline and buyers withheld orders
when lower prices appeared inevitable.
Mutual once again stepped into the picture with positive action.
Minimum prices were established April 20 for oranges at $3.25
to $3.75, depending on size, and $2.50 per box for oranges delivered
to canning or concentrate plants. This action once again brought
stability to the market. Buyers placed orders with confidence and
these prices were maintained.
As the season neared a close on May 13, Florida had shipped 26
per cent less fresh citrus of all varieties. The total of all varieties
processed this season showed only a slight increase due to a great
reduction on the grapefruit pack. Processors used 58 per cent of
the total movement to May 13 this season. Of the processed oranges,
50 per cent was used by frozen concentrators, 50 per cent by can-
The frozen concentrators utilized 105 per cent more citrus this
season than during the previous season.
The railroads handled 26,905 cars, or 46 per cent of the total
shipments; the trucks handled the equivalent of 27,248 cars, or
47 per cent, and the ships handled the equivalent of 4,111 cars, or
7 per cent. Last season to the same date, the railroads handled
60 per cent and the trucks 40 per cent. The Refrigerated Steam-
ship Line was not in operation during the season of 1948-49.
OUTLOOK OR NEXT SE ON
Extremely high prices this season have lulled many growers
into a feeling of security that is not justified by the economic fac-
tors involved. While next season should be profitable to the grow-
er, there is no reason to believe that prices will be fantastically high
or that the grower will receive more than a reasonable, modest
profit on his investment. In fact, there are grave possibilities of an
oversupply next season if the big crop is not marketed in an orderly
Early estimates indicate a record breaking crop for Florida dur-
California production, off 20 per cent this season, will be almost
back to normal. Texas, likewise, is recovering at a rapid rate and
will market considerably more citrus next season. The total national
citrus crop will approach or break all records, which means this
big crop obviously must be marketed in an orderly fashion.
If the ever-increasing production of citrus is going to be mar-
keted, it will be necessary to utilize to the utmost capacity all
avenues of distribution: fresh fruit shipments, single strength and
Frozen concentrate plants in Florida utilized 13,706,000 boxes
of oranges, through May 13 and can be expected to utilize even
more during the next season. The extent of this increase will de-
pend upon such factors as whether the quality is maintained, the
rate at which food stores throughout the nation can be equipped
with frozen food compartments, and the competition of other fruit
A recent survey indicates frozen concentrate is meeting with
excellent acceptance when the retail price does not exceed 29 cents
for a six-ounce can. This survey also reveals that frozen concen-
trate is more competitive to single strength canned citrus than to
fresh citrus. Frozen concentrate will increase the total consump-
tion of citrus products if the quality of this popular product is
The consumption of fresh citrus has more than doubled during
each of the last several decades as the nation has become more con-
scious of the health qualities and delicious taste of citrus juices.
There will always be a demand for fresh citrus, regardless of how
much frozen concentrate is sold. The consumer, however, will
demand fresh citrus that tastes as good as it looks and will promptly
turn to frozen concentrate if the fresh citrus available is not of
comparable or better quality. The total consumption of citrus can
be expected to continue to increase, especially considering that the
four biggest concentrate concerns, which control 83 per cent of
the concentrating facilities, will spend considerably more money
advertising Florida citrus than the growers themselves in Florida
have ever spent in a single season.
It was primarily an increase in consumption that enabled citrus
to be the only agricultural commodity that received satisfactory
prices this season, except those commodities subsidized by the fed-
Under the weight of near-record crops, the prices received by
growers for deciduous fruits dropped to levels well under the pre-
The 1949 United States commercial apple crop, which final
estimates tallied at 133,181,000, was 45 per cent above the short
1948 crop, and largest since 1939. Apple storage stocks this spring
were 50 per cent larger than the previous year.
The 1949 crop of peaches was estimated at 75.1 million bushels,
15 per cent larger than the small 1948 crop and nine per cent larger
than the 1938-47 average. Although production in the 10 South-
ern peach states was about eight per cent below the small 1948
crop, production was larger than the previous year in nearly all
other important peach-producing states. The new peach crop in
the Carolinas and Georgia was reduced by a freeze late this Spring.
California pear growers faced losses this year because of an
extra large 350,000 ton pear crop and the unprofitable nature of
Bananas continued to provide the largest tonnage of imported
fresh fruits. Although they are now being imported at near the
prewar rate, because of the increase in population, consumption of
nearly 20 pounds per person per year is still more than three pounds
under the prewar (1935-39) rate.
Transportation costs continue to be excessively high. Since
1947, the Interstate Commerce Commission has authorized three
general advances in freight rates, which have resulted in advances
of approximately 57 per cent. The advent of trucks and water
transportation, with lower rates on citrus fruits, has resulted in
some readjustment of the all-rail rates, and in many markets the
freight rates are competitive with truck rates.
The present rates to Eastern Seaboard markets and a limited
area around Chicago, and the box car rates in the Southeast, are on
a reasonable basis, but other territories are still suffering from high
rates, which should be reduced prior to another season.
Industry leaders at the transportation forum held during the
annual convention of the International Apple Association at Chi-
cago agreed that, if the railroads do not take a realistic attitude in
revising their rates and delivery schedules, they will find that trucks
will be hauling most of the fresh fruit and vegetable crops grown
in the United States.
In line with this trend toward trucks, a plan under which
truck owners would not be required to obtain license tags from
each state in which their vehicles operate was suggested in Wash-
ington, D. C., by Representative Wickersham of Oklahoma.
"Trains don't have to stop at every state line and buy a tag
in that state before they can pass through it," he said in disclosing
that he plans to introduce legislation to simplify the licensing of
Resumption of steamship service between Fort Pierce, Jackson-
ville and New York was announced by the Refrigerated Steamship
Line. According to Mr. Ralph Keating, president of the Line, they
have new 5,000-ton ships with a cargo capacity of 55,000 boxes of
citrus, or slightly in excess of 100 carloads. The holds are com-
pletely refrigerated, and there is also a compartment for the trans-
portation of frozen concentrate. The ships make the run from
Fort Pierce in 58 hours.
Trend Toward Trucks
Despite reduced rail rates, there continued to be a trend toward
the use of trucks for hauling citrus and produce. It is estimated
that trucks will haul 46 per cent of the Florida citrus crop of 1949-
50. This trend is due to the fact that trucks, which are now abund-
ant, can offer the buyer faster service at a lower rate. The cost
is especially lower when the buyer furnishes the trucker with a two-
way load, thus eliminating the cost to the trucker of obtaining a
A big percentage of the fruit moving by truck is hauled in
buyers' trucks. In some cities, such as the ones listed here, approx-
imately 95 per cent of the fruit that is moved by truck is in buyers'
trucks: Grand Rapids, rate $1.25 per box; Norfolk, .70; Lynch-
burg, .70; Knoxville, .50 to .60; Louisville, .90; Goldsboro, .50;
Some cities, especially in the South and Southeast, are receiving
three times as much citrus and produce by truck as by rail. For
example, truck receipts for January at Atlanta were equivalent to
1,119 rail cars, while unloads of commodities received by rail
totaled only 340 carloads. The truck receipts far exceeded those
of previous comparable months, while the rail loads were lighter.
Grove Operating Costs
Grove operating costs have increased steadily for the last two
decades, and especially during the years since the last war. A study
of these costs by the University of Florida reveals that operating
costs in 1947-48 (the last season complete costs have been compiled)
were approximately three times the average for the nine seasons
from 1932-41. Furthermore, these costs exceeded the fruit receipts
for any one of those nine seasons and averaged $68.11 per acre
more, or 75 per cent more. In other words, if the costs for these
nine seasons had been the same as for 1947-48, there would not
have been one of the nine when the fruit receipts would have been
as much as operating costs. There would have been a loss each of
the seasons and the average loss would have been $68.11 per acre.
More money was spent for labor, power, and equipment than
any other cost item. The average for these labor-power-equip-
ment items was $34.61 per acre per season. This cost exceeded the
cost of fertilizer materials in 10 of the 17 seasons shown. The
spread between the costs of the two items (labor-power-equipment
versus fertilizer) has increased during recent seasons with the cost
of labor, power, and equipment increasing faster.
The cost item of second importance was fertilizer materials.
This item was 39 per cent of the average operating costs and
amounted to $31.95 per acre.
Spray and dust materials costs averaged $5.92 per acre for the
17 seasons and constituted seven per cent of the operating costs.
State and county taxes averaged $5.50 per acre for the 17-year
period, or three cents per box. While these taxes amounted to
$4.07 per acre in 1942-43, they increased to $9.33 per acre in
1948-49-more than double!
During war-time seasons of high fruit prices, many growers
spared no expense for their groves. This luxurious care that most
groves received was not curtailed as quickly as fruit prices dropped.
The result was that the least efficient groves encountered difficulty
(red ink) quickly after fruit prices began to drop. The most
efficient groves were slower to reach the red ink stage, but careful
planning and study of each grove should result in more economical
production on many of the groves.
There are indications we may not yet have reached the peak of
increases in costs.
Threat of Foreign Insects
The threat of foreign citrus, moving into the nation's markets
because of good demand and high prices, brought along with it the
threat of entry into this country of major plant pests.
Congressmen from Florida, California, Texas and Arizona de-
manded a federal embargo against truck shipments of fruit from
Mexico as protection from the citrus black fly.
Another foreign threat is the Oriental fruit fly. The rapidity
with which this fly spread in Hawaii, after having been brought to
that island from Saipan during the war, indicates that it could
obtain a reasonably strong foothold in almost any part of the
United States and become established before its presence was rec-
Senator Holland recently opposed any move to ship citrus fruit
from Cuba into the United States through Florida ports. He wrote
Secretary of Agriculture Brannan that such importation "would
immediately endanger Florida's multi-million dollar vegetable and
citrus industry because of the risk of entry of major plant pests on
Despite the increasing threat of foreign pests, the United States
government considered a plan to relax to some extent its inspection
of passengers' baggage from abroad. The Florida Citrus Exchange
board of directors resolved "that it is unalterably opposed to the
proposed plan of spot or percentage inspection of passengers' bag-
gage from abroad, a system which would provide for the unre-
stricted entry from foreign countries of thousands of units of plant
material, a considerable portion of which is likely to be affected
with insects and diseases capable of causing serious economic injury
to the horticultural and agricultural investments of the state and
The new crop of Florida citrus was struck by a hurricane Aug-
ust 27 that roared in from the Atlantic near Palm Beach, swept
through the Ridge section near Lake Placid and Lakeland. Total
grapefruit loss was estimated at 35 per cent or 11,550,000 boxes.
Total orange loss was about six per cent or 3,600,000 boxes.
Florida enjoyed its second winter without a freeze of any con-
sequence to citrus. In fact, January was the warmest for that
month in 35 years.
Cooperatives and Taxes
The U. S. Department of Agriculture announced it opposes
any change in the tax status of farmer cooperatives, and any change
in section 101 of the Internal Revenue Code relative to such cooper-
atives, for the following reasons:
1. It would represent a fundamental change in public policy
toward farmer cooperatives.
2. According to estimates made by the Treasury Department,
the amount of income taxes that could be expected from any change
in section 101 respecting farmer cooperatives would result in only
a little additional revenue.
3. Farmer cooperative associations, although incorporated,
are in the nature of economic partnerships. No partnership is re-
quired to pay income taxes-the taxes are paid by the individual
4. All patronage dividends or refunds distributed by market-
ing or purchasing cooperatives, whether in the form of cash, certifi-
cates, or book credits, must be accounted for by the farmers in their
income tax returns.
5. A change in the tax status of farmer cooperatives would be
regarded by millions of farm families as a forerunner of more
drastic changes that might seriously undermine the entire coopera-
tive structure and adversely affect the entire agricultural industry.
6. The existing tax status of farmer cooperatives is an aid to
agriculture and is fully justified in the public interest.
It must be recognized that a change in the tax status of cooper-
atives has long been advocated by those whose real objective is to
destroy cooperatives through the discriminatory taxation of so-
called earnings or amounts distributed by cooperatives as patronage
refunds. This is what the National Tax Equality Association and
its affiliates would like to do.
Continued investigation into the health values of citrus indicates
that extensive research work on this subject would be of consider-
able benefit to the public. For example, a North Carolina doctor
reported recovery of cases of poliomyelitis in an average time of
72 hours after administration of massive doses of vitamin C. He
also reported the control by this treatment of other virus diseases,
such as measles, mumps, chicken pox and virus pneumonia.
Extensive research work by Dr. Boris Sokoloff at Florida South-
ern College revealed that canned orange juice is a much more valu-
able product from the health viewpoint than was formerly be-
lieved. Dr. Sokoloff tested the orange juice not only on vitamin
A, vitamin C and riboflavin (vitamin B2), but also made careful
investigation of the vitamin P content as well as inositol, a vitamin
also known as bios.
A weight-reducing diet which can peel the pounds off without
harm, with orange juice serving to take the edge off the appetite
and thus cut down the intake of starchy foods and other pound
producers, was prepared by the Florida Citrus Commission. The
new diet will have the weight of scientific authority behind it.
During recent years there has been a growing campaign to let
the public know that vitamin pills aren't all they've been cracked
up to be by some over zealous zealots. While there may be nothing
wrong with the A, B and C pellets, many scientists are convinced
that Americans have become dangerously vitamin happy. Re-
searchers at the Duke University Medical School, pioneers in the
study of food deficiency and the importance of vitamins, reported
that a box of fresh oranges generally will be a lot more to the point
than a box of pills.
Research work, which hit the jackpot for the Florida citrus
industry in the case of frozen concentrate, developed by the re-
search department of the Florida Citrus Commission, is being ex-
panded on a variety of projects at the Federal and State experiment
stations, and elsewhere in the nation. Some of these projects are
being conducted under the Research and Marketing Act.
The U. S. Department of Agriculture recently developed a new
process for marketing fresh, refrigerated orange juice.
The importance of research work is vividly illustrated by the
development of frozen concentrate. The basic process used by
practically all manufacturers was developed by the research per-
sonnel of the Florida Citrus Commission, working under a cooper-
ative agreement with the Bureau of Agricultural and Industrial
Chemistry of the U. S. Department of Agriculture, after initial
work done by Dr. A. L. Stahl of the University of Florida's Agri-
cultural Experiment Station.
SAL E APARTMENT
Exchange growers experience
most profitable season
FRED S. JOHNSTON
General Sales Manager
THIS season's operations have given the Florida Citrus Exchange
growers the best prices in the history of the organization.
Due to the later than usual bloom of the 1949-50 crop and the
higher maturity standards of the 1949 citrus code, the season was
later than usual in maturing and movement did not get underway
in any volume until the week ended October 22.
During January and February it was difficult for the sales
department to keep pace on f.o.b. prices with the prices that the
concentrate operators were paying. In most instances, however,
comparable prices were maintained but on a lessened volume.
By the middle of April, due to various reasons, the orange
market had declined from these heights. One reason for the de-
cline was the volume of Mexican oranges that were shipped into
the United States and Canada in competition with Florida and
California oranges at considerably cheaper prices.
Mutual, for the second time, stepped in and established mini-
mum prices, after which, with lessened supplies the market ad-
vanced to higher levels.
During the entire season the grapefruit market remained at
relatively high prices and the grapefruit returns to our growers
will probably average the highest of any other season.
Continued on Page 16
FLORIDA AUCTION AVERAGES
Interior Oranges $4.50 $3.76
Indian River Oranges 5.30 4.22
Interior Seed Grapefruit 3.98 2.78
Indian River Seed Grapefruit 4.52 3.25
Interior Seedless Grapefruit 4.79 3.42
Indian River Seedless Grapefruit 6.16 4.11
Temples, Std. Box 6.26 -
Tangerines, Std. Box 5.26 5.08
ESTIMATED FLORIDA "ON TREE" PRICES
Fresh and Processed
Thru April 15, 1950 and 1949
Source: U.S.D.A. B.A
Production this season
Production this season
(May 1 estimate)
Sold fresh to May 13
Per Cent Sold Fresh
Canners used to May 13
Per Cent Processed
Production last season
Sold fresh to May 14
Per Cent Sold Fresh
Canners used to May 14
Per Cent Processed
$2.60 $ .82
$ .55 $ .08
ORANGES GRAPEFRUIT TANGERINES TOTAL
ESTIMATED STATE F.O.B. WEIGHTED AVERAGES
Interior Fruit Only
All Grades and Sizes Combined
*1st 2 weeks
At no time, throughout the season, was it necessary for Mutual
to establish minimum prices for grapefruit as a natural prorate
was more or less effective throughout the season due to the higher
maturity standards as established by the 1949 citrus code.
We did not get as wide-spread distribution in the far west and
Canada on grapefruit as we had hoped for, especially since Texas
was out of the picture by early Spring due to the previous year's
freeze. The lack of this wide-spread distribution was on account
of the extremely large sizes predominating. However, the demand
exceeded the supply at high prices for the small sizes that were
available in these far away markets.
Another factor that decreased our distribution has been the
switching by chain stores and others from an eight-pound bag to a
five-pound bag-this switch being caused by higher than usual
prices. When oranges are shipped in eight-pound bags it only takes
ten purchasers of one bag each to take home a box of Florida or-
anges. Whereas, when they are packed in five-pound bags it takes
sixteen purchasers to take home an equal amount.
In spite of the decline in our volume of fresh fruit shipments,
the sales department, as of May 15, had sold our fruit in 369 cities
to 858 customers. This included sales in 44 new cities to 198 new
This distribution and high prices is all the more outstanding
when it is considered that practically all other items in the produce
field have brought distressingly low prices throughout the entire
As of May 15, the sales department had sold 50.1 per cent of
our fruit on an f.o.b. basis, with 49.9 per cent going to auction. The
auction shipments included practically all of our Indian River
Our method of distribution and selling f.ob. has gradually
changed from telegraphic quotations and confirmations to tele-
phone and teletype contacts, and from rollers of straight cars of
one variety and a run of sizes to truck shipments of specified sizes
of various grades and varieties.
This change in selling has increased detail work and tripled ex-
penses in the sales department. It was not unusual throughout the
season to have as many as three to nine customers participating in
one truckload of fruit, with different sizes, grades, and varieties
for the various customers included in an individual truck shipment.
This not only increased detail work and expenses on the part of the
sales department, but also caused extra time, trouble, and expense
on the part of the packing house, or packing houses, participating
in assembling the loads.
With the existing high prices and the cautious buying on the
part of buyers it was absolutely necessary to take care of a consider-
able volume of this kind of business in order to meet competition
from not only Florida competitors, but from other citrus producing
This increased detail has necessitated extra clerical employees,
additional teletype machines and operators, and increased sales
personnel-all of which the sales department provided to keep the
sales department on an efficient basis and to provide our shippers
and growers with the best possible sales operation. Throughout the
entire season our prices were as high as any other shipper and often
This season's operation has definitely proved that to maintain
prosperity for the Florida grower and a stabilized Florida citrus
market the three methods of distribution must be maintained on
an even keel, that is; single strength juice, frozen concentrate or-
ange juice, and fresh fruit shipments. This season's operation has
also demonstrated that handlers of fresh fruit shipments must give
more attention to the grading, packing, and keeping quality of
fruit moving through fresh fruit channels. There will always be
a demand for fresh fruit shipments, but this demand can only be
held and increased by giving the consumers the very best quality
from every standpoint.
SA LE S P E P A R T M E N IT
FRANK J. POITRAS .
Sales Manager, Canning ..
THE pack of Seald-Sweet canned juices will be smaller than last
year due to the much greater volume diverted to concentrate under
our Snow Crop contract.
To date we have been able to take care of most of our Seald-
Sweet customers but were not able to take as much business under
private label. Our inventory at present, except for tangerine juice,
is much smaller than previous years.
Because the canning plant of the Florence Citrus Growers Asso-
ciation was turned over entirely to the manufacture of concentrates
under the Snow Crop contract, our pack of single strength juice
is being put up by DiGiorgio Fruit Corporation canning plant at
The deliveries under the 2,500,000 box contract with Snow
Crop is within 90 per cent of being current in spite of the period
between mid-season oranges and Valencias when our fruit would
not make concentrate ratios. It is expected that the entire 2,-
500,000 boxes of oranges will be delivered before the end of the
AVERTI ING OEPA RIMENT
Seald-Sweet and other
Exchange brands promoted by
'iS, tLnewspaper, radio and dealer service
h Advertising Manager
FLORIDA Citrus Exchange brands were advertised again this
season on the radio, in newspapers and by dealer service promotions
in markets throughout the nation. In addition to the Seald-Sweet
and Mor-juce brands, the brands of Sub-Exchanges and Exchange
affiliates were promoted under the direction of the advertising
The health advantages of citrus, and the higher standards of
quality for Exchange brands were emphasized in all forms of ad-
vertising. Particular emphasis was placed this season on the fact
that fresh citrus contains all the healthful vitamins attributed to
citrus products. The advertising theme for some promotions was
directed especially to mothers, who were urged to buy fresh citrus
and serve freshly-squeezed orange juice, or halves of fresh grape-
fruit. Numerous recipe booklets containing suggestions for un-
usual ways to serve fresh citrus were distributed, primarily through
the mail, by the advertising department. Most of these were sent
Exchange dealer service representatives made a complete circuit
of the principal markets during the season. Posters, price cards
and streamers were distributed for display.
Exchange brokers were sent letter-inserts throughout the sea-
son to be distributed by mail to their customers. These leaflets
promoted both fresh and canned Seald-Sweet products.
The Indian River Sub-Exchange again promoted its famous
Florigold and Flo brands by radio programs, newspaper advertise-
ments, dealer service, posters and numerous types of selling aids.
A newly designed plastorama-a three-dimensional, colorful type
of poster, lighted with electricity-was displayed in dozens of the
better class retail outlets in New York, Boston and Philadelphia.
They easily dominated the advertising displays everywhere they
In New York, Florigold's Song Weaver, a 15-minute musical
radio program, was heard each Monday and Wednesday at 3:15
o'clock over station WEVD. Newspaper and magazine advertising
in New York included the Jewish Journal, Jewish Day, Jewish
Forward, the big Italian paper, II Progresso, the Westchester Group,
which includes nine publications, and the widely read Newark
In Boston, Florigold and Flo were advertised again this season
six days a week on the Caroline Cabot Shopping Service, from 8:15
to 8:30 in the morning over station WEEI.
The Lake Region Packing Association advertised the high-
quality Hammock brand extensively in Louisville, Ky., Grand
Rapids, Mich., and Evansville, Ind. Advertisements were placed
in the Evansville Press and Evansville Courier, Louisville Times and
Louisville Courier-Journal, Grand Rapids Press and Grand Rapids
Herald. This newspaper advertising was supplemented by dealer
service promotion and a mat service offered to retailers who stress-
ed Hammock in their own local advertisements.
Other Exchange affiliates, such as Mount Dora Growers Coop-
erative, conducted advertising campaigns in certain markets.
Exchange shippers I
kept posted on current
E. D. DOW
Traffic Manager A
DURING the past year freight rates on citrus fruit have under-
gone several revisions. The Interstate Commerce Commission
authorized an increase of 10 per cent, with a maximum of 9c per
CWT, effective September 1, 1949. This had the effect of increas-
ing practically all of our rates 3c per CWT. On October 8, in
order to meet truck competition to eastern terminal markets, the
carriers reduced the rates to New York, Philadelphia, Baltimore
and Washington approximately 3c per CWT, but service was re-
sumed by the Refrigerated Steamship Line between Ft. Pierce,
Jacksonville and New York on October 20, with rates substantially
lower than the all-rail rates. As a consequence, the carriers reduced
their rates on November 12 to meet water competition to those
There also was under consideration last Fall a proposal to meet
truck-competitive rates to Central Freight Association territory,
which embraces the territory lying between the Mississippi River on
the West and the Hudson River on the East. However, the proposal
failed of passage, resulting in four of the interested lines, namely,
the IC, C&EI, CI&L and GM&O, taking independent action and
publishing truck-competitive rates, with free ice, to points located
on their lines in Illinois, Wisconsin and Indiana. These rates were
further extended in February of this year to include Milwaukee,
Wis. The matter of reducing rates to meet truck competition to
the central territory is still under consideration and will probably
be adjusted prior to another season.
In an effort to retrieve traffic to the Southeast lost to trucks,
the southeastern carriers established truck-competitive rates on cit-
rus fruit when loaded in ventilated box cars to all points East of
the Mississippi River and South of the Potomac River, including the
state of West Virginia and river crossings such as Cincinnati, Evans-
ville and Louisville. They also established free ice competitive
rates to the latter points. The revision of all of these rates neces-
sitated the Traffic Department refiguring the rates to all the terri-
tories involved and issuing bulletins for the guidance of our ship-
Until recently we have had an ample supply of refrigerator
cars. A shortage, however, occurred for some unknown reason
during March and April. It was more serious on the Florida East
Coast than elsewhere and there still exists a shortage, due to the
extremely heavy movement of vegetables. The Fruit Growers
Express Co., and their associates, the Western Fruit Express Co.,
and the Burlington Refrigerator Express Co., who serve this ter-
ritory with refrigerator equipment, inaugurated in 1947 a program
for the construction of new cars and rebuilding and modernization
of present equipment and the retirement of obsolete cars. They
now report that they have a total of 20,403 cars in operation as of
February 15, 1950, and there is an additional 916 cars on order for
construction and delivery as soon as practical. They have approxi-
mately 4,300 refrigerator cars, equipped with air-circulating fans,
and all new cars will be so equipped.
Because of the heavy movement by truck and boats and the
regularity with which the railroads have maintained schedule de-
liveries, we will not have a large number of claims on the past sea-
son's business. We have filed up through April 15, 128 claims,
totaling $16,266.14, and we have collected on this and previous
seasons' claims amounting to $35,430.35 since June 1, 1949.
3 Per Cent Federal Transportation Tax
A concerted effort is being made by the fruit and vegetable
trade associations to bring about the repeal of the 3 per cent trans-
portation tax on freight charges; also the 20 percent tax on tele-
phone calls. The removal of the 3 per cent tax would result in a
saving to citrus shippers of 3c or 4c per box, which amounts to a
considerable sum during the course of a year.
Transportation Methods Employed in the Shipment of Citrus Fruit
As of May 4, 1950, there had been shipped from the state a
total of 58,264 cars of all varieties of citrus. The railroads handled
26,905 cars, or 46.18 per cent; the trucks handled the equivalent
of 27,248 cars, or 46.76 per cent; and the boats handled the equiva-
lent of 4,111 cars, or 7.6 per cent. Compared with the movement
last season to the same date, the railroads handled approximately
60 per cent and the trucks 40 per cent. The Refrigerated Steamship
Line was not in operation during the season of 1948-49.
Exchange affiliates or
advised on federal and state
W ITH at least a normal load of the usual routine matters claim-
ing the time and efforts of the Law Department, the attorney for
the Exchange has had to analyze from time to time a number of
Federal and State legislative measures and regulations thereunder
and advise our affiliates as to their meaning, application, and effect.
Chiefly, such efforts have had to with the amendments to the
Federal Fair Labor Standards Act, the Federal income tax laws, the
1949 Florida Citrus Code, and the Florida Revenue Act of 1949,
more commonly known as the "Sales Tax Act". In addition, our
attorney has advised from time to time with many of our affiliates
with respect to problems peculiar to their own operations.
The Exchange's attorney has also continued to work closely
with others engaged in the common effort to combat the perennial
flooding of the country with the customary false and misleading
propaganda against cooperatives. Despite some very sharp revers-
als which they have suffered during the past year, these phony
forces arrayed against the farmers that believe in cooperation for
mutual self-help can be expected to continue their attacks so long
as their phony arguments about tax equality continue to claim
financial support from gullible contributors who won't even bother
to inform themselves as to the true facts involved, nor even the
motives of those who are spending their money with such utter
Considerable proposed legislation now pending in Congress that
affects agriculture in general, and farmer cooperative associations
in particular, is receiving the close attention of your Law Depart-
GROWERS LOAN E GUARANTY CO.
Sf Prompt, efficient credit service
Available to Exchange
affiliates and their grower members
S L LOONEY
ON April 30, 1950 this company ended its 33rd year as an Ex-
change affiliated citrus credit corporation. Its principal function
is to extend seasonal operating credits to the Exchange associations
and crop production credits to their grower members. All affili-
ates of the Florida Citrus Exchange and their grower members are
entitled to this service.
The close relationship existing between the company and the
Exchange affiliates and their members makes it possible for it to
understand fully their operating problems. It therefore renders
a more prompt and efficient service than is obtainable through
other sources of credit. Because of this fact, most of the associations
and grower members who at times find it necessary to borrow oper-
ating funds use the credit facilit-es of the company.
During these 33 years of service, loans to associations and their
grower members aggregating $61,400,000.00 have been made, with
a loss experience comparing most favorably with any similar cor-
poration or commercial bank. During the 1949-50 season crop
production loans to growers and operating capital loans to associa-
tions, including trade acceptance discounted for the Exchange
Supply and Service Cooperative, amounted to approximately $3,-
400,000.00, which is about the same volume as handled during the
previous year. The total loans outstanding as of April 30, 1950
amount to approximately $1,125,000.00 and a substantial portion
of these loans will be paid in full by the close of the season. The
average net returns to the growers this season have been the highest
received for many years. It is, therefore, to be expected that there
will be considerably less demand for loans this coming Summer and
The excellent performance record of the company over this
33-year period has made it possible for the company to secure very
favorable interest rates from its banks. The company, therefore,
has maintained interest rates on a competitive basis with the gov-
ernment-sponsored Bank for Cooperatives and the Orlando Citrus
Production Credit Association. The banks look upon the company
as an excellent medium through which it can safely extend sub-
stantial credits to the citrus industry. They have always evidenced
a most favorable attitude toward the company and the Florida
Citrus Exchange and have worked closely with the Exchange and
Growers Loan officials in all matters pertaining to the welfare of
It will continue to be the policy of the company to make only
such loans as are sound and non-speculative and they must in all
respects meet all eligibility requirements of good banking. The
company is in an excellent financial condition and has ample re-
sources to finance all sound loan requirements of Exchange affili-
ates and their members.
CHANGEE SERVICE ANm SUPPLY COOPRATIVE
Exchange service and ,
supply cooperative sales increase
despite smaller shipments
GUY E. HOWERTON
APRIL 30, 1950, marked the end of the first fiscal year of the
Exchange Supply and Service Cooperative. Sales during that pe-
riod totaled $1,388,985.85, an increase of $194,905.51 over the
fiscal year ending April 30, 1949, when the Exchange Supply Com-
pany, the predecessor of the Exchange Supply and Service Coopera-
tive, had sales totaling $1,194,080.34.
During the last summer, we had good reason to believe that the
increase for the first year of the Exchange Supply and Service Coop-
erative would be much greater than the above figure as compared
with the last fiscal year of the old Exchange Supply Company.
However, when the hurricane hit the state last fall, leaving in its
wake the heavy loss of fruit in the lower Indian River district, as
well as in other sections of the state, we realized the necessity of
revising our estimates. The loss of fruit from the hurricane,
together with the inroads which the trend to frozen concentrate
has made in the movement of fresh citrus, has resulted in a very
sharp decline in shipments of citrus from Florida in fresh form
during the 1949-1950 shipping season.
Our ability to show an increase in sales despite the reduction of
fresh fruit shipments may be attributed to two things. First, and
foremost, is the fact that our members showed greater interest in
and gave better patronage to our organization. The second reason
is the fact that we took on additional lines which broadened our
field for possible sales. During the summer months we were able
to keep ourselves out of the red with sales of items such as paint,
packing house machinery repair parts, field boxes, nails, strapping,
etc. We intend to continue from time to time to add to the lines
which we handle to the end that we may be in position to supply
our members anything they need in any phase of their citrus oper-
E. G. Todd -.
I. J. Pemberton _
John L. Olson -----
W. C. Van Clief -
W. M. Moseley -
H. C. Allan -----
Jack N. Strong -
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
-- Vero Beach
-- Avon Park
X, c *,:A, N 4
f U* 444A