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John T. Lesley
Fred S. Johnston
H. S. Weber
Walter J. Page
Charles W. Metcalf
J. B. Prevatt
"One of the success secrets of our dynamic competitive
enterprise system is that although we Americans are great
individualists, we also are among the most skilled organizers
in history We believe both in independence and in
voluntary teamwork." -
Sinclair Weeks, Secry. of Commerce
The Florida Citrus Exchange, a federated agricultural coop-
erative demonstrates this principle of voluntary teamwork and
skilled organization. It was established in 1909 under a charter
granted on July 20 of that year by a special Act of the Florida
For the past 45 years, the Exchange has waged constant battle
to safeguard in the marketplace the financial interests of Florida
citrus growers. This guardianship was born of the chaos and
shambles which prevailed at the turn of the century when specula-
tors and commission men ruled'!the industry.
Today, more than ever, the, Exchange stands as a beacon of
leadership in guiding the destiny of the Florida citrus industry.
It has readily accepted as a sacried trust all the responsibilities which
Modified products and marketing conditions bring concomitant
problems. With ever increasing citrus supplies becoming available in
Florida each year, your Exchange has again been a dominant factor
in seeking new marketing outlets, stimulating greater consumer
demand, and encouraging wider cooperation within the industry.
Tampa sales department, General Sales Manager Fred S. Johnston standing.
The 1953-54 Florida citrus season may well be recorded as one
of the most "unusual" in history.
The Sales Department ended another successful year in
spite of many unconventional happenings, par-
ticularly with regard to Valencia oranges.
Wider distribution was achieved in 44
states and nine Canadian provinces. While
overall f.o.b. sales will approximate last
season's, Indian River sales gained sub-
S" stantially. These latter sales were up
S 33CT, exceeding the mark of two years
ago by 104%1c.
i Most Indian River f.o.b. gain was in
Sthe Far West and Western Canada.
Our strong gains in these areas
this year will help us retain our
position when Texas resumes
llndredl of Ionpg tlistnce
rulli are made daili.
Here, Charli.' Biush talk
to a cuflionier.
* -i2. -
Assistant General Sales
Manager Harry Gumprecht, Jr.
discusses the day's activities
with Fred S. Johnston.
Teletype operators (below)
receive and send messages to
district sales offices and
Peter Economos, Exchange Division
Manager, with local produce buyer,
checks arrival of Seald-Sweet fruit
at Chicago auction.
The new, colorful Seald-Sweet
polyethelene bag for oranges was
welcomed this season by
merchandisers of pre-packaged
volume shipping, notwithstanding their more favorable
This season, a Sales Advisory Committee, consisting of a
member and alternate from each of the four Exchange dis-
tricts, met weekly with the Sales Department to create better
understanding by that department of packing house and field
problems. Field and packing house men thereby also became
acquainted with changing selling conditions.
An auction desk in charge of Fred W. Davis was initiated
this season. Mr. Davis attempts to achieve uniform distribu-
tion of auction supplies and works with shippers outside the
Exchange to improve auction prices.
Increased domestic and export orders are now being
handled by three new salesmen, George Buckley, Charles S.
Bush, and Don Lins.
The Sales Department has worked closely with the Mer-
chandising Department and the dealer service men to create
new sales outlets and cement relations with old accounts.
The 1953-54 season, in review, was relatively good. Usual
price fluctuations occurred on early and midseason oranges;
the overall return, however was reasonably satisfactory.
Many growers and shippers would probably have rushed
the movement of Valencias before early and midseason
oranges were completely shipped. The Exchange was instru-
mental in an emergency session of the Federal Marketing
Agreement committee's being called about February 1st. This
action stalled shipments of immature Valencias, thereby sav-
ing considerable money for growers of all three varieties.
The Valencia market opened in the middle of February
at $2.50 f.o.b. This price prevailed until the first week of
April. Sudden increases raised this price steadily after the
government failed to increase the estimate for Valencias on
April 9th. It was a complete reversal from the industry
pessimism existing about February 1st. Shipments in June
and July should return $4 to $5 f.o.b. for the remaining
Also, possibly one million boxes of Florida Valencias will
be shipped to Europe this season.
Grapefruit has been in fair demand throughout the
United States and Canada. Prices have been generally lower,
even though Texas has been a very small factor in the
Public Relations and
Walter Page engineered the
Seald-Sireet ad and
for the past season.
merchandisers erected hun-
dreds of volume selling
displays to promote
Mg s*A Senld-Sweet".
V- irginia Baker of St.
Petersburg i visited
to publicize Seald-Sweet
brands. Here she is
Tommy Thomas of
1 .1 11t
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Since the publication of our last Annual Report,
the Public Relations and Advertising Department
has extended its services to include a very active
merchandising program with six dealer service
men in the field. The Florida Citrus Exchange
launched this new service last summer by having
the six men trained at the United Merchandising
Institute in Springfield. Mo. Their first important
contact with the trade was staged November 9 in
Burlington, Ia. with a Seald-Sweet orange and
grapefruit promotion for the Benner Tea Company.
During the intervening seven months our men have
been working throughout the entire eastern half
of the U. S. and Canada. Frequent promotions,
some of them of huge dimensions have been put on
I ;.; ,
f- .- *n
in nearly every state of that area. In addition to this they have been
ready for alert trouble-shooting whenever needed. Both of these functions
have been handled in conjunction with our sales department in Tampa.
Our men have covered almost 125,000 miles by plane, train and car in
servicing wholesalers, brokers, and retailers in 29 states and four Canadian
provinces. They averaged 43.3 calls on the trade per man per week. In
67 cities they staged large, special promotions. These together with the
smaller promotions averaged around 4 per week. Over 60 demonstrators
were hired for from one to three days to dispense samples and to explain
how to prepare the fruit. The average sales increase resulting from our
promotions is calculated at 157% per store. This specialized activity
can only lead in one direction continued increase in volume of sales.
We estimate that the frequency and the space used by pictures and
publicity received by the Exchange during the 1953-54 season has in-
creased about 50% over the previous year. This has been due mostly to
our Miss Seald-Sweet tour through Canada and the northeastern and
southern parts of the U. S. Television, radio and feature activities were
exploited. She appeared on TV in our leading market areas, received
keys to the city from innumerable mayors, and was the center of many
planned events. All this attracted consumers everywhere, and helped
sell the name of Seald-Sweet.
Another important agitator for Seald-Sweet and Indian River Flori-
gold is the extensive amount of colorful point-of-sales material sent out
to the trade. Over 300,000 pieces were distributed. Designs for new
material are now being worked out for the coming year and will include
pieces for oranges, grapefruit, limes and the new items recently added
to our line: avocados, mangoes and lychees.
Two advertising agencies have serviced our account during the past
year, a local Tampa agency handling the Seald-Sweet advertising and a
New York agency handling the Florigold. Newspapers, television and
radio have been used in concentrated areas where our brand fruits are
sold. Trade papers have been used throughout the buying season to keep
our brand names before the jobbers, wholesalers and retailers. The adver-
tising budget for this year was appreciably higher than in the previous
years. This increase together with the stepped-up publicity during the
year and our new merchandising program has reflected an increase in
consumer demand that will be cumulative as long as we keep our brand
names before the public.
H. S. Weber and
Paul Sarrett annually
process hundreds of
freight'claims for the benefit
of Seald-Sweet growers.
During the period from September 1, 1953 through April 30, 1954 the
traffic department filed 464 claims amounting to slightly over $32,000.
During the same period claims totaling almost $24,000 were collected.
However, due to the necessity for expediting shipments during these
heavy months, the preponderance of claim-filing must be deferred to
the less active summer months. We are continually checking the current
season shipments for delays in transit which result in losses because of
market decline, as well as for shortages and overcharges.
The rules and regulations of the Interstate Commerce Commission
which controls rates, minimum weights and other specifications of
shipping, are continually shifting slightly to equalize benefits to all
types of carriers. These changes bring on most of our problems. This
season's light vegetable crop has affected the car and truck supply
considerably, releasing many of both for citrus fruit movement that
otherwise would be transporting vegetables. Such irregularities in the
flow of produce to be moved create an unstable and chaotic condition
with demoralizing effects on the rate situation, bringing with it other
This season rail lines handled approximately only 46%o of the Florida
citrus crop. More and more of the balance is now being hauled by
truck because of the flexible service offered by the refrigerated motor
carriers. This form of transportation is particularly advantageous in
serving our customers in smaller communities, where adequate storage
space is limited and where it is ie small, shipments
to different points. We will sft for the first
time this season in traypip to nn chee nuts, a
highly perishable t : '
' a .........B-is we
The Legal Department of the Florida Citrus Ex-
change experienced its heaviest schedule ever during
the 1953-54 citrus fruit season with the General Counsel
handling all legal matters for the Exchange and its
affiliated organizations-Growers Loan and Guaranty
Company, Exchange Supply and Service Cooperative,
Florida Citrus Products Exchange-and, as well, dis-
charging the duties incident to the office of secretary
of all of these organizations.
Much time has been spent amending charters and
by-laws of affiliated associations of the Exchange, and
advising on tax matters. This Department also handled
a large number of inquiries relating to trademark
Your General Counsel continues to serve on the
Legal and Tax Committee of the National Council of
Farmer Cooperatives and attended meetings of this
group held in Washington and other places during the
In December, 1953, the citrus industry learned that
a petition had been filed by the Florida Council of
Citrus Workers Union, American Federation of Labor,
for revocation of the seasonal industry determinations
under section 7(b) (3) of the Fair Labor Standards
Act which apply to the handling, packing, storing, pre-
paring in their raw or natural state, first processing
or canning of perishable or seasonal fresh fruits or
vegetables (5F. R. 3167) and to the dehydration of
citrus pulp and waste in the States of Florida and
Texas (8F. R. 3811), to the extent that they apply to
citrus fruit operations in Florida. This department
met several times with other
citrus organizations and
participated in hearings
before the Wage and
Hour Division. A
ruling is expected shortly.
General Counsel Counts Johnson
handles legal matters for the
and accounting matters are
supervised by Treasurer-Comptroller
U During the 12-month period ending April 30, 1954, the Growers
Loan and Guaranty Company advanced approximately three millions of
dollars in production loans to growers and operating loans to associations.
In our 37 years of financial service to the Florida Citrus Exchange
and its affiliated shipper and grower members, we have loaned the tre-
mendous total of $73,835,000.00. Loans outstanding as of April 30 were
$1,397,113.32 as compared with $1,260,530.41 for the previous year.
The citrus season now approaching a close has proved to be another
"unusual" one, price fluctuations having been most extreme.
It is the policy of this Company to accept only such loans as are
sound, and meet all eligibility requirements of commercial banks. These
banks recognize this record, having from time to time extended sub-
stantial lines of credit. Because of the close relationship between this
Company and members of the Florida Citrus Exchange, many avail
themselves of the financial service.
This Company, today more than ever, is able to serve the entire
Exchange membership on a liberal but sound basis.
The Canning Division is making every effort possible to keep Seald-
Sweet in as many markets as possible with 90 per cent of the sales being
made under the Seald-Sweet label.
This Division issued its first price bulletin of the current season on
October 26, offering 46-ounce orange juice at $2.50 per dozen and grape-
fruit juice at $1.90. The increase in the government estimate of a million
more mid-season oranges on December 10 did not, affect the general price
structure because of a shortage of cans due to a labor strike against can
manufacturers. However, after the February 10 government estimate
increasing the State's orange estimate by six million boxes, the prices
dropped to $2.25 per dozen for 46-ounce orange juice and $1.75 for
Grapefruit juice declined again in March to $1.60 per dozen 46-ounce
cans. The low delivered-in price for cannery fruit of $1.10 per box for
oranges and 15 cents per box for grapefruit in March, increasing to
$1.75 per box for oranges and 35 cents for grapefruit early in April,
brought an increase in the f. o. b. prices of orange juice to $2.50 and
grapefruit juice to $1.75. Present prices for Seald-Sweet juices are
firm at $3 for orange juice and $1.90 for grapefruit.
Sale of Seald-Sweet single
strength juices and citrus sections come
under the able handling of
.* Seald-Sweet frozen concentrate, newest and fastest grow-
ing member of the big Seald-Sweet family, was recognized
nationally and distributed widely in 42 states and four
Canadian provinces this season.
More than 1,270,000 boxes of choice Florida oranges
will be sold this year in the familiar blue and orange cans
bearing the well-known trademark, Seald-Sweet. Numbered
among our customers are some of the largest and best fro-
zen food distributors in both the United States and Canada
as well as numerous chain and super market organizations
of the biggest, most successful types.
Seald-Sweet is now packed in six, twelve, and thirty-two
j ounce cans. Greatly increased sales of the twelve-ounce or
family size indicates a trend toward higher daily consump-
: tion of orange juice on the part of the buying public.
It is gratifying to note that Seald-Sweet sales are show-
Seald-Sweet concentrate ing substantial increases in established distribution areas.
sales boom to new heights The brand is receiving more active advertising support
under the direction of
Chas. W. Metcalf. each month.
There is much evidence available that Seald-Sweet could
be the largest selling brand of non-advertised frozen orange
concentrates on the market if the program is supported by
an adequate supply of product. The tangible value of the
Seald-Sweet brand is substantial and increasing each day.
The overall Seald-Sweet program on concentrate and
fresh fruit is adding greatly to the prestige of the Florida
In Ibundigg out five years of operation, the Exchange Supply and
S Service Cd6vperatie on April 30, 1954, completed its greatest season
with volume sales 4mouijting to $2.493,796.85. This is compared to a
sales figureiof $2,69,jg last year. an increase of $324,180.42
lpcided'y heavTeri aB Ints of citrus fruits this year probably
accoAl'for- much of this increase. However, regular solicitation of
busi A '.is strengthened our position percentagewise.
There is an increasing interest in the use of corrugated cartons
S -in the shipment of fresh fruit. The Exchange Supply and Service
Cooperative has been aware of this trend and is in excellent position
to furnish the requirements of members. It is recognized that there
is still considerable work to be done in perfecting the corrugated box,
as is usually the case in any new container.
Experimentation with multiple types of corrugated boxes under
varying conditions of packing, storage, and transportation has
elicited differences of opinion. It appears that a large portion of
Florida citrus will mo\e to markets in corrugated containers. We
expect to continue to aid in the development of these containers.
We are in position to furnish corrugated cartons for canned citrus,
both single strength and frozen. Our business in these items has
increased materially during the past year.
Demand for standard nailed boxes was abnormally heavy this year.
This is attributed to heavier shipments of fruit by our members who
regularly use this type package, plus the unexpected demand for
export shipments by members who ordinarily never use nailed boxes.
Last Summer we arranged for all of the standard box machinery
in the Nocatee Crate Company plant to be installed in the plants of
our standard box supplier, thus greatly increasing his capacity.
With the end of the 1953-54 shipping season in sight and with
the resultant gradual slackening off in sales of packaging materials
our plans are being made now for an active solicitation program on
the items of paints, field boxes, nails, strapping, etc., upon
which we depend to carry us through the summer months. M
Supplies and serrirces are
Iurnished Exrhanpe prkirn houiei through
the organinl:ion nmnagned b\
i The Seald-Sweet eterchandising stal is shoinn
Switch E.'hange official.. First rno left to right,
-- Jannies Hancock. 7 on Loonen. Larry Hart. John
Hedwrall; Second row. I alter Page. Director o] Public
Relations and Merchandi.ung; Fred Johnston.
General Sule4 Manager; Dick Eyeltone. Pete Honnten,
John T. l.e.,ley, General Manager; and Hurold If orden,
District Manager, If inter Haven.
The outlook for Florida citrus is one of increasingly greater production. In
a study issued by the Continental Can Company in April, 1953 it is estimated that
the total citrus production in the State of Florida by the 1956-57 season (barring
a crop disaster) should approximate 150,000,000 boxes of fruit-104,000,000 oranges
and the remaining 46,000,000 boxes made up of grapefruit and tangerines. They
also estimate that the orange usage will be as follows: Fresh, 26,000,000 boxes;
Single strength, 12,000,000 boxes; Frozen concentrate, 63,000,000 boxes; Other Pro-
cessed use, 2,500,000 boxes; Home consumption, 500,000 boxes.
These figures indicate the increased production will have to be utilized by
frozen concentrate but they also point up the fact that it is absolutely necessary
to maintain the single strength and fresh fruit markets. It is for this reason that
the Exchange has put so much effort in developing and strengthening its sales and
merchandising program. We are convinced that properly handled our fresh fruit
market will not only continue to use a large quantity of fruit but will also serve as a
good indicator for the proper pricing of our fruit to the processors.
The immediate trouble spot in our citrus picture is grapefruit. The present
U. S. D. A. estimate indicates we have produced this year 39,000,000 boxes. In
spite of increasing our advertising expenditure to a total of 6 per box we were
unable to obtain satisfactory prices.
Some of our experienced grove people are convinced that our crop of grape-
fruit will not be as large next year as it was this year. However, Texas reports
that they have had excellent rains and their crop estimates for next season run
from 4,000,000 to 8,000,000 boxes of grapefruit. The estimated production for this
season was 1,200,000 boxes. It is very obvious from these figures that our compe-
tition from Texas will increase rapidly. Texas fruit has good consumer acceptance.
With greater competition facing us it is vital that we get our house in order
by doing those things we all know we should do.
1. We should revise our minimum standards for maturity and quality on both
fresh and canned grapefruit to assure the consumer a better tasting product.
2. We should push vigorously for both state and federal regulations that will
permit control of volume and diversion of surpluses.
3. The industry's advertising and merchandising program should be strengthened
and supplemented by more brand advertising.
The above chart shows relative amounts of Certified
Fresh Citrus Fruit shipped by individual shippers
during 1952-53. The balance of 66Y2%/ was shipped
by the remaining 214 shippers, each handling less
than 2% of the total. (Figures for above chart from
Florida Dept. of Agriculture).
_ I I _I_ I_
CANADIAN PACIFIC MT. and S.W. N. CENTRAL
SOUTH N. EAST.
NORTHEAST: Me., Vt., N. H., Mass., R. I., Conn.,
N. Y., N. J., Pa., Del., Md.
NORTH CENTRAL: N. Dak., S. Dak., Nebr., Kans.,
Minn., la., Mo., Wis., III., Mich., Ind., Ohio.
SOUTH: Ark., La., Ky., Tenn., Miss., Ala., Ga.,
W. Va., Va., N. C., S. C., Fla.
MT. & SO. WEST: Mont., Ida., Nev., Wyo., Utah,
Colo., Ariz., N. Mex., Okla., Texas.
PACIFIC: Wash., Ore., Calif.
Z !, ". .. .
W. H. CLARK FRUIT CO., Jacksonville
LAKE REGION PACKING ASN.. Toavar
MT. DORA GROWERS COOP., Mt. Dora
McLEDO FRUIT COMPANY, Citra
ORLANDO C. a1 A., Orlando
PLYMOUTH C. & A., Plymouth
THEODORE STRAWN, INC, OeLaon Springs
UMATIULA C. G. A. Umatilla
WET ORANGE C. A., Tildanville
WINTmR GARDEN C. G. A., Winter Gordon
ALTUAS-. PIELDO CI S COOP.,
AVON PARK C. G A., Avon Park : 0 0
1iMDT E C. G. A, DuIdee nOI. .
FLINENCE C. 0. A., Florence Villa
oruNDE C.. A, OrlAnde
LAKE BYRD CITRUS PACKING CO.,
RING PACKING CO., INC.. Sebring
WINTER HAVEN C. A., Winter Hawven
ROOKSVILLE C. 6. A, Brookville
CLEARWATER GROWERS ASSN., Ciaiwater
DOMINO CITRUS ANSN.. Sram ata
ImUERS C. G. A., B ofes 0
INGRAM FRUIT COMPANY, INC.. Tampa 0
OWAMITA C. a A.. Alva
PALM HARBOR C. A6 A., Palm Harbor
FLORIDA TROPICAL FRUIT
GROWERS ANSN., Goulds
FLAMINGO GROVS, INC., Ft. Lauderdale
SILVER PALM F. G. A.. Red and
COCOA-MERRITT ISLAND CITRUS AUN,
FT. PIERCE GROWERS ASSK Ft. Piere
GRAVES BROS. CO, Wabosso
INDIAN RI a ASOCIATS INC. T
INDIAN RIVER GROWERS SERVICE,
MIMS C.A A.. Mims
OAK HILL C. A., Oak Hill a
OSLR C. G. A.. Ver Beadch
PALM BEACH-LOXAHATCHEI CO.,
West Palm Beach
L P. PORCHES ESTATE, Cocoa
TUXEDO FRUIT CO., INC. Fort Pierce
VIO-INDIAN RIVER PRODUCERS ANN,
INDIAN RIVER EXCHANGE PACKERS INC.
Vero Beach V c
DMUIORIO FRUIT CORP., Ft Pierce
HAROLD WORDEN, Distict Manager,
W. a STRICKLAND, Dstrict Manger,
;.: :5.". ""-...
Omngee N apes 0 Tagmagsso Lh E MAito
Av kcedes Lychess
S .Orange Juice 0 Grapefruit Juice Blended Juice Clhln StleruM
l.:::.:...;, Frozen Orange Concentrate Frozen Grapefruit Coe nu
Frozen Tongerine Concentrate S Frozen Limeade Concentrate Froem Lmernaid Cm Sidllb
IA': ..: .. .