Florida Citrus Exchange
Here's how Seald-Sweet is sold in Penn Fruit Stores.
f o 1956-5
THE SEALD-SWEET STORY
.. Seald-Sweet is the master brand of the
Florida Citrus Exchange. These pages describe
the part this organization is taking to market
and distribute citrus supplies from the sunny
groves of Florida to the fresh fruit markets of
the United States, Canada and foreign countries.
A MESSAGE FROM THE PRESIDENT
T HIS 1956-57 season began auspiciously for the fresh fruit
shippers as well as for the growers. Efforts of the Growers
Administrative and Shippers Advisory Committees to keep a high
quality level on first shipments of grapefruit and oranges received
state-wide support from the industry. This very attitude indi-
cated great progress over the past years.
The tightest early season grade and size regulations in the
history of the Florida citrus industry's Federal Marketing Agree-
ment, were voted by the grower and shipper committees. An
awareness of the marketing importance of high quality fruit
has continued throughout the season more or less. A committee
from within the industry was appointed to study the overall
problem and to make recommendations.
The Citrus Commission and the State and Federal Citrus
Experiment Stations have been urged to initiate and expand
research into the causes of poor external color, skin break-down
and other grade-lowering factors. Most of this, of course, will
be basic research that will require time, but at least we have
made a beginning. President
All fruits taste better when they look their best. Even though
the consumer does not eat the protective peel of citrus, he judges
the interior quality by the external appearance. He buys more
readily when it attracts his eye. The glowing colors and appear-
ance of fruit make more sales-increase movement and volume.
In the photo below, Secretary of
First, comes the state-wide realization of this fact; second, Agriculture and Mrs. Ezra Taft Benson
the efforts of the industry to do something about it. We believe look over the prize fruit exhibited at
the Florida citrus industry is now headed in the right direction. the Florida Citrus Exposition in Feb-
ruary. With them are Senator Holland
(center) and Governor Collins (right).
A winning box of Marsh seedless
grapefruit entered by Dundee Citrus
Growers Association, a Seald-Sweet
house, is in the display shown here.
THE MANAGER'S REPORT -- 1956-57
WV E ARE pleased to present this 48th Annual Report
to the growers. We have tried to give you in a small
way, the "Seald-Sweet Story." Many growers do not
realize the complexity of the problem nor the amount of
work necessary to sell and distribute our fruit to our
Not the least of our problems is this state's 300 or
better competing sales organizations. This disorganized
solicitation of business results not only, many times, in
f j price cuts but the duplication of expenses- such as,
S^. communications, personnel, et cetera resulting in stag-
gering increases in selling costs.
This, of course, is the theory behind and the only
JOHN T. LESLEY justification for cooperative selling efforts -to get the
General Manager product to the consumers at its full market price and at
the lowest possible cost.
V l IiS
Charts prepared by the USDA Agricultural Marketing Service.
WHERE OUR SUPPLIES COME FROM
W. H. CLARK FRUIT CO., Jacksonville
LAKE REGION PACKING ASSN., Tavares
MT. DORA GROWERS COOP., Mt. Dora
McLEOD FRUIT COMPANY, Citra
ORLANDO C.G.A., Orlando 0
PLYMOUTH C.G.A., Plymouth
THEODORE STRAWN, INC., DeLeon Springs
UMATILLA C.G.A., Umatilla
WEST ORANGE C.G.A., Tildenville
WINTER GARDEN C.G.A., Winter Garden ,
ALCOMA PACKING CO., INC., Lake Wales .
LAKE GARFIELD CITRUS COOP., Lake
DUNDEE C.G.A., Dundee 0.
FLORENCE C.G.A., Florence Villa 00
HUNT BROS. COOPERATIVE, Lake Wales 0
WINTER HAVEN C.G.A., Winter Haven
BROOKSVILLE C.G.A., Brooksville
CLEARWATER GROWERS ASSN., Clearwater
ELFERS C.G.A., Elfers
INGRAM FRUIT COMPANY, Inc., Tampa
PALM HARBOR C.G.A., Palm Harbor
FLAMINGO GROVES, INC., Ft. Lauderdale
COCOA-MERRITT ISLAND CITRUS ASSN.,
FT. PIERCE GROWERS ASSN., Ft. Pierce
GRAVES BROS. CO., Wabasso
INDIAN RIVER ASSOCIATES, INC.,
INDIAN RIVER GROWERS SERVICE,
MIMS C.G.A., Mims
OAK HILL C.G.A., Oak Hill
OSLO C.G.A., Vero Beach
PALM BEACH-LOXAHATCHEE CO.,
West Palm Beach
E. P. PORCHER ESTATE, Cocoa
TUXEDO FRUIT CO., INC., Ft. Pierce
VERO-INDIAN RIVER PRODUCERS ASSN.,
INDIAN RIVER EXCHANGE PACKERS, INC.,
Harold Worden, District Manager,
W. G. Strickland, District Manager,
WHERE OUR SUPPLIES ARE SENT
,E 1, .
HOW OUR SUPPLIES ARE MOVED
#am GROVE to MARKET
When this photo was taken of our sales depart-
ment late in the selling year, things were rela-
tively quiet. At the height of the season it looks
like the floor of the New York Stock Exchange
on a high-volume day.
Here is the pulse of the Florida Citrus Ex-
change. Here a staff of 32 trained people coordi-
nate and synchronize the stream of orders for
fresh fruit which are received by fast communi-
cation from every part of the United States and
from Canada. The perishable nature of our sup-
plies demands immediate action. In minutes after
an order is received by telephone or teletype
from a distant market, its complete handling is
processed by the team shown in the picture above.
Each step in the process has been developed
from our 48 years of experience in selling citrus.
The operation is smooth-running and fast, and
few errors are made. An onlooker for the first
time would hardly be aware of the scope of the
activity going on before him.
The Florida Citrus Exchange telephone account is the
largest commercial account in Florida with the exception of
the larger hotels. Each season our account includes long
distance calls from coast to coast and all marketing centers
in between-both in the United States and Canada. During
the selling season frequent trans-Atlantic calls are made to
Local and special long distance calls, in addition to calls
over our direct wires to our packing houses and sub-
exchanges, are handled by this operator.
Each of the ten men in our sales department has his own
LD telephone connected directly with the Tampa central tele-
The telephone is supplemented by teletype service, as
shown in the picture above. Order handling is virtually
automatic. Work output keeps pace with incoming communi-
During the marketing season, the Exchange has its own
private Western Union office and operator. When our WU
office is closed the sales department uses our desk fax
machines which send our telegrams directly to Tampa WU
headquarters for relaying.
During the entire year the Exchange has leased wires to
the busiest cities in the North, including Montreal and
The time element is of supreme importance in the opera-
tion of our business. It demands the best facilities available.
Not only are detail and precision required to
handle orders in the sales department and to get
them rolling, but the same care is continued in
the accounting department. Here the large, medi-
um and small orders of ever-varying specifications
are transformed into dollars and cents, and placed
on the record. In the photo above you see the
staff that handles this part' of our work.
Each season this department handles billing in
excess of 25 million dollars. Its performance
shows that all returns are remitted to our member-
houses within 24 hours after being received here
at Tampa headquarters.
A policy of the Exchange not generally known
Simultaneously, day by day, the statistical de-
partment (shown above) breaks down the orders
for the volume-record. Here totals are carried
forward on kinds of fruit sold, sources, destina-
tion, kinds of transportation and movement.
The USDA reports daily to this department on
Florida State rail and truck shipments also
California, Texas and Arizona rail and truck
In turn, the Exchange statistical department
makes daily, weekly and annual reports to the
USDA Agricultural Matketing Service. These
periodic reports cover the following:
1-A compilation of auction sales data is re-
ported daily to USDA after receiving our
reports by teletype from the nine North-
is the guarantee to all member-shippers. In all
its history, no grower affiliated with this organi-
zation has lost a penny through a bad account.
In this connection the department is justly proud
of its collecting record (while at the same time
there has been no restriction on sales).
"In the two-year period ended August 31,
1956, the gross sales totaled $51,566,399.00.
During this entire two-year period there were no
accounts that had to be charged off as uncollect-
ible. This achievement would only result from
an excellent credit and collection policy." -
From the Exchange's annual audit by Certified Public
ern auction terminals. These are the figures
released by the USDA to the wire services
2-Weekly and "season-to-date" reports are
made up and reported to USDA on move-
ment of auction cars and averages.
3-Weekly and "season-to-date" reports are
also given to the USDA on mixed car
analysis of Florida State rail shipments and
average car loads.
4-At the season's close an annual report is
compiled giving auction sales data by cities
(cars and averages) and totals by weeks
and months (cars and averages). A copy
of this report is prepared for the USDA.
-FRED S. JOHNSTON
The Florida Citrus Exchange has enjoyed another
successful marketing year up to May 10 (as this is
Throughout the months of November and Decem-
ber, until the middle of January, we had the longest
sustained and stabilized market on fresh oranges
that we have had in many years. During this period
the f.o.b. market on interior oranges in Bruce boxes
remained steady at $3.25, less .25 on 216s and 250s.
Then we hit the traditional after-Christmas holi-
day slump and the f.o.b. market dropped 254 per
box. The market soon eased off another quarter,
but on Monday, January 21, we raised the price of
oranges from $2.75 on 176s and larger, and $3.00
on smaller sizes, to $3.00 across the board. The fol-
lowing Monday, January 28, we raised the price from
$3.00 to $3.25. The next Monday, February 4, we
raised the price from $3.25 to $3.50 on both mid-
seasons and Valencias, which were just starting.
The market fluctuated a little about this time and
prices ranged from $3.50 to $3.75 on 216s and smaller
and from $3.25 to $3.50 on 176s and larger.
Around the middle of March the general orange
market settled down to $3.25 for 150s and 176s; and
$3.50 for 216s and smaller.
During most of April the Valencia market ranged
mostly at $3.00 on 150s and 176s; $3.25 on 216s; and
$3.50 on 250s and 288s.
According to the estimate of May 4, we had about
4 /2 million more boxes of oranges than we had at
that time last year. However, the f.o.b. prices on
interior oranges were only 5 per box less for the
weeks ending March 30, April 6, and April 13, 25o
lower for the week ending April 20, 35c lower for
the week ending April 27, and 80c per box lower for
the week ending May 4, compared with the same
weeks last year.
During these same six weeks there were 1,099
fewer cars of oranges shipped this year than last
year, and this year's auction price for these six
weeks was 100 per box lower than for the same
period last year.
With so many more oranges this year than last
year, it has been rather remarkable that the fresh
fruit market has held up so well, especially in view
of the much lower cannery market that existed last
At this writing it looks very much like the balance
of the Valencia market may be as much as $1.00,
or more, per box lower than they were from May 1
to the end of the season last year. However, the
over-all prices of all oranges should not be too much
lower than the over-all prices for all oranges last
With a lighter grapefruit crop this season than
last, prices have been about 50 to 60 per box higher
this year. The auction average on grapefruit,
through May 4, this year, was 58( per box higher
than on the same date last year. The f.o.b. prices
have followed a similar trend.
The auction averages on May 4 on grapefruit for
the past five years for all varieties and areas has
been as follows:
Source: GAC Statistical Bulletin S31
This year's Florida citrus crop has held up reason-
ably well in quality and condition, considering the
various severe weather conditions, such as: extreme
drought, extreme cold, extreme heat, and lately
extremely heavy rains, all of which have hit this
season's crop at various times.
TANGERINES & TEMPLES
We have enjoyed a good tangerine season with
satisfactory prices comparable with last season.
This year's crop of tempe oranges was not as good
as last year's crop, and while prices were somewhat
lower, temple growers fared very well.
All interior houses that prefer f.o.b. business, have
continued these sales in the mid- to high 90s per-
centagewise. (Continued next page)
-H. N. BARON
The third season of your Export Division's activi-
ties has passed, and we are proud to report that this
was another successful year.
We have continued, as in previous seasons, to in-
crease our fresh fruit shipments. We have also in-
creased our exports of single strength and concen-
trated juices. We have obtained a substantial share
of the total citrus exports from Florida.
Your Export Division was instrumental in having
established special Export Inland Railway Freight
charges and reduced Transatlantic Ocean Freight
rates. This, together with our main aim of shipping
only quality produce and products, and our endeavor
to secure sound arrivals, were fundamental in in-
Notwithstanding that the total state movement of
fresh citrus for the 1956-57 season is approximately
10 per cent less than for the 1955-56 season, up to
May 10, 1957 the railroads had handled only 38.6
per cent compared to 61.4 per cent via truck as
opposed to 1955-56 season movement of 42.1 per cent
via rail and 57.9 per cent via truck. While much of
the increased truck movement is attributable to
change in distribution and buying habits of the
trade, greater flexibility of truck service and low
minimum weight, a substantial portion is due to the
steady rise in rail rates and failure of the railroads
to take realistic remedial measures to recapture
lost perishable traffic.
(Continued from previous page)
Our Indian River houses did not take on f.o.b.
business until six years ago. Since then they have
increased their f.o.b. sales on the following per-
To May 1
creasing our activities. We now have a list of satis-
fied customers throughout the world wherever U. S.
produce is open for trade.
It has always been, and will continue to be this
division's aim to secure top prices for our quality
fruit and products.
Prior to the beginning of the current season, your
export manager visited all continental countries of
western Europe, Scandinavia and the British Isles.
We have had good relations with all to whom we
have sold our produce and products. We are con-
tinuing to find new markets for sales. With the full
support of our member-houses, we can expect in-
creases in volume in the coming years.
Effective December 28, 1956, rail rates were in-
creased 7 per cent within Eastern territory, and 5
per cent within Western territory, and 5 per cent
interterritorially between Eastern, Western and
Southern territories, subject to a maximum of 7
cents per 100 pounds on fresh fruits and vegetables,
canned goods, and frozen fruits, vegetables and
juices. Within Southern territory the increase was
made effective February 23, 1957.
Truck supply has been adequate this season, with
the exception of just prior to Thanksgiving and be-
ginning about April 1, when the vegetable, potato
and watermelon movement caused a critical short-
(Continued next page)
By the end of this season the percentage gain will
undoubtedly rise over 40%. The splendid coopera-
tion of our Indian River houses has resulted in these
The sales department has continued to function
smoothly, cooperatively and efficiently, and we have
maintained our usual over-all high percentage of
age. With diligence and tenacity, however, our
traffic department was able to move the shipments
without undue delay during those short periods.
The Seaboard Air Line Railroad and Florida East
Coast Railway established expedited service on
Florida citrus shipments to the principal Eastern
and Mid-Western markets at the beginning of the
1956-57 season, joining the Atlantic Coast Line Rail-
road, which established this service effective
October, 31, 1955.
The Traffic Department is a full time year 'round
operation. During the shipping season it is active
in booking trucks, handling export shipments,
checking rates and rail schedules and handling the
many details incident thereto, while in the summer
claims are filed against rail carriers for market de-
cline due to late arrivals, overcharges, loss and
damage, et cetera.
The 1956-57 citrus season was a routine but never-
theless busy one for the Legal Department of the
Florida Citrus Exchange with its General Counsel
handling all legal matters for the Exchange and
affiliated organizations-Growers Loan and Guar-
anty Company, Exchange Supply and Service Co-
operative, Seald-Sweet Sales, Inc., and Seald-Sweet
Packers, Inc., and, as well, handling the multiple
administrative duties incident to the office of Sec-
retary of all these organizations.
This department continues to handle all trade
mark matters for the Exchange and its affiliated
Your Counsel serves on the Legal and Tax Con-
mittee of the National Council of Farmer Coopera-
tives and is Chairman of the Legal and Tax Com-
mittee of the Florida Council of Farmer Coopera-
tives, and keeps abreast of and informs all Exchange
affiliates with respect to the latest developments in
trade and tax laws and regulations affecting the
This department has worked closely with others
in the Florida citrus industry in the preparation
and submission to the 1957 Florida Legislature of
some fourteen important' changes in the Florida
Citrus Code which had the endorsement of sub-
stantially all industry groups.
GROWERS LOAN & GUARANTY COMPANY
The Growers Loan and Guaranty Company on
April 30, 1957 completed its fortieth year of con-
tinuous service to the Exchange membership. Dur-
ing this period loans approximating $82,800,000 have
This company continues to be in excellent finan-
cial condition, thereby making it possible to con-
tinue the same rates of interest that were in effect
a year ago even though most financial institutions
have in most instances raised their rates. This is
another of the many services the shippers and
grower members of the Florida Citrus Exchange
have found advantageous to use.
For the fiscal year ended April 30, 1957 the
Growers Loan and Guaranty Company advanced
approximately $2,800,000 to shippers and growers
of the Florida Citrus Exchange for operating and
EXCHANGE SUPPLY & SERVICE COOPERATIVE
Our sales for the fiscal year ending April 30, 1957
were $2,188,898.88 as compared with $2,568,306.65 for
year ending April 30, 1956. This shows a reduction
in total dollar sales of $379,407.77.
This decrease is due in part to the fact that the
movement of citrus fruit in fresh form has been
much lighter this season than last. In addition to
being victims of the general slump in fresh fruit
shipments, we had other reductions in dollar volume
(but not in unit volume) because of changing trends
in packaging practices. This was particularly true of
our Indian River customers who are using fewer
standard boxes and moving more fruit in corrugated
cartons and wirebound boxes. Also, there have been
two reductions in the price of the 1-3/5 bushel wire-
bound this year, all of which makes for a further
reduction in our sales total.
SEALD-SWEET PACKERS, INC.
The pilot operations on the bagging of citrus in
terminal markets were expanded somewhat this
season with four new markets added.
While substantially more than double the volume
of last year was obtained, there still are problems
to be overcome before the potential of this outlet
can be attained.
It was gratifying, however, to see the increased
movement in the markets started last season.
-E. H. WALES
SUMMARY AND OUTLOOK
T HIS SEASON, 1956-57, is rapidly drawing to a close. The independent
growers and cash buyers are locked in a desperate price battle over the
remaining Valencia crop. This is nothing new as this same battle has been
fought annually for the last four or five years. The growers have usually won
these struggles, but this year there are several strong factors that seem to
weigh heavily on the buyers side. First, is the large crop that was produced
and the increased yield obtained from this year's fruit. Second, even though
retail prices were substantially reduced from last season our sales increased
only 1%. Third, the heavy and well-timed rains broke a three-year drought
and brought about an apparently heavy crop set for next season.
When the market began to show a weakness due to these factors the cash
buyers immediately dropped the selling price of the finished concentrate from
$1.25 per dozen to $1.00 per dozen f.o.b. It was generally conceded that this
reduction was much more drastic than was necessary just to increase con-
centrate sales and that its main purpose was to effect the on-tree price for fruit.
This is borne out by the published statements that all processors are
limiting the quantity they will sell at this price. It is also interesting that
in the first week these prices were reflected in the markets, sales soared and
the week saw the highest movement on record.
The price on fruit was dropped from 29t and 30o per pound of solids to
22t. This is where it remains today. However, very few growers are selling
at these prices. How long they will hold out is problematical and how long
the cash buyer can hold off getting his pack is uncertain.
These events definitely point up the uncertain and vulnerable position of
the independent grower. In years of short supply he is in a good position to
sell to the highest bidder. But as supply more evenly balances with demand,
his position worsens and he becomes fair game.
These fights over the on-tree price for fruit are of only academic interest
to the cooperative grower who has an assured home for his fruit. These
growers are only interested in the selling price of the finished product. With
all concentrators limiting sales at these low prices there is every reason to
believe that prices will soon go up. When they do, the co-op growers' fruit
The grower who has protected his position by having an assured home
for his fruit-both cannery and fresh-is in a good position to face the increased
production that, baring disaster, the future will bring.
It is our belief that the grower-owned cooperatives, both cannery and fresh,
are facing a period of their largest growth.
OFFICERS, DEPARTMENT HEADS, DIRECTORS
FLORIDA CITRUS EXCHANGE
President and Chairman
of the Board
First Vice President
Second Vice President
Third Vice President
Fourth Vice President
Assistant to the President
Phil C. Peters
John L. Olson
C. G. Wilhoit
F. W. Moody
G. B. Hurlburt
E. F. Gudgen
General Sales Manager
Export Sales Manager
John T. Lesley
Fred S. Johnston
H. N. Baron
Paul C. Sarrett
SUB-EXCHANGES AND DIRECTORS
Alcoma Association, Inc.
W. H. Clark Fruit Co.
Clearwater Growers Assn.
Fort Pierce Growers Assn.
Graves Bros. Co.
Hunt Bros. Cooperative
Indian River Citrus
Lake County Citrus Sub-
Lake Region Citrus Sub-
Lake Region Packing Assn.
North Indian River
North Pinellas Citrus
Orange County Citrus
Pinellas Citrus Sub-
Polk County Citrus Sub-
Winter Haven C.G.A.
John C. Updike
I. J. Pemberton
A. V. Saurman
0. J. Harvey
R. K. Cooper
H. H. Willis
C. G. Wilhoit
D. A. Hunt
A. N. "Jack" Strong
G. B. Hurlburt
John L. Olson
J. B. Prevatt
John C. Flake
Alfred A. McKethan
Phil C. Peters
F. W. Moody
Armer C. Johnson
J. P. Ellis
E. S. Horton