Front Cover
 Back Cover

Title: Annual report of the Florida Citrus Exchange.
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00075941/00032
 Material Information
Title: Annual report of the Florida Citrus Exchange.
Physical Description: Serial
Creator: Florida Citrus Exchange
Publisher: The Exchange,
Publication Date: 1960-1961
 Record Information
Bibliographic ID: UF00075941
Volume ID: VID00032
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: ajg6778 - LTUF
46798761 - OCLC
001753794 - AlephBibNum

Table of Contents
    Front Cover
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
    Back Cover
        Page 20
Full Text


general manager's... ANNUAL REPORT 1960-1961



1960-61 SEASON

President and Chairman of the Board
Phil C. Peters, Winter Garden
First Vice President
C. G. Wilhoit, Vero Beach
Second Vice President
Ford W. Moody, Palm Harbor
Third Vice President
G. B. Hurlburt, Mount Dora
Fourth Vice President
Joe E. Keefe, Dundee
General Manager
John T. Lesley, Tampa
James Samson, Tampa
General Counsel and Secretary
Counts Johnson, Tampa
Assistant Secretaries
E. F. Gudgen, Tampa
Luke C. Johnson, Tampa

E. S. Beeland, Clearwater
Robert K. Cooper, Florence Villa
J. P. Ellis, Bartow
John C. Flake, Mims
O. J. Harvey, Tampa
E. S. Horton, Winter Haven
D. A. Hunt, Lake Wales
G. B. Hurlburt, Mount Dora
Joe E. Keefe, Dundee
Armer C. Johnson, Mount Dora
Ford W. Moody, Palm Harbor
Alfred A. McKethan, Brooksville
1. J. Pemberton, Jacksonville
Phil C. Peters, Winter Garden
Jack A. N. Strong, Vero Beach
C. G. Wilhoit, Vero Beach
John C. Updike, Lake Wales
H. H. Willis, Sr., Fort Pierce

John T. Lesley
General Manager
Don M. Lins
General Sales Manager
James Samson
Counts Johnson
General Counsel
Luke C. Johnson
Asst. Gen. Counsel
E. F. Gudgen
Paul C. Sarrett
Traffic Manager
Howard N. Baron
Manager, International Division
James T. Hopkins
Industrial Relations Director

general manager's... ANNUAL REPORT


The 1960-61 citrus season, in spite of a hurricane, floods, droughts, late maturity, and a shorter
than normal marketing season, has been a rather outstanding year for the Florida Citrus Ex-
change. We are moderately pleased with the overall aspects of the season.
Our total volume of shipments will be slightly less than last season. Total grapefruit volume
will exceed last season substantially. Tangerine volume has increased by 75 percent over last sea-
son, while orange and Temple volume has decreased sharply due to smaller crops and the result-
ing high competitive cannery situation.
Our methods of selling have undergone no radical change during the season. However, direct
sales have increased considerably while sales through brokers have declined. Sales through our
salaried offices have increased during the season.
Total volume of fresh fruit movement through the Exchange has been very favorable when com-
pared with the state volume figures. Our percentage of f.o.b. sales in relation to the state's
total indicates a further gain in this phase, with continued reduction in auction sales.

Here are some of the highlights of the season by varieties

ORANGES: Early and mid-season oranges brought the highest prices on record. Through
the Christmas holiday season we experienced a definite shortage of oranges, and sales
could have been increased considerably had supplies been available. Valencia prices
started at high levels, dropped briefly, and then firmed at very satisfactory levels.
TEMPLES, TANGELOS, AND MURCOTTS: There were record high prices on these vari-
eties with excellent consumer reception. The future looks bright.
TANGERINES: Small sizes and late maturity were troublesome. More than two thirds of
the crop had to be marketed during January and February. Despite these obstacles,
returns were above expectations and the major portion of the trade was pleased with
GRAPEFRUIT: This has been our "problem child" throughout the season. Late maturity
forced grapefruit volume down by as much as thirty percent by the first of January.
Small sizes and high acidity have been continuing problems from the beginning to the
end of the season.

- SALES (continued) .

Texas, with its 75 percent increase in production, has been a formidable competitor this season.
-Our late maturity has been of definite advantage to the Texas industry. However, with a return
M to normal maturity we need not expect a repeat of this year's situation when supplies were too
light early in the season and too heavy during the balance of the marketing period.

The Sales Department has worked diligently to maintain orange volume. With higher prices
throughout the season, we have encountered some continuing consumer resistance, but were
nonetheless successful in marketing all supplies available for the fresh fruit market.

Grapefruit sales were difficult, and without a constant promotional and sales effort in the "hard
sell" manner, we might well have had even lower levels of grapefruit prices.

Marketing of fresh citrus in the future, in our opinion, will necessitate considerably more ad-
vance planning than in the past. More and more it becomes apparent that citrus programs must
be planned often some three to four weeks in advance. Merchandising devices and advertise-
ments must be created, presented, and "sold" to the retailer or chain store merchandiser.

Successful sales programs are no longer readily available to us on the basis of token and in-
termittent promotions here and there. Yet volume movement opportunity is greater than ever
before if we are capable of securing this volume through advance planning, pricing, merchan-
dising, and selling. We are confident of our capability in this regard.

The combined selling efforts and facilities of our domestic sales, exports, pre-packaging, mer-
chandising, and advertising functions are of invaluable aid to the grower who markets through
the Florida Citrus Exchange. These facilities will have an even stronger influence on the trade in
the future, and will reflect even greater benefit to Florida's fresh fruit industry.

The larger crops of the future will not be as easily sold as crops of the past, yet we are certain
that an aggressive and comprehensive Exchange program will create the foundation on which
to build even more profitable fresh citrus returns.


r Our International Division has experienced a very successful season in terms of both volume and
price. Our export volume for the 1960-61 season has been substantially increased over last
season, and has been responsible for a large portion of the state's total export volume.

For the first time in the history of either the Exchange or the Florida citrus industry, we have
exported fresh grapefruit and oranges to Finland. Our reception was excellent and continued
sales to this nation are expected in the future.

In France, where we have endeavored for years to seek out a market, we have at last estab-
lished what we believe to be a foothold for grapefruit sales. We have shipped substantial quan-
tities to France this season in the face of strong competition from Israel. We expect further ac-
complishments in this regard.

Our fresh grapefruit shipments to England have been substantial this season since that market
was opened on March Ist. This continues to be our most important potential for fresh grapefruit
exports. British interest in and demand for our grapefruit is excellent, but trade barriers con-
tinue to critically curtail movement of fruit. There is some reason to hope that these barriers
will be eased in the near future.

a ~

Other important export markets for fresh citrus, and to whom we have shipped during the cur-
rent season, include The Netherlands, West Germany, Denmark, Sweden, Norway, Ireland, and
Scotland. Sales in Switzerland have decreased this season because of our refusal to consign or
to ship on open account. Again this season, we effected a large single shipment of early oranges
to New Zealand.

Our export activities have once again included the sale of a substantial volume of juices and
concentrates. We have shown increases throughout the season in all areas of our trade activity.
We believe this to have been an exceptionally good season for the export of single strength
juices, and at least satisfactory for grapefruit sections.

We have continued to press for more favorable freight rates from water carriers, and were
responsible to a large extent in obtaining reduced rates from Tampa to LeHavre. The matter
of rates schedules is particularly important in all areas of our export activity because of the
fierce competition we encounter throughout Europe.

There is little doubt that this organization should continue to make every effort to expand its
export operations. Advantages to the Florida citrus industry are obvious. Movement of large
quantities of citrus and citrus products out of the domestic market has a direct reflection on
grower returns. The difficult position in which we found ourselves with grapefruit was relieved
considerably at several points during this season by our ability to secure large and frequent fresh
grapefruit shipments.


The Florida Citrus Exchange has continued to receive a generally favorable press throughout the
1960-61 season. The peculiarities of the season along with the fact that the Florida legislature
has been in session has made our relationship with news media of extreme importance.
Both Florida media and trade newspapers and magazines have been cooperative in assisting us
to tell the Exchange story wherever possible. Our image among growers, industry, and the trade
has been substantially enhanced as a result of this activity.
Perhaps the most long-lasting single accomplishment of the season has been the publication of
the book "Fifty Years of Citrus". With copies now available in most public libraries of the state,
in universities throughout the nation, and in the hands of a good many growers and other indi-
viduals, the progress of the past fifty years has now been officially recorded.
Another publication entitled "Let's Get Acquainted" has been released in the form of a simple
mail-out pamphlet designed to briefly outline the general operations of the Exchange.
Each of the special activities of this department is undertaken within the general policy of the
organization and the desires of the Board of Directors. Legislative liaison during the season, for
example, was accomplished in several areas in conjunction with the industry's legislative pro-
posals, and other legislation of interest to the Exchange. The size and complexity of the citrus
industry in this day and time is such that our continued good relationship with state officials
and legislators is directly related to the protection of our interests in the citrus business.

While it is difficult to analyze in tangible terms of volume, beyond the five thousand some odd
column inches of Florida newspaper publicity we have received during the season, the accom-
plishments of the Industrial Relations Department are visible in the increasing stature and pres-
tige enjoyed by the Exchange everywhere.


For the second consecutive season, the Exchange participated in national consumer magazine
advertising. In addition, trial outdoor advertising was undertaken in Pittsburgh and Detroit on
a limited scale. Trade paper advertising was held to a minimum throughout the season because
of the untypical nature of this production period.
Brand advertising is, of course, our method of asking consumers to purchase our brand of citrus.
It is normally most effective when the trade can be prevailed upon to support our advertising
with in-store promotions, and, because of budget limitations, our advertising expenditure for
the season was made with this point in mind. The Exchange continues to be the only fresh fruit
sales agency in the state conducting its own national brand advertising campaign, a fact well
recognized by much of the trade.


The Traffic Department has encountered its fair share of perplexities of the 1960-61 season.
The shortage of motor transportation during the final two months of the season has been the
most critical in the memory of our traffic executives.
At the close of the third week in May, we had processed over 700 truck and rail claims totalling
$70,388.28, with collections at that time amounting to $63,591.38. These figures will, no doubt,
be increased considerably by the close of the season.
Several important developments in the transportation field have occurred during the 1960-61
season. Perhaps the most significant is the establishment by Florida rail lines of trailer-on-flat car
(piggy-back) service for fresh citrus fruit. Subsequent developments in this service has been
the inauguration of special piggy-back trains at passenger train speed from Florida to Baltimore,
Philadelphia, and New York. This service, started as a pilot operation with 50 trailers, now
encompasses more than 200 trailers, and has received favorable acclaim by shippers and re-
ceivers alike.
A proposal, filed by the railroads in May, 1960, changing the long established basis for arriving
at billing weights on new containers would have resulted in some instances in increased trans-
portation costs to shippers. We were joined in vigorous opposition by other volume shippers,
and were eventually successful in the withdrawal of the proposal.

In the matter of the Atlantic Coast Line and Seaboard Air Line merger, we appeared before the
Interstate Commerce Commission in support of this development at the direction of the Board
of Directors.
At the present time, efforts are being made by railroads and regulated motor carriers to seek
Congressional repeal of certain agricultural exemptions authorized in Part II of the Interstate
Commerce Act. Repeal of these exemptions would force shippers to rely exclusively on railroads
and regulated motor carriers for interstate commerce. We are, of course, already in opposition
to this action and have joined the Florida Growers and Shippers League as well as the National
Council of Farmer Cooperatives in counter measures.
In the area of truck procurement, it is interesting to note that through the facilities of our Traf-
fic Department, we have engaged more than 4,500 individual trucks thus far this season, and
have issued instructions to several thousand more "buyers" trucks in the process of moving our
fruit to market.
As an integral part of the Exchange system, our Traffic Department continues to serve our
shippers in the complicated field of transportation. Our familiarity with, and knowledge of, the
volumes upon volumes of regulations that directly affect shipping procedures, provide decided
advantages to shipper members and their growers. Procurement of transportation at the best
possible rate is an important factor in the sale of each box of citrus through this organization.


For the five year period ending with fiscal 1960, our accounting department has collected more
than $125,000,000.00 on behalf of members of the Florida Citrus Exchange. Thus far during the
current season our collections and disbursements are in excess of $25,000,000.00.
Despite the magnitude of this responsibility, and the exactness with which this responsibility
must be performed, collections are processed and returns forwarded to shippers within twenty-
four hours after receipt.
Our Accounting Department invoices and collects from a wide range of more than 1,200 indi-
vidual accounts, pays all brokerage and many transportation charges, and performs a score of
additional services for all departments requiring accounting and auditing control.
Functioning under the supervision of the Accounting Department, our Statistical Department
compiles and maintains up-to-the-minute sales and shipment reports. Through this activity, daily
auction sale averages, graphs and charts, and other pertinent statistical data is available to
each of our several operational departments on a moment's notice.
The increasing volume of "bookwork" required for tax purposes, as well as the high degree of
skill and knowledge involved in the handling of large sums of money, most certainly call for both
confidence and experience. The Florida Citrus Exchange is, in our opinion, in excellent position
in this regard.


Our Legal Department has undergone a marked increase this season in matters involving a
number of Federal and State laws, particularly the Perishable Commodities Act, Robinson-Pat-
man Act, Food and Drug Act, and Florida's intangible tax law.
We also became involved to a considerable degree in the preparation and formation of the
citrus legislative package adopted into law during the 1961 session of the Florida Legislature.
And, last January, we participated in a hearing conducted by the Federal Trade Commission
in Lakeland to consider proposed trade practice rules for the Florida fresh citrus fruit industry.
We have reason to hope for, and rather expect, that a final public hearing will be held some-
time next fall, and that finalized rules will be promulgated shortly thereafter.


For next season it seems as though the drought this spring will prevent too great an increase
in the citrus crop. The U.S.D.A.'s May orange condition report has indicated to most "crop
guessers" that we will not reach over 95,000,000 boxes of oranges next season, barring an unex-
pectedly large June bloom. It is confidently believed in the industry that we can handle this
size crop without too radical a change in marketing methods or prices.
Grapefruit, however, continues to present a problem and our main hope for some relief next sea-
son lies in our belief that we will have an earlier starting date, which will allow us valuable extra
days in which to move our crop.

It is now believed that Texas will not have too large an increase next year, but they will contin-
ue to be a formidable competitor in the fresh fruit field. Due to their heavy plantings of Red
Grapefruit, they have only limited support from the cannery market for their off sizes and
grades. Therefore, we can anticipate periods of distress pricing in the fresh market on this type
of fruit.
Our Temples, Tangelos, Tangerines, Murcotts, etc. should continue to give good returns next sea-
son. The supply is still relatively limited and they continue to attract the interest of the fresh
fruit trade.
The long term outlook resolves itself around two factors; size of crop, and how successful we
are in attracting a larger segment of the buying public to fresh oranges and grapefruit.
Every consumer survey we have seen indicates that it is the older age group of the public that
is buying most of the fresh oranges and grapefruit. It is imperative that we devise a more per-
suasive advertising and promotional campaign to encourage the younger housewives to use
these two products. This won't be an easy campaign to develop, but if we are to hold our own
with fresh fruit, it must be done.
We believe that our export demand will increase in the future. There are many obstacles to
overcome but with more people living in Western Europe than in the U.S.A., the stakes are
well worth our making a strong and determined effort on both fresh and processed citrus.

OUTLOOK (continued) .

We are pleased that Legislation has been passed that allows some flexibility in our maturity
standards, so that it is now possible to contract in late summer for fall fruit delivery with some
degree of assurance that our commitments can be carried out even though we might have tem-
porarily adverse weather conditions.
We are also pleased with the emphasis our research people are putting on new and improved
citrus products. We feel that it is with the widened market for existing products and new devel-
opments, such as crystals, citrus bases and other improved products, that we will be able to
handle the increasing crops we see in the future.

John T. Lesley
General Manaaer n v

4 4w

Is V r




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