J

June 1959

Agricultural Economics
Mineo Report 59-13

DISTRIBUTION OF FLORIDA SNAP BEANS

Seasons

1952-53 and 1953-54

by

Donald L. Brooke and Cecil N. Smith
Associate Agricultural Economists

Department of Agricultural Economics
Florida Agricultural Experiment Stations
Gainesville, Florida

TABLE OF CONTENTS

page

INTRODUCTION . ..

TYPE OF TRANSPORTATION ,

DISTRIBUTION OF SHIPMENTS

TYPE OPSALE .

TYPE OF FIRST HANDLER .

SUMMARY . .

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ACKNOWLEDMENTS

The writers express their appreciation to the organizations

supplying data for this study conducted with funds supplied under the

Agricultural Marketing Act (Title II, ES 235). They are also grateful

to Messrs. A. H. Spurlock, D. D. Badger, Charles Winton and H. H. Burnette

for assistance in obtaining field data; to Mrs. Bernard Dykes for clerical

assistance; and to the University of Florida Statistical Laboratory for

preparation of data for analysis.

DISTRIBUTION OF FLORIDA SNAP BEANS

Seasons

1952-53 and 1953-54

by
Donald L. Brooke and Cecil N. Smith1

Introduction

During 1953-54 Florida produced about one-third of the commercial

fresh market crop and 7 percent of the commercial crop for processing of

snap beans in the United States.2 The major portion of Florida's pro-

duction occurs during the late fall, winter and spring months when very

few snap beans are grown elsewhere.

Snap beans are Florida's second most important vegetable crop in

terms of value. During the 1953-54 season they were valued at $18.6 mil-

lion or 13.7 percent of the total value of all vegetable crops produced

in Florida. Six seasons earlier, in 1947-48, snap beans were valued at

$14.8 million or 15.1 percent of the value of Florida vegetable crops.

Acreage decreased by 8 percent and yield per acre increased by nearly

14 percent from 1947-48 to 1953-54.3

Snap beans are produced in Florida primarily for fresh market

consumption. However, since World War II an increasing volume of

Associate Agricultural Economists, Florida Agricultural
Experiment Stations, Gainesville, Florida.

2USDA, Agricultural Statistics, 1955, pp. 208 and 209.

3USDA, AMS, Florida Crop and Livestock Reporting Service,
Florida Vegetable Crops, Volume XT, 1955, pp. 4 and 100.

1

Florida snap beans has been sold to processors. During portions of

each season supplies in excess of what the fresh market will absorb

are usually diverted to processing. In recent years there has been

some contract production by Florida growers expressly for sale to

processors. In 1947-48 processors purchased 593,000 bushels of

Florida snap beans and in 1953-54 they absorbed 1,856,000 bushels.4

This was 9 and 23 percent of the production in the two seasons,

respectively.

Prices paid by processors ranged from $1.47 to $2.20 per

bushel during the 1947-48 to 1953-54 period.4 Because sales to

processors are in bulk, marketing costs to growers for beans thus

sold are less than for those sold to fresh market outlets by approxi-

mately '0.50 per bushel. This amount represents the cost of the con-

tainer and some saving in handling not required when snap beans are

loaded and sold in bulk. Net prices to growers therefore ranged

from $0.32 to $0.85 per bushel below equivalent fresh market prices.

The data analyzed in this report were taken from sales

invoices of nine firms for the 1952-53 and 1953-54 seasons. Infor-

mation obtained included bushels sold, prices received, type of sale,

container, variety, date of sale, method of transportation, marketing

charges, packing costs, type of receiver and destination of shipment.

Data for each sale were coded and transferred to I.B.M. cards.

Various types of tabulations were made with these cards and tables

prepared for analytical purposes.

This report presents the pattern of distribution of snap

beans from Florida.

4Ibid., p. 4,

Type of Transportation

Florida snap beans move to market by rail and by truck. Data

from the Crop Reporting Service of the United States Department of

Agriculture on carlot equivalents moved by rail and truck from Florida

indicated that trucks moved about three-fourths of the crop in each

of the seasons studied (Table 1). Sampled sales invoices indicated

a heavier truck movement in each season. Both sets of data showed a

decrease in truck and corresponding increase in rail shipments from

1952-53 to 1953-54. It is possible that the sampled firms (located

mainly in the Everglades and Lower East Coast areas) used truck

transportation to a greater degree than was true of all firms shipping

snap beans from Florida during the seasons studied.

TABLE 1.--Proportion of Florida Snap Bean Production Shipped by Rail
and Truck, by Source of Data, Seasons 1952-53 and 1953-54

Percent of Shipments

Season
Rail Truck Total

USDAa

1952-53 24.7 75.3 100.0
1953-54 27.9 72.1 100.0

Sampleb
1952-53 13.3 86.7 100.0
1953-54 18.8 81.2 100.0

aUSDA, AMS, Florida Crop and Livestock Reporting Service,
Florida Vegetable Crops, Volume XIII, 1957, pp. 9, 10.

bIncludes Florida and unknown destinations movement which
later data show separately.

Distribution of Shipments

Areas and type of transportation

Shipments by rail were relatively more important than truck

shipments to distant market areas such as Canada and the Midwest

(Table 2). (The data in Table 2 relate to the proportion of shipments

TABLE 2.--Proportion of Florida Snap Bean Volume Shipped by Type
of Transportation and Market Areas, Seasons 1952-53 and 1953-54

Type of Transportation
Market _________
Area
Rail Truck Total

Percent of Volume

1952-53

Northeast
Mid-rest
Southeast
Southwest
West
Canada

All Areas
Floridaa

Northeast
Midwest
Southeast
Southwest
West
Canada

All Areas

Floridaa

26.7
66.4
6.1

1.4

15.4
10.9

73.3
33.6
93.9
100.0
98.6

84.6
89.1

1953-54

56.6
71.5
1.5

11.5
100.0

22.0

12.8

43.4
28.5
98.5
100.0
88.5

78.0

87.2

100.0
100.0
100.0
100.0
100.0

100.0
100.0

100.0
100.0
100.0
100.0
100.0
100.0

100.0

100.0

aMany sales to brokers in Florida were diverted to debate*
nations not recorded on the original sales invoice. Since these
destinations were unknown, Florida was excluded from the Southeast
and the average of all areas.

made by rail and by truck to each area and not to percentage of all

shipments made to each destination.) However, only a small proportion

of the shipments to western markets moved by rail. Rail volume

increases with distance, but may vary between markets at the same

distance because of differences in arrival time, terminal handling

facilities, rate structures, etc.

Truck movement was heaviest to the Southwest, West and South-

east. Much of the movement to southwestern destinations was intended

for processing and the bulk of such movement was by truck.

Areas and varieties

Among the firms studied, one-half of the volume shipped from

Florida was marketed in the southeastern area, one-fourth moved into

northeastern markets and between one-fifth and one-seventh was sold

in the Southwest (Table 3). Markets in the West and Canada took

about 2 percent of sales each season.

Processors use more round-type beans (Tendergreens) than other

types for canning. These moved into the Southwest and Southeast with

some fresh market sales in the Northeast and Midwest.

Of the volume shipped to the selected market areas, the oval-

type snap beans (Black Valentine and Contender) led all other types

for fresh market consumption in the West, Midwest and Northeast. The

Plentiful variety (flat-type) was important in the northeast and

southeast market areas. Wax beans moved West and Northeast. Few

pole beans were sold by the firms studied, but the majority of these

were shipped to southeastern markets,

TABLE 3.--Proportion of Sales of Florida Snap Beans by Variety and
Market Areas, Seasons 1952-53 and 1953-54

Percent of Sales by Variety
Market
Area
Aender- Black Con- Plenti- Uax Pole Unclass- All
green Valentine tender1 ful ified Varieties
...... ..... .. --- ..... .. .--i--i--if--- -i-------------

1952-53

Northeast
Midwest
Southeast
Southwest
West
Canada

All Areas

7.8
20.1
35.7
90.7
2.5

38.2

56.4
65.4
21.7
1.4
90.7

2.9
10.4
28.3
5.9

28.1
.8
10.2

1.8
.2 2.1

30.9 15.7 11.4 2.6 .1 1.1

Floridaa 53.2

13.5 12.3

19.2 1.1

.7 100.0

1953-54

Northeast
Midwest
Southeast
Southwest
West
Canada

All Areas

16.8
1.2
40.8
96.9

27.1

38.4

Floridaa 39.9

57.1
76.5
18.7
1.0
91.2
68.4

14.8
14.0
20.5
2.1

5.3
2.2
14.1

4.5

5.9
5.6
4.9

8.8

32.4 15.5 8.6 4.6

27.5 21.5 8.7 2.1

.5
1.0

26,6
7.7
49.7
13.8
1.6
.6

100.0

.5

.3 100.0

aMany sales to brokers in Florida were diverted to destinations

not recorded on the original sales invoice.
were unknown, Florida was excluded from the
of all areas.

Since these destinations
Southeast and the average

bLess than 0.05 percent.

Type of Sale

F.O.B. sales were by far the most important type used by Florida

firms during the 1952-53 season. They accounted for between 82 percent

23.9
9.3
45.3
20.2
1.3

100.0

of the volume in the midwest market area and all of the volume shipped

to markets in the West (Table 4). Consigned sales were important only

in the northeast and midwest market areas. Sales on a delivered basis

TABLE 4.--Distribution of Florida Snap Beans by Type of Sale and Market
Area, Seasons 1952-53 and 1953-54

Type of Sale
Market
Area
F.O.B. Consigned Delivered Joint Local Total
Account Auction

Percent of Total Sales

1952-53

Northeast
Midweit
Southeast
Southwest
West
Canada

All Areas

Floridaa

Northeast
Midwest
Southeast
Southwest
West
Canada

All Areas

Floridaa

88.1
81.9
86.4
99.8
100.0

89.3

92.9

10.2
8.6
.1

3.3

.4
6.5
12.2
.2

6.3

1.9

1.3
3.0
1.3

1953-54

44.7
18.5
81.0
100.0
56.9
100.0

68.9

90.9

50.5
77.4
1.4

42.7

20.7

.5

3.8
3.6
17.4

10.0

.4

1.0
.5
.2

.4

.1 8.1

aMany sales to brokers in Florida were diverted to destinations
not recorded on the original sales invoice. Since these destinations
were unknown, Florida was excluded from the Southeast and the average
of all areas.

100.0
100.0
100.0
100.0
100.0

100.0

100.0

100.0
100.0
100.0
100.0
100.0
100.0

100.0

100.0

were important in the Southeast and Midwest. Joint account sales made

up a relatively small volume, being 1 percent or less of total ship-

ments.

Type of sale and diversions

Marketing organizations vary widely with respect to sales

policies. Some attempt to sell F.O.B. before the product moves into

the channels of distribution. Others may start the commodity on its

way (rolling) and attempt to sell F.O.B., diverting the product to

its final destination at specified rail diversion points. Failing

this, the organization has the alternative of consignment, delivered,

price arrival, joint account selling or dumping. Some organizations,

although in the minority, sell all of the product on consignment

by preference.

Diversion of shipments en route to a final destination was

greater in the 1953-54 season than in 1952-53. Nearly one-half of

the volume shipped to the Northeast and three-fifths of that shipped

to markets in the Midwest during the 1953-54 season were diverted

en route (Table 5),

Of the snap beans sold on an F.O.B. basis in 1953-54, nearly

one-fourth of the volume to the Northeast and about 10 percent of that

to the Midwest were sold while "rolling" and was diverted en route.

Since none was diverted by the firms studied in the 1952-53 season,

one might infer that one or more selling organizations made a change

in sales policy between the two seasons. The production of snap beans

in the 1953-54 season was 18 percent larger than the 1952-53 level

TABLE 5.--Proportion of Snap Bean Volume Shipped from Florida Diverted
Enroute to Destination by Type of Sale and Market Area,
Seasons 1952-53 and 1953-54

Percent of Volume

Market
1952-53 1953-54
Area ___.... ..

Diverted Undiverted Diverted Undiverted

All Types of Sales

Northeast 3.6 96.4 45.8 54.2
Midwest 9.3 90.7 60.1 39.9
Southeasta 100.0 100.0
Southwest 100.0 1.1 98.9
West 100.0 100.0
Canada 100.0

All Areasa 1.7 98.3 16.7 83.3

F.O.B. Sales
Northeast 100.0 24.1 75.9
Midwest 100.0 8.9 91.1
Southeasta 100.0 100.0
Southwest 100.0 100.0
West 100.0 100.0
Canada 100.0 100.0

All Areasa 100.0 4.3 95.7

Consigned Sales

Northeast 30,5 69.5 69.2 30.8
Midwest 77.7 22.3 75.5 24.5
Southeasta 100.0 100.0
Southwest 100.0 23.6 76.4

41.7 58.3

All Areasa

67.1 32.9

TABLE 5. -Continued

Percent of Volume
Market
1952-53 1953-54
Area

Diverted Undiverted Diverted Undiverted

Delivered Sales

Northeast 100.0 100.0
Midwest 100.0 100.0
Southeasta 100.0 100.0
Southwest 100.0
West 100.0

All Areasa 100.0 100.0

Joint Account Sales

Northeast 8.3 91.7 39.1 60.9
Midwest 100.0 86.1 13.9
Southeast 100.0 100.0

All Areasa 5.5 94.5 31.1 68.9

aFlorida excluded from the Southeast and average of all areas
because of lack of knowledge of final destination on many shipments.

with season average prices $0.61 per bushel lower.5 This situation may

have been a contributing factor to such a change in policy.

Diversions were high on consigned sales in both seasons to the

Northeast and the Midwest. About three-fourths of all consigned sales

to the Midwest were diverted in each season. Diversions were higher to

the Northeast in 1953-54.

5&biad. p. 4.

Destinations were positive for sales made on a delivered basis

in both seasons. Joint account sales were more heavily diverted in

1953-54 than in the previous season.

In a study of the sales distribution of tomatoes it was noted

that the percentage of volume diverted was greater among rail than

among truck shipments. Twenty-three percent of rail shipments and

less than 1 percent of truck shipments were diverted on route.6 Truck

shipments are less easily diverted in transit than rail shipments.

In most instances truck drivers have definite instruction concerning

their destination before moving a load. The fact that more beans

than tomatoes move in mixed loads7 is also likely to reduce diversions

en route by rail or truck.

Type of First Handler

The organization or individual handling snap beans from Florida

was recorded from the original sales invoice. A complete list of these

handlers was compiled and classified by type of handler, using the Red

Book and The Bluebook information on dealers and handlers of fruits and

vegetables. In many cases handlers had more than one classification.

Where this occurred, the first one given was used. Handlers were

classified as buyers or agents. Those iucluc-e. in thl buyer category

were handlers who took immediate title to the product. Agents were those

who acted as intermediaries Letween buyer and seller and d.d not take

title to the product.

6rooke, Donald L. and Smith, Cecil N., Distrjbution of Florida
Tomatoes, Fla. Agr. Exp. Sta. Agr. Econ. l~imeo Repozrt 58-11, pp. i7-18.

7USDA, AMS, On. cit., pp. 9 and 76.

Agents were important handlers of snap beans in several market

areas. Commission merchants handled about one-fifth of the crop in each

of the years studied, yet in some market areas they arranged the sale

of three-fourths or more of the volume sold (Table 6), In the 1953-54

season sales in Canada, the Midwest and the Northeast were predominantly

by commission merchants. Selling brokers were important as agents only

in the West.

Among the buyers, canners purchased one-third of the volume

sold by the nine firms studied. Sales to canners were important only

in the Southwest and Southeast and in Florida in 1952-53. In 1953-54

canners in the Northeast also purchased a considerable volume of

Florida snap beans.

Buying brokers were second in importance among the buyer group.

Their operation was confined primarily to Florida and the true scope

of distribution of their purchases is not known. Cash buyers and

truckers operated primarily in Florida and the Southeast. The bulk

of their purchases were small lots for mixed-load shipments.

Jobber, wholesaler and chain store outright purchases were

each 5 percent or less of total sales in the seasons studied. Jobber

sales were one-fourth of total volume in the Midwest in 1952-53 and

less than 10 percent in 1953-54. They also handled about 10 percent

of the Southeast volume in 1953-54. Wholesalers were important buyers

in the Midwest in 1952-53 and in the Southeast in 1953-54.

Outright purchases by chain stores accounted for 13 percent of

the volume sold in the Midwest in 1952-53 and for lesser amounts in the

other market areas. Chain stores may also purchase from other types of

handlers in the terminal markets. Therefore, their true importance is

not reflected in the chain store group shown in Table 6.

TABLE 6.--Purchases of Snap Beans by Type of First Handler and Market
Area, Seasons 1952-53 and 1953-54

1952-53

Buyers:
Canners
Buying brokers
Cash buyers
and truckers
Jobbers
Wholesalers
Chain stores

3.4 61.1
.4

5.4 24.9
4.9 19.7
2.9 13.1

.7
2.3
2.0
3.9

98.8

15.6
64.8

2.2

.2

1.0 5.4

33.3
29.6

12.7 6.0
1.7 3.3
2.3
2.4 3.2

Grcup Total

Agents:
Commission
merchants
Selling brokers

13.6 61.1 71.2 100.0 7.6

86.4 38.9 23.0
5.8

4.9
87.5

97.2 77.7

2.4 20.1
.4 2.2

Group Total
All handlers

Buyers:
Canners
Buying brokers
Cash buyers
and truckers
Jobbers
Wholesalers
Chain stores

86.4

38.9 28.8

92.4

100.0 100.0 100.0 100.0 100.0

2.8 22.3
100.0 100.0

1953-54

11.9
.9

4.6
2.2
7.0

.2
.7

7.0
5.1
5.2

64.7
.3

2.4
9.8
11.8
1.1

98.8 1.1

.3

1.5
.8 .2

9.0 35.4
68.8 23.7

5.6 2.7
2.3 5.1
4.6
1.4 2.4

Group Total

26.6

18.2 90.1 99.9 2.8 1.1 87.1 73.9

Agents:
Commission
merchants
Selling brokers

Group Total
All handlers

73.4 81.8

73.4 81.8

10.1.
.1 87.1

98.9

.1 97.2 98.9

100.0 100.0 100.0 100.0 100.0 100.0

3.6 21.8
9.3 4.3

12.9 26.1
100.0 100.0

_ _____ __ __ __ _____

_ I_ I

_ _____ _I_

_ ____ ___

SUMMARY

Snap beans, Florida's second most important vegetable crop in

terms of value, are primarily produced for fresh market consumption.

However, since World War II as much as 23 percent of the Florida snap

bean crop has been sold to processors at prices generally $0.32 to

$0.85 per bushel lower than the equivalent fresh market price. Some

growers produce beans for processors on a contract basis.

Between three-fourths and seven-eights of Florida's snap beans

are moved to market by truck. Rail movement is greatest to the more

distant market areas and to markets having relatively poor truck

receiving facilities.

During the seasons studied about one-half the Florida volume

was sold in markets in the Southeast, one-fourth in the Northeast and

between one-fifth and one-seventh in the Southwest. Markets in the

West and Canada absorbed little of the Florida volume.

Black Valentine and Contender (oval-type snap beans) varieties

lead all others in fresh market sales in the West, Midwest and North-

east. Plentiful variety beans (flat-type) were important in the

Northeast and Southeast. Tendergreen (round-type) beans are used

primarily by canners in the Southeast and Southwest.

F.O.B. sales were the most important type of sale used by

Florida firms in the two seasons studied. Consignment sales were

relatively important in 1953-54 in the Midwest, Northeast and West.

Delivered sales were important in the Southeast.

The practice of "rolling" cars of snap beans toward market and

diverting en route to some final destination was more important for sales

to the Northeast and Midwest in 1953-54 than in the prior season.

Relatively little of the volume moving to other market areas was

diverted en route. Diversions were greater for consigned and joint

account type sales than for all other types of sale. There were no

diversions among delivered sales in either season.

Canners purchased about one-third of the volume of the nine

firms studied. Buying brokers were second in importance, purchasing

about one-fourth of the total volume in the seasons studied. Com-

mission merchants handled one-fifth.of the volume in each season and

were most active in the Northeast and Midwest. Other types of buyers

and agents handled about one-sixth of the Florida volume each year.

DLB:sd 6/24/59
Exp. Sta., Ag. Ec. 500