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LORID AUG1 1960
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SEALD-SWEET SALES, INC.
OFFICERS DIRECTORS AND DEPARTMENT HEADS
FLORIDA CITRUS EXCHANGE
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
John T. Lesley, Tampa
James Samson, Tampa
General Counsel and Secretary
Counts Johnson, Tampa
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
I. J. Pemberton, Jacksonville
Phil C. Peters, Winter Garden
Jack A. N. Strong, Vero Beach
John C. Updike, Lake Wales
C. G. Wilhoit, Vero Beach
H. H. Willis, Sr., Fort Pierce
John T. Lesley
Donald M. Lins
General Sales Manager
Luke C. Johnson
Asst. Gen. Counsel
E. F. Gudgen
William G. Strickland
Assistant to General Manager
Paul C. Sarrett
Howard N. Baron
Manager, International Division
James T. Hopkins
Industrial Relations Director
As the Florida Citrus Exchange completes another successful season, I believe it is timely that we extend our
appreciation to the Florida Citrus Commission and Florida Citrus Mutual for assuming leadership in this period
which has been properly called our greatest era of cooperation.
With the formation of the Florida Fresh Citrus Shippers Association, the industry has made a move, long overdue,
to place fresh fruit shippers, as a group, on a level with other utilization factors. It is to be hoped that a spirit of
cooperation will prevail within this organization, and that it will develop into a workable symbol of the importance
of fresh fruit sales to the entire industry.
Our service agencies, properly directed, working closely with the industry's selling agencies, are our most important
tools as we face the job ahead. Cooperation has become the key factor in the stabilization of our industry and
we must continue to pursue this course at each opportunity.
GENERAL MANAGER'S REPORT
As predicted, the 1959-60 season has returned our citrus production volume to nearly normal. The Florida Citrus
Exchange expects to complete the season with an average orange sales increase of approximately 45% over last
season. We have demonstrated our ability to move large quantities of fresh fruit to the ultimate benefit of our
growers; proved that the fresh fruit market can absorb a considerable proportion of total production.
With the prospect that the 1960-61 season may well be the largest production year in the history of Florida
citrus, the industry faces a formidable challenge. The Exchange is confident of its ability to meet this challenge.
With the efficiency of our Sales Department, the flexibility of our Export Department, the advertising and
merchandising facilities at our disposal, and the added services of the Growers Loan and Guaranty Co., the
Exchange Supply and Service Cooperative and Seald Sweet Packers, Inc., members of the Exchange are well
equipped to meet increased production. Our experience of 50 years, plus the extras afforded our growers by
the Florida Citrus Exchange will become more effective as we face the challenge of the years to come.
The Florida Citrus Exchange Sales Department had the distinct advantage of making
some of the first shipments of fresh fruit from Florida this season. We believe we shall
also make the last shipment from the state, some time in July. Our overall volume is
expected to show an estimated 10 per cent increase over last season, in spite of a very
short grapefruit crop and a 20 per cent decrease in tangerine production.
The Sales Department is a highly co-ordinated team consisting of f.o.b. salesmen,
our northern offices, pre-packaging plant and export facilities. We believe that we offer
our shippers the most complete selling department in any Florida citrus operation. We are
working as a team to return the top dollar to our shippers at a minimum sales expense.
A substantial increase has been shown in our f.o.b. sales percentage and should
represent the highest gain in f.o.b. sales in the history of the Exchange.
A 45 per cent increase in orange volume over last season was of particular interest dur-
ing the 1959-60 season. It is gratifying to realize that this increase has been made possible
through merchandising, promotions, and intensive sales efforts. Lower prices prevailed
throughout the fresh orange season, nevertheless the 1959-60 season will be recorded
as the sixth ranking high-price season in the last 30 years. It has also been the second
largest crop ever harvested in Florida.
Temples, tangerines and tangelos were all marketed in good order. While the
tangerine crop was less than normal, high prices helped soothe the shortage. Temple
prices were low at their peak volume period, however, later shipments brought outstanding
prices. Tangelos were in good demand and the market was good throughout the season.
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State grapefruit volume was down about 10 per cent for the season. Although total
production was light, the early maturity and large sizes forced over-shipments throughout
the early and mid-season periods. As volume tapered off, prices increased rapidly. Later
supplies brought outstanding demand and extremely good prices. Indian River Sub-
Exchange shippers had the largest volume in their history, as well as the highest
percentage of f.o.b. sales.
It is apparent that the large increase in Texas grapefruit must be reckoned with in
future seasons. Their production is expected to double next season, and it will continue
to increase each year for an undetermined period. It is imperative, with this in mind,
that we do everything possible to maintain a high standard of pack and grade on
all our grapefruit.
It becomes increasingly evident that the sale of fresh citrus fruit in the future will
take considerable planning. In most cases the sales plans of major retailers must be
made several weeks in advance. Newspaper advertisements and other promotional facili-
ties will require firm commitments as to number of trucks and/or cars to be used, and,
in many cases, pricing must be fixed in advance. The benefits can be great, however,
as sales volume can reflect tremendous gains on well organized promotions. The
generally recognized trend toward increased promotional assistance by suppliers can
be expected to apply to fresh fruit sales agencies as a prerequisite in many sales
endeavors. This continuing development establishes the need for promotional aids and
facilities, and requires the utmost cooperation between the Sales Department and our
Advertising and Merchandising Departments.
In summary, your sales organization is dedicated to a "new era" of operation which
combines merchandising, promotion and sales talent to return the top dollar to our
shipper members. We face the increasingly larger crops ahead fully confident that they
can be successfully marketed through teamwork between shippers, the sales department
and our buyers.
PAUL C. SARRETT
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The greatest advance in Traffic in the 1959-60 season has been piggy-back
service (truck trailers on rail flat cars), which will facilitate shipments during
time of truck shortages.
Up to May 20, 56% of our fresh citrus moved by truck, 44% by rail, as
compared to a state movement of 67% by truck, 33% by rail. This season, we
arranged for 1,000 more trucks than we required last year. Since our last report,
532 rail claims, amounting to $60,084.17 have been processed, with collections
on 462, amounting to $48,125.65. For the same period, 703 truck claims were
processed and collections amounted to $32,211.25.
Teamwork is the keynote of the Traffic Department. Both in this department and
in cooperation with the sales department, we strive to do the best possible job in
marketing Exchange fruit.
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Member Associations and Shippers of the Florida
Citrus Exchange owners and operators of the
groves that supply quality Seald-Sweet citrus.
W H CLARK FRUIT CO,
MT DORA GROWERS COOP.
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McLEOD FRUIT COMPANY
ORLANDO C. G. A,
PLYMOUTH C G A.
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THEODORE STRAWN, INC.
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UMATILLA C. G A
WINTER GARDEN C G A,
ALCOMA PACKING CO. INC,
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LAKE GARFIELD CITRUS COOP,
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DUNDEE C G A.
FLORENCE C G A,
HOGAN & SONS
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HUNT BROS COOPERATIVE.
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WINTER HAVEN C. G. A.,
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BROOKSVILLE C. G. A,
CLEARWATER GROWERS ASSN.,
ELFERS C. G. A.,
PALM HARBOR C G A,
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FLAMINGO GROVES, INC.
FT. PIERCE GROWERS ASSN.,
GRAVES BROS. CO.,
INDIAN RIVER ASSOCIATES, INC,
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MIMS C G. A.,
OAK HILL C G. A,
OSLO C G A.,
TUXEDO FRUIT CO., INC.
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INDIAN RIVER EXCHANGE
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INDIAN RIVER GROWERS SERVICE,
SEBRING PACKING CO.. INC.
DIAMOND FRUIT CO.
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DISTRICT .,r.ler HO.en
OFFICES P.C ior.l..re C,.ir.S h.' .na.e'
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WHERE FAMOUS SEALD-SWEET CITRUS GOES
In distributing centers throughout the United States and
Canada, and in many foreign countries, Seald-Sweet
fresh citrus is recognized as quality. The map shows
distribution centers in these areas, sales points making
dollars for Florida Citrus Exchange.
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K The 1959-60 season has been one of the most difficult since the activation of
the International Division. Orange export shipments decreased considerably,
resulting from increased ratio requirements, virtually eliminating early Florida
oranges as an export item to Europe. Despite this, our search for new markets
Continued; New Zealand and Barbados are now buyers of Florida citrus. We
have continued weekly shipments to markets developed in past seasons, including
the Belgian Congo, Curacao and Bermuda. With the relaxation of some currency
and import restrictions in Europe, we have maintained our proportionate share
of export sales, shipping over 50% of Florida's total export of oranges, over
HOWARD N BARON 60% of the state's total export of grapefruit.
We have established the Seald-Sweet name in Europe and now draw premium
prices at many auctions. Although our foreign trade advertising and promotion
budgets are restrictive, personal relations and contacts, such as our annual
visits, have solidified Seald-Sweet as the top Florida brand in Europe.
With the high volume expected of the 1960-61 season, our foreign trade can
become an increasingly important utilization factor. Confident that our export
trade will continue to grow, we shall continue to expand our activities on behalf
of our members and the entire industry.
The International Division also handled a large share of the total export of
single strength and concentrated juices. As a result, Seald-Sweet juices are now
available in groceries all over Europe. European beverage makers use our
concentrates and entrust us annually with repeated orders based on their
complete satisfaction with our products.
The accomplishments of the International Division are possible only to the extent
of the support and cooperation of our Board of Directors and affiliated shippers.
That we have shown substantial increases in export sales reflects the high degree
of cooperation extended to us. We are grateful for this continued support and
with your help, look confidently toward the coming season.
WILLIAM G. STRICKLAND
Assi o Gen. Mgr.
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By working together, the Industrial Relations, Advertising and Merchandising
Departments have kept the Seald Sweet-Florigold story current and effective
from the grower to the consumer.
Merchandising Department members traveled 150,000 miles during the
1959-60 season. About 15,000 retailer contacts were made, as far west as
Vancouver, British Columbia, east to Campbellton, from the Eastern seaboard
west to Grand Island, Nebraska, south to Mobile, Alabama, to the northern
borders of the nation.
Members of our Merchandising Department distributed more than 40,000
pounds of colorful point-of-purchase materials to our customers, to expand
this program. Representatives have been active in virtually every major
promotion undertaken by our customers throughout the U.S. and in Canada.
Our trade and consumer advertising has enhanced the favorable image of
our brands. We returned to the national advertising field with a hard-sell,
highly popular grapefruit ad, which also formed the basis for a highly
successful series of promotions in our major distribution areas.
Industrially, The Florida Citrus Exchange continues to hold prominence in the
citrus industry. The Industrial Relations department, our information and
education facility, released hundreds of news and feature articles for
newspapers, radio and television.
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ACCOUNTING AND STATISTICAL
Customer credits are an important branch of the Accounting Department. For the
4 years ending with fiscal 1958, we collected over $100,000,000.00, charged
off $2,637.00 in uncollectable accounts. During the current season, we will have
handled collections and disbursements in excess of $25,000,000.00. All monies
received each day are forwarded to our shippers within 24 hours.
Invoicing and collecting from more than 1200 customers, paying all brokerage
and trucking charges and accounting for all proceeds of our Export and Pre-
Packaging Departments, are other duties.
The Statistical Department maintains up-to-the-minute sales and shipment reports.
Daily auction sale averages and other pertinent statistical data is available to
Management and Department Heads through this section. Both the Accounting and
Statistical Departments function under the general supervision of James Samson,
Much of this department's time this season was spent on claims and suits under the
Federal Perishable Agricultural Commodities Act, against carriers, and matters
pertaining to wage-hour problems for many Exchange members.
In April, an industry-wide investigation of fresh fruit shippers was undertaken by
the Federal Trade Commission, with a questionnaire on the Robinson Patman Act
and its brokerage provision. The industry trade practice, custom and usage of
distributing and selling citrus in pool-car lots through brokers, was involved.
INSON The FTC challenges such practice, whereas the U.S. Department of Agriculture has
approved the practice as legal and desirable, if not economically necessary, for
some 30 years. It seems a Trade Practice Conference by the industry, or a court
decision, will be needed to resolve this conflict.
GROWERS LOAN AND GUARANTY CO.
JAMES SAMSON, Executive Vice President and Treasurer
EXCHANGE SUPPLY AND SERVICE
GUY E. HOWERTON, General Manager
SEALD-SWEET PACKERS, INC.
E. H. WALES, Manager
Forty-four years of continuous service to Citrus Exchange members is an impressive
record. Loans of over $93,000,000.00 have been made. Despite increased activities
in loans to packing houses and grower members, we continue to be in excellent
financial shape. Last year alone (up to May 1, 1960) Growers Loan and Guaranty
Co. had advanced over $3,700,000.00 to its members. Membership in the Exchange
indeed has many advantages. This affiliate is but one of them.
Our cooperative should show substantial sales increases for the fiscal year ending
April 30, 1960. This increase will be in line with the increased fresh fruit shipments
of the 1959-60 season over previous years. Without much change of pattern, ship-
ments of polyethylene bags and in bulk were increased. Our thanks to the members
for their support and cooperation. We shall continue to try to justify the confidence
this cooperation indicates. Exchange Supply and Service Cooperative belongs to its
members, and it remains our function to serve the needs of this membership.
The relatively new pre-packaging operation is completing a very good season. Our
utilization has lived up to all expectations during the first season since the freezes
of 1957-58, in which we have had sufficient supplies to actually test our capability.
With the prospect of larger production in the immediate future this new channel of
distribution will, with the cooperation of our shippers, become increasingly more
important to our growers throughout the state.
FLORIDA CITRUS EXCHANGE
FRANKLIN AT OAK
LITHO U.S.A. BSA. TAMPA