Citation
Annual report - Florida Citrus Commission

Material Information

Title:
Annual report - Florida Citrus Commission
Creator:
Florida Citrus Commission
Place of Publication:
[Tallahassee?]
Publisher:
[s.n.]
Creation Date:
1967
Frequency:
annual
regular
Language:
English
Physical Description:
v. : ; 28 cm.

Subjects

Subjects / Keywords:
Citrus fruits -- Periodicals -- Florida ( lcsh )
Genre:
serial ( sobekcm )

Notes

Numbering Peculiarities:
Report year ends June 30.

Record Information

Source Institution:
University of Florida
Holding Location:
University of Florida
Rights Management:
The University of Florida George A. Smathers Libraries respect the intellectual property rights of others and do not claim any copyright interest in this item. This item may be protected by copyright but is made available here under a claim of fair use (17 U.S.C. §107) for non-profit research and educational purposes. Users of this work have responsibility for determining copyright status prior to reusing, publishing or reproducing this item for purposes other than what is allowed by fair use or other copyright exemptions. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder. The Smathers Libraries would like to learn more about this item and invite individuals or organizations to contact Digital Services (UFDC@uflib.ufl.edu) with any additional information they can provide.
Resource Identifier:
000863394 ( ALEPH )
01327786 ( OCLC )
AEG0106 ( NOTIS )
50063588 ( LCCN )

Full Text



























Florida Citrus Commission
ANNUAL REPORT/JULY 1, 1967 TO JUNE 30, 1968 338.1743 V 3Cr
IcqoT(W
c'. 2





A LOOK TO THE FUTURE

The 1967-68 season likely will be recorded as one of the most successful in the history of Florida citrus. The crop of fruit, regarded as small enough to create demand and yet large enough to fulfill that demand, resulted in grower returns that, in the final tabulation,
should surpass any previous season.
The exceptional sales of Florida citrus this season can be credited to Commission marketing achievements in two previous seasons. The long-range program adhered to in those years established Florida citrus fruits and products more firmly than ever, and the same policy of planning for the future is expected to produce highly satisfactory and profitable business performances during those upcoming seasons when crop sizes will reach new
heights.
Advertising messages the past 12 months reached new consumers, in-store merchandising materials guided consumers to products, and the Commission came up with another hit tune on the commercial circuit in "The Sunshine Tree." The lyrics, sung by popular Anita Bryant, the Commission's newest representative, caught on from the outset, accurately describing the more than 60,000,000 Florida citrus trees as sources of nutritional
and tasteful products.
These efforts, so effective in moving 141,900,000 boxes of fruit, the third largest citrus crop in history, will be expanded and revised many times in the months and years to come in order to market successfully all
the citrus fruit Florida will produce.






















To prepare for this future of increased crops and enlarged marketing responsibilities, the Commission has assembled a staff of specialists in all phases of promoting and marketing a food commodity. In addition, research has assumed a much larger role in the overall
program of increasing demand for Florida citrus.
The future looks bright, because the Commission is prepared to move quickly and effectively to make Florida
citrus available and acceptable at all consumer levels.


Page one








-7Lt


THE COMMIS


W. Albert Carlton Henry Cragg
Wauchula Grower Orlando Processor


0. D. Huff. Jr. (Chairman)
McIntosh Shipper


A. Tillis Edwards. Jr. Lakeland Procenor


Robert S. Kazaros )rlando Grower


William F. Edwards Dade City Processor


Chester McDonald Lakeland Grower


C. D. Newbern (Vice Chairman) J. J. Parrish. Jr. James Samson Key Scales, Jr.
Tampa Shipper Titusville Grower Tampa Grower Weirsdale Grower


STANDING COMMITTEES


Administrative and Budget
James Samson, Chairman
Robert D. Flippo Robert S. Kazaros Chester McDonald
J. J. Parrish, Jr.
Key Scales. Jr.


Fresh Fruit
J. J. Parrish. Chairman
A. Tillis Edwards, Jr.
C. D. Newbern
James Samson Key Scales, Jr.


Institutional
Advertising and Merchandising Henry Cragg, Chairman
Key Scales, Jr., Chairman William F. Edwards
W. Albert Carlton Robert D. Flippo
Henry Cragg Chester McDonald
William F. Edwards J. J. Parrish, Jr.
Robert S. Kazaros James Samson
C. D. Newbern


Export
Henry Cragg, Chairman
W. Albert Carlton
William F. Edwards
James Samson Key Scales, Jr.


Market and Economic Research
William F. Edwards, Chairman
W. Albert Carlton Robert D. Flippo Robert S. Kazaros Chester McDonald
C. D. Newbern

Processing
Robert D. Flippo, Chairman
W. Albert Carlton
Henry Cragg
A. Tillis Edwards, Jr.
William F. Edwards


Scientific Research
Robert S. Kazaros, Chairman
W. Albert Carlton
A. Tillis Edwards, Jr.
Robert D. Flippo
Chester McDonald

Sell Florida First
Chester McDonald, Chairman
A. Tillis Edwards, Jr.
C. D. Newbern J. J. Parrish, Jr.
James Samson Key Scales, Jr.

Turnpike Authority Advisory
Key Scales, Jr., Chairman
A. Tillis Edwards, Jr.
Robert S. Kazaros
C. D. Newbern J. J. Parrish, Jr.


page two


Robert D. Flippo IT-M.ill .~l





a EDWARD A. TAYLOR



STATE OF FLORIDA



FLORIDA CITRUS COMMISSION
1115 E. MEMORIAL BLVD./ P.O. BOX 148/ LAKELAND, FLORIDA 33802/ TELEPHONE 813-682-0171

EDWARD A. TAYLOR
September 16, 1968 General manager





The Honorable Claude R. Kirk, Jr.
Governor of Florida
Tallahassee, Florida

Dear Governor Kirk:

It is a pleasure to transmit herewith the annual report of the
Florida Citrus Commission for the 1967-68 fiscal year.

Each season contributes some component that sets it apart
from others, and 1967-68 was no exception, with the citrus industry enjoying the greatest returns to growers in history. This happy circumstance resulted from a manageable crop of quality fruit, a highly
successful promotional program by the Commission, and a demand
for citrus that matured during the record crop of the previous season.

The final report of the United States Department of Agriculture
placed Florida's citrus crop at 141, 900, 000 boxes of fruit, the third largest crop on record. This included 104, 000, 000 boxes of oranges
and 3Z, 800, 000 boxes of grapefruit.

As in the past, selling Florida citrus was regarded as an enthusiastic endeavor, and you and your office again deserve a great deal
of credit for efforts in behalf of the state's citrus fruits and products.
Thank you for your assistance and interest, and we appreciate your willingness to accept any role that furthers the promotion of Florida's leading agricultural product.

Sin 011-'ly yours,




Edward A. Taylor
General Manager


page ibree





00A*
A












MERCHANDISING

Contact with major food trade organizations is maintained by the Commission's 62-man field force located in principal market areas. Fulfillment of objectives included manpower transfers and promotions, plus authorization to increase the number of field men to 66.
Other objectives achieved were: (1) Stepped-up frequency of headquarters contacts with national and regional chains; (2) introduction of new merchandising techniques tailored to the respective food trade groups; (3) expanded use of the prize and premium sales incentive program; (4) development and expansion of new and unusual tie-in promotions, with particular emphasis on non-food, non-related products;
(5) better communications between headquarters and field staff, trade and industry factors; (6) upgrading ality and design of all point-of -purchase materials;
(7) closer coordination Yetween Advertising Department and advertising agency staff, and (8) more efficient warehouse operations.
Fresh and processed seminars for top merchandisers of national food chains and voluntary groups were conducted for the second year, with trade suggestions and recommendations proving extremely beneficial to the citrus industry and resulting in more effective working relationships with the merchandising field force.
Florida citrus - fresh and processed - and automobiles were jointly promoted in Atlanta, Norfolk, Asheville, Greenville, Chattanooga, and Knoxville, with saturation coverage of combination retail and institutional outlets highlighting the Atlanta and Chattanooga promotions.
Fresh Murcott demonstrations were conducted in 10 cities where sales
quadrupled in participating food markets, while excellent retail tie-in support was reported by the field staff for the first full-page Hi-Fi color advertisement for citrus.
Satisfactory results were reported on consumer research on the orange squeater and 7-cents-off Orange Coupon Test Promotion.
A live stage show, Broadway type, highlighted the annual trade luncheon tour
in 12 top markets - Atlanta, Boston, Chicago, Cincinnati, Detroit, Los Angeles, New York, Philadelphia, San Francisco, Washington, D. C., Cleveland and St. Louis. The Commission's advertising-merchandising plans were introduced to approximately 2,500 leading food trade contacts in these markets, and a filmed version of the stage show was presented to food trade groups in secondary markets.
During the peak of the season, a strong in-store promotional campaign was tied in with the Florida Tangerine Cooperative, and heavy promotional programs supported Temples and Tangelos during peak shipping periods.
The new position of Processed Product Manager was established to provide liaison between the Commission and the processor's segment of the industry, the field force and major processed food trade factors.
Trade contact calls by the field force totaled 103,541, In-store displays constructed and installed numbered 30,891, and total number of display pieces shipped exceeded 14,000,000, including 282,977 special kits tailored for major supermarkets. Prize and premium incentive promotions totaled 476.
Participation continued in the "Festival of Florida Foods" at Orlando, attended by an estimated 75,000 food trade leaders, industry factors, and visitors.


page four





FROZEN CONCENTRATED ORANGE JUICE CONSUMER PURCHASES


MARKET RESEARCH


AND DEVELOPMENT

The continuing research program which was the primary objective last year is now operating satisfactorily. This program includes consumer and trade measurements for the U.S.A. and Canada as well as advertising testing. Future additions to the program, when feasible, will cover the institutional as well as foreign markets.
While the Market Research Department continued to provide a full scale continuing information program to assist the Commission staff, the most significant developments were the promotional and advertising tests. These two projects - the first is completed and the second still in progress - will for the first time give substantial factual data for the selection of Commission marketing strategies. As a result of these studies the staff will know specifically which promotions and advertising concepts are best suited to industry needs for individual situations.
The promotional test evaluated nine separate promotional or merchandising
techniques designed to give short run sales gains for frozen concentrated orange juice. These tests took place in 18 separate markets in the Northeast quadrant of the country. Each promotional device was used in two paired markets for a period of one month with store audits conducted before, during and after the promotions. In addition to the test markets, four control cities were audited so that results of the various promotions could be compared to normal sales for the same periods. The ultimate criterion for determining which promotions were most successful was the cost per additional gallon sold.
The results of this study showed clearly that coupons, both mail and media,
as well as trade allowances and a refund offer were especially effective in generating sales for a commodity such as frozen concentrated orange juice.
The advertising concept test currently being conducted in six cities is the logical
counterpart to the promotional study. A large number of distinctly different advertising concepts were screened and the three most successful were used to create television commercials. The objectives of the advertising test are not specifically sales gains in a short period, as in the case of the promotional tests, but rather consumer attitude development towards citrus industry products.
Two other important projects conducted this year - one complete and the other in early stages - were the artificially sweetened and high density frozen concentrated orange juice development programs. A significant preference was demonstrated for sweetened juice, whether sugar-added or artificially sweetened, compared to the standard product. The marketing implications of these findings may have long-range effects on the citrus industry.
The search for a better method to provide greater quantities of orange juice
to the consumer broadened from the 8-ounce research to high density concentrate. The first stages of this work - consumer taste tests of a number of product variables - have been completed and plans for in-home usage tests of the final product are underway. The third and final phase will be a market test to determine the marketing feasibility of a "new" product of this type.

page five





ADVERTISING

Florida citrus gained new and increasingly favorable stature during the 1967-68 season through achievements of a most effective advertising program.
Among the significant developments in the creative area was the adoption of a common theme, or "umbrella," for advertising and promoting frozen concentrate, chilled, canned and fresh orange juice, using the banner, "Breakfast Without Orange juice Is Like a Day Without Sunshine." This effort capitalized upon the breakfast franchise enjoyed by orange juice and exploited the health and vitality values associated with the product. A media umbrella resulted in concurrent scheduling wherever possible for all products.
Another important step was the signing of a contract with Anita Bryant to be
advertising spokeswoman for all Florida citrus products. A Florida resident, Miss Bryant is a popular singer who is to be used to promote citrus through television and radio commercials and in personal appearances.
In planning for the future and high volume crops, the Commission initiated several testing programs which were designed and implemented by Lennen & Newell, Inc., the advertising agency for fresh and processed oranges. The first test, completed in April, involved nine different promotional techniques and provided a variety and scope unprecedented for a commodity advertiser. The actionable information obtained will be invaluable in the future in the planning of immediate movement of product at mass consumer levels.
Several tests in the creative area have been and are being conducted on
different themes for potential exploitation, ranging from 11 concept tests" - measures of campaign ideas in the form of statements featuring various product benefits - to tests of completed commercials and advertisements. Among the approaches undergoing test are taste, energy, convenience, value, health, natural Vitamin C, and variety of uses.


page six









































The year's frozen concentrated orange juice campaign opened with four-color pages in November issues' of Life land McCall's magazines, followed by additional insertions in both these publications, as well- as. schedules from December through May in Good Housekeeping, Better Homes and Gardens, Ladies' Home Journal, any American Home. Frozen concentrated "orange juice, ,fresh oranges and fresh grapefruit participated in joint promotion sponsored by General 'Mills in December issues of McCall's and Readers Digest.
Television again was the primary medium for frozen concentrated orange juice,
providing opportunity to dramatize the campaign theme" nationally and on a selected market basis. An 11-week schedule, begun in mid-January, covered 33 high-'volume markets across the country, and was followed by a six-week spot radio and then a six-week network and spot television campaign featuring Miss Bryant.
Chilled orange juice utilized national magazines exclusively, running from January through June in McCall's, Better Homes and Gardens, Ladies' Home Journal, American Home, Family Circle, and Woman's Day.
Canned orange, juice -received strong localmarket support through 815 Keystone Network radio stations in the southern and north-cntial Iegions: of the country, moving two flights of spot announcements from mid-January to mid-May, and a five-week passage that began during March.
A six-week radio schedule covering 15 major markets with a starting date in early
January initiated the campaign for fresh oranges, and was followed by a spectacular Hi-Fi advertisement in April editions of 41 -newspapers. This advertisement received excellent reaction from the trade and industry.
Tangerines were advertised as' the "Zipper-Skin Fruit" on radio in 10 key markets during- the' last two-weeks- of November.
A great deal of effort'was supplied -to trade advettising; with the 12-ounce
container of frozen concentrated, orange juice receiving much emphasis. Trade publications in December contained a -four-page insert brochure promoting the Commission's National Display Contest.


page seven





The theme for advertising fresh and processed grapefruit was "Shape Up With
Grapefruit From Florida," capitalizing upon the broid consumer interest in weight watching. Newspaper advertisements in 15 markets during November heralded the arrival of fresh fruit, a four-color campaign in Sunday supplements began in January in 20 major markets. Advertisements for fresh grapefruit ran in January, February and March, for grapefruit juice in February, March and April, and for sections in May and June. Three additional markeis.in the southwest wire added to the schedule for juice and sections.
A special pop-up coupon offering grapefruit spoons was run in conjunction with a frozen concentrated orange Juice advertisement that appeared in Better Homes and Gardens during January and in McCall's in February.
Grapefruit consumption in markets covered by advertising showed substantial increases over markets where there was no advertising support.
The Commission's food publicity program is geared to keeping citrus products
before the public through magazines, Sun( ay supplements, newspapers, cookbooks, radio and television. To accomplish this, new recipes and new uses for citrus are constantly developed in the kitchens of Dudley-Anderson-Yutzy, the agency which has handled Commission publicity in this area for more than 20 years.
More than 500 large daily newspapers and 3,000 smaller dailies and weeklies were furnished black and white photographs and recipes each month during the fiscal year.
The Florida citrus story was unveiled to representatives of the nation's top 150 metropolitan dailies during the 25th annual Newspaper Food Editors Conference in the fall, an event which opens with a breakfast sponsored by the Commission.
Food publicity during the year was closely tied in with special advertising promotions. For instance, recipes were developed as principal feature of the Commission portion of the General Mills Christmas promotion, and special recipes for blenders were created and published for a citrus promotion in Chicago.
One of the major projects of the year has been development of an all-Florida citrus cookbook which includes favorites submitted by wives of members of all segments of the citrus


page eight










Florida peopl eat nm gnpfri

dohaayoee in the we&d












And wve gttefigue

to P=ft

FW-1






&ekatwithout Ornie juice i e a day wt u a






industry. The carefully tested recipes will be colorfully illustrated in a prestige book to be published soon.
The Commission is represented by DAY by attendance at and participation in
national and local meetings of the Home Economists in Business, the American Women in Radio and Television, the Public Relations Society of America, the National Home Fashions League, and other leading food and press groups.
The promotion of Florida citrus within the state by the Sell Florida First Program
received a tremendous boost in the form of the Rolling Orange, an 11-foot-high plastic replica placed on a van body. The vehicle, which served as a base of operations for Miss Orange juice Break, traveled 11,000 miles following a debut in January at the AFL All-Star game in Jacksonville's Gator Bowl. The Rolling Orange appeared at attractions from Pensacola to Miami and was a splendid prop for one-minute interviews in color conducted with dignitaries and other notables and telecast by 16 Florida television stations.
This was one of the many techniques employed to induce Florida eating establishments to make more citrus available and at more attractive prices.
Car plates promoting an "Orange juice Break" were distributed to operators of
automobiles on a continuing basis, and 1,000,000 directories containing stamps good for a complimentary serving of orange juice were offered visitors who arrived in the state by automobile or aircraft. The stamps were redeemed at more than 400 fast service restaurants which joined the program to encourage greater use of Florida citrus fruits and products.
Orange juice was promoted further by messages which appeared on 132 billboards
along major tourist routes, and the Florida State Turnpike Authority provided a valuable assist to the efforts with the installation of 14 permanent Orange juice Break billboards on the turnpike, the only messages on that heavily-traveled artery other than directional signs.
A third printing was requited for the Famous Florida Chefs' Favorite Citrus Recipes book, published in 1965 as a collection of recipes used by chefs in leading Florida resort hotels and restaurants. The book now is distributed by shippers of fresh and processed citrus who feel the recipes encourage the use of more Florida citrus.


page nine





STATEMENT OF RECEIPTS AND EXPENDITt


CITRUS ADVERTISING TRUST FUND


Cash Balance July 1, 1967 RECEIPTS: From All Sources
TOTAL AVAILABLE EXPENDITURES:
General Administrative
Mailroom & Duplicating Salaries
Furniture & Equipment
Processed Rebate Program
General Revenue Fund
Transportation Problems
Economic Research Scientific Research
Market Research & Development
Retirement & S. S. Matching Public Relations & Publicity Marketing Department:
Salaries & Expenses Consumer Advertising:
Advertising Media
Professional journals
By-Products
European Program
TOTAL EXPENDITURES
CASH BALANCE JUNE 30,1968


$ 3,992,695
9,498,477
f13,491,172










$ 2,136,464


$ 251,363
45,568 20,689
126,274 167,712 76,696 112,847 476,385
403,291 101,923 354,716



3,474,970 330,250 100,892 540,788


3,146,251


4,446,900 $ 9,729,615 $ 3,76-1,557


SPECIAL CITRUS CAMPAIGN FUND Cash Balance July 1, 1967 RECEIPTS: From All Sources
TOTAL AVAILABLE DISBURSEMENTS:
Coupon Redemption
CASH BALANCE JUNE 30,1968


S 37,759
268
38,027

38,027
-0-


ORANGE EMERGENCY RESERVE FUND


Balance Forward July 1, 1967 RECEIPTS:
1967-68 Season
Investment Earnings
TOTAL AVAILABLE DISBURSEMENTS:
Advertising
General Revenue Fund
Rebate Payments
BALANCE ON HAND JUNE 30, 1968


$ 3,420,765

1,958,920
158,665 $ 5,538,350



2,243,237 $ 3,295,113


2,187,285
42,244 13,708


Page ten





S FOR FISCAL PERIOD July 1, 1967 to June 30, 1968


GRAPEFRUIT REBATE FUND Balance Forward July 1, 1967 RECEIPTS:
1967-68 Season
Investment Earnings
TOTAL AVAILABLE DISBURSEMENTS:
Rebate Claims
Transfer to Citrus Advertising Trust Fund
TOTAL DISBURSEMENTS
BALANCE ON HAND JUNE 30,1968

INCENTIVE BRAND ADVERTISING FUND Cash Balance July 1, 1967 RECEIPTS:
Investment Earnings
1967-69 Season
TOTAL AVAILABLE DISBURSEMENTS:
Rebate Payments $ 3,440,4
General Revenue Fund 81,7
The ACB,. Inc. 82,9
Data Processing Expense 5,9
Transfer to Citrus Advertising Trust Fund 1,111,4 BALANCE ON HAND JUNE 30,1968


$ 100,000

100,000
1,916
$ 201,916

-0
lol,916 101,916
$ 100,000

(PROCESSED)
$ 2,567,206

119,322
3,970,451
$ 6,656,979

73
95
03
86
35 4,722,592
$ 1,934,387


BRAND ADVERTISING RESERVE FUND (FRESH)
Cash Balance July 1, 1967 $ 288,805
RECEIPTS:
1967-68 Season 298,383
Investment Earnings 5,769
TOTAL AVAILABLE 592,957
DISBURSEMENTS:
Transfer to Special Sales Promotion Fund $ 206,189
Rebate Payments 122,048
General Revenue Fund 6,083
TOTAL DISBURSEMENTS $ 334,320
BALANCE ON HAND JUNE 30,1968 V -25 8-, 6 37


SPECIAL SALES PROMOTION TRUST FUND Cash Balance July 1, 1967 RECEIPTS:
1967-68 Season
Investment Earnings
Transfer from Brand Advertising Reserve Fund
TOTAL AVAILABLE DISBURSEMENTS:
Rebates
General Revenue Fund
Advertising
TOTAL DISBURSEMENTS
BALANCE ON HAND JUNE 30,1968


(FRESH) $ 227,308

298,383 10,747 206,189 $ 742,627

S 143,316
6,183
197,337 $ 346,836
$ 395,79i


page eleven





PUBLICITY

The Publicity tDerrtment expedited scores of words and pictures during the season in support 0 citrus featured in a variety of events, ranging f rom proposed participation in the Disney World entertainment complex in central Florida to the promotion of citrus during the Republican National Convention scheduled for Miami Beach during August of the next fiscal year.
Other activities requiring special attention from the department included creation of a program for the annual food trade luncheon series in major market areas, the fresh fruit and processed products seminars, the Florida Citrus Open golf tournament at Orlando, a television show for the Florida Citrus Showcase at Winter Haven, and the inauguration of a Commission citrus program for cable television networks in central Florida.
A clever combination of filmed and live entertainment composed the presentation of advertising and merchandising plans for the season which was enthusiastically received by food trade factors attending the luncheon series. The entire show was filmed for later presentation to other leading markets.
Merchandisers who attended the two seminars were impressed with the scope of the programs and with the recommendations offered by the citrus industry and the food trade.
Citrus queens, an abundance of orange juice, orange trees, citrus colors
and an avalanche of publicity helped make the Florida Citrus Open another outstanding success, and citrus played an equally important role in the popular daytime television show, "You Don't Say," which was transported to Florida for a week of taping sessions. Television coverage of the golf tourney and the Showcase feature provided nationwide exposure for Florida citrus.
The Commission signed a letter of interest in regard to a permanent exhibit in Disney World, opening the door to further negotiations that can result in an excellent promotional vehicle for Florida citrus. Disney Enterprises officials are to return with preliminary plans for the exhibit and will prepare a detailed blueprint of the display if the Commission contracts to participate in the entertainment extravaganza.
Regardless of the theme selected for the Republican Convention at Miami Beach,
citrus is likely to be one of the features to be remembered, because the Publicity Department began planning early for ways and means of securing citrus a spot of prominence in the big show. Indications are the event will receive the greatest amount of coverage ever accorded in occasion, and opportunities for presenting Florida citrus appear unlimited. Among citrus-flavored arrangements were an inflated orangecolored elephant, orange blazers for Florida's delegates, an orange carpet for the Convention Hall's center aisle, orange juice for press and party dignitaries, orange balloons to spill from the ceiling with the acceptance speech of the party's choice for president, and live orange trees as decorations both inside and outside principal buildings.
A wide variety of black and white prints and color photographs was produced by the photographic laboratory for publicity purposes.
Page twelve





INTERNATIONAL


MARKETING

The international marketing operation of the Commission encountered number of formidable situations in overseas markets during the 1967-68 season. Most of the circumstances were created by increased com ' petition from other countries and from other Products, and by the prices of Florida citrus products, which spiralled from a low level the previous season to the highest position in years.
The overseas marketing program of the Commission was instrumental, however, in dramatically increasing exports of citrus and in contributing to increased returns for the grower.
Exports to Europe a year earlier totaled less than one per cent of Florida's citrus crop, whereas citrus exports during 1967-68 exceeded six per cent of the crop, a notable achievement, since the increase occurred at a time when prices paid by overseas consumers for Florida citrus products were at a peak. The statistics attain even more significance in light of the fact that citrus offered by competing nations was available at considerably lower price levels during the same period.
The success of the Commission's Three Party Program in promoting and moving
greater amounts of citrus is reflected in the enthusiasm exhibited by foreign distributors for the marketing arrangement. The program calls for equal financial responsibilities by the foreign distributor, the Commission, and the United States Department -of Agriculture's Foreign Avicultural Service in promoting Florida citrus. Participation in the program climb d to-23 plans in nine countries during the season, and prospects are for 32 plans in the next Ascal year.
To continue the effective operation of foreign marketing efforts, an increase in departmental staff was necessary, organizational letters were developed, distributed and implemented, and the Commission engaged the services of Norman, Craig & Kummel, Inc., an. international marketing supervisory firm. The development of foreign markets has been profitable to all concerned but is regarded as a necessary supplement for those seasons in the future when Florida's citrus crop will include 200,000,000 boxes of oranges. .The potential, for profit din be maintained through an increasingly successful export program.
Price and. supply are the most critical factors in supporting overseas marketing efforts and provide problems for the Commission program. Transportation is another important factor, as are tariff and non-tariff barriers placed by many countries against imports from other areas. These problems are being solved individually by the Commission in an effort to move Florida citrus fruit and products into every potential market lace around the globe.
he promotion of Florida citrus through the Three Party Program reached new
heights in Europe with record amounts of advertising and merchandising. The cooperative program permitted greater use of these promotional tools through increased budgets and every participating distributor was required to identify the advertised product as originating in Florida. This requirement has resulted in an effort to fashion an identifying mark -or symbol to be used on all citrus products promoted in the Three Party Program.
page thirteen































INSTITUTIONAL AND

SCHOOL MARKETING.

Activities in the Institutional and School Marketing Department were wide and varied
during 1967-68, with, promotional porams directed to the leading food service operators
in the United States and Canada. Twroghundred and sixty-five sales incentive programs
resulted in a 74.9 per cent increase in sales of citrus products, and 945 juice dispensers
were installed as a consequence of these programs.
As a result of the Hartford Test,' specially designed 7-ounce glasses are available
at a reduced cost to the citrus industry. The Hartford Test also proved menu tip-ons an effective means of increasing sales of Florida citrus products and the department
prepared and is now distributing new tip-ons to commercial restaurants.
In an effort to determine the -most efficient -methods of promoting within a given
market, a special. test. was conducted in the city of Richmond, involving specially
designed point-of-sale material, newspaper. advertising and a sweepstakes program directed to
the consumer, with participation by waitresses.
IFor the first time, the Commission conducted an extensive trade advertising
program directed to all facets of the food service industry, with emphasis on the growing
institutional and- mass feeding fields. The trade press was serviced with photographs,
recipes, and use and serving suggestions, while numerous live demonstrations
were staged for school, hospital and institutional workers.
IOne of the most popular innovations in this field was a Medicare 'Kit for use in
nursing homes authorize dlunder recent legislation to receive federal aid when meeting
certain nutritional standards. tVery little material is available to dietitians in this area, and
the Commission contribution has led to the request for much more information.
Attendance at meetings of the American Home Economics Association, American
Dietetic Association, American School Food. Service Association, National Restaurant
Association, Institutional Foodservice Manufacturers Association, and Nutrition Councils keeps
department field men abreast of new trends and insures that prepared materials meet vital
needs. Attendance helps in other ways also, as illustrated by the fact that the department
received more than 3,000 requests for materials as a result of participation in the
convention of the American Home Economics Association.
One of the outstanding success stories of the year comes from San Francisco where
division manager George Ward, working with leading vending and in-plant
feeding operators, conducted a 'special promotional program. in 21 plants which resulted
in an 80 per cent increase in sales of Florida orange juice. Expansion of this
type of activity is planned for next year.
The utilization of new outlets for materials aimed at young people proved the
highlight of the year's educational program.

page foufrteen





Produced was a booklet for teenage boys, which was requested by educators following the success of the teenage girls' pamphlets, "The Beauty Habit" and "The Road to Beauty." Brightly written and illustrated, with copy in the current young idiom, the booklet entitled "How to Get in Shape and Stay There," contains good grooming and nutrition information, plus the Marine Corps physical fitness exercise, and a chart for scoring in a physical fitness test.
A pilot project was staged by the Marine Corps among schools in the metropolitan New York area, with nearly 250,000 of the Commission booklets distributed as guidelines for exercises and the fitness test. The program was highly successful and received a great deal of publicity. The project is to be broadened next year, insuring a good route for Florida citrus to travel in reaching students in thousands of schools with a message of nutrition.
Extensive work in cooperation with United States Department of Agriculture nutritionists and School Lunch Program officials resulted in the development of special recipes for the use of frozen concentrated orange juice made available to schools. The recipes were widely distributed and helped lunch room personnel in providing varied dishes involving the juice.
The Commission played a prominent role in the pilot breakfast program conducted by the United States Department of Agriculture's School Lunch Division. This project involved breakfast for 11,000 students and was highlighted by an inspection tour by Secretary of Agriculture Orville Freeman.
Participation by the Commission in a Poverty Program project in Chicago schools resulted in each child receiving a Florida orange. New printed materials were developed, many for pre-school and elementary ages, in consultation with an advisory committee of educators, school lunch directors and government officials involved in expanding nutrition education. More than 1,691,460 pieces of these educational materials were distributed in the past year.
Through special grants, the Commission again sponsored health education workshops at three state teachers' colleges in Massachusetts, and a six-state school lunch workshop at the University of Georgia. At the workshop, Herbert Rorex, Director of the School Lunch Division for the United States Department of Agriculture, stressed the need for better nutrition education projects, both in and outside the nation's schools. Through such projects, the Commission has earned a reputation for good public service, reflected in broad use of Commission teaching aids and in increasing consumption of circus products within the schools,
page fifteen





DEC JAN FED A,, IAY I 11N' I' 'I.
.
F FCOJ (FU ) -1--1-.--1
0-,b- 1966 --- 1967.


E ECONOMIC RESEARCH

The function of the Commission's Economic Research Department is to attempt
solutions to spontaneous and chronic economic problems affecting
the Florida citrus industry. Requests for assistance in this area usually originate with industry groups, as well as with individual researchers. A relatively small
team of economists is employed by the Commission for this purpose and located at the
University of Florida in Gainesville.
Projects cover a wide range of economic topics, with particular emphasis upon
marketing studies. The specific subject areas of work in the 1967-68 season were: Demand
and substitution relationships, futures trading, consumer preference, merchandising,
labor standards, market allocations, wholesale-retail margins, supply management, and longrange production estimates.
A new publication, Economic Research Report, was inaugurated during the season
to provide a brief summary of the major research findings of the department. The following
is a summation of some of the more important projects completed during the season.
Optimum Allocations of Tangerine Shipments by Size of Fruit: The larger the volume
of tangerines available for shipment, the greater the proportion of smaller fruit (size 210's)
which may be shipped, up to a maximum of 15-20 per cen't. This allocation holds for
the overall tangerine marketing season, except for a two-week period beginning prior to the
Christmas holidays.
Wholesale-Retail Marketing Margins for Fresh Citrus: The absolute dollar amount
of the wholesale-retail margin does not change appreciably from one crop season to the next.
When expressed as a percent of retail price, however, the margin appears to vary
considerably over time. This occurs because of variations in retail fruit prices.
Future Market for Frozen Concentrated Orange juice After One Year: Interest in
trading futures contracts increased rapidly throughout 1967 and in January 1968
over 8,300 contracts were traded. This one month of trading represented about
20 million boxes of oranges, or 28 million gallons of 45 degree Brix concentrate. Although
prices in the futures market were much lower than cash prices during the first few
months of trading in 1966 and January of 1967, cash and futures prices converged in
February of 1967.
Polyethylene or Vexar-Which Type of Bag Does the Consumer Prefer: Even
though a greater proportion of consumers preferred Vexar to poly, poly was readily substituted
when Vexar was not available. Those preferring poly also substituted Vexar when poly
bags were not available. Because of an acceptance of either type of bag, Florida's fresh citrus
shippers many consider factors other than consumer preference in deciding whether
to package oranges in both bags or in only one type.
Titles of other research completed included: An Evaluation of the Merchandising
Program of the Florida Citrus Commission; Demand Relationships for Fresh Lemons and Frozen Concentrated Lemonade; Synthetics, Substitutes, and Food Marketing;
Estimation of Florida's Orange Production Over the Next 15 Years by the Random Sampling
Technique; Projection of Florida Orange Production, Sales Potential, and Surplus;
Proposal for Financing the Florida Citrus Commission, and Supply Management.
page sween





.4


SCIENTIFIC RESEARCH

The past year saw the installation and successful operation by one of the State's largest processors of an essence recovery unit, based on the design of the Commission-Citrus Experiment Station pilot plant essence recovery system. The commercial unit recovered essence from approximately one-half of the concentrator's production. Advice and consultation was also provided to other processors contemplating installation of essence systems.
Consumer test packs of (1) frozen concentrated orange juice containing essence, rather than the customary "cutback" juice; (2) canned orange juices with several fruit and processing variations, and (3) frozen concentrated orange juices unsweetened, sweetened with sugar, and with cyclamates, were produced for evaluation by the Market Research and Development Department.
Heat processed and chilled citrus salad gels were produced, using either whole or crushed grapefruit and orange sections; grapefruit products were embittered, using a commercially produced enzyme, and individually frozen grapefruit sections and orange rings were successfully packed.
Three experimental post-harvest fungicides were found to be generally more effective in controlling decay in fresh citrus fruits than a standard sodium o-phenylphenate plus diphenyl pad treatment. In addition, two experimental fungicides were found to be effective in controlling post-harvest decay when they were applied as pre-harvest sprays one to two weeks prior to harvest.
Work was continued on the mechanization of citrus fruit harvesting and on abscission agents to loosen fruit on the tree. Five-year picking tests on Hamlin and Pineapple oranges and Marsh grapefruit showed that the tree shaker did not reduce tree yields as compared to hand picking. A commercially developed fruit pick-up machine capable of handling 500 pounds of fruit a minute was evaluated and purchased.
The research on pounds-solids centered around the development of an automatic Brixometer, and the determination of the proper setting for the official state restroom extractor.
Orange peel pigments were successfully extracted and concentrated to yield a product easily incorporated into orange juice concentrate as a natural color fortifier. Soluble solids and titratable acid were shown to vary widely from stem end to blossom end, and from the outside towards the core in both oranges and grapefruit. At 70 degrees Fahrenheit and 70 per cent RH, commercially waxed Hamlin oranges showed a weight loss of three per cent per week over a three-week period.
In the studies on grapefruit acidity the work on the enzymes malic dehydrogenase and citrate synthase was completed, and it was found that Nethylmaleimide and sodium fluorocitrate effectively prevented citric acid formation in vitro. A number of promising inhibitors are being field-tested on mature grapefruit trees.
Cooperative research with the United States Department of Agriculture on foamdried citrus products was continued, and consumer acceptance testing indicated most grapefruit users liked the instant grapefruit juice, although there were indications a sweeter product would be better liked.


page.reventeen





I

00
I - FI-73237s











W'






TRANSPORTATION

During the past season, the Growers and Shippers League of Florida was busy in behalf of the Commission opposing various increases in freight rates and charges proposed by
the transportation agencies, and there is every indication the citrus industry will
continue to be faced with such carrier requests.
A general increase of about three per cent in freight rates and charges requested by the rail lines throughout the country in 1967 was opposed by the League, and although
allowed to become effective August 19, 1967, by the Interstate Commerce Commission, no increase was allowed on 100-pound citrus fruit rates to points in Official, Western Trunk Line, and Southwestern Territories; an extension of only $22 per flat car was allowed
on TOFC rates on fresh citrus fruit to destinations in California and Arizona; and a
maximum increase of two cents per 100 pounds was allowed on canned and frozen
citrus products shipped to destinations in Southern Territory.
In March, 1968, the rail lines throughout the country again requested a general increase, including a five per cent expansion in rates on fresh citrus fruit and a six per cent
boost in rates on canned and frozen citrus products. The League opposed these advances,
and the ICC suspended the requests, although granting an overall increase of three
per cent on an interim basis, effective June 24, 1968, with no increase to exceed the
original requests.
A railroad proposal to increase piggyback rates on fresh citrus fruit by 15 per cent on two-trailer shipments and by 25 per cent on single-trailer shipments was withdrawn,
and in lieu, a 12 per cent increase in rates on both types of shipments was approved
and became effective January 31, 1968.
The court suit filed by the League to determine railroad liability on market decline claims on piggyback shipments of fresh citrus fruit was argued before the District Court of
Appeals, which upheld the verdict of the District Court in favor of the shipper and
also denied a petition for rehearing filed by the railroad.
A proposal to advance detention charges on mechanical refrigerator cars held beyond the 24-hour free time to $12.50 for 12 hours, or fraction thereof, for the first 10 days
and $50 for 12 hours, or fraction thereof, thereafter until the car is released to the carrier, was opposed by the League before the National Perishable Committee.
The League was successful in having objections registered and the proposal will
be considered at a later date.
A proposal of the rail lines to increase the minimum weights and level of rates on canned goods, from, to, and within Southern Territory was opposed by the League,
and the proposal was withdrawn.
Numerous proposals to increase truckload and less-than -truckload rates on frozen and chilled citrus products were filed by the motor carriers, and the League was successful
in keeping increases to a minimum, or in maintaining the existing level of rates, although
at higher minimum weights.
Faced with the possibility of a greatly increased production of citrus pulp, the ByProducts Advisory Committee requested the League to prepare a proposal seeking a reduction
in rail rates on citrus pomace to destinations in the Southern states. A proposal to
accomplish this has been prepared by the League and is now under consideration by the
origin rail lines.

page eighteen





ADMINISTRATIVE

Ever mindful of responsibilities to the Florida citrus industry, the Commission continued in 1967-68 to promulgate regulations beneficial to the industry, adopting 32 amendments to 15 regulations and writing one new regulation. A number of amendments brought regulations in line with laws enacted by the 1967 Florida Legislature, including provision for mandatory installation of a standard juice extractor in fresh fruit houses for more efficient and uniform maturity testing; establishment of a special Industry Experimental Container Evaluation Committee to conduct and evaluate tests of new containers; and permission for Florida citrus products for export to be labeled in a manner competitive with similar products sold in foreign countries. In addition, the tolerance for oranges and grapefruit for export was fixed at up to 10 per cent below minimum domestic standards, permitting the allocation of a larger part of the crop for export at an earlier date.
To promote increased participation in the Advertising Rebate Program for processed products, the Commission extended the deadline for customers of taxpayers to file claims from 90 to 180 days after purchase of product.
A nationwide survey conducted by the Commission on chilled orange juice labels
revealed that out of a total of 149 brands picked up, 68 brands packed outside Florida had one or more labels in violation of current regulations. A major campaign was launched, calling the violations to the attention of federal and state food and drug officials and assistance was solicited from carton and bottle cap suppliers to correct improper labels for this product. Good cooperation was received and much progress reported.
Administrative staff achievements in implementing the State of Florida's Uniform job Classification and Pay Plan and related programs resulted in an invitation to participate on an advisory committee to the State Personnel Board in drawing up rules and regulations for one of the state's new programs.
In administering fiscal policies of the Commission, the Administrative Department was charged with bookkeeping responsibilities for seven funds with a combined revenue of approximately $15,000,000. With a carryover of about $10,600,000, a total of $25,6ooooo had to be budgeted and accounted for by the comptroller's office.
Expenditures approved by the Commission during the fiscal period amounted to approximately $16,000,000, and a total of $3,700,000 was spent in the payment of claims under the provisions of the Incentive Brand Advertising Rebate Program for Processed Orange Products.
The investment of temporarily idle funds during the fiscal year resulted in interest earnings of $426,209.
The License and Permit Department received and processed 1,684 applications for citrus dealer licenses. After careful appraisal, 1,650 were approved by the Commission and subsequently issued by the Commissioner of Agriculture. Thirty applications were withdrawn and four specifically denied. Of 2,170 permits issued, 1,718 were gift package shipments. In addition, permits for interstate shipment of citrus for processing -increased from 377 during 1966-67, to 427, up 14 per cent. Other activities included 13 permits for shipment, sale, and pack of frozen concentrated orange juice with sweeteners added; eight for charitable purposes; three for test shipment of experimental pack of frozen concentrated orange juice.
The Commission mailroom showed an 11 per cent increase in completed work, with only a five per cent increase in costs. The volume of outgoing mail continued to climb, with an all-time high of 570,000 pieces representing an increase of SY2 per cent over the 1966-67 season.


Page nineteen





page twenty