RISKS FROM PERISHABILITY 



147 



California Raisins. The California Associated Raisin Com- 

 pany distributes its own product very widely. It was estimated 

 that the producer, on the 1917 crop, received 61.2 cents of the 

 consumer's dollar. 



California Almonds. The California Almond Growers dis- 

 distribute their crop in very distant markets. On the 1918 crop 

 it was estimated that the producer received 53 cents of the con- 

 sumer's dollar. 



Risks in Price Fluctuation. The middleman, dealing in perish- 

 able produce, is often spoken of in the press as a "food speculator." 

 In a strict sense of the term, every owner of a perishable product 

 is a speculator, since he has thereby assumed the risk incident to 

 price fluctuation and incident to loss by decay. 



Few producers realize the actual range of price fluctuation in 

 one season on the common forms of perishable farm products. 

 The following table, compiled in one northern city, is believed to 

 be typical for the whole United States. 



Price Fluctuations (Unhedged Products), Minneapolis Central Market, Season 



of 1907 



(From an unpublished manuscript, The Growing and Marketing of Small Fruits and 

 Vegetables, by D. W. Frear.) 



The smallest fluctuation in price for the season was 100 per cent; the largest, 900 

 per cent. 



Risks from Perishability. According to a careful study made 

 by A. B. Adams, 6 perishable farm products show losses from decay 

 of thirty-five to forty per cent. Hence from 30 to 40 per cent of 

 the margin between farm prices and retail prices of products 

 passing through the middleman's hands is due according to this 

 study, to losses from decay. This margin goes to pay for goods 



6 Adams, Arthur B., Marketing Perishable Farm Products. 



