ECONOMIC CHANGES IN MARKETING FRUITS AND 



VEGETABLES IN THE UNITED STATES 



Excerpts from 



Remarks by Floyd F. Hedlund at the 



XVII International Horticultural Congress, 



University of Maryland, College Park, Maryland, 



August 19, 1966 



(Every fruit grower knows that the marketing of fresh fruits and vege- 

 tables has changed greatly in recent years, and is continuing to change. 

 This presentation by Mr. Hedlund discusses the national economic changes 

 that are occurring in marketing, and should give New England growers a 

 cleai^er view of the changes occurring in their markets Editors.) 



The food industry--the business of feeding our people --is this 

 country's largest industry. The food bill in the United States amounts 

 to $85 billion annually. Fruits and vegetables are a significant part 

 of the food business. Nearly 25 percent of retail grocery store sales 

 of food are accounted for by fresh and processed fruits and vegetables. 

 Each person in the United States on the average consumes about 500 pounds 

 of fruits, vegetables, and potatoes each year. 



The United States farmer; during the first quarter of this year, re- 

 ceived--on the average for all products--41 percent of the consumer's 

 food dollar. The farm to retail spread, amounted to 59 percent. For 

 fruits and vegetables, the farmer received 27 percent. The remaining 

 73 percent of the consumer's fruit and vegetable dollar covered all mar- 

 keting and processing costs. This spread reflects the high degree of 

 processing, packaging, refrigeration, and special handling required in 

 the marketing of fruits and vegetables. 



Production Picture 



Eight million acres in the United States are devoted to the pro- 

 duction of horticultural commodities. These include nearly three mil- 

 lion bearing acres of fruit and tree nuts. Last year's production of 

 fruits and vegetables total 55 million tons--15 million of potatoes and 

 sweet potatoes, nearly 20 million of vegetables, and 20 million of fruit 

 and tree nuts. Over the years, production of these commodities has 

 trended upward, exceeding slightly the increase in population. 



Cash receipts by farmers from fruits and vegetables total $4 billion 

 a year, or more than 10 percent of the total of $37 billion from all 

 agricultural production including both crops and livestock. Receipts 

 from fruit and tree nuts totaled about $1.75 billion, and those from veg- 

 etable crops $2.25 billion. 



A generation ago, a typical farmer produced food and fiber for 10 

 persons--today for 37 persons. Disposable personal income on a per cap- 



Floyd F. Hedlund, Director, Fruit and Vegetable Division, Consumer and 

 Marketing Service, U.S. Department of Agriculture, Washington, D.C. 



