ita basis is five times the level of 30 years ago. This is reflected 

 in increased consumption of fruits and vegetables. Consumer preferences 

 have resulted in shifts to convenience foods and to new products. This 

 has been reflected in increased processing. Thus our markets in total 

 are larger not only because of more people, but because of the effect 

 of urbanization. But more significantly, these markets are constantly 

 changing because of the wants and preferences of people and larger in- 

 comes to satisfy these desires. 



Changing Patterns of Consumption and Market Structure 



Per capita consumption (on a farm weight basis) of fruits has in- 

 creased nearly 10 percent over the past 30 years, while that for vege- 

 tables has increased by 25 percent. However, there has been a material 

 shift from fresh use to processing. For example, consumption of all 

 fruits in fresh form has been reduced by one -third, while that in pro- 

 cessed form has more than doubled. 



There have been many changes in wholesale distribution over the 

 years. Even though the volume of fruits and vegetable marketed has 

 been increasing, a smaller volume is being handled by terminal market 

 wholesalers. Direct buying by large retail organizations--both corpor- 

 ate and voluntary chain- -has had a sharp impact on the wholesale markets. 

 The decreasing volume handled has been reflected in a sharp reduction in 

 the number of wholesaler firms. Wholesalers have moved toward providing 

 specialized services for customers, such as institutional outlets and 

 groups of retailers, either wholesaler-sponsored or where the retailer 

 group sponsors the wholesaling operation. The importance of auctions 

 has been declining. A major trend in wholesaling has been the reloca- 

 tion of terminal markets from the old center city locations to suburban 

 areas, where more adequate facilities can be built. 



About two-thirds of the fresh fruits and vegetables move to market 

 by motor truck. This is in sharp comparison to a generation ago when 

 most shipped-in supplies moved by rail. Trucks have been steadily in- 

 creasing their share of the produce transportation business. More rapid 

 service and direct delivery are among the major advantages of truck ship- 

 ments. Much of the shift to trucks has been in short and medium haul 

 business. However, trucks are gaining in importance even on the long 

 haul from Pacific to East Coast. 



The food retailing industry under the various pressures of changing 

 technology and competition has moved in the direction of general, as 

 contrasted to specialty food stores, of larger stores, and of larger 

 firms. The modern supermarket is made possible by the mobility of con- 

 sumers, arising from the automobile and improved highways. In 1965, 

 there were 227,000 grocery stores, barely half the M-M-0,000 in existence 

 in 1935. Sales were nine times those of thirty years earlier. Average 

 dollar sales per store increased eighteenfold during this period. The 

 growth in number of items handled has been spectacular, increasing from 

 less than 900 in 1928 to 3,000 in 1946; to 4,700 in 1955; to 7,100 in 

 1965. 



