PROBLEMS OF COOPERATIVE MARKETING ASSOCIATIONS 47 



of orange juice at breakfast may depress the price of all of them, and 

 result in increased returns to the orange growers. 



As is shown in Table 2, however, the production of all fruits and 

 vegetables has been increasing steadily. Until the summer of 1925 

 the price level of these products, as compared with the pre-war 

 period, was below the general price level. (See Table 1.) Increases 

 in the returns received for fruits and vegetables depend on: (1) 

 .More economical production and marketing. (2) closer adjustment 

 of the supply to demand, and (3) stimulation of the demand by 

 advertising, better distribution and other means, by developing 

 new markets and new uses for the product, or by manufacturing 

 inferior grades into by-products. 



The demand for fruits and vegetables is influenced by: (1) The 

 total number of potential buyers, (2) the purchasing power of 

 these buyers, and (3) the usefulness or desirability of fruits and 

 vegetables as compared with other commodities which the consumers 

 need or wish. 



In general, it must be admitted that an increased consumption 

 of fruits and vegetables results in a decrease in the use of other 

 food products. The average person, perhaps, might eat another 

 apple or another orange each day and still consume the same quan- 

 tit} T of other foods as previously. It is more likely that he would 

 eat correspondingly less of meat, or bread, or other fruits. Nor- 

 mally, an increase in the total consumption of fruits and vegetables 

 would follow the increase in the total population. As has been 

 shown, the percentage of increase in population since 1920 is less 

 than one-third the increase in shipments of fruits and vegetables. 



Fruits and vegetables, however, have qualities which make their 

 increased use in the diet desirable. This makes it possible for the 

 producers and their cooperative associations to stimulate the demand 

 for these products and increase the per capita consumption. Con- 

 siderable progress has been made in this direction and undoubtedly 

 the limit has not been reached. In fact, efforts of this kind have 

 been confined to a few fruits, notably oranges and raisins. 



The consumption of a certain product may be increased by 

 demand stimulation, by enhancing its desirability, or by acquainting 

 prospective customers with its desirable features. Growers are 

 urged to produce varieties of fruits or vegetables which best meet 

 the consumer's desires and favor. Standardization of grades, better 

 methods of packaging, storage, transportation, and refrigeration are 

 all efforts to make the product more desirable to the consumer and 

 consequently to stimulate demand. These are all desirable activi- 

 ties, but it is necessary to appreciate that demand and consumption 

 can be expanded only within relatively narrow limits and that each 

 commodity comes into competition with other products. It must 

 be appreciated also that demand created in this way is not neces- 

 sarily permanent. The activities that created the demand must be 

 continued to maintain it. 



The fruit and vegetable growers may find buyers outside the 

 United States. The extent to which foreign countries have afforded 

 a market for American fruits is shown by Table 8 which gives the 

 exports of the principal fruits for the years 1922 to 1924. 



