50 BULLETIN 1414, U. S. DEPARTMENT OF AGRICULTURE 



necessity on the part of the growers and their cooperative organiza- 

 tions to attempt to anticipate future conditions in view of trends 

 instead of being guided solely by conditions that have passed. 



Attempts to adjust the supply which result in alternating cycles 

 of increased and reduced production are wasteful from the point of 

 view of both the producer and the consumer. Both classes are inter- 

 ested in stabilized production. The supply should be adequate for 

 the needs of the market, but not in excess of those needs. If sup- 

 plies are greatly in excess of market requirement, prices to the pro- 

 ducers are disastrously low, quantities of products are left to rot in 

 the fields, orchards, or warehouses. These conditions in production 

 usually result in unstable market conditions which in turn tend to 

 restrict consumption. 



The advantages the consumer receives from buying fruits and 

 vegetables at a comparatively low price are offset by unduly high 

 prices during subsequent years of reduced production. In fact, 

 since retail prices change more slowly than wholesale prices the con- 

 sumer does not receive the full benefit of the low prices resulting from 

 overproduction. The grower suffers, first, from unduly low prices 

 during the period of abundant production, and, second, from an ac- 

 tual restriction of consumption, caused by fluctuating prices, un- 

 stable market conditions and, in the second phase of the cycle, inade- 

 quate or uncertain supplies. 



Much has been written regarding the stabilization of distribution. 

 It seldom has been realized that this must include stabilization of 

 production. In so far as the supply of fruits and vegetables can be 

 adjusted to conform to the normal demands of the market, both the 

 producers and consumers will benefit. Some of the greatest possi- 

 bilities for cooperative associations lie in adjusting production prac- 

 tices the better to fit market requirements. 



FUNCTIONS OF THE COOPERATIVE ASSOCIATIONS 



Up to the present time the efforts of the fruit and vegetable 

 marketing organizations have been devoted mainly to preparing for 

 market and selling the products of their members. Many coopera- 

 tive associations have introduced definite savings and have brought 

 about improvements in the grade and pack of fruit and vegetable 

 products. 



The question of the stabilization of production has not been met 

 except incidentally. The Fruit Growers' Supply Co., the purchas- 

 ing organization of the cooperative associations affiliated with the 

 California Fruit Growers' Exchange, has maintained a bud-supply 

 department. By furnishing the growers with buds from citrus 

 trees of known productivity which bear fruit of good quality, it has 

 been instrumental in improving the marketing qualities of California 

 oranges and lemons. Some associations are concerned with questions 

 of fertilization, cultivation, and pruning with the avowed purpose of 

 establishing approved methods and raising the quality of the fruit 

 or vegetables placed on the market. 



This, however, is but one phase of the problem. Partly because 

 of the successful merchandising and advertising program of the 

 California Fruit Growers' Exchange, as one example, the produc- 



