PROBLEMS OF COOPERATIVE MARKETING ASSOCIATIONS 15 



eral grades are a requisite of the Federal shipping-point inspection 

 service. It is a common observation that where no grade standards 

 are recognized buyers are inclined to pay a flat price based on the 

 average value, or something less than the average value. Conversely, 

 trading on a basis of quality is the greatest stimulus to better methods 

 of production, and definite, uniform grades are the means to that 

 end. 



Shippers frequently complain of unjustifiable rejection of ship- 

 ments on account of a declining market, or for other causes. Buyers 

 claim that they are often forced to accept poorly graded products. 

 The answer to the whole problem is definite, practical grades. 



PRESENT METHODS OF GRADING AND STANDARDIZATION 



Practically all cooperative fruit and vegetable organizations are 

 attempting to grade their products. The means used and the re- 

 sults obtained, however, A T ary considerably. At present, the grading 

 of fruits and vegetables is carried out in one of three ways. These 

 are: (1) Hand selection, sizing, and packing, (2) grading, sizing, 

 and packing in plants and with equipment owned by grower, (3) 

 grading, sizing, and packing in central plants. 



Hand selection by the grower, or under his direction, is the oldest 

 form of grading. In the past it has been the principal method. For 

 certain fruits and vegetables, hand grading is necessary because of 

 the nature of the product, and its nonadaptability to machine grad- 

 ing. Wherever possible, however, producers are turning to grading 

 and sizing machinery of various kinds because of the wish to econo- 

 mize labor, to handle larger volumes of products, and to obtain 

 greater uniformity in size and grade. 



In many sections of the country grading is performed in the 

 field, or in growers 5 packing sheds. The practice is especially com- 

 mon in sections where each producer has sufficient volume to make 

 the purchase and use of equipment for sizing economical. In other 

 cases, several growers in close proximity have jointly purchased 

 equipment to handle the product of the group. Such methods have 

 generally improved the market grades of fruits and vegetables, and 

 have secured greater efficiency in the operations of grading and 

 packing. Conformity to definite standards, however, has not gen- 

 erally been secured under this system. Lack of information and 

 differences of opinion among growers concerning grade standards 

 are inevitable. Consequently, central packing houses are being con- 

 structed in many sections in order to obtain uniform grading and 

 packing (fig. 4). 



Many cooperative organizations, especially those covering a large 

 area, own and operate central packing plants. In a few instances 

 these packing houses are owned and operated by private individuals 

 with whom the associations contract for the grading and packing of 

 their products. In most cases, however, such plants are operated 

 by the organization, either directly or through subsidiary corpora- 

 tions. Frequently these plants are equipped for use as storage ware- 

 houses. 



Each local unit of a federation may have one or more central 

 packing houses, depending on the volume of its shipments. Grade 



