6 



bership fee. In many cases the prospective member must also sign 

 a crop contract. Control of the organization is based on each mem- 

 ber having one vote, and investments are frequently financed by de- 

 ductions from current business. 



PROBLEMS OF FRUIT AND VEGETABLE ASSOCIATIONS 



Interviews with the managers of many fruit and vegetable organi- 

 zations have developed that, according to the summarized opinion 

 of these managers, there were seven principal factors that operated 

 to reduce the effectiveness of the associations. In all associations, 

 studied in detail, one or more of these difficulties was present to a 

 greater or less degree. The seven factors most frequently mentioned 

 were as follows: 



1. The volume of business handled by the association is not suffi- 

 cient to stabilize the market. 



2. Too many varieties are produced, including many varieties dif- 

 ficult to sell or of poor keeping quality. 



3. Poor packing, careless handling, inadequate storage facilities, a 

 lack of grade standards, and other difficulties are encountered inci- 

 dental to the preparation of the products for market. 



4. The association is unable to control the delivery of the product 

 or to specify the time of delivery. 



5. Sales service is inefficient. Small markets are not supplied regu- 

 larly and directly, while the large markets are often oversupplied. 

 Too many shipments are moved unsold or consigned to commission 

 merchants or auctions. 



6. Retailing methods and margins restrict the consumption of 

 fruits and vegetables. 



7. Car shortages, delays in transit, and other difficulties incident 

 to transportation are encountered. 



The solution of these difficulties, which loom largest in the minds 

 of those entrusted with the management of the marketing associa- 

 tions, should result in higher prices to the producers, primarily 

 because of the savings that may be effected, and because the de- 

 sirability of the product would be enhanced and consumption stimu- 

 lated. The cooperative associations have brought about many im- 

 provements in the grading and packing of fruits and vegetables. 

 They have influenced for the better the methods of distributing and 

 selling perishable products. They have developed by-products for 

 the utilization of products undesirable in the fresh state; and the 

 large fruit organizations particularly have stimulated consumption 

 by advertising and service to retail dealers. 



The difficulties outlined above indicate, however, that many prob- 

 lems essentially local in character remain to be solved. The order 

 in which they are listed and are here discussed indicates approxi- 

 mately the importance assigned to them by the managers inter- 

 viewed. 



VOLUME OF BUSINESS 



The difficulty most common in fruit and vegetable- organizations 

 is that the business is too small. The managers and directors gen- 



