MARKETING MARGINS FOR FRUITS AND VEGETABLES iV 
Marketing margins, retail prices, and farm values for fresh fruits : 
and vegetables each increased 3 percent from 1961 to 1962. 
: farmer’s share of the retail price remained unchanged at 34 percent. : 
: Margins and prices for processed fruits and vegetables decreased : 
: from 1961 to 1962. The farm value was down 12 percent, the retail : 
: price 4 percent, and the marketing margin 1 percent. The farmer’s : 
share of the retail cost dropped from 23 to 21 percent. 
In 1961-62, the margin for Washington Delicious apples sold in ; 
Chicago was up sharply from the preceding season, while for those : 
sold in New York City the margin decreased substantially. However, : 
in each market the margin was larger than the average ofthe last : 
6 seasons. Margins for California Valencia, California Navel and : 
: Florida oranges sold in Chicago in 1961-62 were all larger than in : 
: the preceding season; retail prices were higher for the California : 
: types but lower for Florida oranges. Margins for Florida grapefruit : 
sold in Detroit and Pittsburgh during 1960-61 moved in almost exact : 
: proportion to the changes in the retail price, leaving the percentage : 
: margin essentially unchanged. The margins for lemons in 1960-61 
increased for the second consecutive season, both in dollars and as : 
a percentage of the retail price. 
tye 
The 1962 index of retail prices for fruits 
and vegetables in the farm food market 
basket, both fresh and processed, was129 
(1947-49 = 100), the same as in 1961. 2/ 
The marketing margin (farm-retail 
spread) index increased -- 137 compared 
with 135 in 1961... However, both the 
index of farm value and the farmer’s 
share of the retail cost of fruits and 
vegetables in the market basket decreased 
in 1962. The farm value index averaged 
114, down 2 points from the level of 1961 
and 3 points below 1960. The farmer’s 
share of the retail cost, which remained 
at 30 percent during 1960 and 1961, dropped 
to 29 percent in 1962 (table 8). 
Fresh Fruits and Vegetables 
The retail cost to the consumer for 
fresh fruits and vegetables in the family 
market basket increased from $140 in 
1961 to $144 in 1962 (table 8) 3/. About 
$3 of the inctease went to the marketing 
system and $1 to the producer. The 
farmer's percentage share of the retail 
cost, which varied little in the last 10 
years, remained at 34 percent. 
Processed Fruits and Vegetables 
The retail cost to consumers for pro- 
cessed fruits and vegetables included in 
1/ Prepared by Victor G. Edman, agricultural economist, Marketing Economics 
Division, ERS. 
ay; The freeze which occurred in Florida in December caused price increases in 
both fruits and vegetables but occurred too late to affect reported December prices. 
3/ The market basket contains 
the average quantities of farm-produced food 
products purchased for consumption at home by urban wage-earner and clerical- 
worker families in 1952. 
= 24 = 
