Summary and Conclusions 



What kind of a coordinated marketing 

 program would the majority of fruit 

 and vegetable processors prefer, and to 

 what extent would they support such a 

 program? 



To get the answers to these questions, 

 Farmer Cooperative Service sought in- 

 formation from all known cooperative 

 fruit and vegetable processors in the 

 United States and from several rice and 

 dried pea and bean associations. It asked 

 these processors about their current 

 sales practices, their problems, and 

 their ideas for an effective marketing 

 agency. 



Processors reported they were having 

 difficulty meeting the large-scale re- 

 quirements of chain stores and other 

 quantity buyers. They had other serious 

 problems related to market coverage, 

 brand competition and acceptance, rising 

 costs, and changes in consumer's pre- 

 ferences and demands. 



This study showed 53 cooperative 

 processors in 19 States were definitely 

 interested in marketing their products 

 through a joint sales agency. All custom- 

 arily sold through brokers, although a 

 number sold direct to customers when- 

 ever feasible. Development of a coordi- 

 nated sales program probably would 

 foster greater emphasis on direct sales, 

 in keeping with current trends in that 

 direction. 



Prices were usually based on com- 

 petitive situations, with attention to 

 covering reasonable costs. Over 80 per- 

 cent of the interested processors solicited 



orders for future delivery. The majority 

 considered f.o.b. sales desirable. 



Although only about half of the coop- 

 eratives reported they sold in nationwide 

 markets, more than two-thirds believed 

 a joint marketing agency should sell on 

 that basis. With careful programming of 

 distribution, processors of identical 

 products in different parts of the country 

 could effect savings in distribution costs 

 by concentrating on regional rather than 

 national deliveries. 



Initially, processors would make 

 about 50 percent of their volume (approxi- 

 mately 19 million cases of canned, bottled, 

 frozen and packaged foods) available for 

 sale through a central agency. Several 

 processors indicated willingness to use 

 the agency exclusively from the start. 

 Several others said they would increase 

 their amounts as the program progressed. 



All cooperatives interested in a joint 

 marketing program said they would be 

 willing to accept uniform quality re- 

 quirements. 



Processors showed less unanimity on 

 the question of brands. Forty-six per- 

 cent favored an exclusive central agency 

 brand; 32 percent would want to use both 

 central agency and individual association 

 brands. 



A number of processors reported 

 they did no advertising. Expenses of 

 those who did advertise ranged from 3.5 

 to 10 percent of sales. If a coordinated 

 sales agency wished to establish a 

 nationally recognized and accepted brand, 

 it would undoubtedly need to advertise. 



II 



