AN APPRAISAL OF SELECTED FARMER-CONTROLLED 

 FIRMS IN NEW JERSEY'S FRESH FRUIT 

 AND VEGETABLE MARKETING INDUSTRY 



by Richard S. Berberich, Crops Division 

 and David Volkin, Cooperative Development 



Farmers today must meet the needs of mass merchandising and direct 

 buying or be bypassed by others willing and able to do soo We see. 

 increased need for larger and stronger cooperatives to help solve 

 the problems of the market place. As farmer's market power relates 

 directly to the expanding market of large buyers, the required bar- 

 gaining strength can be met through more effective cooperatives. 



Growers of fruits and vegetables must come to realize the necessity 

 of having the type of cooperative which gives them the needed market 

 power in our evolving production and marketing system. 



This report appraises the basic problem and its symptoms for eight 

 marketing organizations and suggests changes needed to improve their 

 marketing pattern in relation to the fresh produce industry in New 

 Jersey. 



Farmer Cooperative Service (FCS) received requests from seven market- 

 ing cooperatives and one farmer-controlled corporation over the period 

 October 10, 1968 through January 15, 1969, for a study to help them 

 improve their organizations, strengthen their market position, and 

 improve members' returns. These organizations saw the need for a more 

 effective marketing program. 



Out of discussions with officials of these organizations, staff 

 members from Rutgers University, and the New Jersey Department of 

 Agriculture, we developed a study plan. We appraised the organi- 

 zational and financial arrangements of the participating firms; 

 proposed ways to improve operations; explored alternative programs -- 

 such as coordinated marketing for strengthening firms' marketing 

 position; and measured, where possible, the effect of proposed 

 changes on grower returns . 



