15 
requirements for a single variety of a given grade. Direct sales with 
these requirements are now standard marketing transactions that have 
largely replaced terminal market sales as a major market outlet. 
Federated marketing associations appear to behandicapped somewhat by 
a lack of control over the decisions that come in the early stages of 
marketing such as the varietiesto be picked and harvest dates. A cen- 
tralized association is better able to control these decisions for an 
orderly marketing program. 
Mergers.--Farmer Cooperative Service records show 15 fresh fruit and vege- 
table marketing cooperatives were discontinued through merger, (includ- 
ing consolidations and acquisitions) since 1957, the earliest year of 
record. Eleven of these 15 merged associations were in California; the 
other three were in Florida, Missouri, and Washington; eleven of the 15 
mergers were citrus associations, 10 in California and one in Florida. 
No pattern of merger activity was evident over the 10-year period. 
Some mergers of California citrus associations resulted because some 
citrus acreage was transformed into suburban home sites. Decreas- 
ing grower patronage brought strong economic pressure on some of these 
organizations to consolidate their facilities and seek more efficient 
marketing operations. Some California associations have been involved 
in two or more mergers as production patterns shifted. The accompany- 
ing tabulation shows the discontinuances of fresh fruit and vegetable 
associations because of mergers. 
Year Number 
1957 2 
1958 3 
1959 1 
1960 - 
1961 3 
1962 Hl 
1963 2 
1964 2 
1965 oF Be, 
TOTAL 15 
The objectives of most mergers, consolidations and acquisitions are: 
(1) Increase operating efficiencies (reduce marketing costs), and (2) 
develop better marketing programs. 
Current Status 
FCS made a special survey in 1965 of cooperatives marketing fruits and 
vegetables-in the United States. This covered the 1964-65 marketing 
year. Included were 279 fresh marketing cooperatives, 56 processing, 
and 70 bargaining associations. The purpose of the survey was to pro- 
vide cooperatives and others with more complete information and data 
on current activities and relative importance of fruit and vegetable 
cooperatives. 
