COOPERATIVES IN THE FRUIT AND VEGETABLE INDUSTRY 
by Charles H. Meyer 
Crops Division 
Cooperative Marketing and Farm Supplies Program 
Fruit and vegetable marketing cooperatives were first organized in the 
United States in the 1860's. Their real strength, however, did not be- 
gin until the 1890's. In 1895 the Southern California Fruit Exchange 
was organized. After 1900 fruit growers in the Pacific Northwest 
and Florida also organized marketing associations. 
Large scale processing by cooperatives began in California about 1910, 
with dried prunes, peaches, and apricots. Cooperative canning in volume 
did not materialize until the early 1930's. Many processing associa- 
tions were initially fresh marketing organizations. They continued in 
the fresh field but began to provide their grower members with a more 
complete marketing program. Also, some farm supply cooperatives pro- 
cessed fruits and vegetables, primarily to provide members with market 
outlets for their products. 
FRESH FRUIT AND VEGETABLE MARKETING COOPERATIVES 
Numbers of fruit and vegetable associations continued to grow. A com- 
prehensive survey by the U. S. Department of Agriculture in 1915 showed 
871 associations marketing these products. By 1950, the number of fruit 
and vegetable marketing cooperatives--including processing cooperatives, 
a few bargaining associations, and more than 40 sugar beet associations-- 
had declined to 829. Over the 15-year period, 1950 to 1964, the number 
of associations has shown a steady decline. 
Growth and Development \ 
The first fruit and vegetable cooperatives were marketing associations. 
In numbers of associations, memberships, and dollar volume, cooperatives 
marketing primarily fresh products are still the most important. Although 
the main function of these associations is to market fresh products, a 
few of them manufacture and market processed products as a minor part 
of their total business. 
Most fresh fruit and vegetable marketing cooperatives perform a wide range 
of services for their members. The cooperatives center marketing activi- 
ties upon grading, packing, shipping, and selling members! produce. How- 
ever, there are variations from this typical situation. The most notable 
separates the functions involved in assembly and product preparation 
from that of selling. Some cooperatives concentrate on preparation-- 
for market and employ sales agents. Some cooperatives have formed fred- 
erations to perform the sales function. 
Trend in Number 
The trend in the number of associations is best illustrated by the data 
for 1952 and 1964, and the associations beginning and discontinuing 
