17 



In my opinion, tfee work plan's construction cost estimates for the fruit 

 packing and storage plant should be reappraised in terms of providing growers an 

 adequate marketing program. The proposed provision for a 25,000 bushel cold 

 storage area would impose severe limitations on marketing the fruit through the 

 most rewarding sales outlets. 



The fruit packing and storage proposal will require the strong support and 

 loyalty of most commercial fruit growers if the decision is made to form a 

 cooperative plant. Without sueh support the economic prospects of the proposal 

 are further reduced and appear highly unfavorable. Growers must: take the respon- 

 sibility for fina.ncing and pafc3f©nisiag the cooperative. 



After obtaining neceasary initial funds from fruit growers and other sources 

 the cooperative can be financed through a capital retain or by withholding a 

 certain amount from patron returns. One method of insuring patronage would be 

 to require grower members to execute a marketing contract in which they would 

 agree to deliver a stipulated quantity of fruit. This would have the two- fold 

 effect of insuring member support and a predetermined volume of fruit for the 

 season's operation. 



Growers must also be willing to adopt the production and handling changes 

 that will help to assure efe.® cooperative of high quality,, uniform fruit. 



The economie prospect for the chile proposal appears to ^e less attract ive, 

 lifiiket demand ' f©r chile in interstate commerce is an unknown factor. Growers 

 in t&e Espaeola Valley have received higher returns for chile from their tradi- 

 tional marketing methods of roadside selling and house to house peddling than 

 they could expect from commercial processing and m.arketing. 



It is obvious that their present method of marketing requires considerable 

 time and effort, But it may be difficult to get the-se growers to adopt and. follow 

 through a marketing plan that actually places a significant value on their time 

 used in market ine. 



