11 



Adequate cold storage facilities would give the grovers the opportunity to 

 enhance their marketing position by contracting their fruit supplies over an 

 extended period to chain stores and othaK' available outlets. However, cold 



storage facilities may be ©aly &ine step tovtr4 such a marketing program based 

 on contracting of fruit auppli®®, 0£k#r factars sKiiiit be cotiBldersd in deter« 

 Taining the ^^equscy of suppii«s f®ar prosfsctiv® feaiysrs from as cre& wki&h feas 

 an unfavorable westlier hist©ry. 



If the Velarde Fruit Growers Aisociation succeeds in establishing fruit 

 packing and storage facllitiei its the Espanola Valleys it should have some 

 alternative arrangements for supplies when its o^n crop is seriously damaged 

 by frost or hail. Past feist©ry kas indicated that & frees® sasy practically 

 wipe out the fruit crop in oaa segmeas ©f Haw Messic® and y&t fall to reach 

 another area. So tfe@ maintenance of good business relations with nearby fruit 

 areas for supplemanting supplies may fee ©f invaluable assistaace to the associ- 

 ation. 



An added challenge to th© marketing prospects on apple® ts Indicated by 

 the expected inereaa« in U.S. apple production for the ue^t 5 yesxa ox more. 

 This production outlook Is based on fruit tree censuses which recorded many 

 young trees plaoted during tlie 1950 's and 1960*3. 



The growers have also consideeed other alternatives for marketing their 

 fruit crops. For exaiBple a local representative of a cooperative organization 

 contacted a produce manager ®f a large baby food company in regard to utilizing 

 the area's apple supply. Currently the possibilities do not appear to be favor- 

 able for this market approach. 



Overall conclusions aad ]£®^.^m&nd&tions about this proposal are at the end 

 of this report. 



