UNITED STATES DEPARTMENT OF AGRICULTURE 
DEPARTMENT BULLETIN No. 1237 
Washington, D. C. 
May, 1924 
ORGANIZATION AND DEVELOPMENT OF A COOPERATIVE 
CITRUS-FRUIT MARKETING AGENCY. 
By A. W. McKay, Specialist in Agricultural Cooperation, and W. Mackenzie Stevens, 
Formerly Associate Marketing Specialist, Bureau of Agricultural Economics. 
CONTENTS. 
Page. 
The California citrus industry. 1 
Location 1 
Early History 3 
Development of the exchange system 4 
Need of organization 6 
Failure of the marketing system 8 
Organization of the cooperative associa- 
tions 9 
Organization of the exchanges 10 
The California Fruit Growers Exchange 13 
Local units 15 
Individual shippers. 22 
Packing companies 22 
District exchanges 23 
Organization of the exchange 25 
Orange and lemon sales departments 26 
Traffic department 28 
Advertising department 28 
Field department 29 
Law department 3o 
Accounting and statistical depart- 
ment 30 
Supply and by-products organizations 31 
Fruit Growers Supply Co 31 
Exchange Orange Products Co. 34 
Exchange Lemon Products Co 36 
Economic services of the exchange 37 
Reduction in packing and marketing 
costs 37 
Cooperative purchase of supplies 38 
Standardization of the product 39 
Page. 
Economic services of the exchange— Con. 
Improvement of handling practices 40 
Efficient marketing 40 
Stimulation o f consumer demand 41 
Extension o f the marketing season 42 
Improvement of transportation service . . 43 
Utilization of by-products 44 
Some fundamentals of the exchange S} T stem. 44 
Operation for mutualbenefit 44 
Limitation of membership 45 
Members informed and consulted 46 
Conservative practices 46 
Cooperation with other agencies 47 
Withdrawal privilege 47 
Membership loyalty 48 
Appendix .* 49 
Organization and marketing plan adopt- 
ed by the Southern California fruit ex- 
changes 49 
Articles of incorporation of California 
Fruit Growers Exchange 50 
Bv-laws of California Fruit Growers Ex- 
change 51 
Form of crop contract 56 
Form of contract between a district ex- 
change andlocalassociation 58 
Form of contract between a district ex- 
change and the exchange 59 
Grade specifications 64 
Tables 1 ,2, and 3 65-66 
Literature cited 67 
THE CALIFORNIA CITRUS INDUSTRY. 
LOCATION. 
The citrus industry of California has reached its greatest develop- 
ment in the southern counties of San Diego, Orange, Los Angeles, 
Riverside, San Bernardino, Ventura, and Santa Barbara. The foot- 
hill regions and lower lands along the southern base of the Sierra 
Madre range from Los Angeles to San Bernardino form an important 
district. The Riverside district wa the original navel district and 
is still one of the most importan sections. Orange County is the 
most important center for the Valencia orange, and the San Fer- 
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