MARKETING WESTERN BOXED APPLES JU7/ 
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ORGANIZATION 
No different form of organization is required for marketing boxed 
apples than for marketing other orchard products. Associations for 
such purposes may be formed with or without capital stock. They 
may or may not have binding contracts, or pooling of the returns, 
or actual ownership of the products handled. 
Organizations handling boxed apples are of two types of structure, 
the association and the federation. The association is an organiza- 
tion in which the growers are members and vote directly or by proxy 
in the affairs of the association. The federation, on the other hand, 
is a central association made up of several local incorporated organ- 
izations. Membership in such federation is usually limited to local 
associations which, in turn, are composed of grower members. 
Grower control in federations is accomplished by representation of 
each local association in a central meeting for election of directors 
or by proportional representation in the central board of directors. 
Federations are likewise of two distinct kinds, the centralized and 
the decentralized. The difference, however, les not so much in the 
structure of the organization as in the division of power and market- 
ing functions between the central organization and the local units. 
In the strongly centralized type of federation practically all of the 
responsibility may be placed upon the overhead organization. 
In the strongly decentralized type most of the marketing functions, 
such as ine. erading, packing, warehousing, and often the 
financing, are local problems. Here the federation functions mainly 
in the selling and advertising. In the cases where such decentralized 
associations have arranged with outside agencies for the advertising 
and selling, but little work remains for the overhead organization 
except central supervision of the business. 
ASSOCIATION METHODS 
Reports to the United States Department of Agriculture from 26 
farmers’ business organizations handling boxed apples indicate that 
all but two of the associations pool the returns for similar varieties 
and similar grades. In 12 of the associations the pooling period is 
for the entire season. In several other organizations the pools are 
for the periods varying from two to six months. In two instances 
40 days 1s the maximum time for the pools to run. 
_All but two of the reporting associations had contracts with their 
members. The number of markets reached by different associa- 
tions in handling the 1922 crop ranged from 19 to 252. Of the 26 
associations, 23 reported selling on an f. 0. b. basis. The bulk of 
the tonnage is sold in this way, but some cars are consigned, sold 
delivered, or auctioned. Nine of the associations had their own 
selling forces and 16 used a selling agency outside their own organl- 
zations. 
Of the 26 associations, 16 reported that they advertise the products 
handled. Assessments for advertising vary from a half cent to 4 
cents a box. The amount expended in connection with the market- 
ing of the 1922 crop ranged from $200 to $35,000. 
$8140°—26——2 
