525 
American Agriculturist, May SI, 1924 
Producer to 
Jn A. A. Radio Talk Broadcast from WEAF 
Consumer 
ipHE past five years 
I have witnessed a 
marvelous development 
in the growth of co¬ 
operative marketing as¬ 
sociations among the farmers of the United 
States. Of [course, the idea of co-operation 
among farmers is by no means a recent dis¬ 
covery. There are many successful farmers’ 
co-operatives in various parts of the country 
tpday, that have been operating successfully 
[or the past 25 years. But the larger develop¬ 
ment [of the [co-operative movement has been 
within the past 5 years; and it appears certain 
that the next 5 years will witness an increase 
in this development equal to, if not greater 
than, the past growth. 
The Real Problems of Farmers 
Every farmer knows, and to a lesser degree 
every enlightened city dweller knows, that the 
great problem facing the farmers of the United 
States is that of securing efficient distribution 
and marketing of their crops. Without a 
doubt the American farmer is more advanced, 
more progressive and more modern than the 
farmer of any other country in the world. 
But his efficiency as a producer, and the results 
of his modern farming methods, are largely 
in vain if he is unable to enjoy the benefits of 
proper marketing and distribution after his 
crop is produced. 
Before the development of co-operative 
marketing methods among farmers, their 
only method of disposing of their crop was to 
consign the products to the different cities; 
or to sell them to speculators or cash buyers 
who might be established in the various pro¬ 
ducing centers. Such methods have proven 
woefully ineffective. They have not given the 
farmers a compensation for their products 
commensurate with their efforts; they have not 
justified the introduction of more modern 
methods of agriculture which the American 
farmer has been putting into his business in 
the past generation. 
The answer to the old, ineffective methods 
of disposing of the farmer’s crop has been 
found in co-operative marketing; by which 
means a large group of farmers in given com¬ 
munities band together in one association for 
the purpose of doing collectively that which it 
is manifestly impossible for them to do sepa¬ 
rately and as individuals. 
The Case of Maine Potatoes 
Such co-operative associations are now 
located in practically every State of the Union. 
They embrace almost all of the commodities 
listed in the fruit and vegetable calendar. 
For intance, one year ago the potato growers 
of Maine organized into a strong association 
for purposes of co-operative marketing, and 
(luring this season now coming to a close, their 
3,000 members shipped approximately 11,000 
carloads of potatoes. They have enjoyed one 
of the most satisfactory seasons in their history. 
It is generally conceded that the reason lies in 
the fact of their having marketed co-operatively 
by which means they were able to distribute 
their goods in an orderly and scientific manner; 
instead of resorting to the old-time methods of 
(lumping their goods on the nearby markets 
for consignment, or selling to speculators. 
In a desire to secure for themselves the most 
efficient and effective sales facilities in the 
consuming markets, a large number of co¬ 
operative associations have joined together 
® the creation of a national co-operative sales 
agency, which is known as the Federated Fruit 
and Vegetable Growers, Inc. The average 
local associa ion is not sufficiently large to 
afford extensive sales facilities in the con¬ 
suming markets. It can not maintain city 
brandies or employ experienced sales represen- 
tatives, because of the fact that the seasons are 
By ARTHUR R. RULE 
General Manager, Federated Fruit 
and Vegetable Growers, Inc. 
bananas ”; for the reason 
that bananas are not 
produced in the United 
States, but come from 
the Central American 
countries. The territory from which these local 
co-operatives ship their products embraces 
practically every State in the Union. In the 
past year of 1923, this total tonnage from these 
sixty co-operatives amounted to 33,000 car¬ 
loads of fruits and vegetables, representing a 
money value of over $25,000,000. 
The Federated Growers is now maintaining 
sales branches and agencies in nearly 200 
consuming cities and towns of the United 
States and Canada; as well as representation in 
foreign markets. Every town and city capable 
of consuming fruits and vegetables in carload 
units is covered by the branch system of the 
Federated, either by location of a resident 
agent in such city or town, or within telephone 
distance. During 1923, the products of these 
60 co-operative associations joined in the 
Federated Growers, were distributed and 
sold to buyers in 772 cities and towns of the 
North American continent, including sales 
into Canada and Mexico. Cuba, Great Brit¬ 
ain, Scandinavia and South American coun¬ 
tries also furnished sales outlets. 
For Better Service 
The co-operative marketing movement 
would be unsound in principle if it did not 
contemplate a better service and a more 
economical delivery to the consumer; and have 
as its object the elimination of unnecessary 
middlemen, who only add to the cost of 
delivering fruits and vegetables to the front 
door of the housewife. I feel I am permitted 
os convey, in behalf of the 35,000 farmers 
whose products are marketed through the 
Federated Growers, the message to the con¬ 
suming public that these progressive agricul¬ 
turists are sincerely desirous of getting closer 
to the consuming public. They are anxious 
to employ such methods of marketing an d 
distribution as will enable the consuming public 
to obtain the products of the farm in the best 
possible condition, and at the lowest possible 
price consistent with allowing the farmer a 
fair return for his labor. 
I might say, briefly, that the purposes under¬ 
lying the co-operative movement may be 
classed in two divisions. 
First: To employ the most economical and 
efficient methods of marketing and distribu¬ 
tion, so that the products of the farm may 
reach the tables of the consumers by the 
shortest and most direct routes. That lost 
motion and unnecessary handling may be 
eliminated. That the housewife may be able 
to obtain her supplies of fruits and vegetables 
without paying the heavy tax created by un¬ 
necessary middlemen and by inefficient market¬ 
ing and distribution methods. 
Handles Standardized Products 
And Secondly: The co-operative movement 
is striving to achieve the highest degree of 
standardization in putting out its products. 
Dishonest methods used in packing and 
shipping fruits and vegetables break down the 
confidence of the consumer. They lead to 
dishonest practices all along the line. They 
result in great waste, deterioration and decay 
between the time the products leave the farm, 
and arrive at the point of final delivery. There 
is ample evidence to show in the shipping of 
certain commodities in the fruit and vegetable 
line, that a waste of at least 50 per cent has, 
often occurreof between producer and con¬ 
sumer. In other words, 50 per cent, of the 
product was unfit for consumption by the time 
it reached the hands of the grocer or retailer. 
' j ,f , t , • ,. • The price for this waste must be paid by both 
[tort, and the tonnage ot each association is ‘ , , , / J c 
limited tw „n; m , u,„ f„n the producer and consumer. And every one of 
the sixty co-operative, associations shipping 
through the Federated growers are making 
intelligent, sincere and vigorous efforts to put 
out products that are uniformly graded, 
honestly packed, and shipped in such manner 
as to cause only a minimum amount of waste 
between the farm and the home. 
limited. However, they can enjoy the full 
“toefits of high-grade sales service, in all the 
Markets, by joining with other co-operative 
associations, the combination of which fur¬ 
bishes an all-year round tonnage from New 
toar to Christmas, and brings together a 
sufficient volume in total that permits of main¬ 
taining the most efficient sales machinery 
Possible to create. 
f 
Farmers’ Prosperity Affects All 
The growth of the co-operative movement 
in the agricultural districts of the United 
States deserves the support, hhe sympathy 
and the good-will of every progressive citizen; 
because this movement has as its underlying 
- principle the betterment of the condition of 
° The Federated, and marketing their entire the producer, and the furnishing of a square 
tonnage of fruits and vegetables through this deal to the consumer. Agriculture is the 
national sales organization. This tonnage foundation upon which the prosperity of our 
[unbraces practically every item in the fruit country rests; and that foundation can only be 
tod vegetable line; potatoes, apples, oranges, solidly maintained by the employment of 
Peaches, pears, watermelons, onions and many business-like methods in the distribution of 
tohers. I can also add, “Yes, we have no farm crops. 
Only Seventeen Months Old 
yhe Federated Fruit and Vegetable Growers 
entered the field as a national co-operative 
I sales agency on January 1. 1923, or some 
*. Months ago. There are some 60 local and 
district co-operative associations now members 
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