Analysis of Returns and Practices of Florida Fresh Citrus Sales Organizations (Classic Reprint)

Excerpt from Analysis of Returns and Practices of Florida Fresh Citrus Sales Organizations

Size and grade of fruit affect net returns to shippers, particularly for fruit shipped to auction markets. In general, during the 1953-54 season, large sized Valencia oranges were discounted while large sized white seedless grapefruit brought premiums.

Slight differences in net returns for Valencia oranges showed Interior area sales to chain buyers returning more than sales to wholesalers and jobbers or to other types of buyers, especially in the case of direct sales. Further analysis indicated that sales made directly to buyers averaged higher returns per box than sales made through brokers and still higher than sales made at auction. These results reflected the costs of additional services performed by brokers and the mixed policies of shippers, some of whom use auctions for quality fruit while others use this outlet as a last resort.

Comparison of white seedless grapefruit returns showed federated and nonfederated sales making comparable returns to shippers. Returns for Interior Valencia oranges were 3 cents a box higher for shippers using federated sales than for those selling through nonfederated organizations. When two houses that shipped a high proportion of natural color fruit were eliminated from the comparison, federated shippers showed even higher net returns, averaging 5 cents a box more than returns of nonfederated shippers.

Volume of fresh fruit shipped by the 38 cooperating houses is shown for size of fruit, grade, containers, method of sale, terms of sale, type of buyer, market location and time.

Marked increases in production have been accompanied by important changes in utilization and marketing practices. Frozen concentrated juices have been the important factor in utilization of this increased production. Fresh shippers have been affected by the inter-product competition which has developed between processed and fresh fruit.

Many large volume buyers have moved their procurement offices to production areas. Some shippers have made efforts to shift their sales programs to service this direct buying and f.o.b. Business.

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