Co-operation
Individuals have practically no power to remedy such a
state of affairs. So long as producers act independently they will
have little power either to bring about favorable legislation or to
better such market conditions. Acting together as a unit growers have
accomplished great
things which can be repeated. The co-operative
principle has been well tried out in California, where it was first
put into operation with citrous fruits, in several other Western
States with apples, and in Michigan and the Province of Ontario.
Co-operative associations study carefully the law of supply and demand
and take steps to adapt their shipments to it. They standardize the
grade, the package, and the fruit, and govern their shipments to given
markets by the needs and the demands of those markets. Their unity of
effort enables them to make great savings in the purchase of supplies,
such as packages, spraying material, fertilizers, etc., and in
obtaining and distributing frequently knowledge of markets and market
conditions. They also advertise their products, making them better
known, creating a demand for them, and by means of correspondence or
traveling agents seek out the best markets.
There are now several large fruit exchanges operating over wide
sections of country. But the local associations are the vital units in
any co-operative movement. Such associations should be incorporated
under State laws so that they can do all sorts of business when
necessary. Six simple objects should be kept in mind, namely, (1) to
prevent unnecessary competition, and to supervise and control
distribution of products; (2) to provide for uniformity in the grade,
package, and fruit; (3) to build up a high standard of excellence and
to create a demand for it; (4) to economize in buying supplies and
selling products; (5) to promote education regarding all phases of the
fruit business; and (6) when necessary to act as a buying and selling
agent for the community.
Such an association requires a board of directors, a treasurer, and an
active and well-paid manager. The latter is most important, as upon
his honesty, ability, and energy will largely depend the success or
failure of the organization. Sometimes where fruit is packed in a
central packing house or under an association brand or guarantee, a
foreman packer is also necessary. The capitalization required for such
an enterprise is not necessarily large, unless warehouses or packing
houses are built. These are usually better rented until the
organization becomes well established.
The shares should be small so that every member may be financially
well represented, and members should be prohibited from holding more
than a small percentage of the total shares, in order to prevent
possible monopoly. Dividends on stock held should only be expected
from business done outside the association membership, interest on
money invested being obtained in the handling of members' products at
cost. Receipts should be given growers for just what they bring in,
and they should then be paid according to the grade of fruit which
they contribute, prices for the same grade being pooled. The charge to
growers for handling should be actual cost, but outsiders' products
should be handled at a small profit in order to induce them to come
into the association. The same method should be followed in purchasing
supplies.
The general result of such co-operation is that the consumer gets a
better product for his money and the grower receives a better price
for his product. It is very essential to the success of the
organization that growers stick together, even through low prices and
discouragement which so often come, until they are firmly established.
Substantial reduction in the cost of the product to consumers can only
come by similar co-operation among them at the buying end and by the
co-operation of both consumers and producers for distribution and
handling in market.
If a neighborhood does not feel yet ready to attack this problem in
this thorough and businesslike way, it will be advantageous and a step
in the right direction if they simply agree on certain standards of
quality and packing and then pool their product for marketing. This
method has also been followed with success.
Previous: The Commission Man
Next: Some Hints On Renovating Old Orchards
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