bringing home to the growers the wastes arising from the production of undesirable varieties. Some adjustments are already being made. Nevertheless, the Western New York Fruit Growers' Cooperative Packing Association, as one example, handled during the 1924-25 season 60 varieties of apples, but 70 per cent of its tonnage was made up of two varieties Baldwin and Rhode Island Greening-and 5 varieties accounted for more than 90 per cent. It is safe to say that the 55 varieties, representing less than 10 per cent of the tonnage, were a liability to the members of the organization.

Although adjustments in production are being carried forward, careful sales work is necessary to dispose of the odd varieties. If certain markets or dealers show a preference for any of these varieties, or are not prejudiced against them, these outlets should be developed. As a general rule, the smaller towns will be found. to be better markets for odd varieties than are the large cities, but proper trade connections must be built up in these markets and must be maintained through fair treatment and the shipment of reliable products.

Varieties poor in keeping quality, or inferior in size, appearance, or quality can not be sold to advantage in any market, and should be discarded as quickly as possible. The production standards of yield, resistance to disease, time of maturity, etc., by which varieties are selected, must be amplified by a consideration of the marketable qualities of the varieties and their keeping quality under handling, transit, and storage conditions.

PACKING, STORAGE, AND GRADING DIFFICULTIES

Following the production of products of good quality, methods of handling, packing, and grading the product are fundamental to successful marketing. This factor was recognized in a general way by the managers interviewed, but at the same time handling and grading practices were far from being standardized. There are many sources from which loss may arise. The most important

are:

1. Loss from decay or deterioration due to injuries to the product inflicted during the harvesting and packing operations.

Handling injuries are a comon source of loss in the fruit and vegetable industry. Extensive investigations by the Department of Agriculture, initiated over 20 years ago, have shown that the loss to California citrus growers from decay caused by handling injuries totaled approximately $1,000,000 annually, on the basis of 1904 production and prices. The same proportional wastage was found in Florida citrus fruits, and in practically all the more perishable fruits and vegetables, while none were free from loss by this cause.

Several publications have been issued by the Department of Agriculture on this subject, most of which are now out of print, but are available in agricultural libraries. The more important are the following Department Bulletins:

No. 123. The decay of oranges while in transit from California. 1908.

No. 63. Factors governing the successful shipment of oranges from Florida. 1904. No. 274. Factors governing the successful shipment of red raspberries from the Puyallup Valley. 1915.

No. 331. The handling and shipping of fresh cherries and prunes from the Willamette Valley. 1916.

No. 587. The handling and storage of apples in the Pacific Northwest. 1917.

No. 601. The handling and precooling of Florida lettuce and celery. 1917.

No. 1072. The handling, shipping, and cold storage of Bartlett pears in the Pacific Coast States, 1922.

The demonstrations of the department have resulted in many important changes in harvesting and packing practices. (See fig. 3.) Careful handling of perishable products, however, can be maintained only by the constant supervision of a manager who

The care with which the orange picker

handles the fruit is a factor in the success of the association employing him realizes its importance. An intensive drive for better and more careful methods of handling the product will repay any organization handling fruits and vegetables.

2. Losses caused by inadequate storage facilities and deterioration in storage.

Lack of adequate storage facilities in the community handicaps many associations. In preparing for the construction of local storage plants to meet this shortage, it is necessary to consider the extent to which the commodity requires storage. Marketing plans as well as the keeping quality of the product enter into this question. Whether terminal storage facilities can be used to advantage must also be considered. The question of whether farm storage or shipping-point storage warehouses or a combination of the two should be used will also arise.

The question of handling enters into the storage of perishable products. Injuries hasten deterioration in storage. The maturity of the product is an important factor. Immature or over-ripe fruits or vegetables generally have poor keeping quality. Delay between harvesting and storage is another common cause of loss.

These problems are not peculiar to cooperative associations. The associations should be able to meet them more satisfactorily than private shippers and have a greater interest in their solution. If the organizations fail to meet them, their merchandizing plans will be a complete or partial failure.

3. Losses caused by improper grading and lack of grade standards. Proper grading of the products becomes more important when cooperative marketing is adopted. Pooling can not be practiced satisfactorily without standardized grades. The improvements which a cooperative association is organized to bring about presuppose standards on which the value of the products delivered by each member and the value of the association's shipments can be based.

There is scarcely one important marketing function that can not be performed more effectively when the commodity is graded to recognized and definite specifications. It is especially necessary, however, that cooperative agencies should maintain definite grade standards. In fact, this is set down by practically all authorities as a basic prerequisite to success.

One object of cooperative marketing associations is to enable small producers to obtain the advantages which accrue to large-scale operations, such as lower transportation costs, better facilities for assembling, and more intelligent distribution. A relatively large volume of produce is required to bear equitably the heavy overhead expenses of such organizations, and in drawing tonnage from a whole community there are, as a rule, wide variations in the quality of the crops of the several individuals. The practice of pooling the shipments of the various members is becoming general among cooperative marketing associations. There are sure to be poor sales as well as good sales, and it seems only fair that the members should share alike the ups and downs of the market. Without a proper system of grading, the practice of pooling would impose a direct penalty on the best class of producers.

Standard grades constitute a common language between buyers and sellers. They facilitate trading, serving as a basis for: (1)

The following discussion is based on an article entitled "Standardization Necessary for Cooperative Marketing," by H. W. Samson, published in Agricultural Cooperation, April 9, 1923.

Future contracts, (2) sales f. o. b. shipping points, in transit, and in other circumstances where the buyer can not exercise the privilege of inspection, (3) Government inspection, adjustments, and claims, and (4) the intelligent comparison of market prices.

In addition to these benefits which obtain by reason of a complete understanding between buyers and sellers as to the precise character of the product, there are other advantages which result from the actual sorting of the commodity, in so far as this is practicable, into classes which meet the particular requirements of the trade. Grading permits wider distribution because: (1) The more perishable lots may be sold without waste in near-by markets or utilized for by-products purposes, leaving the remainder for shipment to more remote points, (2) when properly graded some products may be held safely in storage, thus extending the marketing season, (3) certain classes of buyers are attracted who do not handle products of indeterminate quality, and (4) any sound advertising program must be based on uniform, dependable products. An important benefit of standardization is the good will which it creates. Confidence in the products of a cooperative organization, and in its general business methods makes financing easier, increases demand for the organization's products, and reduces the margins of middlemen. Furthermore, the enforcement of standard grades at the point of production not only directs the attention of the grower to his mistakes in production and harvesting, thus setting him to correct them, but insures him proper remuneration for more careful and effective methods.

The necessity for standards in the marketing of agricultural products can no longer be regarded as a debatable point. For the present the great problems relate to their effective application. Cooperative associations have in the past been foremost in realizing the need of better grading of farm products. Groups of growers working for their mutual benefit have often maintained voluntarily standards which would have been entirely impracticable had the trade attempted their imposition. However, the large number of commodities involved, the development of many systems of grading and packing, and the great variety of packages used in various parts of the country, have tended to increase the problems of standardization.

The United States Department of Agriculture is engaged in preparing grade standards for farm products. At present such grades have been formulated for the following fruits and vegetables: Barreled apples, asparagus, string beans, bunch beets, cabbage, cantaloupes, bunch carrots, cauliflower, celery, cucumbers, Florida citrus fruit, eggplant, Eastern-type bunch grapes, juice grapes, table grapes, grapes in sawdust or other packing material, lettuce, Bermuda onions, northern onions, peaches, farmers' stock Spanish peanuts, runner peanuts, shelled white Spanish peanuts, pears, fresh plums and prunes, sweet peppers, pineapples, potatoes, sweet potatoes, spinach, strawberries, cannery tomatoes, fresh tomatoes, bunch turnips, and watermelons.

Many of these grades, for example, the United States grades for potatoes, are established throughout the country. Grades for other products are rapidly being adopted. The adoption and use of Fed

eral grades are a requisite of the Federal shipping-point inspection service. It is a common observation that where no grade standards are recognized buyers are inclined to pay a flat price based on the average value, or something less than the average value. Conversely, trading on a basis of quality is the greatest stimulus to better methods of production, and definite, uniform grades are the means to that end.

Shippers frequently complain of unjustifiable rejection of shipments on account of a declining market, or for other causes. Buyers claim that they are often forced to accept poorly graded products. The answer to the whole problem is definite, practical grades.

PRESENT METHODS OF GRADING AND STANDARDIZATION

Practically all cooperative fruit and vegetable organizations are attempting to grade their products. The means used and the results obtained, however, vary considerably. At present, the grading of fruits and vegetables is carried out in one of three ways. These are: (1) Hand selection, sizing, and packing, (2) grading, sizing, and packing in plants and with equipment owned by grower, (3) grading, sizing, and packing in central plants.

Hand selection by the grower, or under his direction, is the oldest form of grading. In the past it has been the principal method. For certain fruits and vegetables, hand grading is necessary because of the nature of the product, and its nonadaptability to machine grading. Wherever possible, however, producers are turning to grading and sizing machinery of various kinds because of the wish to economize labor, to handle larger volumes of products, and to obtain greater uniformity in size and grade.

In many sections of the country grading is performed in the field, or in growers' packing sheds. The practice is especially common in sections where each producer has sufficient volume to make the purchase and use of equipment for sizing economical. In other cases, several growers in close proximity have jointly purchased equipment to handle the product of the group. Such methods have generally improved the market grades of fruits and vegetables, and have secured greater efficiency in the operations of grading and packing. Conformity to definite standards, however, has not generally been secured under this system. Lack of information and differences of opinion among growers concerning grade standards are inevitable. Consequently, central packing houses are being constructed in many sections in order to obtain uniform grading and packing (fig. 4).

Many cooperative organizations, especially those covering a large area, own and operate central packing plants. In a few instances these packing houses are owned and operated by private individuals with whom the associations contract for the grading and packing of their products. In most cases, however, such plants are operated by the organization, either directly or through subsidiary corporations. Frequently these plants are equipped for use as storage warehouses.

Each local unit of a federation may have one or more central packing houses, depending on the volume of its shipments. Grade