Collaboration among Citrus Growers:
Associations, Exchanges, and Conferences
Why Did Citrus Growers Need Exchanges?
In the late 1880s, citrus growers struggled to turn a consistent profit because the market was flooded with growers and producers found it difficult to market their crop.[1] Thus, citrus growers decided to “associate themselves together for mutual protection and for the purpose of better packing [and] marketing facilities.”[2] In 1885, grove owners set up the first cooperative, the Orange Growers Protective Union of Southern California, and created the model that Sunkist adopted. After a conference in 1893, local growers met in Los Angeles and believed creating an Exchange would help solve marketing and distribution issues further.[3] The committee proposed the formation of eight districts and an organization of local packing associations in each district. Each association would package produce under their brand, but the Exchange managed the marketing and distribution of produce and distributed profits to individual associations, which passed profits to the growers.[4] All associated cooperatives fell under the California Fruit Growers’ Exchange, a nonprofit organization. The Exchange protected growers through price regulation and developed standardized marketing and shipping guidelines. In order to join a cooperative, the citrus grower must sign a set of by-laws and contractually agree to deliver all the produce from his grove to the local association.[6] In the 1920s, the Exchange Orange Products Company (now called Sunkist Growers, Inc.), a subsidiary of California Fruit Growers Exchange, made up the largest business in the citrus industry. The Exchange moved its headquarters to Ontario in 1926.[7] The California Fruit Growers Exchange had over 15,000 California and Arizona citrus growers as members, collaborating to market and sell their fruit in the mid-1900s.[8] The Exchange grew more than 8,800 acres during 1948, “the biggest annual increase in membership in a decade.” The general manager of the California Fruit Growers Exchange saw this as evidence about the potential growth in the citrus industry and a “strong belief that cooperation is the best method of meeting the problems in the industry.”[9] Figure 2. Beyond collaboration through the Exchange, farmers often shared industry knowledge and best practices through regular conferences and written publications. At the 56th Convention of California Fruit Growers and Farmers in 1923, participants discussed issues such as immigration and farm labor, recent issues with pests such as the Japanese Beetle, freight rates on citrus fruit, irrigation, railway transportation problems, and marketing programs. Not only does the program exhibit the longevity of this specific association of fruit growers, it also suggests the importance of collaborating and sharing industry expertise within the community. Very few farmers did not join a cooperative, since they would suffer a large disadvantage in terms of economies of scale in addition to the lack of in-depth expertise shared among the cooperative community. [10] |
Figure 1. This diagram clearly portrays the structure of a grower's association and its relationship with the Exchange. [5]
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Figure 3. Besides the large annual Exchange conferences, smaller-scale gatherings also occur regularly. The U.S. Department of Agriculture invited Mrs. Jennie McPherson to attend a conference to discuss "What's Going On and What's Ahead in Citrus." This event focused on current issues facing citrus farmers, such as new developments in citrus marketing and new changes in regulations.[11]
While not displayed on this page, The Fourth Annual Southern California Citrus Institute held a program that took place on June 26th, 1925, where citrus growers gathered to discuss the role of fertilizer with citrus production, problems with irrigation and the lack of water, and proper management of different soil types. [12]
While not displayed on this page, The Fourth Annual Southern California Citrus Institute held a program that took place on June 26th, 1925, where citrus growers gathered to discuss the role of fertilizer with citrus production, problems with irrigation and the lack of water, and proper management of different soil types. [12]
FOOTNOTES
[1] “A Cooperative Endeavor,” City of Orange, access on November 8th, 2014, http://www.cityoforange.org/localhistory/citrus/citrus-03.htm.
[2] Galvin Preservation Associates, Historic Context for the City of Ontario’s Citrus Industry, February 2007, pg. 21.
[3] Ibid.
[4] Ibid.
[5] Galvin Preservation Associates, pg. 23.
[6] Galvin Preservation Associates, pg. 22.
[7] Galvin Preservation Associates, pg. 10.
[8] Paul Armstrong, Annual Report of Your Business for 1948, California Fruit Growers Exchange, McPherson Collection, Box 21, Folder 33.
[9] Ibid.
[10] "56th Convention of California Fruit Growers and Farmers Santa Ana," State Department of Agriculture, December 1923, McPherson Collection, Box 21, Folder 31.
[11] 1940 Invitation to “What’s Going On and What’s Ahead in Citrus” by Citrus Growers Annual Institute and the U.S. Department of Agriculture, McPherson Collection, Box 21, File 31.
[12] Program of Fourth Southern California Citrus Institute, June 26, 1925, McPherson Collection, Box 21, Folder 31.
[1] “A Cooperative Endeavor,” City of Orange, access on November 8th, 2014, http://www.cityoforange.org/localhistory/citrus/citrus-03.htm.
[2] Galvin Preservation Associates, Historic Context for the City of Ontario’s Citrus Industry, February 2007, pg. 21.
[3] Ibid.
[4] Ibid.
[5] Galvin Preservation Associates, pg. 23.
[6] Galvin Preservation Associates, pg. 22.
[7] Galvin Preservation Associates, pg. 10.
[8] Paul Armstrong, Annual Report of Your Business for 1948, California Fruit Growers Exchange, McPherson Collection, Box 21, Folder 33.
[9] Ibid.
[10] "56th Convention of California Fruit Growers and Farmers Santa Ana," State Department of Agriculture, December 1923, McPherson Collection, Box 21, Folder 31.
[11] 1940 Invitation to “What’s Going On and What’s Ahead in Citrus” by Citrus Growers Annual Institute and the U.S. Department of Agriculture, McPherson Collection, Box 21, File 31.
[12] Program of Fourth Southern California Citrus Institute, June 26, 1925, McPherson Collection, Box 21, Folder 31.