Marketing

Table-grapes from both eastern and western grape regions are now

almost entirely shipped in carload lots. Since few grape-growers are

prepared to load a car quickly with grapes, some kind of cooeperation

is required, or the crop must be handled by large buyers. Cooeperative

methods are becoming more and more popular, although a large part of

the grape crop, both East and West, is now handled by buyers.



Th re are several important advantages in selling through a

cooeperative organization. Thus, in selling cooeperatively, the grapes

are graded and packed in accordance with one standard; more favorable

transportation rates can be secured by a cooeperative association; and,

most important of all, the output can be distributed to the grape

markets of the country without the disastrous competition that attends

individual marketing. In some of these organizations, also, supplies

needed by the grape-grower in producing a crop are purchased more

economically than by individuals; in particular, grape packages can be

purchased better by an organization than by an individual.



As the grape industry and competition grow in the different regions of

the country, the necessity of forming marketing organizations becomes

greater. Such organizations must be founded on the principles which

many experiments have shown best govern fruit-marketing associations.

It is not possible to discuss these principles at length, but the

following fundamentals will suffice:



An ideal cooeperative association is one in which there are no profits

nor dividends. Every member of the whole organized association is a

producer. All of the product grown by a member is sold through the

association. The association is democratic, all members having an

equal voice in its management and all sharing alike in its successes

and failures. When profits arise of necessity, they are distributed to

the members of the association in proportion to the amount of business

each has done. The work of the organization is conducted at as near

cost as possible and profits are declared only after expenses,

depreciation, interest on capital for future operations are deducted.

Thus it is seen that the plan of the organization is to give each

member as nearly as possible the exact price his fruit has brought in

the markets.