Capital journal. (Salem, Or.) 1919-1980, 1921-06-21
Walnut GrOWe1.S
In Competition
Faced With Ruin

This is the second article by j
F. Langner, cooperative marketing
adviser, which is appearing in the
Capital Journal on cooperative
marketing. The first article told
of the organization that has been
effected and the combination
which is at present under way.
The two earliest co-operaive
organizations of any magnitude on
the Pacific Coast were the orange
and walnut growers of California.
For the consumer to understand
the problems confronting the grow
ers of these two commodities it is
necessary to understand the condi-
tions surrounding the growers
prior to the time the marketing
associations were first organized.
The early history of the market
ing of Califonia's walnut crop is
one long story of low price-which
left the grower without a profit
at the end of the season-and
vicious speculation.
The first walnuts were planted
in California in 1867. By 1880
the crop of California walnuts
amounted to approximately 500,-
600; in 1890 over 100000
pounds, and by lssu approxlmar-
ely 50,OOO,OO0 pounds. Thus
within forty years the quantity of
Nwalnuts produced in California
alone had increased 5000 per cent.
Prior to 1895, when the walnut
crop was approximately three to
, four million pounds the method of
marketing was to sell to a group
of spectators whose only interest
was to buy walnuts from the grow
er at the lowest price and resell
to the consumer at the highest
price. The walnuts were not well
cleaned, were not graded, were not
even of good quality. In 1895 the
growers of one district decided to
market only high quality walnut
and to sell it directly on the New
York market through one broker
Because it was putting out uni
form product 1t met with much
success.
In 1896 three new associations
were formed in 1898 two more and
by 1919 there were thirty-one CO.
operative walnut associations in
California. Each of these associa-
tions now has established it's own
brand, its own grades, and its own
particular methods of marketing
through individual brokers. Each
association appointed different
broker to handle it's crop.
Competition Proved Ruinous
The result was that while the
individuals in one district were
not competing with each other, the
district itself entered into the
worst kind of competition with its
next-door neighbor. Ruin once
more stared the walnut growers in
the face. Some brokers were
strong financially, others were
weak. At the beginning of the
season 1t became the habit of all
the brokers to get together and
arbitrarily establish a price. For
instance, one year the price estab-
lished was III X cents a pound to
the retailer. But some weak brok-
ers, in order to hold their trade,
reduced the price little by little
until they had the price down to
8 cents, at which figure they show
ed a loss to the grower.
In 1912 the growers decided to
eliminate competition between
their districts and formed the Cali
fornia Walnut Growers Associa-
tion. The express purpose of this
association is to market all the
walnut crop through the one in
stitution; to grade the entire crop
so that any consumer buying Cali
fornia walnuts would be sure OF
getting walnuts fit to eat-every
one OF them-and to advertise
their walnuts under brand. To-
day the association markets an
nually 50.0OO.000 pounds OF wal
nuts worth $15,OOO,O0O dollars at
least.
The industry has been kept
alive-thousands of families live
on the walnut industry-and it il
an integral and basic part of agri-
cultural in Southern California.