Evening star., 1925-01-07
MARKETING
PLANS ARE SOUGHT.
Raisin and Prune Growers
Have Remarkable Success
in Sales Methods.
BY j. G.. ROYL.E.
fipec.al Dispatch to The Star.


NEW YORK. January 7.-Co-oper-
alton alone is not sufficient to make
cooperative marketing success.
That fact Is freely acknowledged by
advocates of cooperative selling or
ganizations throughout the country
a5 well as those gathered at the
meeting of the National Council OF
Cooperative Marketing Associations
now in session at Washington. These
men declare efficient scientific man
agement is as much needed in CO.
operative marketing of farm products
as in any other business in the
country.
Cooperative associations are not
waiting for Government help in
solving the difficulties of the agri-
culturist. but they are waiting, many
OF them, for competent executives
with sufficient foresight, experience
and technical knowledge TO do for
tl:eir associations what Ralph p. Mer-
rift has done for the Sun Maid raisin
growers and what other brilliant
executives have done for other pros
porous farm organizations.
Efficiency Saves Millions.
The room for improvement in the
ma nagement of many co-operatives is
plainly shown by the records of the
).
since that association owed tre-
mendous sums for advertising and
other expenses, when its plans were
in disorder and its success uncertai in
Since 1922, expenses as measured by
the month ton of product handled
have been reduced 90 per cent, with
a consequent saving OF millions OF
dollars.
Gross expenses, meaning every ex-
pendlture for any purpose, were cut
by President Merritt from s1f.4o per
month ton in 1922 to $500 in 1924
Figuring on the tonnage sold, II cents
in the last year did the work for
which 81 was required in 1929. Cost
of financing advances to growers
which cost S3.12 ton of fruit re-
coived, was cut to s2.10 last year
while working capital, which cost
81 cents q month ton in 1922, was cut
to 81 cents.
Storage Costs Reduced.
In the last two years cost of receiv-
iag. storing. handling and shipping
Sun Maid products has been lowered
from S7.I1 per month ton TO 1881. Ad-
vertising cost $3.50 per ton sold in
1924, as compared with slS.13 in 1922.
A far greater tonnage was moved,
due. it is declared, to more effective
handling of the work and the larger
use of local newspaper advertising.
Selling costs declined 81 per cent, and
administrative expenses are only a
third of those OF two years aGo.
The advantages of efficient and
timely marketing were equally well
shown by recent experiences of the
California Prune and Apricot Crow
ere The fact that world shortage
of prunes was imminent came as a
complete surprise TO many growers
outside the association. according to
A. NJ. Mortensen, general manager.
The association urged farmers to hold
for better prices, but. nevertheless. a
large tonnage was dumped on the
market at low prices. Growers who
followed the associations warnings
are already reaping the benefit.
The situation simply means" said
Mr. Mortcnsen. that this year there
are not enough prunes to go around
by about 10000 tons. OF the 1924
crop, only about half is sold, putting
US in a splendid position to get for
our members the tull advantage of
the present situation. With proper
handling the 1924 crop will be out of
first hands by July /, giving the trade
time to clean up this crop before next
years crop comes on the market. A
condition which has not obtained for
years" 4e
Men interested in the live stock in
dustry have been comforting with the
cooperative executives now in Wash
ington, although IL is realized that
the troubles of the stock grower can
not be entirely met through co-opera-
tive marketing since raisers OF live
stock must plan further in advance
than growers OF annual crops so far
as volume OF production is concerned.
Also when cattle. sheep and hogs are
ready for market, they cannot be
held back or put in storage" since
they are acoumulating expense faster
than they accumulate flesh ana value.