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.

There 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.

Next: Vineyard Returns
Previous: Handling The Grape In California

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