Apple Growing Part 7

CHAPTER X

MARKETS AND MARKETING

Having produced a good product, there remains the problem of making a profitable and satisfactory disposition of it. In many ways marketing is the measure of successful fruit growing. Of what use is it to prune well, cultivate well, spray thoroughly, or even pack well the finest kind of product, if after the expense of these operations is paid and the railroad and commission agents have had their share, no profit remains to the producer? Many growers find it easier to produce good fruit than to market it at a good price, and this is especially true of the general farmer. Failure to market well spells failure in the business of fruit growing. Successful marketing presupposes a knowledge of the requirements of different markets as to quality, varieties, and supply demanded in those markets. Methods of distribution are also one of the great factors in this problem of marketing.

TYPES OF MARKETS.--There are two general types of markets, the local, which is a special market and the general or wholesale market, both of which have different but definite requirements. The local market handles fruit in small quant.i.ties, but usually with a larger margin of profit per unit to the producer. As a rule delivery is direct in a local market, and thus commissions are saved. Compet.i.tion is also more or less limited to one's neighbors. More varieties, including less well known ones, are called for. Appearance does not count for as much as quality, which is of first importance. Fruit may be riper as it is consumed more quickly and meets with less rough handling. Packages are usually returned to the grower. Special markets are often willing to pay extra for fruit out of season, and they always require special study and adaptation to meet their needs.

The general or wholesale market handles fruit in larger quant.i.ties, usually with a smaller margin of profit. A selling agent or commission man is the means of disposing of fruit in such a market, where compet.i.tion is open to the whole country and sometimes to the world.

Only standard well-known varieties find a ready and profitable sale.

Great attention is paid to appearance and comparatively little to quality. Fruit shipped to a wholesale market must be packed in a standard package, which is not returned, but goes with the fruit, and must be packed so as to endure rough treatment. Out of season fruit is not in demand, but even the general market sometimes has special preferences.

Almost every market has favorite varieties for which it is willing to pay a larger price than other markets. Just as Boston wants a brown egg and New York a white one, so these and other cities have their favorite varieties of apples. Some markets prefer a red apple, others a green one, although the former is most generally popular. In the mining and manufacturing towns working people want smaller green apples, or "seconds," because they are cheaper. Many second-cla.s.s hotels prefer small apples, if they are well colored, as they go farther. The fashionable restaurant and the fruit stand are the markets for large, perfect, and highly colored specimens. Housewives demand cooking apples like Greenings, hotels want a good out-of-hand apple like the McIntosh, while private families have their own special favorites. As will readily be seen, the producer's problem is to find the special market for what he grows.

It has been said that different markets have special varietal preferences, paying a better price for these than do other markets for the same quality. We can only take the s.p.a.ce here to point out a few of these preferences. The Baldwin is by all odds our best general market and export variety. It is the workingman's apple and finds its best sale in our largest cities, particularly in New York and Chicago.

The Rhode Island Greening is a better seller in the northern markets than it is in the southern, finding its best sale in Boston and in New York. The Northern Spy is highly regarded by all our large northern and eastern markets, is fairly well liked by the middle lat.i.tude markets, but not popular south of Baltimore and Pittsburgh or west of Milwaukee.

Central western markets appear to prefer the Hubbardson, but this apple is fairly good in all markets. King is well thought of nearly everywhere. Ben Davis is a favorite in the South, New Orleans especially preferring it on account of its keeping quality. Jonathan has a good reputation everywhere. Dutchess of Oldenburg is regarded as excellent in Buffalo and Chicago. Wealthy, although generally a local market apple, is well known and liked in all markets. Twenty Ounce is spoken well of nearly everywhere. The Fameuse is not well liked in the South, but popular in the North, etc. These particular facts as to varieties are best learned by experience and by observation of the market quotations.

THE COMMISSION MAN.--The present system of marketing fruit products makes the commission man almost a necessity in the general market.

Neither the grower nor the local dealer can ship directly to the consumer or even to the retailer, except in a very limited way. It may be impracticable to devise any other workable system, but it must be remembered that every man who touches a barrel of apples on its journey from producer to consumer must be paid for doing so, and this pay must come either out of the seller's price or be added to the buyer's price. But so long as present conditions of marketing and distribution prevail, so long will a selling agent in the general market be necessary, and the evil cannot be ameliorated by ranting against it.

An unfortunate impression prevails that all commission men are dishonest. This is not true, although undoubtedly there are many scoundrels among them, as they have shippers almost completely at their mercy. The best method under our present system is to choose an honest commission man in the city where you sell, to get acquainted with him, to let him know that your trade will be in his hands only so long as he treats you fairly, and then supply him with as good quality of stuff as you can produce. This plan has worked out well with many successful growers and marketers.

Perhaps the greatest difficulty to be overcome in successfully finding good markets is that of proper distribution. As has been pointed out in the previous chapter, there has been a great increase in the production of apples and hence in compet.i.tion, accompanied by speculation and more intensive methods in all phases of the business.

A necessity has arisen for the production of the best at a minimum cost, as well as for finding the best market for that product. In the rush for the best market every seller is apt to be guided only by his own immediate interest without due regard for the fact that others are acting in the same way or that there is a future. The result is the piling up of fruit in a market of high quotations, and a subsequent drop in the price. Then all turn from such a market to a better one with the result that a famine often results where but a few weeks or even days before there had been a feast.

Thus it often happens that one market may have more fruit than it can possibly dispose of at the time, while another, perhaps equally good, goes begging. Such conditions are ruinous to trade. Growers are disappointed and ascribe the cause to the commission man. Consumers are unable many times to profit by a glut in the market but promptly blame the middleman or the grower when the supply is small and the price high.

Other difficulties with our system of marketing are non-uniformity of the grades, the packages, or the fruit itself. There should be a clear definition of just what "firsts" and "seconds" are and this definition rigidly adhered to. Transportation is too frequently insufficient, not rapid enough, especially when perishable fruit is shipped in small lots, and usually at a too high rate. There are undoubtedly too many middlemen between producer and consumer. Growers sell to local dealers who sell to wholesalers at the receiving end. These sell to wholesalers at the consuming end, who may sell to jobbers, who sell to retailers. Each man must have his profits, all of which greatly increases costs.

CO-OPERATION.--Individuals have practically no power to remedy such a state of affairs. So long as producers act independently they will have little power either to bring about favorable legislation or to better such market conditions. Acting together as a unit growers have accomplished great things which can be repeated. The co-operative principle has been well tried out in California, where it was first put into operation with citrous fruits, in several other Western States with apples, and in Michigan and the Province of Ontario.

Co-operative a.s.sociations study carefully the law of supply and demand and take steps to adapt their shipments to it. They standardize the grade, the package, and the fruit, and govern their shipments to given markets by the needs and the demands of those markets. Their unity of effort enables them to make great savings in the purchase of supplies, such as packages, spraying material, fertilizers, etc., and in obtaining and distributing frequently knowledge of markets and market conditions. They also advertise their products, making them better known, creating a demand for them, and by means of correspondence or traveling agents seek out the best markets.

There are now several large fruit exchanges operating over wide sections of country. But the local a.s.sociations are the vital units in any co-operative movement. Such a.s.sociations should be incorporated under State laws so that they can do all sorts of business when necessary. Six simple objects should be kept in mind, namely, (1) to prevent unnecessary compet.i.tion, and to supervise and control distribution of products; (2) to provide for uniformity in the grade, package, and fruit; (3) to build up a high standard of excellence and to create a demand for it; (4) to economize in buying supplies and selling products; (5) to promote education regarding all phases of the fruit business; and (6) when necessary to act as a buying and selling agent for the community.

Such an a.s.sociation requires a board of directors, a treasurer, and an active and well-paid manager. The latter is most important, as upon his honesty, ability, and energy will largely depend the success or failure of the organization. Sometimes where fruit is packed in a central packing house or under an a.s.sociation brand or guarantee, a foreman packer is also necessary. The capitalization required for such an enterprise is not necessarily large, unless warehouses or packing houses are built. These are usually better rented until the organization becomes well established.

The shares should be small so that every member may be financially well represented, and members should be prohibited from holding more than a small percentage of the total shares, in order to prevent possible monopoly. Dividends on stock held should only be expected from business done outside the a.s.sociation membership, interest on money invested being obtained in the handling of members' products at cost. Receipts should be given growers for just what they bring in, and they should then be paid according to the grade of fruit which they contribute, prices for the same grade being pooled. The charge to growers for handling should be actual cost, but outsiders' products should be handled at a small profit in order to induce them to come into the a.s.sociation. The same method should be followed in purchasing supplies.

The general result of such co-operation is that the consumer gets a better product for his money and the grower receives a better price for his product. It is very essential to the success of the organization that growers stick together, even through low prices and discouragement which so often come, until they are firmly established.

Substantial reduction in the cost of the product to consumers can only come by similar co-operation among them at the buying end and by the co-operation of both consumers and producers for distribution and handling in market.

If a neighborhood does not feel yet ready to attack this problem in this thorough and businesslike way, it will be advantageous and a step in the right direction if they simply agree on certain standards of quality and packing and then pool their product for marketing. This method has also been followed with success.

CHAPTER XI

SOME HINTS ON RENOVATING OLD ORCHARDS

Nearly every general farm in the humid part of the United States has its small, old apple orchard. For the most part these orchards were planted in order to have a home source of supply of this popular fruit. In fact, but few orchards have been planted on a commercial scale with a view of selling the fruit, until recently and outside of a few sections. Therefore, as a rule we find these old farm orchards to consist of a few acres containing from twenty-five to two hundred trees. These trees are usually good standard varieties which have been the source of much apple "sa.s.s," many an apple pie, and many a barrel of cider-vinegar.

Not having been set for profit, these trees received little care.

Orchards were cropped in the regular rotation, or with hay, or pastured. Farmers then knew little of modern methods of orchard management. The orchard was regarded as an inc.u.mbrance to the land, which had to be farmed to as good advantage as possible under the circ.u.mstances, and if the apple trees by any chance yielded a crop, the owner regarded himself as fortunate indeed.

But conditions have now changed. Both local and foreign markets have been opened up and developed so that the demand for good fruit is great. It will be some time before the thousands of acres of orchards which have been and are being planted to meet this demand will be able to do so in any adequate way. It has been shown in Chapter I how heavy has been the falling off in the supply, even in the face of these heavy plantings. Meanwhile we must turn to the old neglected farm orchards for our supply of apples. Just at this particular time the renovation of these old orchards offers a splendid opportunity to increase the farm income.

The question is a live one on nearly every general farm in the East.

Will it pay to try to renovate my old apple trees? If so, what should I do to make them profitable? What will it cost and what returns may be expected? The latter question will be taken up in the following chapter, but here we must try to indicate under what conditions it may pay to renovate an old orchard, as well as those under which it may not pay, and also how to go about the problem.

NECESSARY QUALITIES.--An apple orchard must have certain qualifications in order to make it worth while to spend the time and money necessary to accomplish the desired results. These we may take up briefly under five heads: (1) varieties, (2) age, (3) number or "stand" of trees, (4) vigor and health of the trees, and (5) soil, site, and location. The discussion of these subjects in Chapters II and III has equal application here, but we may perhaps point out their specific application more definitely in the case of the old neglected farm orchard.

(1) Varieties should be desirable sorts. If they are the best standard market varieties, as is often the case, so much the better. Otherwise little is gained by improving the tree and fruit. Poor or unknown varieties have little or no market value, except perhaps a very local one. If the trees are not too old and are fairly vigorous, poor varieties may sometimes be worked over by top grafting to better varieties. Characteristics which may make, a variety undesirable are: inferior quality; unattractiveness in color, shape, or size; lack of hardiness in the tree or keeping quality in the fruit; low yield; or being unknown in the market with its consequent small demand. Summer varieties are worth renovating only when they are in good demand in a nearby local market.

(2) Vigor is more important than age in the tree, but is closely correlated with it. Ordinarily one should hesitate to try to renovate a tree more than forty or fifty years old, but this must always depend almost wholly on its condition and other characteristics.

(3) In order to make a business of renovation and to do thorough work which means expense, there must be enough of the orchard to justify the expenditure of the time and money. This affects the results not only in expense, but in economy in management, equipment, and marketing. There should be at least an acre of say thirty trees, and better, more than that number to justify the expense of time and money necessary for renovation. One hundred trees would certainly justify it, other conditions being favorable. Then, too, the trees should be in such shape that they can be properly treated without too great trouble and expense, i.e., not too scattered or isolated or in the midst of regular fields better adapted for other crops.

(4) Vigor and good general health are of great importance. Many old trees are too far gone with neglect, having been too long starved or having their vitality too much weakened by disease to make an effort for their rehabilitation worth while. Good vigor, even though it be dormant, is absolutely essential. Disease weakens the tree, making the expense of renovation greater. Moreover, all diseased branches must be removed, requiring severe cutting and often seriously injuring the tree. Disease too often stunts the tree to such an extent as to make stimulation practically impossible. Such matters should be carefully looked into before attempting renovation.

(5) If the soil, site, and location are all unfavorable or even if two of these are not good, time and money are likely to be wasted on renovation. What const.i.tutes unfavorable conditions in these respects has already been pointed out in Chapter III.

Practically the same principles of pruning, cultivation, fertilization and spraying apply in the management of the old orchard as in any other orchard. It may be well, however, to restate these, briefly pointing out their special value and application to the old neglected orchard together with the few modifications of practice necessary. The steps to be taken are four: (1) pruning, (2) fertilizing, (3) cultivating, and (4) spraying.

(1) PRUNING.--Old and long-neglected apple orchards usually have a large amount of dead wood in them. This may be removed at any time of the year, but fall and winter are good times to begin the work. If the trees are high and the limbs scattered and sprawling so that the middle of the trees is not well filled out, the trees should be headed back rather severely. Such trees may safely have their highest limbs cut back from five to ten feet. It is best not to remove too many branches in one year, but to spread severe cutting back over at least two years, as so much pruning at one time weakens the tree and causes an excessive growth of "suckers." Each limb should be cut back to a rather strong and vigorous lateral branch which may then take up the growth of the upright one. The effect of such heading back will be to stimulate the branches lower down and probably to bring in more or less "suckers." The following year the best of these suckers should be selected at proper points about the tree, headed in so as to develop their lateral buds, and encouraged by the removal of all other suckers to fill in the top and center of the tree in the way desired.

All such severe heading in should best be done in the early spring.

(2) FERTILIZING.--At some time during the late fall or winter twelve to fifteen loads of stable manure should be applied broadcast on each acre, scattering it well out under the ends of the branches. This will amount to a load to from three to five trees. In case manure is not available, or sometimes even supplementary to it in cases where quick results are wanted 100 to 200 pounds of nitrate of soda, 300 to 500 pounds of acid phosphate, and 150 to 200 pounds of sulphate or muriate of potash should be applied in two applications as a top dressing in spring, as soon as growth starts, and thoroughly worked into the soil.

This will give the trees an abundance of available plant food, which is usually badly needed, and help to stimulate them to a vigorous growth. Such heavy feeding may easily be overdone and should be adjusted according to conditions and the needs of the orchard.

(3) CULTIVATING.--If the orchard has been in sod for a number of years, as is often the case, it is usually best to plow it in the fall about four inches deep, just deep enough to turn under the sod. By so doing a large number of roots will probably be broken, but such injury will be much more than offset by the stimulus to the trees the next season. It is a good plan to apply the stable manure on the top of this plowed ground early in the winter. Fall plowing gives a better opportunity for rotting the sod and exposes to the winter action of the elements the soil, which is usually stale and inactive after lying so long unturned. In the spring the regular treatment with springtooth and spiketooth harrows should be followed as outlined in Chapter V.

(4) SPRAYING in the old orchard is essentially the same as elsewhere.

It is necessary, however, to emphasize the first spray, the dormant one, winter strength on the wood. This is the most important spray for a neglected orchard and it should be very thoroughly applied. It is a sort of cleaning-up spray for scale, fungus, and insects which winter on the bark. In orchards where the San Jose scale is bad a strong lime-sulphur spray should also be used in the late fall in order to make doubly sure a thorough cleaning up. It is usually a pretty good plan to sc.r.a.pe old trees as high up as the rough, s.h.a.ggy bark extends, destroying the sc.r.a.pings. For this purpose an old and dull hoe does very well. This treatment will get rid of many insects by destroying them and their winter quarters.

PATCHING OLD TREES.--A few suggestions on patching up the weak places in an old tree may not be entirely out of place. The question is often asked, will it pay to fill up the decayed centers or sides of old trees? If the tree is otherwise desirable to save, it usually will.

Sc.r.a.pe out all the dead and rotten material, cleaning down to the sound heart wood. Then fill up the cavity with a rough cement, being careful to exclude all air and finishing with a smooth, sloping surface so as to drain away all moisture. This treatment will probably prevent further decay and often acts as a substantial mechanical support.

Trees which are badly split or which have so grown that a heavy crop is likely to break them over should be braced with wires or bolts.

Where the limbs are close together a bolt driven right through them with wide, strong washers at the ends is very effective in strengthening the tree. Where limbs must be braced from one side of the tree across to the other wires are the best to use. They may be fastened to bolts through the limbs with wide washers on the outside hooks on the inside, or by pa.s.sing the wire around the branches. In the latter case some wide, fairly rigid material such as tin, pieces of wood, or heavy leather should be used to protect the tree from the wire which would otherwise cut into the bark and perhaps girdle the limb.

COST.--For the benefit of those who would like to get some idea of the probable cost of renovating old apple orchards, the following estimate made by the writer in a recent government publication on this subject is given. This estimate has been carefully made up from actual records kept on several New York farms. Because these costs are very variable according to the condition of the orchard, both maximum and minimum amounts are given per acre for the first year only.

Minimum Maximum cost cost