A study of the changes in the volume of fresh fruits and vegetables handled by middlemen operating in the Chicago South Water Market, 1938-1949

241 Pages·010 MB·English

by  Buttersworth, James Donald

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A STUDY OP THE CHANGES IN THE VOLUME OP PRESS FRUITS AND
VEGETABLES HANDLED BY HIDDLE11BN OPERATING IB THE CHICAGO
SOUTH WATER MARKET , 193S-1949
A DISSERTATION
SUBMITTED TO TEE GRADUATE SCHOOL
III PARTIAL FULFILLI,DENT OP THE HEQU IREMENTS
for the degree
DOCTOR OP PHILOSOPHY
PieId of Marketing
James Donald ^utterworth
Evanston, Illinois
August, 1950
ProQuest Number: 10101240
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PREFACE
This is a historical study of the second largest
wholesale fresh fruit and vegetable market in the country• The
period covered by the analysis is one in which great changes in
production, marketing, and transportation took place* The
purpose of the study is to determine and account for changes
in the volume of fresh fruits and vegetables handled by
middlemen operating in the Chicago South Water Market* For
the purposes of this study, the South Water Market should
be understood to include not only the wholesale middlemen
whose businesses are located within the geographical limits
of the Market as described in Chapter II, but also those
chain retail companies, cold storage warehouses, and out lying
wholesalers who utilize the services and facilities of
the Market•
Acceptance of the conclusions and recommendations
should be made only with full recognition of certain lim­
itations inherent in a study of agricultural production aid
marketing* The basic limitation is related to the use of
the United States Department of Agriculture data on the
production, arrivals, and unloads of fresh fruits and
vegetables* The Department admits that its published data
on the volume of fruits and vegetables produced in the
several states are only estimates. They make no claim to
measure precisely the actual tonnage volume* The same
reservation is made with respect to arrivals and unloads
of fruits and vegetables in the Market, particularly those
arriving in trucks, as opposed to rail freight cars, ^o
attempt is made by the Department to claim complete accuracy
601773
ii
in reporting these data. They are admittedly estimates,
hut they are estimates made by persons with Intimate
knowledge and experience in the field of agricultural
marketing; and as such, they are the only reliable estimates
available to anyone, whether private individual or govern­
mental agency* The data used in this study are those used
by the federal government as a basis for economic planning
and control, and hence, for the purposes of this study, may
be considered reliable.
A second limitation rests on the adjustments in the
published data, made by the writer. The details of these
necessary adjustments are fully explained In the text, but
it should be recognized that they are based on estimates
of the true situation. These estimates were obtained, and
employed in the calculations, only after consultation with
those persons most acquainted with the South Water Market and
its operations, and are believed to be based on realistic
as sumpt ions •
Those individuals to whom a debt of gratitude is
due for their assistance In gathering, interpreting, and
adjusting the data used in the study include Walter W. John,
Chief of the Information Branch, Midwest Area, Production
and Marketing Administration of the U. S. Department of
Agriculture; J. A. Hunter, South Water Market Agent of the
Market hews Service, TJ. S. Department of Agriculture;
N. Abramson, Secretary, the Produce-Packer Publishing Com­
pany, Wheaton, Illinois; George Bredeson and Natalie Rae,
South Water Market Credit Association; and Perry Stern,
General Manager of the Fruit Sales Company, Chicago
All of these, and others, gave generously of their time,
experience, and knowledge.
Acknowledgement must also he made to Professors
Ira D. Anderson, James R. Hawkinson, and Richard M. Ciewett
all of horthwestern University, for their invaluable assis­
tance in the form of criticisms and suggestions.
J. D. B.
B1oomIngt on, IndI ana
Jiily, 1950
TABLE OF CONTENTS
Page
LIST OF TABLES....................................... . vii
LIST OF ILLUSTRATIONS............................. Ix
Chapt er
I. INTRODUCTION............................. 1
Functions and Importance ox* the
South Water Market
Objective and Scope of This Study
Contribution to Marketing Knowledge
II. A DESCRIPTION OF THE PHYSICAL FACILITIES AND
THE MIDDLEMEN OF THE SOUTH ViTATER MARKET • • . 8
Physical Facilities for Receiving
Incoming Shipments
Organized Wholesale Markets
Markets and Facilities Included
In the Study
III. ANALYSIS OF THE VOLUME OF FRESH FRUITS AMD
VEGETABLES MARKETED IN THE SOUTH WATER
MARKET.................................... 34
Analytical Procedure
Production of Fresh Fruits and Vegetables
Comparison of Production and Arrivals
IV. A COMPARISON OF THE ARRIVALS AND UNLOADS
OF FRESH FRUITS AMD VEGETABLES IN THE
SOUTH WATER MARKET.......................... 65
Comparison of ^otal Arrivals and
Total Unloads
Comparison of Arrivals and Unloads
by Commodity Groups
Summary
v
Chapter Page
V. ANALYSIS OP THE TRANSPORTATION SERVICES
SUPPLYING- THE SOUTH WATER MARKET................82
G-eneral Comparison of Rail and
Truck Transportation
Analysis of Transportation hy
Commodity Groups
The Use of Air Transportation in
Supplying the South Water Market
Summary
VI. CONCLUSIONS AND RECOMMEND AT IONS . . . . . . . .122
Relationship Between Production Volume
and Arrivals Volume
Diversions to Other Markets
Effects of Transportation Changes
Summary
Re c ommendat i ons
Appendix
A. SOURCES OP INFORMATION.............. .137
B. SELECTION OP COMMODITIES, COMMODITY CLASS­
IFICATION, AND GEOGRAPHIC AREAS OP PRO­
DUCTION ....................... .142
C. SELECTION OP THE PERIOD COVERED BY THE STUDY. .148
D. ADJUSTMENTS OP THE DATA TO ASSURE HOMOGENEITY .153
S. REFERENCE TABLES. ..................... 162
/P. SUPPLEMENTARY GRAPHS............................189
BIBLIOGRAPHY. . ...............................223
VITA..............................................227
LIST OP TABLES
Table Page
1* Production of Selected Fresh Fruits and
Vegetables in the United States,1938-1949• • • 42
2. Percentage of Total United States Fresh
Fruit and Vegetable Production, By
Commodity Groups, 1938-1949» » • » • » • • • * 44
3, Percentage of Total United States Fresh
Fruit and Vegetable Production, By
Geographic Areas, 1938-1949.................. 45
4# Percentage of United States Citrus Fruit
Production, By Geographic Areas,1938-1949• * • 60
5. Arrivals and Unloads of Selected Fresh
Fruits and Vegetables in Chicago, 1938-1949* . 57
6* Percentage of Truck Crop Arrivals Unloaded
in the Market, By Area of Origin, 1938-1949. « 70
7. Percentage of Non-Citrus Fruit Arrivals
Unloaded in the Market, By Area of
Origin, 1938-1949, • * • • * • . . * • • • • • 74
8. Percentage of Potato Arrivals Unloaded
in the Market, 1938-1949 . . ♦ ............... 76
9. Percentage of Citrus Fruit Arrivals Unloaded
in the Market, By Area of Origin,1938-1949 « • 79
10* Percentage of Total Arrivals Entering the
Market by Rail and Truck, By Area of
Origin, 1938—1 9 4 9 • • * • * • * • • * * • • • • 94
11* Percentage of Total Truck Arrivals,
By Area of Origin, 1938-1949 .......... 97
12* Percentage of Total Truck Arrivals,
By Commodity Groups, 1938-1949 • * • • « . * « 99
13. Percentage of Truck Crop Arrivals Entering
the Market by Rail and Truck, By Area of
Origin, 1938-1949* ............... * • * • * » 101
14. Percentage of Truck Crop Truck Arrivals,
By Area of Origin, 1938-1949 • • • • • • . . . 104
vil