University of California College of Agriculture Agricultural Experiment Station Berkeley, California \ The Economic Importance of the Fresh Fruit and Vegetable Industries in California by Sidney Hoos UNIVERSITY OF CALIFORNIA LIBRARY COLLEGE OF AGRICULTURE DAVIS April 1950 Contribution from the Giannini Foundation of Agricultural Economics Mimeographed Report No. 105 The Economic Importance .t*f the Fresh Fruit and Vegetable Industries in California^ / Introduction California has long and widely been known as the dominant producer and Marketer of fruits, vegetables, and tree nuts. As the country has grown and developed in population and industry, and as the national economy has progressed, the fruit and vegetable industries have kept pace and in various major sectors have even outdistanced the rate of growth of the country in general. Such a marked economic position of the state's fruit and vegetable industries has developed along with advances in cultural practices, technology, marketing, and merchandising, as well as the rapid advance in food science which has discovered and disseminated the nutritional components of fruits and Vegetables. Moreover, the dominant economic position attained by the state's fruit and vegetable industries has occurred in the face of distant major markets such as the eastern seaboard and even foreign countries. But such a situation has also served to strengthen the economic ties between California and the rest of the country; and, in addition, ha.s amplified the economic effects of the fruit and vegetable industries in the s.tate. Such an amplification comes about through economic effects including transportation and employment in the distribution industries. Hence, the economic importance of the fruit and vegetable industries in Cali- fornia also bears upon the economic and marketing attributes of other industries a/ Part of the statement and testimony presented by Sidney -Hoos, Associate Professor of Agricultural Economics, University of California, Berkeley, March 16, 1950 at the Hearing on Tolerances for Poisonous or Deleterious Sub- stances on or in Fresh Fruits and Vegetables held by the Federal Security Administration, Food and Drug Administration, Washington, D. C. In collecting the data and preparing the statement, the assistance of the following is gratefully acknowledged: C. 0, McCorkle, Jr., Assistant Specialist in the Experiment Station,- and-I,Dubov, Researoh Assistant in Agricultural Economics , y. » rl i.:;^,.:: o 1 in • 2.. and in other parts of the country. The fruit and vegetable industries in California are multiple in terms of utilization. One method of categorizing the industries is in terms of utiliza- tion, of which the two major categories are fresh and processed, with the latter in turn separated into canned, dried (or dehydrated), and frozen.. Other break- downs may be noted, such as various forms of canned (natural strength or concentrated) juices. Such a detailed classification of utilization is not directly pertinent here, however, since we are primarily concerned with the fresh fruit and vegetable industries. In other terms, this statement is con- cerned primarily with those California fruits and vegetables which are destined for fresh distribution and consumption. It should be noted, however, that there exist strong economic interconnections among the various forms of utilizations, and economic developments in the fresh-use industries have ramifications on the processing industries. Although the economic importance of the California fresh fruit and vegetable industries is widely recognized in the state itself, and equally as well in the national fruit and vegetable trades, it is pertinent here to outline the signi- ficant features for those who have other major interests. Such an objective, to be attained in adequately clear and brief terms, must draw upon various economic indicators of importance. There are a substantial number of such measures available. They include acreage, volume of production, value of production, man-hour employment, and the creation of labor payrolls. In addition there are market factors such as the hiring and purchase of transportation services and icing j seed, fertilizer, and other cultural services; packing house and package facilities; terminal market, sales, and advertising services. All of these and others too bear upon the economic importance of the California fresh fruit and vegetable industries, not only to the state and region, but also to the country at large. „ " \ > • •••••• • i>&> «<.* '•s.i. •.[: .; ■'B ■ic ;:;t^'":0.:-: --iM "" 5-. rtfttotatfe! fid 4 * M; t: V> t'lft'.'J'.." ! I . si- , ' .* l' - «»«• .1-1 ' " - . 1: ^ Ha 3 r Summary - Judged from the bases of various economic indicators, the California fresh fruit and vegetable industries rank high in position of economic import- ance to the state and region. In terms of utilization of material and human resources, volume of production, creation of employment and labor payrolls, satisfying consumers' needs and wants, and the stimulation of money and real income, the California fresh fruit and vegetable industries contribute in an important manner to the agricultural and general economy. In nonmeasurable terms, also, the state's fresh fruit and vegetable industries have significant economic effects upon the position and welfare of other industries. For such reasons, as well as the huge volume of fresh fruit and vegetable products produced in the state, California is justifiably and widely recognized as the dominant producer and marketer of fresh fruits and vegetables among all states in the country. Drawing upon most recently available data reported by the United States Bureau of the Census, there are indications that about 12 per cent of all Cali- fornia acreage classified as cropland is devoted to the production of fresh fruits and vegetables. Moreover, the production of such products utilized about 20 per cent of the state's irrigated land. In the 1948 marketing season, over 1,136,000 tons of California fruits and tree nuts were marketed in fresh form, and close to 2,300,000 tons of vegetables for fresh consumption were produced in the state j making a total of somewhat under 3,500,000 tons of fresh fruits, tree nuts, and fresh vegetables. Cash receipts to California farmers from their marketings of fresh fruits and vegetables constitute nearly one third of the total United States cash receipts for the same farm products. The importance to the state is brought into sharper focus by the fact that California farmers' cash receipts from \^;jc-t^,:--.-i- •: -p tjffff?-.jrf«:.*s« : - ■«''■ f.'i* vvir- ^^^f^' #l*iH*f , *• *h*. ^Mfe***}^ ^•M^'^ Vvv* ?.\*!#:U\*&<, »t«-i}.'-^- /••• |»2 «; f'v^ ^ W«|fir*5 V-U*JH ;} Z-Z- '. • r..v '^^i -w^- ifeiC*?? tell 4. marketings of fresh fruits and vegetables represent about 70 per cent of the total cash receipts from the farm marketings of all crops in the state. The United States Census of Agriculture (1945) indicates that 65,731 Cali- fornia farms reported as selling fruits and nuts; and the same official source indicates that 12,816 California farms report the sale of vegetables. Although more recent data are not available, indications are that the current number of California farms selling fruits, tree nuts, and vegetables has not changed significantly during the past several years. Presently, close to 2,000 fresh fruit and vegetable packers and shippers are operating in California, About 190 million man-hours are currently employed annually in the produc- tion of California fresh fruits and vegetables j fresh fruits accounting for 115 million man-hours, and fresh vegetables accounting for 74 million man-hours. The creation of such employment is associated with labor payrolls aggregating, in 1948, to 93 million dollars in fresh fruits plus 64 million dollars in fresh vegetables. For transportation and closely related services, California fresh fruit and vegetable shippers annually pay about 160 million dollars, plus an unknown but significant amount of money to automobile truckers of fresh fruits, melons, and deciduous fruits. The purchase of transportation service is not only a major element in the cost structure of California shippers of fresh fruits and vegetables, but also significantly contributes to the income of secondary industries. The producers, packers, and distributors of California fresh fruits and vegetables contribute in a significant, if not clearly measurable, economic manner to the many industries from which they purchase supplies and services .. Examples are fertilizers, machinery, nurseries, ice, petroleum, and lumber, among many others, 'Hence, the economic position and importance of the California ' ' ' ■■ ' • ■ ... • ' ft. i * ."• : •tr-v r -. W .-. 'r.u-. '?■£>». n&Utt'i tU'rrt'i iir&iuJ i*.$y i nr. . >r ;' y'i •;: jt'i d '•' > ' ■ \# *'-&4*M^™'x-itii»< 'iqX: j"} Swum* 't Jl .|;>:: ! :.>v . ; v 0 j«tf&rf4V3& .fl&f .. , 1 • ■ ■ i i . i , • , • * ■ fresh fruit and vegetable industries have a strong impact on the economic status of many other industries in California and other states. The preceding summary highlights are developed in some detail in the following sections of the statement,. Each of the various economic indicators aro considered separately. Some , E conomic Indicators Acreage,— The total acreage in California devoted to tree fruits, -nuts, . and truck crops (excluding potatoes) approximates 2 million acres each year. ■ Tree fruits and nuts account for about 75 per cent of the total, with truck crops accounting for the other 25 per cent.!/ According to the 1945 Census of Agriculture, 2/ the bearing acreage of tree fruits alone represented 16;4 per cent of the 9,167,000 acres of cropland in California, . It is estimated that about half of the total acreage of tree fruits in the state is utilized for products going into fresh consumption. Henoe, about 8 per cent of the cropland reflects tree fruits consumed fresh. During the same period, however, 4 per cent of the total cropland was taken up by truck crops produced for fresh con- sumption. Therofore, the 8 per cent for tree fruits going to fresh consumption, supplemented by the 4 per cent for truck crops going to fresh consumption, indicates that about 12 per cent of the state »s total acroage classified by the Census as cropland was devoted to the production of fresh fruits and vegetables. The position of the acreage indicator is brought into sharper relief when irrigated land is considered, an appropriate procedure in view of the importance to the state of irrigation and its high investment costs which can be supported only by intensive cultivation. The Bureau of the Census reports that in 1945 there were 4,955,000 acres of irrigated land on California farms.-§/ Making 2/ See page Iff for listing of footnote references indicated in the text. • .rr.-h- t-r v:4jv- •-.^n'-.n'TC'ar'.f -t^»iafcW*rtt< 'fvirtltt-' %> iifcas-*.'i r.-%. " 'i.I.'r'j'o.rn ':wr -ffca-fcy .;Cf^oV' yitf '».*» f-.'.rir:-torr v v &f* t* « ■ •" ■. t »'«■?■' i '-■•> f -iliWi t-mf •as iMstceSf} *MR£ a»ttfcwj?©A <*« i9q ; £; •$•1'- ■■.•:lh-fV.t*' . •».:.*1At ;* \CiB«»tin':i »•> tf*C 0 •.*;>••'••••.: 7 UinJ Itt'tf-wi* ' k- y* ' " .r\! : '-y- ; 'r : -*.v •3083 b^-f.U.; 4 ?;; Aii '••'J^is Oil* ..-.f .Xf.Wlr "V :."?<. J- ?s* fc' '.VS.*?: .ifiivfi* •7JGSS 14 4 (SX«W!*-X«* ♦* £»> *.T^J. • tt i-J; •^•8*?-&WG .f^^: .- ' -vs'tsff^ ifrtftfttft t ;>: *v. n :;rfi • .. ! *H-i>. v :<\ ' ^fUK**^^ ; ; -' ; j«dS^r5i^iii..-; rr jqtwfft -ifr.yja^ . • c xrbt&tt j&'&w*'' iM^k^yi &'?C ■.•;».•, '.vl: Jt'.3"i&,v&?ci*t r- d . te±*.tp&i#r % i 'nrffoiawi .-iftf?- "r«K~..'-.-*it v ,l ?..*••::> .'•.• < t-»^;;iy ^coftrvr; «»««^C' .a^- •u.<--^*a/ ; &-4-.-*t f '! •' »«'.-• -'.5 -f ■■'Jut ■v/. • .J-S^.-^l.^: b^.tV^' .::..^t < -CM.?ati{-i-JVi.-X4*i>«y <>\'Ji&&J ^vl? <^f-« 6. allowance for nonirrigated orchards, tree fruits going into fresh consumption occupied about 15 per cent of the irrigated land. Truck crops for fresh use, taking into account the common practice of doubled cropping in vegetables carried on in many parts of the state, occupied about 5 per cent of the irrigated land; Hence, the state's acreage devoted to the production of fresh fruits and vegetables is estimated to be as much as 20 por cent of the total irrigated land in the state. An incomplete but strongly indicative reflection of the state's acreage in fruits and vegetables for fresh consumption is shown in column 1 of table III. The tabulation is incomplete in the sense that data for some minor products are not shown since they are not available. Hence, the figures which pertain to 1948 are conservative « They show that for the items considered, and all major and some minor items are included, close to 770,000 bearing acres arc devoted to fresh fruits and tree nuts, and almost 1,140,000 acres devoted to fresh vegetables . For fruits and tree nuts, the inclusion of nonbearing acreage would increase the numbor of acres even more* Production .—The total production of some fruits and vegetables for fresh use may vary from year to year* The utilization of the production may vary in response to the size and quality of the crop, foreign trado conditions ? the situation in other producing areas, and especially relative price roturns from alternative utilization outlets-. Some California fruits, such as citrus, plums^ nectarines, bush fruits, chorrios, and avocadoes, are in large part utilized in fresh form. For other fruits,: such as apples-, apricots., grapes, pears,, and clingstone peaches, a significant proportion of their total output is processed. The volumes of the various items going into fresh consumption in 1948 are summarized in column 2 of table IH.For the items shown there,, over 1,136,000 tons of fruits and tree nuts were marketed in fresh form by California shippers; •T >.W,v-v r: *':>•. .... f^Kft'e*. M/NV.S'.f v .f. i :"?..> < ^..i-« i ■ 'j. f .1 -.t.y • •ft • cot' ■ ^ ?r= ; >■■<),> -*i V.y t 5 :r - I - .;. ».« r 7. and close to. 2,300,000 tons of vegetables for fresh consumption were produced, making a total of somewhat under 3,5 million tons of fresh fruits,, tree nuts,, and vegetables, In terms of production, the most important fruits for fresh use are citrus,, pears, peaches, grapes, and apples; for vegetables, the most important items for fresh use are lettuce, melons, tomatoes, carrots, and celery. The pertinent statistics on those and othor items are summarized in the attached tables; hence, an account of their details are not necessary here. For selected items, however, the salient featuros will be noted in more detail below. Farm Value .--The total cash roceipts from California farm marketings of tree fruits and nuts and vegetables represent about 70 per cent of the total cash reoeipts from the farm marketings of all crops in the state .4/ Cash roceipts from the sale of those commodities in California constitute nearly one third of the total United States cash receipts for the same commodities. Hence, the state of California alone has the dominant position of accounting for as much as one third of the country ,! s cash roceipts for the farm marketings of the products under consideration. For the. specific commodities noted in the tables attached hereto, the 1937- 1941 average farm value of California production for fresh use approached 187 million dollars. Fruits produced for fresh consumption were valued at 111 million dollars, and fresh vegetables totaled 76 million dollars. Fresh Cali- fornia citrus fruits alone wore valued at approximately 65 million dollars, or over 58 per cent of the state's total value of all fruits for fresh use. In 1947, California fresh fruits and vegetables had a total farm value of more than 462 million dollars, with fresh fruits accounting for 236 million dollars and fresh vegetables totaling 226 million dollars. In 1948, farm prices of fruits and vegetables generally were under the levels of war and immediate postwar years. Nevertheless, in that year, farm valuo of fresh production was ■.,* "'•i;f* • ••i-tffc.f. •ar*^io'f?.'iv* v ■■ ^t- v -f ., ; 5!.y* (.^i-j. ,: ■ ./-v. • tvif,.>".v{lr •:^••:* At •:- ' k i'"'-- '•■!*«? ■' "7 £v?i« ."V / •• •.'■••'.ti^-'/.ry: .j'. " <:•'. -'".1 '.f^W i ; { .»•• j.; ■ » ■■cioj'/X.'x^iur'^ih,'^4} l-im? v T';^^ ••.•:<«••■••• ! " : M . '''.'••.«-:'• 'r?o'f .-sJ/.l--: •.: g & .• .v g&j :•»;, , s t f«i : r *>>' Jtjoi.i: :. - J; ... i/.-j .• b.,s j-, .:• -U« r ;: ^•'■.•".••ih.i^tf^ T. <..-7..v.t.-. ? :M.U r •cZ&-'ifBt.&iq')fi£%'.2fjr,ft% i&i ht- c^c-iJ'.+ar.'^isrfj 4« fries** 'SJM t^.^W# ■Li nth* . ';.'i t.-J :^l,,ria,/;^, '^iv.- • t ^.£.,!.I:W:; .".v.*v ' >f i- wr< 8. 418 million dollars, with 205 million dollars representing fresh fruits and 213 million dollars representing fresh vegetables** In terms of farm value, as well as other economic measures, California's production of fresh fruits and vegetables exceeds by far that of any other state in the country* Business Establishments . — The number of business establishments associated with the production and merchandising of fresh fruits and vegetables involves firms at the farm level on through the distribution pipeline to the retailer who sells directly to consumers. A complete accounting of the number of such firms at the various levels of distribution has not been attempted, although data have been developed for particular significant areas of the distribution pipeline. According to the 1945 Census of Agriculture J/ in 1940 there were in Cali- fornia 61,698 farms producing and selling fruits and nuts. In addition, 10,957 farms were reported as producing and selling vegetables. Hence, a significant number of California farms produced and sold fruits, nuts, and vegetables. In 1945, the number of California farms reporting the sale of fruits and nuts increased to 63,751, and during the same period the number 'of California farms reporting the sale of vegetables increased to 12,816j such figures reflect an increase over the corresponding number of farms reporting the sale of fruits, nuts, and/or vegetables five years earlier. Available evidence suggests that the current number of California farms producing fruits, nuts, or vegetables is not significantly different from the data available in the most recent Census of Agriculture, The packing and shipping business in fresh fruits and vegetables in Cali- fornia is an important element of the state's economy.,. In 1949,. approximately 1,950 fresh fruit and vegetable packers and shippers operated in the state.^/ Some were interested in packing as well as shipping,, while others were primarily * An additional 25 million dollars for minor vegetables., gives a total of 238 million dollars for fresh vegetables and a total of 443 million dollars for fresh fruits and vegetables. •••^,<;v1^. v; ^:!;-■■ , , , * ; - '-*' •' ■ i" '.i'M&f-^rx-.- "r tora-J s * uj r. : . f 10. and were about offset by an increase in the man-hour employment in fresh vegetables. The figures for individual commodities are shown in tables I, II and III, appended. Estimates of total payroll for producing, harvesting, hauling, in the case of vegetables also field packing, have been made. These estimates are based on man-hour employment and average wage rates, with adjustments reflected for wage differences among operations and for the average number of hours devoted to various tasks. In the five-year period 1937«»1941, the annual average payroll for operations in fresh fruits and vegetables is estimated at 58 million dollars, with approximately 36 million dollars for labor in producing fresh fruits and the remaining 22 million dollars going for operations in fresh vegetables. By 1947, the total payroll increased to nearly 161 million dollars, reflecting an increase in both the total man-hours of employment and particularly an increase in farm wage rates. For 1948, total payrolls declined to 157 million dollars, with wage rates remaining nearly constant and total employment falling slightly. Column 7 in tables I, II, III shows estimates of payrolls, by commodities, for producing, harvesting, and hauling in the case of fruits, and producing, harvest- ing, and field packing in the case of vegetables. Transportation . — As mentioned earlier, the California fresh fruit and vegetable industries and their economic factors bear upon other industries which may be segregated into two groups. One group of such industries are those whose business activity depends, in whole or in part, upon the business they receive from the distribution of the products of fresh fruit and vegetables. Examples include icing companies, transportation firms, owners of terminal market facili- ties, private and auction, local truckers, advertising agencies, to mention only a few. Another group of related industries are those whose business activity depends upon purchases of production equipment and services by the producers I .ilvn- J 36 tii i-Wi. El* . v ' .' ;> r •I bin:. » i • • • * ft; 11. and packers of fruits and vegetables. Examples here include lumber mills, box factories, farm equipment companies, irrigation districts, insecticide manufac- turers, among others. A related industry, whose activity depends to a considerable extent on the state's fresh fruit and vegetable industries, is transportation.- It is of par- ticular importance in view of the long distances over which California fresh fruits and vegetables are shipped. Railroads and trucking companies are involved and, in some cases, ocean shipping lines. During the 1949 marketing season, California deciduous fruit and grape shippers paid to railroads alone nearly 34 million dollars;-/ in addition, other substantial monies were paid to truckers, although no estimate of the amount involved is presently available. During the 1948 marketing season, California vegetable and melon shippers paid an estimated 66,3 million dollars to rail- roads,^/ Also, in addition, the California-Arizona citrus industry paid to both railroad and trucking companies some 60,8 million dollars for transporta- tion services,^/ The combined total of the figures cited aggregate to over 160 million dollars. And it must be noted that not included in that total are payments made to trucking companies (excepting the citrus figures which include trucking) who transported as much as 20,000 carloads of vegetables and melons from California, 12/ Other Services .— Although no monetary estimates are available for the economic indicators of certain other service industries, it is pertinent that they be noted and their relation to the California fresh fruit and vegetable industries recognized. Examples include seed, nursery and fertilizer firms, as well as farm equipment and packing house supplies companies. Vegetable seeds are relatively expensive, and seed companies in the state derive a significant portion of their income from sales to vegetable growers in 12. the state. Another example is that of nurseries which furnish young trees, citrus, deciduous and nut, to California farmers. Such derivative industries aggregate into a significant part of the state 's agricultural and general economy. Still another important example is that of fertilizer companies which sell the large amounts of fertilizer applied by California growers of fresh fruits and vegetables. Farm equipment companies servicing the state's growers have been noted above, but mention must also be made of the industrial equipment concerns which sell their machinery to packing houses. The various derivative industries, which service the growers and shippers of fresh fruits and vege- tables, are important contributors to the economic functioning and well-being of many cities and towns in the state} for example, Santa Ana and Covina, among others, are dependent on the citrus industry. In addition, towns such as Hilts, Westwood, Susanville, and others are dependent on their lumber mills which make box shook and boxes used in the shipment of fresh fruit. These are significant examples of how a host of other industries have been developed and built around the fresh fruit and vegetable industries in California. Ice companies, as well as mechanical refrigeration concerns, find a lucra- tive source of revenue stemming from the California fruit and vegetable indus- tries. Ice companies in the fresh shipping areas of the state are heavily dependent on those industries for their operations. Large quantities of ice are used in the transportation of fresh fruits and vegetables shipped from the state. In pretransport packing alone, from 7,500 to 10,000 pounds of ice are used per car. And, in addition, ice is packed into the crates in packing commo- dities such as lettuce, carrots, and spinach. Out-of-state icing services are also drawn upon while railroad cars are in transit to the eastern markets. In producing areas, petroleum companies derive a large portion of their sales receipts from the sale of gasoline, oil, and lubricants to producers of fresh fruits and vegetables and nuts in the areas where they are grown. Here, 13. also, should be noted the substantial quantities of oil used by citrus and other semitropical fruit industries in their frost-protection operations. The preceding comments and examples clearly emphasize the interrelations existing between California fresh fruit and vegetable industries and other industries. Such interrelations significantly amplify the economic importance of the fresh fruit and vegetable industries in California^ Some Selected Commodities The preceding comments apply generally to groups of California products among fresh fruits and vegetables produced in the state. The economic import- ance of such products may be brought into sharper focus by giving some attention to several selected commodities. In such procedure, we shall briefly consider oranges as an example of a citrus fruit, pears as an example of a deciduous fruit, and lettuce as an example of a vegetable. Oranges . — The rapid expansion of orange acreage in the United States over the past half decade is one of the phenomenal developments in American agricul- ture. The growth was of such magnitude that a prewar average acreage (during 1937-1941) of over 520,000 acres was attained. Since then, the country's acreage expanded even more so that in 1947-48 there were almost 590,000 acres.. Of that amount, about 42 per cent is accounted for by Calif ornia» Due to increasing yields, production expanded even faster than acreage in the country. National production averaged almost 80 million boxes during 1937- 1941, but reached over 114 million boxes in 1947-48. In that same year, Cali- fornia's orange production was 46.5 million boxes or slightly over 40 per cent of the nation's total. On-tree farm value increased from 72.4 million dollars as the 1937-1941 prewar average to 112 million dollars in 1947-48 j and California on-tree farm value of oranges was 60 million dollars or 54 per cent of the country's over-all figure. ••••• I •■■ • • '• • . V' i^:jT,.r yi -,r • i^j* .J. g$ » Stf-gMjM iUf*f$ Isb^M) ■ ■ i (fit- V.: 14. California shipments of oranges in 1948 amounted to 36,200,000 boxes, with the large proportion going to the eastern markets in the Middle West, New England states, Middle Atlantic states, and Canada* In the production of such shipments, over 36 million man-hours of employment were hired in California, and over 31 million dollars were allocated for labor payrolls. Such summary figures clearly and emphatically indicate the magnitude and importance of the fresh shipping orange industry to California. Pears .—Although California pears are utilized in multiple outlets, a sub- stantial proportion of annual production is used fresh. This proportion varies from year to year, depending upon relative market prices of pears for canning compared with fresh shipping pears. As an average, reflecting normal market- price relationships, almost 50 per cent of the crop goes to fresh channels. The farm value of total production in 1948 was over 29 million dollars, of which over 6 million dollars are accounted for by fresh sales by growers. Shipments of California fresh pears average about 115 thousand tons annually. Almost 4 million man-hours of employment were used in the cultural care and harvesting, and almost 1.5 million dollars are estimated as the corresponding labor payroll. These figures pertain to the prewar average, in view of the highly variable interaction between the fresh-use and canning markets during the postwar years. During the postwar years, labor payroll would be substantially higher because of the higher wage rates as compared with the prewar average. It can be noted that the fresh-shipping pear industry is of major economic import- ance to pear producing areas in the state, such as Mendocino and Lake counties. Lettuce .--California is the leading state in the country in the production and shipment of lettuce. Iced railroad cars of lettuce originating in Cali- fornia are destined for all parts of the country, including the smaller markets as well as the large terminal markets. ... iJx. c.r .r- . '/vis- T is* In 1948, almost 128^000 acres in California were used in the production of lettuce. About 770,000 tons of lettuce were produced, of which almost 600,000 tons wore shipped out of the state. The farm value of such production approaahed 70 million dollars $ the largest gross money returns to farmers for any single fresh vegetable and greater than the amount for any fresh fruit except ? citrus fruits-. Man-hour employment in the production and harvest- ing of California lettuce amounted to in excess of 21 million man-hours, and the corresponding labor payroll reached 17*8 million dollars. Specialty Crops.— In a consideration of the economic importance of the fresh fruit and vegetable industries in California, due consideration should be given to the major and widely known crops-, but the many minor and less well-known crops should not be entirely neglected. Although each of such minor crops may not loom large by itself, in total they aggregate to a significant element of the state *s agricultural industries. Examples of specialty crops to be borne in mind include: broccoli, cactus, chestnut, chicory, chives, eggplant, escarole, filberts, guavas., loquats, mango, papaya, parsley, pecans, peppermint, pimentos, shallots, spearmint, yams, quinces, and garlic. Such crops are of substantial economic importance in the particular areas where they are grown, and they enter into the commercial channels of marketing and distribution. Although economic indicators are not available for all such specialty crops, important measures are available for some. For example, the California Crop and Livestock Reporting Service reports that in 1948: there were 13,000 acres of broccoli in the state, yielding 1^755,000 crates (42 pounds each) with a farm value of $6,932,000; also, there were 1,720 acres of garlic, yielding 112^000 sacks (100 pounds each) with a farm value of $2,352,000, Indicators of such magnitude attest to the economic import- ance of specialty crops and also emphasize the necessity of giving them due recognition along with the major crops in connection with the economic importance of the fresh fruit and vegetable industries in California,. oJbvtfff ' '.'.T'-crjs ,1«>;.-..-. ... ^iV ^XS$* *■&*•. ntfts ^ ■ ■ i r.I.-" : -c-'.*} '-*.! ;: * V-.' : ' S '*">V Q^$#$>. '<- M^-v** '*■,— >• •■ ...» • • • v *># ft jjfck <•:»•; -ftj-{c;r'0 «ffi K-^stf four. 1 8* tori* > v *» rttftto nji j ";.r; r.^sc-'t-iV 'yjfi' ••U>'f.-#>*«-i.'^ft"iii' ;.*-..» 'iWrcvs ->cvi =$tf*Ci . .;;*jr;f;^ ft* v.«f- r H'.:ii: 1?. Note The data referred to and drawn upon in the preceding comments are summarized in the following tables* Where data have been used which are not reflected in the appended tables* the pertinent sources are noted in the text or in the references listed below* The sources of the data in the tables are noted in the footnotes thereto; and where estimates have been constructed, the estimating procedure is also explained in the footnotes to the tables* References 1/ California Crop and Livestock Reporting Service * "Acreage Estimates California Fruit and Nut Crop/' annual issues and "Vegetable Crops in California, Commercial Acreage by Counties, 1939-1948," published April, 1949. 2/ U« S« Department of Commerce, Bureau of the Census. Census of Agriculturo 1945, Vol. 1, no* 33, 3/ U. S. Department of Commerce, Bureau of tho Census. "Farm Census Substan- tial Increase in Irrigated Land." Processed, (no date) 4/ U. S. Bureau of Agricultural Economics. "Farm Income Situation, " May 1948, June 1949. jj/ Produce Reporter Company, The 1949 Fruit and , Produce Credit Bo ok with Classified List of Shippers. 6/ Estimated from records of California Tree Fruit Agreement, 7/ Estimated from records of Early Apple Advisory Board, Sebastopol, California, 8a/ Estimates based on records of California Grape and Tree Fruit League. 8b/ Data from California Fruit Growers Exchange, Los Angeles, California, 9/ Data in letter (February 11, 1950) from California Fruit Exchange, Sacramento, California, 12/ Data in letter (February 3, 1950) from Western Growers Association, Los Angeles, California, li/ Data from California Fruit Growers Exchange, Los Angeles, California. i^fii — * •- . n TABLE I Acreage, Production, Value, and Related Data for Major California Fresh Fruits and Truck Crops Average 1937-1941 r Groups and items Bearing acreage I Production for for fresh use fresh use Farm value of fresh production Fresh shipments ! In-state ' Out-of-state In fresh production Man-hour employment Payrolls (labor) Fresh fruits: Apples Apricots Grapes Pears Plums Peaches Cherries f Oranges fJsJSJ Lemons^/ Grapefruit^/ Summer Desert^/ Avocadoes Dates Persimmons Pomegranates Figs (all) Olives (all) Walnuts Almonds Total fruits and nuts acres 16,276 5,850 100,946 22,799 21:, 621 12,411 7,232 / 232,700^ 52,700 8,200 21 , 000 12,803 2,726 1,402 615 17,058 24,043 119,703 73,841 753,926 tons 93,096 17 , 500 531,840 114,520 62,700 90,480 12,150 47,500 12,300 1,200 3,900 11,992 4,330 3,855 2,170 6,170 43,500 54,720 14,720 1,128,643 ^6. 1,000 dollars 2,079 800 12,232 3,294 2,510 2,232 1,628§^ 47,800^/ 13,800C/ 1,063^/ 1,212^/ 1,330 557 118 41 342 3,835 11,523 4,328 110,724 tons tons 1,000 man-hours 75,120 11 , 300 59,480 25,660 12,300 67,020 6,120 17,976 6,200 472,360 88,860 50,400 23,460 .5,760 d/ 40,500 8,100^ NA NA NA NA 5,310 42,580 NA NA 860 920 NA NA 2,702 883 16,253 3,990 4,476 2,433 1,642 35,370 13,966 599 1,722 615 602 NA NA 733 3,005 9,217 3,914 102,122 1,000 dollars 960 293 5,754 1,414 1,578 856 579 12,566 4,901 131 609 218 213 NA NA 253 1,058 3,232 1,403 36,018 (Continued on next page.) Table I continued. Groups and Farm value Fresh shipments In fresh production Bearing acreage i or i resn use Production for fresh use of fresh production In-state Out-of-state Man-hour employment j Payrolls | (labor) i 2 3 4 5 6 7 acres tons 1,000 dollars tons tons 1,000 man-hours 1 ,000 dollars Fresh vegetables: Asparagus Melons Tomatoes 28,176 39,540 27,370 25,728 172,568 117,448 3,821 7,958 7,690 1,145 73,360 72,191 24,583 99,208 45,257 3,184 4,429 6,158 1,137 1,569 2,188 Peas Spinach Strawberries Artichokes Lettuce Cauliflower Catbage Carrots Celery Beans (snap) Onions Total 46,210 2,840 5,506 10,120 99,500 15,482 7,560 21,940 13,630 10,900 6,434 61,710 15,129 15,300 17,400 494,060 86,062 64,660 195,270 192,790 25,095 64,250 5,812 744 2,608 1,620 22,108 2,734 970 6,857 7,462 3,871 1,565 28,149 1 C TOT 12,979 NA 102,585 52,116 68,120 90,224 NA 44,812 33,561 c O 2,321 NA 391,475 O I ,4b4 12,544 127,150 102,566 NA 19,438 7,995 531 5,908 1,022 14,626 2,029 908 6,538 5,642 3,619 1,216 2,844 187 1,800 365 5,169 718 322 2,304 1,879 1,261 475 vegetables 335,208 1,547,470 75,840 63,805 22,238 Grand total 1,089,134 2,676,113 186,564 165,927 58,256 For explanation of footnotes and sources of data see table III. Note . Estimates of man-hour employment and total payrolls were constructed for all commodities, using approximately the same method in all cases. This method, together with the sources employed, is described in detail in this note, M (Continued on next page.) * .-a -;»r nMrfoa ;>•>-• v f 1 • ■ * . ... * i . t • . * 1 . -:t. fet-frr; tfr A v.- I , V. . I •fiSHS ftgf IMS ! * * ;• •- »* • Si fcs Note to table I continued* Estimates were first made on man-hour employment. Basic data concerning the necessary man-hours per acre required to produce the state average yield of each commodity were obtained from three sources: (l) MacGillivray , John H., Arthur Shultis, A. E. Michelbacher, P. A. Minges, and L. D. Doneen. Labor and Material Requirements of California Vegetables . California Agricultural Experiment Station, Berkeley; (2) Burlingame, B. B. Hours »f Man Labor Required for the Production of California Crops . (Unpublished data from his files); and (3) Sullivan, Wallace, J. C. Johnston, and I* J» Condit. Labor Requirements for Producing Certain California Subtropical Fruits . California Agricultural Experiment Station, Berkeley. Using this as a basis and adjusting the variable labor inputs according to physical outputs per acre from year to year, estimates of man-hour labor requirements per acre were obtained. The aggregate reouirements were obtained by a multiplication of requirements per acre by the number of acres produced for fresh consumption. After man-hour requirements were established, the payrolls were obtained through application of going average wage rates to the particular hours of various types of labor required. IVage rates were obtained from two sources: (l) Adams, R. L. Crop Manual ., (fcarly edition and unpublished data from latest revision); and (2) State of California, Department of Employment. California Weekly Farm Labor Report . (Various issues) The total number of man-hours required were segregated into various categories, each viewing a particular rate of pay. The number of hours in each category was then multiplied by the respective average wage rate to obtain the total payroll per acre for each year. Again, the aggregate is the product of per acre payroll and number of acres devoted to production for fresh use. •j . ... (5 •.»!»{•: ^uh ; iOi"' •I't'. '."i U v. C ... ;•>.• .-• ; #V - » * * l.;.'C! 5 - • . - - ■ • • r '• i: s ' . . . . r. *-.. « , , • . '■ S 1 ■ ! • • • : - • >r .. v ,., . . , .. „., ...... . , if .. , , . . . ... ...^ j;;-;^:.-. iv-r^'v TABLE II Acreage, Production, Value and Related Data for Major California Fresh Fruits and Truck Crops Summary: 1947 Groups and items Bearing acreage for fresh use Production for fresh use Farm value of fresh production Fresh shipments In fresh production In- state Out-of-state Man-hour employment Payrolls (labor) 1 2 3 4 5 6 7 acres tons 1,000 dollars tons tons 1,000 man-hours 1,000 dollars Fresh fruits: Apples Apricots Grapes Pears Plums Peaches Cherries , , , OrangesVl/e/ Lemons^/ , Grape fruitV Summer , Deserti/ Avocado es Dates Persimmons Pomegranates Figs Olives Walnuts Almonds Total fruits and nuts 14,730 7,960 109,168 16,278 22,871 14,497 5,966 247,300 66,600 9,500 18,000 3,594 1,202 I 628 5,788 25,210 113,520 95,276 792,530 124,176 20,700 619,200 120,600 70,900 129,600 13,800 54,800 13,800 1,900 5,300 10,160 3,575 2,890 2,700 39,800 58,600 29,000 1,347,841 5,330 1,938 31,517 9,486 9,004 9,180 3,464 f 78.400& 27,600£/ 2,3561/ 1,537.2/ 7, 336 823 297 2,790 454 5,970 22,737 16,182 236,401 86,544 10,800 67,800 29,100 13,400 86,544 5,100 43, 9, 1, o c, HA KA HA HA 2,400 39,200 HA HA 37,632 9,900 551,400 99,500 57,500 37,632 8,700 000*/ 4003 ;-■■*■• i % it - i ■- • * [ ' . • i " ■'•<■■■: ^1 trf *v*v * " 'ii ft - • r I i { 6$ ! " ■ •: j... . f vv: Table II continued Farm value Fresh shipments In fresh production Groups and Bearing acreage Production for of fresh Man-hour Payrolls items for fresh use fresh use production In- state Out-of-state employment (labor) 1 2 3 4 5 6 7 1,000 1,000 1,000 acres tons dollars tons tons man-hours dollars Fresh vegetables: Asparagus 22,870 30,870 8,232 6,924 23,946 3,362 2,890 Melons 66,110 253,947 28,365 74,723 184,224 7,074 6,148 Tomatoes 32,500 175,218 28,095 94,938 80,280 8,352 7,189 Peas 21,900 33,870 5,671 13,288 20,582 4,248 3,652 Spinach. 4,350 13,509 976 13,329 180 561 483 Strawberries 3,050 14,616 8,079 13,443 1,173 4,618 3,501 Artichokes 7,250 15,220 2,283 m NA 834 718 Lettuce 116,400 788,410 77,818 lu^i Uuu fins fiio 17 a fin 0 aul i f 1 ewe r ?1 900 1 18 437 62,935 55,502 2,826 2,443 Cabbage 9,500 76,000 3,078 59,821 16,179 1,103 974 Carrots 23,600 225,800 19,107 52,070 173,730 7,411 6,385 Celery 13,970 318,110 25,332 141,234 176,876 7,516 5,840 Beans (snap) 8,400 23,715 4,305 NA HA 3,158 2,683 Onions 8,400 108,800 6,250 47,555 61,245 1,814 1,548 Total vegetables .360,200 2,201,522 226 , 184 73,595 61,914 Grand total 1,152,730 3,549,363 462,585 188,737 160,769 For explanation of footnotes and sources of data see table III, Note: For procedures of estimating data in columns 6 and 7, see "Note to table I," TABLE III Acreage, Production, Value, and Related Data for Major California Fresh Fruits and Truck Crops Summary: 1948 Groups and . terns Fresh fruits: Apples Apricots Grapes Pears Plums Peaches Bush fruits Cherries , , , OrangesVl/g/ Lemons^/ Grapefruit]?/ Summer Desert£/ Avocadoes Dates Persimmons Pomegranates Figs Olives Ualnuts Almonds Total fruits and nuts Bearing acreage for fresh use acres 13,060 5,970 94,772 8,833 25,038 14,673 1,577 7,432 246,700 64,900 9,500 17,500 14,596 3,682 1,173 '631 8,410 25,366 111,667 94,572 770,052 Production for fresh use tons 63,864 20,900 543,800 53,000 65,100 119,600 3,945 7,700 46,500 12,900 1,500 3,900 12,730 15,050 3,275 2,790 3,000 61,800 61,600 33,800 1,136,754 T^arm value of fresh production 1,000 dollars 3,912 1,432 28,332 6,095 7,552 9,766 1,370 2,510 60,000£A 23,200£/ 1,245?/ l,872fV 4,901 1,836 272 100 348 8,467 27,227 14,365 204,802 "Fresh shipme nt s In- state tons 49,944 12,800 73,200 20,900 12,600 88,465 ha 2,700 Out-of-state tons 13,920 8,100 470,600 32,100 52,500 31,135 HA 5,000 HA. m m m 2,400 60,800 HA. HA 36,2000/ 8,50oV i,iooi/£/ l,900i/£/ HA HA. ha HA 600 1,000 HA HA In fresh" production Man-hour employment 1,000 man-hours 2,037 967 16,396 1,669 4,983 3,052 HA 996 36,018 15,511 722 1,645 701 1,355 HA HA 362 3,932 9,715 7,566 107,627 Payrolls (labor) 1,000 dollars 1,756 830 14,026 1,440 4,256 2,612 HA 855 31,084 13,304 627 1,418 598 1,598 HA HA 311 3,374 8,375 6,525 92,989 (Continued on next page.) : ■ ■ ..; \ - • It 1 7)" I i H