UNIVERSITY OF CALIFORNIA COLLEGE OF AGRICULTURE AGRICULTURAL EXPERIMENT STATION BERKELEY, CALIFORNIA Supply, Demand, and Prices of California Peaches H. R. WELLMAN BULLETIN 547 DECEMBER, 1932 CONTRIBUTION FROM THE GIANNINI FOUNDATION OF AGRICULTURAL ECONOMICS UNIVERSITY OF CALIFORNIA PRINTING OFFICE BERKELEY, CALIFORNIA CONTENTS PAGE Summary 3 Clingstones 3 Freestones 5 The general situation 6 Main peach-producing states 6 Trend of United States peach production 7 Utilization of the United States peach crop 8 California's position in the peach industry 8 Utilization of the California peach crop 10 Canned peaches 10 Trend of canned-peach pack in California 10 Utilization of clingstone peaches 11 Principal areas producing clingstone peaches in California 13 Acreage and production of canning clingstone peaches, north of the Tehachapi 15 Prices paid growers for No. 1 clingstone peaches 20 Prices received by canners 21 Trend of demand for canned peaches 26 Competition of other canned fruits 27 Foreign markets for California canned peaches 29 Dried peaches 33 Kinds of peaches dried 33 Utilization of California freestone peaches 33 Age distribution of freestone-peach acreage in California 34 United States production and exports of dried peaches 34 Foreign markets for dried peaches 35 Prices of dried peaches 37 Fresh peaches 39 Trend of fresh-peach production, United States 39 California interstate shipments of fresh peaches 39 Competition from other peach-producing states 41 Competition of other fruits with California fresh peaches 45 Distribution of California fresh peaches 46 Prices of California Elberta peaches 48 United States exports of fresh peaches 49 Peach acreage and production in foreign countries 49 Australia 49 South Africa 52 Chile 54 Acknowledgments 54 Appendix 55 SUPPLY, DEMAND, AND PRICES OF CALIFORNIA PEACHES 123 H. E. WELLMAN* SUMMARY Virtually all of the United States tonnage of dried and canning peaches are produced in California. On the average fresh shipments from this state constitute only 8.5 per cent of the total national produc- tion of fresh peaches, and only 13.3 per cent of the California crop is shipped fresh. Freestone varieties are used mainly for drying and fresh shipment, clingstone varieties mainly for canning. Clingstones. — The enormous increase in production of clingstone peaches in California during the past decade resulted in a marked downward trend in prices to both canners and growers. The decline in prices did not become serious, however, until 1927. From 1921 to 1926 the demand for canned peaches was increasing rapidly, which largely offset the increase in production. Since 1927 the trend of demand has increased only slowly, but production has continued upward. Conse- quently, prices dropped to unprofitably low levels. With the marked drop in prices in 1927 the industry instituted a number of policies designed to limit the pack. During the past five years, with the exception of 1929 when the crop was very short, only No. I fruit of the Tuscan, Phillip, and New Midsummer varieties has been canned. In 1930 and 1931 large quantities of No. 1 fruit were pur- chased and left on the trees. Had this not been done, prices paid growers in these two years would have been considerably lower than they were. The difficulties in the clingstone-peach industry arising out of the large increase in production have been greatly accentuated since 1929 by the pronounced decline in the buying power of consumers and by the decline in the general price level. The income of consumers, which de- i Keceived for publication July 26, 1932. 2 Paper No. 36, The Giannini Foundation of Agricultural Economics. 3 This bulletin supersedes California Agricultural Extension Service Circular 1, which was published in April, 1926. That circular contained detailed statistics relating to the California peach industry for the years 1906 to 1925. Except in a few instances annual data for the years prior to 1920 are not republished. in this bulletin. Instead, averages for the two five-year periods 1910-1914 and 1915-1919 are given. 4 Extension Specialist in Agricultural Economics and Associate on the Giannini Foundation. 4 University of California — Experiment Station creased sharply between 1928-29 and 1930-31, was further reduced in 1931-32. During 1931-32 the Federal Reserve Board index of factory employment averaged 70 as against 81 in 1930-31 and 100 in 1928-29. The buying power of people engaged in agriculture experienced an even greater reduction than that of factory workers. The gross income from agricultural production in 1931 was 42 per cent below that of 1929, while net farm income unquestionably declined proportionately more than gross farm income. The recovery in the demand for canned peaches from the present low level depends chiefly upon improvement in the buying power of consumers. Just when such an improvement will occur, how rapidly it will develop, and what forces will bring it about are uncertain. The recent decline in the general price level was a contributing factor to the low returns received by peach growers during the past two years. In sympathy with the marked drop in prices of all commodities since 1929, prices of canned peaches also declined. Costs of canning and pro- ducing peaches, however, did not decline as rapidly. Consequently there was a widening of the spread between the prices growers received for canning peaches and the prices they paid for commodities bought for living and production purposes. In 1932 there was a marked reduc- tion in the wages paid to both farm and cannery laborers. For the next few years prices of many items used in producing and canning peaches are likely to come more closely in line with the general price level, which will tend to improve the net returns from clingstone-peach production. Exports of canned peaches have been adversely affected by recent developments in the United Kingdom, which is our most important for- eign market for canned fruits. The present depression is world-wide and the buying power of consumers has declined fully as much in the United Kingdom as in this country. In addition, the United Kingdom went off the gold standard in September, 1931, and the resulting decline in the value of the English pound in terms of United States dollars has tended to restrict exports to that country. In the United Kingdom, California canned peaches meet considerable competition from those produced in Australia. Production of peaches in Australia has increased substantially within recent years. Indica- tions are, however, that the peak of production in that country has been reached, and that some decrease is in prospect during the next few years. Production of clingstone peaches in California has definitely passed the peak and is now declining. Low prices have resulted in cessation of plantings and the removal of trees from about 13,300 acres during the past two years. The trend of production of No. 1 canning clingstone Bul. 547] Supply, Demand, Prices of California Peaches 5 peaches north of the Tehaehapi in 1932 was at 307,000 tons, 9 per cent below the trend in 1931. During- the next few years a further decrease is in prospect. Plantings of Tuscans, New Midsummers, and Phillips since 1928 have amounted to only 2,000 acres, which is not sufficient to offset the normal removal of trees due to old age in the next four years. The peak of average yield from the present acreage was reached in 1932, and a gradual decrease in average yield per acre is to be expected as the orchards become older. Further removal, abandonment, and neglect are likely to occur as a result of the very low prices paid growers in 1932. Thus the surplus situation will eventually be corrected even though the present abnormally low demand for canned peaches should continue. Any improvement in demand during the next few years will, of course, shorten this period of surplus condition. Freestones. — As contrasted with the rapid increase in production of clingstone peaches, the production of freestone peaches in California has declined. All of the decline thus far, however, has been in freestones used for canning. The output of dried peaches and the shipments of fresh peaches have remained at approximately the same levels. If the downward trend in total production continues, however, and present indications are that it will, the output of either dried or fresh peaches or both will tend downward. About 90 per cent of the total acreage of freestone peaches in Cali- fornia in 1929 was in bearing and only 10 per cent was nonbearing. Fur- thermore, 64 per cent of the total acreage in that year was eleven years of age and over. During the next few years a considerable portion of this acreage will normally go out of bearing. Plantings of freestone peaches for the past few years have not been sufficient to offset this prospective decline. The decrease in production is likely to be most rapid in the principal drying varieties. During the past ten years exports of dried peaches have averaged about 15 per cent of the total production. There has been no definite upward or downward trend in the proportion of the crop exported. For many years Canada, Germany, and the United Kingdom have been our most important export markets. Prices of dried peaches, unlike the prices of most deciduous fruits, experienced no downward trend during the past decade. Prior to the pronounced decline in business conditions and employment, the demand for dried peaches was fairly constant. Production had not increased and consequently prices had not declined. With the prospect of a fur- ther downward trend in production dried peaches are likely to be in a favorable position whenever the buying power of consumers is mate- rially increased. 6 University of California — Experiment Station From 1921 to 1926 production and shipments of fresh peaches in the United States increased rapidly. Since 1926 there has been a gradual decline. Virtually all of the change in the trend of United States pro- duction during the past decade occurred in the southern states. Indica- tions are that the trend of production in that section will continue downward for the next few years. In 1929 only 28 per cent of the peach trees in the four states of Georgia, North Carolina, South Carolina, and Arkansas were less than six years of age, while 54 per cent were from six to nine years of age. This latter group of trees has now reached the age of maximum production and will soon be declining in productivity since the average commercial life of a peach tree in the southern states is only thirteen to fifteen years. The trend of production in all other states combined has neither increased nor decreased during the past decade, and the available information does not point toward any mate- rial change in the trend for the next few years. The shipping season in California usually extends from June to Octo- ber. The bulk of the crop, however, is shipped between the third week in July and the second week in August. Shipments from the southern states are at the maximum in July, while those from the midseason- shipping states are at the maximum in August. Thus shipments from other states are heaviest during the same two months that most of the California peaches are marketed. When the peach crop in other states is large, as it was in 1931, markets for California fresh peaches are greatly restricted. On the other hand, when the peach crop in other states is small, as it was in 1930, California growers are able to expand their interstate shipments materially. Dur- ing the coming years eastern markets may be expected to afford an outlet for a substantially larger volume of California fresh peaches than they did in 1931. Peach production in other states will average below the unusually large crop of that year. With the recovery of business condi- tions in this country, the buying power of consumers will increase, which will improve the demand for fresh peaches. THE GENERAL SITUATION Main Peach-Producing States. — Peaches are grown extensively throughout the United States. Crops of commercial importance are produced in forty of the forty-eight states. The relative importance of these forty states in the production of peaches is shown in figure 1 ; the circles in the states represent the average annual production during the Bul. 547] Supply, Demand, Prices op California Peaches 7 five years, 1926-1930. For many years California has been the foremost peach-producing state in the Union. From 1926 to 1930 an average of 41 per cent of the total national crop was produced in this state. Next in order of importance is Georgia, followed by New Jersey, Arkansas, New York, North Carolina, Illinois, Texas, and Pennsylvania. These nine states produce about 75 per cent of the total peaches grown in this country. United States Production of Peaches, Average 1926-1930 Fig. 1. — Although peaches are grown commercially in forty of the forty-eight states, the large-producing areas are confined to a comparatively few states. Data from table 26. Trend of United States Peach Production. — The annual total produc- tion of peaches in the United States from 1910 to 1931 is shown by the solid line in figure 2 ; the trend of production is represented by the broken curve. From 1910 to 1915 there was an upward trend in produc- tion. During the years immediately following 1915, however, production declined and remained at a relatively low level until 1921. Since 1921 the trend of production has again been upward. The increase was par- ticularly rapid prior to 1928. Since then there has been only a small rise. It is probable that the peak in the upward trend of production has been reached and that during the next few years the trend will be down- ward. The actual production in 1931 was 29 per cent above the trend. In that year, conditions throughout the peach-producing sections of the country, with the exception of California, were particularly favorable to high yields. 8 University of California — Experiment Station Utilization of the United States Peach Crop. — The 1926-1930 aver- age production of peaches in the United States amounted to 1,358,000 tons, of which 63.3 per cent were shipped fresh, 20.7 per cent canned, 9.4 per cent dried, and 6.6 per cent unharvested because of low prices. During the past twenty years there has been a steady decline in the pro- portion of the crop marketed fresh, and a steady increase in the propor- tion of the crop canned (table 1). The proportion of the crop dried United States Total Production of Peaches, 1910-1931 a X o -* s § -« V 1,800 1,600 ^PRODUCTION 1,400 1,200 ■■ * *\ TRE g. 1# *\ 1,000 800 600 400 200 O iH CM (Q CM CM CM CM CM CM at CM CM O o> Fig. 2. — The peak in the recent upward trend of peach production in the United States came in 1930 or 1931. Data from table 26. increased during the first ten years of the period, but declined during the last ten years. The shift in the utilization of the crop from fresh to canned has been particularly marked. In 1910-1914 only 6.9 per cent of the crop was canned, as against 20.7 per cent in 1926-1930. On the other hand, 80.3 per cent of the crop was used fresh in 1910-1914, whereas only 63.3 per cent was so used in 1926-1930. California's Position in the Peach Industry. — At the present time California not only produces about 41 per cent of the total crop of peaches grown in the United States, but also produces virtually all of the United States tonnage of dried and canning peaches. The commer- cial drying of peaches has always been confined to California. Commer- cial canning, however, was at one time of some importance in other Bul. 547] Supply, Demand, Prices of California Peaches 9 states. As late as 1919 about 11 per cent of the total canned pack of peaches in the United States was produced in states other than Califor- nia, while in 1909 the volume produced outside of California amounted to 22 per cent of the total. TABLE 1 Utilization of United States Production of Peaches, Averages 1910-1914 to 1926-1930 (Fresh equivalent) Average 1910-1914 Average 1915-1919 Average 1921-1925 Average 1926-1930 1,000 tons Per cent 1,000 tons Per cent 1,000 tons Per cent 1,000 tons Per cent Shipped fresh 916 80.3 850 74.1 810 72.1 860 63.3 Canned 79 6.9 126 11.0 187 16.6 281 20.7 Dried 146 12.8 171 14.9 127 11.3 127 9.4 Total harvested... 1,141 100.0 1,147 100.0 1,124 100.0 1,268 93 4 Unharvested 90 6.6 Total 1,141 100.0 1,147 100.0 1,124 100.0 1,358 100.0 Source of data: table 27. TABLE 2 Utilization of California Production of Peaches, Averages 1910-1914 to 1926-1930 (Fresh equivalent) Average 1910-1914 Average 1915-1919 Average 1921-1925 Average 1926-1930 Tons Per cent Tons Per cent Tons Per cent Tons Per cent Canned Dried Shipped fresh Total harvested.... 66,000 146,000 40,400 252,400 26.2 57.8 16.0 100.0 100.0 110,600 171,200 47,800 329,600 33.6 51.9 14.5 100.0 100.0 182,200 127,400 55,200 364,800 50.0 34.9 15.1 100.0 100.0 274,720 126,740 73,880 475,340 78,060 553,400 49.6 22.9 13.4 85.9 14.1 Total 252,400 329,600 364,800 100.0 Source of data: table 28. As contrasted with the dried and canned-peach situations, California is of relatively minor importance in the production of fresh peaches. Our annual average production of peaches for fresh shipment has, therefore, little influence upon the total volume marketed in the United States, but expansion or contraction of our output of dried or canned peaches results in an equivalent change in the United States output of these commodities. 10 University of California — Experiment Station Utilization of the California Peach Crop. — The disposition of the Cali- fornia peach crop is given in table 2. Of the average 1926-1930 produc- tion of 553,400 tons, 49.6 per cent was canned, 22.9 per cent dried, 13.4 per cent shipped fresh, and 14.1 per cent unharvested because of low prices. While there has been no appreciably significant change in the proportion of the crop used fresh during the past twenty years, there has been a marked change in the proportions dried and canned. Be- tween 1910-1914 and 1926-1930 the proportion of the total crop dried decreased from 57.8 per cent to 22.9 per cent, whereas the proportion canned increased from 26.2 per cent to 49.6 per cent. The increase in the proportion canned would have been even larger if the pack had not been limited by industry agreement. The 14.1 per cent of the peaches unharvested in 1926-1930 were almost entirely of clingstone varieties, which are used primarily for canning. CANNED PEACHES Trend of Canned-Peach Pack in California. — The annual pack of canned peaches in California from 1921 to 1931 is represented by the bars in figure 3. Until 1928 there was a pronounced upward trend in the pack. This upward trend was approximately at the same rate as that which had prevailed for many years prior to 1921. Table 3 gives the average packs for the five-year periods, 1910-1914 to 1926-1930. The California Pack of Clingstone and Freestone Peaches, 1921-1931 § 8 E3 FREESTONES . IB CLINCSTONES SEE! MESS! Fig. 3.- -From 1921 to 1928 there was a pronounced increase in the pack of canned peaches in California; since 1928 there has been a decrease. Data from table 30. Bul. 547] Supply, Demand, Prices of California Peaches 11 percentage increase in the average packs from 1910-1914 to 1915-1919 was 67 per cent, from 1915-1919 to 1921-1925, 64 per cent, and from 1921-1925 to 1926-1930, 61 per cent. Since 1928 there has been no fur- ther upward trend in the pack. In fact, the average quantity canned during the three years 1929-1931 was 24 per cent below the 1926-1928 average. The small pack in 1929 was the result of a severe freeze in April of that year, while the 1930 and 1931 packs were limited by industry agreement. In the past five years, 1927-1931, the pack of canned peaches has con- sisted almost entirely of clingstones. In figure 3, the black portion of the bars represents the pack of clingstones, the white portion the pack of freestones. From 1921-1925 the average pack of freestones amounted TABLE 3 California Pack of Canned Peaches, Averages 1910-1914 to 1920-1930 Average 1910-1914 Average 1915-1919 Average 1921-1925 Average 1926-1930 Clingstone 1,000 cases* 1,858 903 2,761 1,000 cases* 3,260 1,346 4,606 1,000 cases* 6,416 1,156 7,572 1,000 cases* 11,822 350 Total 12,172 * No. 2^-can basis. Source of data: table 30. to 1,156,000 cases, whereas during the five years 1927-1931 it amounted to only 208,000 cases. In the former period freestones constituted 15 per cent of the total pack, in the latter period only 2 per cent. Canned freestone peaches were of even more importance prior to 1921 than they were from 1921 to 1925. During the five years, 1915-1919, they averaged 29 per cent of the total pack, and from 1910-1914, 33 per cent. Utilization of Clingstone Peaches. — Canning is the primary outlet for clingstone peaches. During recent years a few thousand tons have been shipped fresh and a small quantity has been dried. The bulk of the harvested crop, however, has been canned. Table 4 gives the disposi- tion of the clingstone-peach crops from 1920-1931. Prior to 1927 prac- tically all of the clingstone peaches grown in the state were used for canning. Canners accepted No. 2 fruit at one-half the price paid for No. 1 fruit. No distinction between varieties was made. The prices paid by canners for No. 1 fruit were generally higher than could be obtained for the same quality shipped fresh to local or eastern markets. Conse- quently fresh shipments prior to 1927 did not average more than 2,000 12 University of California — Experiment Station or 3,000 tons annually. Commercial drying of clingstone peaches was virtually unknown. With the marked drop in prices of both canned and canning cling- stone peaches in 1927, the industry instituted a number of policies de- signed to limit the pack. During the past five years, with the exception of 1929 when the crop was very short, canning has been confined almost TABLE 4 California Production of Clingstone Peaches by Uses, Averages 1910-1914 to 1926-1930, Annual 1920-1931 Year Total Unhar- vested Harvested Canned in fresh equivalent Shipped fresh Dried in fresh equivalent 1 2 3 4 5 6 Averages: 1910-1914 tons 44,400 78,400 154,400 356,800 121,000 97,000 182,000 153,000 125,000 215,000 327,000 322,000 414,000 179,000 542,000 397,000 tons tons 44,400 78,400 154,400 281,140 121,000 97,000 182,000 153,000 125,000 215,000 327,000 257,000 344,000 179,000 298,700 203,500 tons 44,400 78,400 154,400 266,280 121,000 97,000 182,000 153,000 125,000 215,000 318,000 230,000 322,000 173,300 288,100 181,500 tons tons 1915-1919 1921-1925 1926-1930 75,660 14,860 Annual: 1920 1921 1922 1923 ! 1924 1925 1926 9,000 27,000 22,000 5,700 10,600 13,900 1927 65,000 70,000 243,300 193,500 1928 .. 1929 1930 1931 8,100 Sources of data: 1910-1925: from table 30, col. 2. The number of cases per ton varied between 41 and 43. 1926-1931: from California Cooperative Crop Reporting Service, Sacramento. Prior to 1926 definite information on the amount of clingstone peaches shipped fresh is not available. It is known, however, that the volume shipped fresh prior to 1926 was small. A small quantity of clingstone peaches was dried in 1930. entirely to No. 1 fruit of the newer-type varieties ; very few Old Mid- summer Clings, White Clings, and Levi Clings, commonly known as the older-type varieties, have been packed. In 1930 and 1931 large quanti- ties of No. 1 fruit were purchased and left on the trees. The relatively low prices paid growers for clingstone peaches since 1926, together with the refusal of canners to accept the older-type varie- ties, stimulated growers to find other outlets. In 1927 growers sold about 27,000 tons of clingstones for fresh shipment, as against 9,000 tons in 1926. Average annual sales of clingstone peaches on the Chicago auction market from 1922 to 1926 amounted to 32,900 boxes, as against Bul. 547] Supply, Demand, Prices op California Peaches 13 an average of 84,203 boxes during the five years 1927-1931. Approxi- mately 65 per cent of the total increase of 51,303 boxes was in the older- type varieties not now accepted by canners (table 5) . As a result of the large increase in shipments, prices declined from an average of $1.23 a box at Chicago in 1922-1926 to an average of $1.02 a box in 1927-1931. Prior to 1927, prices of clingstone peaches at Chicago averaged $0.26 a box above that of Elbertas ; since 1927 they have averaged only $0.05 a TABLE 5 Sales and Prices of California Clingstone Peaches, Chicago Auction Market, 1922-1931 Sales Year Tuscans, Phillips, New Midsummers Levi Clings, White Clings, Old Midsummers Total Price per box, all varieties Averages: 1922-1926 boxes 15,896 33,946 5,177 32,529 14,948 16,015 10,812 32,481 41,310 14,317 62,029 19,595 boxes 17,004 50,257 4,329 19,022 20,200 28,803 12,667 69,907 34,419 24,449 87,107 35,405 boxes 32,900 84,203 9,506 51,551 35,148 44,818 23,479 102,388 75,729 38,766 149,136 55,000 dollars 1 23 1927-1931 1.02 Annual: 1922 1.19 1923 1.03 1924 1.43 1925 1.41 1926 1.11 1927 0.99 1928 0.94 1929 1.34 1930 0.95 1931 0.88 Source of data: Compiled from Chicago Daily Fruit and Vegetable Reporter. box higher ; and in 1931 they were $0.01 a box lower. Thus the experi- ence of recent years indicates that while eastern markets may offer an attractive outlet for small quantities of fresh clingstone peaches, they do not afford an outlet for any substantial proportion of the crop. Drying has been and will probably continue to be of even less impor- tance than fresh shipments as an outlet for clingstone peaches. This subject is discussed on page 33. Principal Areas Producing Clingstone Peaches in California. — Most of the clingstone peaches produced in California are grown in the Sac- ramento and San Joaquin valleys. The relative distribution of the total acreage of clingstone peaches by counties in 1932 is shown in figure 4. Approximately 36 per cent of the total acreage in 1932 was in three 14 University of California — Experiment Station Clingstone Peach Acreage in California, 1932 (Bearing and Nonbearing) n fer cent bounty Acres of total Sutter i5 >780 2 4.6 Stanislaus 8,782 13.7 Tulare 5,99s 9.4 San Joaquin 4,276 6.7 San Bernardino 4,266 6.7 Merced 4,150 &5 Yuba 3,759 5.9 B "«e 3,273 5.1 Riverside 2,449 3.8 Sacramento 2,097 3.3 Placer 1,921 3.0 Fresno 1,709 2.7 Madera 821 1.3 San Benito 776 1.2 Santa Clara 738 1.1 Kings 692 1.1 Los Angeles 591 o.9 Colusa 292 0.4 El Dorado 255 0.4 Tehama 236 0.4 Yolo 229 0.3 Contra Costa 224 0.3 Sonoma no 0.2 Glenn 106 0.2 .Others 486 0.8 Total 64,016 100.0 >:•:• Each dot » 600 acres Fig. 4. — Most of the clingstone peaches are produced in the Sacramento and San Joaquin valleys. Data from California Cooperative Crop Reporting Service, Sacramento. Sacramento Valley counties — Sutter, Yuba, and Butte — and about 36 per cent was in four San Joaquin Valley counties — Stanislaus, Tu- lare, Merced, and San Joaquin. These seven counties contained about 72 per cent of the total acreage in the state, while Sutter County alone contained about 25 per cent of the total. The acreage of all varieties of clingstone peaches north of the Tehachapi in 1932 amounted to 56,697 acres, or 89 per cent of all acreage in the state. Bul. 547] Supply, Demand, Prices op California Peaches 15 Acreage and Production of Canning Clingstone Peaches, North of the Tehachapi. — Table 6 shows the estimated acreage north of the Te- hachapi of Tuscans, New Midsummers, and Phillips in 1928, 1930, and 1932. The net decrease in total acreage of these three varieties between 1928 and 1930 amounted to 5,159 acres; 7,041 acres were removed and 1,882 acres were planted. Between 1930 and 1932 only 169 acres were planted while 13,329 acres were removed or abandoned. The net de- crease, therefore, amounted to 13,160 acres. Most of the plantings since 1928 have been New Midsummers while most of the removals have been Tuscans and Phillips. Consequently, the total acreage of New Midsum- TABLE 6 Total Acreage of Principal Canning Varieties of Clingstone Peaches, North of Tehachapi, California, 1928, 1930, 1932 (Old Midsummer Clings, White Clings, and Levi Clings omitted) Year Variety 1928 1930 1932 acres 16,931 25,393 25,687 68,011 acres 13,710 25,675 23,467 62,852 acres 6,655 24,447 Phillips 18,590 Total 49,692 Sources of data: California Canning Peach Growers Association and Cling Peach Control Committee. mers in 1932 was only 4 per cent smaller than in 1928, whereas the total acreage of Tuscans was 61 per cent smaller and the total acreage of Phillips 28 per cent smaller. Although there has been a large reduction in the total acreage of clingstone peaches north of the Tehachapi since 1928, the net decrease in bearing acreage has been relatively small. In 1928 there were 53,967 acres four years of age and older, while in 1932 there were 47,641 acres four years of age and older, which represents a net decrease in bearing acreage of only 6,326 acres. Thus, the removal of older trees during the past four years was offset to a considerable extent by the young trees coming into bearing. The distribution of the 49,692 acres of Tuscans, New Midsum- mers, and Phillips in 1932 by ages of trees is shown in table 7. Large plantings occurred each year between 1920 and 1927 and were par- ticularly heavy in 1922, 1923, and 1924. During these three years 44 per cent of the total acreage in 1932 was planted. These plantings came 16 University of California — Experiment Station TABLE 7 Age and Acreage of Tuscans, New Midsummers, and Phillips, North of Tehachapi, California, 1932 Year planted Age in 1932 Tuscans New Mid- summers Phillips Total Percentage of total 1932 1931 1930 1929 1928 1927 1926 1925 1924 1923 1922 1921 1920 1919 1918 1917 1916 1915 1914 and earlier Total 10 11 12 13 14 15 16 17 18 and older acres 10 20 30 321 74 281 387 1,286 1,149 589 893 134 165 158 162 256 740 6,655 17 142 1,198 509 1,006 2,762 2,220 2,649 3,238 4,244 2,846 1,535 539 200 362 147 199 383 251 24,447 acres 10 75 70 337 1,161 995 1,675 1,786 3,890 3,053 1,561 1,147 332 378 209 299 332 1,280 18,590 acres 17 152 1,283 599 1,373 4,244 3,289 4,605 5,411 9,420 7,048 3,685 2,579 666 905 514 660 971 2,271 49,692 per cent 0.3 2.6 1.2 2.8 8.6 6.6 9.3 10.9 18.9 14.2 7.4 5.2 13 1.8 1.0 1.3 2 4.6 100.0 Source of data: Cling Peach Control Committee. Average Eelation Between Age of Clingstone-Peach Trees and Yield per Tons W OJO <0O fHrH O CO <0 tO r-« t- M CD tO CO 8 7 a la 1 o * 2 1 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Age of trees Fig. 5. — A clingstone-peach orchard in California usually reaches full bearing at nine or ten years of age. Data calculated from records of yields per acre by age of trees on 20,480 acres, obtained during the four years 1928-1931 by the Cling Peach Control Committee. Bul. 547] Supply, Demand, Prices of California Peaches 17 into commercial production in 1926-1928 and account in a large meas- ure for the difficulties that the peach industry has experienced during the past six years. The average yields per acre of No. 1 clingstone peaches, north of the Tehachapi, at various ages are shown in figure 5. An orchard usually comes into commercial production at four years of age. The produc- tion of No. 1 fruit at that age, however, is light, amounting on the aver- age to less than 4 tons per acre. During the next four or five years production increases rapidly. The peak of production usually comes in the ninth or tenth year. At that age the average orchard produces around 7 tons of No. 1 fruit per acre. After the tenth year there is ordi- narily a gradual decline in yield per acre. In the twentieth year the yield per acre averages about 4 tons. There is, of course, great variation among different orchards with respect to yields at various ages. The curve in figure 5 represents the typical situation north of the Tehachapi. Many growers have obtained much higher yields than those given here, while other growers have ob- tained much lower yields. Some orchards come into commercial bearing at three years of age and reach full production at seven years of age ; other orchards do not come into commercial bearing until five years of age and do not reach full production until twelve or thirteen years of age. The bearing life of different orchards also varies greatly. Under very favorable conditions trees will produce relatively good yields until twenty-five or thirty years of age ; under unfavorable conditions they may go out of production at twelve or fifteen years of age. Under average conditions the normal life is twenty years. The quantity of canning clingstone peaches sold by growers north of the Tehachapi each year from 1921 to 1931 is shown in figure 6. The data for the years 1921-1929 represent the quantity canned. The data for 1930 and 1931 represent the quantity canned plus the quantity purchased by the Cling Peach Control Committee and left on the trees. From 1921 to 1930 there was a pronounced upward trend in production, rising from 104,000 tons to 338,000 tons. In 1931, however, there was no further increase ; the trend remained at the same height as in 1930. With the removal of considerable bearing acreage in 1931, the trend in 1932 declined to 307,000 tons, 9 per cent below the trend in 1931. During the next few years a further decrease in the trend of produc- tion of No. 1 Tuscans, New Midsummers, and Phillips is likely to occur. Plantings since 1928 have not been sufficient to offset the normal re- moval of trees due to old age. The present acreage is now at the peak of maximum average yield and as the orchards become older, a gradual 18 University of California — Experiment Station decrease in average yield per acre is to be expected. Because of the low prices paid growers in 1931 and 1932, many trees are likely to be taken out before they reach the age of twenty years. Considerable acreage is likely to be abandoned or neglected to such an extent that it will be very costly, if not impossible, to bring it back into good condition. Canning Clingstone Peaches Purchased, North of Tehachapi, California, 1921-1931 440 400 360 320 • 280 § O 240 o o ^200 160 120 80 - * "^l"* V PRODI JCTION >* X N */ // ' V TREND *"/ f+ r^ ^ . ** 4 e l c » i> a > * » c » a c D a c l> c > t a c » e ■» a a c n c 3 a » a » c 'i K » a 4 > V • a 4 > Fig. 6. — The trend of production of clingstone peaches in California during the next few years is likely to be downward; this is a marked contrast to the sharp upward trend which prevailed between 1921 and 1930. Data from table 29. In southern California there has been a definite downward trend in the production of clingstone peaches during the past four years as shown by the canned-pack statistics given in figure 7. The 395,000 cases of clingstone peaches canned in southern California in 1931 include some fruit grown north of the Tehachapi. The exact quantity, however, is not known. The bearing acreage of clingstone peaches in southern California decreased about 34 per cent between 1928 and 1932. In 1928 the bearing acreage amounted to 10,779 acres and in 1932, 7,136 acres. Bul. 547] Supply, Demand, Prices of California Peaches 19 Canned Pack of Clingstone Peaches, Southern California, 1921-1931 Fig. 7. — Since 1927 there has been a substantial decrease in the canned pack of clingstone peaches in southern California. Data from table 29. Relative Prices Paid Growers for No. 1 Clingstone Peaches and Index of Prices of Commodities Purchased by Growers, 1910-1931 360 320 280 8 A RELATIVE PRICES OF Xl/CLINGSTONE PEACHES / ^ — — o OFC INDEX OF OMMODIT BY CRO PRICES ES PURC WERS HASED , M \\ I 4) ** 120 \7 T ™^v s > < 80 40 f\ ""'> V 1 1 1 1 1 1 , i , 1 Year "beginning June 1 Fig. 8. — During recent years prices paid growers for clingstone peaches have been low as compared with the prices of commodities farmers buy for living and production purposes. Data from table 31. 20 University of California — Experiment Station Prices Paid Growers for No. 1 Clingstone Peaches. — The average prices paid growers for No. 1 clingstone peaches from 1910 to 1931, ex- pressed as percentages of the 1910-1914 average price, are shown by the solid line in figure 8. From 1910 to 1915 there was a downward trend in prices paid growers. Then came the World War inflation pe- riod and prices of canning peaches rose rapidly. Each year for five con- secutive years prices were higher than in the preceding year. Costs of growing peaches also increased during this period but not as rapidly as the prices received by growers. The broken line in figure 8 represents the prices of commodities that farmers buy for living and production purposes. It is recognized, of course, that this general index of prices of commodities that farmers throughout the United States buy may not adequately represent the costs of producing peaches, but it is the best index available at the present time. In 1919 and 1920 the index of prices of commodities bought by growers averaged 106 per cent above its pre- war level ; the prices growers received for canning peaches during those two years, however, averaged 224 per cent above the pre-war level. Prior to the World War, clingstone-peach growing had been one of the profit- able agricultural industries in California as evidenced by the continuous plantings. In 1919 and 1920 it was enormously profitable. The high prices received for canning peaches in those two years relative to the cost of producing them provided the initial stimulus to the excessive planting which occurred in the years immediately following. The precipitous drop in the price of canning peaches from the high level of 1920 was in part offset by reduction in costs. The index of prices farmers pay for commodities purchased for living and produc- tion purposes was about 25 per cent lower in 1921 than in 1920. From 1921 to 1929, however, there was no further decline. On the other hand, prices of canning peaches have experienced a sharp downward trend since 1921. The spread between the prices growers received and the prices they paid did not become serious, however, until 1927. From 1921 to 1926 the profits obtained from growing clingstone peaches, while not as large as in 1919 and 1920, were nevertheless substantial, and were much higher than could be obtained from most alternative enterprises. It was during this period that so many thousands of acres were planted to clingstone peaches. From 1927 to 1931, with the exception of 1929 when the crop was very short, prices paid growers for clingstone peaches averaged less than $20.00 a ton as against an average of $41.00 a ton from 1921 to 1926, and an average of $29.00 a ton from 1910 to 1914. In 1930 and 1931 the prices would have been considerably below the $20.00 and $14.50 a ton Bul. 547 J Supply, Demand, Prices of California Peaches 21 that were paid had the quantity canned not been limited by industry agreement. The low prices received during the past two years were partially offset by a reduction in costs of producing peaches. The index of prices of commodities farmers buy, however, was still 26 per per cent higher in 1931 than from 1910 to 1914, while the price farmers received for clingstone peaches in 1931 was 50 per cent below the 1910— 1914 average. The marked reduction in the prices of clingstone peaches Relative Prices Paid Growers for No. 1 Clingstone Peaches and Relative Prices Received by Canners for Canned Clingstone Peaches, 1910-1931 360 320 280 240 200 160 t 120 80 40 j/\ RELA FIVE PRIC GROWER :s Y~J PAIC s \ \ \\ 1 f/ \\ I R EL AT IV RECE!\ E PRICES /ED BY w# w A«*\ CANNERS > \% VM *^ , i 1 1 1 1 i 1 ! 1 1 Year beginning June 1 Pig. 9. — A small percentage change in the prices which canners receive for canned peaches results in a large percentage change in the prices paid growers. Data from table 31. since 1926 as compared with the costs of producing them has resulted in a cessation of planting, in the removal of many trees, and the loss of orchards by numerous growers. Prices Received by Canners. — The prices paid growers for clingstone peaches are directly affected by the prices that canners are able to obtain for the finished products. In figure 9 the relative prices paid growers are shown by the solid line, the relative prices received by canners by the broken line. Two tendencies are apparent : first, that the movements of the two price series have been in the same general direction ; and sec- ondly, that the change in growers' prices has been much more pro- nounced than the change in canners' prices. A small increase in the price to canners results in a large increase in the price to growers, while 22 University of California — Experiment Station a small decrease in price to canners results in a large decrease in price to growers. The reason why canners' prices are more stable than growers' prices is that the price of peaches is only one of the costs that enter into the finished product. Prices of the other cost items, such as labor and cans, usually fluctuate but little from year to year. Since many of the costs of canning are relatively fixed, the entire change in prices of canned peaches from one year to another tends to be reflected Eelative Prices Eeceived by Canners for Canned Clingstone Peaches and All-Commodity Index of Wholesale Prices, 1910-1931. 280 §240 ii <* «200 2 RELATIV B : PRICES Y CANNEf RECEIVE / 9 2 120 < 80 40 4 / r j X %>* **^pt* **£Z^ ^aa«^^ ~£^ £% 1 , 1 i 1 i 1 1 1 1 Year beginning June 1 Fig. 10. — Prices which canners receive for canned peaches are influenced by the changes in the general price level. Data from table 31. in the prices of the raw product. From 1921 to 1928 the relative varia- tion in growers' prices was 23 per cent while that of canners' prices was only 5 per cent. The slowness with which prices of most of the cost items in canning changed as compared with the prices received for canned peaches was largely responsible for the very rapid rise in the prices paid growers from 1915 to 1920 and for the marked downward trends in growers' prices from 1910 to 1915 and from 1921 to 1931. The trend of canners' prices in 1930 was 26 per cent below that of 1921, while the trend of growers' prices was 60 per cent below. The decline in growers' prices would have been even greater, however, had it not been for a reduction in canners' margin. Between 1921 and 1930 canners' prices fell $1.10 a case which is equivalent to $50 a ton. During the same period growers' prices declined $30 a ton. Bul. 547] Supply, Demand, Prices of California Peaches 23 In figure 10, the relative prices received by canners from 1910-11 to 1931-32 are compared with the Bureau of Labor Statistics all-com- modity index of wholesale prices. This index, while not an accurate measure of changes in the general price level, is useful as a rough indi- cator. Changes in the general price level are equivalent to changes in the value of money and tend to produce similar changes in the value of commodities and services. The pronounced rise in canners' prices from Domestic Shipments, Exports, and Prices of Canned Peaches 1921-22 to 1931-32 Year beginning June 1 Fig. 11. — The downward trend in the price of canned peaches from 1921-22 to 1928-29 was caused mainly by the rapid increase in shipments. Data on shipments from table 8, data on prices from table 31. 1915-16 to 1919-20 was caused mainly by the rise in the general price level, while the precipitous drop in canners' prices in 1920-21 was caused mainly by the sharp decline in the general price level. Between 1921-22 and 1928-29 there was no significant change in the general price level, yet prices canners received declined materially. This downward trend in canners' prices was chiefly the result of in- creased supplies of canned peaches. In figure 11 the bars show the annual shipments of California canned peaches. These shipments were computed from the data on pack and carryover, which are given in table 8. Domestic shipments are represented by the cross-hatched por- tion of the bars in figure 11, exports by the open portion. During the eleven years, 1921-22 to 1931-32, an average of 83 per cent of the total shipments were sold in the United States, and 17 per cent were exported. 24 University of California — Experiment Station From 1921-22 to 1928-29 there was a substantial increase in both domes- tic shipments and exports. The absolute increase was much greater in domestic shipments than in exports; the relative increases, however, were about the same. The average annual shipments to all markets dur- ing the two years 1921-22 and 1922-23 amounted to 6,614,000 cases, as against an average of 13,083,000 cases during the two years of 1927-28 and 1928-29, an increase of 98 per cent. Consumers would not buy the TABLE 8 Pack, Carryover, Shipments, and Exports of California Canned Peaches, 1921-22 to 1931-32 Year June-May Pack Carryover from previous year Available for shipment Carryover into following year Shipments Exports Domestic shipments 1 2 3 4 5 6 7 1921-22 1,000 cases* 5,633 8,784 7,158 6,141 10,143 14,059 10,813 14,596 8,100 13,294 8,421 1,000 cases* 920 326 2,109 1,575 798 574 3,906 1,516 3,149 1,677 3,951 1,000 cases* 6,553 9,110 9,267 7,716 10,941 14,633 14,719 16,112 11,249 14,971 12,372 1,000 cases* 326 2,109 1,575 798 574 3,906 1,516 3,149 1,677 3,951 4,845 1,000 cases* 6,227 7,001 7,692 6,918 10,367 10,727 13,203 12,963 9,572 11,020 7,527 1,000 cases* 1,108 1,214 1,147 1,281 1,856 1,681 2,040 2,163 1,727 1,618 1,469 1,000 cases* 5,119 1922-23 5,787 1923-24 6,545 1924-25.. .. 5,637 1925-26... 8,511 1926-27 9,046 1927-28 11,163 1928-29 10,800 1929-30 7,845 1930-31 9,402 1931-32 6,058 * 2^-can basis. Includes both freestones and clingstones. Sources of data: Col. 1 : Compiled by the Canners League of California. Cols. 2 and 4: 1921-22 to 1924-25 compiled from records of canners. 1925-26 to 1931-32 compiled by the Canners League of California. Col. 6: Compiled from U. S. Dept. Com. Monthly Summary of Foreign Commerce of the United States, monthly issues. Pounds were converted to cases on the basis of 45 pounds per case. larger quantities offered for sale except at lower prices, and the lower prices which consumers paid resulted in lower prices to canners as shown by the solid line in figure 11. In the past two years, 1930-31 and 1931-32, shipments of canned peaches averaged only 9,274,000 cases, 29 per cent below the average of 1927-28 and 1928-29. But despite these smaller shipments prices which canners received were also lower. The two chief causes of the relatively low prices of canned peaches during the past two years in comparison with the volume shipped were (1) the decline in the general price level, and (2) the decrease in the buying power of consumers. As shown by the broken line in figure 10, the Bureau of Labor Statis- tics all-commodity index of wholesale prices declined from 138 (1910- 1914= 100) in 1929-30 to 100 in 1931-32. As long as the general price Bul. 547] Supply, Demand, Prices of California Peaches 25 level remains below the 1921-1929 average, it is not likely that ship- ments of canned peaches as large as those of 1927-28 and 1928-29 can be sold for as high prices as prevailed in those two years even though business activity and employment return to normal. The pronounced decline in the buying power of consumers since 1929 has resulted in a sharp decrease in the demand for canned peaches. The extent of the decrease in the buying power of factory workers in this country as indicated by the Federal Eeserve Board indexes of factory employment and factory pay rolls is shown in figure 12. For every 100 Federal Eeserve Board Index of Factory Employment and Factory Pay Eolls in the United States, 1919-1932 130 120 110 100 r\\ rFACTORY PAYROLLS K\ i/ I l\,p W && 90 80 70 u It / > \\X Pr FACTORY-^ tl V W t 1 J\ 60 50 40 30 1 V V i \ \ % i -^_— ~— *- ■- 1 — .-. ' ~T~1 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 Fig. 12. — The low level of employment was mainly responsible for the decreased demand for canned peaches in 1930-31 and 1931-32. Data from the Federal Reserve Bulletins. people employed in factories in this country during the three years 1923-1925, only 81 people were employed in 1930-31 and only 70 people in 1931-32. The money income of these workers as measured by the index of factory pay rolls, which is represented by the broken line in figure 12, declined even more rapidly than the number of people em- ployed. For the twelve months June, 1931 to May, 1932 the index of fac- tory pay rolls averaged 58 as against the three-year 1923-1925 average of 100. During the past three years the buying power of people engaged in agriculture experienced an even greater reduction than that of fac- tory workers. The gross income from agricultural production in 1931 26 University of California — Experiment Station was 42 per cent below that of 1929. The net farm income unquestion- ably declined proportionately more than the gross farm income. Al- though there were some reductions in the expenses of production, they were not nearly sufficient to counterbalance the drop in gross incomes. 5 The recovery in the demand for canned peaches from the present unusually low levels depends largely upon improvement in the buying power of consumers. The entire world is now in the trough of a major Estimated Trend of Demand for Canned Peaches in the "United States, 1921-22 to 1929-30 to e- GO en CM CM CM 0» o> at en Year beginning June 1 Fig. 13. — The trend of demand for canned peaches in the United States in- creased rapidly from 1921-22 to 1926-27, but from 1926-27 to 1929-30 increased only slowly. From: Wellman, H. R. Factors that affected the annual average prices of canned clingstone peaches, 1921-22 to 1930-31. California Agr. Ext. Serv. June, 1931. (Mimeo.) depression. When improvement will begin, how rapidly it will develop, and what forces will bring it about, are all uncertain. It seems evident, however, that no immediate substantial improvement is in prospect and that recovery to normal may require several years rather than a few months. Trend of Demand for Canned Peaches. — The trend of demand for California canned peaches from 1921-22 to 1929-30 is shown by the solid curve in figure 13. This curve represents the estimated quantity of canned peaches that canners could have sold each year at a price of $3.25 a case f.o.b. cannery, if the buying power of consumers and the 5 United States Department of Agriculture. 1932. Yearbook of Agriculture 1932:13. Bul. 547] Supply. Demand, Prices of California Peaches 27 supplies of competing fruits had remained constant. From 1921-22 to 1926-27 the trend of demand rose from 10,120,000 cases to 12,830,000 cases, an average increase of 542,000 cases a year. Since 1926-27, how- ever, the trend of demand has increased at the rate of only 120,000 cases a year. Thus three years before the beginning of the present business depression, a definite slowing down occurred in the rate of increase in the trend of demand. As closely as can be determined the trend of demand for canned peaches in the United States increased from 10,650,000 cases in 1926-27 to 11,000,000 cases in 1929-30, an increase of 3.3 per cent. According to Whelpton, the population of the United States on January 1, 1927 was 118,594,000 persons and on January 1, 1930, 122,535,000 persons, an increase of 3.3 per cent. 6 The evidence, therefore, is that there has been no increase in the per-capita demand for canned peaches in this country since 1926-27. During the coming years the growth in population in the United States itself is not likely to result in any large increase in the demand for canned peaches. There is definite evidence of a material decline in the rate of population growth in this country. The gain in population in 1930 amounted to only 1,110,00 persons as against 1,673,000 persons in 1925 and 1,948,000 persons in 1920. Prospects are that the popula- tion in 1940 will be only 7.5 per cent to 10.0 per cent larger than in 1930, with the smaller percentage increase being the more probable and the larger one the upper limit. 7 Thus, unless the per-capita demand for canned peaches is increased, it may reasonably be expected that the trend of demand in the United States by 1939-40 will be only 825,000 cases above the trend in 1929-30. Competition of Other Canned Fruits. — Canned pears, pineapples, and apricots probably compete more directly with canned peaches in the consuming markets than do canned cherries, plums, apples, or berries. The California apricot pack, Pacific Coast pear pack, and Hawaiian pineapple pack are given in table 9. Although the trend in the apricot pack has risen only slightly since 1921, the pear and pine- apple packs have increased enormously. The combined packs of the three fruits averaged 9,279,000 cases in 1921-1923 as against an average of 18,531,000 cases in 1929-1931, an increase of 99.7 per cent. In order to dispose of the much larger quantities offered for sale it has been necessary to reduce prices materially. Canners ' opening prices s Whelpton, P. K. Trends in population increase and distribution during 1920- 1930. Amer. Jour. Sociology 36 (6): 867. 1931. 7 Whelpton, P. K. Trends in population increase and distribution during 1920- 1930. Amer. Jour. Sociology 36(6) : 869. 1931. 28 University of California — Experiment Station on these three fruits are given in table 9. Although the opening prices have not always been the same as the actual prices which canners have received, they do give a reasonable indication of the trend of prices over a period of years. The 1930 opening prices of canned apricots were 17 per cent below the 1921-1923 average, canned pineapples 23 per cent below, and canned pears 30 per cent below. The 1931 opening prices were from $0.20 to $0.35 a dozen lower than in 1930. In October, 1931, TABLE 9 Canned Pack and Opening Prices of Apricots, Pears, and Pineapples, 1921-1931 Canned pack Canners' opening prices per dozen No. 2k cans Year California apricots Pacific Coast pears Hawaiian pineapples Total Choice apricots Choice pears Fancy sliced pineapples / 2 3 4 5 6 7 1921 1922 cases 1,150,514 3,569,918 1,562,298 2,050,405 2,196,680 3,390,418 3,116,713 2,097,070 4,211,471 2,069,471 2,096,340 cases 1,248,157 2,546,294 1,830,874 2,195,913 3,591,444 3,364,047 2,748,719 4,314,876 4,387,913 4,361,807 3,775,730 cases 5,262,503 4,770,239 5,895,747 6,825,904 8,728,580 8,939,590 8,879,252 8,663,056 9,211,376 12,672,296 12,807,291 cases 7,661,174 10,886,451 9,288,919 11,072,222 14,516,704 15,694,055 14,744,684 15,075,002 17,810,760 19,103,574 18,679,361 dollars 2.25 2.60 2.05 2.35 2.30 2.45 2.45 2 30 2.55 1.90 1.65 dollars 3.05 3.15 2.55 2 90 3 20 2.40 2.50 2.40 3.15 2.05 1.85 dollars 2.25 2.90 1923 3.00 1924 2.60 1925 1926 2.15 2.35 1927 2 10 1928 .... 2 20 1929 2.35 1930 2.10 1931....: 1.75 Sources of data: Cols. 1 and 3: from Canners League of California. Col. 2: from Canners League of California and Northwest Canners Association. Cols. 5, 6, and 7: based on canners' quotations as reported in the California Fruit News. the list price of No. 2% fancy pineapples was reduced to $1.35 a dozen, $0.50 a dozen below the opening price. However, the list price was raised to $1.40 a dozen in Januar}^, 1932, and to $1.50 a dozen in March, 1932. During 1931-32, list prices on canned apricots and canned pears were also reduced materially. In May, 1932, No. 2y 2 Choice apricots were quoted at $1.35 a dozen and No. 2y 2 Choice pears at $1.55 a dozen. During the coming years canned pineapples and canned pears are likely to offer keen competition to canned peaches in the consuming markets. The estimated production of pineapples in the Hawaiian Islands in 1931 was about 4,000,000 cases in excess of the 1931 pack. Only one-half of the Bartlett-pear acreage in California is now in full bearing, while in Oregon and Washington a substantial proportion of the trees has not yet reached maximum production. Bul. 547] Supply, Demand, Prices of California Peaches 29 Foreign Markets for California Canned Peaches. — The United King- dom is the most important foreign market for California canned peaches, taking on the average about 77 per cent of our total exports. For the five years 1925-1929, Canada ranked second in importance followed by Cuba, France, and the Netherlands in the order named. Table 10 shows the 1925-1929 average exports of canned peaches from the United States by countries of destination. TABLE 10 United States Exports of Canned Peaches by Countries of Destination, Average 1925-1929, Annual 1925-1930 Country of Calendar year destination Average 1925-1929 1925 1926 1927 1928 1929 1930 United Kingdom. Canada Cuba cases 1,417,905 130,261 47,247 46,091 32,714 23,573 17,549 14,718 8,889 9,103 7,543 92,420 1,848,013 per cent 76.7 7.0 2 6 2.5 1.8 1.3 0.9 0.8 0.5 5 0.4 5.0 100.0 cases 1,547,082 77,232 72,097 41,222 22,090 3,882 10,000 20,025 9,032 8,390 4,173 68,088 1,883,313 cases 1,177,849 89,364 43,695 33,281 12,483 10,699 11,308 1,143 7,405 6,679 8,180 77,895 1,479,981 cases 1,333,454 122,910 56,967 26,398 36,972 18,086 15,337 9,819 8,432 5,829 7,823 95,234 1,737,261 cases 1,584,787 173,087 37,244 64,308 47,393 39,364 27,017 29,483 9,384 10,802 8,951 106,782 2,138,602 cases 1,446,354 188,714 26,233 65,247 44,634 45,833 24,083 13,118 10,191 13,815 8,589 114,098 2,000,909 cases 1,240,289 123,001 21,250 24,733 34,219 19,694 Sweden New Zealand British India 10,186 3,859 14,729 10,380 6,700 Others Total 78,753 1,587,793 Source of data : U. S. Dept. of Com. Foreign Commerce and Navigation of the United States, annual issues. Pounds were converted to cases on the basis of 45 pounds per case. Exports of canned peaches from the United States to the United Kingdom increased materially between 1923-24 and 1927-28, as shown by the black portion of the bars in figure 14. In 1923-24 our exports to that country amounted to 883,000 cases, in 1927-28 to 1,571,000 cases, an increase of 78 per cent. In 1928-29, exports were only slightly smaller than in 1927-28 but in 1929-30 and 1930-31 they were sub- stantially smaller. The high prices of California canned peaches in 1929-30 were mainly responsible for the decreased exports in that year. In 1930^31, however, the principal cause of the relatively low exports was the depressed buying power of the British consumers and the increased supply of canned peaches from Australia. Exports of canned peaches from Australia to the United Kingdom are represented by the open portion of the bars in figure 14. During the three years 1923-24 to 1925-26, Australia exported an average of 30 University of California — Experiment Station 80,000 cases to the United Kingdom as against an average of 288,000 cases during the three years 1928-29 to 1930-31. Virtually all of the United Kingdom imports of canned peaches come from the United States and Australia. The combined imports from these two countries into the United Kingdom almost doubled between 1923-24 and 1928-29. A part of this large increase in the consumption Exports of Canned Peaches to the United Kingdom from the United States and Australia, 1923-24 to 1930-31 18 □ AUSTRALIA Bi UNITED STA TES 16 14 «9 co 8 olO o 8 8 6 4 2 o> a o> o» Year beginning June 1 Tig. 14. — In the United Kingdom there is considerable competition between California and Australian canned peaches. Data from table 11. of canned peaches in the United Kingdom was the result of lower prices, a part the result of increased demand. Prices which California canners received for canned peaches exported to the United Kingdom experi- enced about the same decline as the prices received for canned peaches sold in the United States. This decline in prices, while partly responsible for the increased consumption, was not sufficiently great, however, to cause the virtual doubling of consumption. There has been a real in- crease in the demand for canned peaches in the United Kingdom since 1923-24. During the past two years, however, the trend of demand has not increased as rapidly as it did between 1923-24 and 1928-29. The actual demand for canned peaches in the United Kingdom in 1930-31 Bul. 547] Supply, Demand, Prices of California Peaches 31 TABLE 11 United Kingdom Imports of All Canned Fruits, and United States and Australian Exports of Canned Peaches to the United Kingdom, 1923-24 to 1930-31 United Kingdom imports of all canned fruits Exports of canned peaches to the United Kingdom from Year United States Australia Total United States and Australia 1 2 3 4 1923-24 1,000 cases 4,265 5,609 6,555 5,990 6,107 6,814 6,637 6,883 7,545 1,000 cases 883 986 1,429 1,301 1,571 1,544 1,262 1,348 1,292 1,000 cases 39 133 67 121 163 260 210 393 300 1,000 cases 922 1924-25 1,119 1925-26 1,496 1926-27 1,422 1927-28 1,734 1928-29 1,804 1929-30 1,471 1930-31 1,741 1931-32 1,592 Sources of data: Col. 1: Dept. of Customs and Excise. Accounts Relating to the Trade and Navi- gation of the United Kingdom. Data reported in hundredweight of 112 pounds. Pounds converted to cases on the basis of 45 pounds per case. Year is from July to June. Col. 2: U. S. Dept. Com. Monthly Summary of Foreign Commerce of the United States, monthly issues. Pounds were converted to cases on the basis of 45 pounds per case. Year is from June to May. Col. 3: Compiled by M. E. Brooding, California Packing Corporation. Year is from June to May. TABLE 12 Canadian Imports of Canned Peaches and Apricots by Countries of Origin, 1922-23 to 1931-32 Year: April-March Total United States Australia Others 1922-23 cases 46,329 39,200 74,065 90,586 118,037 174,617 246,562 277,286 186,347 162,441 cases 46,291 39,200 74,060 90,582 106,887 170,008 222,399 219,797 102,228 24,922 cases cases 1923-24 ... . 1924-25 5 1925-26 4 11,137 4,600 24,162 57,417 83,055 137,460 1926-27 13 1927-28 9 1928-29 1 1929-30 72 1930-31 1,064 1931-32 59 Source of data: Canada Bur. Statis. Quarterly reports of the trade of Canada. 32 University of California — Experiment Station and 1931-32 was much below the trend, just as it was in the United States. The present business depression is world-wide, and the effects of the depression upon the buying power of consumers are fully as pro- nounced in the United Kingdom as in the United States. In 1931-32 the market for California canned peaches in the United Kingdom was further restricted by the reduction in the value of the English pound sterling. In September, 1931, Great Britain went off the gold standard and the value of the pound sterling in terms of United States dollars declined about 20 per cent. Australian canned peaches imported into the United Kingdom are accorded a preferential rate of one-half the general rate which prevails on canned peaches imported from the United States. The general rate on canned peaches in thick syrup is 6s. lO^d. per cwt. (112 pounds) which, with exchange at par, is equivalent to 1.5 cents a pound. In the United Kingdom, as in the United States, canned peaches meet with considerable competition from other canned fruits. The average annual imports of all canned fruits into the United Kingdom during the five years 1926-27 to 1930-31 amounted to 6,486,000 cases of which canned peaches constituted only 25 per cent. In 1930-31 imports of all canned fruits amounted to 6,883,000 cases as against 4,265,000 cases in 1923-24, an increase of 61 per cent (table 11). Not only is Australia the most important competitor of the United States in the United Kingdom, but is likewise our most important com- petitor in Canada. The Canadian imports of canned peaches and apri- cots by countries of origin from 1922-23 to 1931-32 are given in table 12. Canned peaches and canned apricots are not separately reported in the Canadian import statistics. Records of the exports of these two fruits from the United States and Australia to Canada indicate, however, that from 85 to 90 per cent are canned peaches. Prior to 1926-27 all of the Canadian imports of canned peaches came from this country. In 1930-31, however, the United States supplied only 55 per cent, and in 1931-32 only 15 per cent. In 1925 Canada and Australia entered into a treaty whereby imports of canned peaches from Australia into Canada were accorded preferential treatment with respect to import duties. The Canadian import duty on Australian canned peaches is now 1 cent a pound ; whereas the import duty on canned peaches from this country is 5 cents a pound. 8 s This rate became effective August, 1931. Prior to that date the rate on United States canned peaches was 2.75 cents a pound and on Australian canned peaches 0.50 cents a pound. Bul. 547] Supply, Demand, Prices of California Peaches 33 DRIED PEACHES Kinds of Peaches Dried. — Practically all of the peaches used for drying are freestone varieties, mainly Muirs and Lovels. Muirs are used almost entirely for drying, but Lovels are also shipped fresh and in past years have been canned. Some experimental work in the drying of clingstone varieties was begun several years ago, but it was not until 1930 that commercial drying was undertaken. It is estimated that in 1931 about 8,100 tons of clingstones were dried. The refusal of canners to purchase any fruit except No. 1 Tuscans, Phillips, and New Midsum- mers, and the low prices received for clingstones shipped to eastern markets encouraged some growers to dry a part of their fruit. Further- more, the very low prices at which clingstones could be purchased for drying induced operators of commercial dehydrators to buy some fruit for this purpose. 9 However, it has not yet been demonstrated that dry- ing will offer a profitable outlet for large quantities of clingstone peaches or that dried clingstone peaches will become a serious competi- tor of dried freestones in the markets. The cost of drying clingstones is considerably above that of drying freestones. Clingstones are dehy- drated which is a more expensive process than sun-drying, the common practice with freestones. It also is more expensive to pit clingstones. [n addition, it is usually necessary to peel clingstones, an operation not performed with freestones. The drying ratio is also considerably higher with clingstones than with the principal varieties of freestones. Utilization of California Freestone Peaches. — The annual production of freestone peaches in California from 1920 to 1931 is represented by the total length of the bars in figure 15. During this period there has been a downward trend in production. The average production for the four years 1928-1931 amounted to 192,000 tons as against an average of 228,000 tons for the four years 1920-1923, a decrease of 16 per cent. Practically all of this decline has been reflected in a reduction of free- stones used for canning, which are represented by the open portion of the bars in figure 15. During the four years 1920-1923, an average of 31,000 tons of freestones was used for canning, whereas during the four years 1928-1931, an average of only 4,350 tons was canned. The output of dried peaches, represented by the black portion of the bars, and the shipments of fresh peaches, represented by the cross-hatched portion, have experienced no significant upward or downward trend 9 About 700 tons of clingstone peaches were sold to commercial dehydrators in 1931 by the Cling Peach Control Committee at a price of $6.00 a ton. 34 University of California — Experiment Station during the past decade. If the downward trend in total production of freestone peaches in California continues, however, the output of either dried or fresh peaches or both will tend downward. Age Distribution of Freestone-Peach Acreage in California. — The available data on the age distribution of freestone-peach acreage in Cali- fornia, which are given in table 13, indicate that a further decline in the trend of production of freestone peaches in the state is in prospect during the next few years. In 1929 about 90 per cent of the total acreage was in bearing, and only 10 per cent was nonbearing. Furthermore 64 Utilization of Freestone-Peach; Production, California., 1920-1931 320 280 »240 "S200 w 160 CO § -P120 r 80 _C3CANNED. VZA SHIPPED FRESH Wk DRIED 40 llllllllllill o cH CM to ^ iO to t»- CO Ot o 1-4 CM M CM CM CM CM CM CM CM CM to E? at o> ot o> o> a* <7> 0) o> 0> o> o> Fig. 15. — Virtually all of the decrease in freestone-peach production in California since 1920 has been in the volume canned. Data from table 32. per cent of the total acreage in that year was eleven years of age and older. Since the average commercial life of a peach tree is only about twenty years, it is evident that a considerable decrease in bearing acre- age due to old age may be expected. Plantings of freestone peaches during recent years have been small and the number of young trees now in the ground is not sufficient to replace the loss that will normally occur in the old trees. A considerable part of this prospective decline in acreage is likely to be in the principal drying-peach varieties, since in 1929 about 78 per cent of the acreage of Muirs and about 61 per cent of the acreage of Lovels were eleven years of age and older. United States Production and Exports of Dried Peaches. — California production of dried peaches, which constitutes the total national pro- duction of this fruit, is represented by the total length of the bars in Bul. 547] Supply, Demand, Prices of California Peaches 35 figure 16. Production has fluctuated widely from year to year, but no marked upward or downward trend during the past eleven years is apparent. The United States exports of dried peaches from 1921-22 to 1931-32 are represented by the open portion of the bars in figure 16. The average annual exports during these eleven years amounted to 3,600 tons, which was 15 per cent of the average annual production. During this same period there has been no definite upward or downward trend in the volume exported. The variation in exports from year to year, however, has been considerable. TABLE 13 Age Distribution of Freestone-Peach Acreage, California, 1929 Age of trees in 1929 Muirs Lovels Other varieties All varieties land 2 per cent 4.2 2.8 4 3 6.8 4.7 77.8 100 per cent 4.2 5.1 9.7 12 4 7.2 61.4 100.0 per cent 10.4 8 11.1 9.7 4.0 56.8 100.0 per cent 6.9 3 and 4 5.8 8.8 7 and 8 9.5 9 and 10 5 11 and older Total 64 100.0 Source of data : California Cooperative Crop Reporting Service, Sacramento. Foreign Markets for Dried Peaches. — The volume of dried peaches exported from the United States to various foreign countries is shown in table 15. For years Canada, Germany, and the United Kingdom have been the most important foreign buyers of California dried peaches. During the five years 1925-1929 these countries took 62.7 per cent of our total exports, as against 79.5 per cent in 1910-1914. Between the two five-year periods 1910-1914 and 1925-1929, the proportion of the total exports going to Canada has decreased from 42.4 per cent to 26.8 per cent; while the proportion going to Germany has decreased from 29.1 per cent to 24.2 per cent. On the other hand, the proportion going to the United Kingdom has increased from 8.0 per cent to 11.7 per cent. Several countries, such as Sweden, Finland, Denmark, and Italy, which before the World War bought only a few tons of dried peaches from the United States, now buy substantial quantities. The proportion of the total United States dried-peach exports going to Europe increased from 48.6 per cent in 1910-1914 to 63.6 per cent in 1925-1929. In the United Kingdom and to a minor extent in Canada, California dried peaches come in competition with those produced in Australia 36 University of California — Experiment Station United States Production and Exports of Dried Peaches, 1921-22 to 1931-32 36 32 CD EXPORTS WdPRODUCTION ^litetoHff 12 Year beginning July 1 Pig. 16. — On the average about 15 per cent of our dried peaches are exported. Data from table 14. TABLE 14 United States Production and 1921-22 to Exports of 1930-31 Dried Peaches, Year: July-June Production Exports Production minus exports Percentage exported 1 t 3 4 1921-22 tons 21,000 28,000 26,000 24,500 16,200 28,200 17,230 28,200 15,500 26,000 20,300 tons 3,130 2,793 6,487 2,334 1,675 3,484 3,271 6,218 1,923 4,241 4,245 tons 17,870 25,207 19,513 22,166 14,525 24,716 13,959 21,982 13,577 21,759 16,055 per cent 14.9 1922-23 10.0 1923-24 25.0 1924-25 9.5 1925-26 10.3 1926-27 12 4 1927-28 19 1928-29 22 1929-30 12.4 1930-31 16 3 1931-32 20.9 Sources of data: Col. 1: from table 30, col. 4. Col. 2: from U. S. Dept. Com. Monthly Summary of Foreign Commerce of the United States, monthly issues. Bul. 547] Supply, Demand, Prices of California Peaches 37 and the Union of South Africa. There is no duty on dried peaches im- ported into the United Kingdom. In Canada, the duty on dried peaches from the United States is 25 per cent ad valorem. Dried peaches from Australia, however, are admitted free. Prices of Dried Peaches. — The average f .o.b. prices of dried peaches from 1910 to 1931, as represented by packers' quotations on Choice Muirs in 25-pound boxes, are expressed as percentages of the 1910-1914 TABLE 15 United States Exports of Dried Peaches by Countries of Destination, Averages 1910-1914 and 1925-1929, Annual 1925-1930 Country Fiscal year, Calendar year of destination average 1910-1914 Average 1925-1929 1925 1926 1927 1928 1929 1930 tons 1,195 820 226 111 18 126 48 13 5 20 32 29 178 2,821 per cent 42.4 29.1 8.0 3.9 0.6 4.5 1.7 0.5 0.2 0.7 1.1 1.0 6.3 100.0 tons 909 821 395 284 164 158 114 110 94 72 58 38 169 3,386 per cent 26.8 24.2 11.7 8.4 4.8 4.7 3 3 3 2 2.8 2.1 1.7 1.1 5.2 100.0 tons 1,037 270 243 109 34 49 91 49 54 82 42 34 112 2,206 tons 800 625 427 101 35 147 94 133 60 51 68 31 95 2,667 tons 756 901 492 153 104 167 63 95 87 114 46 38 242 3,258 tons 1,179 1,259 476 534 324 250 160 181 144 74 86 44 194 4,905 tons 775 1,051 337 522 323 178 161 89 127 39 48 42 201 3,893 tons 239 857 United Kingdom France 672 110 Italy 42 Netherlands 617 122 19 Finland 77 109 311 42 Others 102 Total 3,319 Source of data: U. S. Dept. of Commerce. Foreign Commerce and Navigation of the United States, annual issues. average price. These relative prices are shown by the solid line in figure 17. From 1910 to 1915 there was a downward trend in prices. Beginning in 1916, however, and continuing until 1919, prices of dried peaches, in sympathy with the prices of all commodities, which are represented by the broken line in figure 17, rose rapidly. During this period the rise in the prices of dried peaches was much greater than the rise in the prices of all commodities, but in 1920 and 1921 the decline in the prices of dried peaches was more rapid than the decline in the prices of all commodities. From 1921 to 1929 prices of all commodities remained stable. Prices of dried peaches fluctuated widely from year to year, largely as a result of changes in the size of the crop. There was, how- ever, no downward trend in prices. During this period most of the deciduous fruits in California were characterized by an upward trend 38 University of California — Experiment Station Relative Prices of Dried Peaches and All-Commodity Index of Wholesale Prices, 1910-1931 360 1 A RELATIVE prices of #\ r DRIED PEACHES 4% 8 tZ v 0) 2 200 K \. 'x ' \ \ 4> to (8 ALL- COM INDEX M0DITY/ // v^ »lff« •"■"*•* --J* "N 5 80 40 t ^| S* 1 1 i 1 i i I I I i o>o-Ho.-i -HCM 0)O>O)O>O>G>O)O>O)O> Fig. 17. — There has been no downward trend in the prices of dried peaches during the past decade. Data from table 31. United States Harvested Production of Fresh Peaches, 1920-1931 Fig. 18. — The peak in the trend of fresh-peach production in the United States was reached in 1926. Data from table 27, col. 4. Bul. 547] Supply, Demand, Prices of California Peaches 39 in production and a downward trend in prices. Dried peaches were one of the few exceptions. The low price of dried peaches in 1930 is chiefly accounted for by the large production in that year, by the decline in the general price level, and by the low buying power of consumers both in this country and abroad. In 1931 the production of dried peaches in California was sub- stantially below that of 1930. Prices, however, were only slightly higher. The influence of the smaller production upon the price was largely offset by further declines in the general price level and in the buying power of consumers. FRESH PEACHES Trend of Fresh-Peach Production, United States. — The annual har- vested production of fresh peaches in the United States from 1920 to 1931 is shown in figure 18. During the first seven years of this period there was a substantial upward trend in production, rising from 650,000 tons in 1920 to 960,000 tons in 1926, an increase of 48 per cent. The peak of fresh-peach production was reached in 1926 and since then the trend has been downward. In 1931 the trend was 14 per cent below that of 1926. The actual production in 1931, however, was considerably above the trend. In that year weather conditions throughout the princi- pal peach-producing states, with the exception of California, were fa- vorable to high yields per acre. California Interstate Shipments of Fresh Peaches. — Although Cali- fornia ranks second in the production of fresh peaches in the United States, being exceeded only by Georgia, the volume produced in this state constitutes only a small part of the total national crop. During the five years 1926-1930, shipments of fresh peaches from California aver- aged 3,282 cars a year, as against an average of 32,900 cars for the United States as a whole. The annual shipments from California are shown in the lower part of figure 19, shipments from all other states in the upper part. From 1921 to 1926 the trend of California interstate shipments was down- ward. This was a period of rapidly increasing shipments from other states. In 1921 the trend of shipments from other states was at 23,500 cars, in 1926 at 34,000 cars, an increase of 45 per cent. This increased competition from other states caused a gradual contraction in the markets for California fresh peaches. Since 1926 the trend of carlot shipments from other states has been downward, 10 and as a result Cali- fornia growers have been able to expand their eastern shipments. !0 The decline in the trend of carlot shipments has Jbeen more rapid than the decline in the trend of production because of the increase in truck shipments. 40 University of California — Experiment Station United States Carlot Shipments of Fresh Peaches, 1921-1931 20 15 10 °6 5 4 ALLSTA1 ES EXCEPT CAUFOR MIA | 1 /shipments ■^c, *^M < TREh iDY^j^ "/ / CALIFORNIA INTERSTATE PMENTS> SH ■ J^~~ f-r. REND *^"" Fig. 19. — The volume of jfresh peaches shipped from California is influenced by the shipments from other states. Data from table 33. A secondary cause of the upward trend of California interstate shipments since 1926 has been the increase in shipments of fresh cling- stone peaches resulting from the low prices paid growers for canning clingstones. From 1922 to 1926 an average of 32,900 boxes of clingstone peaches was sold on the Chicago auction market ; during the five years, 1927-1931, sales averaged 84,203 boxes. That the volume of fresh peaches shipped from other states has an important effect upon California interstate shipments is also indicated by the fluctuations in shipments from year to year. From 1921 to 1931, with the single exception of 1929 when the crop in this state was very short, an increase in shipments from other states has been accompanied Bul. 547] Supply, Demand, Prices of California Peaches 41 by a decrease in shipments from California, and conversely a decrease in shipments from other states has been accompanied by an increase in shipments from California. The average weekly movement of fresh peaches from California is shown in figure 20. Shipments normally begin the first week in June Weekly Carlot Shipments of Fresh Peaches from California, Average 1926-1930 00 t> 3 SS 3 5 1,000 900 800 700 600 ° 500 400 300 200 100 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Weeks in shipping season Fig. 20. — Most of California's fresh peaches are shipped between the middle of July and the middle of August. Data from table 34. and continue for twenty weeks. The bulk of the peaches, however, are shipped during the eighth, ninth, and tenth weeks, which are usually between the third week in July and the second week in August. There is, of course, considerable variation in the shipping season from year to year. In 1931 the season was unusually early ; the peak shipments came in the week ending July 18. On the other hand, the 1927 season was unusually late; the peak shipment that year was in the week ending August 13. Competition from Other Peach-Producing States. — There is no time during the entire shipping season when California fresh peaches are not subject to considerable competition from those grown in other states. In 42 University of California — Experiment Station Monthly Carlot Shipments of Fresh Peaches, United States, Average 1926-1930 1,00 car 2 10 8 6 4 2 4 2 4 2 s CALIFORNIA (NTERS T ATE EARLY-SHIPPING —m^m - STATES ■ ■ 1 ■ ■ - ■ ■ MIDSEASON-SHIPPING STATES ■ - ■ LATE-SNIPPING STATES ■ ■ May June July Aug. Sept. Oct. Fig. 21. — The shipping season of California fresh peaches occurs at the time when shipments from other states are also heavy. Data from table 16. figure 21 the 1926-1930 average monthly shipments of fresh peaches from the early, midseason, and the late-shipping groups of states are compared with the average monthly shipments from California. The states included in each group are given in table 16. Shipments from the early-shipping states begin in May and reach the peak in July, those from the midseason-shipping states begin in July and reach the peak in August, while those from the late-shipping states begin in August and reach the peak in September. Bul. 547] Supply, Demand, Prices of California Peaches 43 TABLE 16 Monthly Carlot Shipments of Peaches by States of Origin, Average 1926-1930 State Early-shipping states: total Georgia Arkansas North Carolina South Carolina Texas Alabama Oklahoma Mississippi Midseason-shipping states: total Illinois Tennessee Delaware Virginia Maryland Indiana West Virginia Kentucky Missouri Late-shipping states: total.. New York Colorado Washington Pennsylvania Utah New Jersey Michigan Ohio Idaho Oregon California interstate May 84 June 766 635 1 54 20 4 35 4 13 103 July 11,741 7,940 1,570 1,234 455 361 113 35 33 372 29 299 5 12 11 2 1 7 6 1,285 August 2,963 1,294 637 805 181 11 19 16 4,411 2,132 858 316 338 263 311 134 45 14 1,854 3 686 468 217 200 244 5 3 19 1,571 Septem- ber 343 50 13 101 31 67 1 4,668 1,373 754 630 422 432 314 394 258 56 35 306 October 373 316 4 10 1 Total 17,554 11,949 2,208 2,097 656 376 167 55 5,131 2,243 1,157 371 363 375 347 302 52 21 6,912 1,692 1,445 1,113 642 633 566 416 280 76 49 3,281 Sources of data: All states except California from U. S. Dept. Agr. Crops and Markets, monthly issues. California interstate from U. S. Dept. Agr. Bur. Agr. Econ. Interstate movement of California deciduous fruits. San Francisco, California. (Mimeo.) Total shipments from states other than California are the heaviest in July. During the five years, 1926-1930, an average of 12,130 cars was shipped during that month. In August shipments averaged 9,228 cars, and in September 5,011 cars. Thus shipments from all other states com- bined are heaviest during the same two months that shipments from Califorina are at the maximum. The annual total production of peaches in these three groups of states from 1920 to 1931 is given in figure 22. In the early-shipping states there was a marked upward trend in production from 1920 to 1926, since 1928 the trend has been downward. In the midseason-shipping states there was a slight upward trend during the entire period, while 44 University of California — Experiment Station United States Peach Production by Groups of States, 1920-1931 Fig. 22. — Production of peaches in the early-shipping states increased rapidly from 1921 to 1926 but has declined since 1928. In the midseason and late-shipping states the level of production has not changed materially. Data from table 26. States included in each group are the same as in figure 21. in the late-shipping states no definite upward or downward trend is evident. The available data on the age distribution of peach trees in commer- cial orchards in Georgia, North Carolina, South Carolina, and Arkansas, the principal early-shipping states, which are given in table 17, point towards a further downward trend in production during the next few years. In 1929 about 18 per cent of the peach trees in these four states were ten years of age and over. Some of these trees have been removed or abandoned since the spring of 1929 when the survey was taken, and within the next two years virtually all of the remainder will be out of production, since the average commercial life of a peach tree in the southern states is only thirteen to fifteen years of age. The 55 per cent Bul. 547] Supply, Demand, Prices of California Peaches 45 of the trees which were from six to nine years of age in 1929 have now reached the age of maximum yields and will soon be declining in pro- ductivity. The decline in production from the older trees is not likely to be fully offset by the increase in bearing capacity of the young trees. Only 28 per cent of the total trees in 1929 were less than six years of age. Plantings in 1930 were relatively light. The situation in 1929 with respect to the age distribution of the peach trees in the southern states was a decided contrast to that which pre- TABLE 17 Age Distribution of Peach Trees in Commercial Orchards in Georgia, North Carolina, South Carolina, and Arkansas, 1925 and 1929 Georgia North Carolina South Carolina Arkansas Total Age of trees Trees Per cent Trees Per cent Trees Per cent Trees Per cent Trees Per cent 1925 survey Under 6 6-9 4,720,047 2,405,086 852,197 7,977,330 2,214,668 5,514,500 1,983,072 9,712,240 59.2 30.1 10.7 100.0 22.8 56.8 20.4 100.0 1,737,187 396,309 56,740 2,190,236 300,992 960,110 139,703 1,400,805 79.3 18.1 2.6 100.0 21.5 68.5 10.0 100.0 737,643 54,916 32,679 825,238 240,063 390,615 54,584 685,262 89.4 6.7 3.9 100.0 35.0 57.0 8.0 100.0 546,663 108,214 135,751 790,628 840,792 231,342 151,294 1,223,428 69.1 13.7 17.2 100.0 68.7 18.9 12.4 100 7,741,540 2,964,525 1,077,367 11,783,432 3,596,515 7,096,567 2,328,653 13,021,735 65.7 25.2 10 and over Total 1929 survey Under 6 6-9 9.1 100.0 27.6 54 5 10 and over Total 17.9 100.0 Source of data: U. S. Dept. Agr. Bur. Agr. Econ. Commercial peach orchard survey, spring of 1929. March 18, 1930. (Mimeo.) vailed in 1925. In that year about 66 per cent of the trees were less than six years of age, 25 per cent six to nine years of age, and only 9 per cent ten years of age and older. Competition of Other Fruits with California Fresh Peaches. — Other fresh fruits reach the consuming markets in large volume at the same time that California fresh peaches are being marketed. Table 18 shows the 1926-1930 average monthly shipments of the more important fruits which compete with fresh peaches. During the six months of May to October, strawberry and orange shipments are heaviest in May, cherry, cantaloupe, apricot, and banana shipments in June, watermelon ship- ments in July, pear shipments in August, plum and prune shipments in September, and table grape, grapefruit, and apple shipments in October. 46 University of California — Experiment Station Distribution of California Fresh Peaches. — Fresh peaches are dis- tributed among a larger number of markets than are other deciduous tree fruits grown in the state. Many small markets, in which it is im- possible to sell a straight carload of cherries, plums, or pears, take one or more full carloads of peaches. Reports on the destination of the interstate shipments of fresh peaches show that in 1930 one or more carloads were sent to 218 cities in the United States and 16 cities in TABLE 18 Monthly Carlot Shipments of Certain Fresh Fruits, United States, Average 1926-1930 Fruit May June July August September October Cherries Strawberries Cantaloupes Watermelons Plums and prunes Apricots Pears Mixed deciduous... Table grapes* Oranges Grapefruit Apples Banana imports Total cars 567 8,727 3,857 1,310 142 41 10 78 6,707 1,312 2,070 4,427 39,248 cars 1,047 2,638 8,816 15,390 1,599 359 218 748 113 4,743 293 1,118 15,278 52,360 cars 663 120 8,313 24,551 1,275 38 3,276 1,386 1,210 4,113 113 2,890 13,504 61,452 cars 134 7 4,498 9,385 1,757 6,922 2,095 3,674 3,765 55 3,579 13,285 49,156 3 5 2,044 1,322 2,166 6,901 1,139 5,915 3,291 405 15,964 10,055 49,210 1 74 61 159 2,908 327 7,743 4,248 1,930 39,755 11,224 68,430 * Average 1928-1930. Source of data: Shipments of cherries, strawberries, cantaloupes, watermelons, plums and prunes, mixed decidu- ous fruit, oranges, grapefruit, apples, and pears from all states except California from: U. S. Dept. Agr. Crops and Markets, monthly issues. Apricots, table grapes, and California pears are California interstate shipments from: U. S. Dept. Agr. Bur. of Agr. Econ. Interstate movement of California deciduous fruits. San Francisco, California. (Mimeo.) Banana imports are from: U. S. Dept. Com. Monthly Summary of Foreign Commerce of the United States, monthly issues. Canada. The wide distribution of California fresh peaches is also indi- cated by the fact that only one-half of the interstate shipments, on the average, are unloaded in the 64 principal markets of the United States outside of California. Although California fresh peaches are shipped to many of the states in the Union, the bulk of the crop is marketed in the area west of Indiana and north of Arkansas. During the three years 1928-1930, approxi- mately 75 per cent of the interstate shipments were sent to markets in this area. Markets in the eastern states are much more accessible to the other important peach-producing sections than they are to California. It is only in those years when the peach crop in these other states is small that California growers can profitably market large quantities in the eastern markets. Ordinarily Cleveland, Ohio, for example, is not an Bul. 547] Supply, Demand, Prices of California Peaches 47 Average Delivered Auction Prices of California Elberta Peaches at Chicago, 1921-1931 $1.3< 0.7 0.9< 1.0 1.1' o) r-i co en o a O rH O O O C 1.40 1.20 .ol.OO u 9 ^o.so VI u a 3 0.60 o Q 0.40 0.20 o.oo Fig. 23. — During the four years 1928-1931, the average price of California Elberta peaches at Chicago was 15 per cent below the average of the previous four years. Data from the Chicago Daily Fruit and Vegetable Reporter. TABLE 19 United States Production and Exports of Fresh Peaches, 1922-23 to 1930-31 Year: May-April Production Exports Percentage of production exported / 2 3 1922-23 tons 969,000 768,000 1,005,000 777,000 1,143,000 689,000 1,060,000 805,000 605,000 1,180,000 tons 6,484 7,536 8,022 8,120 7,240 8,847 11,109 9,970 6,359 5,446 per cent 0.67 1923-24 0.98 1924-25 0.80 1925-26 1.05 1926-27 0.63 1927-28 1.28 1928-29 1.05 1929-30 1.24 1930-31 1.05 1931-32 0.46 Sources of data: Col. 1: from table 27, col. 4. Col. 2: from U. S. Dept. of Com. Monthly Summary of Foreign Commerce of the United States, monthly issues. 48 University of California — Experiment Station important market for California fresh peaches ; yet in 1930, when die fresh-peach crop throughout the country was short, 89 cars of Cali- fornia peaches were unloaded in that city. On the other hand, in 3" ^ when the United States fresh-peach crop was large, only 9 car» California peaches were unloaded in Cleveland. Prices of California Elbert a Peaches. — The Elberta is the most im- portant variety of California peaches shipped fresh. Approximately 62 TABLE 20 United States Exports of Fresh Peaches by Countries of Destination, Average 1925-1929, Annual 1925-1930 Calendar year Country of destination Average 1925-1929 1925 1926 1927 1928 1929 1930 tons 8,399 180 179 140 93 20 5 3 36 9,055 tons 7,491 227 166 145 12 22 6 44 8,113 tons 6,625 194 200 134 22 24 4 2 22 7,227 tons 8,265 262 86 152 23 29 8 9 31 8,865 tons 9,965 152 366 146 401 7 2 51 11,090 tons 9,651 63 78 121 8 16 6 3 33 9,979 tons 5,986 Cuba 137 16 121 36 25 Philippine Islands Newfoundland and Labrador Others 6 3 37 Total 6,367 Source of data: U. S. Dept. of Com. Foreign Commerce and Navigation of the United States, annual issues. per cent of the total sales of California freestone peaches on the Chicago auction market during the five years 1927-1931 were Elbertas. The average auction prices of California Elbertas at Chicago from 1921 to 1931 are shown in figure 23. During the four years 1924-1927, prices were relatively favorable, averaging $1.09 a box, which with the 1931 freight and refrigeration rates is equivalent to a farm price of about $34 a ton. 11 Since 1927 prices have been lower; the 1928-19^1 average auction price was $0.92 a box, which is equivalent to a farm price of about $18 a ton. Considering the recent decline in the general price level, the depressed buying power of consumers, and the very large peach crop in other states, prices of California Elbertas held up remarkably well in 1931, the average for the season being $0.89 a box. Perhaps the chief cause of the relatively favorable showing in 1931 was the small volume of California Elbertas shipped to eastern markets. ii The freight and refrigeration rate to Chicago in 1931 was $0.4472 a box. The standard commission rate is 7 per cent of the delivered price. The cost of packing and loading was approximately $0.23 a box. Bi . 547] Supply, Demand, Prices of California Peaches 49 SL pments of all fresh peaches from California in 1931 amounted to 1,8G4 cars as against an average of 3,282 cars during the five years * "6-1930. united States Exports of Fresh Peaches. — Virtually all of the United S tes production of fresh peaches is consumed in this country. Export ma kets have never afforded an outlet for as much as 2 per cent of the crop. The United States harvested production and exports of fresh peaches from 1922-23 to 1930-31 are given in table 19. Average exports during the three years 1922-23 to 1924-25 amounted to 7,347 tons, or 0.8 per cent of the average production, as against 9,068 tons, or 1.1 per cent of the average production, during the three years 1928-29 to 1930-31. Canada has always been the principal foreign market for our fresh peaches, taking on the average about 93 per cent of the total exports. During the five years 1925-1929, Cuba ranked next in importance, fol- lowed closely by the United Kingdom (table 20). The failure of European countries, particularly the United Kingdom, which normally imports large quantities of fresh apples and pears from this country, to take substantial quantities of fresh peaches is appar- ently due to the difficulty of obtaining a quality product at a reasonable price. Fresh peaches are relatively perishable as compared with fresh apples and fresh pears, and consequently cannot be shipped abroad as easily or as cheaply as these other fruits. PEACH ACREAGE AND PRODUCTION IN FOREIGN COUNTRIES Commercial peach production is limited to only a few of the countries in the world. The principal peach-producing countries, other than the United States, are Australia, Union of South Africa, and Chile. Australia. — The rapid expansion of the fruit industry in Australia prior to and following the War is closely connected with the irrigation projects fostered by state and federal authorities. Unfavorable financial conditions have since checked these development projects. While con- siderable increase in the fruit industry is possible in the present irri- gated areas, high cost of development, relatively low yield per acre, and restriction of state and federal assistance ere likely to prevent any great expansion in the near future. The total acreage in peaches has been declining steadily since 1921-22. The consistent decline in nonbearing acreage shows that no change in the trend of production is to be expected from this source. The decline in peach production which is indicated, does not neces- sarily imply a similar decline in the production of dried peaches, how- 50 University of California — Experiment Station TABLE 21 Acreage and Production of Peaches in Australia 1921-22 to 1930-31 Peach acreage Peach production Crop year Total Bearing Nonbearing Total Canned Dried 1 2 3 4 5 6 1921-22 acres 29,567 27,506 26,940 27,140 25,761 25,420 24,869 23,722 23,247 acres 23,187 21,453 21,709 22,338 21,325 20,910 20,877 20,301 19,934 acres 6,380 6,053 5,231 4,802 4,436 4,510 3,992 3,421 3,313 tons* 43,908 45,996 43,330 47,870 50,232 40,541 50,077 39,731 44,969 cases tons 523 1922-23 825 1923-24 479,051 643,900 758,999 621,360 982,938 662,927 1,113,766 683,796 500 1924-25 475 1925-26 389 1926-27 289 1927-28 653 1928-29 524 1929-30 538 1930-31 * Converted from bushels on the basis of 45 pounds per bushel. Source of data: Compiled by U. S. Dept. Agr. Bur. Agr. Econ., Foreign Service Division, from officia sources. TABLE 22 Exports of Dried Peaches from Australia by Countries of Destination, 1921-22 to 1930-31 Total Country of destination Year: July- June United Kingdom New Zealand Others 1922-23 tons 377 88 5 7 7 3* 155 196 204 tons 354 80 4 1 4 1 149 156 109 tons 18 5 1 5 1 4 3 27 tons 5 1923-24 3 1924-25 1925-26 1 1926-27 3 1927-28 1 1928-29 2 1929-30 37 1930-31 68 * Including 1.4 tons reexport. Source of data: Compiled by U. S. Dept. Agr. Bur. Agr. Econ., Foreign Service Division, from official sources. Bul. 547] Supply, Demand, Prices of California Peaches 51 ever. The dried-peach industry has been subsidiary to the fresh and canned-fruit industries, drying being resorted to as a means of salvag- ing such fruit that could not be handled fresh or canned. 12 From 5 to 10 per cent of the total production is utilized in this way. However, by far the greater part of the peach crop is sold fresh. Peach acreage and the utilization of peach production from 1921-22 to 1928-29 are given in table 21. Exports of dried peaches fluctuate widely but, in general, have been insignificant. Both 1927-28 and 1928-29, however, show an in- crease in the total tonnage dried and also a striking increase in exports of dried peaches as is shown in table 22. The relatively large quantity TABLE 23 Exports of Canned Peaches from Australia by Countries of Destination, 1925-26 TO 1930-31 Year: July- June Total United Kingdom New Zealand Canada Others 1925-26 cases 223,128 155,340 309,563 262,390 423,555 484,965 cases 176,985 88,590 258,868 177,895 282,453 335,429 cases 36,612 55,751 42,863 45,857 81,447 61,818 cases 3,227 5,536 4,637 33,646 54,311 81,611 cases 6,304 1926-27 .- 5,463 1927-28 3,195 1928-29 4,992 1929-30 5,344 1930-31 6,107 Source of data: Compiled by U. S. Dept. Agr. Bur. Agr. Econ., Foreign Service Division, from official sources. dried in 1928-29 in particular, is not accounted for by the size of the peach crop, which was the smallest since 1921-22. With the very erratic export movement during the past decade, it is not possible to say yet whether or not this indicates a definite upturn in the dried-peach industry. The principal market for dried peaches is the United Kingdom, which takes on an average nearly 90 per cent of Australia's exports. New Zealand, the only other country receiving an appreciable volume, takes about 4 per cent. On the average, from 10 to 15 per cent of the Australian peach crop is canned, about 25 per cent of the canned pack being exported. Practi- cally the entire Australian canned pack is of standard grade. 13 While the quality has been greatly improved, Australian canned goods still sell at a discount under American goods in the United Kingdom. The 12 United States Department of Commerce, Bureau of Foreign and Domestic Com- merce. Australian canned fruit industry. Trade Inform. Bul. 703:20. 1930. is United States Department of Commerce, Bureau of Foreign and Domestic Com- merce. Australian canned fruit industry. Trade Inform. Bul. 703:18. 1930. 52 University of California — Experiment Station advantage obtained by Australia through the United Kingdom 's prefer- ential duty rate on sugar is offset by this discount. Table 23 gives the exports of Australian canned peaches during 1925-26 to 1929-30 by countries of destination. The United Kingdom constitutes Australia's main market, taking on an average 70 per cent of the total exports. New Zealand, taking about 20 per cent, was until 1928-29 the only other single country taking a significant portion of Australia's canned ex- ports. During 1928-29 and 1929-30 Australian exports to Canada TABLE 24 Exports of Fresh Peaches from the Union of South Africa by Countries of Destination, 1922 to 1931 United Portuguese Belgian Calendar year Total Kingdom East Africa Congo Others boxes boxes boxes boxes boxes 1922 113,000 108,000 2,000 1,000 2,000 1923 130,000 125,000 4,000 * 1,000 1924 97,000 92,000 3,000 * 2,000 1925 255,000 251,000 3,000 1,000 1926 120,000 114,000 3,300 1,200 1,500 1927 380,000 369,000 5,400 1,600 4,000 1928 175,000 167,000 4,700 1,200 2,100 1929 368,000 359,000 3,200 2,900 2,900 1930 441,554 424,919 8,340 2,886 5,409 1931 391,015 362,423 14,287 4,077 10,228 * Less than 500 boxes. Source of data: Compiled by U. S. Dept. Agr. Bur. Agr. Econ., Foreign Service Division, from official sources. increased to 30,000 and 50,000 cases respectively, representing 13 per cent of the total Australian exports of those years. The Australian canning industry has had to contend with several serious disadvantages, such as high prices for fresh fruit, high canning and shipping costs, and low prices for the canned product. In the past, however, these disadvantages have been offset by government subsidies in one form or another, 14 but recently such subsidies have been greatly reduced and under present financial conditions in Australia it is antici- pated that little further assistance will be forthcoming in the near future. While present conditions continue, therefore, expansion of the canning industry in Australia is unlikely. South Africa. — Peaches are grown in practically all sections of the Union of South Africa. The Cape Province, however, offers the most suitable conditions and it is here and in the Transvaal that commercial 14 For a summary of government marketing subsidies see: United States De- partment of Commerce, Bureau of Foreign and Domestic Commerce. Australian canned fruit industry. Trade Inform. Bui. 703:19. 1930. Bul. 547] Supply, Demand, Prices of California Peaches 53 peach production has had its greatest development. 15 The number of trees in the Union of South Africa increased from 5,446,000 in 1921-22 to 6,865,000 in 1925-26. 16 The fresh-fruit trade dominates the peach industry and exports of fresh peaches, mainly to the United Kingdom, have increased from 113,000 boxes in 1922 to 441,554 and 391,015 boxes in 1930 and 1931 respectively. These exports by countries of destination are given in table 24. Relatively little development has taken place in the canned-peach industry in the Union of South Africa. Canning, like drying, is sub- TABLE 25 Exports of Dried Peaches from Chile by Countries of Destination, 1921 to 1931 Calendar year Total Argentina Uruguay Peru Others tons tons tons tons tons 1921 722 427 273 11 11 1922 843 655 164 16 8 1923 1,029 699 288 40 2 1924 967 747 196 23 1 1925 752 514 216 14 8 1926 787 596 186 5 1927 1,156 911 225 19 1 1928 1,159 822 275 58 4 1929 1,272 845 341 83 3 1930 1,031 750 230 49 2 1931 1,003 637 314 50 2 Source of data: Compiled by U. S. Dept. Agr. Bur. Agr. Econ. Foreign Service Division, from official sources. sidiary to the fresh-fruit trade. The quality of the canned product has shown some improvement in recent years but still compares unfavorably with California canned peaches, lacking both the size and flavor of the latter. Many of the important peach districts are in the Transvaal and the northern part of the Free State. Here the rainy weather, coinciding with the ripening season, renders drying unsatisfactory. 17 The dried peaches entering into export trade are produced mainly in the south- western and to some extent in the eastern districts of the Cape Province. In these areas there is some increase in drying. The majority of the dried peaches produced is consumed in central and eastern is United States Department of Commerce, Bureau of Foreign and Domestic Commerce. Fresh fruit industry of Union of South Africa. Trade Inform. Bul. 737:14. 1930. 16 Union of South Africa. Office of Census and Statistics. Official Year Book 1928-29:430. 1930. !7 United States Department of Commerce, Bureau of Foreign and Domestic Commerce. Dried fruit industry and trade of South Africa. Trade Inform. Bul. 676:6. 1930. 54 University of California — Experiment Station Africa. Less than 40 per cent of the total production enters export trade. The dried peach is inferior to that of the United States and this, together with the greater success achieved by the apricot industry, may tend to discourage further extension of the industry. Chile. — Data concerning acreage and production of this country are scanty, but a clue to the trend of peach production can be obtained from the exports of dried peaches (table 25) . Dried-peach exports constitute about 40 per cent of the total production. 18 From 1923 to 1925 there was a decrease in exports corresponding to the decrease in peach acreage during those years of from 10,000 to 7,000 acres. Since 1925 exports have shown a fairly steady upward trend, reaching a peak of 1,272 tons in 1929. This suggests that peach production has been expanding during the past few years. Exports of dried peaches from Chile are almost entirely absorbed by Argentina, Uruguay, and Peru. These countries together take over 99 per cent of Chile's exports. ACKNOWLEDGMENTS The writer of this bulletin wishes to express his appreciation to the following organizations that have generously contributed from their data and their time : California Cooperative Crop Reporting Service ; Bureau of Agricultural Economics, United States Department of Agri- culture; Bureau ^of Foreign and Domestic Commerce, United States Department of Commerce ; California Canning Peach Growers Associa- tion ; Cling Peach Growers Control Committee ; California Fruit Ex- change ; California Peach and Fig Growers Association ; Dried Fruit Association of California; Canners League of California; and many canners and growers. The writer is particularly indebted to Mr. C. J. Poole who prepared the preliminary draft of the section on peach acre- age and production in foreign countries, and to Mr. L. A. Wheeler, of the Foreign Agricultural Service Division of the Federal Bureau of Agricultural Economics who assembled much of the data relating to the foreign situation. is United States Department of Commerce, Bureau of Foreign and Domestic Commerce. International trade in dried fruits. Trade Promotion Series No. 44:92. 1927. APPENDIX 56 University of California — Experiment Station TABLE 26 United States Production of Peaches by States, Averages 1910-1914 to 1926-1930, Annual 1920-1931 State New Hampshire... Massachusetts Rhode Island Connecticut New York New Jersey Pennsylvania Ohio Indiana Illinois Michigan Iowa Missouri Nebraska Kansas Delaware Maryland Virginia West Virginia North Carolina... South Carolina.... Georgia Florida Kentucky Tennessee Alabama Mississippi Arkansas Louisiana Oklahoma Texas Idaho Colorado New Mexico Arizona Utah Nevada Washington Oregon California United States. Average 1910-1914 1,000 bushels 20 70 20 215 1,393 702 1,164 1,322 887 1,257 1,385 276 2,628 165 1,586 500 751 735 526 4,290 158 1,232 1,680 1,806 1,212 3,034 437 1,063 2,409 93 625 75 52 278 7 409 299 10,515 47,553 Average 1915-1919 1,000 bushels 33 115 14 211 2,026 1,088 1,356 427 513 1,129 36 1,268 30 561 375 737 828 805 1,311 765 4,899 89 774 1,215 1,711 543 2,414 285 1,305 3,125 149 766 111 51 719 3 970 316 13,735 47,794 Average 1921-1925 1,000 bushels 27 169 25 243 2,179 1,856 1,226 1,041 336 610 795 57 1,014 32 267 221 405 636 478 1,183 700 6,468 124 713 1,329 1,072 473 1,697 224 1,254 1,894 160 766 102 71 660 5 877 263 15,197 46,849 Average 1926-1930 1,000 bushels 24 169 29 215 1,720 2,056 1,513 1,203 548 1,748 1,041 60 721 43 180 486 755 522 1,848 984 6,909 89 585 1,323 945 531 1,806 172 523 1,519 195 847 77 74 539 5 953 273 23,059 56,575 1920 1,000 bushels 4 3 10 2,600 2,134 2,000 3,238 405 770 1,500 100 1,427 5 187 203 692 1,092 922 1,539 832 3,799 150 1,500 974 412 117 180 42 670 6 48 471 6 155 100 15,200 45,620 1921 1,000 bushels 29 185 9 290 1,700 347 350 335 26 76 358 30 24 7 59 52 48 644 566 6,550 130 320 1,230 322 435 264 360 2,200 150 810 8 54 763 4 772 105 12,910 32,602 1922 1,000 bushels 32 200 28 262 ,400 ,000 3 2 1,560 1,584 650 1,100 1,440 200 2,300 81 630 320 495 764 715 1,010 845 4,900 130 1,218 2,002 810 375 2,040 180 2,070 1,920 244 900 98 128 885 6 950 300 17,080 55,852 1923 1,000 bushels 40 205 31 232 1,700 2,642 1,907 1,386 445 675 1,125 40 1,040 45 78 225 631 504 526 260 550 5,248 120 450 460 779 260 1,110 175 1,032 1,700 750 189 70 802 5 1 333 500 15,830 45,382 Bul. 547] Supply, Demand, Prices of California Peaches 57 TABLE 26— (Concluded) State New Hampshire. Massachusetts Rhode Island Connecticut New York New Jersey Pennsylvania Ohio Indiana Illinois Michigan Iowa Missouri Nebraska Kansas Delaware Maryland Virginia West Virginia North Carolina ... South Carolina... Georgia Florida Kentucky Tennessee Alabama Mississippi Arkansas Louisiana Oklahoma Texas Idaho Colorado New Mexico Arizona Utah Nevada Washington Oregon California United States. 1924 1,000 bushels 40 29 220 2,178 2,500 1,715 800 240 700 464 3 860 2 231 400 600 1,500 1,000 2,500 800 8,342 127 1,250 2,450 1,230 700 2,700 230 1,861 1,900 102 920 62 40 750 2 460 189 13,751 53,848 1925 1,000 bushels 34 218 30 210 740 600 1,100 320 500 592 12 870 33 371 155 240 362 100 1,500 740 7,304 115 570 1,415 1,312 712 2,200 275 950 1,750 23 450 156 65 100 8 870 222 16,418 46,562 1926 1,000 bushels 29 213 37 255 2,300 3,000 2,498 2,120 900 2,660 1,564 97 1,722 50 266 450 700 1,176 1,000 2,250 1,054 9,400 125 1,110 1,860 1,159 551 2,400 228 180 2,310 297 976 131 91 550 8 1,222 384 22,542 69, 865 t 1927 1,000 bushels 26 140 23 186 1,140 2,304 947 1,326 242 1,122 578 65 340 82 259 287 352 400 202 1,300 615 5,943 69 180 638 540 279 1,628 86 760 800 144 892 40 55 561 2 250 160 20,500 45,463f 1928 1,000 bushels 25 189 27 239 2,400 1,625 1,867 1,742 605 1,638 1,156 50 655 6 84 100 465 880 810 2,590 1,363 10,000 112 1,035 2,190 1,350 635 3,000 211 480 1,612 335 650 46 66 612 5 1,470 292 25,752 68, 369 t 1929 1,000 bushels 16 124 27 146 1,045 1,990 1,234 478 978 3,320 998 77 864 52 256 401 655 1,058 489 1,400 690 3,700 66 530 1,325 505 560 1,900 195 1,116 2,073 183 953 109 6 1,225 227 13,334 44,977 1930 1,000 bushels 23 177 31 249 ,717 ,360 1 1 1,020 350 14 908 9 24 25 35 190 260 260 110 1,700 1,200 5,500 72 70 600 1,170 630 100 142 80 800 15 763 60 90 370 6 600 300 33,169 54,199t 1931* 1,000 bushels 24 153 40 210 1,860 2,230 2,660 2,220 1,480 4,300 1,946 112 1,500 50 330 500 820 1,600 1,030 3,128 1,840 9,134 92 1,280 2,850 1,530 1,060 3,000 310 360 1,500 170 1,130 101 85 550 4 1,050 220 24,127 76, 586 t * Preliminary— subject to revision. t Includes fruit not harvested as follows: 1926: 1,462,000 bushels in Georgia and northern states; 1927: 2,708,000 bushels in California; 1928: 2,917,000 bushels in California and 1,000,000 bushels in Georgia; 1930: 10,638,000 bushels in California; 1931: 8,063,000 bushels in California and 6,520,000 bushels in other states. Sources of data: 1910-1928: U. S. Dept. Agr. Yearbooks of Agriculture (formerly Agricultural Yearbooks), except for California for the years 1912-1915 which are from: Shear, S. W. Fruit production, consumption, and utilization in the United States. (In manuscript.) 1929-1931: U. S. Dept. Agr. Bur. Agr. Econ. Fruit prospects, on July 1. July, 1932. (Mimeo.) 1931: U. S. Dept. Agr. Bur. Agr. Econ. Monthly Crop Report. September 1, 1932. (Mimeo.) Data for California 1919-1931: Compiled and published by California Cooperative Crop Reporting Service, Sacramento. 58 University of California — Experiment Station TABLE 27 United States Production" of Peaches by Uses, Averages 1910-1914 to 1926-1930, Annual 1920-1931 Year Total Unhar- veated Harvested Shipped fresh Canned in fresh equivalent Dried in fresh equivalent 1 2 3 4 5 6 Averages: 1910-1914 1,000 tons 1,141 1,147 1,124 1,358 1,095 782 1,340 1,089 1,292 1,117 1,677 1,091 1,641 1,078 1,301 1,838 1,000 tons 90 35 65 94 255 350 1,000 tons 1,141 1,147 1,124 1,268 1.095 782 1,340 1,089 1,292 1,117 1,642 1,026 1,547 1,078 1,046 1,488 1,000 tons 916 850 810 860 783 528 969 768 1,005 111 1,143 689 1,060 805 605 1,180 1,000 tons 79 126 187 281 169 138 217 178 152 251 344 242 332 188 297 187 1,000 tons 146 1915-1919 171 1921-1925 127 1926-1930 127 Annual: 1920 143 1921 116 1922 154 1923 143 1924 135 1925 89 1926 155 1927 95 1928 155 1929 85 1930 144 1931* 121 * Preliminary — subject to revision. Sources of data: Cols. 1, 2, and 3: From table 26. Bushels converted to tons on basis of 48 pounds to the bushel. Col. 4: Figures in col. 5 plus figures in col. 6 subtracted from corresponding figures in col. 3. Col. 5: Based on the quantity canned in California (table 28, col. 4) and the proportion of the total United States canned pack put up in California as reported by the U. S. Bureau of the Census. In 1909 California contributed 78 per cent of the total United States canned pack; in 1914, 86 per cent; in 1919, 89 per cent; in 1921, 98 per cent; in 1923, 97 per cent; in 1925, 97 per cent; and in 1927, 98 per cent. Percentages for other years were interpolated. Col. 6: From table 28, col. 5. According to the U. S. Bureau of Census Reports, all of the United States dried peaches are produced in California. Bul. 547] Supply, Demand, Prices of California Peaches 59 TABLE 28 California Production of Peaches ey Uses, Averages 1910-1914 to 1926-1930, Annual 1920-1931 Year Total Unhar- vested Harvested Canned in fresh equivalent Dried in fresh equivalent Shipped fresh 1 2 3 4 5 6 > Averages: 1910-1914 tons 252,400 329,600 364,800 553,400 365,000 310,000 410,000 380,000 330,000 394,000 541,000 492,000 618,000 320,000 796,000 579,000 tons tons 252,400 329,600 364,800 475,340 365,000 310,000 410,000 380,000 330,000 394,000 541,000 427,000 548,000 320,000 540,700 385,500 tons 66,000 110,600 182,200 274,720 157,000 135,000 213,000 173,000 147,000 243,000 337,000 237,500 325,800 182,400 290,900 183,200 tons 146,000 171,200 127,400 126,740 143,000 116,000 154,000 143,000 135,000 89,000 155,000 94,800 155,000 85,300 143,600 121,400 tons 40,400 1915-1919 47,800 1921-1925 55,200 1926-1930 78,060 73,880 Annual: 1920 65,000 1921 59,000 1922 43,000 1923 64,000 1924 48,000 1925 62,000 1926 49,000 1927 65,000 70,000 255,300 193,500 94,700 1928 67,200 1929 52,300 1930 106,200 1931* 80,900 * Preliminary — subject to revision. Sources of data : Cols. 1, 2, and 3: 1910-1919 from table 26. Bushels converted to tons on the basis of 48 pounds to the bushel. 1920-1931 from California Cooperative Crop Reporting Service, Sacramento. Col. 4: from table 4, col. 4, and table 32, col. 6. Col. 5: from table 4, col. 6, and table 32. col. 4. Col. 6: from table 4, col. 5, and table 32, col. 5. 60 University of California — Experiment Station TABLE 29 Canning Clingstone-Peach Production, California 1921-1931 Canned pack Canning fruit purchased, north of Tehachapi Year Total Southern California North of Tehachapi Used for canning Unhar- vested Total Trend 1 2 3 4 5 6 7 1921 .... 1,000 cases* 4,046 7,523 6,321 5,206 8,981 13,275 10,499 14,439 7,724 13,174 8,349 1,000 cases* 608 1,180 314 155 900 937 955 756 966 528 395 1,000 cases* 3,438 6,343 6,007 5,051 8,081 12,338 9,544 13,683 6,758 12,646 7,954 tons 82,000 154,000 146,000 121,000 194,000 295,000 209,000 305,000 153,600 277,100 172,900 tons tons 82,000 154,000 146,000 121,000 194,000 295,000 209,000 305,000 153,600 425,400 267,400 tons 104,000 1922 ... 124,000 1923. 146,000 1924 170,000 1925. 194,000 1926 220,000 1927 250,000 1928 290,000 1929 320,000 1930 148,300 94,500 338,000 1931 338,000 1932 307,000 * No. 2§-can basis. Sources of data : Col. 1: from table 30, col. 2. Col. 2: from Southern California Canners Association. Col. 3: from Canners League of California. Col. 4: Cases in col. 3 converted to tons. The number of cases per ton has varied between 41 and 46. Col. 5: Fruit purchased on the tree by the Cling Peach Control Committee. Col. 7: 1921-1926: trend fitted to data in col. 6. 1927-1932 calculated from data on age of trees and average yields per acre. Bul. 547] Supply, Demand, Prices of California Peaches 61 TABLE 30 Canned Pack, Dried Output, and Interstate Shipments of California Peaches, Averages 1910-1914 to 1926-1930, Annual 1920-1931 Canned pack Dried Interstate Year Total Clingstones Freestones shipments 1 2 3 4 5 Averages: 1910-1914 1915-1919 1,000 cases* 2,761 4,606 7,572 12,172 6,565 5,633 8,784 7,158 6,141 10,143 14,059 10,813 14,596 8,100 13,294 8,421 1,000 cases* 1,858 3,260 6,416 11,822 5,060 4,046 7,523 6,321 5,206 8,981 13,275 10,499 14,439 7,724 13,174 8,349 1,000 cases* 903 1,346 1,156 350 1,505 1,587 1,261 837 935 1,162 784 314 157 376 120 72 tons 26,500 31,100 23,140 23,026 26,000 21,000 28,000 26,000 24,500 16,200 28,200 17,230 28,200 15,500 26,000 20,300 tons 2,141 2,388 1921-1925 2,858 1926-1930 3,282 Annual: 1920 3,148 1921 3,453 1922 2,361 1923 3,702 1924 1,838 1925 2,937 1926 1,620 1927 4,551 1928 2,637 1929 1,861 1930 5,739 1931 1,864 * No. 2j-can basis. Sources of data: Cols. 1, 2, and 3: 1910-1917: from the California Fruit News, annual statistical numbers. 1918- 1931 : from the Canners League of California. Col. 4: 1910-1922: from the California Fruit News, annual statistical numbers, except for 1913, which is from: Shear, S. W. Fruit production, consumption, and utilization in the United States. (In manuscript.) 1923-1931: from Dried Fruit Association of California, receipts by members. Col. 5: 1910-1920: from the California Fruit News, annual statistical numbers. These figures in- clude only shipments north of the Tehachapi. Shipments south of the Tehachapi during these years were of minor importance. 1921-1924: from Kaufman, E. E., California crop report, 1928. California State Dept. of Agr. Special Pub. No. 96: 39. 1929. 1925-1931 : from U. S. Dept. Agr. Bur. of Agr. Econ. Interstate movement of California deciduous fruits. San Francisco, California. (Mimeo.) 62 University of California — Experiment Station TABLE 31 Prices of California Peaches — Canning, Canned, and Dried — All-Commodity Index of Wholesale Prices and Index of Prices of Commodities Purchased by Farmers, 1910-1931 Year Prices paid growers for No. 1 canning clingstone peaches Prices of canned clingstone peaches f.o.b. cannery Prices of dried peaches f.o.b. packing house All- commodity index of wholesale prices, av. 1910-1914 = 100 Index of prices paid by farmers for commodities beginning June 1 Dollars per ton Av. 1910- 1914 = 100 Dollars per case Av. 1910- 1914 = 100 Cents per pound Av. 1910- 1914 = 100 bought, av. 1910-1914 = 100 ; 2 3 4 5 6 7 8 1910 22 00 76 2.65 94 5.6 97 96 98 1911 44.00 152 3 15 111 9.7 167 95 101 1912 24.00 83 2 80 99 4.9 84 100 100 1913 30 00 103 2.90 103 5.1 88 101 100 1914 25.00 86 2.65 94 3.6 62 100 101 1915 12 00 41 2 45 87 3.3 57 108 106 1916 29.00 100 2 80 99 6.1 105 143 123 1917 35.00 121 3.60 127 9.4 162 181 150 1918 50 00 172 4 65 164 11 8 203 195 178 1919 88.00 303 6.40 226 20.4 352 220 205 1920 100.00 345 6.25 221 15.9 274 190 206 1921 35.00 121 4.13 146 11 4 197 136 156 1922 60.00 207 4.26 151 11.8 203 147 152 1923 30.00 103 3.68 130 7.5 129 144 153 1924 45.00 155 4.24 150 10.0 172 146 154 1925 35.00 121 3.79 134 13.8 238 150 159 1926 40 00 138 3.65 129 12 5 216 142 156 1927 22.50 78 3.16 112 9.4 162 141 154 1928 20.00 69 3.21 113 8 4 145 142 156 1929 80.00 276 4.08 144 14.5 250 138 155 1930 20 00 69 2.86 101 6.7 117 116 146 1931 14.50 50 2.59 92 6.8 119 100 126 Sources of data: Col. 1 : from California Canning Peach Growers. Col. 3: 1910-1920 based on canners' quotations as'reported in'the California Fruit News, weekly issues. 1921-1931 compiled from records of canners. Col. 5: California Fruit News, weekly issues. Average of weekly quotations on Choice Muirs, September through December. Col. 7: U. S. Dept. Labor Bur. of Labor Statistics all-commodity index of wholesale prices in the United States converted to 1910-1914 base by dividing the new series 1926 = 100 by its 1910-1914 average of 68.5. Col. 8: U. S. Dept. Agr. Bur. of Agr. Econ. The agricultural situation, monthly issues. Calendar years. Bul. 547] Supply, Demand, Prices of California Peaches 63 TABLE 32 California Production of Freestone Peaches by Uses, Averages 1910-1914 to 1926-1930, Annual 1920-1931 Year Total Unhar- vested Harvested Dried in fresh equivalent Shipped fresh Canned in fresh equivalent 1 2 3 4 5 6 Averages: 1910-1914 tons 208,000 251,200 210,400 196,600 244,000 213,000 228,000 227,000 205,000 179,000 214,000 170,000 204,000 141,000 254,000 182,000 tons tons 208,000 251,200 210,400 194,200 244,000 213,000 228,000 227,000 205,000 179,000 214,000 170,000 204,000 141,000 242,000 182,000 tons 146,000 171,200 127,400 126,740 143,000 116,000 154,000 143,000 135,000 89,000 155,000 94,800 155,000 85,300 143,600 113,300 tons 40,400 47,800 55,200 59,020 65,000 59,000 43,000 64,000 48,000 62,000 40,000 67,700 45,200 46,600 95,600 67,000 tons 21,600 1915-1919 32,200 1921-1925 27,800 1926-1930 2,400 8,440 Annual: 1920 36,000 1921 38,000 1922 31,000 1923 20,000 1924 22,000 1925 28,000 1926 19,000 1927 7,500 1928 3,800 1929 9,100 1930 12,000 2,800 1931 1,700 Sources of data: Cols. 1, 2, and 3: 1910-1925: represents total peach production as given in table 28, minus cling- stone-peach production as given in table 4. 1926-1931: from California Cooperative Crop Reporting Service, Sacramento. Col. 4: 1910-1927: from table 30, col. 4. Dried tons were converted to equivalent fresh tons on the basis of 1 to 5.5. 1928-1931 : from the California Cooperative Crop Reporting Service, Sacramento. Col. 5: Figures in col. 4 plus figures in col. 6 subtracted from corresponding figures in col. 3. Col. 6: From table 30, col. 3. The number of cases per ton has varied between 41 and 43. TABLE 33 Carlot Shipments of Peaches by States of Origin, 1921-1931 State 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 cars cars cars cars cars cars cars cars cars cars 10,330 7,370 8,701 13,504 13,513 17,963 11,882 15,926 5,298 8,623 35 1,683 390 860 579 3,010 1,975 4,637 4,637 607 1,563 724 2,785 2,300 2,529 1,780 4,010 2,679 41 594 1,452 215 1,657 2,024 2,155 1,702 3,242 1,250 2,172 2,967 6,862 2,777 3,436 3,055 2,367 1,159 1,744 865 2,310 1,223 1,428 1,254 1,772 834 1,271 1,709 1,117 1,765 1,369 217 248 53 752 605 1,806 503 2,077 1,144 256 1,117 990 1,645 412 991 1,419 248 1,741 1,554 609 31 73 16 91 239 448 644 842 598. 747 45 268 615 448 204 828 514 807 732 330 805 1,261 1,203 1,109 94 774 798 694 550 341 1,687 6,068 5,720 5,407 3,635 6,479 4,039 3,208 4,599 620 19,658 29,266 23,313 32,233 28,073 41,049 26,569 37,383 25,671 17,418 3,453 2,361 3,702 1,838 2,937 1,620 4,551 2,637 1,861 5,739 23,111 31,627 27,015 34,071 31,010 42,669 31,120 40,020 27,532 23,157 1931 Georgia Illinois Arkansas North Carolina New York Colorado Tennessee Washington South Carolina Pennsylvania Utah Others Total, all states except California California interstate.. cars 13,591 5,306 4,202 2,564 958 1,507 1,364 912 862 658 213 3,080 35,217 1,864 Sources of data: All states except California from TJ. S. Dept. Agr. Crops and Markets, monthly issues. California interstate from table 30, col. 5. 64 University of California — Experiment Station TABLE 34 Weekly Interstate Shipments of California Fresh Peaches, 1926-1931 (Week ending Saturday) 1926 1927 1928 1929 1930 1931 Week Week Week Week Week Week end- Cars end- Cars end- Cars end- Cars end- Cars end- Cars ing ing ing ing ing ing 22 29 2 5 21 28 19 26 5 18 25 24 31 16 23 1 1 5 12 14 50 4 11 2 9 1 8 8 1 7 14 1 10 6 13 20 37 19 13 18 6 16 38 15 13 21 45 20 9 26 19 25 45 23 27 22 49 28 29 27 33 July 3 10 25 48 2 9 23 7 7 14 50 298 6 13 27 22 5 12 23 63 4 11 71 199 17 213 16 20 21 795 20 37 19 149 18 531 24 628 23 54 28 631 27 114 26 919 25 388 7 65 6 1,091 4 139 3 582 2 1,911 1 98 14 34 13 1,228 11 85 10 538 9 1,006 8 38 21 41 20 898 18 71 17 135 16 525 15 40 28 42 27 336 25 70 24 31 27 21 23 30 296 196 22 29 40 47 4 63 3 144 1 69 7 7 6 172 5 124 11 53 10 85 8 115 14 8 13 222 12 111 18 24 17 120 15 135 21 51 20 114 19 47 25 13 24 91 22 29 67 15 28 80 27 41 26 19 2 9 1 1 1 8 44 15 6 13 2 1 5 12 48 16 4 11 14 2 3 10 7 2 16 15 20 19 4 18 1 17 Total 1,620 4,551 2,637 1,861 5,739 1,864 Source of data: *,,.,.,., , • U. S. Dept. Agr. Bur. of Agr. Econ. Interstate movement of California deciduous fruits, ban Francisco, California. (Mimeo.) 13m-3,'33