A TIMELY LETTER.

The following letter was sent by our manager to sections of Arizona adjoining us, where some organization work has been done by the Exchange. We hear that it created quite some interest both among producers and buyers:

July 30, 1920.

To Our Fellow Arizona Beekeepers: We have reason to believe that there will be buyers in your territory shortly offering low prices for honey. We also have heard that honey dealers for whom these buyers are working have sold honey for future delivery, anticipating being able to buy your honey at several cents below market value.

We are offering and selling freely light amber alfalfa honey at $21.00 and white mesquite at $22.40 per case, and believe that these prices should guide you in selling.

Honey is the purest and most healthful of all sweets and we firmly believe beekeepers are reasonable in asking from 17 cents to 20 cents per pound for their honey when sugar and other sweets are bringing a higher price and the fact that we have sold forty-five cars of honey in the past thirty days to the consuming trade justifies us in believing this.

We are endeavoring to obtain for our beekeepers in California the full value for their products and we should not like to have our fellow beekeepers in Arizona receive a low price for their honey on account of not being in close touch with the market.

Our object in writing this letter is to advise you as to the actual market value of honey at this time and to offset any rumors that you may hear as to there being no market for honey and that prices are continually declining.

Assuring you that we hore that the time will come shortly when we all can work more closely together, we are Very truly yours,

CALIFORNIA HONEY PRODUCERS
COOPERATIVE EXCHANGE.
C. E. Millspaugh, Gen. Mgr.

HOW WE LOSE.

There is in Los Angeles a co-operative marketing concern known as the Challenge Cream and Butter Company. It handles the product of the Danish Creamery of Fresno, the Riverdale Creamery of Riverdale, and the Dairymen's Co-operative Creamery of Tulare. During 1919 this co-operative marketing agency sold the output of these

creameries at a marketing cost of 3 per cent. They did more than that. They helped exert a stabilizing influence on the Los Angeles market that held it, on an average for the year, 2.48 cents higher than the San Francisco market. Dairymen fortunate enough to be able to sell thus cooperatively saved 3 per cent over the members of another producers' association, selling in San Francisco through a private concern, and their butter brought almost 22c a pound more. All this in the same state.

This same Challenge Company sold in March of this year at a cost of 1.68 cents a pound; in April and May at a cost of 1.82 cents a pound.

The average price of butter in San Francisco was: March, 61.52c a pound; April, 59c; May, 55.81c. At 6 per cent then the marketing cost was 3.69c a pound for March, 3.54c for April, 3.34c for May. See how pretty this looks tabulated:

ex

We dairymen are a funny lot. Why will we produce and manufacture cooperatively and then sell through middlemen at a cost of 6 per cent, while almost under our noses a co-operative selling concern is setting us an ample by rendering the same service for 3 per cent? Are we making so much money in the dairy business that we can cheerfully donate to the cause of private enterprise in the butter market? Why not get together, do our own selling, and donate that 3 per cent to our own families for awhile?-Pacific Rural Press.

The California Walnut Growers' Association has changed its selling plan, which used to guarantee that the price would not decline for eleven months after prices were named. The new plan provides for a price guarantee only until arrival of goods in buyer's mar ket, leaving the sales department of the association free to follow market fluctuations without facing the bugbear of possible refund. Through its "Field Department" the Walnut Association has lately added very largely to its membership..

Since assuming the management of the Exchange some four weeks ago, many inquiries have come in from the members (and justly so) asking the following questions:

"When will the pools on last year's honey be closed and final remittance made?"

"What is the reason for the delay?" Answer: Only yesterday did this office reach the position wherein they could give any definite information. We are now pleased to state that final checks will go out on or before August 15th.

This office found quite a number of shipments of honey unpaid for which necessarily had to be collected before the pools could be closed. This has just now been accomplished.

The system of accounting last year, which has now been improved and simplified, was also cause for many delays which will not be experienced this year. Some of you may ask, "Why wait until August 15th?" Our answer is, that it will naturally take some time to complete accounting, drawing checks, etc., and at the same time keep up our current work.

Explanation: You will understand that while this will be the final remittance from the state Exchange on last season's business, in most of the locals there will be a surplus left from the five per cent retained for the Exchange charge (local expenses). Many locals find it advisable to retain this fund as a working capital. This is, however, purely a local matter for your local board of directors to determine.

Very truly yours, CALIFORNIA HONEY PRODUCERS COOPERATIVE EXCHANGE,

C. E. Millspaugh, Gen. Mgr.

August 4, 1920.

To All Members of the Los Angeles Honey Producers Exchange:

The following is a copy of a letter received by your secretary-manager from the general manager of the California Honey Producers Cooperative Exchange:

"At a meeting of the executive committee on the 6th inst. this office was instructed to notify all of the local boards of directors to insist on delivery of all honey produced by their members as soon as possible when ready for delivery.

"We trust that you will give this matter your usual prompt attention and as was indicated at the meeting above mentioned, it is very esential that this honey be in warehouse as soon after production as possible, so that this o....ce will know just what honey is available for sale. Furthermore, the forward situation as to what the market will be is more or less uncertain, therefore it seems an added vital reason that we should be in position to take on any possible business.''

You can readily understand the absolute necessity for assembling as quickly as possible in order to know what we have for sale and that pools may be closed with greater dispatch this year

will, we believe, use up our entire crop of this variety remaining unsold. We therefore are particularly anxious to have every pound of this variety turned into the warehouses or reported to this office in the next few days.

The unsettled condition that seems to exist generally throughout the country influences us to feel that it is of vital interest to every member of this Exchange that they put their honey in warhouse, so that we will be in a position to sell the honey when the opportunity presents itself.

This letter refers to honey on which the producing season has closed. CALIFORNIA HONEY PRODUCERS

COOPERATIVE EXCHANGE,

C. E. Millspaugh, Gen. Mgr.

When our prices were submitted to the trade, it was done without any formality or "blare of trumpets, and the results obtained prove that it was not unwise to operate in that manner at this time, for it accomplished beneficial results to the Exchange in various ways. It did this:

were

Afforded the opportunity of selling our friends in the trade, that waiting for our prices, their season's requirements.

Discouraged buying before our prices were made, thus showing the wisdom of confining their buying to this Exchange.

Discouraged the operators from attempting to buy early from our members and non-members, expecting to get under our "umbrella," and thereby reap a profit.

Criticism has been made that our prices as named had a tendency to break the market. The selling of a few early cars of early honey for early delivery at a premium price certainly does not establish the season's market any more than the selling of a few boxes of early cherries that find an early market at $20.00 to $30.00 per box.

For years

the first new crop orange honey on this market did invariably bring a premium

of about two cents per pound, but no one ever thought it "made the market."

Even in face of many attempts that have been made by others to break the market, it has not been necessary to sell any honey below our opening prices. We have within the past few days confirmed some nice business at 172 cents per pound for light amber Alfalfa and 20 cents and 21 cents for white and water white sage.

When arriving at reasonable and equitable prices many thing had to be considered, some of which were:

National crop prospects; state crop prospects; financial situation; sugar conditions; jobbers' buying attitude; consumers buying attitude; stabilization of markets; and equitable and even distribution.

PACKAGE HONEY.

The future of honey packed in small containers looks very bright indeed, and great hopes are entertained that as our brands become more established, the greater part of our crop can be marketed in that manner. It will put us in a much more independent and permanent position, wherein honey will not be so susceptible to market fluctuations and conditions.

Some very satisfactory business is being received from many sections, even from some localities where it was not felt that there was any demand for honey at all.

ADVERTISING.

It is the judgment and desire of the management that some specialty work and judicious, limited, window display advertising be done, in order to fix and establish our brands in the minds of the trade and consumer. Then later on, but not this year (and maybe not the succeeding year), more extensive advertising, but not until wider distribution in the larger markets has been attained.

In talking with one of the our large producer members recently this member declared himself as not looking with favor upon an expenditure for advertising, and in this connection we wish to say that it is hoped some time our membership may be asked for an expression as to how they feel upon this particular question. Many of our members have expressed the hope that we could some day advertise. A few have not approved. The history of many Exchanges shows that a great measure of their success is attributed to advertising.

The Exchange was organized to obtain for the beekeeper a just return for his honey, for he was hardly real

izing the cost of production. The movement of the crop dragged along slowly each year, one season's crop overlapping into the following year, thus causing a weak, indifferent market, allow ing operators to take advantage of the situation, thereby reaping thousands of dollars in profits that should rightfully and justly go to the producer with proper and efficient distribution and the creation of an active demand.

Advertising will place honey where it belongs; where it will not be considered a luxury, where it will not be competitive with sugar and sugar syrups, where it will be known as "nature's own sweet, ," wholly nutritious, healthy and wholesome, containing real food value.

FINANCE.

As has been reported, we were able to effect with our bank satisfactory arrangements whereby we could advance to our members 60 per cent of the market value of the honey at the time of the advance, instead of upon an assumed valuation basis, thus increasing the amount advanced to help offset the increased expense that the beekeeper has to outlay to produce his crop. This advance was increased upon definite assurance to the bank that it would be our policy to market the crop as rapidly as it was consistent with good business to do.

Our bank has been meeting our requirements in an excellent and courteous manner, and with the season's crop now coming to distributing points so rapidly the advances naturally at this time assume quite substantial proportions.

LOCAL EXCHANGES.

It is the desire of this office to work in fullest accord with the local Exchanges, keeping them advised of matters of importance and doing everything that we can to maintain complete confidence and harmony. Any sugges tions, recommendations or desires from them will be given prompt cosideration and attention.

On July 19th at a meeting of the Los Angeles local their board voted to have this office handle its affairs, they appointing Mr. F. H. Shepherd as secretary in place of W. E. Keller resigned, After an experimental period of operation the amount of remuneration to the state office, for this service, will be determined.

On June 25th we received from the San Diego local a request that they be permitted to handle their own local affairs, books, etc., and your manager is heartily in accord with this, and hopes that the request may be granted

Criticism has been made that the comparative statement of expense shows an increase over the same period last year. Wt wish to point out that this increase occurred prior to the present management; however, it would not be unreasonable to expect an increase, because the volume of business handled this year is greater. Also our package honey business requires more detail work. When the 1919 business and the expense incidental thereto has been concluded, this office will then be in a position to intelligently submit a budget covering the approximate expense for the 1920 business.

CANS AND CASES.

It seems an opportune time to give some consideration to contracts for cans and cases for next season, so that we may be in a secure and satisfactory position to supply our members with them, of such quality and at such prices as will prove attractive and meet with their approval.

It also might be a good time to give some thought as to the most satisfactory and efficient manner in which to distribute cans and cases through the various locals next season, so that all details can be completed when the time comes. We find that different locals have different conditions to meet and we want every local to handle this and all problems in a manner satisfactory to themselves.

FIELD WORK.

Some of our observant members have voluntarily sent in recommendations regarding field work that should be done amongst our members and non-members and we would like to have you give this some thought for, perhaps, some definite action at a later date.

We quote from a leter received about June 1st:

"What the Exchange needs most now is not only to sell the honey right, but to have the personnel informed of the fact, and made to raelize that they have been well done by, and also the propaganda from the outside counteracted. What is badly needed is some

internal propaganda among the members, instead of allowing them to drift along without any clear idea of what the actual conditions are that the organization is having to meet. This thing of allowing them to drift along in the dark gives too much opportunity to imagine things and later to actually believe them, especially if some outside sinster influence has an opportunity to throw in a few judicious hints or suggestions as to how much better things are being conducted outside the Exchange.

"This work should be carried on by the board of directors, as it is too much to ask the manager to handle the marketing and keep the political fences in repair at the same time. It also leaves the manager open to criticism along the line of doing politics.

No doubt a great deal of good could be accomplished for the industry in the state if correct information was disseminated intelligently by some one who enjoys the confidence of the beekeepers in that he has their best interests at heart.

STATE MARKET DIRECTOR.

On June 19th this office was favored with a call from the state market director, Mr. Gilbert B. Daniels, and his able secretary, Mr. F. E. Bigelow, they expressing their willingness and holding their office in readiness to cooperate and assist in every manner possible to ward building up a strong and permanent organization for the marketing of our product. Frequently we have occasion to ask for their excellent counsel and it is always immediately given in a most whole-hearted manner, for which this office is deeply grateful. The beekeepers throughout the state should feel most fortunate that our Exchange and all its affairs, financial and otherwise, come under the supervision of men of the type of Mr. Daniels and Mr. Bige low.

66

In closing your manager wishes to reply to a question that came up at a recent meeting wherin it was asked, 'Why did we select a manager from the enemy' "' This was ably answer ed by Mr. Guntermann, Mr. Bigelow and Judge Morrison; your manager also defined his position:

It was pointed out that when the Associated Raisin Growers, Prune and Apricot growers, Peach growers, Poultry producers, Apple growers, Berry growers, etc., cast about for a manager they selected one from the ranks of the dealers or operators that dealt in their particular commodity, for they felt they should secure someone who "knew the game," and how to "oper

By the time this is printed, the last of the 1919 pools on honey and wax will be closed and checks in settlement received by the members. As there were nearly thirty pools, all told, it will naturally take some time to have all details completed.-Editor.

California honey-crop conditions are waning with the season. Buckwheat is a failure in some sections, as is blue-curl almost the state over. Starthistle and lima bean are also much shortened by the extreme hot weather. As a whole, Southern California has had above an average crop, while the north has fallen seriously short. As to sales, demand has slackened somewhat, as was to be expected, but is better than anticipated, while prices are being steadily maintained.