The Changing Role of the Fruit Auctions

Excerpts from the report: Fruit auctions grew up with the modern produce marketing system. In the 1920's and 1930's they served as the economic center of the fruit marketing system in the terminal markets. In 1930, the auctions sold over three-fourths of the citrus and western deciduous fruits received in the cities with auctions, these cities being the major markets of the Northeast and Midwest. The auctions provided a focus for the forces of supply and demand, established prices, and distributed fruit in the major markets and to most of the secondary markets nearby. Changes in the pattern of fruit marketing beginning in the late thirties and accentuating since World War II have altered the role and importance of the fruit auctions. Sharp increases have occurred in direct buying by retailer groups—both corporate and voluntary chains—and, to some extent, by service wholesalers and other types of wholesale handlers. The number of retailer groups large enough to take advantage of direct buying has grown until they now handle a major portion of the retail food business. More and more, the fruit auctions are becoming distributors of higher-priced specialty products rather than mass distributors of more standardized fruit.