Citrus By-Products - Marmalade
If you are modeling the Southern California citrus industry consider adding shipments of marmalade to your outbound freight trains.
An article from the April 21, 1919, Los Angeles TIMES noted that Exchange Orange Products Company, a Sunkist affiliate, ramped up the production of marmalade by six hundred percent at plants located in Anaheim, Ontario [two other sources stated this was Pomona] and San Dimas. Production averaged two to three carloads a day.
The reasons were (1) the wartime shortages of jams, jellies and sugar plus (2) an unusually high percentage of culls from the orange crop yield. Culls normally ran two to four percent. That year the percentage was ten to fifteen percent due to cold weather. Another factor was the shortage of the English and Scottish marmalades, made with Spanish Valencia oranges, that up to then had dominated the market.
Culls normally were sold to the packing house for ten cents per hundred pounds and then sold door-to-door for ten to twenty cents per bucketful. The company’s plan was to divert as much fruit as possible from the cull market to marmalade and juice production.
Marmalade was shipped in glass jars and required only cool, not refrigerated, temperatures. Without knowing for sure I will presume that shipments were made in boxcars during the cooler months and uniced refrigerator cars during hotter months.
Below is an article from the California Fruit News, Volume 58, Issue 1583,
(November 9, 1918) containing more details about the California Fruit Growers Exchange’s plans to expand marmalade production. This is presented only for those wishing for background on how the Exchange became a major marmalade producer. There is no modeling content, however.
MARMALADE MANUFACTURE TO BE UNDERTAKEN BY ORANGE EXCHANGE ON SUBSTANTIAL SCALE
The California Fruit Growers Exchange, Los Angeles, has definitely embarked in the by-product business in a large way. It is planned to begin at once arranging the orange marmalade business on such a scale as to take most, if not in fact, all, the low-grade and cull oranges off the market as such. There is no question of the soundness of this idea, and it is set forth in detail in the Exchange's publication, The Sunkist Courier, in a recent issue. The article follows:
All Exchange shippers have been invited to become members and stockholders in a new subsidiary company which will be formed of Exchange shippers to buy all orange and grapefruit culls of Exchange growers and which will manufacture marmalade under the Sunkist label. This company will also dispose of the culls not used for marmalade, thus bringing about greater efficiency in the distribution of low-grade fruit.
The direct advantages resulting from the new undertaking are looked upon by the directors of the Exchange as of the greatest importance. They also see great indirect benefit to all growers in having large quantities of cull fruit taken off the local markets and utilized in the manufacture of a first-class food product instead of allowing poor fruit to demoralize western markets and injure the reputation of California oranges.
Thirty-eight per cent of the Exchange shipments were represented in a marmalade company which was formed some months ago. Desiring to put the disposition of culls on a mutual basis, the original organization decided to open the door to other Exchange shippers. The board of directors of the Exchange, after carefully considering the plan, has recommended to Exchange shippers that they take stock in the company. The plan is to get as many Exchange shippers as possible into the company which will dispose of all the culls of its members and develop a national marmalade business as rapidly as possible so that more and more culls can be utilized through this outlet. It is felt that all Exchange shippers should have an opportunity to share the benefits of the new plan.
Developments in perfecting an organization to dispose of orange and grapefruit culls reached a climax July 10, when, with the consent of the original stockholders, the Exchange directors decided to ask shippers to take final action.
It is estimated that the production of orange and grapefruit culls in Exchange orchards amounts to about twenty-five million pounds a year. The Exchange now handles 71 per cent of all California citrus fruit and therefore it may safely be estimated that the culls of Exchange members amount to 71 per cent of California's total. If all the Exchange culls are pooled by a separate but subsidiary organization, the benefits to shippers will be tremendous, according to students of the subject.
It is now apparent that through the new marmalade company the members of the Exchange may eventually be provided with a quick and profitable outlet for all grades of fruit not now shipped in packed boxes. Under the plan as now formulated, a large proportion of the culls will be made into marmalade. The remaining culls will be sold to the best advantage by the new organization. This means that the indiscriminate offering of culls on the southern California market will give way to a business-like distribution of this fruit. Wiser distribution of culls will prove of tremendous benefit to every citrus grower in the State. The lessening of cull offerings and a proper handling of these offerings will bring better and more stable prices for those sold. This method also will bring higher grades of fruit into more prominence, thus removing the criticism that good oranges are not readily obtainable in Los Angeles, and also giving Sunkist fruit the benefit of Sunkist magazine advertising, which reaches this part of the country.
As an indication of the outlets for culls under proper centralized sales it may be said that the orange juice stands of southern California alone use from one to two carloads a week of this unmerchantable fruit. Hotels, restaurants and other establishments use cull oranges for juice in great quantities and the byproducts company will be in a position to make juice at a central point in cities like Los Angeles and distribute it fresh daily to hotels, restaurants and soda fountains.
First steps in connecting the Exchange with the marmalade industry were taken a few months ago by shippers representing 38 per cent of Exchange grapefruit and orange shipments. After a thorough investigation of the business and future prospects of the industry, these shippers paid $105,000 to obtain a 70 per cent interest in the marmalade business of Thomas Crawford, Inc., at Anaheim, and provide adequate working capital for the expansion (of the business. The amount paid for the stock figured 2.15 cents per packed box based on the shipments for 1916-17. After hearing a complete presentation of the project, the Exchange directors on July 10 passed the following resolution:
"Resolved, That we recommend that Exchange orange and grapefruit associations generally subscribe for stock in Thomas Crawford, Inc., on the basis of 2.15 cents per packed box based on shipments of 1916-17, with a view to developing the by-products of oranges; that all oranges not marketed through the California Fruit Growers Exchange be contracted to said company for disposal to best advantage, and that said company cooperate with the Exchange By-Products Company in experimental work for the development of additional byproducts from low-grade citrus fruits; this Exchange standing ready to market its marmalade at cost under the Sunkist brand, subject to standards of quality fixed by this board."
In connection with this resolution of the directors, Assistant General Manager E. G. Dezell has advised shippers that meetings will be arranged for discussion of the plan in the different districts. Each association will act as it sees fit in regard to joining the new company.
If Exchange shippers get behind the marmalade proposition it will be permissible to use the Sunkist label on marmalade and other products, thus giving the marmalade a well-known name with immediate national prestige. A department will be established to handle the sales and advertise the new product.
Just at the present time there is a great opportunity to develop a marmalade business. Before the war practically all marmalade came from abroad, most of it being made in Scotland and England. This imported marmalade was made partly from Seville oranges grown in Spain and had a bitter flavor. It was a standard product on sale in highclass grocery stores throughout America and Canada. The war has depleted the stock and no more is being imported. The Exchange now has the opportunity of introducing California marmalade of sweet flavor. While marmalade users of the past have been accustomed to the bitter flavor of Seville oranges, the American liking for sweet products is so definitely established that there is no doubt about a ready acceptance of the sweet marmalade from California and many new marmalade users will undoubtedly be secured.
The market for California marmalade had already been established by Thomas Crawford of Anaheim, whose entire factory will be taken over by the new company. Mr. Crawford began the manufacture of marmalade under a Scotch recipe three years ago. Last year he did a business of $300,000.
Before the Exchange directors as a body became interested in the marmalade project, the San Dimas and other exchanges made a complete survey of the situation and became so convinced of its promise that a new factory building was immediately begun at San Dimas and another planned for Pomona. With three factories, including the original Crawford plant at Anaheim, Exchange shippers may have an outlet when the market can be built up, for ten million pounds of cull oranges. This amount of culls will produce about 5,000,000 pounds of marmalade which, at 20 cents a pound, will mean a business of $1,000,000.
The United States Government's favorable attitude toward the manufacture of marmalade is decidedly advantageous to the new undertaking. There is practically no Federal limitation on the use of sugar in canning or preserving fruit, and the Crawford factory has been afforded every facility for acquiring its needed allowance. Sugar is used in considerable quantities in marmalade. Tin and glass packages also are necessary, and in this connection, too, the Government has been helpful. A new glass factory in southern California now promises to relieve marmalade manufacturers from the necessity of depending upon eastern glass manufacturers. It appears certain, therefore, that glass and tin for the pack ing of the product will be provided without delay.
In his circular to shippers, Mr. Dezell pointed out that if Exchange members are to organize a new company and begin the manufacture and shipment of marmalade during the present season the organization must be perfected immediately, as arrangements for sales and advertising must be worked out months ahead of the actual distribution of the product. The plant at Anaheim has been operating at full capacity and the new factory at San Dimas will be ready for operation within a short time.
Enough associations have definitely decided to take stock in the new marmalade company to make it certain that the plan will go through for making it a mutual organization to be owned exclusively by Exchange members, says the next issue of The Sunkist Courier. According to the present plan the company will take charge of the sale of all cull oranges and grapefruit of its members, making as large a share as possible into marmalade and disposing of the balance by converting them into orange juice, candied orange peel and similar products, or selling them through other channels. The marmalade business will be steadily built up by intensive advertising and sales work. It is believed that while the company will return a good profit to growers on cull fruit, the biggest advantages will come from increased sales of good fruit in Coast markets when the poor fruit is removed.
A letter has been received from the sugar division of the Food Administration stating that under present regulations the marmalade company will be entitled to the amount of sugar it can actually use in its legitimate operations.
After a preliminary discussion on August 30 the general policies to be followed by the new organization were adopted at a meeting on September 4 of representatives of fortynine associations which were stockholders or had signified their intention of joining.
It was decided to reorganize the Crawford corporation, making it a purely mutual Exchange proposition.