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Harvesting Cranberries In England, United Kingdom
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With surplus cranberries and changing American households some enterprising growers began canning cranberries that were below-grade for fresh market. Competition between canners was fierce because profits were thin. The Ocean Spray cooperative was established in 1930 through a merger of three primary processing companies: Ocean Spray Preserving company, Makepeace Preserving Co, and Cranberry Products Co. The new company was called Cranberry Canners, Inc. and used the Ocean Spray label on their products. Since the new company represented over 90% of the market, it would have been illegal (cf. antitrust) had attorney John Quarles not found an exemption for agricultural cooperatives. As of 2006, about 65% of the North American industry belongs to the Ocean Spray cooperative. (The percentage may be slightly higher in Canada than in the U.S.)
A turning point for the industry occurred on November 9, 1959, when the secretary of the United States Department of Health, Education, and Welfare Arthur S. Flemming announced that some of the 1959 crop was tainted with traces of the herbicide aminotriazole. The market for cranberries collapsed and growers lost millions of dollars. However, the scare taught the industry that they could not be completely dependent on the holiday market for their products: they had to find year-round markets for their fruit. They also had to be exceedingly careful about their use of pesticides.
After the aminotriazole scare, Ocean Spray reorganized and spent substantial sums on product development. New products such as cranberry apple juice blends were introduced, followed by other juice blends.
A Federal Marketing Order that is authorized to synchronize supply and demand was approved in 1962. The order has been renewed and modified slightly in subsequent years, but it has allowed for more stable marketing. The market order has been invoked during six crop years: 1962 (12%), 1963 (5%), 1970 (10%), 1971 (12%), 2000 (15%), and 2001 (35%). Even though supply still slightly exceeds demand, there is little will to invoke the Federal Marketing Order out of the realization that any pullback in supply by U.S. growers would easily be filled by Canadian production.
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