Naturally, if the prices offered are too low, the independent boat 

 owners seek other outlets for their catches. 



Sales Terms and Agreements 



The need for working capital is paramount to the fisherman. 

 For this reason, sales from an independently owned boat are usually made 

 on a cash basis. Raw shrimp plants must pay cash to maintain the 

 patronage of boats. 



Few sellers maintain contractual agreements with buyers. In 

 those cases where a boat is tied, by reason of fleet affiliation, to a 

 particular dealer or cooperative, it sells exclusively to that organi- 

 zation when docking in the home port. Otherwise, boats are free to 

 sell their catches to the buyer of their own choice. Since prices paid 

 to the fisherman in any one port usually are uniform throughout the port, 

 the choice is based upon services offered by the buyer rather than upon 

 price. 



Selling arrangements beyond the level of the boat are also 

 characterized by a lack of contractual agreements. Primary wholesalers 

 prefer to sell on the open market to the highest bidder rather than tie 

 themselves to an individual buyer. A few primary wholesalers do sell 

 solely to one buyer, feeling that in times of market glut the buyer will 

 purchase their shrimp before going to a competitor. Even under these 

 circ\mist£uices no written contract exists. Since supply, in recent years, 

 has frequently lagged behind demand, there is little reason for a primary 

 hamdling or processing firm to tie itself to a single buyer. 



Sales from the raw shrimp plant to a processor located some 

 miles from the docks may be based on either box or pack -out weight. If 

 sold box weight, the shrimp are rough graded at the dock, i.e., four or 

 five counts axe made per box and the average of these is considered to 

 represent the count of the entire box. Boxes are usually packed 

 102 to 106 pounds, the excess being an allowance for water and waste. 

 The seller is paid according to "estimated" weight, which means that 

 he does not guarantee true weight. If the shrimp are sold pack-out 

 weight, they are sent ungraded to the freezer. There a complete and 

 accxirate grading takes place and the fishermen are paid on true weight. 



If the shrimp are sold pack-out weight, the seller assumes 

 transportation costs to the freezer, usually at the rate of one cent 

 per pound. If the shrimp are purchased on a box weight basis, the 

 buyer usually bears these transportation costs. 



