A recent development is the formation, on the west coast, 

 of a cooperative type of sales organization, the stockholder members 

 of which are frozen-shrimp processors hailing from points located all 

 along the west coast. All processors pack under the same brand names, 

 and the product is sold to one brokerage firm in the United States. Id/ 

 The production of this group is estimated at about UO percent of the 

 total west-coast pack. 



The producers, on presentation of a bill of lading, are 

 advanced 70 percent of the going market price and the balance is settled 

 on the sale of the product. As each shipment crosses the United States 

 border it is given a serial number, and sales are liquidated in rotation 

 in accordance with this number. 



Sales are liquidated at 93 percent of selling price, the 

 brokerage company charging 7 percent for its services, including insur- 

 ance on the product while in transit. The Mexican company charges 1/2 

 of one percent of sales price for its services, so total charges to 

 associates are 7-1/2 percent of sales price. 



Financing is done through a United States and a Mexican bank. 

 The United States bank furnishes the funds and the Mexican bank guarantees 

 the loans. For these services the United States bank charges U-l/2 per- 

 cent interest and the Mexican bank 1 percent. 



On both coasts some producers sell directly to local buyers j 

 this business represents only a small part of the production, although 

 it is probably of greater significance on the east coast than on the 

 west. 



in/ This brokerage company also keeps a representative in Mexico who 

 assists the producers in maintaining a uniform pack. 



llh 



