The cisGOciation, a cooperativu of shrimp boat-oiming fisher- 

 moii, handles tlie produce of its mombors throu<;h plants located in Morgan 

 City, Louisiana and Port Isabel, Texas. Slu'iirp handltd in Morcan City 

 are froaun in conmercial fretjiiers but those handled through the Port 

 Isabel facility are frozen and stored in the association's own plant, 

 which also freezes and stores shrimp for non-members. The association 

 also carries a stock of nets and boat supplies for sale to members in 

 both Morgan City and Port Isabel. From the Mort^an City headquarters, 

 where the co-op ovms large installations at the dock, the shrimp 

 are distributed in wholesale quantities thi'oughout the country \anuer 

 the association's ovm brand names. The shrimp are landed at the dock 

 of the co-op in the Atchafalaya River and trcxnsported by conveyor belt 

 to the plant. After grading and packing, the shrimp are transported 

 to the public freezer plant, a distance of about one and one-half blocks, 

 in tinicks ovmed by the co-op. Here they are frozen and stored for mar- 

 ket. Shipment to the northern markets is made by "exempt" motor carriers. 



Shrimp sales are made by the association and in the association's 

 name. However, the association allocates directly to the member any rev- 

 enue from the sale. Cash settlement after deduction of a handling fee 

 is made after receipt of the money from the buyer. Members are tied to 

 the association by an exclusive selling agreement, and are requested to 

 make a $100 advance for each boat load of shi'imp handled over a specified 

 minimum poundage. Net earnings (the excess of fees collected over costs) 

 are distributable to the members on the basis of shrimp produced hy them. 

 So far the distribution has been made in the form of non-interest-bearing 

 patronage notes due ten years from the date of issuance. Because of 

 the fact that members are charged fixsd fees for the processing and sel- 

 ling of their catch, the financial position of the co-op itseljf is not 

 dependent on market fluctuations. During the year 19i)h vjhen slu-imp 

 prices vrere low, the association was in excellent financial oondibion. 

 It had adequate \;iorking capital supplied by the advances for the handling 

 of shrimp collected from its members and a high cash balance. 



In general, the members of the association seem to be satis- 

 fied with the arrangements, and there has been little turnover of la^mber- 

 ship in tlie past years. Since members have considerable funds tied up 

 in the patronage notes (on the average over |'.1,000), they are not very 

 anxious to leave the cooperative. Some boat ovmers are reluctant to 

 join the cooperative because of the time lapse involved between the 

 sale and the receipt of the proceeds. The financially stronger boat 

 owners are batter suited for membership th^in those liho operate on a 

 hand-to-mouth basis. 



The cooperative employs 9 pennanent workers in Morran City. 

 The operation of the Marine Hardufire Supply Di\d.sion is conducted 

 separately. Members are charged cost plus 8 percent for their purchases. 



The distribution of the co-op's pack, put up in the 

 institutional 5-pound form, is under 2 brand names. 



110 



