2, Paperboard Carton Fabrication 
36 
a, Fabrication of paperboard cartons 
by cooperative fruit and vegetable 
processors should be limited to sim- 
ple carton forming and printing, 
b, Fabrication should be limited to types 
of standard containers, ¢.g., can 
cases, used in greatest volume. 
c. Number of cartons _ fabricated 
should be below normal annual mem- 
ber requirements to permit operation 
of the carton plant at full capacity. 
d. Precut, scored paperboard carton 
blanks should be purchased from 
major paperboard manufacturers on 
an annual, negotiated-price basis. 
e. Only operating inventories of com- 
pleted cartons should be maintained. 
Member processors should be en- 
couraged to make off-season pur- 
chases and to provide warehousing 
in existing processing plant build- 
ings. 
f. Membership patronage should be as- 
sured through self-renewing purchas- 
ing contracts. 
Purchasing 
A cooperative purchasing association 
should undertake only simple brokerage 
Operations, 
Contracts should be negotiated for vol- 
ume or brokerage discounts on the most 
favorable terms consistent with con- 
tainer quality and service required. 
Specific container standards and specifi- 
cations, including delivery and credit 
terms, should be developed for use in 
contract negotiations, 
The cooperative should endeavor to serv= 
ice member needs for all major types of 
containers required. Cooperative pur- 
chase of other processing and plant sup-= 
plies can be offered as the need and 
opportunities dictate. 
The cooperative should perform all 
necessary functions of price negotia- 
tions, ordering for members, and col- 
lection from members, but it should not 
purchase items for its own account, 
maintain inventories of containers or 
other supplies, or assume responsibility 
for accounts of its members. 
All shipments from suppliers to proces- 
sors should be ''drop shipments'' made 
directly from the manufacturer to the 
processor. 
Bills from the cooperative to its mem- 
bers should be discounted for prompt 
payment, but all brokerage fees or other 
discounts below usual industry list prices 
should be retained as operating revenue. 
Then net revenue above operating costs 
should be refunded to members as annual 
patronage refunds. 
The supply cooperative need not main- 
tain a sales force, but the manager or 
fieldmen, as required, should visit mem- 
ber processors to assist them with their 
supply-procurement problems, 
