A joint sales agency could be established with a minimum of expense 

 through rental of office space and most of its equipment. 



The initial organizational costs and other expenses could be covered 

 through a small assessment to member firms based on the volume of 

 produce they handled in a recent yearo This advance should then be 

 set up on a revolving fund basis and returned to members in pro- 

 portion to their contribution. 



The appendix on pages 40 through 65 presents articles of incorporation, 

 bylaws, marketing agreement and membership agreement examples that 

 illustrate in detail the legal and contractual arrangements that could 

 be considered and possibly adopted in establishing a cooperative joint 

 sales produce agency. 



The cooperative sales agency would set the price, make the sale and 

 handle the attendant paperwork for its members. Sales could be 

 either pooled or made on an individual lot basis. If handled on an 

 individual basis, each individual could be credited with his own 

 receipts and sales costs prorated on a unit basis. 



By maintaining their identity and operating autonomy in all activities 

 except marketing, the members, whether grower controlled firms, cooper- 

 atives, or individual farmers, would still be responsible for packing, 

 grading, and storing produce. 



Once established the cooperative sales agency could meet operating 

 and sales costs from a deduction of a few cents per carton on all 

 produce handled. 



The emphasis for the sales organization should be on competent sales 

 management and sales personnel hired at a competitive price. 



The sales agency could be assured of adequate volume and variety of 

 produce through a binding market contract. A key point of the contract 

 should be effective requirements for quality standards and quality 

 control. Acceptance by members of both the letter and spirit of 

 such a legally binding arrangement would indicate a strong commitment 

 to help assure success of a joint sales program. 



To help assure success in a sales operation involving fresh fruits and 

 vegetables, the sales representatives would require the latest market 

 information as well as fast communication to prospective buyers. In 

 addition to telephone circuits, the agency should be equipped with a 

 market news service wire and a private wire for personal contracts. 

 Another possibility would be emergency radio service direct to producers' 

 fields . 



14 



