SPC Members - Potential Member Information

Are you interested in becoming an SPC member? There are many benefits to membership as well as some member responsibilities. If you are wondering How It Works and Why It Works, the following Questions & Answers should answer some of your questions. If you have additional questions after reading this material call Jerry Smith in our Bellingham office at 360-733-0120 or email jsmith@spcsales.com. If you need an application packet sent to you call Judy Gehrke in our Bellingham office at 360-733-0120 or email jgehrke@spcsales.com.

17. What is a Cooperative?
    A cooperative may be defined as a nonprofit business corporation operated for the mutual benefit of its members. It is owned and controlled on a democratic basis – one member, one vote.

17. Who owns the Cooperative?
    Members own the Cooperative. The membership maintains control through a duly elected board of directors. These directors set Co-op policy and hire the President/CEO who supervises the day to day operations.

17. Who can be a member of the Cooperative?
    Any person engaged in the fishing industry as a fisherman – catching or cultivating aquatic products.

17. How much does it cost to join the Cooperative?
    The initial cost of joining the Co-op is $500. This includes a $10 Stock Certificate, a $100 Membership Fee and $390 in Capital Investment, all of which is refundable.

17. How are members paid for their fish?
    SPC advances 70% of the Co-op dock or grounds price on delivery. A second payment is made in January except in the case of sablefish or halibut. These products will receive their second payment when the product from the pool is sold, however no later than January 31. Final settlements on all products are made in March.

17. How do I pay my share of the Cooperatives financial obligations?
    The Co-op retains a share of each member’s earnings to meet financial obligations. Retains are called Capital Investment.

17. What is Capital Investment?
    Capital Investment is money retained for operations of the Cooperative. Retains are withheld from members gross settlements at the rate of 10% with an annual minimum of $1,000 and a maximum of $2,000. The current limit is $15,000. When a member reaches this limit, no further assessments are made. These retains are returned to members upon retirement or resignation. Capital Investment keeps bank borrowing at a minimum, which lowers overall costs.

17. How am I assessed for plant operating expenses?
    Fish delivered to the Co-op are put into a common product pool. Actual operating expenses are then deducted from the sales proceeds of each pool.

17. What is a pool?
    Pools are operating expense categories. Operating costs vary by product type, with some higher or lower than others. By pooling common products, only the actual costs for handling those products within each pool are charged. Pools are established each year by the Cooperative.

17. Can I resign or retire from the Cooperative and cash out my ownership equity?
    Yes. If you resign, equities can be redeemed at approximately the same rate they were acquired. Capital Investment is redeemed in equal amounts over seven years. If you retire from fishing and are 62 or older, equities are redeemed in three years.

17. Do members have any liability in the event of a Co-op failure?
    As a Cooperative, members are only liable for an amount equal to the total number of ownership equities.

17. What other services does the Cooperative provide its members?
    SPC members are eligible for low cost hull and machinery coverage on their vessels through a self insurance pool (Pacific Trollers Fund). The Co-op also provides cost savings on fishing gear (see Gear Account above) and a savings account program paying very competitive interest rates (see Loan Account above).

17. How can I join the Cooperative?
    Eligible fishermen can join SPC by contacting the Bellingham office, the Sitka plant or any authorized SPC packer. 

17. What are the delivery requirements for members of the Cooperative?
    Each member is required to deliver at least 5,000 pounds of pooled product each year, or pay a minimum delivery fee of $500 as well as the $1,000 minimum Capital Investment.