building co-op involvement
Katlian
2010-01-31 17:42:35
I propose that SPC
A system of mentorship could actively bring members into the spc process. I suggest that the co-op setup a mentorship program open to members who have not been in the co-op for more than ten years. Attach the interns to a current board member, educate them about the process and assign them task to get more involvement from additional members.
All it would take is a few airmile tickets, a place to stay and the desire to have more members involved.
slr
codfoot
2010-01-31 22:41:04
Katlian,
Your concerns are right on. I would heartily encourage you or any other members who are interested in understanding how their Coop works to contact Bd members and ask all the hard questions you wish. The next step is to run for the Bd. There is no better way to understand the complex innerworkings of running a cold storage business than to participate in making the decisions. Your input is very important to making your business better respond to your needs.
I would be the first to recognize that we could use input from younger members on our Board. The average age on our Bd reflects the average age of our Co op membership (50+ years). In the next decade our industry will experience an abrupt turnover as aging boomers step aside for the next generation to assume leadership roles.
One of the frustrating aspects of the Co op system is that the wheels of change tend to turn too slow to suit most members concerns. Conversely, one of the great strengths of the Co op system is that the wheels do turn slowly and changes in policy and management are given more time for discussion and consideration than they sometimes deserve. This is one of the reasons why the Co op has survived the wild fluctuations in our industry for over 65 years. In the Sitka area, we have seen the rugged economy leave a wake of failed and struggling fish processing businesses. Baranof is gone, Pelican is gone, two others are seriously struggling to stay in business. The past season has been difficult for all, but the Co op has managed to stay very sound financially and ready to take advantage of opportunities in the new economy. How has the Co op managed to stay financially healthy? First, the members have faith in their business as evidenced by their consistent deliveries of quality seafood products. Second, member willingness to stay informed and provide input keeps us strong and responsive.
Anybody who wants to discuss anything related to the Co op please don't hesitate to contact me or any other Board members. I'm always ready to talk Co op over a cup of coffee.
Charlie Wilber F/V Alexa K 747-5819
alias- Codfoot
BigBug
2010-02-01 00:13:47
codfoot,
As a soon to be noobie troller I am interested in understanding what the SPC does for me by being a member. Unfortunately, you are a bit far from me to sit down over a cup of tar but I would be glad to pour one right here on the board... I am sure there are others out there that are just afraid to ask.. no one wants to look the fool.
So here are my questions:
- Why should I join the SPC?
- Will I make more or less, on average, for my fish by being a member?
- I would really like to understand how it works. I have read the website but I am a bit fuzzy on some of it...
- What if I don't want a gear account or loan account? and how are these beneficial to me?
- What is it going to cost me?
- Please explain Production and Financial Responsibilities?
- When and How am I going to be paid?
That should get the wheels turning anyhow.
Thank you.
Ted
Carol W
2010-02-01 02:58:06
Right on Charlie you spoke well as always.
Tom
Carol W
2010-02-01 03:23:59
The other thing that should be mentioned is there are seats on various boards and panels that we all can use some new faces on, anyone who is willing to throw their name into any board is a good thing.
The coop board is always are open to letters from the membership and when we have a meeting we always make time for anybody that wants to be heard. I think that the fact that Charlie, myself and at least one other board member monitor this board tells people the Coop board is willing to listen and discuss coop business. While the coop is not always perfect in every way if the troll fishery in SE AK didn't have the coop I am not sure we would have a market.
As to internship the real way to get someones foot wet is to throw your name in the hat when election time comes up, and if you don't get elected don't give up.
As many of you are aware I have sat on the SSRAA board for over 20 years and for the last three terms nobody has thrown their name in the hat to run against me. Now I know you all think I am doing a great job and maybe sitting on the SSRAA board is not seen as an exciting seat however the amount of economic benefit our fleet derives from SSRAA is in the tune of millions of dollars a year.
On NSRAA, SSRAA, ATA, UFA, Coop Board, all fish and game advisory committee's and all chambers of commerce we need new young faces. And yes we should all join our local chambers of commerce we as an industry need to remind other businesses that the troll fleet is comprised of local small businesses that help the local economics. These are not elite clubs and new participants are welcome.
Keep your hand on it
Tom
Katlian
2010-02-01 05:13:29
I think that both Charlie and Tom are excellent at communication. And while there are opportunities for people to become involved in the co-op process, there clearly are barriers or lack of interest. I think that if the board and management came up with proactive, new programs, perhaps new faces will show up.
It was really disheartening to see in the co-op newsletter a call to elect incumbents. It appeared to have the co-op as an organization throwing their hat in the ring of other regional elections without encouraging members to weigh the merits of the individuals running. Did anyone else notice that little bit in the last cooperator letter.
slr
Salty
2010-02-01 14:34:12
The theme of my presentation at the Young Fisherman's Summit this year was. "You act now." It wasn't you think about it, talk about it, stew about it, etc. I used the analogy of the conference filling the participants hold with fish and the way we, the organizers, the funders, the presenters, got paid was when the participants unloaded by acting. At least one other young person on this site came to at least one Fish & Game Advisory Committee meeting and advised us he planned to be more involved.
If you are a young person, or young at heart, ( I am only 60 and am running for the NSRAA Board as I write) figure out where you want to spend your energy contributing and go for it. I know Katlian has put his name up for at least one position in the recent past. Our Chum Trollers Association has several young people and some others who have not been involved for a long time.
Go for it.
I am going fishing now.
ashadu
2010-02-02 18:16:17
Mentorship has the benifit of intoduction to the problems, personalities and process without the pressure of commitment and the mistakes of inexperience. also the more exposed each member is to the board process the more constuctive the critism can be. small workshop type meetings with more than one boardmember moderating (port by port) could begin a mentoring and leadership program. The port meeting with management is not the place for many of these discussions. Most damaging to the fleet and members is disinformation about what the coop should be doing that is not in thier present mission statement. The preformance of the coop within the guidelines of what they are supposed to do is excellent. the personnel is top notch. measure how many bankruptcies and plant and buying stations closed over the last 10 years and thats how you can rate the co-op preformance. But we need to race ahead in marketing and packaging to stay ahead as fishermen and a business. Can we have a franchise packaging and marketing program for members? Can we increase our portion business fast enough to compete with others, i.e. gilnetters, seiners? And my personal favorite, can we package our frozen portions in a colorful package that JUMPS out of that freezer case into the shopping cart. Remember as you walk down the isle in the suppermarket, you are reaching for a brand that has already been imprinted on your brain. the package is as important as the product. and give up on that fresh fish case, the coop already has the only markets that care about what we offer. Go for the frozen case, thats the future. respectfully submitted
jonah
2010-02-03 00:16:36
Isee some good ideas here. Ashadu has some real good ones. You all have to take it one step farther now and send these ideas and any others you may have to the board. If the don't hear from you your ideas are worthless. next board meetings are this month.
Carol W
2010-02-03 03:08:51
Coop board meets Feb 22 in Bellingham send all letters to the Bellingham Office addressed to the Board of Directors, we spend hours on Member Business and all letters are given a lot of discussion.
Keep your hand on it
Tom
Salty
2010-02-03 04:59:08
If a picture is worth a thousand words then a letter to the Board is worth a thousand dock talks. Write it up!!
A note here based on some experience coaching. Young athletes I learned and was taught will tune you out if the positive to negative ratio is less than 4-1. Based on my experience serving on various boards, not the co-op, a similar rule when addressing board members seems applicable. When you are thinking about your letter to the co-op or whoever, think about four things you really appreciate for every one you are frustrated with. The more specific and detailed the better.
For example:
I really appreciate the new high pressure wands at each unloading station at Sitka SPC.
I really appreciate how careful the hoist operators are at making sure not to hit my rigging and antennae.
I really appreciate how Brian is so friendly and informative when I call in. ( I could say the whole ice crew, but I am being specific.)
I greatly appreciate Tiffany's smile and efficiency when I stop by the office.
I want that new slurry ice available to put in my hold this summer.
Does this work for you, Tom?
The following is an example of how not to impress a board member you are hoping will act on your behalf.
I have fished with Charlie, he is an exception, one to one is fine with him. Did he ever tell you about the halibut five day trip when he ran out of fresh water, the stove quit, and the tape got stuck on "Thriller" for four hours until for some reason salt water got into the speakers?
yak2you2
2010-02-03 07:32:30
About 10 years ago all we had for a processor in Yakutat was Sitka Sound Seafoods. The price, most fishermen felt, was reflective of the lack of competition. So one spring when we were way behind Southeast prices for troll kings, I got angry and called and talked to someone at SPC. I said, " I want to join up, and not just for the spring, I want to airship down all my own fish, all summer long, troll and gillnet." I was asked," are you a power troll permit holder or do you have IFQ's?" The answer was then, and is now, no. I was then told that you had to be at least one to be eligible to become a member, and that SPC was not interested in flown in fish." I've felt around a couple of times about becoming a member over the years, and have never gotten a definitive answer yet so far.
I'm curious, did I get the wrong person on the phone? Or was that the policy then, but now has changed?, or is this still the case?
There were some who just wanted the threat of being able to send fish elsewhere to someone legitimate as a hammer to force a monopolized processor into paying market prices, but I actually wanted to become a loyal fisherman of SPC, and I came away feeling looked down upon for having a small operation.Take all of it with a grain of salt, it's been some time ago now, but if this still the case, it doesn't feel very inviting to entry level fishermen, or career small timers like myself, to me at least.
I genuinely have the greatest respect for SPC, and the theory behind it, I just wanted to be a part.
SSS has since left Yakutat a number of years ago, and nobody really misses them much. A classic example of a fine mom and pop business trainwrecked by corporate conglomeration, in my humble opinion. If I was the president, NPPI wouldn't be doing business in the United States.
The new outfit in Yakutat, has tried a lot harder to remain closer to the going rate, and is an SPC affiliate, so were content in that way, but we are still starving, going rate or not.
My ultimate gut feeling is that if there is to be a future in fishing, fishermen are going to have to figure out how to band together/unionize/co-op somehow to be able to command sustainable ex-vessel prices, and that means all of fishermen westcoast wide, even the small ones.
Carol W
2010-02-03 15:33:58
Eric positive yet constructive criticism works fine, however my basic premiss has been in the 6 years I have been reading member letters to the board is that if someone is troubled enough to sit down and write a letter to the board no matter how small the issue is the issue deserves my full attention. One thing that comes out a lot in letters to the board is the volume of misinformation and how poorly informed the membership is. Information coming out of the coop is the original reason I ran for the board and I know things haven't improved much however I have through this forum and walking the docks tried to make myself available to members.
I often times see there seems to be two camps inside the coop there is the staff and then the membership, at the board we have often discussed as to how to improve comunication with the members, one of the things all members can do is provide the Belingham office with an E mail address, the other thing is send letters to the board with questions or comments, attend meetings, and call the office in Bellingham to ask questions.
One way we can improve the coop is to bring the membership and staff together so that we are all a team, there seems to be an us and them syndrome which we need to overcome. I know this type of stuff is difficult to overcome however if we can free up communication on both sides and start working as a team together we can gain in the market.
One of the things I think of constantly is the unique position the SE AK troll fleet and coop are in, and that is we have a limited number of troll caught kings and in the grand scheme of things a small production of troll coho, and if all members delivered 100 % of their production to the coop then we could in effect own the lion share of the highest value salmon in North America, and thus have more control over our destiny. I know both seiners and gillnetters who very much wish they had the marketing oppurtunities we have in the market with the coop. Remember the coop is not a for profit company and yes it is not perfect but the coop is at all sorts of political forums where you don't see the for profit companies representing their fisherman. We can improve the coop with member imput and more pounds.
The numbers I saw with second advance will put our March final above dock now I know that is not a huge accomplishment with the low dock price however it is better than what a troller gets with a for profit company.
My email address is listed in the Coop News letter feel free to contact me.
Keep your hand on it
Tom
JYDPDX
2010-02-03 22:01:18
As a soon to be noobie troller I am interested in understanding what the SPC does for me by being a member. Unfortunately, you are a bit far from me to sit down over a cup of tar but I would be glad to pour one right here on the board... I am sure there are others out there that are just afraid to ask.. no one wants to look the fool.
So here are my questions:
- Why should I join the SPC?
- Will I make more or less, on average, for my fish by being a member?
- I would really like to understand how it works. I have read the website but I am a bit fuzzy on some of it...
- What if I don't want a gear account or loan account? and how are these beneficial to me?
- What is it going to cost me?
- Please explain Production and Financial Responsibilities?
- When and How am I going to be paid?
That should get the wheels turning anyhow.
Thank you.
Ted
Perhaps the premise of this topic was to get current members more involved not recruit NEW members. I am not a member and relatively new to the industry, but have considered joining each season and for varrying reasons have not joined. Mostly due to the upfront costs and need for cashflow in the spring to do boat maintenance, gear purchases, etc. I cannot answer your questions but feel it would be very useful if someone could address them in detail. It would also be good to have some rudimentary co-op discussion, pros/cons, basics, etc. for other new entrants browsing the forum.
I do know that they have a packet for new members that covers most of the things you inquired about. They would probably mail it to you.
I suppose the bottom line for why a person should join is that in the long run you will get more money for your fish. Apparently some 9 of 10 year SPC beats the dock price but you only get 70 percent of your sales up front and then the balance owed you ("settlement check") comes in 2 installment early the following year; the amount dependent on how the fish did on the market. But I think you have to pay a membership fee each year at the beginning of the season for a certain amount of years.
If you dont deliver a certain number of Lbs. I think you get fined or something. Can a person join mid season and be exempt from this? dunno.
Please correct me where I am wrong, I am certainly no ambassador for SPC, obviously, I am not even a member and dont know much about membership details.
T'would be nice if someone could elaborate here. Maybe Jon can move this to a different topic if it's drawing away from progress towards the original topic subject matter
BigBug
2010-02-03 23:03:10
Perhaps it was...
I focused on what Charlie said "Anybody who wants to discuss anything related to the Co op please don't hesitate..." and pulled the trigger.
I sure would like some detailed info on the questions. Maybe I will ask in a seperate topic.
I did contact SPC via email, have not heard back... yet.
codfoot
2010-02-04 21:57:07
Big Bug,
Your insightful questions deserve more time than I've got to give but here's the condensed version. You asked:
Why should I join the SPC?
- Will I make more or less, on average, for my fish by being a member?
- I would really like to understand how it works. I have read the website but I am a bit fuzzy on some of it...
- What if I don't want a gear account or loan account? and how are these beneficial to me?
- What is it going to cost me?
- Please explain Production and Financial Responsibilities?
- When and How am I going to be paid?
Why join? SPC is modeled after the typical agricultural marketing and production Cooperative. The guiding principle is: when you join you become a part owner in the business (in SPC's case 511 members own an equal share in the business). Unlike a privately owned cold storage, if there are profits to be made they will be shared by the members in proportion to their deliveries. Conversely, if there losses they will also be shared by the member/owners. The Coop exists solely to divide all profits among the members. Instead of providing an owner or corporation with profits derived from your hard earned efforts you receive the full benefits of your production.
Will I make more or less? If you are committed to being in this business for the long haul, and you consistently deliver high quality, you will, on the average receive more for your production than those who deliver elsewhere. Sometimes you will gain quite a lot in one season, sometimes not. It’s very hard to predict how far above the standard dock price you’ll be for a season. In the 25 years I’ve been a member I know I’ve made considerably more $ than if I delivered elsewhere. When I started fishing I had to learn the hard way about how to lose money by not delivering to the Co op.
How does it work? I don’t really understand the question, but it works best for those who deliver consistently. If you join because you want the option to deliver, you will be continually frustrated in your efforts to “time the market”. The members who are happiest with the Coop are the ones who deliver most of their production most of the time.
Don’t want a gear or loan acct? The gear account makes it easier to charge up stuff from down South especially in the Spring when you might be short of cash. You’re allowed to charge up to half of the balance in your Capital Fund. You certainly don’t have to use your gear acct and you are charged nothing if you don’t use it. There’s a small interest chg if you carry your balance. The loan acct is a very different animal. It’s basically a savings account that pays a little higher interest than your hometown bank. There’s a limit of 50,000 and quite a few members take advantage. Essentially the account makes it possible for the Co op to borrow from the members instead of the bank. The interest that would have gone to the bank instead goes to the member/owners.
What’s it cost? It’ll cost you $500 to join. Because you’ll be a part owner in a multimillion $ facility, you’ll be required to contribute to a Capital Fund. Each member is required to invest 10% of their production (minimum of $ 1,000- maximum of $2,000/year) into their capital fund. The completed amount is $15,000. Once you have fulfilled this requirement, you’re done. If you leave the Co op your $15,000 will be returned to you. The Capital fund comes out of your Final Settlement. Why don’t we pay interest on your $15,000? The interest that would have been paid is instead paid out in higher settlements to those who deliver.
Production and Financial Responsibilities. The Co op expects you to deliver a minimum of 5,000 pounds/ year. Those who don’t will receive a $500 bill. Worst case scenario: You’ll be billed $1,000 for a minimum contribution to your Capital Fund (if you haven’t satisfied the $15,000 already) plus you’ll be billed $500 for non-delivery. Bottom line: If you don’t deliver it’ll cost! For a person just entering the fishery I recommend that you get your lines wet before you decide to join the Co op. The Co op seems to work best for those who consistently produce above 10,000# yearly.
How will I be paid? When you deliver your trip to the Co op you will receive the first advance of 70% of the current dock price. The following January you will receive the 2nd advance. This should put you near 85% of the expected final price. In April you will receive the Final Advance for your past season’s production. The books are closed the end of February before we know what the actual final price is. This payment system really helps members spread their income out. Money is tight in January for those who haven’t seen a check since last fall. Co op members get the maximum price for their fish and get the cash when they really need it.
Other benefits: The Co op boat insurance pool is a good example. Once you’ve paid in the first 4 years, chances are you won’t ever be paying for boat insurance. I haven’t paid a dime for insurance the past dozen years.
The Co op supports political fishery organizations more than any other processor or group. We still have a viable fishery because the Co op has put time, energy, and money into promoting member interests in the political arena.
The Co op keeps the price structure for the industry as high as possible. Every winter there are unhappy fishermen who ask their local cash buyer,“why can’t you match the Co op’s price.”
I hope this answers some of your questions. I’ve probably created more questions than answers, my fingers are bloody from hammering this computer and my head is empty. I should be working on my boat rewiring project while there’s still daylight. Codfoot
yak2you2
2010-02-04 22:54:39
thanks for posting the co-op info codfoot, Still missing one though. Who is eligible, to become a member, and who is not?
Specifically, can a handtroller become a co-op member,,,, or not???
BigBug
2010-02-05 00:02:09
Thank you Charlie!
I think you have pretty much answered my questions in a fashion that is much more clear than the SPC website.
I do have one point of confusion still... Is Sitka the only drop off point for the SPC or do they have dock locations throughout the SE region?
As far as I understand it, it seemsto be a pretty good deal. Always the skeptic... I have to wonder why every fishermen out there is not a member?
I do appreciate your time and am sorry to take you away from working on the boat!
Ted
yak2you2
2010-02-05 19:11:30
The silence answers my question I guess.
Sorry, didn't mean to put anybody on the spot.
codfoot
2010-02-05 19:43:31
Yak
Any troller (hand or power) or a long liner with at least #5,000 quota, can be a member. If you're a consistently producing quality concerned hand troller, the Co op might work for you. If you're a dabbler the Co op experience could be frustrating. Greg Indreland buys for the Co op in Yakutat and we have buying stations and tenders covering a large swath of SE Alaska. "Final approval of membership will be contingent upon applicant[s first year deliveries meeting SPC quality standards." Pretty windy in Sitka today. It's a good day to stay tied to the dock. I don't think you have to worry about any Sitka trollers traveling to Yakutat today in order to share the winter bounty of King Salmon. Codfoot
gumpucky
2010-02-05 20:36:51
Yes, they take hand trollers.
yak2you2
2010-02-05 21:59:47
Thanks for the replies. it's something that I've wonder about for a long time, and I'm very glad to hear that handtrollers can join. Seems like an excellent stepping process for new entries into the fishery to be able to follow. Even though we do already benefit from YSI working with SPC, I still feel inclined to join up, simply because I believe in the power of uniting with other fishermen.
DiamondLil
2010-02-08 02:04:43
I started as a handtroller and joined SPC the first chance I got. It was by light years the best business decision I made. I've delivered every fish I possibly could to SPC, and even as a hand troller, it paid off. Now I'm dabbling in some direct marketing, but for the hours it takes, co-oping the fish is a much better deal. Just be prepared to be in it for the long run and take your responsibility as an owner seriously. BTW, the loan account and the Pacific Trollers Fund are two of the best deals you'll find anywhere. Insuring you boat for the INTEREST on 16% of it's value? Unbelieveable, but that's what PTF has done for me.
Joe