why fishermen choose spc

 
Fisherman fishing black cod

WHY SPC? HOW THE CO-OP WORKS FOR FISHERMEN

SPC is your company. When you are a member of the Co-op, you have the opportunity to be a part of something bigger than yourself. Since 1944, SPC has helped to support a traditional way of life and preserve the independence of what is, by nature, an independent profession. As a cooperative, we are built on the support of our members, and pride ourselves on remaining uncontrolled by corporations and unknown investors. SPC has remained independent—for fishermen, by fishermen—throughout many ups and downs of the market and food trends. The Co-op has kept our community of fishermen on the grounds by stabilizing and supporting dock prices through the years.

NORTH AMERICA’S OLDEST AND MOST SUCCESSFUL FISHERMEN-OWNED COOPERATIVE

SPC is the longest surviving Fisherman’s co-op in the country, founded in 1944 by fishermen just like you. There have been a lot of bumps in the road and some fantastic years to boot in that time. If you talk to our older members, it has certainly been a positive investment during their careers. Due to our member's perseverance and loyalty to their Co-op, we are still here, operating successfully today. There is a book written about the history of SPC from its beginning up through the seventies by longtime member Frank Caldwell, titled “Ebb & the Flood.” It is interesting to read about the challenges and successes of the Co-op through those years. We have copies free of charge in the Sitka office, if you would like one, let us know, and we will get it to you. Seafood Producers Cooperative is proof the Co-op philosophy works, but only with the dedicated support of its members.

FINANCE AND OPERATIONS

*Board of Directors: You can shape the company’s direction for the betterment of your community, your peers, and yourself, by participating on the Board. As a member of the Board, you will be able to vote on bylaws, company policies, and elect your fellow Board members. Together, you will be a voice within a fleet of cooperators.

* Share in Returns: All of SPC’s profits go to you, the fishermen-owners, not investors or distant corporate entities. As a Co-op, members are able to share in any profitability earned above dock price, as compared to a privately held company, where any profit goes into owner’s pockets. This profit sharing only applies to pooled product. Operating at an 80% advance provides the Co-op the ability to operate more cost effectively, and allows some cushion when there are market challenges. For fishermen, this means that we are riding our fish all the way into the market place, not selling ‘short’ at the dock, like a traditional processor.

  • Sell fish to Co-op at 80% of SPC Dock value at time of sale

  • Second advance in January to bring settlement to 90% of expected total SPC dock value at time of sale.

  • Final Advance in March to share profit above SPC dock  (net income after cost/retained earnings deduction)

Trust That You’re Being Treated Fairly And Honestly: When you belong to a company that is member-owned and directed, you can be assured you’re being paid the highest profit possible for the value of your products as determined by your Co-op. As a member, you have a management team that is dedicated to the welfare and financial stability of your company and works diligently to get the best margins for you. SPC's finances are clear and available, and our books are audited annually by an outside party to ensure that all financial information is honest and accurate. Access to the financial statements and audits is available to all members. Our financial team and bankers work very hard to keep track of our complicated organization and ensure that it is built on sound financial principles that protect you and your interests. At SPC, our loan accounts have always paid interest and have been available on-demand so that while your capital is with us, it is not only growing but accessible to you always. When it comes to returning capital to members that retire, we have a perfect track record, ensuring that what’s yours stays yours. By law, only producers can be owners of SPC, so at the Co-op, all stockholders and board members are fishermen. As long as SPC is in business, there will never be outside investors with the motivation to send profits anywhere except back to the members who keep us running.

● Having a Say in the Future of Your Company: As an owner and a stockholder, every member of the Co-op has a vote on who is elected to the Board and any Bylaw changes within the company.

● Markets: SPC gives fishermen access to a more diverse array of markets than what is available when they are working alone. Food trends come and go, and having a diverse customer base means that fishermen don’t have to count on one type of customer to make a living. SPC’s customer base includes high-end, domestic, and international retailers, restaurants, distributors, and its own direct-to-consumer program. This wide base of customers allows SPC, and fishermen like you, to make the highest profits possible.

SERVICES

A State-of-the-Art Plant and Processing Facility: We have a great facility and crew here in Sitka that handles millions of pounds of product per year. Our plant features high-pressure washers to facilitate cleanup at the hoists and two ice chutes that provide top-quality ice with the highest quantity available in Sitka. We have all the necessary gear to offload your fish in a timely manner, at SPC our goal is to get you back on the grounds as quickly as possible.

Bait: SPC works hard to locate and provide members of our fleet with the highest quality Longline & Troll bait available, sold at cost to members.

Laundry & Showers: The Co-op has a newly renovated shower and laundry facility located at the Sitka plant that is open to our fishermen & crews.

Vehicles: SPC has a small fleet of vehicles, including SUVs and flatbed trucks, available to our members. Co-op members can sign out vehicles the day of; however, there is a high demand in the summer months. Be sure to contact the icehouse to reserve a vehicle prior to use.

Bait & Gear Storage: SPC offers storage of baited gear and personal bait, for two weeks free of charge and $20 per month, per tote, beyond the first 14 days.

OTHER BENEFITS

● Interest-Bearing Loan Account: If you don’t need the cash right away, you can deposit your fishing funds into the loan account. The loan account is an interest-bearing account, earning a competitive interest rate tied directly to SPC’s external cost of borrowing, that allows the Co-op to utilize those funds in our operational spending throughout the season. This way, we can avoid borrowing those funds from a bank and paying interest. And as a member, you can earn interest on your account and request that your loan account funds be deposited in your personal account at any time.

● Tax Deduction: The Domestic Production Activities Deduction (DPAD) was passed in 2004 to offer tax relief for businesses that produce most of their goods inside the U.S. rather than overseas. Per the IRS website, the amount of the DPAD is a maximum of 9% of your “Qualified Production Activities Income” or “Adjusted Gross Income,” figured without the DPAD. The 9% DPAD benefit was repealed and replaced with the Qualified Business Income Deduction, which allows a 20% deduction on your net income. However, as fishermen and members of the Cooperative, you continue to receive additional benefits as Cooperatives were allowed to continue utilizing a DPAD-like deduction as part of the new deduction. The Cooperative calculates and reports a 9% deduction on your gross fishing production. You then receive an 11% deduction on your net income. As a member of the Co-op, when you combine these two factors, in many situations, you are getting more than a 20% deduction.

● Gear Account/Discounts at Vendors: As an SPC member, you may charge up to 50% of your Capital Investment in purchases to your gear account. If you need to go over the 50% limit and you have funds in your loan account to cover the difference, you can contact Sherri in the Bellingham office and make arrangements to do so. This allows members to order supplies from vendors such as LFS, Seattle Marine, Fisheries Supply, and many others. Also available to members are significant discounts, up to 30% off, depending on where and what you choose to order.

● Personal Fish: SPC offers processing and storage of personal fish at cost with a 200/lb per year limit.

● Fuel Discount: SPC has a discount agreement with Delta Western (907-747-4999), a local fuel distributor, for our fleet. Just let them know you are a member, and you will receive the Co-op price. Delta Western offers truck delivery at the Seawall. This agreement with Delta Western also provides a selection of filters and oil at discounted prices available to SPC members.

● Scholarship Program: SPC offers scholarship awards every year for children of members & employees. You can contact Sherri at our Bellingham office for applications. This program is funded through donations from our members. If you have the opportunity and desire to contribute, please reach out to either the Sitka or Bellingham office, and we can take care of your contribution.

● Pooling Bonus Program: SPC currently offers various levels of incentive programs based on delivered & pooled pounds in addition to quality and pooling bonuses. Volume bonus for member vessels only. $0.03/lb applied to deliveries over 20,000 lbs. Additional $0.03 applied to deliveries over 50,000 lbs. Pooled pounds only – pooling bonus of $0.05 for 90% of annual deliveries to SPC by permit. A quality bonus of $0.05/lb for dressed troll fish delivered to the plant from July 1st to September closure. Gillnet dock delivery bonus of $0.05/lb if our tender is unavailable in Deep Inlet.

● Political & Gear Group Support: SPC is very politically active and donates funds every year to gear groups that fight for your livelihood on the ocean, such as Alaska Longline Association, Alaska Trollers Association, United Fishermen’s Association, and others. We also have staff and members that participate with written and in-person testimony at the Board of Fish, NPFMS Council, IPHC, ADF&G, and others on our member's behalf. In closing, it’s plain to see that SPC has a lot to offer its members beyond being a place to sell your fish. It is my hope that, as a member, you can recognize this, and we can count on your support in continuing to make SPC a great Cooperative for many years to come!

Sincerely,
Norm Pillen
President of Seafood Producers Cooperative