This study describes the catfish processing industry in nine Southern States in 1970, and attempts to determine factors affecting the economic operation of the 16 plants surveyed. The infant industry--only three of the 16 processors marketed any fish prior to 1968—is still experimenting with different processing and marketing methods. Processing methods include hand labor, machine use, and a combination of both. About 98 percent of the product was sold wholesale in 1970. Obtaining a steady supply of fish--especially in slack summer months--to increase utilization of capacity is the major problem facing the industry. In contrast to a total capacity of 21.3 million pounds (live weight), the plants only processed 6.4 million pounds in 1970.