Trade Adjustment Assistance Program

1
(No Transcript)
2
Trade Adjustment Assistance Program

• Washington State Salmon
• Technical Assistance Curriculum

By Washington Sea Grant Program Marine Advisory
Services and Washington State University Cooperati
ve Extension Service
3
Acknowlegements

• Steve Harbell, Sarah Fisken, and Pete Granger
  MAS
• Terry Johnson, MAP, University of Alaska
  Fairbanks
• Jon Newkirk and Dennis Fiess, Western Center for
  Risk Mgt. Educ., WSU
• NW Indian Fisheries Commission Technical Report
  Tribal Salmon
• Fisheries Marketing Opportunities
• OSU Sea Grant, Fishing Business Publication Series

4
Presentation Outline

• Overview of TAA
• Where am I?
• Salmon markets
• Financial analysis
• Where do I want to go and how do I get there?
• Profitability
• Revenues
• Expenses
• Diversification
• Do I stay in or exit?

5
TAA Overview

• What is TAA?
• Who qualifies?
• What is the application process?
• What is the timeline?

6
(No Transcript)
7
(No Transcript)
8
(No Transcript)
9
(No Transcript)
10
(No Transcript)
11
Status of World and US Salmon Markets

• World Salmon Supply
• Effects of Farmed Salmon
• US Salmon Market Trends

12
World Salmon Supply (1980 to 2001)
13
Washington Troll Chinook Salmon Ex-Vessel Price
Trends (1971 to 2002)
14
Effects of Salmon Farming
15
Effects of Salmon Farming
16
U.S. Imports of Atlantic Salmon (1990 to 2001)
17
US Salmon Market Trends
18
How Viable Is My Fishing Business

• Solvency
• Profitability
• Liquidity

19
(No Transcript)
20

• Financial Statement for __________________________
  ________________
• Date ___________________
• Assets of fishing business
• Current Assets
• Cash on hand
• Checking Account
• Receivables
• Fish Buyer ________
• Insurance ________
• __________ ________
• __________ ________
• __________ ________
• Total Current Assets ________

21

• Fixed Assets
• Vessel ________
• Equipment ________
• Gear ________
• Vehicles ________
• Gear Shed ________
• __________ ________
• __________ ________
• __________ ________
• Total Fixed Assets ________
• Total Assets ________

22

• Liabilities of fishing business
• Current Liabilities
• Payables ________
• Gear Supplier ________
• Fish Buyers ________
• Boatyard ________
• ________ ________
• ________ ________
• ________ ________
• Bank Note ________
• Other Short Term loans/credit card ________
• Total Current Liabilities ________

23

• Long-term Liabilities
• Vessel Mortgage ________
• Bank Loan ________
• ________ ________
• ________ ________
• Total Long-term Liabilities ________
• Total Liabilities _________
• Net Worth or Equity (Total Assets minus Total
  Liabilities) ________

24
Solvency

• Asset Valuation Cost and Market Value
• Measuring
• Debt to Asset Ratio
• (Total Liabilities/Total Assets) X 100

25
Profitability

• Measuring
• Tax Statements
• Income Statement

26
(No Transcript)
27
Liquidity

• Measuring
• Current Ratio
• Total Current Assets
• Total Current Liabilities

28
Where Do I Want To Go and How Do I Get There?

• Increase Revenue
• Decrease Expenses
• Diversify

29
Increasing Revenue
30
Salmon Production CostsPuget Sound
Gillnet-caught Fresh Sockeye Salmon fillets

• Ex-vessel price 1.00
• Fish Tax - 2.2 .02
• Tender cost .15
• Sub-total 1.17
• Yield from round to fillet 65 - sub-total
  1.80
• Processing Costs
• Labor .50
• Packaging .10
• Overhead .40
• Sub-total 2.80
• Sale of Green Roe (.15)
• Distribution to Retailer -10
  .30
• TOTAL 2.95

31
Direct Marketing

• Selling off the back deck
• Delivering direct to local restaurants and
  markets
• Hiring a broker
• Creating a brand
• Going on-line

32
(No Transcript)
33
(No Transcript)
34
(No Transcript)
35
(No Transcript)
36
(No Transcript)
37
Reducing Certain Expenses

• Fixed Costs
• Boat/Permit Payment
• Insurance
• Moorage Storage
• Maintenance

38
Reducing Certain Expenses

• Variable Costs
• Crew shares
• Fuel costs
• Gear costs
• Maintenance and Repair Costs

39
Diversification

• Alaska salmon permit
• Other fishery
• Direct marketing
• Fish related business as crew member
• Chartering and Eco-tourism

40
Do I Stay In or Exit?

• Staying In Resources
• Community Colleges, Technical Colleges
• Econ. Dev. Programs
• WSU CES and Washington Sea Grant
• Small Business Development Centers
• Counseling financial and personal
• TAA - Dept. of Commerce

41
Do I Stay In or Exit?

• Exiting Resources
• State Employment Offices
• Work Source - Washington State
• TAA program Dept. of Labor
• Social Services

42
Good luck out there!