Title: Global Fish Markets
1Global Fish Markets
- 1. Traditional Salmon Structure Alaska
- a. Harvester Sells to Local Cannery
- b. Cannery Pre-sells Pack
- c. Cannery Stops Buying Fish
- When Pack is Complete
- d. Cannery Sells Pack
- e. Cannery May Speculate - buy
- more fish pack more
- banking on uptick in price
2Global Fish Markets
- Post-Statehood Salmon Structure Alaska
- 1. Cannery Sells Product to Distributors
- a. Dont Get Paid until Final Sale
- b. Similar Products Compete - lowering price
- c. Sellers Market, Buyers Restricted in Volume
- 2. Little Feedback from Customers to Cannery
- 3. Product Warehoused for Months
- 4. Little Provision for Fresh / Frozen Product
3Global Fish Markets
- Modern Structure
- 1. Harvester Sells to Local Cannery
- 2. Cannery Chooses Optimal Product Form
- based on Web Info re Customer Needs
- 3. Cannery Sells Product at Optimal Price
- Product Form Depending on Market
- 4. Cannery Distributes Products
4Global Fish Markets
- 1. Pollock
- a. Harvesting .20 / lb
- b. HG .25 / lb includes losses
- c. Filleting .25 / lb includes losses
- 2. Buyers Choice
- Costs HG at gt.45 or Fillet at .70
- Offers .50 for HG and .78 for Fillet
- 3. Better Deal for Cannery take .50 for HG.
5What Is the Global Seafood Market
- 1. Global Communication Now Instantaneous
- multiple customers/suppliers available
- 2. Air Cargo Rapid Frozen Transport
- insure rapid delivery anywhere
- 3. Continuous Supply of Reasonable High Quality
- Substitutes from Aquaculture
6Alaskas Share of World Fisheries
- World Production 2007 (FAO) 144,418,000
mt - Alaska Harvest 2007 (NMFS) 2,459,070 mt
- Percentage 1.7
- Not Sufficient Command to Control Market
7World Fisheries Production
8US Seafood Trade
9Alaska Share US Landings
10US Food Cost as Disposable Income
11Seafood Sales by Product Form
12World Tilapia Production
13Alaska Landings by Volume 2007
14Alaska Landings by Value 2007
15Top Seafood Suppliers N America 2007
16Customer Delivered Benefit
- 1. Customer Costs Monetary Cost, Time Costs,
Energy Costs, Intangible Costs - 2. Customer Benefits Product Benefits, Services
- Benefits, Personnel Benefits, Image Benefits
- 3. Customer Delivered Benefit is Sum of These
17Delivered Benefit HG Pollock
- 1. Buyer Costs Direct Costs .75 / lb. However
- a) Need No Fleet, No Primary Costs
Processing - Labor, Equipment, Energy, Overhead or Space.
- 2. Buyer Benefits Value of Fillets, of
Processing Byproducts, of Jobs, of Image. - 3. Buyer Delivered Benefit is Sum of These.
18World Salmon Production
19Alaska Strengths Opportunities
- 1. Wild Natural Product
- 2. Sound Fisheries Management
- 3. Omega 3 Fatty Acids
- 4. Vitamin D
- 5. Still Strong in Whitefish Market
- 6. Wild Salmon now a Niche Market Item
- 7. No Effective Substitutes for
- Halibut, Sablefish, Crab
20Alaska Weaknesses Threats
- 1. Inconsistent (Seasonal) Supply Quality
- 2. Labor Issues
- 3. Farmed Fish - Salmon, Tilapia, Organic Cod
- 4. Farmed Industry Keeps Lowering Costs
- 5. US Europe Low Seafood Consumption
- 6. US Unwillingness to Pay More for Food
21The Future
- 1. Need High Quality Fish
- 2. Need Fish Eagerly Sought by Customers
- 3. Need to Limit Competition
- Limit Effective Substitutes
- Limit Competing Regions
- 4. Need to Extract Maximum Value
- 5. One Answer - Marine Aquaculture
22Aquaculture Problems
- 1. Alaskan Hostility to Aquaculture
- Image Farmers versus Hunters
- Wild Plus Farmed versus Beef Pork Fowl
- 2. Direct Competition with Existing Fisheries
- NMFS - Halibut Blackcod
- Threaten Investments in IFQs
- 3. Common Use Issues
- Who Benefits
23Alaska Already Supports Aquaculture
- 1. Ocean Ranching Defined
- Releasing Young Fish for Common Use.
- 2. 36 Salmon (PNP) Ocean Ranching Hatcheries
- 3. 2007 36 of Total Alaska Salmon Landings
- Hatchery Raised Fish
- 4. 56 Licensed Shellfish Farms in Alaska
- 1 Oyster Hatchery, 2 Nurseries.
24Marine Aquaculture
- 1. Want State Waters - Winter Storms
- 2. Want to Prohibit Commercial Fish
- 3. Institute Subscription Buy-in
- 4. Want No Effective Substitutes
- 5. Want Life Cycle Closed
25Marine Aquaculture
- 1. Market as Live Fish - Asian Capitals
- 2. Wait until Plane is on Tarmak to Pull Fish
- 3. Live Transport Systems Developed
- 4. Bering Sea Wolffish Anarhichas orientalis
- 5. Atlantic Wolffish - 2nd Most Valuable Fish
- 6. Market Size Atlantic Wolffish - 5 kg. (11
lbs.) - 7. Wolffish - 40 per pound Live Delivered Seoul