SEAFOODNEWS.COM (John Sackton) — May 29, 2014 — A new conflict is developing in Alaska as Silver Bay, a different type of processor that is fishermen owned, expands and competes with traditional Alaskan processors using a different economic model.
Instead of focusing on brand, value-added products, and a premium price, Silver Bay is comparable to Walmart, with an intense focus on costs and a mission to get fish out of the water as fast and in as high volume as possible for shipping to China. Most Alaskan processors have some commodity sales, but it has been a long time since a major processor focused almost exclusively on commodity sales. The resulting clash has the potential to be as significant for the future of the Alaskan fishery as the offshore vs inshore battle, or the ten year price-fixing lawsuit against Bristol Bay salmon packers.
The Louisiana brown shrimp season is open, and initial reports are it is slow, likely due to cold weather and slow growth. “This is not looking like one of our better seasons for sure,” said Kimberly Chauvin of the David Chauvin Seafood Company in Dulac.
US retailers slashed tilapia promotions by 50% during Lent this year, according to Urner Barry data. Reacting to higher prices, promotions were cut back across the board. This is the fourth year that frozen tilapia prices rose during the Aug- Dec buying season, with the consequent pressure on retail prices. This year it looks like price increases were allowed to flow through to the customer.
Bill Taylor, of Taylor Shellfish, the largest West Coast producer, says it is a relief to have the Chinese geoduck ban lifted, and more importantly, future problems would be dealt with by targeting the specific area or company, not with a blanket ban.
This year is the 100th anniversary of Seattle’s Fishermen’s terminal. Fully 40% of fish landed in the US is handled by boats that call the terminal their home port. Sen. Maria Cantwell issued a statement today, and there have been ongoing anniversary events. The Terminal was originally requested by the Puget Sound Purse Seine Fishermen’s Association in 1912, and opened in 1914.
Our video today also addresses the issues raised by the Silver Bay sales and operational model for Alaska.
View the video here
This story originally appeared on Seafood.com. It is reprinted with permission.