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            Distributing Seafood
The Seafood Marketing Chain
                                                             Retailer
                                       Brokers


 Grower       Primary     Secondary Processor    Wholesaler/
                                 And                                Consumer
 And/or       Processor                          Distributor
Harvester                    Manufacturer


                                                                Food
                                                               Service

Seafood marketing chain - understand each link’s function,
operational situation and expectations.
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                                                      following first talking point and to exit.

      Distributing Seafood
                                                              The Seafood Marketing Chain

                                                                                                         Retailer
                                                                                 Brokers



                                          Grower                 Secondary Processor       Wholesaler/
                                                      Primary                                                       Consumer
                                          And/or                         And               Distributor
                                                     Processor
                                         Harvester                  Manufacturer


                                                                                                           Food
                                                                                                          Service

               Primary
               Processor

Function: Buys fish, sorts, weighs, grades, slimes and washes, head & guts.
May be fully integrated into the seafood chain. Commonly performs secondary
processing.

Operational situation: Proximate to harvest grounds. Works with fishermen,
market buyers. Handles significant regulatory requirements, including DEC
permits. Employs variety of labor. Sells to all points in the seafood chain.

Expectations/Needs: Fish from harvester that will let processor meet its buyers
specifications.
                                                      Powerpoint animation notes: Click
                                                      following first talking point and to exit.

      Distributing Seafood
                                                                                                         Retailer
                                                                                 Brokers



                                          Grower                 Secondary Processor       Wholesaler/
                                                      Primary                                                       Consumer
                                          And/or                         And               Distributor
                                                     Processor
                                         Harvester                  Manufacturer


                                                                                                           Food

         Secondary Processor                                                                              Service




                and
            Manufacturer

Function: Often the primary processor. Freezing, steaking, filleting, canning,
smoking, battering & breading, portioning, vacuum packing, gift boxing.

Operational situation: Complex operation. Large ingredient inventory. Skilled
processing workers, various equipment, and strong manufacturing efficiencies.
Often an in-house sales staff. Product inventory large; takes time to move.
Holding capacity large.


Expectations: Good quality product. Will need to offer a number of species.
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                                                      following first talking point and to exit.

      Distributing Seafood
                                                                                                         Retailer
                                                                                 Brokers



                                          Grower                 Secondary Processor       Wholesaler/
                                                      Primary                                                       Consumer
                                          And/or                         And               Distributor
                                                     Processor
                                         Harvester                  Manufacturer


                                                                                                           Food
                                                                                                          Service




                Brokers



Function: Do not own product. Sell on commission. Territorial. High volume
sales.

Operational situation: Little overhead. Geographically well connected. May
require higher commissions on lower volume transactions.

Expectations: Long-term relationships with suppliers. Consistent products
delivered in a timely fashion.

Direct market targets: Those handling high-value, niche products to niche
markets. Example: live geoducks to Hong Kong.
                                                        Powerpoint animation notes: Click
                                                        following first talking point and to exit.

      Distributing Seafood
                                                                                                           Retailer
                                                                                   Brokers



                                            Grower                 Secondary Processor       Wholesaler/
                                                        Primary                                                       Consumer
                                            And/or                         And               Distributor
                                                       Processor
                                           Harvester                  Manufacturer


                                                                                                             Food
                                                                                                            Service



                          Wholesaler/
                          Distributor

Function: Large capital intensive operations. Deliver to food service or
retailers. Seafood small part of product line. Fleets of trucks, including
refrigerated. Significant warehousing capacity. Door delivery.

Operational situation: Strong network of suppliers and buyers. Significant
capital investment. Streamlined distribution/logistics capacity.

Expectations: Need a variety of products. Appreciate fewer suppliers.
Appreciate buying from a company that has several seafood species.
Direct market target: Small, regional distributors specializing in seafood.
                                                      Powerpoint animation notes: Click
                                                      following first talking point and to exit.

      Distributing Seafood
                                                                                                         Retailer
                                                                                 Brokers



                                          Grower                 Secondary Processor       Wholesaler/
                                                      Primary                                                       Consumer
                                          And/or                         And               Distributor
                                                     Processor
                                         Harvester                  Manufacturer


                                                                                                           Food
                                                                                                          Service




                           Retailer


Function: Sells products for home consumption. Supermarkets, grocery stores,
fish markets, health food stores, farmers markets. Offer wide array of products.

Operational situation: Huge overhead costs. Sustain the greatest “shrinkage”
from poor seafood quality. High employee turnover. Survive on high volume,
small margins bringing greatest mark-ups.

Expectations: Need seafood with greatest shelf-life possible. Can use point-of-
sale promotional material and education for staff.
Direct market target: Small, high-end locally owned grocery stores, meat and
seafood specialty stores.
                                                       Powerpoint animation notes: Click
                                                       following first talking point and to exit.

      Distributing Seafood
                                                                                                          Retailer
                                                                                  Brokers



                                           Grower                 Secondary Processor       Wholesaler/
                                                       Primary                                                       Consumer
                                           And/or                         And               Distributor
                                                      Processor
                                          Harvester                  Manufacturer


                                                                                                          Foodservice




                          Foodservice


Function: Prepare food for consumers. Single to large franchise restaurant.
Institutions like hospitals, schools, prisons, and entertainment venues.

Operational situation: Constant flow of product. Generally little holding
capacity. Diverse product needs. Significant labor requirements.

Expectations: Use variety of products with quick turnaround. Products are
menu driven and generally set. Efficient. Prefer to source from one supplier.
Increasing preference to convenience.

Direct market target: White table cloth, owner-operated, restaurants.
                                                      Powerpoint animation notes: Click
                                                      following first talking point and to exit.

      Distributing Seafood
                                                                                                         Retailer
                                                                                 Brokers



                                          Grower                 Secondary Processor       Wholesaler/
                                                      Primary                                                       Consumer
                                          And/or                         And               Distributor
                                                     Processor
                                         Harvester                  Manufacturer


                                                                                                         Foodservice




                          Consumer


Function: Ultimate decision maker.

Operational situation: Generally buys food one – three times a week. Limited
storage. Limited volumes.

Expectations: Consistent quality. Seeking greater ease in preparation.

Direct market target: Through farmers markets, road side, off the vessel,
through food cooperatives.
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Distributing Seafood Internationally

• General comments
  – Best if you are familiar and/or have trusted
    contacts
  – Select markets that would be receptive to your
    product
  – Keep it simple and understand local rules
  – Cover yourself financially
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 Distributing Seafood Internationally
• Additional Things to Consider
   – Overseas freight costs
   – Certification/inspection fees
   – Documentation –
       • certificate of origin
       • Invoice
       • Packing list
   – Tariffs, taxes, duties
   – Exchange rate differences
   – Product testing
   – Use of a broker/trader
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 Distributing Seafood Internationally
•Know Your Market
   – Oversea customs

   – Seafood preferences

   – Product preferences

   – Nature of competition



 Finding a broker/trader to move your product through the
         foreign country may be the simplest step.
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Distributing Seafood Internationally

•Covering Your Transaction
  – Letter of credit

  – Insurance for product, transport & customs

  – Payment currency
     • Currency hedging
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 Distributing Seafood Internationally
•Resources
     –   Alaska Seafood Marketing Institute

     –   Alaska Office of International Trade
             •   Link to State of Alaska division that specializes in trade and investment development.

             •   http://www.gov.state.ak.us/trade/

     –   Alaska Export Assistance Center
             •   http://www.buyusa.gov/alaska/

     –   Food and Drug Administration
             •   Link to seafood portion of the US Food and Drug Administration site. C ontains announcements, background,
                 compliance, inspection, export certificate requirements, etc.

             •   http://www.cfsan.fda.gov/seafood1.html

     –   Foreign Agricultural Service - Forest and Fishery Products Division
             •   http://www.fas.usda.gov/ffpd/fpd.html

     –   NMFS Trade and Commercial Services
             •   National Marine Fisheries Service trade site. Great resource for trade statistics, tariff schedules, special reports,
                 guide for exporting to Europe, etc.

             •   http://www.nmfs.noaa.gov/ocs/tradecommercial/

     –   World Trade Center Alaska
             •   http://www.wtcak.org/

								
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