Distributing seafood
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Distributing Seafood. Powerpoint animation notes: Animation and text will scroll on its own. Click to exit. The Seafood Marketing Chain. Retailer. Brokers. Secondary Processor And Manufacturer. Grower And/or Harvester. Primary Processor. Wholesaler/ Distributor. Consumer. Food

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Distributing Seafood

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Distributing seafood

Distributing Seafood

Powerpoint animation notes: Animation and text will scroll on its own. Click to exit.

The Seafood Marketing Chain

Retailer

Brokers

Secondary Processor

And

Manufacturer

Grower

And/or

Harvester

Primary

Processor

Wholesaler/

Distributor

Consumer

Food

Service

Seafood marketing chain - understand each link’s function, operational situation and expectations.


Distributing seafood

Retailer

Brokers

Secondary Processor

And

Manufacturer

Grower

And/or

Harvester

Primary

Processor

Wholesaler/

Distributor

Consumer

Food

Service

Primary

Processor

Powerpoint animation notes: Click following first talking point and to exit.

Distributing Seafood

The Seafood Marketing Chain

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.


Distributing seafood

Retailer

Brokers

Secondary Processor

And

Manufacturer

Grower

And/or

Harvester

Primary

Processor

Wholesaler/

Distributor

Consumer

Food

Service

Secondary Processor

and

Manufacturer

Powerpoint animation notes: Click following first talking point and to exit.

Distributing Seafood

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.


Distributing seafood

Retailer

Brokers

Secondary Processor

And

Manufacturer

Grower

And/or

Harvester

Primary

Processor

Wholesaler/

Distributor

Consumer

Food

Service

Brokers

Powerpoint animation notes: Click following first talking point and to exit.

Distributing Seafood

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.


Distributing seafood

Retailer

Brokers

Secondary Processor

And

Manufacturer

Grower

And/or

Harvester

Primary

Processor

Wholesaler/

Distributor

Consumer

Food

Service

Wholesaler/

Distributor

Powerpoint animation notes: Click following first talking point and to exit.

Distributing Seafood

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.


Distributing seafood

Retailer

Brokers

Secondary Processor

And

Manufacturer

Grower

And/or

Harvester

Primary

Processor

Wholesaler/

Distributor

Consumer

Food

Service

Retailer

Powerpoint animation notes: Click following first talking point and to exit.

Distributing Seafood

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.


Distributing seafood

Retailer

Brokers

Secondary Processor

And

Manufacturer

Grower

And/or

Harvester

Primary

Processor

Wholesaler/

Distributor

Consumer

Foodservice

Foodservice

Powerpoint animation notes: Click following first talking point and to exit.

Distributing Seafood

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.


Distributing seafood

Retailer

Brokers

Secondary Processor

And

Manufacturer

Grower

And/or

Harvester

Primary

Processor

Wholesaler/

Distributor

Consumer

Foodservice

Consumer

Powerpoint animation notes: Click following first talking point and to exit.

Distributing Seafood

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.


Distributing seafood

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


Distributing seafood

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


Distributing seafood

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


Distributing seafood

Covering Your Transaction

Letter of credit

Insurance for product, transport & customs

Payment currency

Currency hedging

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Distributing Seafood Internationally


Distributing seafood

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. Contains 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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Distributing Seafood Internationally


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