03/18/1997 01:34 PM Senate L&C

                                                                               
               SB 115 DISCLOSURE OF SALMON PRICES                             
                                                                              
  CHAIRMAN LEMAN  announced  SB 115  to be up for consideration.               
                                                                               
  SENATOR MACKIE  said he was asked by the UFA to introduce this               
 legislation.  He explained that requiring fish prices to be posted            
 by processors seemed like a good idea, at first, but it doesn't               
 work because it's difficult for processors to post firm prices                
 until well into the season without being exposed to serious                   
 business risks.  This is primarily because of the uncertainty of              
 harvest volumes along with volatility of salmon markets.  As a                
 consequence the price quote was usually at an absolute minimum                
 until wholesale market price could be determined.  He said he knew            
 of no opposition to the bill.                                                 
                                                                               
 Number 546                                                                    
                                                                               
  MR. RICK LAUBER,  Pacific Seafood Processors Association, supported          
 SB 115.  They opposed the original bill, not because they had                 
 problems with it, but because it could be potentially harmful and             
 send the wrong message (a beginning low price) to the market.  The            
 original bill contained a good provision providing for an                     
 independent body to attempt to determine what the market conditions           
 were prior to the season and the University of Alaska does this.              
                                                                               
  MR. JERRY MCCUNE,  United Fishermen of Alaska, said there was a lot          
 of confusion among the user groups and thanked Senator Mackie for             
 introducing this bill.                                                        
                                                                               
  SENATOR KELLY  asked if fishermen negotiated individually with               
 buyers.  MR. MCCUNE replied that everybody gets the same price                
 unless a group of fishermen might cut a special deal for a special            
 market.  SENATOR KELLY said he was concerned that some of the less            
 business oriented fishermen could be taken advantage of.  SENATOR             
 MACKIE explained that if the price is posted, the final price never           
 really comes out till the end of the season.  MR. MCCUNE said in              
 Cordova on the Copper River the price might change every hour or              
 two, because they fish for 24 hours.  The price on the fresh market           
 is changing, but the price on the wholesale market in Bristol Bay             
 where they are frozen and sent to Japan might not be determined               
 until they get the final price.  He explained that posting just               
 alerts everybody else, including everyone in Japan, about where the           
 price is going to end up.  It doesn't create any competitive                  
 situation at all.                                                             
                                                                               
  SENATOR MACKIE  moved to pass SB 115 from Committee with individual          
 recommendations and a $0 fiscal note.  There were no objections and           
 it was so ordered.