Legislature(2011 - 2012)CAPITOL 120

02/21/2012 05:00 PM House FISHERIES


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05:07:19 PM Start
05:08:05 PM Presentation: Alaska Seafood Marketing Institute (asmi)
06:10:29 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overview: Alaska Seafood Marketing Institute TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                       February 21, 2012                                                                                        
                           5:07 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Steve Thompson, Chair                                                                                            
Representative Scott Kawasaki                                                                                                   
Representative Bob Miller                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Craig Johnson, Vice Chair                                                                                        
Representative Alan Austerman                                                                                                   
Representative Bob Herron                                                                                                       
Representative Lance Pruitt                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION:  ALASKA SEAFOOD MARKETING INSTITUTE (ASMI)                                                                        
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
RAY RIUTTA, Executive Director                                                                                                  
Alaska Seafood Marketing Institute (ASMI)                                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided a PowerPoint presentation titled                                                                
"Alaska Seafood Marketing Institute."                                                                                           
                                                                                                                                
BRUCE WALLACE, Member                                                                                                           
Alaska Seafood Marketing Institute Board (ASMI)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  testified during the ASMI presentation.                                                                  
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
5:07:19 PM                                                                                                                    
                                                                                                                                
CHAIR  STEVE  THOMPSON  called the  House  Special  Committee  on                                                             
Fisheries  meeting  to  order  at   5:07  p.m.    Representatives                                                               
Thompson  and  Miller   were  present  at  the   call  to  order.                                                               
Representative Kawasaki arrived as the meeting was in progress.                                                                 
                                                                                                                                
^Presentation:  Alaska Seafood Marketing Institute (ASMI)                                                                     
    Presentation:  Alaska Seafood Marketing Institute (ASMI)                                                                
                                                                                                                                
5:08:05 PM                                                                                                                    
                                                                                                                                
CHAIR THOMPSON  announced that the  only order of  business would                                                               
be  a presentation  from the  Alaska Seafood  Marketing Institute                                                               
(ASMI).                                                                                                                         
                                                                                                                                
5:08:49 PM                                                                                                                    
                                                                                                                                
RAY   RIUTTA,  Executive   Director,  Alaska   Seafood  Marketing                                                               
Institute  (ASMI),  stated  that  the  Alaska  Seafood  Marketing                                                               
Institute (ASMI)  was a partnership  between the State  of Alaska                                                               
and  the seafood  industry, and  had been  in existence  for more                                                               
than  30  years, with  its  primary  mission to  market  seafood.                                                               
Directing attention to slide 2,  "The Codfish," he read the ditty                                                               
and exclaimed  that "it pays to  advertise."  Moving on  to slide                                                               
3,  "Alaska's Seafood  Industry,"  he declared  that the  seafood                                                               
industry was  "big business in Alaska  ... for the most  part, we                                                               
pay our own  way."  He declared that many  taxes were assessed on                                                               
the industry, and that about half  the ASMI budget was based on a                                                               
one  half  percent  tax  on  the price  the  processors  paid  to                                                               
fishermen.   He reported that  the other  half of the  budget was                                                               
secured  in  a  match  with the  industry,  declaring  that  this                                                               
leveraged  "marketing  access  program   funds"  to  support  the                                                               
international  marketing efforts.   He  explained that  the three                                                               
sources,  industry  funds,  state funds,  and  federal  marketing                                                               
funds, comprised  the ASMI  budget.  He  shared that  the fishing                                                               
industry,  in  2009, had  generated  more  than $4.6  billion  in                                                               
economic  value,  was  the  major employer  in  Alaska,  and  had                                                               
contributed more than $1.45 billion in labor and income.                                                                        
                                                                                                                                
5:11:12 PM                                                                                                                    
                                                                                                                                
MR. RIUTTA stated  that Alaska was the  dominant seafood producer                                                               
in the  United States, with  more than half the  seafood produced                                                               
for market.   He shared  that, in  2010, the Alaska  fish harvest                                                               
was the 11th highest since statehood.                                                                                           
                                                                                                                                
5:11:55 PM                                                                                                                    
                                                                                                                                
MR.   RIUTTA  addressed   slide  4,   "U.S  Per   Capita  Protein                                                               
Consumption  2009," and  compared fish  consumption with  that of                                                               
beef, pork and poultry.  He  noted that only 16 pounds of seafood                                                               
was  consumed per  capita in  the  U.S. and  he conjectured  that                                                               
people would  experience an  improvement in  health if  more fish                                                               
products were consumed.  He  shared that Alaska produced about 90                                                               
percent of  the salmon in  the U.S., but  only 12 percent  in the                                                               
global  market.    He  pointed  out that  a  lot  of  the  global                                                               
production  was  farmed  fish from  Chile,  Canada,  and  Norway.                                                               
Alaska  produced about  2 percent  of the  global market  for all                                                               
seafood.  He clarified that  this necessitated for ASMI to market                                                               
itself  as an  entity, not  a commodity,  in order  to command  a                                                               
better price.                                                                                                                   
                                                                                                                                
5:13:31 PM                                                                                                                    
                                                                                                                                
MR. RIUTTA  moved on  to slide 5,  "Alaska Seafood  Production By                                                               
Type," a graphic indicating the  species value versus volume, and                                                               
pointing to black  cod, halibut, shellfish, and  salmon as higher                                                               
value-to-volume products.  Each of these  stood on their own as a                                                               
product, as  opposed to  being an ingredient.   He  declared that                                                               
the fishing industry had a high  impact on the economies of rural                                                               
communities, slide  6, "Impact on Rural  Communities."  Referring                                                               
to slide  7, "What is  the Alaska Seafood  Marketing Institute?",                                                               
he explained  that ASMI was  a partnership between the  state and                                                               
the  industry, and  its job  was to  market Alaska  seafood.   He                                                               
reported that  ASMI had a  Board of Directors, comprised  of five                                                               
processors and  two commercial harvesters, who  were appointed by                                                               
the governor.                                                                                                                   
                                                                                                                                
5:15:50 PM                                                                                                                    
                                                                                                                                
MR.  RIUTTA  indicated slide  8,  "ASMI  Mission Statement,"  and                                                               
declared that ASMI  was focused on increasing  the economic value                                                               
of  Alaska seafood  and  maintaining market  access.   He  showed                                                               
slide  9,  "Lead   by  Industry,"  which  listed   the  Board  of                                                               
Directors.   He  noted that  ASMI  also had  a Customer  Advisory                                                               
Panel which advised on how best to approach the marketplace.                                                                    
                                                                                                                                
5:17:16 PM                                                                                                                    
                                                                                                                                
MR.  RIUTTA,  reflecting  on  slide  10,  "ASMI  Builds  'Alaska'                                                               
Brand," said that  AS 16.51.110 required that  ASMI promote every                                                               
Alaska product  equally, not by brand  or region.  He  noted that                                                               
sustainability, as defined in the  Alaska State Constitution, was                                                               
a basis for Alaska seafood products.                                                                                            
                                                                                                                                
5:18:10 PM                                                                                                                    
                                                                                                                                
MR. RIUTTA shared slide 11,  "The Alaska Brand," which listed the                                                               
consumer descriptors  associated with Alaska seafood.   Directing                                                               
attention to  slide 12, "Alaska  Seafood Audience," he  said that                                                               
although  the Baby  Boomer Generation  was  the target  audience,                                                               
Generation  Y had  been recently  added as  a target  group.   He                                                               
indicated  slide 13,  "ASMI Domestic  & International  Programs,"                                                               
and described  the six marketing programs:   retail, foodservice,                                                               
international, consumer public  relations, seafood technical, and                                                               
global food aid.                                                                                                                
                                                                                                                                
5:20:50 PM                                                                                                                    
                                                                                                                                
MR.  RIUTTA  discussed  the domestic  retail  marketing  program,                                                               
slides  14 and  15,  which  worked to  align  the Alaska  Seafood                                                               
Industry with  retailers across the  US, and support  their sales                                                               
and  marketing  programs  through in-store  promotions,  consumer                                                               
advertising,  public  relations,  and   trade  advertising.    He                                                               
described  other  advertising strategies,  including  co-branding                                                               
with  Alaskan  Brewing  Company and  partnering  with  individual                                                               
stores.                                                                                                                         
                                                                                                                                
5:23:05 PM                                                                                                                    
                                                                                                                                
MR.  RIUTTA  described  the ASMI  work  in  domestic  foodservice                                                               
marketing,  slides 16  and  17,  with restaurants,  universities,                                                               
chef  networks,  and  broad line  distributors  to  promote  Wild                                                               
Alaska Seafood products.                                                                                                        
                                                                                                                                
5:24:46 PM                                                                                                                    
                                                                                                                                
MR.  RIUTTA shared  some activities  that ASMI  cooperated in  to                                                               
promote Alaska seafood on campuses, slide 18.                                                                                   
                                                                                                                                
5:25:50 PM                                                                                                                    
                                                                                                                                
MR. RIUTTA  said that international  marketing was paying  off in                                                               
key  markets, including  Japan, the  European Union,  Brazil, and                                                               
China, slides  19 and 20.   He  declared that this  marketing was                                                               
only limited by the money.                                                                                                      
                                                                                                                                
5:26:26 PM                                                                                                                    
                                                                                                                                
MR. RIUTTA stated  that the Alaska Canned Salmon  Global Food Aid                                                               
program, created in  2005, had brought canned salmon  to areas of                                                               
need,  slide  21.    He  shared that  many  countries  which  had                                                               
received salmon  through food aid  programs were now  buying ASMI                                                               
products.                                                                                                                       
                                                                                                                                
5:27:17 PM                                                                                                                    
                                                                                                                                
MR.  RIUTTA  discussed  slide   22,  "Seafood  Technical,"  which                                                               
outlined  the  technical  program  for guidance  to  the  seafood                                                               
industry  in  food  safety, quality,  nutrition,  food  labeling,                                                               
environmental issues,  and cargo handling.   He stated  that this                                                               
technical program,  focusing on sustainability,  offered guidance                                                               
from point of harvest to the end  user.  He moved on to slides 23                                                               
and  24,  "Communications,"  and  said  that  the  communications                                                               
program  supported  the marketing  staff  in  its outreach.    He                                                               
shared  the many  materials  available,  including recipe  cards,                                                               
cookbooks, and training materials.   He shared the development of                                                               
Alaska  Seafood University,  and its  on-line courses,  which had                                                               
been incorporated into the training  for many of the large retail                                                               
chains.                                                                                                                         
                                                                                                                                
5:30:49 PM                                                                                                                    
                                                                                                                                
MR.  RIUTTA moved  attention  to  slides 25,  26,  and 27,  which                                                               
depicted  Seafood shows  and Expositions  around the  world.   He                                                               
said  that a  partnership  with  Rei Munoz  and  her artwork  had                                                               
helped to make the seafood show in  Boston a success in 2010.  He                                                               
described  that the  largest seafood  show  in the  world was  in                                                               
Brussels, Belgium,  which had garnered $634  million in projected                                                               
sales for  ASMI.   He discussed some  of the  other international                                                               
events including Hong Kong, Poland, and Germany.                                                                                
                                                                                                                                
5:33:10 PM                                                                                                                    
                                                                                                                                
MR. RIUTTA  briefly mentioned that  the social media  programs on                                                               
You  Tube,  twitter,  tumblr.,   and  Facebook,  slide  28,  were                                                               
important to get the message out to the Generation Y audience.                                                                  
                                                                                                                                
5:34:03 PM                                                                                                                    
                                                                                                                                
MR. RIUTTA discussed  some of the "Recent  Challenges," slide 29.                                                               
He  pointed  to  price  resistance,   growth  in  farmed  salmon,                                                               
currency  fluctuations,  and  world economics  as  challenges  to                                                               
ASMI.                                                                                                                           
                                                                                                                                
5:34:50 PM                                                                                                                    
                                                                                                                                
MR. RIUTTA  directed attention to  slides 30, 31, and  32, noting                                                               
the attacks  on Alaska salmon  producers when they  withdrew from                                                               
the MSC  certification process  in January  2012.   He summarized                                                               
that Alaska had  been with the MSC  (Marine Stewardship Council),                                                               
which certified seafood  as sustainable, for more  than 10 years.                                                               
He reflected that  the Alaska salmon producers had  asked ASMI to                                                               
refocus   its   efforts   for   an   alternative   to   the   MSC                                                               
recertification.   He  explained that  the new  certification was                                                               
defined  by the  FAO (Food  and Agriculture  Organization of  the                                                               
United  Nations)  code  of   conduct  for  responsible  fisheries                                                               
management, and the ISO 65  standards, the toughest certification                                                               
standards in  the world.  He  declared that this had  resulted in                                                               
"quite a pushback by both the  MSC and a number of their sponsors                                                               
since  we  brought that  program  to  market, claiming  it's  not                                                               
equivalent,  it's  not  worthy,  it's a  step  backward  for  the                                                               
sustainability movement, and a lot of other things."                                                                            
                                                                                                                                
5:36:11 PM                                                                                                                    
                                                                                                                                
MR. RIUTTA provided  a quote, slide 31, from Mike  Sutton, of the                                                               
Monterey Bay Aquarium and a founder  of MSC.  "Alaskans are going                                                               
to regret  the path  they are  trying to go  down."   He reported                                                               
that there was now a  concentrated effort to discredit the Alaska                                                               
hatchery program which was a model for world hatcheries.                                                                        
                                                                                                                                
5:37:19 PM                                                                                                                    
                                                                                                                                
MR.  RIUTTA explained  the issues,  slide  32, with  MSC and  why                                                               
Alaska  had withdrawn.   He  said that  market access  had become                                                               
restricted,  as  MSC  certification  was now  necessary  in  some                                                               
states  and countries.    ASMI had  viewed this  as  a long  term                                                               
problem,  because  MSC  was  influenced  by  its  funders,  which                                                               
included  the  World  Wildlife Fund  and  other  non-governmental                                                               
organizations  (NGO).   He  noted  that  ASMI had  developed  the                                                               
Alaska Seafood brand,  and did not want to be  swallowed into the                                                               
MSC brand.   He mentioned other associated cost  increases by the                                                               
MSC.                                                                                                                            
                                                                                                                                
5:38:51 PM                                                                                                                    
                                                                                                                                
MR. RIUTTA provided  a flow chart, slide 33, "What  should be the                                                               
role of the  NGO?" to define what  ASMI would like to  see as the                                                               
role  of an  NGO.   He pointed  out that  the fishery  governance                                                               
decisions were  controlled by legal  mandates, FAO  guidance, the                                                               
competent  authorities, the  stakeholders, and  the NGOs.   After                                                               
the decisions for governance were  made, they were imposed on the                                                               
fishery and the fishermen.  The  fishermen then had the option of                                                               
selling  to  the processor,  or  producing  and direct  marketing                                                               
their  own  product.    He pointed  out  that  the  certification                                                               
programs had been  established for enforcement prior  to the sale                                                               
to  the market,  and these  certification products  were becoming                                                               
mandatory.   He  clarified that  this mandatory  requirement gave                                                               
NGOs   greater  influence   over   fisheries   governance.     He                                                               
acknowledged  that   in  areas   of  bad  governance,   this  was                                                               
effective, but that in Alaska,  with strong governance, this kept                                                               
the standards  in flux.   He shared  that the biggest  concern of                                                               
the  seafood industry  was that  NGOs could  stop fisheries  from                                                               
sending  their  product to  market,  without  the NGO  having  to                                                               
participate  in   the  governance   process.    He   stated  that                                                               
governments  should  have  the  responsibility  for  establishing                                                               
certifications.   He listed  some of  the disagreements  with the                                                               
MSC,  including  its proposed  separation  of  hatchery and  non-                                                               
hatchery fish,  and separation into multiple  geographic regions.                                                               
He  declared  that  Alaska  could  take  care  of  any  fisheries                                                               
management problems,  if they arose,  as it  was the "law  of the                                                               
land."   He declared that  the current certification  program was                                                               
"absolutely adequate and  it gets the job done."   He agreed that                                                               
the  MSC had  a role,  but that  it should  not interfere,  as "a                                                               
single  private entity  who has  their own  private standard,  to                                                               
give them  the sole authority to  decide who can sell  seafood to                                                               
the public  and who  cannot, is  problematic in  the view  of the                                                               
industry."     He  declared  a   need  for  competition   in  the                                                               
marketplace, slide 34.                                                                                                          
                                                                                                                                
5:44:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI  asked  if   there  were  other  states,                                                               
countries, or nations that were  removing themselves from the MSC                                                               
labeling system.                                                                                                                
                                                                                                                                
MR. RIUTTA  replied that  no others  were currently  leaving MSC,                                                               
although  not every  country had  entered into  it.   He reported                                                               
that  Alaska  was   now  using  the  same   program  as  Iceland,                                                               
Responsible Fisheries  Management Certification.   He  noted that                                                               
Canada, and  a few other  countries, were also  contemplating the                                                               
Alaska  model for  certification processes  as an  alternative to                                                               
the MSC.                                                                                                                        
                                                                                                                                
5:45:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI asked, as  the Canadian fishery used more                                                               
farmed fish, why it had not left the MSC.                                                                                       
                                                                                                                                
MR.  RIUTTA  explained  that  this  certification  was  for  wild                                                               
capture fisheries,  and that there  was a  separate certification                                                               
for farmed fish.                                                                                                                
                                                                                                                                
MR.  RIUTTA, in  response to  Representative Kawasaki,  said that                                                               
MSC was  the best  known certification  program for  wild capture                                                               
fisheries.     He  shared  that  Alaska   salmon  fisheries  were                                                               
concerned  that MSC  would become  the  sole gate  keeper to  the                                                               
market.  He  explained that Alaska had returned to  the source of                                                               
the  certification   programs,  the  FAO  code   of  conduct  for                                                               
responsible  fisheries management,  which had  been developed  by                                                               
more than  70 nations.   He  shared that  MSC had  increased this                                                               
standard  and  its  application,  but  that  it  was  a  changing                                                               
standard without any return to the agreed upon FAO code.                                                                        
                                                                                                                                
5:48:26 PM                                                                                                                    
                                                                                                                                
MR.  RIUTTA, in  response to  Representative Miller,  stated that                                                               
MSC were  the initials  for the  Marine Stewardship  Council, and                                                               
FAO were the initials for  the Food and Agricultural Organization                                                               
of the United Nations.                                                                                                          
                                                                                                                                
REPRESENTATIVE MILLER  asked for  an update  to the  labeling for                                                               
genetically modified, or farmed, fish.                                                                                          
                                                                                                                                
MR.  RIUTTA offered  his belief  that although  labeling was  not                                                               
nationally required, Alaska did require  it.  He pointed out that                                                               
consumer demand was  to know the origin of the  product.  He said                                                               
that this was a current discussion in the U.S. Congress.                                                                        
                                                                                                                                
5:50:25 PM                                                                                                                    
                                                                                                                                
MR.  RIUTTA, in  response to  Representative Kawasaki,  explained                                                               
that Germany  and the  United Kingdom  (UK) were  strongholds for                                                               
the  MSC  certification,  as   Germany  especially  was  "heavily                                                               
influenced  by green  environmental groups,"  and retailers  were                                                               
required  to  have MSC  certification  in  order to  market  wild                                                               
capture  seafood.    He  acknowledged  that  this  represented  a                                                               
problem for Alaska seafood marketing  in Germany, and that Alaska                                                               
needed  to  educate these  countries  that  Alaska was  the  gold                                                               
standard for salmon fisheries management.   He shared that only a                                                               
few  retailers in  the U.S.  had insisted  on MSC  certification,                                                               
while  most preferred  the FAO  designation, in  lieu of  any eco                                                               
labels, which  allowed an inclusion  with their  corporate social                                                               
responsibility  programs.    He  explained that  the  Magnuson  -                                                               
Stevens Fishery  Conservation and Management  Reauthorization Act                                                               
was a requirement  for sustainable seafood, hence  any fishery in                                                               
the U.S. had already been certified  by law.  He shared a concern                                                               
that more countries would not  buy Alaska seafood without the MSC                                                               
certification, which he  described as a "moving bar."   He opined                                                               
that the  initial MSC  certification was  "a really  good balance                                                               
between industry  and the  environmental world  to try  to ensure                                                               
that  all the  world's  fisheries were  sustainable using  market                                                               
pressure" but  that it had  "begun to  tilt" so that  the seafood                                                               
industry felt it had no input to the process.                                                                                   
                                                                                                                                
5:54:49 PM                                                                                                                    
                                                                                                                                
MR.  RIUTTA returned  attention  to slide  36, which  illustrated                                                               
that the value of key  commercial species had increased from 2004                                                               
to 2010,  with the exception  of 2009.   He pointed out  that the                                                               
value  of Alaska  salmon had  increased every  year from  2002 to                                                               
2010, and  although not on  the graph,  he shared that  "the 2011                                                               
numbers were  even better."   He reported that this  increase was                                                               
directly  attributable to  investment  incentives  and the  Joint                                                               
Legislative Salmon  Industry Task Force  in 2002.  He  noted that                                                               
aggressive marketing  and investment  in changes to  the industry                                                               
had given rise to the value  of the canned and fresh products and                                                               
stabilized the  salmon market.   He  noted that  ASMI performance                                                               
was measured by the ex-vessel price of fish.                                                                                    
                                                                                                                                
5:57:40 PM                                                                                                                    
                                                                                                                                
MR.  RIUTTA moved  on to  slide  37, a  graph depicting  consumer                                                               
advertising  and  public  relations campaign  expenditures.    He                                                               
pointed out that, as funding  had diminished, ASMI had focused on                                                               
consumer public  relations campaigns  and, most  recently, social                                                               
media.  He  noted that the lower graph  reflected the consistency                                                               
of Alaska seafood exports for value and volume since 2004.                                                                      
                                                                                                                                
5:59:27 PM                                                                                                                    
                                                                                                                                
MR. RIUTTA  discussed slide  38, which  reflected the  sources of                                                               
allocation  for ASMI  funding,  including  Federal Market  Access                                                               
Program (MAP),  Seafood Assessment Tax, and  State General funds.                                                               
He  expressed  concern to  the  future  cancellation of  the  MAP                                                               
program, and those consequences for ASMI.                                                                                       
                                                                                                                                
6:00:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI asked  if the MAP funding  was related to                                                               
the state general fund match.                                                                                                   
                                                                                                                                
MR. RIUTTA confirmed  that the MAP funding was tied  to the state                                                               
funding, which was  a combination of industry  and general funds.                                                               
He repeated  the funding sources  he had described earlier:   the                                                               
seafood industry  self-assessment tax,  and state  general funds,                                                               
which were used to leverage the MAP funds.                                                                                      
                                                                                                                                
6:01:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI asked  if  ASMI had  taken advantage  of                                                               
every  available federal  dollar.   He asked  if MAP  funding was                                                               
capped.                                                                                                                         
                                                                                                                                
MR. RIUTTA replied  that MAP funding was capped  at $200 million,                                                               
and  that  ASMI  was  leveraging   this  funding  as  heavily  as                                                               
possible.                                                                                                                       
                                                                                                                                
6:02:29 PM                                                                                                                    
                                                                                                                                
MR. RIUTTA  directed attention  to slide  39, which  provided the                                                               
ex-vessel  value trend  versus  the ASMI  funding  trend, and  he                                                               
noted  the  fairly  parallel  trend  lines  on  the  graph.    He                                                               
concluded  that reasonable  investments in  advertising increased                                                               
the overall value of the seafood harvest.                                                                                       
                                                                                                                                
6:03:29 PM                                                                                                                    
                                                                                                                                
MR. RIUTTA  analyzed slide 40,  the FY 2012-2012  budget figures,                                                               
by component, and  he pointed out that although  ASMI expected to                                                               
receive  about $500  million  less in  MAP  funding, the  seafood                                                               
industry and  general funds should cover  the loss.  He  moved on                                                               
to slide  41, "FY13 Governor's Operating  Budget," which depicted                                                               
the ASMI expenses.                                                                                                              
                                                                                                                                
6:05:26 PM                                                                                                                    
                                                                                                                                
MR.  RIUTTA,   in  response  to  Chair   Thompson,  agreed  that,                                                               
initially,  it would  probably be  more costly  to market  Alaska                                                               
seafood in Europe without the MSC certification.                                                                                
                                                                                                                                
CHAIR  THOMPSON  offered   his  belief  that  ASMI   was  a  very                                                               
successful  program, and  that it  was necessary  to educate  the                                                               
markets that Alaska's seafood standards exceeded those of MSC.                                                                  
                                                                                                                                
MR. RIUTTA  agreed, stating that both  standards accomplished the                                                               
same thing,  both were good programs,  and that it was  all about                                                               
sustainable seafood.   He  said that the  new program  in Alaska,                                                               
Responsible Fisheries Management, was based  on the FAO code, and                                                               
that  Alaska  had  gotten  the idea  for  this  alternative  from                                                               
Iceland.                                                                                                                        
                                                                                                                                
6:08:54 PM                                                                                                                    
                                                                                                                                
BRUCE WALLACE,  Member, Alaska Seafood Marketing  Institute Board                                                               
(ASMI), commented that  the shift from the  MSC certification had                                                               
been discussed extensively among  the United Fisherman of Alaska.                                                               
It had been generally agreed that  it was not acceptable to allow                                                               
an NGO  to determine  the MSC certification.   He  clarified that                                                               
the fishermen  had agreed with  the fish processors to  make this                                                               
change.                                                                                                                         
                                                                                                                                
6:10:29 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special  Committee on  Fisheries  meeting was  adjourned at  6:10                                                               
p.m.                                                                                                                            

Document Name Date/Time Subjects
ASMI Overview with budget.pdf HFSH 2/21/2012 5:00:00 PM