Legislature(2021 - 2022)GRUENBERG 120

03/03/2022 10:00 AM House FISHERIES

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Audio Topic
10:09:56 AM Start
10:10:32 AM Presentation: Seafood Market Update - Alaska Seafood Marketing Institute
11:07:33 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: Alaska Seafood Marketing Institute TELECONFERENCED
Updated by Jeremy Woodrow, Executive Director,
Alaska Seafood Marketing Institute
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                         March 3, 2022                                                                                          
                           10:09 a.m.                                                                                           
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Geran Tarr, Chair                                                                                                
Representative Louise Stutes, Vice Chair                                                                                        
Representative Jonathan Kreiss-Tomkins                                                                                          
Representative Andi Story                                                                                                       
Representative Kevin McCabe                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Dan Ortiz                                                                                                        
Representative Sarah Vance                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION: SEAFOOD MARKET UPDATE - ALASKA SEAFOOD MARKETING                                                                  
INSTITUTE                                                                                                                       
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JEREMY WOODROW, Executive Director                                                                                              
Alaska Seafood Marketing Institute                                                                                              
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Gave a PowerPoint presentation, titled                                                                   
"Raising the Value: Alaska Seafood Marketing Update."                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
10:09:56 AM                                                                                                                   
                                                                                                                                
CHAIR GERAN TARR called the  House Special Committee on Fisheries                                                             
meeting to order at 10:09  a.m.  Representatives Tarr, Story, and                                                               
Kreiss-Tomkins (via  teleconference) were present at  the call to                                                               
order.  Representatives McCabe and  Stutes arrived as the meeting                                                               
was in progress.                                                                                                                
                                                                                                                                
^PRESENTATION: Seafood  Market Update - Alaska  Seafood Marketing                                                               
Institute                                                                                                                       
 PRESENTATION: Seafood Market Update - Alaska Seafood Marketing                                                             
                           Institute                                                                                        
                                                                                                                              
10:10:32 AM                                                                                                                   
                                                                                                                                
CHAIR TARR announced  that the only order of business  would be a                                                               
presentation on the Alaska Seafood Marketing Institute (ASMI).                                                                  
                                                                                                                                
10:11:04 AM                                                                                                                   
                                                                                                                                
JEREMY  WOODROW,  Executive  Director, Alaska  Seafood  Marketing                                                               
Institute, gave  a PowerPoint  presentation, titled  "Raising the                                                               
Value: Alaska  Seafood Marketing  Update" [hard copy  included in                                                               
the committee packet].  He  stated that ASMI was a public-private                                                               
partnership directed  by a governor-appointed board  of directors                                                               
composed of  five processors and  two commercial harvesters.   He                                                               
stated that ASMI's goal is to  maximize the economic value of the                                                               
Alaska  seafood  resource  by   building  the  brand,  developing                                                               
markets, and working  with the industry.  He  continued that ASMI                                                               
is  funded through  two primary  sources:  the Seafood  Marketing                                                               
Assessment  -  a  statutory  designated  program  receipt  -  and                                                               
various  federal  funds.    He noted  that  federal  funding  was                                                               
limited and  therefore competitive with other  coastal states and                                                               
commodity groups.   The  fiscal year 2022  (FY 22)  spending plan                                                               
totals   $19  million,   which  is   divided  into   5  programs:                                                               
International  Marketing,  Seafood  Technical, Global  Food  Aid,                                                               
Domestic  Marketing,  and   Communications.    The  International                                                               
Marketing  Program  oversaw  9  program  areas  in  42  different                                                               
countries.  He  stated that ASMI operates with  a 20-member staff                                                               
in Alaska  and in-market expert  contractors in each region.   He                                                               
remarked  that  the  U.S.  is  the single  largest  market.    He                                                               
discussed the Economic Value of  Alaska's Seafood Industry Report                                                               
by  the  McKinley  Research  Group,  which  found  that  Alaska's                                                               
seafood  industry employed  over 62,000  workers and  created $15                                                               
billion in economic output  nationwide, contributing $5.7 billion                                                               
to the Alaska  economy in 2019.  In 2019  alone, Alaska fishermen                                                               
harvested 5.66  billion pounds of  seafood at a harvest  value of                                                               
$2 billion,  half of which was  produced at a wholesale  value of                                                               
$4.67  billion.   He  characterized 2020  as  "rough" across  the                                                               
board, with  export value dropping  from $3.1 billion in  2019 to                                                               
$2.6  billion  in 2020.    He  stated  that 2021  showed  partial                                                               
recovery;  however, key  challenges  from  the COVID-19  pandemic                                                               
lingered, such as supply chain  logistics and rate increases.  He                                                               
suggested that the forecast for 2022 was optimistic.                                                                            
                                                                                                                                
10:41:18 AM                                                                                                                   
                                                                                                                                
MR. WOODROW  continued the presentation by  addressing the global                                                               
consumer response  to the pandemic.   Ex-vessel  harvest declined                                                               
by  27  percent  in  2020  because  of  COVID-19;  however,  with                                                               
restaurants  closing,   retail  and  direct  to   consumer  sales                                                               
increased.       Other    pandemic   trends    included   health,                                                               
sustainability, convenience,  and home  cooking.  In  response to                                                               
these  trends, ASMI  created a  global strategy  to connect  with                                                               
home cooks  by increasing  its e-commerce  presence, capitalizing                                                               
on  health  and wellness  and  emerging  trends, and  maintaining                                                               
transparency.   In addition to  retail and  digital partnerships,                                                               
ASMI  worked  with trusted  social  influencers  to increase  its                                                               
online presence.   He  cited the new  trends as  comfort, global,                                                               
holidays, and more.   He highlighted some of  the challenges that                                                               
Alaska  seafood faces,  including global  market diversification,                                                               
global competition, and existing COVID-19 difficulties.                                                                         
                                                                                                                                
11:07:33 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special  Committee on  Fisheries meeting  was adjourned  at 11:07                                                               
a.m.                                                                                                                            

Document Name Date/Time Subjects
Seafood Market Updated - ASMI 3.3.22.pdf HFSH 3/3/2022 10:00:00 AM
Seafood Market Update