Legislature(2023 - 2024)GRUENBERG 120
02/09/2023 11:00 AM House FISHERIES
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Update on Alaska's Seafood Market | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
February 9, 2023
11:07 a.m.
MEMBERS PRESENT
Representative Sarah Vance, Chair
Representative Kevin McCabe
Representative CJ McCormick
Representative Ben Carpenter
Representative Craig Johnson
Representative Louise Stutes
Representative Rebecca Himschoot
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Representative Dan Ortiz
COMMITTEE CALENDAR
PRESENTATION(S): UPDATE ON ALASKA'S SEAFOOD MARKET
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
JEREMY WOODROW, Executive Director
Alaska Seafood Marketing Institute
Juneau, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation, titled
"Alaska Seafood Marketing Institute."
ACTION NARRATIVE
11:07:28 AM
CHAIR SARAH VANCE called the House Special Committee on
Fisheries meeting to order at 11:07 a.m. Representatives
McCabe, McCormick, Carpenter, C. Johnson, Stutes, Himschoot, and
Vance were present at the call to order.
^PRESENTATION(S): Update on Alaska's Seafood Market
PRESENTATION(S): Update on Alaska's Seafood Market
11:08:51 AM
CHAIR VANCE announced that the only order of business would be
the presentation on Alaska's Seafood Market Institute.
11:09:27 AM
JEREMY WOODROW, Executive Director, Alaska Seafood Marketing
Institute (ASMI), gave a PowerPoint presentation, titled "Alaska
Seafood Marketing Institute," [hard copy included in the
committee packet]. Mr. Woodrow provided an outline of the
presentation content, as shown on slide 2. On slide 3, he
stated that, as the official seafood marketing arm, ASMI
maximizes the economic value of the Alaska seafood resource by
building and protecting the Alaska Seafood brand. It also
develops and creates markets for Alaska seafood products and
works directly with the seafood industry to maximize efforts.
He then explained the administrative makeup of ASMI.
MR. WOODROW identified the funding sources of ASMI for the
fiscal year 2023 (FY 23) and FY 24, as seen on slide 4. He
pointed out that for FY 23 the Spend Plan was $21 million, while
the plan for FY 24 would be set by the ASMI board in May of
2023. He stated that the "ex-vessel value" is used to determine
the dollar value of the commercial fish landed, and this is
calculated by using the first sale from a fisherman to the
processor.
11:11:50 AM
MR. WOODROW recounted the ASMI budget history and forecast and
showed a graph on Slide 5. The graph displayed the funding
sources for ASMI, and he pointed out the trends. He noted that
in FY 20 there was a dramatic loss in funding. Subsequently,
the federal government stepped in, providing funding through the
Alaska CARES Act in 2021, and then other funding sources in
2022. He said, this year's spending plan was around $21
million, but without additional revenues, ASMI will have to
reduce spending until revenues match expenditures. To be
sustainable, he pointed out that ASMI would need to reduce its
budget to $14 million.
11:13:18 AM
MR. WOODROW highlighted the five main programs of ASMI, shown on
slide 6 as follows: Domestic Marketing, Seafood Technical,
International Marketing, Communications, and Global Food Aid.
He then showed a map on slide 7 of the 42 international markets
that are in cooperation with ASMI. These include emerging
markets in South America, Southeast Asia, and Africa. Referring
to domestic marketing, as seen on slide 8, he stated that the
market in U.S. and Canada consists primarily of doing business
in foodservice and retail spaces.
11:15:00 AM
REPRESENTATIVE MCCABE asked if this marketing presentation could
be sent to the U.S. Trade Representative to [promote] Alaska
seafood as an export commodity.
MR. WOODROW responded that this is a "great idea," and he said
that he would follow up with the U.S. Trade Representative.
11:15:29 AM
MR. WOODROW expressed the need for communication and public
relations for sustainable seafood marketing, as seen on slide 9.
He highlighted a segment on the Today Show kicking off Earth
Week with a feature on a Kodiak fisherman displaying an
assortment of salmon products. He directed attention to slide
10, which described how the marketing program interacts directly
with the seafood industry to develop new materials and research.
He said the program ensures quality control of seafood products
from boats to processors and throughout the supply chain.
MR. WOODROW described the Global Food Aid Program, as seen on
slide 11. He stated that this program seeks to include Alaska
seafood in domestic and international food aid programs. He
added that the program provided 300,000 cans of salmon to
Ukraine, delivered in January. He thanked the current
administration for maintaining ties with the Ukrainian
workforce.
11:18:44 AM
REPRESENTATIVE HIMSCHOOT inquired about the artwork on the
salmon can label.
MR. WOODROW responded that it was created by ASMI as a throwback
to the historic can salmon labels, and this was in honor of
these labels.
11:19:28 AM
MR. WOODROW continued with slide 13, which addressed the
economic importance of the seafood industry in Alaska. He
pointed out that it directly employs 62,000 workers annually,
and this is more than any other industry in Alaska. He stated
that there is $1.75 billion in direct earnings. He stated that
Alaska holds six of the nation's top ten ports, with the
industry operating over 8,900 vessels with over 160 shore-based
processors. He continued directly to slide 14, pointing out
that the seafood industry pays the state $163 million in annual
state, municipal, and federal taxes and in fees and assessments.
He stated that $5.7 billion from the industry directly benefits
and contributes to Alaska's economy, with $2.2 billion in labor
income.
MR. WOODROW moved to slide 15 and provided polling results that
affirms 87 percent of Alaskans "feel proud" when they see Alaska
seafood in grocery stores and restaurants, while 88 percent of
Alaskans view the state's reputation around the world enhanced
by commercially caught Alaska seafood.
11:21:20 AM
To address a technical issue, the committee took two consecutive
at-eases from 11:21 a.m. to 11:22 a.m.
11:22:23 AM
MR. WOODROW played a 30-second video about the Alaska seafood
industry. He added that the advertisement can be seen on many
media outlets. In response to a committee question, he
clarified that the video was targeted specifically at Alaskans,
and this was to show support for the industry. In response to a
follow-up question, he said the aim was to target most of the
population in the state.
MR. WOODROW moved to slide 17, which showed a pie chart
depicting the diversity of commercial fisheries in Alaska. He
stated that salmon are the predominant species caught at 39
percent, followed by halibut, sablefish, and crab, each with 26
percent. He continued that next is pollock with 22 percent,
with cod, flatfish, rockfish, and "other fish" making up the
remaining percentage. He stated that this equals a yearly total
of $2 billion. He said the pie chart illustrates that to
maintain consistent earnings from year to year, it is important
to have a diverse seafood portfolio.
MR. WOODROW addressed the groundfish harvest, as seen on slide
18. He pointed out that the pollock quota decreased by 15
percent with record prices. He stated that the flat fish market
appears to be recovering and Pacific cod quotas are growing
after years of decreased abundance.
11:26:26 AM
MR. WOODROW pointed to slide 19, titled "2022 - Salmon Harvest,"
which illustrated the salmon harvest fluctuations over a 5-year
average. He reported that 2022 saw record breaking Bristol Bay
harvests; pink salmon harvest was well below average, but up
from 2020; and chum salmon were historically low, but harvest
volume was up. He added that sockeye harvests would have been
down if not for Bristol Bay.
MR. WOODROW spoke about the graph on slide 20, which addressed
the Bristol Bay sockeye salmon harvest. He emphasized that
Bristol Bay sockeye salmon are driving the industry right now;
however, he cautioned that these processors have an overload of
product. He stated that these processors have asked ASMI for
help moving the overstock to other markets. He said the
response by ASMI was to add $1.1 million to the domestic program
in 2023.
11:28:11 AM
MR. WOODROW showed slide 21, which provided a statistical
breakdown of the global supply from Alaska fisheries, with
pollack being 41 percent of the market, wild salmon being 30 to
40 percent, sablefish being 66 percent, and Pacific halibut
being 61 percent. He moved from global markets to the Russian
market on Slide 22, which provided the history of the 2014 and
2022 embargos between Russia and the U.S.
MR. WOODROW highlighted the bullet points from Slide 23,
concerning global competition. This included that the Norwegian
Seafood Council's global budget is three times larger than the
budget for ASMI and Russia has invested $7 Billion into its
fisheries. On slide 24, he outlined the four major obstacles
facing the Alaska seafood market, as follows: inflation, a
strong U.S. dollar, product inventory, and trade barriers.
Conversely, he pointed out the opportunities as follows: brand
recognition of Alaska salmon, market diversification, full
utilization of Alaska fleets, and the innovation of new
products. He elucidated that the global strategy of ASMI is
based on connecting with home cooks and promoting wild,
sustainable salmon harvests, as well as practicing
diversification and premiumization.
MR. WOODROW continued addressing the global marketplace on slide
27. He stated that about 65 to 70 percent of Alaska's market by
value is exported annually to 100 countries. He stated that the
U.S. has the largest market share of 30 percent by value. He
added that China and South Korea are the largest trading
partners for reprocessing, while Japan and Europe have the
largest direct markets.
11:33:58 AM
MR. WOODROW, moving to slide 28, emphasized the need for
diversification. He explained that from 2017 to 2020 Alaska's
export value to China dropped to $450 million. He said
subsequently, selling seafood to China is incredibly expensive,
as there is a 38 percent tariff. He expressed the opinion that
it is essential to grow markets in Southeast Asia, South
America, and possibly Eastern Europe and Africa. He showed
Slide 29, which depicted the decline of seafood sales to China
from 2013 to 2022. On slide 30 through slide 32, he pointed out
the new markets ASMI recently developed in South America,
Southeast Asia, England, and Japan. He moved to slide 33, which
illustrated the numerous grocery companies involved with e-
commerce, such as Instacart.
11:37:55 AM
MR. WOODROW discussed the increased sales for seafood prepared
at home during the pandemic. On slide 34, he indicated that 91
percent of consumers expect to prepare a meal at home as much or
more often as last year. He continued to Slide 35 and suggested
that more consumers would be enticed to eat more seafood if they
were provided with recipes. He continued discussing marketing
and consumer interest on slide 36 through slide 38.
MR. WOODROW turned to slide 40 and slide 41 and expressed the
opinion that Alaska seafood has "logo power." He pointed out
that "wild-caught" messaging resonates more with consumers than
"sourced from the USA" or "Alaska" alone. He highlighted the
"Make the Wild Choice" ad campaign that hosted a cooking contest
and sweepstakes. He emphasized the need for new recipes, such
as for fish tacos, as seen on slide 43.
MR. WOODROW moved to slide 45 and slide 46, which displayed the
ASMI's partnerships with Holland America and Princess Cruises.
He directed attention to Slide 47 and played a short video about
the international importance of sustainability. He concluded
the presentation on slides 48 through slide 51 by providing
online resources. He informed the committee that the supplier's
network on the ASMI website has also been upgraded to "buyers
with sellers."
11:47:33 AM
REPRESENTATIVE MCCORMICK, highlighting the donated canned salmon
to Ukraine, questioned whether something similar could be done
for struggling families in Alaska, specifically regarding the
Supplemental Nutrition Assistance Program (SNAP) benefits.
MR. WOODROW emphasized ASMI would be a willing partner through
the Global Food Aid Program.
11:48:55 AM
REPRESENTATIVE C. JOHNSON inquired about new emerging products
like seaweed. He questioned whether ASMI had an outreach
program to remove barriers of entry into the seafood market.
MR. WOODROW answered that ASMI is prohibited from marketing
mariculture by statute; however, it is looking at legislation in
the future to change this law.
11:50:32 AM
REPRESENTATIVE MCCABE asked whether the Alaska Railroad was a
"big buyer."
MR. WOODROW offered to follow up at a later date.
11:51:46 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Fisheries meeting was adjourned at 11:52
a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| ASMI House Fisheries FEB 9 2023.pdf |
HFSH 2/9/2023 11:00:00 AM |
ASMI House Fisheries FEB 9 2023 |