Marketing Alaska fish to Alaskans

"Caught by Alaskans for Alaskans" is a business concept that bested 170 others in a global fisheries business competition last month at Stanford University.

The contest, sponsored by the organization Fish 2.0, rewards creative approaches that build demand for sustainable seafood, reduce waste and support fishing towns. The Alaska Community Seafood Hub model, presented by Kelly Harrell of Anchorage, won $5,000 and is in the running for more money awarded this month.

Fish 2.0 aims to build upon the knowledge and connections needed to increase investment in the sustainable seafood sector, according to its website.

"We noticed that investors were having a hard time finding fisheries deals, and fishery business owners were frustrated that investors had no interest. We created Fish 2.0 to build connections," said founder Monica Jain. "Our goal is to create the business growth needed to drive social and environmental change in the seafood supply chain."

Added Harrell, executive director of the nonprofit Alaska Marine Conservation Council: "We told the story of the ... unique assets we have in Alaska, which include thousands of small boat fishing families. We have a giant seafood economy that provides one of the largest and most sustainable seafood supplies in the world. But the way our seafood supply chain is structured, it is very difficult to get the seafood harvested locally to our communities here in Alaska, because we are set up to export such large volumes."

More than 90 percent of Alaska seafood is sold Outside.

The Walton Family Foundation, a Fish 2.0 sponsor, wrote: "Kelly pitched her business model to a room full of investors, ocean and fishing industry experts and grant-makers who shared her vision of a sustainable seafood market. She walked away with $5,000 and countless connections to help build a strong community-based fishery and bring high-quality seafood from Alaskan fishermen to local consumers."

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Harrell contends the seafood industry often overlooks Alaska, "thinking that people have access to catching their own — and a lot do. But in places like Fairbanks and Anchorage, and even in coastal towns, many people don't. And in the case of species like crab, it's really not practical to get their own."

The Alaska Seafood Hub expanded upon a Catch of the Season program and the Kodiak Jig Seafoods brand for cod and rockfish that the council has operated for years.

"We began by selling Tanner crab and cod to consumers in Alaska and through wholesale buyers in a way that tells the story of the fishermen, the species, the community where it come it comes from," Harrell said. "It helps build connections … and it generates a higher price for the fishermen. It's a real win-win."

About 20 fishermen are involved in the program today, and Harrel said their fish fetch 60 percent more than the dock price.

In addition to individuals, customers include the Bear Tooth restaurant in Anchorage, Alyeska Resort in Girdwood and Princess Tours Lodges. Harrell said fish offerings are expanding to include Tanner crab from the Bering Sea, king crab from Norton Sound and red salmon.

"This summer we sold salmon from Bristol Bay for the first time in Fairbanks, and it was a huge hit," Harrell said. "People were extremely eager to have seafood caught by Alaskans for Alaskans and we sold thousands of pounds right away."

The council's goal is to spawn seafood hubs for local brands in several Alaska fishing towns.

"We want to tell the story of halibut bycatch in the Bering Sea and how that is potentially putting these small communities out of business in terms of their halibut fishery. People in the state really need to hear it through something they can support and put on their dinner plates," Harrell said.

Paying federal fee

Alaska fishermen holding catch shares for halibut, sablefish and Bering Sea crab pay an annual federal fee to cover management and enforcement costs. The fee, capped at 3 percent of revenues, is based on dock prices for the fish through September and averaged across the state.

Bills went out in late November to 1,983 longliners, said Kristie Balovich, budget officer for the NOAA Alaska Region based in Juneau.

The dockside value of the halibut fishery increased this year, while the value of sablefish declined.

"2015 halibut landings had an increase in overall value to $107 million, compared to $100 million in 2014. Sablefish had a slight decrease, going from $76.7 million to $76.6 million," Balovich said, adding that dock prices (exvessel) were higher for both.

Halibut averaged $6.42 per pound this year (up from $6.36), and sablefish was $3.78 per pound (from $3.59).

The Bering Sea crab fisheries operate differently.

"NOAA doesn't track dock prices for crab, only the total value of the fisheries," Balovich explained.

That added up to $229 million for the 2014/2015 season, nearly the same as last year. Crab catches yielded $3.4 million in fees, collected and paid by Bering Sea processors (19 last season) by the end of July.

The federal fee increased to 1.5 percent for crab and 3 percent for halibut and sablefish this year, due to more management and enforcement personnel.

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Begich angry about GMO salmon

Former Sen. Mark Begich is continuing his fight against genetically modified salmon after the federal government approved sales last month.

"It is a very bad decision," he said in a phone conversation. "When I was in the Senate, I was able to stop it from being moved forward and being approved. So I decided I am no different than any other concerned Alaskan, and I decided to write a letter to every store chain that serves food in major quantities to ask them not to sell that product."

While many major stores in Alaska, such as Safeway, have pledged to not carry so-called Frankenfish, others are noncommittal.

"At a minimum, this product must be labeled so Alaskans can make an informed choice about what they are buying and serving to their families," Begich wrote in a letter to Wal-Mart President Doug McMillon. "Consumers have a right to know whether they are eating something from the waters of Bristol Bay, Southeast, Cordova or anywhere else in Alaska … or a test tube … I hope you will join me in continuing that effort without compromising the most sustainable fishing industry in the world that exists right here in Alaska.

"If the people making this fake fish believe it's such a good product, then label it."

Laine Welch is a Kodiak-based commercial fishing columnist. Contact her at msfish@alaskan.com.

Laine Welch | Fish Factor

Laine Welch is a Kodiak-based journalist who writes a weekly column, Fish Factor, that appears in newspapers and websites around Alaska and nationally. Contact her at msfish@alaskan.com.

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