Major seafood processor Icicle Seafoods, Inc. announced that it has entered into a preliminary agreement to purchase Snopac Products, Inc. Both companies have big operations in the Bristol Bay salmon and other North Pacific fisheries, process millions of pounds of sockeye every summer.
Bristol Bay Borough Mayor Dan O'Hara noted that this consolidation, one of many Bristol Bay has seen in recent years, mirrors the ups and downs inherent in the industry.
"One of the good things that comes from it is Icicle is doing quite well financially. We will continue to have good processing for our big runs here in the bay," O'Hara said. "The down side is, all it does is consolidate more processors. It locks it in, (and) it kind of ties our hands."
Keeping a competitive market in Bristol Bay is vital, O'Hara said, but so is the economic health of the processors and their ability to take fish. The move raises a number of questions among Snopac's fleet fishermen as their chosen buyer changes ownership.
Differences between processors can vary greatly — including price per pound, tender lines, limits, quality control, availability of fuel, or any number of other factors that affect the fisherman-processor relationship.
Chester Wilson is a lifelong Naknek resident who has been a Bristol Bay driftnet fisherman for more than 40 years. He is also a Snopac fisherman. Like most fishermen, Wilson's biggest concern is whether he'll be able to sell his fish. After all, a full hold doesn't mean much if no one's buying. That's why he's called both Snopac and Icicle to ask about the future for Snopac's fleet.
"Transferring one company to the other, sometimes the new fleet gets shoved down to the bottom of the list," Wilson said. "That was my big worry. Am I going to be able to get rid of my fish? What kind of limits are they going to put us on? And the pay is a big thing."
After speaking to Icicle's fleet manager, Wilson said he was told that Icicle had the capacity to take his and the rest of the Snopac fleet catch. Wilson and other fishermen are largely looking for insights and information as their niche in the industry gets an unexpected makeover. But June ia still three months away, and there area no definitive answers yet.
One likely change is the quality-control program Snopac offered its fishermen. Boats that consistently provided high quality salmon -- through better handling and storage techniques -- qualified for incentives that often totaled more than 10 cents more per pound.
"(Icicle) told me they are not going to continue that at this time," Wilson said.
While Icicle does offer a production bonus to fishermen with high numbers, Wilson said it seems counter intuitive to ditch the high-quality techniques he was using on his boat.
"I've been fishing for quality, and now I'm taking steps backwards," he said. But Wilson said he's determined to stick it out.
Neither Icicle or Snopac have released the financial terms of this agreement or the time line for finalizing the deal. While Snopac didn't want to comment on the sale until it's finalized, CEO Gregory Blakey said in a press release, "While we take a lot of pride in being one of the last independent, family-owned processors in Alaska, we know that a combination with Icicle is the best long-term solution for our employees and fleet."
Snopac does business out of Alaska and Seattle, dealing in herring, sockeye and pink salmon. It has operations in Southwest and Southeast Alaska.
Icicle is the 12th-ranked seafood company in North America, with diverse operations in both wild and farmed fisheries. Icicle's recently was in the news due to a settlement between the company and the NOAA Office of Law Enforcement regarding penalties for going over crab processing caps between 2002 and 2004. The initial $3.44 million notice of violation and assessment was settled on Jan. 31 for $615,000.
This article was originally published in The Dutch Harbor Fisherman and is reprinted here with permission.