Retailers Still Aggressively Promoting Alaskan Salmon as Abundant Supplies Dampen Prices Globally
Aggressive promotions are pushing Alaska's abundant supply of Bristol Bay sockeye supplies through retail supply chains. However, there is still a lot of downward price pressure on the Alaskan salmon market because of well supplied inventories and several other global factors. "When the supply increases as much as it has over the last few years, especially from Bristol Bay, it has a big impact on what the distributors, secondary wholesalers and retailers are willing to pay to processors who are buying from the fishermen," said Andy Wink, a Fisheries Economist with the Juneau-based McDowell Group.
Several members of Alaska's seafood industry voiced their opposition to a proposed fish tax hike in a hearing before the state's House Special Committee on Fisheries. Under the plan, shore-based operations that currently pay a 3 percent rate would go to 4 percent; salmon canneries business tax would increase from 4.5 percent to 5.5 percent, and floaters would go from 5 percent to 6 percent. "It's not a one percent tax increase, it's a 33 percent increase to the vast majority of the fish landed in Alaska," said Vince O'Shea of the Pacific Seafood Processors Association. "It raises the tariff on canned salmon at a time when we're having significant challenges already on that product in the market, from forces beyond our control."
In other news Nicole Kimball has joined the Pacific Seafood Processors Association (PSPA) as Vice President of the group's Alaska division. Kimball was mostly recently the Federal Fisheries Coordinator at the ADF&G. Her focus included policy and analytical work in cooperative program design, bycatch reduction, and strengthening shorebased fisheries. "Nicole Kimball has been involved in Alaska fisheries and resource management for over 17 years and is well respected for her work ethic and professionalism," said Glenn Reed, PSPA President.
Finally, Russia will increase its crab catches in the Sea of Okhtosk now that is has sovereignty over the "peanut hole" of water that was outside of its 200 mile EEZ. The UN awarded Russia full control over the waters starting in 2017.
Have a good weekend.
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