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ASMI Annual Report_2014

section iii alaska seafood in the gloBal MarketPlace econoMic and Market conditions Seafood consumption in major markets such as the U.S. and There are several day-to-day challenges A glut of Atlantic cod in the market this year has reduced pricesJapan is declining. the fishing industry and ASMI share that to the point that some in the North Atlantic are opting not result from variable harvest cycles and counterpart) is using their $75 million budget to aggressivelyto fish. In addition, the Norwegian Seafood Council (ASMI’s dynamic market forces. target Alaskan cod markets. The weakening international currencies, such as the yen and The increasing global production of farmed salmon has euro, impact international purchasing power, especially for damaged global salmon prices, though Alaska salmon is still higher-end products such as premium Alaska Seafood. prized and is doing better than most others in the market. russian fisheries are producing more wild salmon and making Following periods of increased value for particular species, the market more competitive, thereby increasing the need for Alaska producers are encountering price resistance for halibut Alaska Seafood to establish itself as a premium brand in the in the current economic situation. mind of consumers. Increasing fuel and transportation costs raise already high Whitefish species are also experiencing market fluctuations. production costs in Alaska and require expensive and aggressive Pollock harvests have increased in Alaska and Russia during the marketing to help offset the price differential at the fish counter past year, and prices have fallen during the past several years. or restaurant. The Marine Stewardship Council (MSC) certification ofrussian Confusion about what is “sustainable seafood” and a pollock also affects the Alaska pollock markets in a negative proliferation of eco-labels. way. Messages in the media about actual and possible contaminants Pollock roe markets in Japan are particularly saturated, causing in seafood large price declines. Softening of markets for particular species and products (e.g. Cod and sole markets are steady, despite the increase in Alaska Pacific cod, pollock roe). and North Atlantic cod stocks. Increased influence of environmental non-governmental Competing proteins such as farmed fish, beef, pork, chicken, and organizations (eNGO) in the marketplace creates market access dairy products, are often lower priced and have well-financed issues. Maintaining market access for all Alaska producers promotional campaigns. becomes more challenging each year as ENGO sponsored Alaska seafood products have sold for favorable prices in proprietary “pay to play” eco-logos become mandatory for several domestic and overseas markets. ASMI will need to invest market entry. marketing funds to protect and maintain the gains made in these markets. Alaska Seafood Marketing Institute 2014 Annual Report 9


ASMI Annual Report_2014
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