Transcript Direct Marketing - University of Alaska Fairbanks

Powerpoint animation notes: Text, graphics and sound
will run on its own. Click to exit.
Direct Marketing
“Direct marketing is selling your own catch
to a buyer at a point farther down the
distribution chain than a primary
processor.”
As we’ll see, this can be pretty simple… but
it can also get rather complex.
Powerpoint animation notes: Text will scroll on its own.
Click to exit.
What Does a Direct Marketer Do?
Direct Marketers don’t eliminate the
middleman - they become the middleman!
You’re still a fisherman but now you also
have to:
•
•
•
•
•
process or otherwise prepare your fish for sale;
package, ship or otherwise deliver your fish;
arrange sales or attract retail customers;
collect payment on your sales; and
deal with all the extras like fish tickets, licenses, permits, and
fisheries taxes.
Powerpoint animation notes: After reviewing, click once.
Direct Marketing
Brokers
Grower
And/or
Harvester
Primary
Processor
Further Processor
And
Manufacturer
Retailer
Wholesaler
Consumer
Food
Service
The Seafood Marketing Chain
Powerpoint animation notes: Boxes will drop off and
arrows will run to other boxes. Click to exit.
Direct Marketing
Retailer
Brokers
Grower
And/or
Harvester
Primary
Processor
Further Processor
And
Manufacturer
Wholesaler
Consumer
Food
Service
The Direct Marketing Seafood Chain
Powerpoint animation notes: Click to move through each
agency’s requirements. Click to exit.


OK – Please Bear With Us
Revenue – wants to tax the fish

Fisheries Business License

Direct Market Fisheries Business License
Fish & Game – wants to count fish


“Intent to Operate”

First buyer

Catcher seller

Buyer exporter

Catcher processor

Catcher exporter

Salmon roe recovery

Fish Transporter
Environmental Conservation – food safety

Seafood Processing Permit

Direct Market Processing Permit

Direct Market Vessel

Direct Market Land-Based Processor
Powerpoint animation notes: Click to move through each
agency’s requirements. Click to exit.
Other Agencies

US Environmental Protection Agency


National Marine Fisheries Service


If you have a DEC Direct Market Shoreside facility you may
need a National Pollutant Discharge Elimination System
(NPDES) permit if you are discharging waste into a waterway.
Federal Processing Permit – needed if you’re catching
groundfish harvested in federal waters.
Food and Drug Administration
Powerpoint animation notes: Click to move through
talking points. Click to exit.
Types of Direct Market Operations

Catcher-Seller

Direct Market Fisheries Business


Catcher Exporter

Catcher-Processor <65’ LOA (Direct Market
Vessel)

Direct Market Land-Based Processor

Using Custom Processor
Shellfish Shipper
Powerpoint animation notes: Click to
move through talking points. Click to exit.
Catcher Seller

The most basic direct marketing option

Limited to the following activities


Selling your own unprocessed catch at dockside off your
vessel to the public (not for resale); or

Selling to restaurants, grocery stores or fish markets holding
a valid DEC processing waiver

Selling bait for commercial harvesting
Permits Required

You must be a licensed commercial fisherman holding a valid
limited entry or interim use permit

You must have a valid Catcher Seller permit issued by ADF&G
(there is no cost for this permit)
Powerpoint animation notes: Click to move
through second talking points and to exit.
Catcher / Seller Terminology
What does “unprocessed” mean?


Your catch is unprocessed if you only gill or gut seafood, head or
gut groundfish or decapitate shrimp to avoid decomposition.
If you butcher, freeze, and package your catch you are
processing. That is not allowed under a Catcher / Seller permit
What is a DEC exemption?


By regulation [18 AAC 31.200(b)(D)] DEC may grant a local
retail market or food service establishment a written exemption
from processing licensing requirements, which allows them to
receive up to 500 pounds of raw fish from a fisherman weekly.
Catcher / Sellers are allowed to sell to such establishments.
Powerpoint animation notes: Click to move
through main talking points.
Catcher / Seller Pros & Cons
 Pros




retail prices
no processing permit needed
fits existing fishing operations
minimal start-up costs
 Cons




markets usually limited
lost fishing time
hard to sell all species & grades
may conflict with processor relationships
Tips for Dockside Sales
 Moor
in an accessible spot
 Clear
signs and directions
 Keep
boat shipshape & clean
 No
Powerpoint animation notes:
Click through talking points
and click to exit.
pets (or rambunctious kids)
 Covered
 Change
sales area
– have enough, keep it handy
 Packaging
 Be
a “Good Scout” – helpful, courteous,
trustworthy, clean, etc.
Powerpoint animation notes:
Animation will run automatically.
Direct Market Fisheries
Business
A “step up” from Catcher / Seller
More options / More complexity
If you sell your “processed” fish in general commerce, or
process your catch in any way…
You need a Direct Market Fisheries Business License
Powerpoint animation notes: Text
will scroll on its own. Click to exit.
Direct Market Fisheries
Business

Permits Required - In addition to your limited entry or interim
use permit to fish, you will need the following:

Alaska Fisheries Business License from Dept. of Revenue
(DOR) -$25; and

Valid “Intent to Operate” on file with ADF&G – no cost;
and either a

Direct Marketing Vessel Permit from DEC - $325; or a

Direct Marketing Shore-based Permit from DEC - $200
Powerpoint animation notes: Click one to move through text.
Animation and sound will run automatically. Click to exit.
Direct Market - DEC Requirements

HACCP Plan –you will have to complete a Hazards and Critical
Control Points analysis of your operation.

DEC Inspection – Your operation will be inspected for
compliance by DEC.
Read and understand the regulations yourself. Don’t depend
on the “rumor mill”
Develop a working relationship with DEC. They want you to
succeed, but their first responsibility is the public’s food safety
www.dec.state.ak.us/eh/fss/seafood/seafood.htm
www.seagrant.uaf.edu/bookstore/pubs/ASG-45.html
Powerpoint animation notes: Click
through each talking point and to exit.
What is a “Direct Market
Vessel”

DEC regs (18 AAC 34.500 – 525) define a Direct Market Vessel as
one that is a.) less than 65’ LOA and b.) is permitted to
process only its own catch onboard…

Butcher, freeze & package only on the fishing
grounds…beyond ½ mile from shore

Inspected processing area able to be cleaned & sanitized

Approved marine sanitation device (head) required, along
with handwash sink, soap, hand towels, etc.

Approved processing water sources required

HACCP plan required
www.seagrant.uaf.edu/bookstore/pubs/ASG-45.html
Powerpoint animation notes: Click
through each talking point and to exit.
What is a “Direct Market Shore-based” Facility

In 2005 DEC established a simplified set of regs (18 AAC 34.700 –
740) for direct marketers who wanted to process only their own
catch onshore…

Limited to butchering, roe extraction, freezing & packaging only
(doesn’t cover smoking, canning, etc.)

Inspected processing area able to be cleaned & sanitized

Approved sanitary systems required, inc. handwash sink, soap,
hand towels, etc.

Approved processing water sources required

HACCP plan required
Powerpoint animation notes: Click
through each talking point and to exit.
Tips for Direct Market Facilities

Read & understand regulations

Regulations are “minimums” – exceed them

Space – as much as you can afford

Surfaces - non-porous/stainless metals, food
grade plastics

Design for easy cleaning & sanitizing

Brighter is better

Assure safe water supply

Personnel hygiene
Powerpoint animation notes: Click
through each talking point and to exit.
OK! So what is a Catcher /
Exporter?

Catching and exporting your own fish.

An ADF&G designation

Does not provide any exemption from DEC
permit requirements

If you export your own product from Alaska you
must have a Direct Market Vessel or Direct
Market Shorebased permit…even if the fish is
technically “unprocessed”, i.e live, whole, or
dressed head-on
Powerpoint animation notes: Click
through each talking point and to exit.
Shellfish

No “Direct Marketer” category in regulation

License classifications are: Harvester, Shipper,
Repacker, and Shucker / Packer

Consult with DEC to determine the precise
requirements that apply to your operation

For DEC purposes “shellfish” means mollusks –
clams, oysters, whelks, etc. & does not include
shrimp or crab.
Powerpoint animation notes: Text
will scroll on its own. Click to exit.
Custom
Processing
Having your fish custom processed by a licensed processor can
ease your workload as a Direct Marketer.
But…if you retain ownership of the fish throughout, you will
need to get and maintain F&G & Revenue licenses, do the
record keeping and reporting, etc., etc.
There is an easier alternative…
Powerpoint animation notes: Text
will scroll on its own. Click to exit.
Custom Processing Simplified
Sell your fish to you processor...and buy back the processed
product that you need to sell to your customers.
The processor covers all the licensing requirements, issuing
fish tickets, going through facility inspections.
You save time, money and hassle…leaving you free to
concentrate on fishing and your marketing efforts.
Powerpoint animation notes: Text
will scroll on its own. Click to exit.
Direct Market Business License
Applications

ADF&G and DOR requirements are on a joint form titled:
“Alaska Fisheries Business License Application and Intent to Operate”
Available at:
Department of Revenue – Tax Division
Fisheries Business License
PO Box 110420
Juneau, AK 99811-0420
Ph. (907) 465-2320
www.tax.state.ak.us/fish
Department of Fish &
Game
PO Box 115526
Juneau, AK 99811-5526
Ph. (907) 465-6131
www.cf.adfg.state.ak.us
Powerpoint animation notes: Text
will scroll on its own. Click to exit.
Direct Market Business License Applications

DEC requirements are no longer on a joint form
with ADF&G and DOR

You must complete the ADEC
“Seafood Processor’s Permit Application”
Available at:
Department of Environmental Conservation
Seafood Permits
555 Cordova St., 5th Floor
Anchorage, AK 99501
Ph. (907) 269-7637 or 7638
www.dec.state.ak.us/eh/forms.htm
Powerpoint animation notes: Click
through each talking point and to exit.
Getting Through the Direct Market Reg Maze
Are you maintaining
ownership of your product
and having it custom
processed?
Is your vessel longer than 65 feet?
Are you harvesting tuna?
Are you selling
unprocessed
product?
Are you selling just your own catch?
Not a
Direct Marketer
You need an
•ADF&G C/S
You need:
•No seafood processing
permits.
•Business license
You need:
•ADF&G IO
•DOR DM
FBL
Are you only selling off your
boat or to a DEC exempt
business under AS 18.AAC
31.200(b)(D)
Are you selling
product that you
processed?
Are you selling product to a
processor and then buying it
back?
You need:
•ADF&G IO C/P
•DOR DM FBL
•DEC Shucker/Packer
Permit
You need:
•ADF&G IO
•DOR DM FBL C/E
•DEC DM Processing
Permit (vessel or
shoreside)
Are you selling clams,
mussels, or scallops
(not including the
shucked scallop abductor
muscle)?
You need:
•ADF&G IO C/P
•DOR DM FBL
•DEC DM Permit (Vessel or
Shorebased)