Performance Details
Department of Commerce, Community, and Economic Development - Alaska Seafood Marketing Institute
Mission
Increase the economic value of Alaska seafood resources.
Core Services
- U.S. and International Retail and Foodservice Alaska Seafood Promotion, Public Relations and Communications and Seafood Quality Technical Support
Mission Results |
Core Services |
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Performance Detail
A: Result -Increased economic value of Alaska seafood resources. |
Target #2: Maintain first place ranking of Alaska Seafood among the most popular food brands on United States restaurant menus..
Target Last Modified: 11/30/2023 |
A1: Core Service - U.S. and International Retail and Foodservice Alaska Seafood Promotion, Public Relations and Communications and Seafood Quality Technical Support |
Target #1: Increase the aggregate value of Alaska seafood exports to Alaska Seafood Marketing Institute (ASMI) program destination countries by 0.5 percent annually..
Results: - In 2022, the value and volume of exports to ASMI program countries increased 7.2%, and 0.4% respectively, from 2021 levels. Exports to non-ASMI program areas increased 0.9% by value and decreased 10% by volume. - Year-over-year export values were up across all ASMI program areas in 2022 except for eastern and central Europe (-19.2% and -25.1% respectively). China remains the largest single-nation importer of Alaska seafood by volume but was surpassed in 2022 by Japan in terms of value. Export values of Alaska seafood were up in 2022 for ASMI program areas in Northern Europe (+32%), China (+9%), and Japan (+5%). - The export value of Alaska seafood can be volatile, and often fluctuates by more than five percent year-to-year. Over the last decade (2013-2022), the compound annual growth rate in export value is negative 1.3%, below the positive 0.5% annual goal. Summary of market challenges and opportunities: Challenges: Since 2018, China has enacted tariffs as high as 42% on seafood products imported from the United States, including most seafood originating in Alaska. China has excluded products intended to be reprocessed in the country and re-exported. China remains the largest importer of Alaska seafood despite large decreases in export value since 2017, however Alaska has missed out on opportunities to sell into the growing domestic China seafood market. Global seafood import volume into China increased by 42% to 4.2 million metric tons between 2017 and 2022. Alaska seafood exports to China decreased by 38% during this period. Interviews indicate that little of the 249,000 metric tons of seafood that Alaska exported to China in 2022 stayed in the domestic China market, in part because of tariffs. The potential for fuel price increases or additional fuel price volatility resulting from instability in oil-producing countries could result in higher operational costs for harvesters and processors. The Japanese yen is as weak as it has been since the late 1990`s compared to the US dollar. The strength of the dollar makes Alaska seafood less price competitive in Japan against products from other countries such as Russia. Opportunities: The war in Ukraine has decreased the volume of seafood exports from Russia, a key competitor of Alaska wild-caught seafood, to the United States, European Union, and Japan. Sanctions placed on Russian businesses in 2022 may provide additional opportunities for Alaska seafood exports. Emerging markets for Alaska seafood present opportunities to diversify the base of both potential consumer markets and re-processing markets. Emerging markets with increased Alaska seafood imports in 2022 included Namibia, Indonesia, Lithuania, Peru, and Ecuador. Target Last Modified: 11/27/2023 |
Target #2: Increase the ex-vessel value of key species in Alaska"s commercial harvest by 0.5 percent annually..
Results: - Preliminary data indicate that the ex-vessel value for Alaska seafood totaled approximately $2.025 billion in 2022, a 0.75% increase from 2021. - Ex-vessel values were up across all major Alaska seafood categories, including salmon (+6%), pollock (+5%), halibut (+4%), and sablefish (+46%). Crab was the only major species group with a decline in ex-vessel value (-59%) due primarily to the closure of the Bering Sea snow crab and Bristol Bay red king crab fisheries. - A compound annual growth rate of negative 0.17% was observed between the 2012/2013 average and the 2021/2022 average — less than the goal of 0.5% positive growth. It is appropriate to average even and odd-numbered years to smooth fluctuations in salmon harvest values. Summary of market challenges and opportunities: Challenge: Retail scanner data from the United States show evidence of increased consumer price sensitivity in the seafood sector, likely fueled by budgets strained by inflation, as well as concerns about economic uncertainty. Preliminary 2023 price data show substantial decreases in ex-vessel and first-wholesale prices for key Alaska species. Reasons for these price corrections in 2023 include falling consumer demand, excess frozen 2022 inventory, and increased 2023 harvest for some key species (especially pink salmon and pollock) in both Alaska and Russia. Tariffs remain a challenge to selling Alaska seafood abroad, especially in China, the largest direct export market for Alaska seafood. The Bering Sea snow crab fishery was closed in the 2022/2023 and 2023/2024 seasons because of low population numbers. Opportunities: The opening of the 2023/2024 Bristol Bay red king crab fishery will be the first major red king crab fishery in Alaska to take place in the past two years. Alaska seafood products will become more affordable to the end consumer as older high-priced inventories begin to sell down and retail prices fall. Lower prices may help introduce new consumers to Alaska seafood, increasing market share. Export data show a slight increase in the percentage of Alaska seafood sold to the domestic United States market in recent years. The domestic market has great potential for industry: selling Alaska-caught seafood domestically involves fewer logistical steps than selling abroad and is tariff free. The Alaska seafood brand is well aligned with U.S. consumer values as a wild, sustainable, and American-made product. Some of Alaska`s lower-priced seafood products including pollock fillets, surimi, and flatfish fillets may appeal to consumers as a high-value healthy option during an era of high inflation and economic uncertainty. Target Last Modified: 11/27/2023 |
Target #3: Continue to generate target consumer awareness via consumer public relations and advertising campaigns..
ASMI will continue to focus on increasing consumer awareness by using various methods of media communication including broadcast, print, social or online media public relations and through consumer promotions and campaigns in both retail and foodservice. Challenges and Opportunities: Traditional in-person consumer PR and marketing activities remain effective. However, rapidly evolving technology and social media preferences require continual shifts in marketing efforts, especially on digital and social media platforms. ASMI again connected with consumers virtually through expansive and targeted social media, earned and paid media relations activities, as well as partnerships with social media influencers with millions of followers. These changing digital habits allow for new ways to educate and excite target consumers on the quality, sustainability, and health benefits of Alaska seafood, increasing the value of the Alaska seafood brand. Target Last Modified: 11/27/2023 |
Last refreshed: 04/23/2024 05:00 pm