Direct Marketing

1. Direct Marketing Powerpoint animation notes: Text, graphics and sound will run on its own. Click to exit. “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.

2. What Does a Direct Marketer Do? 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: Text will scroll on its own. Click to exit. Direct Marketers don’t eliminate the middleman - they become the middleman! You’re still a fisherman but now you also have to:

3. Direct Marketing Powerpoint animation notes: After reviewing, click once. Retailer Brokers Further Processor And Manufacturer Grower And/or Harvester Primary Processor Wholesaler Consumer Food Service The Seafood Marketing Chain

4. Direct Marketing Powerpoint animation notes: Boxes will drop off and arrows will run to other boxes. Click to exit. Retailer Brokers Further Processor And Manufacturer Grower And/or Harvester Primary Processor Wholesaler Consumer Food Service The Direct Marketing Seafood Chain

5. OK – Please Bear With Us Powerpoint animation notes: Click to move through each agency’s requirements. Click to exit. • 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

6. Other Agencies Powerpoint animation notes: Click to move through each agency’s requirements. Click to exit. • US Environmental Protection Agency • 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. • National Marine Fisheries Service • Federal Processing Permit – needed if you’re catching groundfish harvested in federal waters. • Food and Drug Administration

7. Types of Direct Market Operations Powerpoint animation notes: Click to move through talking points. Click to exit. • 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

8. Catcher Seller Powerpoint animation notes: Click to move through talking points. Click to exit. • 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)

9. Catcher / Seller - Terminology Powerpoint animation notes: Click to move through second talking points and to exit. 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.

10. 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

11. Powerpoint animation notes: Click through talking points and click to exit. Tips for Dockside Sales • Moor in an accessible spot • Clear signs and directions • Keep boat shipshape & clean • No pets (or rambunctious kids) • Covered sales area • Change – have enough, keep it handy • Packaging • Be a “Good Scout” – helpful, courteous, trustworthy, clean, etc.

12. Direct Market Fisheries Business Powerpoint animation notes: Animation will run automatically. 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

13. Direct Market Fisheries Business Powerpoint animation notes: Text will scroll on its own. Click to exit. • 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

14. Direct Market - DEC Requirements Powerpoint animation notes: Click one to move through text. Animation and sound will run automatically. Click to exit. • 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

15. What is a “Direct Market Vessel” Powerpoint animation notes: Click through each talking point and to exit. • 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

16. What is a “Direct Market Shore-based” Facility Powerpoint animation notes: Click through each talking point and to exit. • 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

17. Tips for Direct Market Facilities Powerpoint animation notes: Click through each talking point and to exit. • 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

18. OK! So what is a Catcher / Exporter? Powerpoint animation notes: Click through each talking point and to exit. • 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

19. Shellfish Powerpoint animation notes: Click through each talking point and to exit. • 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.

20. Custom Processing Powerpoint animation notes: Text will scroll on its own. Click to exit. 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…

21. Custom Processing Simplified Powerpoint animation notes: Text will scroll on its own. Click to exit. 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.

22. Direct Market Business License Applications Powerpoint animation notes: Text will scroll on its own. Click to exit. • ADF&G and DOR requirements are on a joint form titled: “Alaska Fisheries Business License Application and Intent to Operate” Available at: Department of Fish & Game PO Box 115526 Juneau, AK 99811-5526 Ph. (907) 465-6131 www.cf.adfg.state.ak.us 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

23. Direct Market Business License Applications Powerpoint animation notes: Text will scroll on its own. Click to exit. • 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

24. Getting Through the Direct Market Reg Maze Powerpoint animation notes: Click through each talking point and to exit. Are you maintaining ownership of your product and having it custom processed? Is your vessel longer than 65 feet? N Y N Are you harvesting tuna? Are you selling unprocessed product? Y Y N Y Are you selling just your own catch? • You need: • ADF&G IO • DOR DM FBL • You need: • ADF&G IO • DOR DM FBL C/E • DEC DM Processing Permit (vessel or shoreside) N Y N Not a Direct Marketer 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? N Y Y Are you selling clams, mussels, or scallops (not including the shucked scallop abductor muscle)? Are you selling product to a processor and then buying it back? • You need an • ADF&G C/S N Y Y N • You need: • No seafood processing permits. • Business license • You need: • ADF&G IO C/P • DOR DM FBL • DEC Shucker/Packer Permit • You need: • ADF&G IO C/P • DOR DM FBL • DEC DM Permit (Vessel or Shorebased)