ALASKA SEAFOOD MARKETING INSTITUTE FY20 SUSTAINABILITY PROGRAM BUDGET Susan Marks / Jeff Regnart – April 23, 2019

Sustainability/RFM Program Sustainability/RFM Program FY19/20 PROGRAM Budget Overview Sustainability/RFM Program FY19 Budget Program Operations   Personal Services $40,000 Travel Staff $7,000 Travel/RFM Committee $4,000 Travel/FSC Committee $00 $51,000 Benchmarking / Accreditation Trademark Law / RFM Transition $10,000 Materials & Printing $25,000 Events/Sponsorships/Memberships $15,000 Expert Contractors $380,000 (contractor travel) $ 50,000 Certification $340,000 TOTALS $875,000 Sustainability/RFM Program FY20 Budget Program Operations   Personal Services $40,000 Travel Staff $3,000 Travel/RFM Committee $4,000 Travel/FSC Committee $00 $47,000 Benchmarking / Accreditation $8,000 RFM Transition / Trademark law $10,000 Materials & Printing $25,000 Events/Sponsorships/Memberships $15,000 Expert Contractors $295,000 (contractor travel) $ 40,000 Certification $330,000 TOTALS $770,000 **NOTE** The overall budget was decreased by $105,000 this year. That money has been transferred over to the International Program to provide a match for the ATP grant funds that were awarded to ASMI for use starting in FY20. The International program is allocating $220,000 to Sustainability/Certification outreach in FY20.

FY20 PROGRAM Budget Highlights   FY 19 Original Budget FY20 Proposed Personal Services $40,000 Travel – Staff $7,000 $3,000 Travel – RFM Committee $4,000 Travel – FSC $00 $51,000 $47,000 Program Operations I’ll highlight the major sections – starting with Program Operations In FY20 consultants will primarily staff the Sustainability/RFM Program. A Technical Coordinator was hired in FY19 which assists the RFM Program approximately 20-30% of the time. We have decreased staff travel and these monies will be allocated in other categories.   Similar to FY19, there are no plans to convene the Fisheries Standard Committee (FSC) for an in-person meeting in FY20, and the travel for the RFM Committee will remain the same.

FY20 PROGRAM Budget Highlights Trademark Law / RFM Transition FY19 Original Budget FY20 Proposed $10,000 Materials / Printing (includes shipping) FY19 Original Budget FY20 Proposed $25,000 TRADEMARK/TRANSITION:  This was a new category for FY19. We anticipate with the impending transition of the RFM Program and the creation of a new logo, there will be fees associated trademarking and miscellaneous fees associated with the transition. We would like to continue to track these. MATERIALS/PRINTING -This section represents costs for the overall Sustainability Program; including RFM and the RFM Newsletter. There are two outdated Sustainability pieces that need to be updated. This will be a complete update to messaging, graphic design and printing of new materials. Additionally, if the AK RFM Program approves a new logo and/or transitions in FY20, there will be a need to ‘refresh’ the entire RFM Tool Kit (collateral).   * This category is also used for shipping costs. EVENTS/SPONSORSHIPS: This category will remain the same for FY20. Part of this accounts for contributions to SENA, and a new booth re-design will be required for FY20. Also, as Sustainability continues to be part of the key messaging for Alaska Seafood, more events and sponsorship opportunities are available for consideration. All must be vetted for the best ROI. FY19 Original Budget FY20 Proposed $15,000 Events & Sponsorships

FY20 PROGRAM Budget Highlights FY19 Original Budget FY20 Proposed $380,000 $295,000 (travel) $ 50,000 (travel) $40,000 Expert Contractors EXPERT CONTRACTORS: In FY20, expert consultants will make up the majority of the staff for the Sustainability and RFM Programs, with the exception of a part time ASMI Technical Coordinator. A combination of talents in Technical, Fisheries and Accreditation/Certification are represented under this category. We have seen a decrease in this category to account for the monies that were transferred to the International Program to provide a match for the ATP funds that were awarded for use in FY20. We will not lose work however, as there will be a consultant hired with the ATP funds who will have a scope of work including Program Management, Communications and Marketing for Sustainability and the RFM Program.   Similar to FY19, there remains some ‘TBD’s’ in this category for FY20. These will better understood as a transition plan for RFM is decided. CERTIFICATION: Fishery certification costs are ‘estimated’ to average $350,000 per year for the seven fisheries currently certified under the RFM Standard. The cost estimates can fluctuate from a low of $260,000 to a high of $450,000 depending on which fisheries are going through full re-certification vs. an annual surveillance audit and when the costs hit the budget. All of our certified fisheries were in annual surveillance audit rotation for FY19 and due to procedural changes in our RFM Quality Management System (QMS); we have seen cost savings in this category. FY19 Original Budget FY20 Proposed $340,000 $330,000 Certification

The Sustainability Budget continues to maximize our budget with: Budget Efficiencies The Sustainability Budget continues to maximize our budget with: Continued austere certification approaches More efficient use of contractors   BUDGET EFFICIENCIES…. Timing of certification factors in….. / multiple CB’s & bidding on work / trying to work with RFM/MSC on ATKA/POP Contractors: RS Standards / Jeff interacting with CB/AB’s more = cost savings

Budget Collaborations Leverage GSSI Benchmark Recognition 8 Benchmarked Certification Programs 80+ Partner Companies Globally / 70% growth in 2018! Companies Continue to Modify Procurement Policies I used this example last year, and it is still very relevant. As you are all aware ASMI and the State has spent a lot of $ and time over the last 5+ years on GSSI to have RFM Benchmarked……well it continues to pay off and we definitely continue to leverage this relationship for ongoing outreach about RFM. As you know RFM doesn’t have a specific budget for outreach and communications, so these sorts of collaborations are key. For those who get the GSSI newsletters and announcements, you know they are announcing a new partner every week or so. / REFERENCE SLIDE BOXES They increased from 5 to 8 cert programs that have been benchmarked Their momentum builds as companies continue to modify their procurement policies – NEXT SLIDE….

This slide represents Major retailers and foodservice partners who have modified their sourcing policies to recognize GSSI

PROGRAM CHALLENGES RFM Program: Market acceptance Funding Future of Program Transition TBD We are closer to actual transition / conversations law

PROGRAM OPPORTUNITIES RFM Transition: Viable options to consider for the transition & opportunities exist within each GSSI: Strong momentum Increase in funding partners More benchmarked programs = greater global awareness Sustainability/RFM: Opportunities for outreach with ATP grant funds New assets can be created Updated website content

PROGRAM EVENTS UPCOMING RFM Outreach Japan strategy continues / SE Asia strategy implements in FY20 SEAFOOD EXPO GLOBAL May 7-9, 2019 SEAWEB Global Sustainability Summit June 2019 General AK Industry, Summer 2019 ASMI All Hands Meeting Anchorage, AK, October 8-9, 2019 Ongoing transition work Continue discussions w/ Amendment 80 group Greater engagement with fishery client groups / pay special attention to current fishery clients regarding transition, etc….

THANK YOU!