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, graphics and sound will run 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: Text will scroll on its own. Click to exit.

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

Direct Marketing Grower And/or Harvester Grower And/or Harvester Primary Processor Primary Processor Further Processor And Manufacturer Further Processor And Manufacturer Wholesaler Consumer Food Service Food Service Retailer Brokers The Direct Marketing Seafood Chain Powerpoint animation notes: Boxes will drop off and arrows will run to other boxes. 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  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 Powerpoint animation notes: Click to move through each agency’s requirements. 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 talking points. Click 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 (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 second talking points and to exit.

 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 Catcher / Seller Pros & Cons Powerpoint animation notes: Click to move through main talking points.

 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. Tips for Dockside Sales Powerpoint animation notes: Click through talking points and click to exit.

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: Animation will run automatically.

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: Text will scroll on its own. Click to exit.

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

What is a “Direct Market Vessel” DEC regs (18 AAC – 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 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 – 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: Click through each talking point and 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 Juneau, AK Ph. (907) Department of Fish & Game PO Box Juneau, AK Ph. (907) 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., 5 th Floor Anchorage, AK Ph. (907) or Powerpoint animation notes: Text will scroll on its own. Click to exit.

Getting Through the Direct Market Reg Maze Are you selling just your own catch? Not a Direct Marketer Are you only selling off your boat or to a DEC exempt business under AS 18.AAC (b)(D) You need an ADF&G C/S Are you selling product to a processor and then buying it back? You need: No seafood processing permits. Business license Are you maintaining ownership of your product and having it custom processed? You need: ADF&G IO DOR DM FBL Are you selling unprocessed product? Are you selling product that you processed? You need: ADF&G IO DOR DM FBL C/E DEC DM Processing Permit (vessel or shoreside) You need: ADF&G IO C/P DOR DM FBL DEC DM Permit (Vessel or Shorebased) Is your vessel longer than 65 feet? Are you harvesting tuna? 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 Shucker/Packer Permit Powerpoint animation notes: Click through each talking point and to exit.