by actionalaska » Mon Aug 06, 2012 8:07 pm
Maybe it's time for a study of past strikes in similar fields like mining, farming etc to see what the strikers faced as far as pressure from the wholesalers that caused the strike to be ineffective.
I'm also wondering about extrapolating profit margins from different buyers based on ex-vessel prices vs. retail market prices. There might be more to it than the price of a whole fish per pound at Pike Place in seattle. Who owns the fish retail counter at pike place in Seattle? How much of the summer iced king ends up in freezers waiting for the market demand to support a sale of that fish? Which wholesaler supplies Costco's seafood? what percentage of frozen iced fish is sold to restaurants vs retail raw fish sales? How much ends up being value added product like smoked, canned, jerky etc.? What does the domestic market demand support as far as volume of fresh unfrozen retail king salmon? Why does halibut offloaded in Dutch Harbor bring the same price per pound as Halibut offloaded in Sitka, AK when Sitka is vastly closer to the domestic market? Why are gillnet dogs worth about the same as troll dogs? Why are seined pinks worth just as much as gutted, gilled, bled ocean bright pinks? I think that knowledge about the market, the supply chain, the supply cycle, the retailers that are purchasing product from the wholesalers,the market demand based on season, (international holidays, religious holidays, summer demand vs. winter demand etc.) and cost associated with moving product to retail markets from different locations are the types of things that need to be understood completely before a strike will be effective. There needs to be a realistic goal of ex-vessel price increase based on all these factors. Essentially, the striking force needs to know when to stop squeezing, and in what areas the market supports room for the ex-vessel price to improve for fishermen. Essentially, the strike needs to have a realistic goal of a price move so that there is a goal that is realistic to both sides of the battle. The processors and shipping companies are also buying expensive fuel, and paying expensive insurance premiums, paying workers by the hour is expensive. Maintaining a processing plant can't be cheap. But there are certainly things that are "off" in the industry, like how halibut is worth the same at the dock in Dutch as it is in Ketchikan. With that said I think there is plenty of room for a higher ex-vessel price on fresh troll caught king salmon, but exactly how much room, and what would a price that is good in both FT. Bragg and in Yakutat be? Why settle for $4.00 with all the work and dedication that a task like this would take, when the market would support something like $10.00 for summer kings. What if the most the market would support is only $5.00. What if because of shipping the market supports $10.00 in FT. Bragg, but only $5.00 in yakutat. Would the guys in FT. Bragg be willing to give $2.50/lb to the guys in Yakuktat so that everyone can sell at the same rate because the guys in Yakutat stood by the strike when the mortgage was due, the credit card companies were calling, and the fridge was empty same as the guys in Ft. Bragg? What if cost averaging was already happening by companies like Ocean Beauty, North Pacific Seafoods etc. with different labels on their operations to bring the ex-vessel dock price in multiple locations close to the same rate? Like in sitka there is SSS that is North Pacific Seafoods, which has plants all around the pacific under other labels. Would the entire Pacific troll fleet be willing to strike and risk losing everything they have worked for for their entire careers, boat, home, lifestyle, permits, and put your family through the kind of stress a strike would cause over an insignificant price jump across the board. What if the troll fleet would end up getting less in northern ports, and more in southern ports because of shipping costs? valid things to be considered if a strike is going to be effective. We all have a horse in the race, but knowing how far the finish line is going to be is a handy piece of info to have to know how fast to run the race.
Knowledge is power in a situation like this, and education about the market and the whole situation doesn't come quickly, I can guarantee you that the processors aren't interested in opening up their books and letting the golden goose (if there is one) out of the pen by revealing what the margins are in every market on every species, but that's what's needed to make a movement like this effective.