Sales/Marketing Update From Jeff Reynolds

Dear SPC owners,

Joe Morelli, SPC’s Pres/CEO sent out an email last week indicating that the Co-Operator will no longer be a communication tool that staff will be using. In its place, the staff will be communicating with the membership on various frequencies throughout the year. I am going to try and get out a market/sales update twice a month. I will try and keep it brief and succinct. If you have specific topics you would like me to comment on, please feel free to email me and let me know. I will do my best to accommodate your request.

As typically happens, October and November were big sales months. These big sales months are driven primarily because of the large amount of salmon fillets that move out this time of year. We have little king and coho inventory left, as most of it has either sold or is committed to ship our in the next month or so. I don’t expect much carry-over of king and coho going into next year. The majority of our troll coho is marketed in the USA or Europe. King sale prices have been high this year due to the small amount caught. Unfortunately, the customers are really pushing back due to higher prices. One of our long-time east-coast king customers said that because the prices were so high, they were having trouble moving the fish to their customers. The result was that they probably won’t be a troll king salmon buyer next year.

Chums sales were going great until mid-November. Interest in chums has slowed down. I expect chum sales to pick back up in January after customers go through their stock from the Holiday season. We got decent prices from our chum green roe, but not as high as I initially expected. There was a huge pink harvest in Russia this year and all of that roe flooded the roe markets and prices tumbled. We were lucky to sell them when we did because green roe prices tumbled shortly after we made our deal.

SPC had good opportunity to sell black cod outside our traditional markets. Japan, which has been a traditionally strong market for our U/5# fish has been lackluster at best this year. They continue to move their inventories slowly so are not very aggressive in looking for additional product. We will see if that changes in the new year, but I have my doubts. 7/up sizes are relatively short so they are all sold out. The 5/7 sizes have been a bit more problematic to move for the black cod industry. SPC does have some unsold inventories but I don’t see them as a big issue. I expect to move them out by the beginning of the new season. It appears that the 2019 black cod quota will be very similar to the 2018 numbers.

Our FAS salmon inventories are relatively low this year due to the low number of deliveries. We are getting good prices. Because of the lack of coho, I expect our FAS cohos to sell out relatively fast. King prices are high, and FAS king prices are higher so it takes a special customer to buy that product. We are working at building new markets for FAS salmon. Our efforts are taking us closer to the consumer.

As we have talked throughout the season, the frozen halibut market has taken a big “hit” due to the availability of the east-coast fresh halibut available on an all-year basis. We are now seeing east-coast frozen halibut competing with our own frozen halibut inventories at very competitive prices. That being said, SPC does not have that much frozen inventory since we moved most of it out fresh—which most of the producers did as well. It appears that all of the 2016 and 2017 frozen inventories held by other producers are close to selling out. Those inventories have been a big factor in keeping frozen halibut prices lower, particularly the 10/20 size fish.

A new member of our sales and marketing staff is Joe Wood. He has taken the job of supply chain manager and replaces Megan.  He is in charge of our inventory, shipping, and logistical items. He was with BCS for 11 years where he did a variety of jobs. He is well versed in managing inventories. He is a great addition.

As Joe Morelli said in his email, SPC has embarked on a new sales program. For lack of a better name we have called is SPC Fisherman Ambassador Program. This is an opportunity for SPC members to sell SPC product and receive a commission for doing so. If you have any questions about this, please feel free to contact me  directly at 360-685-8143. My mobile number is 360-820-0700 and my email is jreynolds@spcsales.com

I wish all of you a Merry Christmas and a Happy New Year.

Regard, Jeff Reynolds