Wild Alaska Pollock Industry Update October 16, 2019 Presentation - - PowerPoint PPT Presentation

Wild Alaska Pollock Industry Update

October 16, 2019

Presentation

• 1. GAPP History & Structure
• 2. Impacts of U.S. – China trade war
• 3. Changes in primary product production
• 4. Partnership Programs & Announcement

2 October 16, 2019 | GAPP Overview & Discussion

3 October 16, 2019 | Groundfish Forum 2019

There’s never been a better time for Wild Alaska Pollock!

2018: WAP Industry leadership unites to redouble efforts and creates standalone GAPP.

October 16, 2019 | GAPP Overview & Discussion

4

GAPP Mission Defined in 2019 Strategic Plan

5 October 16, 2019 | Groundfish Forum 2019

Build Awareness of WAP/Increase Demand for the Fish

Encourage new channels and value- added product innovations Wild Alaska Pollock Brand, Presence & Recognition Build inherent customer loyalty for WAP

Current GAPP Priorities

• Wild Alaska Pollock Narrative Development
• New GAPP Website & Social Media Strategy
• Communications Toolkits
• GAPP Partnership Programs
• Foreign Market Research & Strategy Development
• Japan Consumer Study
• European Stakeholder Analysis
• Comprehensive Life Cycle Assessment
• Member and Associate Member Engagement

6 October 16, 2019 | Groundfish Forum 2019

Following the Trade War Between U.S. and China has been a Substantial Burden

• n Companies

7 October 16, 2019 | Groundfish Forum 2019

Status and Impacts of U.S. China Trade War on U.S. Wild Alaska Pollock Producers

• Tariffs on Pollock products into China increased from 25% to 35% in
• n September 1. U.S. Pollock products that are further processed

and re-exported are excluded.

• China waives tariffs on fish meal made from Wild Alaska Pollock for
• ne year, starting September 17, 2019.
• U.S. removed Pollock and cod fillets from tariff lists early in process,

but Pollock to have 15% tariff effective December 15, 2019.

• U.S. importers started importing frozen Pollock fillets from Vietnam in

October 2018 to avoid U.S. tariffs on Chinese product.

• U.S. Tariffs on competitive products from China (e.g. tilapia) from

25% to 30%, currently delayed but uncertainties remain.

8 October 16, 2019 | Groundfish Forum 2019

U.S. Imports of All Seafood Products from China are Down 22.6% through July

9 October 16, 2019 | Groundfish Forum 2019

10000 20000 30000 40000 50000 60000 70000 80000 90000 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 2018 2019

Metric tons

U.S. Imports of Frozen Tilapia Fillets from China are Down 10.4% Through July

10 October 16, 2019 | Groundfish Forum 2019

5000 10000 15000 20000 25000 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Metric tons

2018 2019

Conversely, U.S. Imports of Pollock products from China are up 39.2% through July

11 October 16, 2019 | Groundfish Forum 2019

500 1000 1500 2000 2500 3000 3500 4000 4500 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 2018 2019

Metric tons

U.S. Exports of All Seafood Products to China are Down 12.3% through July

12 October 16, 2019 | Groundfish Forum 2019

5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 2018 2019

Metric Tons

U.S. Exports of All Wild Alaska Pollock Products to China are Down 15.3% through July

13 October 16, 2019 | Groundfish Forum 2019

2000 4000 6000 8000 10000 12000 14000 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 2018 2019

The decline in exports is attributable to reduced Headed and Gutted and Surimi exports

21,358 6,803 2,711 314 139 16,247 8,234 1,827 108 144 5,000 10,000 15,000 20,000 25,000 Headed and Gutted Frozen Fillets Surimi Roe Minced

Metric tons

2018 2019

14 October 16, 2019 | Groundfish Forum 2019

U.S. Wild Alaska Pollock Production (2019 through October 5)

15 October 16, 2019 | Groundfish Forum 2019

207,344 109,819 58,774 27,921 206,300 118,721 56,721 21,394 193,452 126,079 58,089 20,196 50,000 100,000 150,000 200,000 250,000 Surimi PBO DSAP Minced

Metric tons

2017 2018 2019

Fillet production through October 5 is already most in last 14 years

170.2 170.7 121.8 117.8 111.4 166.3 152.3 176.4 183.3 176 173.8 172.2 179.2 188.2 20 40 60 80 100 120 140 160 180 200 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

All Fillets

All Fillets

16 October 16, 2019 | GAPP Overview & Discussion

Surimi production in 2019 will likely end up close to last five year average

178.5 161.6 125.7 87.1 103.6 148.1 167 170.3 183.6 202.4 204.2 207.3 206.3 193.4 50 100 150 200 250 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Thousands of mt

All Fillets

17 October 16, 2019 | GAPP Overview & Discussion

Significant Growth in U.S. Government Purchases of Wild Alaska Pollock

October 16, 2019 | GAPP Overview & Discussion

18

Successful North American Partnerships: New Channels, New Consumers

19 October 16, 2019 | Groundfish Forum 2019

Introducing: European Partnership Program 2020

• Investment into bringing Wild Alaska Pollock to NEW

CHANNELS and NEW CONSUMERS in European market;

• ALL PRODUCT FORMS will be considered: Fillet, Surimi, Roe,

Meal and Oil;

• Applications due March 15, 2020.

GAPP wants to be your partner!

20 October 16, 2019 | Groundfish Forum 2019

First Ever: Wild Alaska Pollock Annual Meeting!

21 October 16, 2019 | Groundfish Forum 2019

Thank You!