defining direct marketing

Direct MarketingDirect marketing is selling your own catch to a buyer at a point farther down the distribution chain than a primary processor.

As well 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 dont eliminate the middleman - they become the middleman!

Youre 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; anddeal with all the extras like fish tickets, licenses, permits, and fisheries taxes.

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Direct MarketingGrowerAnd/orHarvesterPrimaryProcessorFurther ProcessorAndManufacturerWholesalerConsumerFoodServiceRetailerBrokersThe Seafood Marketing ChainPowerpoint animation notes: After reviewing, click once.

Direct MarketingGrowerAnd/orHarvesterPrimaryProcessorFurther ProcessorAndManufacturerWholesalerConsumerFoodServiceRetailerBrokersThe Direct Marketing Seafood ChainPowerpoint animation notes: Boxes will drop off and arrows will run to other boxes. Click to exit.

OK Please Bear With UsRevenue wants to tax the fishFisheries Business LicenseDirect Market Fisheries Business LicenseFish & Game wants to count fishIntent to OperateFirst buyerCatcher seller Buyer exporterCatcher processorCatcher exporterSalmon roe recoveryFish Transporter Environmental Conservation food safetySeafood Processing PermitDirect Market Processing PermitDirect Market VesselDirect Market Land-Based Processor Powerpoint animation notes: Click to move through each agencys requirements. Click to exit.

Other AgenciesUS Environmental Protection AgencyIf 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 ServiceFederal Processing Permit needed if youre catching groundfish harvested in federal waters.Food and Drug Administration Powerpoint animation notes: Click to move through each agencys requirements. Click to exit.

Types of Direct Market OperationsCatcher-SellerDirect Market Fisheries BusinessCatcher Exporter Catcher-Processor

Catcher SellerThe most basic direct marketing option

Limited to the following activitiesSelling your own unprocessed catch at dockside off your vessel to the public (not for resale); orSelling to restaurants, grocery stores or fish markets holding a valid DEC processing waiverSelling bait for commercial harvesting

Permits RequiredYou must be a licensed commercial fisherman holding a valid limited entry or interim use permitYou must have a valid Catcher Seller permit issued by ADF&G (there is no cost for this permit)

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Catcher / Seller - TerminologyWhat 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 31.200(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.

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Pros retail pricesno processing permit neededfits existing fishing operationsminimal start-up costs

Cons markets usually limitedlost fishing timehard to sell all species & gradesmay conflict with processor relationships

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

Moor in an accessible spotClear signs and directionsKeep boat shipshape & cleanNo pets (or rambunctious kids) Covered sales areaChange have enough, keep it handyPackaging Be a Good Scout helpful, courteous, trustworthy, clean, etc.

Tips for Dockside SalesPowerpoint animation notes: Click through talking points and click to exit.

Direct Market Fisheries Business

A step up from Catcher / SellerMore options / More complexityIf you sell your processed fish in general commerce, or

process your catch in any way

You need a Direct Market Fisheries Business License

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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; andValid Intent to Operate on file with ADF&G no cost;and either aDirect Marketing Vessel Permit from DEC - $325; or aDirect Marketing Shore-based Permit from DEC - $200

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Direct Market - DEC Requirements

Read and understand the regulations yourself. Dont depend on the rumor mill

Develop a working relationship with DEC. They want you to succeed, but their first responsibility is the publics food safety

www.dec.state.ak.us/eh/fss/seafood/seafood.htmwww.seagrant.uaf.edu/bookstore/pubs/ASG-45.html

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.

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What is a Direct Market Vessel

DEC regs (18 AAC 34.500 525) 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 groundsbeyond mile from shoreInspected processing area able to be cleaned & sanitizedApproved marine sanitation device (head) required, along with handwash sink, soap, hand towels, etc.Approved processing water sources requiredHACCP plan required

www.seagrant.uaf.edu/bookstore/pubs/ASG-45.htmlPowerpoint 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 34.700 740) for direct marketers who wanted to process only their own catch onshore

Limited to butchering, roe extraction, freezing & packaging only (doesnt cover smoking, canning, etc.)Inspected processing area able to be cleaned & sanitizedApproved sanitary systems required, inc. handwash sink, soap, hand towels, etc.Approved processing water sources requiredHACCP plan requiredPowerpoint animation notes: Click through each talking point and to exit.

Tips for Direct Market FacilitiesRead & understand regulations Regulations are minimums exceed themSpace as much as you can afford Surfaces - non-porous/stainless metals, food grade plastics Design for easy cleaning & sanitizingBrighter is betterAssure safe water supplyPersonnel hygiene

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OK! So what is a Catcher / Exporter?

Catching and exporting your own fish.An ADF&G designationDoes not provide any exemption from DEC permit requirementsIf you export your own product from Alaska you must have a Direct Market Vessel or Direct Market Shorebased permiteven if the fish is technically unprocessed, i.e live, whole, or dressed head-on


Shellfish

No Direct Marketer category in regulationLicense classifications are: Harvester, Shipper, Repacker, and Shucker / PackerConsult with DEC to determine the precise requirements that apply to your operationFor DEC purposes shellfish means mollusks clams, oysters, whelks, etc. & does not include shrimp or crab.


Custom ProcessingHaving your fish custom processed by a licensed processor can ease your workload as a Direct Marketer.

Butif 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 alternativePowerpoint animation notes: Text will scroll on its own. Click to exit.

Custom Processing SimplifiedSell 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 hassleleaving 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 ApplicationsADF&G and DOR requirements are on a joint form titled:Alaska Fisheries Business License Application and Intent to OperateAvailable at:

Department of Revenue Tax DivisionFisheries Business LicensePO Box 110420Juneau, AK 99811-0420Ph. (907) 465-2320www.tax.state.ak.us/fishDepartment of Fish & GamePO Box 115526Juneau, AK 99811-5526Ph. (907) 465-6131www.cf.adfg.state.ak.usPowerpoint animation notes: Text will scroll on its own. Click to exit.

Direct Market Business License ApplicationsDEC requirements are no longer on a joint form with ADF&G and DORYou must complete the ADECSeafood Processors Permit ApplicationAvailable at:

Department of Environmental ConservationSeafood Permits555 Cordova St., 5th FloorAnchorage, AK 99501Ph. (907) 269-7637 or 7638www.dec.state.ak.us/eh/forms.htmPowerpoint animation notes: Text will scroll on its own. Click to exit.

Getting Through the Direct Market Reg MazeAre you selling just your own catch?Not a Direct MarketerAre you only selling off your boat or to a DEC exempt business under AS 18.AAC 31.200(b)(D)You need an ADF&G C/SAre you selling product to a processor and then buying it back?You need:No seafood processing permits.Business licenseAre you maintaining ownership of your product and having it custom processed?You need:ADF&G IODOR DM FBLAre you selling unprocessed product?Are you selling product that you processed?You need:ADF&G IODOR DM FBL C/EDEC DM Processing Permit (vessel or shoreside)You need:ADF&G IO C/PDOR DM FBLDEC 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/PDOR DM FBLDEC Shucker/Packer Permit Powerpoint animation notes: Click through each talking point and to exit.

*The chief motivation in Direct Marketing is to achieve a better return on the fisheries products you catch. Direct Marketing can be very simple, or quite sophisticated. It may be very local, or involve international commerce. It may, or may not involve processing your own catch.

In other words, Direct Marketing is not easy to categorize.It can include:retailing direct to the end consumer; processing your catch for sale to a secondary processor, retail outlet, or restaurant; having your catch custom processed for resale.

Winter king troller selling to local supermarketDungeness crabber selling off his boatGillnetter selling roe & fish as separate productsPot shrimper freezing & boxing prawns for the sushi tradeFreezer troller producing FAS cohos for export to South 48 or European smokers*Being a fisherman can be quite complicated in and of itself. Becoming a direct market adds new levels of complexity and commitment, and requires new and different sets of skills and knowledge. Youll need to become all those guys you love to hate - processor, salesman, bill collector, paper-pusher! Its a lot of extra work. On the plus side youre in charge of your product and if you are successful - higher earnings.Do You Really Want to Sell Fish? Being frustrated about processor prices is not enough. If you have not developed a positive motivation and genuine interest in being in the marketing business for its own sake, you need to re-evaluate your options.Are You Suited for this Kind of Work? Ask yourself these questions:Am I good a bookkeeping & paperwork?How do I feel about being a salesperson? Do I like dealing with people?Am I good at managing details?Do I need to get paid immediately, or can I wait to get paid?How forceful am I about making people pay, or do what theyve agreed to do?Can I stick to one task, or do I need frequent change? Do I just want to put my boat away at the end of the season and forget about fishing?Is my family supportive of this move and additional commitment?What are the Strengths & Weaknesses of Your Operation? Is your boat big enough to properly handle the product, and the additional equipment you may need for processing. Do you have the space and financing for modifications?Is the timing of your fishery conducive to direct marketing?Do you have markets for all the species, grades and products you produce?Are transportation and handling infrastructure available & reliable?Do you have the necessary financing & cash flow?*This diagram demonstrates the basic seafood market from the harvester through to the end consumer and all the chains in between.

Where the direct marketer wants to sell to is a function of effort and understanding the buyers needs. The direct marketer can sell to any one in the marketing chain.

*This diagram demonstrates the basic seafood market from the harvester through to the end consumer and all the chains in between.

Where the direct marketer wants to sell to is a function of effort and understanding the buyers needs. The direct marketer can sell to any one in the marketing chain.

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defining direct marketing

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