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 October 16, 2019 | GAPP Overview & Discussion 2
There’s never been a better time for Wild Alaska Pollock! 3 October 16, 2019 | Groundfish Forum 2019
4 October 16, 2019 | GAPP Overview & Discussion 2018: WAP Industry leadership unites to redouble efforts and creates standalone GAPP.
GAPP Mission Defined in 2019 Strategic Plan Build Awareness of WAP/Increase Demand for the Fish Encourage new channels and value- Build inherent customer loyalty added product innovations for WAP Wild Alaska Pollock Brand, Presence & Recognition October 16, 2019 | Groundfish Forum 2019 5
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 October 16, 2019 | Groundfish Forum 2019 6
Following the Trade War Between U.S. and China has been a Substantial Burden on Companies October 16, 2019 | Groundfish Forum 2019 7
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 on 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 one 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. October 16, 2019 | Groundfish Forum 2019 8
U.S. Imports of All Seafood Products from China are Down 22.6% through July Metric tons 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 2018 2019 October 16, 2019 | Groundfish Forum 2019 9
U.S. Imports of Frozen Tilapia Fillets from China are Down 10.4% Through July Metric tons 25000 20000 15000 10000 5000 0 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 2018 2019 October 16, 2019 | Groundfish Forum 2019 10
Conversely, U.S. Imports of Pollock products from China are up 39.2% through July 4500 Metric tons 4000 3500 3000 2500 2000 1500 1000 500 0 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 2018 2019 October 16, 2019 | Groundfish Forum 2019 11
U.S. Exports of All Seafood Products to China are Down 12.3% through July 50000 Metric Tons 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 2018 2019 October 16, 2019 | Groundfish Forum 2019 12
U.S. Exports of All Wild Alaska Pollock Products to China are Down 15.3% through July 14000 12000 10000 8000 6000 4000 2000 0 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 2018 2019 October 16, 2019 | Groundfish Forum 2019 13
The decline in exports is attributable to reduced Headed and Gutted and Surimi exports Metric tons 25,000 21,358 20,000 16,247 15,000 8,234 10,000 6,803 2,711 5,000 1,827 108 144 314 139 0 Headed and Gutted Frozen Fillets Surimi Roe Minced 2018 2019 October 16, 2019 | Groundfish Forum 2019 14
U.S. Wild Alaska Pollock Production (2019 through October 5) Metric tons 250,000 207,344 206,300 193,452 200,000 150,000 126,079 118,721 109,819 100,000 58,774 58,089 56,721 50,000 27,921 21,394 20,196 0 Surimi PBO DSAP Minced 2017 2018 2019 October 16, 2019 | Groundfish Forum 2019 15
Fillet production through October 5 is already most in last 14 years All Fillets 200 188.2 183.3 179.2 176.4 176 173.8 172.2 180 170.7 170.2 166.3 152.3 160 140 121.8 117.8 111.4 120 100 80 60 40 20 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 All Fillets October 16, 2019 | GAPP Overview & Discussion 16
Surimi production in 2019 will likely end up close to last five year average Thousands of mt 250 207.3 206.3 204.2 202.4 193.4 200 183.6 178.5 170.3 167 161.6 148.1 150 125.7 103.6 100 87.1 50 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 All Fillets October 16, 2019 | GAPP Overview & Discussion 17
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 October 16, 2019 | Groundfish Forum 2019 19
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! October 16, 2019 | Groundfish Forum 2019 20
First Ever: Wild Alaska Pollock Annual Meeting! October 16, 2019 | Groundfish Forum 2019 21
Thank You!
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