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Direct Marketing
Direct 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.

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

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Direct Marketing
Brokers Retailer

Grower And/or Harvester

Primary Processor

Further Processor And Manufacturer

Wholesaler

Consumer

Food Service

The Seafood Marketing Chain

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Direct Marketing
Brokers Retailer

Grower And/or Harvester

Primary Processor

Further Processor And Manufacturer

Wholesaler

Consumer

Food Service

The Direct Marketing Seafood Chain

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Revenue wants to tax the fish

OK Please Bear With Us

Fisheries Business License Direct Market Fisheries Business License Intent to Operate

Fish & Game wants to count fish

First buyer Catcher seller Buyer exporter Catcher processor Catcher exporter Salmon roe recovery Fish Transporter

Environmental Conservation food safety

Seafood Processing Permit Direct Market Processing Permit

Direct Market Vessel Direct Market Land-Based Processor

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Other Agencies

US Environmental Protection Agency

If 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. Federal Processing Permit needed if youre catching groundfish harvested in federal waters.

National Marine Fisheries Service

Food and Drug Administration

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Types of Direct Market Operations

Catcher-Seller
Direct Market Fisheries Business

Catcher Exporter Catcher-Processor <65 LOA (Direct Market Vessel) Direct Market Land-Based Processor Using Custom Processor

Shellfish Shipper

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Catcher Seller

The most basic direct marketing option

Limited to the following activities

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

Permits Required

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

Catcher / Seller Terminology

What does unprocessed mean?

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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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Catcher / Seller Pros & Cons

Pros

retail prices no processing permit needed fits existing fishing operations minimal start-up costs

Cons

markets usually limited lost fishing time hard to sell all species & grades may conflict with processor relationships

Tips for Dockside Sales

Moor

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in an accessible spot

Clear
Keep No

signs and directions

boat shipshape & clean

pets (or rambunctious kids)

Covered
Change

sales area
have enough, keep it handy

Packaging

Be

a Good Scout helpful, courteous, trustworthy, clean, etc.

Direct Market Fisheries Business

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A step up from Catcher / Seller More options / More complexity If you sell your processed fish in general commerce, or process your catch in any way You need a Direct Market Fisheries Business License

Direct Market Fisheries Business

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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; and Valid Intent to Operate on file with ADF&G no cost; and either a Direct Marketing Vessel Permit from DEC - $325; or a

Direct Marketing Shore-based Permit from DEC - $200

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Direct Market - DEC Requirements

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.
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.htm www.seagrant.uaf.edu/bookstore/pubs/ASG-45.html

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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 shore Inspected processing area able to be cleaned & sanitized Approved marine sanitation device (head) required, along with handwash sink, soap, hand towels, etc. Approved processing water sources required HACCP plan required
www.seagrant.uaf.edu/bookstore/pubs/ASG-45.html

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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 & sanitized Approved sanitary systems required, inc. handwash sink, soap, hand towels, etc.

Approved processing water sources required

HACCP plan required

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Tips for Direct Market Facilities

Read & understand regulations Regulations are minimums exceed them Space as much as you can afford Surfaces - non-porous/stainless metals, food grade plastics Design for easy cleaning & sanitizing Brighter is better

Assure safe water supply

Personnel hygiene

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OK! So what is a Catcher / Exporter?

Catching and exporting your own fish.

An ADF&G designation Does not provide any exemption from DEC permit requirements If 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

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Shellfish

No Direct Marketer category in regulation

License classifications are: Harvester, Shipper, Repacker, and Shucker / Packer

Consult with DEC to determine the precise requirements that apply to your operation
For DEC purposes shellfish means mollusks clams, oysters, whelks, etc. & does not include shrimp or crab.

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Custom Processing
Having 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 alternative

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Custom Processing Simplified

Sell 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.

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Direct Market Business License Applications

ADF&G and DOR requirements are on a joint form titled:

Available at:

Alaska Fisheries Business License Application and Intent to Operate

Department of Revenue Tax Division Fisheries Business License PO Box 110420 Juneau, AK 99811-0420 Ph. (907) 465-2320 www.tax.state.ak.us/fish

Department of Fish & Game PO Box 115526 Juneau, AK 99811-5526 Ph. (907) 465-6131 www.cf.adfg.state.ak.us

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Direct Market Business License Applications

DEC requirements are no longer on a joint form with ADF&G and DOR

You must complete the ADEC

Available at:
Department of Environmental Conservation Seafood Permits 555 Cordova St., 5th Floor Anchorage, AK 99501 Ph. (907) 269-7637 or 7638 www.dec.state.ak.us/eh/forms.htm

Seafood Processors Permit Application

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Getting Through the Direct Market Reg Maze

Is your vessel longer than 65 feet? Are you maintaining ownership of your product and having it custom processed?

Are you harvesting tuna? Are you selling unprocessed product? Are you selling just your own catch? You need: ADF&G IO DOR DM FBL Are you only selling off your boat or to a DEC exempt business under AS 18.AAC 31.200(b)(D) You need: ADF&G IO DOR DM FBL C/E DEC DM Processing Permit (vessel or shoreside)

Not a Direct Marketer

Are you selling product that you processed?

You need an ADF&G C/S

Are you selling product to a processor and then buying it back?

Are you selling clams, mussels, or scallops (not including the shucked scallop abductor muscle)?

You need: No seafood processing permits. Business license

You need: ADF&G IO C/P DOR DM FBL DEC Shucker/Packer Permit

You need: ADF&G IO C/P DOR DM FBL DEC DM Permit (Vessel or Shorebased)