This is Fish Radio. I’m Laine Welch — Following the salmon value chain from boat to throat. More after this …
“We often get asked what share the fisherman retains and how much each segement of the supply chain gets for salmon. The answer depends on the species and the product you are talking about and what gear type .”
Andy Wink is a fisheries economist with the McDowell Group in Juneau. A new report for the Alaska Seafood Marketing Institute tracks the value chain and payouts at ex-vessel for fishermen and first wholesale for processors.
“And within Alaska, that is typically defined as the value of the product as it leaves Alaska.”
“For that reason the fishermen gets a higher percent and in our example, the fisherman got 40% of the final retail value. “
“In this example, a processors are taking on fish in the round , filleting them packaging them, freezing, you’ve got a lot more labor and capital expended. So the processors are adding a lot more value and for that reason, they get a larger share.”
“What we found is the share of first wholesale value paid to fishermen has increased and we attribute that to higher prices for salmon in general. If salmon prices are higher at the wholesale level, processors are going to have more funds to compete for fish. And that’s what we see going on here.”