Gov. Sean Parnell just announced the U.S. Department of Agriculture has granted his request to buy surplus canned Alaska pink salmon.
"The purchase of Alaska's canned salmon achieves several goals: It corrects the inventory surplus, helps Alaska's fishing families, and provides high-quality nutrition for food and assistance programs," Parnell said. "Alaska's bounty of pink salmon will provide delicious and nourishing meals for hundreds of thousands of American families. I appreciate the effort of Sen. Lisa Murkowski to make this purchase possible, which will benefit Alaska's families."
Seiners be in the cheese line next.
ReplyDeleteyeah, like parnell really had anything to do with that.
ReplyDeleteIsn't this considered federal government overreach? What a shame (sarcasm)
ReplyDeleteWait a minute. The gov doesn't have anything to do with the sale. That is the salmon guy from Kodiak who sells fish for the state. That's pretty chicken do do Sean. Don't try and take credit for something you haven't had anything to do with.
ReplyDeleteIsn't it a bit queer that the ex-vessel price for pinks last season never dipped below .40 per pound, yet the volumes were unprecedented? Normally, the price would adjust accordingly.
ReplyDeleteRegardless of your politics, we're reaching out to government to bail the industry out. Does this represent more, or less, government?
It is a bail out for the traditional canners. The canners very well know that the market for canned pinks is only slightly elastic, In other words it does not respond significantly as shelf prices are lowered. Therefore, why produce so much more than the market can absorb? The answer is that over the years investment has lagged in freezing operations. So the product form that is most marketable in great tonnage is limited by the historic lack of capital committed, or the mis-use of capital if you prefer. Although the canners have made some progress (for example Trident in Ketchikan and Wrangell), they are for the most part under invested in freezing capacity. Hence, they plead for government action to help support their profits.
ReplyDelete"Regardless of your politics, we're reaching out to government to bail the industry out. Does this represent more, or less, government?"
ReplyDeleteUmm, pardon me but that is a stupid question, unless it's a trick question. In which case why not answer it for us?
Not a bail out for the industry but for the industry "elite". But it isn't really a true bail out at all, because none of these processors were going to fold if the government didn't step in. In fact. the lower pink runs this year will bring canned pink inventory back into balance. So what is it then? Well, it really is just adding to the profit the canners made anyway. They play the politicians for fools.
ReplyDeleteyou guys are either high, ignorant or never got past 3rd grade economics. the fish are purchased thru competitive bid and feed us citizens that would be eating chicken or Tuna otherwise. to say it's a bail out is like saying Bumblebee or John West buying a million cases is a bailout. This is simply another customer that is using $$ derived from foreign import duties to pay for it. Without these sales of nearly 1M cases coupled with a lot of 2014 roe with no home ur pink price may not make it to the 28 cents we got!! Oh ya....if you ever cked out the size of the pack last year that was put up to keep us fishing, you'd know that we had enuf canned product to last 3 years if we never can another one!! you better hope that even more can be sold!
ReplyDeleteBumble Bee and John West are not using tax money to make purchases (and if derived from import duties it is still tax money). So it is not the same. The money could be put to better us elsewhere instead of enhancing the profits of the Tridents, OBs, AGS, etc. Over the years, the canners failed to invest and reinvest properly in freezing capacity and so continue to be rooted in the past. As for pink price in 2014, the .28/lb was on the table well before the government buyout/bailout was known. So the answer is yes, we would have gotten the that price anyway.
ReplyDeleteHigh, ignorant, and 3rd grade economics 7:36? Since your such an expert at marketing, too many hatchery fish?
ReplyDeleteLike any 3rd grader knows. The Sky is Falling, and Chicken Little of the Sea says; "May I come with you." says Lucky Ducky "It hit Chicken Little on the head." says Henny Penny...
They find the hole and the rest is history. Foxy Loxy eats em all.
Like that 2% hatchery tax, how many humpies does it take to figure out 215 million is too many?
YOU NEED A REFRESHER in 1st grade economics!
Pink salmon fillets in Albertsons in Seattle are selling for $6.99 a pound today. How does that make you feel!!!
ReplyDeletePink salmon fillets at 6.99 makes me wish the canners had started putting in more freezing capacity years ago. But, when they can get bail outs from the tax payer when canned packs are big, why should they bother? Have to add, however that 6.99 seems a bit rich for pink fillets.
ReplyDelete