The Kodiak Daily Mirror is reporting OBI has notified setnetters at Alitak, on the south end of Kodiak Island, it won't be buying salmon there this season.
Deckboss has asked the company for more details on this.
In other news, OBI was a big winner in a recent round of government fish procurement. The U.S. Department of Agriculture on March 6 announced it purchased $54 million in canned pink salmon and $14.4 million in canned red salmon from OBI.
OBI was created in 2020 through a merger of Ocean Beauty and Icicle.
15 comments:
You failed to report the most important puzzle piece — the price! At $47/case sales price, OBI is loosing money and their fishermen will see lower dock prices in 2024. This is all about short-term cash flow for OBI so they can pay their immediate past due accounts.
OBI is in a bad way. I'd be worried if they could pay my fish tickets in the Bay. Switching markets to a more stable AGS.
PPSF apparently in the same situation.
Exactly 5:17, Pattison never sells to the USDA. Only losers go into that market. This all started going downhill when BBEDC bought Ocean Beauty, and Cooke bought Icicle. Do they eat pinks in the Ukraine and Gaza? Sounds like you're paying for a new dock in Gaza, and they're hungry.
I never believe a published price on social media. If this is the price, OBI shouldn't be giving the product away. There are marketing opportunities to sell salmon! This is corporate laziness. The fisherman needs to get more engaged in the marketing.
They said it in the marketing meeting a few months back. The processors are going to dump their old pack at a loss and hope to make it back by paying lower dock prices in 2024 and 2025.
OBI is cursed with leadership issues and a sales team that is a little smug. Showcasing at the Boston show as if there is no fire sale happening.
Public information is not secret, 1:44 a.m. When the government buys fish cheap, it's published.
I know national security issues always confuse you Democrats, but exactly why is Biden not being prosecuted for losing his mind, with secret documents in his garage?
The fishermen need to get more engaged in marketing?
You obviously haven't fished very long. When Libby, McNeill ran those TV ads for canned products back in the last century, the '70s, that jingle was not figured out by ignorant fishermen. "When it says Libby, Libby, Libby on the label, label, label, you will like it, like it, like it on your table, table, table!"
I suppose you also think that the Boeing employees should get involved in Marketing the 737 in Renton. Nice idea, but now that the No. 3 quality airplane is back under another USDOJ criminal investigation for violating probation, their tin cans that open up all by themselves are like the botulism cans in pink salmon back in the '80s, for the high-quality marketing program the seiners do so well at.
Airbus loves you liberal idiots!
Biden had to store them in his garage because unlike Trump his bathroom wasn't big enough.
But seriously, some of these companies like OBI and PPSF seem to be stressed financially. So, if you fish for them, it would be reasonable to ask for a semiweekly bank transfer for, say, 90 percent of your account balance. It might require a little more work on their part, but at the moment the fish ticket is written, it's your money.
Read the bid. OBI sold for $48. Well below cost of production. That says it all.
So then 11:02, when you fish for zero, and get your price after the season ends, how much is 90% of zero?
I always like going to the store and discussing taking the product home at the checkout stand, and telling them I'll decide what I'll pay for it after I eat it.
They always give me the look like I'm a retard. Ever been to Alaska's Bristol Bay?
SBS has fishermen/women shareholders and management. I guess I'd trust them on an open ticket unless and until they crossed me. But the other buyers, not so much so.
In response to our inquiry, OBI notes that its Alitak plant has not processed fish for the past couple of years.
Regarding the upcoming season, the company provided the following statement from CEO John Hanrahan:
"Given the current market conditions and poor salmon forecast, we won't be able to offer tendering service to a group of setnetters located in a remote location on the south end of Kodiak Island. We have let them know and are open to helping them evaluate other options for getting their fish to market."
OBI and PPSF buy fish throughout Alaska. Only in Bristol Bay has the open ticket or 5-cent advance been used throughout most of the season...sometimes. If you fish elsewhere, there is usually a price, not just for salmon but for cod and pollock in the Gulf. It is not unreasonable to ask for bank transfers throughout the season if you suspect your buyers may have cash flow problems.
If, like 2:07, you are in Bristol Bay, realize that zero or 5 cents is not a reasonable advance price. We know that buyers do not have final prices from export buyers, but a good portion of Bay product does go into fillets now and cans. The canned market for reds has some stability. So it's up to you to demand a reasonable advance. But if you just roll over and say "OK, we trust you," then look out. You know the final price might still be low if the run is big, but at least the money will be in your bank.
OBI receives $68.4 million from USDA and still has every fleet member spooked on liquidity. I'd say Mark Palmer got out at the correct time. Will Cooke or BBEDC look to exit soon?
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