Saving Seafood

Alaska community fishing groups buy pollock assets with Maruha Nichiro

February 3, 2022 — Two Alaska Community Development Quota groups partnered with Japanese-owned Maruha Nichiro in the purchase of inshore pollock quota, vessels and processing capacity from Evening Star Fisheries and Cooke-owned Icicle Seafoods.

On Feb. 1, Alaska’s Norton Sound Economic Development Corp. and Coastal Villages Region Fund announced an expansion of their partnership with Maruha Nichiro to catch and process Bering Sea pollock quota.

The Coastal Villages Region Fund and Norton Sound Economic Development Corp. investment accounts for 75 percent ownership of the fishing assets, while Maruha Capital Investment is a 25 percent stakeholder (a limitation on foreign ownership of fishing vessels or companies that own fishing vessels, stipulated by the American Fisheries Act). That purchase includes nine fishing vessels from Evening Star Fisheries and four percent of Bering Sea pollock quota. The fleet, which includes the recently rebuilt F/V Progress, can operate in both the Bering Sea and Gulf of Alaska.

Read the full story at National Fisherman

Ocean Beauty Seafoods and Icicle Seafoods Announce Merger

May 29, 2020 — The following was released by Ocean Beauty Seafoods and Icicle Seafoods:

Two of Alaska’s oldest and largest seafood companies, Ocean Beauty Seafoods LLC and Icicle Seafoods, Inc., announced today that they are merging their wild salmon and Gulf of Alaska groundfish operations. The new company will be named OBI Seafoods LLC.

“The Alaska salmon business is experiencing significant market and resource fluctuations. In order to flourish in this rapidly changing environment, we need to develop flexible and efficient business models and form innovative partnerships,” said Mark Palmer, President and CEO of Ocean Beauty Seafoods, who will serve as CEO of the newly merged company. “The merger will enable more focus on selling seafood products in the global marketplace by leveraging both strong sales teams. Increased sales will bring additional investment to support growth and jobs,” he added.

The agreement will allow the new partnership to make strategic investments to enhance its ability to compete in the world seafood market. Initial plans include modernizing processing facilities and combining marketing and value-added product expertise. The changes are designed to grow the value of the Alaska seafood resource in a way that benefits the company’s customers, employees, and fisherman partners.

Included in the merger are all five Icicle shoreside plants and all five Ocean Beauty shoreside plants in Alaska. Ocean Beauty Seafoods’ smoked salmon and distribution operations will remain under its current ownership and will operate under the name OBS Smoked & Distribution, LLC. The Ocean Beauty and Icicle Seafoods Gulf of Alaska groundfish operations and all salmon operations will operate under the newly formed OBI. Icicle Seafoods’ processing operations on the P/V Gordon Jensen and the permanently moored craft Northern Victor in Dutch Harbor are not included in the merger. These plants will continue to operate in the Bering Sea, Aleutian Islands, and Western Gulf of Alaska groundfish fisheries, and will operate under Icicle Seafoods, Inc.

“The two companies’ cultures will blend well,” Palmer said. “We will be combining two very talented workforces that are highly motivated to compete successfully in today’s challenging market. This merger also presents the best opportunity for the new company to optimize our branded value-added seafood and make strategic long-term investments.”

John Woodruff, Chief Operating Officer of Icicle Seafoods, will become Executive Vice President of Alaska Operations for the new company. A respected Alaska fishing industry leader, he has built deep relationships across the state.

According to Mr. Woodruff, “Partnerships can provide employees with additional career growth opportunities in a wider variety of positions and locations.  As a unified team, we are confident we can make improvements to benefit employees, fishermen, customers and vendors. To be more competitive globally, operational efficiencies in processing must be realized, along with continuing strong fleet relationships and placing an added focus on sales, marketing and distribution.”

Founded in 1910, Ocean Beauty Seafoods LLC is owned by the Bristol Bay Economic Development Corporation and a group of individual owners with experience in the seafood industry. Founded in 1965, Icicle Seafoods, Inc. has been owned by the Cooke family since 2016. Upon close of the merger transaction, Icicle Seafoods, Inc. and Ocean Beauty Seafoods Inc. will each own a 50% stake in the new company. The merger will take effect on June 1, 2020, in line with the 2020 wild Alaska salmon season.

America’s Fishing Industry Appeals for Help During COVID-19 Shutdown

March 26, 2020 — The leaders of America’s domestic fishing industry have appealed to the Trump administration for help with the severe economic hardship created by the coronavirus epidemic. With consumers stuck at home and restaurants closed, the $100 billion-per-year demand for U.S. fishery products has evaporated overnight, according to the coalition – putting tens of thousands of well-paid jobs at risk. The coalition is calling for about $4 billion in federal assistance to maintain the fishery supply chain until the economy is back on its feet.

“Supply chains cannot be turned on and off like a light switch. Once lost, a supply chain and the infrastructure that supports it can be exceptionally difficult and costly to restart. Failure to act boldly now to preserve our country’s domestic seafood infrastructure will impose far greater costs on our economy and cause permanent damage to our nation’s ability to harvest, farm, process, and distribute seafood products,” the group wrote.

Their request includes:

  • Sustained USDA Section 32 funding at current levels, plus $2 billion for additional Section 32 activity supporting the domestically-produced seafood supply chain. The group asks for normal federal contracting rules to be lifted for these expenditures in order to accelerate disbursement. (Section 32 supports the purchase of food commodities, including fish, using customs tariff receipts.)

Read the full story at The Maritime Executive

Icicle, Pacifico nab Whole Foods’ supplier awards

February 26, 2020 — Pacifico Aquaculture, Icicle Seafoods, and Inverawe Smokehouse were among the seafood suppliers honored by Whole Foods Market in its recent annual Supplier Awards.

Whole Foods honored 32 of its suppliers for “their outstanding achievements in 2019 and ongoing commitments to quality, environmental stewardship, organic integrity, innovation, purpose, and partnership,” the Austin, Texas-based retailer said in a press release.

Read the full story at Seafood Source

Commercial fleet highlights economic impact of Sitka Sound herring catch

February 15, 2018 — Despite three days of impassioned testimony before the Board of Fisheries in January, not much has changed for the Sitka Sound sac roe herring fishery, which will ramp up in about a month.

Local subsistence harvesters won an increase in the size of their exclusive use area, but failed to persuade the board to reduce the commercial catch.

Fishermen and processors from Petersburg joined with other commercial interests to remind the board of the economic importance of the annual springtime export.

Commercial fishing representatives at January’s meeting testified in oral and written comments about the economic importance of the annual fishery in Sitka Sound.

Icicle Seafoods processes some of the catch at its Petersburg plant and the company’s John Woodruff talked about the impact to the Petersburg economy.

“Last year, we spent roughly $450,000 just on Sitka herring labor,” Woodruff said. “Most of this stays in Petersburg and it comes at a time when there’s not much other economic activity in town and a half-million bucks might not seem like much but at that time of year for a town like Petersburg, I think it’s impactive.”

Read and listen to the full story at KTOO

 

Cooke Aquaculture Pacific Files Lawsuit to Fight Washington Decision to Cancel Port Angeles Lease

January 9, 2018 — SEAFOOD NEWS — In December Cooke Aquaculture Pacific was ordered by the Washington State Department of Natural Resources (DNR) to dismantle their fish pens at Ediz Hook. Now the company is fighting back.

Cooke Aquaculture announced on Friday that they have filed a lawsuit in Clallam County Superior Court against the Department of Natural Resources. The company says that the government organization’s attempt to terminate their lease is “not supported by the facts and will unnecessarily result in the loss of scarce rural jobs.”

As previously reported, state Lands Commissioner Hilary Franz, the elected head of DNR, canceled the aquatic lands lease due to a series of violations. Styrofoam discharges, a defective anchoring system and operating 500 feet outside of the leasehold area were all listed as violations.

“Cooke Aquaculture Pacific acquired the Washington salmon farms when it purchased Icicle Seafoods in 2016,” Joel Richardson, Vice President for Public Relations at Cooke Aquaculture, said in a press release. “The Department of Natural Resources, then led by Commissioner Franz’s predecessor, approved the transfer of those farm leases at that time and raised no concerns or objections to the manner in which Cooke’s predecessor company was managing the leased aquatic area. We can only assume that the recent decision to terminate the Port Angeles lease is based upon misinformation or a misunderstanding of the facts and history related to the site.”

At the time of canceling the lease, Franz said that the decision was non-negotiable and that there is no appeal process in place. However, reps for Cooke say that they hope to meet with Franz to discuss DNR’s decision to terminate the lease and answer any questions that the Commissioner might have about their operations.

“While we regret the need to file suit before meeting with the Commissioner, we are required to do so in order to protect the company’s legal rights,” Richardson said. “Nonetheless, Cooke believes that a fulsome dialogue with DNR, which it regards as a long-standing partner in its recently acquired Washington aquaculture program, can likely resolve any legitimate, substantive factual issues between the parties. If those issues cannot be amicably resolved by dialogue with the Commissioner then we are prepared to assert our legal rights by way of the judicial system.”

This story originally appeared on Seafoodnews.com, a subscription site. It is reprinted with permission.

 

Cooke Inc. Agrees to Acquire Omega Protein Corporation for $22.00 Per Share

Omega Protein’s Stockholders to Receive $22.00 Per Share in Cash

Transaction Valued at Approximately $500 Million

Transaction Represents Key Strategic Addition for the Global Seafood Company

October 6, 2017 — SAINT JOHN, New Brunswick and HOUSTON — The following was released by Cooke Inc. and Omega Protein:

Cooke Inc. (“Cooke”), a New Brunswick company and parent of Cooke Aquaculture Inc., and Omega Protein Corporation (“Omega Protein” or the “Company”), a nutritional product company and a leading integrated provider of specialty oils and specialty protein products, today announced that they have entered into a definitive agreement (the “Merger Agreement”) under which Cooke will acquire all outstanding shares of Omega Protein for $22.00 per share in cash. The transaction price represents a premium of 32.5% to Omega Protein’s closing share price on October 5, 2017. The Merger Agreement has been unanimously approved by the Board of Directors of each of Omega Protein and Cooke.

“We are very pleased to sign this agreement with Omega Protein,” said Glenn Cooke, CEO of Cooke Inc. “Omega Protein will provide us with another platform in Cooke’s growth strategy through further diversification in the supply side of the business. We believe this will be a very good fit between our two cultures. Omega Protein has a 100-year history with an experienced and dedicated workforce, which we value, and a tradition of operating in small, coastal towns and communities that we share. Their focus on sustainable aquaculture and agriculture and the production of healthy food is also a great fit with our experience and culture.”

Cooke carries on the business of finfish aquaculture globally through its wholly-owned subsidiary Cooke Aquaculture Inc. The New Brunswick, Canada based Cooke family also has significant investments in wild fisheries globally through their ownership of Cooke Seafood USA, Inc. and Icicle Seafoods, Inc. Cooke Aquaculture Inc. is an aquaculture corporation founded in Blacks Harbour, New Brunswick, Canada with salmon farming operations in Atlantic Canada (operated by its affiliate, Kelly Cove Salmon Ltd.), the United States (Maine and Washington), Chile and Scotland, as well as seabass and seabream farming operations in Spain. In 2015, Cooke Seafood USA, Inc. was created, and grew rapidly through the acquisitions of Wanchese Fish Company, Inc. in the USA and the assets of Fripur S.A., the largest fishing company in Uruguay. The Cooke family also acquired Icicle Seafoods, Inc. in 2016. The addition of Omega Protein serves as a perfect strategic piece for the Cooke family of companies.

“We are excited about the agreement, which we believe recognizes the value of Omega Protein’s successful, 100-year-old fishing business and also provides stockholders with an immediate premium,” said Bret Scholtes, President and CEO of Omega Protein. “Cooke is a family owned company and in many ways, reminds us a lot of ourselves and this agreement is the perfect fit for the two companies. Cooke is a highly-regarded and responsible leader in the global fishing and seafood industry.”

Read the full release at PR Newswire

Salmon Farming On The Rise In Washington

August 22, 2016 — Human travelers have interstates 5 and 90. Salish Sea salmon have the Juan de Fuca Strait.

It’s the route that they all swim on their way to and from the wide Pacific — the salmon from the Elwha and all the rivers of Puget Sound, plus many salmon returning to Canada’s Fraser River, which are the main local food source for Puget Sound orcas and have always formed the bulk of Puget Sound’s commercial catch.

Now, Icicle Seafoods —  recently acquired by Canada’s Cooke Seafood — wants to raise Atlantic salmon in 9.7 acres of salmon net pens in the strait, just east of Port Angeles, Washington.

Although it has its critics, salmon aquaculture isn’t new in Puget Sound — and certainly not elsewhere. British Columbia aquaculture produces salmon worth nearly half a billion (Canadian) dollars a year. And B.C. is a minnow compared to the salmon-raising industries of Norway (where salmon aquaculture is booming) and Chile (where it’s not.)

Icicle already has eight salmon aquaculture operations in the Sound, including one at Port Angeles tucked in behind Ediz Hook. The company’s plan for putting pens out in the Strait has been driven by U.S. Navy plans to expand its base on Ediz Hook, which won’t physically displace the existing pens but will ruin the neighborhood for salmon. Pile driving for the Navy project, scheduled to begin late this year, would actually kill salmon in nearby pens. Icicle has decided to move its operation.

Under Icicle’s planned new development, 14 circular pens, each 126 feet in diameter, would be kept in place by a network of two-to- four-ton steel anchors. The new pens would produce 20 percent more salmon than the old. They would be the first anchored this far offshore in Washington waters.

Read the full story at Oregon Public Broadcasting

Committee Chair Refuses to Advance Alaska Governor’s Fisheries Tax Hike

February 24, 2016 — Commercial fisheries may see taxes increase, but only if other resource industries do, too.

Under a budgetary thundercloud, Gov. Bill Walker is trying to squeeze funding from any source. A commercial fisheries tax bump, part of nine such bills in the Legislature, has slowed to a crawl in committee as fishermen decry it.

Fishermen, and House Fisheries Committee chair Rep. Louise Stutes, R-Kodiak, fear Walker’s tax plan could disproportionately pinpoint the commercial fishing industry while other resource taxes die.

Stutes said during a Feb. 23 committee hearing that she’ll hold the bill in committee until further study.

“I have some reservations about passing this bill out of committee,” said Stutes. “I’ve been seeing a lot of the other resource tax bills faltering. I’m going to hold this in committee until I’m comfortable that the fishing industry is not being singled out. I would like this committee to assimilate and digest what they’ve heard.”

United Fishermen of Alaska, the state’s largest fishing industry group, brooked little opposition to the bill during a February meeting, but cracks appeared once Stutes opened the committee to public comment. The committee heard from fisherman that the tax plan seemed poorly thought out.

Richie Davis, a representative for the Seafood Producers Cooperative, said the tax bump is proof that either the Walker’s administration doesn’t fully grasp the social and economic aspects of the fishing industry, or “or somebody is using Alaska’s fiscal crisis as a springboard to cripple our industry.”

1 percent across the board

House Bill 251 would levy a 1 percent increase on commercial fisheries taxes. Current rates range from 1 percent to 5 percent, depending on the category.

Comment from two separate hearings on Feb. 18 and Feb. 23 called the tax plan too simple, too rushed, and too ignorant of the other resource taxes in the state. A 1 percent across-the-board raise, fishermen said, ignores the industry’s nuances and unique challenges.

The fisheries tax schedule is one of the more complex in Alaska tax code. The fisheries business tax and fisheries resource landings tax sprawl across different categories and sectors.

The state levies a fishery business tax and a fisheries resource landing tax, which distinguish between established fisheries and developing fisheries, each with different rates for floating processors, salmon canneries, and shore based processors.

The 1 percent tax rate increase doesn’t make enough distinctions, industry said.

“The approach HB 251 takes is quite frankly oversimplified,” said Vince O’Shea, vice president of Pacific Seafood Processors Association.

O’Shea, along with Icicle Seafoods representative Kris Norosz, pointed out that a 1 percent increase could conceivably work for some sectors but would stress salmon canneries, which are glutted with oversupply and having trouble profiting at the current 4.5 percent cannery rate.

“There hasn’t been quite enough analysis on the proposed action,” said Norosz. “I’m not quite sure how we got to this.”

Ken Alper, director of the state’s Department of Revenue Tax Division, said the 1 percent tax rate bump aims to bridge the gap between the state’s spending on fisheries management and its revenue.

Read the full story at the Alaska Journal of Commerce