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Innovating the Business of Seafood for Communities & Health

Dune Lankard. Photo courtesy of Eyak Preservation Council

By Amanda Nagai

Certifications and barcode trackers can help shoppers identify seafood at the fish counter, but for consumers who really want to know what they’re eating, the real key may be genuine relationships with the people who hauled in the catch. From Alaska to San Francisco to Boston, conservationist Native Americans, seafood entrepreneurs, and nonprofit organizers are developing ways to safeguard consumers and empower fishing communities by fostering such direct connections.

The first goal is to reduce fraud, which is rampant in seafood markets, costing consumers money (by paying more for lower-quality products) and endangering their health (by mislabeling species that may contain high levels of mercury).

A 2012 study by the international nonprofit Oceana found king mackerel and tilefish labeled as “safer” species, despite FDA warning they should be avoided by mothers and young children due to high levels of mercury. One-third of the 1,200 DNA-tested seafood samples in the study were fraudulently labeled.

Dune Lankard, a native Eyak tribe member and founder of the Copper River Wild Salmon Company in Cordova, Alaska, says the key to eliminating fraud is “creating the new business economy.” He believes relationships–between harvester and customer, fisherman and nature–are as valuable as the products being bought, and can provide consumers with true trust and traceability and ensure responsible stewardship of natural resources.

His Copper River Wild Salmon Company plans to work with 50 trusted fishermen, trained in best catch and on-boat storage practices (or, about 10 percent of the total Copper River fleet).  Through fishermen profiles on the company’s website, consumers will be able to see who their wild salmon purchases are supporting.

Lankard has developed plans that combine this for-profit venture with plans for a nonprofit LEED-certified community processing and cold-storage facility in Cordova. He anticipates it would process around 10 million pounds of the Copper River Wild Salmon Company’s salmon per year. The plan, which won third place in the 2007 Alaskan Marketplace Competition, calls for opening the facility to the community at an affordable rate by using the company’s bulk processing to bring down equipment costs.

He is currently negotiating for a facility and hopes to purchase and begin upgrades in 2014. The nonprofit facility would give the local community economic and physical control over the processing, labeling, and distribution of its high-value Copper River wild salmon, which retails for a higher price than other Alaskan salmon (this year’s price for Copper River sockeye: $23 per pound). More than two million fish, or almost 13 million pounds of Copper River salmon, were harvested last year. However, 80 percent of the salmon labeled “Copper River” doesn’t come from the watershed, says Lankard.

Such a facility would allow artisanal, multigenerational fishermen to catch less fish but generate more income by using higher quality, sustainable methods. Currently, as with fishing ports nationwide, artisanal fishermen are beholden to dockside processors who in most cases are the only buyer for their highly perishable catch and can dictate prices. Fishermen usually don’t know what price they will receive for their catch at the time of offloading, so can’t plan their catch quantity or schedule.

What’s the Name of the Boat?

Niaz Dorry, coordinating director of the nonprofit Northwest Atlantic Marine Alliance (NAMA), says a hospital she advises was shocked when they investigated the source of their “sustainable fish.” The fish delivered to the hospital was considered biologically “sustainable” based on wild stock levels, but were harvested in massive numbers.

“By-catch” of non-targeted species were killed and wastefully discarded in the process. The large factory trawlers scraped the ocean floor, damaging habitats in the Bering Sea. Harvested fish were sent to China, processed, and then back across the U.S. to the East Coast–an enormous and unnecessary carbon footprint. The hospital cancelled its purchases.

Dorry says the most important question to ask a distributor about your seafood purchases is: “What is the name of the boat that caught this fish?” If the distributor cannot answer that question, she says, then it has no ability to trace and verify the catch.

NAMA works with hospitals to purchase seafood that is truly sustainable, measured not only by stock level and harvest technique, but also working conditions and carbon footprint. The hospitals, including Beth Israel Deaconess Medical Center, Boston Children’s Hospital, and Boston Medical Center, and Vermont’s Fletcher Allen, also want their purchases to positively impact the health of their communities and local economies.

With its strong connections to local artisanal fishermen, NAMA helps to connect these hospitals’ purchasing departments and distributors with local-sourcing options and designs programs that give hospital staff and community affordable access to sustainable, local, dayboat fish.

For instance, NAMA assisted most of its partner hospitals in setting up a Community Supported Fisheries (CSF) program, a variation on the popular Community Supported Agriculture (CSA) farm-to-consumer model. The hospitals also run Community Health Centers, many in Boston’s low-income neighborhoods, and have been operating farmers’ markets, as a way to support their communities’ access to fresh, healthy food.

In 2012, NAMA helped facilitate a pilot seafood vendor program in farmers’ markets. Each vendor was screened for sustainability, sourcing, and price points that are both fair to fishermen and affordable for these low-income communities.

Through these fish vendor and hospital programs, Boston and NAMA hope to revitalize the local, fresh, dayboat fish market and broaden the palates of Bostonians beyond the usual fare. At least one item in the vendors’ inventory must be priced “affordably,” as determined by each community center market manager, according to Edith Murnane, Boston’s Director of Food Initiatives.

Part of the success of the program is the availability of species recognized by neighborhood residents, such as scup, which resembles a red fish popular in the Caribbean.

“This work enables the fishing industry to revitalize fishing communities and introduces a wider range of fish to consumers and in restaurants,” Murnane says.

Waiting for Educated Consumers? 

The San Francisco company i love blue sea has created a logistics system that drop-ships fresh seafood overnight from docks to customers’ doors. Consumers can browse the catches of individual fishermen in 13 domestic ports, from Morro Bay, California, to Milbridge, Maine, to Montegut, Louisiana.

Since the company launched four years ago, it has increased profits for its fishermen by giving them more control over pricing and catch volumes, and generated tens of thousands of dollars in orders per month.

But that hasn’t been enough to sustain the company. To stay afloat, the company is focusing on sales of their proprietary shipping logistics software, which ensures that overnight shipments of perishable goods are not lost or delayed.

“Sustainable seafood is a little ahead of the curve with consumers,” says founder Martin Reed. “It’s sort of a waiting game until enough consumers catch up.”

Amanda Nagai is an Impact IQ reporter (www.impactiq.org), where she covers stories of interest to the impact investment community. She has been an analyst and communications specialist for several government agencies, and has created original content for Fair Food Network, Social Capital Markets, Pioneers Post, Next Billion and other publications. With a particular interest in impact surrounding food production and distribution, she studied aquaponics at the University of the Virgin Islands, food system reform at the University of Vermont, and received her bachelors from Brown University.

Editor’s Note: This article from Impact IQ is part of a series on Oceans and Sustainable Fisheries, produced  in association with SOCAP 13, the Social Capital Markets conference that was held in San Francisco in September. 

Comments

  1. Devlin
    Prince Rupert, BC
    November 15, 2013, 12:06 am

    Another tool to help consumers learn about the journey and story of their seafood is ThisFish (thisfish.info) – in which harvesters play a key role in the system. You can connect directly to the fisherman who caught your dinner and trace the catch from boat to plate.