Commercial Fishing and Seafood Distribution
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Industry Overview
The US fishing and seafood industry consists of 25,000 commercial fishing vessels; 700 fish processors, and 2,800 distributors, with a final commercial value of $14 billion. Most companies are privately held or are divisions of larger corporations, such as Bumble Bee Seafoods; Del Monte (owns StarKist Foods); and Chicken of the Sea. Most vessels of the US commercial fishing fleet are independently owned. Annual revenue is about $4 billion for commercial fishers, $7 billion for fish processors, and $14 billion for distributors. The industry is highly concentrated at the processing stage and relatively fragmented at the distribution end. The 50 largest processors control about 70 percent of that market segment. The 50 largest distributors control less than 40 percent of that segment.
Competitive Landscape
Consumer demand and changing tastes drive the industry. The profitability of individual operations depends on volume. Small companies can compete effectively with large ones in specialty or local markets. Processing plants that produce fresh and frozen products typically have between 50 and 250 workers and average annual revenue of $160,000 per worker. Canning operations are usually smaller, with fewer than 100 workers, but with higher throughput, about $200,000 of annual revenue per worker.
Products, Operations & Technology
Commercial fishers catch shellfish (shrimp, crab, lobster, clams, and scallops) and finfish. In a recent typical year, total US "landings" were $570 million of shrimp, $380 million of crab, $270 million of lobster, $240 million of pollock, $210 million of salmon, $175 million of scallops, $160 million of clams, $150 million of cod, $115 million of halibut, $100 million each of flounder and menhaden, and $95 million of tuna. The term fishery refers to a particular kind of fish in a particular area; for example, the Alaska pollock fishery.
The operations of a typical fishing boat consist of hiring a crew (usually fewer than 10 people), selecting a fishing area, detecting and catching fish, chilling or icing the catch, selling the catch at dockside, and maintaining equipment. Minimal processing of the catch, such as heading and gutting, may also be done onboard before a ship returns to port. Factory ships have large-scale processing facilities onboard and a crew of 100 or more.
Commercial fishers use various kinds of special boats and equipment (gear). Groundfish like shrimp, flounder, and scallops are caught with trawls or dredges, scooping nets that scrape along the bottom. Crab and lobster are caught with baited traps ("pots") that sit on the bottom. Groundfish like cod and halibut and fish that swim above the bottom ("pelagic" fish) are caught with various types of nets (mainly seine, butterfly, and gill) and lines with baited hooks (troll and long lines).
Fish processing ranges from simple heading and gutting to secondary processing, such as filleting, breading, canning, cooking, or extracting protein. Processing facilities may be on large fishing vessels, but most often are at ports. Facilities usually are highly automated to handle a specific type or similar types of fish, and have to be retooled to process other fish. About 150 canning and 670 fresh and frozen processing plants operate in the US. In a typical year, US processors produce about $1.5 billion of canned seafood products (mainly tuna and salmon); $900 million of fish fillets and steaks; $550 million of breaded shrimp; $300 million of fish sticks and portions; and $500 million of non-edible industrial products, including animal food, fish meal, and fish oil. A large plant may produce and package items for dozens of brand names.
Technology advances in fish-sensing technology and fishing gear help commercial fishers be more efficient and make larger catches. Fish processing is highly automated, relying on special equipment with computerized controls. Specialized cold storage systems on board vessels, at processing facilities, and in transport carriers are important for avoiding spoilage.
