Alaska’s seafood processing sector is undergoing massive upheaval, but Silver Bay Seafoods sees the downturn as an opportunity, according to Abby Fredrick, the company's director of communications and investor relations.
The previous year has been a very difficult one for Alaska’s processing companies due to a downturn in seafood prices and higher costs. Trident Seafoods announced in December 2023 it was selling off a significant portion of its assets in Alaska and trimming its workforce by 10 percent, and Peter Pan Seafoods has faced a series of liens filed by Alaska fishermen and companies for unpaid deliveries of seafood.
While competitors have struggled, Silver Bay has moved to expand its processing footprint in the U.S. state in a big way via acquisitions of Trident Seafoods’ Ketchikan processing plant and taking over Peter Pan Seafoods’ facilities in Valdez, Port Moller, and Dillingham. That adds to the employee-owned company’s other processing assets in Valdez, Sitka, Craig, Valdez, Kodiak, False Pass, and Naknek.
“We are unique and different from other seafood companies in Alaska,” Fredrick said. “Silver Bay Seafoods is an integrated processor of frozen salmon, herring, whitefish, and squid products for domestic and export markets. It began in 2007 as a single salmon processing facility in Sitka, Alaska, when difficult market conditions inspired fishermen to invest in their own seafood processing operation. It was so successful that the fishermen ownership model spread to Prince William Sound, Kodiak, Alaska Peninsula, and Bristol Bay. Silver Bay is now owned by 600 fishers who supply the company’s state-of-the-art processing plants with wild-caught, sustainably harvested seafood that is sold to customers worldwide. The company has grown to one of the largest seafood companies in Alaska.”
Fredrick said Silver Bay’s unique approach has led it to invest back into the seafood industry during the downturn.
“With the seafood market downturn fishermen, processors, and communities are all feeling the impacts. While we aren’t facing different economic conditions than other companies, prioritizing fishermen opportunity was the primary driver in our decision to expand operations and to address concerns from fishermen across the state who were facing loss of markets in 2024,” she said. “We have taken into account our unique fishermen ownership structure, history, and focus, and developed our own approach to the current seafood industry challenges. Silver Bay views the current challenges as an opportunity to strengthen our position through thoughtful planning and strategic investment that will bring additional value to our fishermen partners, our workforce, and communities. Our expanded operations provide fishermen critical market opportunities, capacity, and services, and support product form diversity, increased throughput, and operational efficiencies that target economic benefits for our fishermen owners. In sum, when life gives you lemons, make lemonade.”
According to Fredrick, Silver Bay is still in discussions with Peter Pan regarding a broader restructuring through which Silver Bay would acquire Peter Pan’s processing facilities and support sites after the 2024 salmon seasons, including its facility in King Cove, Alaska, which Peter Pan announced in January would be closed for the 2024 “A” pollock season. On 12 April 2024, Peter Pan said in a Facebook post it is ceasing all processing operations “for the foreseeable future.”
“We're saddened to share that Peter Pan Seafoods will be halting operations at its processing plants, leading to the discontinuation of both summer and winter production cycles for the foreseeable future,” it said. “Efforts are underway to facilitate a smooth transition. For individuals who have worked or are working with Peter Pan Seafood as processors and are in search of job opportunities, we urge you to submit your application to Silver Bay Seafoods.”
Fredrick said Silver Bay would not process salmon at the King Cove facility this summer.
“Due to the timing of the rapidly approaching salmon season, Silver Bay Seafoods does not plan to process salmon in King Cove in the summer of 2024,” Fredrick said. “The King Cove facility has complex operations and infrastructure and requires additional analysis to develop a sustainable operating plan. Instead, we have prioritized fishermen opportunity and committed to expanding our fleet operations to support fishermen who were facing loss of market for the salmon season, including King Cove fishermen. Silver Bay Seafoods recognizes the importance of the King Cove facility to the people of King Cove and the entire Aleutians East region. We are in regular communication with community leadership and are committed to keeping the community updated as our plans develop.”
Fredrick said Silver Bay has been working on an effort to work with state and federal authorities via the Pacific Seafood Processors Association to improve the competitiveness and resilience of the Alaska seafood sector and to support Alaska fishermen and communities.
“This effort has been broadly supported and is critical in supporting a strong future for the industry,” Fredrick said.
Larsen Mettler, the managing director of S2G Ventures’ oceans and seafood investments and previously the chief financial officer of Silver Bay Seafoods and director of KeyBanc Capital Markets’ seafood investment banking portfolio, previously told SeafoodSource Silver Bay is the best-positioned Alaska seafood processor to take on the operation of additional facilities during this bleak time in the market.
"If anyone can pull this off, it is Silver Bay,” he said.
