Jason Brantley is senior vice president and senior relationship manager-global commercial banking at Bank of America Merrill Lynch in Seattle, Washington, U.S.A., specializing in financing the commercial fishing and seafood industry.
SeafoodSource: What is your background and how did you come to focus on the seafood sector at BAML?
Brantley: I grew up in the Seattle area, but do not have a fishing background. About 12 years ago, I took on the role of credit analyst at Bank of America Merrill Lynch, and my responsibilities included the seafood portfolio. I had some great teammates who were very experienced and helped me learn the industry and the people. I then became the underwriter for the portfolio and when the senior banker retired in 2012, I took over as the relationship manager, serving as the primary contact for these clients. There are a lot of great people in the industry and there is always more for me to learn, which keeps it interesting.
SeafoodSource: What are the unique business challenges faced by the seafood industry and how do you help clients address them?
Brantley: Many firms have unique assets, such as vessels or permits or quota, and understanding those and their value is very important. Many firms also face unique regulatory challenges and, of course, for any seafood business that depends on wild fish, there is the unknown of where the raw material is and when it will be there.
The best thing I can do to help clients work through this is to be as knowledgeable as possible. While we may not be able to make the fish show up on a particular date or time, my clients have confidence that I understand the unique challenges they face and that goes a long way. They can focus on running their business and not worry about explaining to their banker that plant throughput was down in Q2 because the fish did not show up until a few weeks later than usual.
SeafoodSource: How have things changed since you began working with seafood clients a decade or so ago?
Brantley: One of the biggest changes has been the increased focus on marketing and innovation. Companies see that they need to tell their story – and the overall “fish story” – on a global level. Consumers want to know about the product, where it is from and is it sustainable. The other major change is the consolidation in all phases of the industry. This leads to the creation of larger companies, which may take a toll on smaller players. In any case, I think the focus on innovation and the trend of consolidation will both continue.
SeafoodSource: Based on your interaction with the seafood industry, how healthy is the business right now?
Brantley: That is a big question! As you know the industry is global and very diverse. Most of my clients are here in Washington and Alaska, and my sense is that most firms are fairly healthy right now. Alaska had a pretty good wild salmon season last year, and while the cod catch is down, prices are good. Prices for wild Alaska pollock are up and groundfish prices are also solid, so most firms are in relatively good shape. Overall, I would characterize our clients as healthy. But this is seafood, and there are always potential concerns: crab catch levels remain low; halibut catches are down; vessels are aging; and new steel is quite expensive.
SeafoodSource: What existing or proposed regulatory or governmental issues, national and international, do you see as impacting the growth and stability of the seafood and fishing industries?
Brantley: Love or hate the Jones Act, the fact is that requiring vessels to be U.S. built makes it very challenging for fisheries across the U.S. It is a tough cycle. Many firms need new boats to operate more safely and efficiently, to offer higher value products, to utilize more of the fish and to grow their businesses. They need new boats to drive new revenue, but many can’t afford it. As a lender, I would love to partner with more clients on major new builds, but providing more debt than the business can handle is not doing anyone any favors. Again, for those in the U.S., reauthorization of the Magnuson-Stevens Act would also be nice. Ultimately, as with most businesses, it is the known unknowns that you worry about. Our clients ask themselves: will there be a trade war? Economic sanctions? A change in allowable fishing grounds?
SeafoodSource: What have you learned about the seafood industry from working with your clients in this sector?
Brantley: It has been a great education for me – about species, vessels, processing, sustainability, regulatory requirements, cold storage…the list goes on. Maybe the biggest thing I have learned is that the industry is larger, more diverse than I realized and it plays a vital role in global food supply. Even after working with the industry for several years, I was amazed at Seafood Expo North America in Boston to see just how much there is to the industry. I like that there is still more to learn, even after 12 years.
