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Marketing fund shrinks.

The Alaska Seafood Marketing Institute is cutting back promotions, quality programs and other projects in the United States because of lower than expected funding levels. ASMI promotes Alaska seafood in world markets using industry, state and federal funds. Industry and state funds are used for promotions in U.S. markets; federal funds can be used only in overseas markets.

The Alaska seafood industry voluntarily taxes itself .3 percent of the price fishermen receive for their catch and these receipts are given to ASMI for domestic seafood promotions. Because the value of the salmon catch was so low this year, receipts from the assessment are expected to drop from $3.2 million to about $2.6 million. The loss of $600,000 comes at the same time as a cutback in state funding of $355,000.

"The loss of marketing funds is a double whammy," says Lenny Gorsuch, ASMI executive director. "This season showed the need to significantly boost promotions in alternative markets so all our eggs weren't in the Japanese basket." Citing demographics and growth potential, he calls the United States the most promising market for the Alaska seafood industry.

Alaska has been losing its share of the world salmon market to foreign farm-raised salmon. An ASMI report in 1990 noted that salmon farmers now produce as much salmon as Alaska fishermen harvest, despite Alaska's record catches the last four years.
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Title Annotation:lower funding levels of the Alaska Seafood Marketing Institute
Publication:Alaska Business Monthly
Article Type:Brief Article
Date:Dec 1, 1991
Previous Article:Harvest record.
Next Article:Shell shuffle.

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