Fishermen’s Challenge: Inadequate Distribution & Marketing Channels

Posted on October 16, 2023 by The Local Fish Team

Current Challenge: Inadequate Distribution & Marketing Channels

This is part one of a six part series.

As we built this platform, we surveyed commercial fishermen to identify pain points in the industry where we might be able to serve the community or fill a gap in the market. Over the course of two years we used questionnaires, in-depth interviews, focus groups, observation and participant observation, as well as collaboration with experts to get a realistic sense of the everyday challenges faced by commercial fishermen. 

One of the first major problems we identified was inadequate distribution and marketing channels for direct sales. Infrastructure issues such as limited access to fresh ice, local processing facilities, and accessible cold storage combined with cost-prohibitive landing fees and entry permits, the contamination of illegal sport-caught product into the marketplace, and a lack of direct sales channels have made the process complicated and disjointed for small-scale fishers looking to offload their daily catch. We also can’t expect every fisherman on the water to be a social-digital savant when it comes to online media, marketing and sales. The annual cost of landing permits alone is a barrier of entry for many fishers; forcing them to sell their catch to large commercial wholesalers, which leads to minimal profits and the global exportation of local catch, an increase in food miles, and reduction in overall product quality. 

When exploring possible solutions, we initially turned to existing concepts in the marketplace. We assumed that the creation of a community supported fishery (CSF) or a restaurant supported fishery (RSF) model could serve as a quick fix for a lot of the challenges and barriers facing local fishermen. Creating an optimized channel that could filter local catch directly back into the local markets under one single permit, a single set of quality standards, and curated marketing and media outreach program could potentially solve a lot of these problems. The RSF and/or CSF model in San Diego would also serve to maximize profits for fishers, minimize food miles, educate the public, and keep local seafood local. Supporting small-scale sustainable systems creates a path for more and would continue fostering healthy oceans and foodways for generations to come. The rising tide would indeed lift all boats. 

After speaking with the fishermen and hearing their direct feedback, we learned that the solution might not be as cut and dry as a single CSF or RSF model, but that there might be something slightly more nuanced between the two that could function as a viable solution in practice as well as in theory. Building a digital hub that could connect fishermen directly with consumers and restaurants on a single platform is only one piece of the puzzle. The reality of getting the product from point A to B, ensuring highest quality standards, increasing market awareness, transparency, and making sure that everybody makes an honest living is quite frankly — a logistical nightmare. 

To provide some background, commercial fishermen must purchase an extensive list of permits from different governmental agencies to catch commercial fish. ‘Commercial’ meaning the product can be sold. Comparatively, ‘sport-caught’ fish cannot be sold, instead, sport-caught fish is for the hobbyist that wants to fish for fun and consume the product themselves or share with friends and family. Commercial fishermen, although operating within the bounds of these commercial permits, are still not permitted to sell their catch without a fish business license of some sort. Now, which fish business license is dependent on to whom they are selling their catch. If they are selling to consumers, they need a retail permit. If they are selling to non-ultimate consumers, they need a multifunction fish business license, which can cost upwards of a couple thousand dollars annually. One of the larger concerns with holding a retail permit is that the FDA does not permit processing of any of the harvest without an appropriate facility (HACCP certified with a HACCP plan in place). This type of infrastructure is cost-prohibitive for a single fisherman. 

The coming together of a digital hub as a single platform for multiple sales channels (community and restaurant) and physical hub could function as a viable solution for the multitude of challenges faced around marketing and distribution. A physical hub would ensure a certain set of product standards, could take on the burden of processing, and the often prohibitive expense of extensive fish business permits and landing fees. Having a single facility that could filter through all products would guarantee a level of quality that can’t be monitored or curated in any other way. A processing facility that can work with restaurants as well as the public in the sale of offcuts also minimizes food waste and optimizes overall viability of each and every species caught. 

Managing the complex and ever-changing landscape of selling day-to-day catch could also be maximized under one single roof. Commercial fishing operations are largely driven by the volatile schedule of the ocean and mother nature. This requires a highly dynamic and specialized form of communication with both the public and restaurants. Creating a single process that would blast new catch to relevant consumers in a well-branded way, create fishermen stories and profiles around every catch, and serve to educate the public (either directly or through working closely with restaurants) will help automate (to a certain extent) a layered and mercurial process. 

While the current iteration of Local Fish does not have the capacity or budget to operate as a full-blown brick and mortar hub yet, it does set a digital blueprint for what that might look like in the future. We are taking the first steps on the path to bridging the gap between local fishers and the community in a way that will continue to expand and evolve as the project grows. In taking this first step we will be able to continue gathering data and information based on what works and what doesn’t to better serve our coastal communities locally and around the country.