Net Value: An Innovative Approach to the Seafood Supply Chain
A successful use of forward contracts in the Good Food arena.
As a fisherman, business as usual means heading out to sea, battling the elements, catching as much as you can, and heading back inland to sell what you caught on auction. You do not know what will sell, and you do not know what price it will fetch.
As an institutional, retail or other mid-scale buyer you are also at the mercy of the auction. Budgeting is difficult, and there is generally no means to assure that the fish you are buying has the attributes you value, such as being sustainably caught, allowable bycatch, etc.
Open Ocean Trading created an innovative online marketplace, called FYSH-X, that allows buyers and sellers to trade commercially harvested and farmed seafood products in forward time. This value chain approach means that fishermen can leave the docks secure in the profitability of their trips by locking into a price and selling all or a portion of a catch in advance. And buyers are empowered by having prices they can budget for, and by being able to negotiate directly with vessels for any attributes that are important to them.
In this webinar we'll hear the history and context of the fish trading business, and how the Open Ocean Trading marketplace works. We'll also have a fisherman and a buyer speak from their perspectives about how FYSH-X has changed their businesses.
Tim Barrett grew up on coastal Massachusetts near Green Harbor in the town of Marshfield, a harbor that has fishing history dating back almost 420 years. Growing up with relatives and friends in the industry, it was natural for him to enter the field. Tim fishing started in the early 70's. After attending the Marine Fisheries and Technology program at University of Rhode Island Tim went on to captain a number of different boats that participate in the different fisheries in New England. He is now the owner/operator of the fishing vessel Odessa, a 42ft groundfish dragger out of Plymouth and Nantucket Massachusetts. Tim is also the vice president of Northeast Fishing Sector 10, a collection of about 35 boats from ports south of Boston to Cape Cod that are fishing under the new regulatory program called Catch Shares.
Keith grew up on Long Island, NY with family who owned commercial groundfishing vessels. He launched his professional career as a young entrepreneur at the age of 22 when he started a wholesale seafood company that purchased product from vessels and directly marketed it to a range of clients in the tri-state area. Keith noticed drastic price volatility that existed, and major inefficiencies that hindered the current boat to plate supply chain. Continuing his career, Keith consulted for a New York-based commodities exchange where he accepted the role of President of Seafood Market Development. It was with this firm that he focused on developing Lobster, Groundfish, Scallop, and Salmon forward contracts for commercial hedging of price risk in the seafood markets. Along with his hands-on experience with the seafood industry Keith has developed risk management strategies and commodity analysis programs for hedge funds and Commodity Trading Advisory (CTA) firms. Specifically, he spent three years developing computer programs and algorithms to analyze and limit exposure in agricultural, energy, metal, currency, and US & international interest rate futures markets. Currently Keith is the CEO & Founder of Open Ocean Trading where he custom built software for the forward management and trade of fresh seafood products and fishing quota(s).
Keith is the Executive Chef for AVI Fresh at Wellesley College. He is also the District Chef for the Eastern Region of AVI, covering Sarah Lawrence College in Yonkers along with Hunter College and Baruch College in Manhattan. He has 16 years of campus dining experience that he uses to specialize in international cuisine and purchasing.