Seafood, especially commodity based, is a low margin business. Historically the path to success has been effective cost ontrol, eliminating unnecessary costs and containing the rest as much as possible. That said, we are all learning of the importance of responsibility in sourcing. How can you become responsible and remain profitable?
Decisions to adopt responsible sourcing practices can be expensive. There are costs to becoming certified chain of custody, and certified product is often more expensive than conventional. Supplier audits add significant expense as well. Do you want to become part of a Fishery or Aquaculture Improvement Project? There are annual or per-pound costs to participate. Companies looking to provide traceable data pay fees to service providers, to develop software for the task or both. Even acquiring the expertise necessary from consultants or NGO partners can add up. Additionally, complying with a policy once adopted can require a company to make difficult decisions that can impact profitability. Will you source from a fishery that doesn’t meet sustainability requirements? What happens if traceability data is not available for a key product? If you need to change suppliers based on lack of capability or compliance will the new ones be as reliable and cost effective?
Are there paths, such as grants and supplier contracts with customers that will allow you to defray the costs of adoption of new policies? Having a responsible sourcing policy can open the door to new customers allowing you to grow your business. Will this raise enough revenue to pay for policy adoption? Join us as our panel of a key retailer, a large wholesale distributor, a supplier and (potentially) an NGO representative discuss this vital topic.
