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"Supply in less than 30 days": Processors "If Alaska pollock is not delivered, it will be forced to shut down"
Ironically, the company is one of the suppliers of the US government's federal food and nutrition program
.
.
Thomas Zaffiro, president of Taunton, Massachusetts-based Channel Fish Processing, said in a court filing on Thursday that if the factory did not receive the product, his company would lose approximately $30 million (25 million euros) in revenue
.
.
Zaffiro’s application is for logistics company Kloosterboer InternatioPart of a temporary restraining order submitted by nal Forwarding (KIF) and Alaska Cold Storage Management Company (ARM) to the U.
S.
Customs and Border Patrol (CBP)
.
ARM is a wholly-owned subsidiary of American Seafood Group
.
S.
Customs and Border Patrol (CBP)
.
ARM is a wholly-owned subsidiary of American Seafood Group
.
According to reports, Alaskan pollock is now shelved in a cold storage in New Brunswick for fear of fines
.
.
According to court documents, CBP has issued more than 170 fine notices related to the so-called "Gulf Plan", with a total fine of more than 350 million U.
S.
dollars (294.
6 million euros), and the time covered can be traced back to nearly five years
.
S.
dollars (294.
6 million euros), and the time covered can be traced back to nearly five years
.
Among other customers, American Seafoods sells pollock chunks to Channel for processing into value-added pollock products, including fish sticks and other breadcrumb products
.
.
Zaffiro said that without the product, it would lose 30% of its revenue
.
.
"I believe that if ASC fails to fulfill its obligations to Channel and delivers Alaska Pollock, Channel will not be able to complete the order and will lose at least some customers," Zaffiro wrote
.
.
Zaffiro added that the shortage of raw materials is so severe that the company may be forced to stop production
.
.
"Channel currently has less than 30 days of supply of Alaskan pollock chunks on hand," he wrote
.
"When our raw materials are used up, we will not be able to continue our manufacturing operations
.
"
.
"When our raw materials are used up, we will not be able to continue our manufacturing operations
.
"
In addition, Zaffiro stated that he expects the company to be forced to lay off approximately 50% of its staff within the first 30 days after the pollock supply is exhausted
.
.
“Regardless of whether we can produce or not, our daily fixed administrative expenses are approximately US$40,000 (33,000 Euros),” Zaffiro added
.
.
"The indirect damage to our business, including the expected loss of customer relationships, will be immeasurable.
In my opinion, they will pose an existential threat to the continued existence of Channel
.
"
In my opinion, they will pose an existential threat to the continued existence of Channel
.
"
Ironically, among Channel's customers is the United States Department of Agriculture (USDA)
.
.
Recently, Channel and Seattle-based Trident Seafoods won a contract from the United States Department of Agriculture to supply frozen Alaskan pollock fillets for distribution through the Federal Food and Nutrition Assistance Program
.
.
However, due to so-called supplier restrictions, the amount awarded was nearly 40% lower than the original USDA requirement
.
.
Channel is not the only company facing a major impact
.
CBP’s actions directly threaten the supply of this product to secondary processors in the United States, especially those located on the east coast, such as Gorton's owned by Nippon Suisan Kaisha (Nissui), the country’s largest fish stick producer
.
.
CBP’s actions directly threaten the supply of this product to secondary processors in the United States, especially those located on the east coast, such as Gorton's owned by Nippon Suisan Kaisha (Nissui), the country’s largest fish stick producer
.
Other major processors in the region also rely on pollock, including Canada-based High Liner Foods, which has processing operations in New Hampshire
.
.
The Alaska pollock industry has been struggling during the current "B" season because it does not have the right raw materials to make higher-value products
.
.
