The National Fisheries Institute held its annual conference in San Francisco. Here are the top things that we took away from the meetings and our conversations with attendees. Many of the charts and slides I’ve included are from the NFI and its panelists. First, the good news. Americans are eating more fish. In terms of “ok” news, foodservice trends (where most seafood is consumed) show that the segment with the smallest share of seafood sales is also the fastest growing, and the segments which move the most seafood are flat to down. That will put pressure on the industry to learn how to menu seafood in quick service restaurants to participate in the growth that’s happening there. Politics, particularly around imports, represent a potential headwind. Washington is looking at taxing imports, which could be bad given 90% of the seafood consumed in the US is imported (we import more seafood than all other proteins combined, and 20%+ of our seafood imports come from China). Now to the details. For our core items, scallop landings look set to increase in ’17, driven by smaller scallops. We expect 20/30 and smaller domestic scallop prices to decline due to growing supply, which could be further driven by continued strength in the dollar (20/30 size is enjoyed by Europeans). It looks like haddock and cod will be relatively stable. And although many people are looking at mussels as a commodity, when you peel back a layer, there are dramatic differences in how they are priced. I hope you enjoy flipping through it! Peter

1. What We Learned
We attended the National Fisheries Institute’s annual conference.
Here are the top 10 things we learned.

2. In short…
2
The National Fisheries Institute held its annual conference in San Francisco. Here are the top things that we
took away from the meetings and our conversations with attendees. Many of the charts and slides I’ve
included are from the NFI and its panelists.
First, the good news. Americans are eating more fish. In terms of “ok” news, foodservice trends (where
most seafood is consumed) show that the segment with the smallest share of seafood sales is also the
fastest growing, and the segments which move the most seafood are flat to down. That will put pressure on
the industry to learn how to menu seafood in quick service restaurants to participate in the growth that’s
happening there.
Politics, particularly around imports, represent a potential headwind. Washington is looking at taxing
imports, which could be bad given 90% of the seafood consumed in the US is imported (we import more
seafood than all other proteins combined, and 20%+ of our seafood imports come from China).
Now to the details. For our core items, scallop landings look set to increase in ’17, driven by smaller scallops.
We expect 20/30 and smaller domestic scallop prices to decline due to growing supply, which could be
further driven by continued strength in the dollar (20/30 size is enjoyed by Europeans). It looks like haddock
and cod will be relatively stable. And although many people are looking at mussels as a commodity, when
you peel back a layer, there are dramatic differences in how they are priced.
We have more info in the slides that follow and would be glad to discuss this further should you have any
questions.
Thank you for your support.
Peter Handy | President & CEO
peterh@bristolseafood.com
207-200-2555

3. America ate almost 5 billion pounds of fish
3
4.92
4.90
4.85
4.89
4.87
4.66
4.50
4.57
4.64
4.96
4.20
4.30
4.40
4.50
4.60
4.70
4.80
4.90
5.00
'06 '07 '08 '09 '10 '11 '12 '13 '14 '15
Aggregate Seafood Consumption in the U.S.
(billions of pounds)
Source: NOAA

4. …and per capita consumption is growing too.
4Source: NOAA
14.9 14.8 15 15.2 15 14.8 14.6
14.9
15.4 15.2
14.8
15.6
16.3
16.6
16.2 16.2 16.3
16 16 15.8
15
14.4 14.5 14.6
15.5
0
2
4
6
8
10
12
14
16
18
0
2
4
6
8
10
12
14
16
18
'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15
Per Capita Seafood Consumption in the U.S.
(pounds)
Fresh & Frozen Canned Cured

5. Imports were a hot topic at the conference
5Source: Cattle-Fax, NOAA
90%+The portion of the
seafood consumed in the
U.S. that is imported
22%The percentage of
imported seafood that
comes from China.
5.7
3.4
1.1
0.1
0
1
2
3
4
5
6
Seafood Beef Pork Poultry
Total Protein Imports
(billions of pounds)
With the U.S. considering a border adjustment tax (makes imports more
expensive), all eyes were on imported seafood.
Almost all of the fish we eat is imported…
We import more seafood than all other proteins combined…
China represents more than 20% of imports.

6. Restaurant trends are mixed
6Source: The NPD Group, Inc.
Change from 1yr ago
Share of Seafood
Entrees Sold
Traffic Seafood Servings
Casual Dining 40% -3% 0%
Midscale 26% -3% -1%
Quick Service 22% 0% 7%
Fine Dining 12% 0% -10%

7. Expect more scallops to be landed in the US in ‘17
7Source: NOAA, Urner Barry
*Estimate, **Estimate, based on 13 months
36.4
30.0
34.1
38.8
46.0
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
'13 '14 '15 '16E* '17E**
U.S. Scallop Landings
(millions of pounds)

8. Scallops are getting smaller
8Source: BASE New Bedford, MA

9. More than half of global scallop supply comes from China
9Source: FAO Global Fishery & Aquaculture Statistics

10. Outlook for cod supply looks stable
10Source: Groundfish Forum

11. Global supply of haddock to decline, but not by much
11Source: Groundfish Forum

12. There are significant differences in pricing among mussels
12Source: The Gulf of Maine Research Institute, The Hale Group