Collaboration in the Seafood

IndustryGraham Stuart

Chief Executive OfficerSealord Group

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An overview of the Industry

4 companies account for 75% of the industry

Over 90% of production is exported

Traditional markets have stagnated

Production volumes fell by 60% over a decade

Faces strong competition from domestic production in most export markets

Highly regulated

Under intense scrutiny from environmental interest groups

Quota management of natural resource = natural collaborative platform

An overview of the Industry

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Seafood Industry Economics

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Total Revenue ~ $3 billionExports $1.6 billion

EBITDA (est) ~ $270 millionInvested Capital ~ $6.5 billionQuota $4.0 billion

Return on Invested Capital 4.2%

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Good Examples of Collaboration

Working with the regulator Deep Water Group partnership with MPI (3 CEO’s as

Directors) Deep Water Group collaboration on major policy

matters (represent over 95% of quota holders)

Improving our global sustainability credentials Marine Stewardship Council (a WWF off shoot)

accreditation for our major fisheries Deploying technologies to reduce our impact Protecting the marine environment – Benthic

Protection Areas closed to bottom trawling

On risky innovation ventures One significant PGP partnership involving 3

Companies and Plant & Food Research

Good Examples of Collaboration

In Market Fewer examples of collaboration, all relatively small

trade delegation to North America Pure New Zealand Green Shell Mussels in China

Fishing Ventures We know surplus capacity could be reduced with greater

collaboration between harvesters. The prize is potentially high

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On Collaboration

David Hume 18th Century Scottish Philosopher

“Your corn is ripe today; mine will be so tomorrow. 'Tis profitable for us both,

that I should labour with you today, and that you should aid me tomorrow.

I have no kindness for you, and know you have as little for me. I will not,

therefore, take any pains upon your account; and should I labour with you

upon my own account, in expectation of a return, I know I should be

disappointed, and that I should in vain depend upon your gratitude.

Here then I leave you to labour alone; You treat me in the same manner. The

seasons change; and both of us lose our harvests for want of mutual confidence

and security.”

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Collaboration requires Collaborative Leadership skillsAnd a culture that values and supports collaboration

Four keys to successful collaboration:

Sounds simple…

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Collaboration is easy

Let’s not kid ourselves…