Collaboration in the Seafood Industry Graham Stuart Chief Executive Officer Sealord 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 7 Total Revenue~ $3 billion Exports $1.6 billion EBITDA (est)~ $270 million Invested Capital~ $6.5 billion Quota $4.0 billion Return on Invested Capital4.2%

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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 10

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 skills And a culture that values and supports collaboration Four keys to successful collaboration: Sounds simple… Be clear about the goal Develop mutual understanding Know when to lead and when to follow Encourage information sharing Collaboration

14 Collaboration is easy Let’s not kid ourselves…