A
Industry Investment
Using conservative assumptions, we have analyzed likely investment on the part of each of three components of
the marine ornamentals value chain – exporters, importers and retailers.
Exporters
With respect to the export market in the Philippines and Indonesia, we have made the following assumptions:
· Approximately 25 exporters in the Philippines and 35 in Indonesia;
· Over a 5 year period, approximately 30% of exporters will make investments in infrastructure and
personnel training related to MAC Certification;
· Average infrastructure investment of $40,000; and
· Average personnel investment: $10,000 (4 person months at $2,500 each).
Importers
Regarding the import market in the United States and Europe, we have divided importers into 3 classes – Large,
medium and small. We have made the following assumptions for each class of importers:
Large
· Approximately 7 large importers in the US and Europe combined;
· Over a 5 year period, at least 50% of large importers will make investments in infrastructure and
personnel training related to MAC Certification;
· Average infrastructure investment of $200,000 (by way of conservative comparison, a recent
infrastructure and personnel investment was made by a large importer for $800,000); and
Annex 7: Project Budget and Co-Financing
80
· Average personnel investment: $10,000 (4 person months at $2,500 each).
Medium
· Approximately 25 medium importers in the US and Europe combined;
· Over a 5 year period, at least 30% of medium importers will make investments in infrastructure and
personnel training related to MAC Certification;
· Average infrastructure investment of $100,000; and
· Average personnel investment: $10,000 (4 person months at $2,500 each).
Small
· Approximately 20 small importers in the US and Europe combined;
· Over a 5 year period, at least 30% of small importers will make investments in infrastructure and
personnel training related to MAC Certification;
· Average infrastructure investment of $40,000; and
· Average personnel investment: $10,000 (4 person months at $2,500 each).
Retailers
With respect to the retail market in the United States and Europe, we have made the following assumptions:
· Approximately 4,500 retailers in the US and Europe combined;
· Over a 5 year period, approximately 30% of retailers will make investments related to MAC
certification; and
· Average investment of $4,000.
Using conservative assumptions, we have analyzed likely investment on the part of each of three components of
the marine ornamentals value chain – exporters, importers and retailers.
Exporters
With respect to the export market in the Philippines and Indonesia, we have made the following assumptions:
· Approximately 25 exporters in the Philippines and 35 in Indonesia;
· Over a 5 year period, approximately 30% of exporters will make investments in infrastructure and
personnel training related to MAC Certification;
· Average infrastructure investment of $40,000; and
· Average personnel investment: $10,000 (4 person months at $2,500 each).
Importers
Regarding the import market in the United States and Europe, we have divided importers into 3 classes – Large,
medium and small. We have made the following assumptions for each class of importers:
Large
· Approximately 7 large importers in the US and Europe combined;
· Over a 5 year period, at least 50% of large importers will make investments in infrastructure and
personnel training related to MAC Certification;
· Average infrastructure investment of $200,000 (by way of conservative comparison, a recent
infrastructure and personnel investment was made by a large importer for $800,000); and
Annex 7: Project Budget and Co-Financing
80
· Average personnel investment: $10,000 (4 person months at $2,500 each).
Medium
· Approximately 25 medium importers in the US and Europe combined;
· Over a 5 year period, at least 30% of medium importers will make investments in infrastructure and
personnel training related to MAC Certification;
· Average infrastructure investment of $100,000; and
· Average personnel investment: $10,000 (4 person months at $2,500 each).
Small
· Approximately 20 small importers in the US and Europe combined;
· Over a 5 year period, at least 30% of small importers will make investments in infrastructure and
personnel training related to MAC Certification;
· Average infrastructure investment of $40,000; and
· Average personnel investment: $10,000 (4 person months at $2,500 each).
Retailers
With respect to the retail market in the United States and Europe, we have made the following assumptions:
· Approximately 4,500 retailers in the US and Europe combined;
· Over a 5 year period, approximately 30% of retailers will make investments related to MAC
certification; and
· Average investment of $4,000.
On MAC:
2. Operating Strategy
MAC is committed to achieving the following outcomes and milestones by 2005:
Logistic concept verification. Over the next 18-24 months, MAC will prove that the concept of
certification can work in the marine ornamental industry. To do so, it will, at minimum, reach the
following milestones, some of which have already been achieved by early 2003.
Annex 16: Summary of MAC Business Plan
122
Verification of an operational certification system. At least six collection areas and their
corresponding chains of custody are certified, and certified products are moving from reef to
retail.
Meaningful supply development. At least five percent of market volume will be certified. This
translates to the certification of about 15,000 export boxes of marine fish per year, and 250,000+
pieces of coral and other invertebrates. The certified supply will include near-representative
amounts of the twenty top-selling fish, coral and other invertebrate species.
Demonstration of a certified chain of custody. At least seventy percent of the created certified
supply of fish and coral will track through to the retailer level and sell as certified product in, at
minimum, four key countries: the US, UK, Netherlands and Germany.
Demonstration of demand. Consumers will buy the available retail volume.
Environmental concept verification. At least 2,000 boxes of marine fish per year will come from
the Philippines, to prove that the concept can be executed in historically difficult supply
environments. All source reefs will be fully monitored and subject to the reef management laid
out in a specific collection area management plan.
Industry adoption. MAC will have certified the facilities of at least two top US importers and at
least one of the top three importers (by volume) in its other target consumer markets: the UK,
Netherlands and Germany.
Industry and stakeholder support. MAC needs to show willingness within the industry to support
certification. Within the next 18 months, MAC will begin to transition towards becoming
financially independent with a portion of financial support coming from the industry. This will
most likely be through a two percent levy on the C & F value of certified products purchased by
importers, as well as a $100 flat fee for retailers. In addition, industry groups, individual
companies, conservation groups, government/international agencies, and local communities will
formally express support for MAC Certification and will be offered the opportunity to provide
financial support.
2. Operating Strategy
MAC is committed to achieving the following outcomes and milestones by 2005:
Logistic concept verification. Over the next 18-24 months, MAC will prove that the concept of
certification can work in the marine ornamental industry. To do so, it will, at minimum, reach the
following milestones, some of which have already been achieved by early 2003.
Annex 16: Summary of MAC Business Plan
122
Verification of an operational certification system. At least six collection areas and their
corresponding chains of custody are certified, and certified products are moving from reef to
retail.
Meaningful supply development. At least five percent of market volume will be certified. This
translates to the certification of about 15,000 export boxes of marine fish per year, and 250,000+
pieces of coral and other invertebrates. The certified supply will include near-representative
amounts of the twenty top-selling fish, coral and other invertebrate species.
Demonstration of a certified chain of custody. At least seventy percent of the created certified
supply of fish and coral will track through to the retailer level and sell as certified product in, at
minimum, four key countries: the US, UK, Netherlands and Germany.
Demonstration of demand. Consumers will buy the available retail volume.
Environmental concept verification. At least 2,000 boxes of marine fish per year will come from
the Philippines, to prove that the concept can be executed in historically difficult supply
environments. All source reefs will be fully monitored and subject to the reef management laid
out in a specific collection area management plan.
Industry adoption. MAC will have certified the facilities of at least two top US importers and at
least one of the top three importers (by volume) in its other target consumer markets: the UK,
Netherlands and Germany.
Industry and stakeholder support. MAC needs to show willingness within the industry to support
certification. Within the next 18 months, MAC will begin to transition towards becoming
financially independent with a portion of financial support coming from the industry. This will
most likely be through a two percent levy on the C & F value of certified products purchased by
importers, as well as a $100 flat fee for retailers. In addition, industry groups, individual
companies, conservation groups, government/international agencies, and local communities will
formally express support for MAC Certification and will be offered the opportunity to provide
financial support.
More on MAC: (p124)
4. Revenue Generation
The recommended industry fees outlined below were determined through a combination of
market testing within the industry and financial modeling of various fee structures. The market
testing was conducted through a series of structured interviews with a broad range of industry
players including small, and large exporters, importers, and retailers throughout the US and
international markets and a workshop with the Executive Committee of the MAC Board of
Directors. Based on the feedback coming out of these efforts, a series of fee scenarios were
modeled for MAC. The conclusions reached regarding an industry fee applied to importers and
retailers was determined by the majority of those consulted to be at a reasonable level and
feasible for MAC to implement.
MAC will begin implementing a set of industry fees, which will, as the number of certified
companies rises, gradually replace donor grants as the primary source of funding. Discussion
with the industry by the business planning consultants showed that those exporters, importers,
and retailers who are most likely to be early adopters of certification are also the most likely to
support MAC financially.
Retailer Fees. MAC anticipates charging retailers who carry MAC-certified products a support
fee of $100/yr. per store (which will gradually increase to $200/yr.) This charge will be in
addition to third party certification expenses as well as any infrastructural upgrades that might be
required. The fees will be collected by certifiers at the time of the annual store
inspection/monitoring, in conjunction with their collection of certification costs, and remitted to
MAC.
Importer fees. MAC currently anticipates charging participating importers a MAC support fee of
two percent of their C & F wholesale cost of MAC Certified Organisms. For example, an
importer receiving $50,000 of certified fish and coral per year, which is sold to retailers for
Annex 16: Summary of MAC Business Plan
125
$140,000, will pay only an annual MAC fee of $1,000 (which is equivalent to less than 0.7 % of
the retail sales value). In addition, the importer will have to pay for initial certification and yearly
monitoring expenses – but these costs do not accrue to MAC. With a thirty percent adoption rate
of MAC Certification, as expected in five years, total industry support will reach over $900,000 a
year.
Exporter/collector fees. In the long-term, it is important for exporters to participate in providing
financial support for MAC, as they play a significant role in the industry and ultimately need to
buy into the industry’s role in providing financial support for MAC. However, MAC does not
believe that exporter or collector fees are productive in the initial years of operation. Many
collector and exporter operations are small (including many of the high quality operations that are
likely to be MAC pioneers) and cannot afford MAC fees in addition to basic certification and
auditing expenses. In addition, accounts receivable collections from exporters and collectors
around the world (many of which have highly unstable currencies) are complex and expensive.
Lastly, MAC’s initial emphasis on rapid supply development is facilitated by low barriers to entry
for collectors and exporters. In the short-term, MAC will encourage exporters to fund
certification supply development efforts in their respective countries. Longer-term, MAC will
develop a fee system that enables exporters to contribute a realistic share of financial support for
MAC.
4. Revenue Generation
The recommended industry fees outlined below were determined through a combination of
market testing within the industry and financial modeling of various fee structures. The market
testing was conducted through a series of structured interviews with a broad range of industry
players including small, and large exporters, importers, and retailers throughout the US and
international markets and a workshop with the Executive Committee of the MAC Board of
Directors. Based on the feedback coming out of these efforts, a series of fee scenarios were
modeled for MAC. The conclusions reached regarding an industry fee applied to importers and
retailers was determined by the majority of those consulted to be at a reasonable level and
feasible for MAC to implement.
MAC will begin implementing a set of industry fees, which will, as the number of certified
companies rises, gradually replace donor grants as the primary source of funding. Discussion
with the industry by the business planning consultants showed that those exporters, importers,
and retailers who are most likely to be early adopters of certification are also the most likely to
support MAC financially.
Retailer Fees. MAC anticipates charging retailers who carry MAC-certified products a support
fee of $100/yr. per store (which will gradually increase to $200/yr.) This charge will be in
addition to third party certification expenses as well as any infrastructural upgrades that might be
required. The fees will be collected by certifiers at the time of the annual store
inspection/monitoring, in conjunction with their collection of certification costs, and remitted to
MAC.
Importer fees. MAC currently anticipates charging participating importers a MAC support fee of
two percent of their C & F wholesale cost of MAC Certified Organisms. For example, an
importer receiving $50,000 of certified fish and coral per year, which is sold to retailers for
Annex 16: Summary of MAC Business Plan
125
$140,000, will pay only an annual MAC fee of $1,000 (which is equivalent to less than 0.7 % of
the retail sales value). In addition, the importer will have to pay for initial certification and yearly
monitoring expenses – but these costs do not accrue to MAC. With a thirty percent adoption rate
of MAC Certification, as expected in five years, total industry support will reach over $900,000 a
year.
Exporter/collector fees. In the long-term, it is important for exporters to participate in providing
financial support for MAC, as they play a significant role in the industry and ultimately need to
buy into the industry’s role in providing financial support for MAC. However, MAC does not
believe that exporter or collector fees are productive in the initial years of operation. Many
collector and exporter operations are small (including many of the high quality operations that are
likely to be MAC pioneers) and cannot afford MAC fees in addition to basic certification and
auditing expenses. In addition, accounts receivable collections from exporters and collectors
around the world (many of which have highly unstable currencies) are complex and expensive.
Lastly, MAC’s initial emphasis on rapid supply development is facilitated by low barriers to entry
for collectors and exporters. In the short-term, MAC will encourage exporters to fund
certification supply development efforts in their respective countries. Longer-term, MAC will
develop a fee system that enables exporters to contribute a realistic share of financial support for
MAC.
the sham began on the very first pages
one of the most glaring was the dollar to kilo values placed on mo fish vs food fish-the figures have no base in reality for what the divers get paid /kg one vs. the other
and the exclusivity/exclusionist/monopolist intent was blatantly and explicitly stated from the get go, w/ words like 'only'
mac is getting pretty ballsy, if ya ask me
i sure hope for their sake they weren't involved, or can't be shown to be involved in politiking
congress doesn't take too kindly to lobbying by non-profits, as a general rule :wink:
one of the most glaring was the dollar to kilo values placed on mo fish vs food fish-the figures have no base in reality for what the divers get paid /kg one vs. the other
and the exclusivity/exclusionist/monopolist intent was blatantly and explicitly stated from the get go, w/ words like 'only'
mac is getting pretty ballsy, if ya ask me
i sure hope for their sake they weren't involved, or can't be shown to be involved in politiking
congress doesn't take too kindly to lobbying by non-profits, as a general rule :wink:
Ah the infamous MAMTI Manifesto that details the plot to completely take over and transform the marine industry. Insider knowledge of this scheme has forever ruined the credibility of those who tried to smeer me for my efforts to expose it. Shame on those of you who tried to help cover and conceal it until it was too late for the industry to fight back. I can always tell that when people are lying and deceiving people that they are hiding something. I hope this serves as a lesson to some of the rest of you. Thank for posting Glenn. You got big ones my friend.
Mitch
Mitch
I thought MAC certification was for fish only?
FWIW, I don't necessarily think this is all bad. A lot of it is necessary. I am however worried about the amount of power (especially when backed up by legislation) it gives to an organization (MAC) that has yet to prove its effectiveness at production.
clarionreef
Advanced Reefer
- Location
- San Francisco
As we know,
Any outfit with the wherewithall to breed fish commercially is already far beyond the competence of a MAC to judge it. Why on earth would ProAquatix or ORA need certification? They don't.
MAC however wants money and to attach itself to ongoing money machines for both validation and subsidy.
They will never be successful with engineering fish supply and will never feed the trade netcaught, sustainably collected fish to any degree.
The skill is just not in them.
However...the events in the 5 year plan push onward and the sanctions against those who would not join MAC are now appearing .
By now there was to be a carrot and then the stick. They are now seen as presenting only the stick!
To produce carrots, you have to know how to farm. These city boys are only good at creating law enforcement and negative sanctions it would appear.
They are exposed now for all to see.
Steve
Any outfit with the wherewithall to breed fish commercially is already far beyond the competence of a MAC to judge it. Why on earth would ProAquatix or ORA need certification? They don't.
MAC however wants money and to attach itself to ongoing money machines for both validation and subsidy.
They will never be successful with engineering fish supply and will never feed the trade netcaught, sustainably collected fish to any degree.
The skill is just not in them.
However...the events in the 5 year plan push onward and the sanctions against those who would not join MAC are now appearing .
By now there was to be a carrot and then the stick. They are now seen as presenting only the stick!
To produce carrots, you have to know how to farm. These city boys are only good at creating law enforcement and negative sanctions it would appear.
They are exposed now for all to see.
Steve
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