Background:
Lund’s Fisheries, a family owned business since 1954, offers the highest quality frozen seafood from their locations in Oxnard, California, and Cape May, New Jersey. The company operates a fleet of company-owned fishing vessels and also relies on fishing vessels operated by independent contractors. As part of their on-going commitment to quality, Lund’s Fisheries invests in cutting edge technologies and adheres to the strictest Food and Drug Administration management systems for food handling and safety. Lund’s actively works to maintain the sustainability of our oceans’ natural resources, and participates in objective scientific research aimed at protecting and preserving the marine environment for generations to come.
Challenge:
Prior to 1976, countries outside of the U.S. were fishing in waters as close as 12 nautical miles from the U.S. coastline, and shipping their catches directly to their home countries. Heavy harvesting by foreign companies led to concern about overfishing and the long-term sustainability of ocean life in waters off the U.S. shoreline. In 1976, the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act) literally resulted in a sea change for U.S. based fisheries. The act extended U.S. jurisdiction on waters to 200 nautical miles with the goal of “fostering long-term biological and economic sustainability of our nation's marine fisheries.” Key objectives of the act are to:
- Prevent overfishing
- Rebuild overfished stocks
- Increase long-term economic and social benefits
- Ensure a safe and sustainable supply of seafood
Solution:
Once the Magnuson-Stevens Act was passed, companies including Lund’s Fisheries made substantial shore side investments to process, freeze, and export fish landed by U.S. fishermen. Lund’s Fisheries worked closely with the Meridian Finance Group, an EXIM registered insurance broker, and EXIM Bank to create an exporting strategy that supported the company’s growth initiatives. Central to this strategy were two EXIM products - export credit insurance and a working capital loan guarantee. With export credit insurance mitigating the risk of nonpayment by foreign buyers, Lund’s Fisheries was able to confidently expand into global markets. The EXIM working capital guarantee empowered Lund’s Fisheries to finance the production of frozen seafood to meet the demand in international markets. As a result of this collaborative relationship, Lund’s Fisheries has grown the business, increased the number of U.S. based jobs, and built a globally recognized brand that is feeding families around the world.
Learn More:
Are you expanding your business globally? Do you need working capital to produce goods or services for international clients? If the answer to either of these questions is yes, reach out to your local representative to learn how EXIM can help.
