1 00:00:05,240 --> 00:00:09,400 Speaker 1: Hello everybody, and welcome. Thank you for joining us again 2 00:00:09,480 --> 00:00:15,599 on Seafood Matters Today I'm chatting with Manuel Vasquez. Manuel 3 00:00:15,880 --> 00:00:21,760 is the CEO of Bacha Aqua Farms. Hello, Manuel, and 4 00:00:21,960 --> 00:00:24,719 welcome to Seafood Matters. Great to have you on the show. 5 00:00:25,960 --> 00:00:28,559 Speaker 2: Thank you very much, jam and thank you for the invitation. 6 00:00:28,760 --> 00:00:32,000 And good morning everyone, Thank you, thank you. 7 00:00:33,719 --> 00:00:38,399 Speaker 1: If I could maybe start, how has the global demand 8 00:00:38,520 --> 00:00:44,079 for premium bluefin tuna evolved over the last decade and 9 00:00:44,159 --> 00:00:48,560 how is Bacha Aqua Farms positioning itself to meet these 10 00:00:49,200 --> 00:00:51,679 change in consumer needs. 11 00:00:52,960 --> 00:00:58,079 Speaker 2: Ah, yeah, great question, Jim. I think it's been a 12 00:00:58,159 --> 00:01:02,079 really good business for those who have been on the bluefin. 13 00:01:02,799 --> 00:01:09,680 Over the last decade. We've seen a change in consumer habits, 14 00:01:10,519 --> 00:01:15,719 mainly from I would say the last generation, which was 15 00:01:15,879 --> 00:01:20,959 treating the product just as a commodity. Now we realize 16 00:01:21,519 --> 00:01:25,799 how important is that product in a different type of 17 00:01:26,519 --> 00:01:33,560 restaurants and sushi outlets. Obviously that comes with a different 18 00:01:33,719 --> 00:01:37,920 type of product as well, because now you see consumers 19 00:01:38,000 --> 00:01:44,680 requesting a different set of organ electic attributes into the bluefin. 20 00:01:45,400 --> 00:01:48,120 And at the same time, obviously we see a tremendous 21 00:01:48,120 --> 00:01:54,879 opportunity of growth in those new niches and new segments 22 00:01:54,879 --> 00:01:58,920 that are over and above of what we had before. 23 00:01:59,400 --> 00:02:03,200 As a quote on the bluefin space as well, so 24 00:02:03,239 --> 00:02:06,400 to put it on a nutshell on the last ten years, 25 00:02:07,359 --> 00:02:12,800 there was this stigma on bluetin as well, because we 26 00:02:12,879 --> 00:02:16,080 were an industry that it was having a kind of 27 00:02:16,240 --> 00:02:21,840 dangerous pieces, and for over a decade we had very 28 00:02:21,919 --> 00:02:25,560 tough controls on the amount of fish that we could 29 00:02:25,599 --> 00:02:30,039 get out of the ocean. Finally, last year, for the 30 00:02:30,080 --> 00:02:35,080 first time in a decade, all the scientific community from 31 00:02:35,120 --> 00:02:38,280 the West and the East got together and then they 32 00:02:38,360 --> 00:02:43,159 realized that actually the targets and the abundance of biomass 33 00:02:43,199 --> 00:02:46,960 in the ocean was over and above of the objectives 34 00:02:47,000 --> 00:02:50,719 that we were supposed to achieve within the next five years. 35 00:02:51,000 --> 00:02:53,240 And as a result of that, for the first time 36 00:02:53,879 --> 00:02:57,840 in many years, they gave us a quota increase of 37 00:02:58,400 --> 00:03:02,439 fifty percent quote increase. As you can imagine, it was 38 00:03:02,960 --> 00:03:05,840 a big challenge for all companies because then you need 39 00:03:05,879 --> 00:03:10,560 to increase your structure and infrastructure in order to embrace 40 00:03:10,639 --> 00:03:14,080 that volume. And at the same time, obviously you need 41 00:03:14,120 --> 00:03:17,800 to develop a market that is there, but it still 42 00:03:17,840 --> 00:03:20,520 needs to be educated and needs to be positioned with 43 00:03:20,639 --> 00:03:25,960 the right product and priced. So all these just to 44 00:03:26,199 --> 00:03:30,879 summarize that. Indeed, the last decade has been good, but 45 00:03:31,000 --> 00:03:33,960 the last two years I would say were extremely better 46 00:03:34,800 --> 00:03:39,159 than what we have seen. And obviously we have a 47 00:03:39,240 --> 00:03:41,400 very positive outlook for the years to come. 48 00:03:43,120 --> 00:03:47,039 Speaker 1: That's very encouraging. I would love to come back to that. 49 00:03:47,199 --> 00:03:50,560 But if I could, just before that, ask you what 50 00:03:50,800 --> 00:03:54,879 was your background before joining bach Arco Farms. 51 00:03:56,240 --> 00:03:59,560 Speaker 2: Well, for many years I worked for Nesley, you know 52 00:03:59,639 --> 00:04:04,719 the chuck I played, milch and a beverage company. I 53 00:04:04,800 --> 00:04:09,000 actually started my career over there more than twenty five 54 00:04:09,080 --> 00:04:16,360 years ago. I worked for them in Mexico, Panama, Ghana, Switzerland, Singapore, 55 00:04:16,680 --> 00:04:21,959 back to Mexico, then Dubai for a while back to Mexico, 56 00:04:22,839 --> 00:04:25,800 and then with that just finished the first twenty years 57 00:04:25,839 --> 00:04:30,519 of my life with them, doing many things. As you know, 58 00:04:30,920 --> 00:04:34,160 Nesle is a big corporation that goes some foods and beverage, 59 00:04:34,199 --> 00:04:38,000 so it was a big school for me, even changing 60 00:04:38,120 --> 00:04:44,480 roles within during these years from finance to commercial. Then 61 00:04:44,600 --> 00:04:48,680 I left the company and then I went into tuna. First, 62 00:04:48,720 --> 00:04:53,000 I started in the yellowfin industry with one of the 63 00:04:53,040 --> 00:04:57,079 main companies that is called Tuni in Mexico, and later 64 00:04:57,160 --> 00:05:01,680 on I went to work for Atundolore, which is the 65 00:05:01,800 --> 00:05:08,519 largest tuna fishing company, I would say in Latin America. 66 00:05:10,160 --> 00:05:13,879 So over there I leland the ropes on the seafood 67 00:05:14,000 --> 00:05:20,759 and the fishing and the tuna. And then just by coincidence, 68 00:05:20,879 --> 00:05:23,480 I was invited to go back to coffee for a while, 69 00:05:25,519 --> 00:05:29,160 and with that I finished my yellow fiend experience. After 70 00:05:29,199 --> 00:05:32,839 two years of being in the coffee again, finally I 71 00:05:32,879 --> 00:05:38,879 got this call three years ago and then I madly 72 00:05:38,959 --> 00:05:43,120 fell in love of culture and what you know is 73 00:05:43,160 --> 00:05:45,959 now Bajack of arms. So I'm here to here with 74 00:05:46,040 --> 00:05:50,519 the company away for three years. At that point of time, 75 00:05:51,079 --> 00:05:53,639 we were going through as an transision also in terms 76 00:05:53,680 --> 00:05:57,199 of shareholders, so it was really a nice time for 77 00:05:57,319 --> 00:06:00,480 me to join the company and then go with these 78 00:06:00,519 --> 00:06:08,319 new transition of owners and obviously a strategy for the company. Ah. 79 00:06:09,040 --> 00:06:16,399 I'm also a Mexican national. My background is in finance. 80 00:06:16,600 --> 00:06:18,959 And then I went to study in Chicago Bull and 81 00:06:19,120 --> 00:06:24,759 Gellog for some m b A and marketing degrees, and 82 00:06:24,959 --> 00:06:28,120 as you know, going around all these places, I also 83 00:06:28,199 --> 00:06:31,120 managed to collect a number of different languages to speak, 84 00:06:32,360 --> 00:06:32,839 and that's it. 85 00:06:36,160 --> 00:06:44,879 Speaker 1: Yeah, that's your life. From what you see there madeo 86 00:06:44,959 --> 00:06:52,120 lb tuna and I would start by it made sound 87 00:06:52,199 --> 00:06:55,680 as if I'm trying to catch here, but I'm not. 88 00:06:55,839 --> 00:06:59,759 I'm gonna put my hand up and admit my own 89 00:06:59,800 --> 00:07:03,519 neg ignos on the subject in unfashioned all my life. 90 00:07:03,600 --> 00:07:08,800 But there's just no to there or anything like that 91 00:07:09,279 --> 00:07:13,240 or waters. There's a big difference between yellow fan and 92 00:07:13,360 --> 00:07:13,839 blue fen. 93 00:07:15,040 --> 00:07:20,480 Speaker 2: Yes, absolutely biologically speaking, they don't even look the same, 94 00:07:22,519 --> 00:07:25,439 but even in the way that they behave and the 95 00:07:25,560 --> 00:07:29,560 habitat that they have is also different. The yellow fin 96 00:07:29,680 --> 00:07:34,120 is on tropical waters, which is going out the equator 97 00:07:35,000 --> 00:07:38,240 and a little bit above them below, but that's normally 98 00:07:39,040 --> 00:07:43,800 the place that they have it. Then the blue find 99 00:07:44,160 --> 00:07:48,279 for difference, is normally on the north or really south, 100 00:07:49,560 --> 00:07:55,759 much closer to cold waters rather than to tropical waters. 101 00:07:55,800 --> 00:07:59,560 And it's having a completely different migration pattern which starts 102 00:07:59,560 --> 00:08:03,319 in Japan and cross all the Pacific on the North 103 00:08:03,480 --> 00:08:08,120 Current to California and co goes down all the way 104 00:08:08,160 --> 00:08:13,199 to Encinada and then back again, So that migration pattern 105 00:08:13,399 --> 00:08:19,480 is completely different from yellow fin. Yellowfin is normally associated 106 00:08:19,560 --> 00:08:23,199 to dolphins, so you will see a school of dolphins 107 00:08:23,240 --> 00:08:27,519 together with yellowfin. As a result of that, obviously there 108 00:08:27,600 --> 00:08:30,319 is a completely different technique and the way to catch 109 00:08:30,399 --> 00:08:33,919 and capture that fash. In the case of blue fin, 110 00:08:34,120 --> 00:08:37,840 it is not associated to dolphins. It is much more 111 00:08:37,840 --> 00:08:41,679 associated to sudin, which is obviously what they eat. 112 00:08:42,120 --> 00:08:43,799 Speaker 1: So okay. 113 00:08:45,039 --> 00:08:48,480 Speaker 2: And then in terms of industry, you recognize yellow fin 114 00:08:48,639 --> 00:08:51,639 going in a can, so that's normally the way that 115 00:08:51,759 --> 00:08:57,639 consumer understands the product, and bluefin we normally take it 116 00:08:57,720 --> 00:08:59,279 out of a can and we put it on a 117 00:08:59,320 --> 00:09:03,799 different type of plates, starting from sushi, sushimi and nowadays 118 00:09:03,840 --> 00:09:06,960 the most sophisticated places that you can imagine on white 119 00:09:07,000 --> 00:09:09,519 table restaurants around the world. 120 00:09:11,159 --> 00:09:13,840 Speaker 1: Okay, So if you see it in a Japanese restaurant, 121 00:09:14,159 --> 00:09:15,440 it's bluefin. 122 00:09:16,559 --> 00:09:20,960 Speaker 2: Yeah, because of the taste and the fat content that 123 00:09:21,080 --> 00:09:25,799 you can find, specifically in the case of blue fin, 124 00:09:26,360 --> 00:09:29,960 it tends to it fatten. And this is how even 125 00:09:30,039 --> 00:09:32,320 they got this name. On the different parts of the 126 00:09:32,360 --> 00:09:36,559 body of a fresh that came from the Japanese culture, 127 00:09:36,879 --> 00:09:40,960 so we call toro o toro, which is like the 128 00:09:41,159 --> 00:09:44,960 lower part of the loin or the belly loin as 129 00:09:44,960 --> 00:09:49,759 we call it. Then you have the tchutuo anakami, which 130 00:09:49,840 --> 00:09:53,440 is the side loins and the upper part of the loin, 131 00:09:54,240 --> 00:09:57,440 which in terms of the fat content, is a completely 132 00:09:57,480 --> 00:10:04,159 different color and fat that you can see on the flesh. 133 00:10:04,240 --> 00:10:08,200 In the case of the yellow fin, since the swimming 134 00:10:08,279 --> 00:10:11,799 patterns are completely different, they don't develop that much fat, 135 00:10:12,240 --> 00:10:16,600 so you will have a very lean flash and that 136 00:10:16,799 --> 00:10:22,039 lean flesh obviously is having a different color and a 137 00:10:22,080 --> 00:10:23,279 different taste completely. 138 00:10:24,440 --> 00:10:28,519 Speaker 1: It's really interesting. That's really interesting, I would imagine, I 139 00:10:28,559 --> 00:10:31,799 don't know if it's Before I was going to ask 140 00:10:31,840 --> 00:10:35,840 you about the difference in the flavors, I would have 141 00:10:35,879 --> 00:10:40,279 thought from the weird described that the bluefin with more 142 00:10:40,360 --> 00:10:45,320 fat would have been tisty. But are they not. Are 143 00:10:45,320 --> 00:10:48,279 they just completely different. There's not a case that one 144 00:10:48,399 --> 00:10:50,720 is better than the other. They're just different. 145 00:10:52,080 --> 00:10:57,840 Speaker 2: They're just different. Obviously, the fact that you have that 146 00:10:57,960 --> 00:11:03,200 fat content a different taste, and because it takes a 147 00:11:03,240 --> 00:11:07,639 different taste, is a bit more sophisticated in the way 148 00:11:07,720 --> 00:11:12,240 to prepare it, because you need to obviously take advantage 149 00:11:12,279 --> 00:11:17,360 of these organ elyptic features that you already have on 150 00:11:17,440 --> 00:11:20,360 the fish. And also as a result of that, there 151 00:11:20,399 --> 00:11:24,120 is also a price difference, right, because of the limited 152 00:11:24,240 --> 00:11:28,720 quantity that you have. Is a bit like diamonds, right, 153 00:11:28,799 --> 00:11:33,440 So you don't have many, So then it's just economic 154 00:11:33,559 --> 00:11:36,879 rules demand and supply. If you don't really have a 155 00:11:36,919 --> 00:11:41,480 lot of supply, obviously price goes high. Is a bit 156 00:11:41,519 --> 00:11:44,080 the way that it works. 157 00:11:44,159 --> 00:11:47,320 Speaker 1: Yeah, they're very fast swimmers, are there to. 158 00:11:47,759 --> 00:11:53,519 Speaker 2: Believe, Yes, yes they do. They swim long distances and 159 00:11:54,159 --> 00:11:59,600 really really fast. However, they tend to be in the coast, 160 00:11:59,720 --> 00:12:02,080 need the coast because of the way that they eat 161 00:12:02,159 --> 00:12:07,679 Saudi and this is where we manage to spot that fish. 162 00:12:07,720 --> 00:12:11,360 And what we do is a technique not to actually 163 00:12:11,440 --> 00:12:15,519 fish it, but to capture. So what we do is 164 00:12:15,559 --> 00:12:19,320 a set where we throw the net, we capture the fish, 165 00:12:19,840 --> 00:12:22,759 and we try not to stress it. That's probably the 166 00:12:22,799 --> 00:12:27,399 most complicated part of it. Then we bring a pen 167 00:12:28,519 --> 00:12:31,720 that is connected to the net and then we transfer 168 00:12:31,799 --> 00:12:37,039 the fish into a pen. Thereafter then we are towing 169 00:12:37,120 --> 00:12:41,679 that pen into our farm. Normally we are feeding that 170 00:12:41,759 --> 00:12:47,360 fish for as much as one year. During that period 171 00:12:47,399 --> 00:12:51,840 of time, we are one of the farms, or probably 172 00:12:51,879 --> 00:12:54,879 the only farm around the world that is having a 173 00:12:54,919 --> 00:12:59,519 centralized fitting system. And what I mean be that. Imagine 174 00:12:59,559 --> 00:13:02,039 that you have one vessel in the middle of the 175 00:13:02,120 --> 00:13:06,159 farm and you have twenty pens connected to that vessel. 176 00:13:06,480 --> 00:13:09,320 On that vessel we bring all the sudding that we 177 00:13:09,360 --> 00:13:12,679 are fishing every day, and from that vessel we are 178 00:13:12,759 --> 00:13:16,600 pumping the sudding into the pens three times a day 179 00:13:17,399 --> 00:13:21,840 to society. We also have cameras inside every single pen 180 00:13:22,519 --> 00:13:26,399 at three different levels of debt. With those cameras, we 181 00:13:26,440 --> 00:13:30,879 are monitoring with artificial intelligence, the behavior of the fish, 182 00:13:31,000 --> 00:13:34,279 how much they eat, how they move, and this is 183 00:13:34,360 --> 00:13:38,039 how an operator on this centralized feeding system is pumping 184 00:13:38,559 --> 00:13:42,879 the right amount of booth. So then we grow that 185 00:13:43,000 --> 00:13:48,519 fash systematically to have what we call a steady size, 186 00:13:49,480 --> 00:13:53,519 a steady supply, anesthetic quality, which is the first value 187 00:13:53,519 --> 00:13:56,600 proposition that we bring to all our consumers. 188 00:13:57,919 --> 00:13:59,720 Speaker 1: Very sophisticated operation. 189 00:14:01,639 --> 00:14:05,919 Speaker 2: It is becoming very much sophisticated. It was not like this, 190 00:14:06,279 --> 00:14:08,840 I must say. You know, we were one of the 191 00:14:08,879 --> 00:14:12,200 few companies that twenty five years ago we started shoveling 192 00:14:12,720 --> 00:14:16,759 sudding into the fans really hate as you do. A 193 00:14:16,840 --> 00:14:20,360 stell have farms in Japan and many other places around 194 00:14:20,399 --> 00:14:23,559 the world. In our cases, we came to this level 195 00:14:23,600 --> 00:14:28,720 of sophistication as a result of obviously the engineering and 196 00:14:28,799 --> 00:14:33,399 the necessity of bringing an upgrade into the whole industry. 197 00:14:34,000 --> 00:14:37,960 So we started mimicking this idea from the salmon, which 198 00:14:38,039 --> 00:14:40,879 is not a secret or most of the salmon farms 199 00:14:41,519 --> 00:14:45,360 operate somehow like this. In our case, it was much 200 00:14:45,399 --> 00:14:49,320 more challenging because we don't fit with pellets, we don't 201 00:14:49,320 --> 00:14:52,679 fit with any artificial food. We just fit with souding 202 00:14:52,799 --> 00:14:57,720 on percent souding on the percent fresh not even frozen sadin. 203 00:14:59,279 --> 00:15:02,360 So in in our case it was much more challenging 204 00:15:02,480 --> 00:15:06,159 to have an engineering system that it was able to 205 00:15:06,320 --> 00:15:10,679 support the quality of the southing without destroying it. As 206 00:15:10,759 --> 00:15:13,840 you might not. Souding is composed eighty percent by water 207 00:15:14,519 --> 00:15:18,000 on the body mass composition, so if you don't treat 208 00:15:18,039 --> 00:15:21,559 the souding well, you will destroy it immediately and as 209 00:15:21,600 --> 00:15:24,519 a result of that, even the tuna will not eat it, 210 00:15:24,720 --> 00:15:27,799 so it will be a waste of food. So even 211 00:15:27,840 --> 00:15:31,799 in that particular case, we've been very meticulous in the 212 00:15:31,879 --> 00:15:37,799 way that the technology has been evolving and constructed and 213 00:15:37,919 --> 00:15:39,799 adapted to our tuna farm. 214 00:15:42,799 --> 00:15:48,240 Speaker 1: When you're when you're sitting there taking me wonder, it's 215 00:15:48,320 --> 00:15:51,200 obviously not the same as what we would class as 216 00:15:51,240 --> 00:15:54,919 a traditional farm. Maybe some here or they would have 217 00:15:55,039 --> 00:15:59,240 the small motors as we call them, and they would 218 00:15:59,279 --> 00:16:04,440 feed them and they would grow and get heavier. I 219 00:16:04,480 --> 00:16:07,519 don't think it's it's not quite the same, are you 220 00:16:07,879 --> 00:16:11,120 are you still want to feed them to get to 221 00:16:12,200 --> 00:16:14,399 odd with puld them. 222 00:16:15,320 --> 00:16:20,360 Speaker 2: Right now, as I was telling you, we really changed 223 00:16:20,399 --> 00:16:25,320 the rules on how the industry was behaving. Still two 224 00:16:25,440 --> 00:16:29,559 years ago, I can tell you that there were few 225 00:16:29,639 --> 00:16:32,799 companies in Mexico and they were all going out with 226 00:16:32,919 --> 00:16:36,279 their own vessels trying to get as much fish as 227 00:16:36,399 --> 00:16:40,440 possible because we had this system that is called Olympic fishing. 228 00:16:41,080 --> 00:16:44,159 So what it tells you is that you get out 229 00:16:44,679 --> 00:16:46,919 and get as much fish as you can get in 230 00:16:47,080 --> 00:16:50,440 the least amount of time. It's like giving a ball 231 00:16:50,559 --> 00:16:53,840 of eminem's to a bunch of kids and then tell 232 00:16:53,919 --> 00:16:56,320 them to eat as much. So you can imagine that 233 00:16:56,440 --> 00:17:00,159 it was a bit of a disaster, right. So but 234 00:17:00,320 --> 00:17:05,599 that change finally two years ago we enter into a 235 00:17:05,720 --> 00:17:09,680 new dynamic with the whole industry. And right now what 236 00:17:09,839 --> 00:17:12,359 we are doing is to catch the bigger fish, so 237 00:17:12,480 --> 00:17:15,880 there's no rush. Everyone is having their own take, and 238 00:17:16,000 --> 00:17:19,319 because of that, we just changed completely the rules of 239 00:17:19,400 --> 00:17:23,720 the game and the rules of engagement. Today we don't 240 00:17:23,759 --> 00:17:29,759 get any fish below eighty kilo, so a juvenile is 241 00:17:29,880 --> 00:17:33,119 considered on the twenty five kilos, just to give you 242 00:17:33,200 --> 00:17:37,079 an example, that was the case before. Today we are 243 00:17:37,240 --> 00:17:40,759 just getting adults. So we are getting adults at eighty 244 00:17:40,880 --> 00:17:44,440 kilo and then what we are doing is to fatten 245 00:17:44,559 --> 00:17:47,599 those adults. And then we just converted that fish from 246 00:17:47,640 --> 00:17:51,799 etikilo to probably hundred hundred and ten until we have 247 00:17:51,960 --> 00:17:56,039 that good fat content that I was talking to you about, yeah, 248 00:17:56,039 --> 00:17:58,240 and then the fish is ready to hit the places. 249 00:18:00,279 --> 00:18:04,079 This is not a growth period, it's actually a fattening period. 250 00:18:04,440 --> 00:18:09,680 And that's why obviously it requires much less auding, it 251 00:18:09,920 --> 00:18:15,319 requires obviously less working capitals if we want to talk 252 00:18:15,319 --> 00:18:21,039 about the business, and obviously much more sustainable in all right, So, 253 00:18:21,240 --> 00:18:23,920 which is the main thing that we want to achieve 254 00:18:24,000 --> 00:18:26,400 at the end of the day, So we get a 255 00:18:26,440 --> 00:18:30,599 bit fished, that is requiring less audin, that is also 256 00:18:30,759 --> 00:18:34,880 requiring less time to fatten. And then at the end 257 00:18:34,920 --> 00:18:39,440 of the day that is also closing the cycle on 258 00:18:39,559 --> 00:18:45,000 the reproduction way to make sure that is reproducing several 259 00:18:45,079 --> 00:18:48,359 times before it is actually getting out of the water, 260 00:18:49,079 --> 00:18:52,200 which is what we want to achieve. And by doing 261 00:18:52,279 --> 00:18:56,960 all these steps right, then we have a much healthier industry. 262 00:18:57,799 --> 00:19:00,599 We have obviously a company that this requires hiring less 263 00:19:01,079 --> 00:19:04,799 working capital, and we are a company that is obviously 264 00:19:05,000 --> 00:19:07,680 much more sustainable of what we were already. 265 00:19:08,480 --> 00:19:14,039 Speaker 1: Yes, indeed, I don't know if the tuna is the 266 00:19:14,160 --> 00:19:19,599 same as let's say, well our traditional fish. If I 267 00:19:19,839 --> 00:19:23,519 was to be asked what my favorite cut is and 268 00:19:23,720 --> 00:19:26,960 what part of the fish, every time, I would say 269 00:19:27,279 --> 00:19:30,880 the belly, you have a glu choice. Would that be 270 00:19:30,960 --> 00:19:31,839 the same tuna? 271 00:19:32,599 --> 00:19:35,799 Speaker 2: I think it depends on the balladar, honestly speaking, you 272 00:19:35,920 --> 00:19:41,079 will see, especially in Japan, is highly overpriced. The belly 273 00:19:43,240 --> 00:19:47,319 is really about that, you know, they call it the 274 00:19:47,480 --> 00:19:50,960 toro and toro this is really the part that they 275 00:19:51,160 --> 00:19:54,440 like the most. But if you go to other places 276 00:19:54,720 --> 00:19:58,160 like Brazil, Mexico, Middle East, even some part of the US, 277 00:20:00,680 --> 00:20:03,559 they don't really see that part of the belly as 278 00:20:03,920 --> 00:20:07,160 something that it will be as lightful as probably another 279 00:20:07,240 --> 00:20:09,599 part of the body of the tuna. That's the true. 280 00:20:10,400 --> 00:20:14,599 So that's a challenge going forward for the company to 281 00:20:15,359 --> 00:20:19,200 do that market segmentation right, because if we do that right, 282 00:20:19,400 --> 00:20:21,599 that this means that a tuna should be cut in 283 00:20:21,720 --> 00:20:27,400 pieces to the light consumers in a very different way, 284 00:20:27,920 --> 00:20:30,240 and it's coming over from the same tuna. But if 285 00:20:30,279 --> 00:20:33,960 you're able to name it and labeled correctly, then you 286 00:20:34,119 --> 00:20:38,759 will have obviously an advantage in sending the right product 287 00:20:38,839 --> 00:20:41,200 with the right price to the right consumer. 288 00:20:43,440 --> 00:20:48,920 Speaker 1: Okay, yeah, we are seeing a move towards conscious consumerism. 289 00:20:49,559 --> 00:20:53,640 How does the demand for tresability and sustainability and high 290 00:20:53,759 --> 00:20:59,039 end markets like Japan and America dictate your daily operations 291 00:20:59,400 --> 00:21:00,559 in Mexico, Club. 292 00:21:02,279 --> 00:21:06,400 Speaker 2: Well, you mess a great question because I'm telling you 293 00:21:06,519 --> 00:21:10,279 know the whole company all the time that sustainability is 294 00:21:10,440 --> 00:21:13,839 on every decision that we made every day. It's not 295 00:21:14,160 --> 00:21:17,640 just a label or something that we want to achieve 296 00:21:17,880 --> 00:21:20,240 or something that we write on a piece of paper, 297 00:21:20,359 --> 00:21:24,079 but it is on every decision that we made. And 298 00:21:24,200 --> 00:21:27,920 it's true, it comes with a cost, and it comes 299 00:21:28,039 --> 00:21:32,119 with behaving also in a different way. Just to give 300 00:21:32,160 --> 00:21:36,480 you some examples on what sustainability means for Baja to 301 00:21:36,599 --> 00:21:39,759 start with, just told you the story on how we've 302 00:21:39,799 --> 00:21:43,640 had to change completely the way the industry operated you know, 303 00:21:43,880 --> 00:21:48,440 before going from Olympic fishing into now a more civilized 304 00:21:48,519 --> 00:21:52,519 way of fishing as I describe it, and then as 305 00:21:52,559 --> 00:21:56,480 a result, changing from twenty five kilowfish to eighty kilowfish, 306 00:21:56,759 --> 00:21:58,720 just in the way that we get out of the water. 307 00:22:00,079 --> 00:22:03,480 Top of that, the investments that are around the farm, 308 00:22:03,680 --> 00:22:06,480 in the way that we feed those fish. If I 309 00:22:06,640 --> 00:22:10,839 go even one step behind, every single fish that we 310 00:22:11,000 --> 00:22:13,759 take out of the water, even before we take it 311 00:22:13,880 --> 00:22:18,079 out of the water, there is two observers on each 312 00:22:18,200 --> 00:22:22,240 of our vessels writing every single thing that we do. 313 00:22:23,119 --> 00:22:27,200 So every single set that we do is registered by 314 00:22:27,279 --> 00:22:31,119 these two observers. One of these is the OBSERVERCE corresponds 315 00:22:31,160 --> 00:22:35,279 to the Mexican government to Conapesca in this case, and 316 00:22:35,400 --> 00:22:40,000 the other observer corresponds to ADDC, which is the Inter 317 00:22:40,279 --> 00:22:44,880 American Tuna Tropical Commission, and that's a regulated around the 318 00:22:44,960 --> 00:22:48,839 world that is checking that we do things the right way. 319 00:22:49,480 --> 00:22:55,160 So these two persons are registering on the books every 320 00:22:55,200 --> 00:22:59,400 single set on the amount of tones, on the coordinates 321 00:22:59,799 --> 00:23:02,920 that the fishes, and because of that, we are able 322 00:23:03,039 --> 00:23:08,240 to label that fish that goes into our pen. As 323 00:23:08,279 --> 00:23:11,359 a result of that, whenever we told those fish to 324 00:23:11,480 --> 00:23:16,079 our farm and grow that fish. We have identify that 325 00:23:16,279 --> 00:23:19,160 fish from the minute that we had that set in 326 00:23:19,279 --> 00:23:23,519 the vessel and through the period that we fought on 327 00:23:23,599 --> 00:23:26,839 the fish. We are still identifying every single piece that 328 00:23:26,960 --> 00:23:30,279 we have on the water because it goes on every 329 00:23:30,359 --> 00:23:32,799 single report that we give to the authorities on a 330 00:23:32,920 --> 00:23:36,519 monthly basis. Once we get that fish out of the water, 331 00:23:36,720 --> 00:23:39,440 the first thing that we do is to put a 332 00:23:39,559 --> 00:23:43,359 QR on the mouth with all the trace ability system 333 00:23:43,440 --> 00:23:46,559 that I just explained to you from the very origin, 334 00:23:47,119 --> 00:23:50,359 from the minute that we actually did the set till 335 00:23:50,440 --> 00:23:52,559 the minute that we took the fish out of the water, 336 00:23:53,200 --> 00:23:57,039 and thereafter, if we are sending this fish to whatever 337 00:23:57,160 --> 00:24:01,559 place in the world is, then the consumer will have 338 00:24:01,720 --> 00:24:05,480 the ability just to scan that QR and know what 339 00:24:05,680 --> 00:24:09,480 it is back to back the whole traceability chain. So 340 00:24:10,759 --> 00:24:12,920 all the things that I've described to require a lot 341 00:24:13,039 --> 00:24:20,599 of technology investment, innovation, equipment, gapex and many things that 342 00:24:20,759 --> 00:24:24,279 obviously consumer doesn't see, but for the company are important 343 00:24:24,359 --> 00:24:27,440 to achieve in order to make sure that we are 344 00:24:27,559 --> 00:24:28,759 here for many more years. 345 00:24:31,759 --> 00:24:38,160 Speaker 1: Yeah, it's Dummer above and the global economy, how do 346 00:24:38,279 --> 00:24:43,039 you balance a high cost of sustainable Turner ranch in 347 00:24:43,440 --> 00:24:46,960 with the markets fluctuate and price points. 348 00:24:48,880 --> 00:24:51,160 Speaker 2: Well, Jen, we are trying to get out of that 349 00:24:51,319 --> 00:24:56,160 fluctuation of price points. I think the most important part 350 00:24:57,440 --> 00:25:00,960 is that you take your product out of the commodity 351 00:25:01,200 --> 00:25:04,559 environment and that you are able actually to go to 352 00:25:04,720 --> 00:25:08,559 the higher end of the pyramid, which is the premium 353 00:25:08,680 --> 00:25:11,720 and even I would say it's super premium. In order 354 00:25:11,799 --> 00:25:15,160 to do that, this is why we invest so much 355 00:25:15,559 --> 00:25:20,839 into technology, product development, and even the way that we 356 00:25:21,000 --> 00:25:25,400 feed the fish. So I told you before that the 357 00:25:25,480 --> 00:25:29,839 first value proposition that we have is steady supply, steady size, 358 00:25:30,039 --> 00:25:34,079 and steadic quality. But we have some others which goes 359 00:25:34,200 --> 00:25:38,519 even with the temperature, with color of retention, with the flavor, 360 00:25:39,000 --> 00:25:42,599 with the fact that we are the only company around 361 00:25:42,640 --> 00:25:45,960 the world that is feeding on hundred percent sudding and 362 00:25:46,000 --> 00:25:51,279 one hundred percent fresh, that changed the flavor of the fish. Obviously, 363 00:25:51,400 --> 00:25:55,480 if you give any other type of even antibiotics, some 364 00:25:55,599 --> 00:25:59,200 of the companies are doing is going against the nature, 365 00:26:00,119 --> 00:26:02,880 trying to have affect that is in nature good right. 366 00:26:03,079 --> 00:26:06,279 So we are getting rid of all these things and 367 00:26:06,400 --> 00:26:09,279 trying to go to a space where we are alone 368 00:26:09,359 --> 00:26:12,799 with consumer and because we are alone with the consumer, 369 00:26:13,440 --> 00:26:19,359 then obviously we are not facing this type of price pluctuations, 370 00:26:19,920 --> 00:26:23,519 but we are obviously making a value proposition that is 371 00:26:23,640 --> 00:26:25,680 going over and above our competitors. 372 00:26:28,920 --> 00:26:33,720 Speaker 1: I would say, Manuel, they're pretty, They're very you're tuned, 373 00:26:33,759 --> 00:26:37,079 are very lucky, whether they're feeding on sardines. 374 00:26:38,640 --> 00:26:42,359 Speaker 2: We are blessed. And one of the things is obviously 375 00:26:42,599 --> 00:26:46,839 the strategic vision that even our founders have many years ago, 376 00:26:47,200 --> 00:26:50,720 which was to erect a company with these type of 377 00:26:50,920 --> 00:26:54,319 values and thinking. But the other thing that I must 378 00:26:54,400 --> 00:26:58,400 also confess is that we are blessed because of the 379 00:26:58,519 --> 00:27:02,240 location that we are. There is only four places in 380 00:27:02,359 --> 00:27:06,680 the world around the world that are having this abundance 381 00:27:06,720 --> 00:27:10,400 of Saudi and we are happen to be really at 382 00:27:10,440 --> 00:27:15,799 the end of the California Current, which is known because 383 00:27:15,880 --> 00:27:20,440 of its abundance on Saudi. So Saudin for us is there, 384 00:27:20,759 --> 00:27:25,039 and we are blessed to happen to reach the southern 385 00:27:25,119 --> 00:27:28,240 in a very short distance, so hence we can get 386 00:27:28,319 --> 00:27:31,160 it fresh, hence we can get it for a very 387 00:27:31,240 --> 00:27:35,640 competitive price, and hence we can continue feeding the tuna 388 00:27:36,079 --> 00:27:38,559 in the most natural way that it would happen as 389 00:27:38,599 --> 00:27:39,720 if they were white. 390 00:27:43,319 --> 00:27:46,079 Speaker 1: And I'm not going to say there's nichere, commented, it's 391 00:27:46,119 --> 00:27:51,079 obviously niches and everything, but it's a seasonal any part 392 00:27:51,160 --> 00:27:56,480 of it the cycle, I would. 393 00:27:56,319 --> 00:28:02,240 Speaker 2: Say, the tuna capturing, you can call it seasonal because, 394 00:28:02,359 --> 00:28:04,920 as I said, the water needs to be cold, So 395 00:28:05,079 --> 00:28:12,039 you will normally find this fish mostly between February and June, 396 00:28:13,000 --> 00:28:17,720 and then probably again you will see it in September December, 397 00:28:18,119 --> 00:28:22,079 which is normally when the water is getting colder during 398 00:28:22,200 --> 00:28:24,799 that part of the year. Obviously they are migrating to 399 00:28:24,960 --> 00:28:29,839 different temperatures. We don't know indeed where they are going, 400 00:28:30,680 --> 00:28:34,559 but two times of the year, what we identify that 401 00:28:34,680 --> 00:28:38,079 the fish is really near to the coast of Mexico, 402 00:28:38,240 --> 00:28:42,039 which is normally the place that we get there is 403 00:28:42,640 --> 00:28:47,160 between February and June, which is the best place for 404 00:28:47,319 --> 00:28:48,880 us to go there and get it. 405 00:28:50,920 --> 00:28:59,160 Speaker 1: Yeah, Okay, Obviously back forums, as a major employer in 406 00:28:59,279 --> 00:29:05,279 the reason region, how does a global export business specifically 407 00:29:05,440 --> 00:29:12,799 translate into long term economic stability for the local region community. 408 00:29:14,400 --> 00:29:18,240 Speaker 2: By being there, you know, there will be many ways 409 00:29:18,480 --> 00:29:22,119 probably for the company to segmentate and move operations here 410 00:29:22,200 --> 00:29:25,119 and there. And I think one of the things that 411 00:29:25,240 --> 00:29:29,680 we've seen is that our investors are really interested to 412 00:29:31,000 --> 00:29:33,279 stay there, to stay in Mexico and even to go 413 00:29:34,319 --> 00:29:37,400 on the sites and above. As a result of that, 414 00:29:38,960 --> 00:29:41,559 I don't know if you had, but just last year 415 00:29:41,720 --> 00:29:45,359 we bought a company that is complementary to the business 416 00:29:45,440 --> 00:29:49,119 that we do. The company's name is Baha Marine Foods. 417 00:29:49,519 --> 00:29:54,400 It's also there were our neighbors actually in Ensenada, and 418 00:29:54,599 --> 00:29:57,680 for many years there were partners in even processing some 419 00:29:57,839 --> 00:30:02,559 of our fish. Now, as we're sharing with you, obviously 420 00:30:02,759 --> 00:30:07,480 sudd in abundance in the region, as other elements that 421 00:30:07,599 --> 00:30:10,559 we can use as fish milk and fish oil. So 422 00:30:11,039 --> 00:30:14,920 our investors were really interested in trying to get that 423 00:30:16,519 --> 00:30:25,160 footprint wider and obviously to establish more a kind of 424 00:30:25,599 --> 00:30:30,119 company that is not only you know, going on fishing tuna, 425 00:30:30,240 --> 00:30:35,559 but is more on a protein platform in all senses. 426 00:30:35,759 --> 00:30:38,640 And that protein can be tuna, could be fish, milk, 427 00:30:38,680 --> 00:30:42,200 could be fish old, could be omigas, could be many 428 00:30:42,279 --> 00:30:47,480 other things that even for human consumptual. Very soon we 429 00:30:47,559 --> 00:30:50,880 will we will get there. So the company has been 430 00:30:50,920 --> 00:30:57,359 investing a lot on and then Zenada, not only obviously 431 00:30:57,640 --> 00:31:00,880 increasing the gapex and that the knowledge that we have 432 00:31:01,000 --> 00:31:05,079 in our operations but also looking at other complementary business 433 00:31:05,240 --> 00:31:09,200 I think we have now I've seen the company that 434 00:31:09,400 --> 00:31:13,680 is really making a big commitment with the community in Mexico. 435 00:31:13,839 --> 00:31:17,880 The Ensenada community, I think is a great place for 436 00:31:18,039 --> 00:31:21,079 us to be and as a result of that, we 437 00:31:21,200 --> 00:31:23,920 are now in the business of fish meal and fish auto. 438 00:31:26,480 --> 00:31:29,079 Speaker 1: Yeah, funny, I was good to ask you. One of 439 00:31:29,119 --> 00:31:31,440 the questions I was going to ask you was about 440 00:31:31,559 --> 00:31:38,880 your investment and buying the acquite in the marine foods. 441 00:31:39,519 --> 00:31:46,720 This is integration, reduced financial risk by stabilizing feed costs, 442 00:31:46,880 --> 00:31:51,039 which are probably one of your largest expenses are the. 443 00:31:52,960 --> 00:31:58,440 Speaker 2: Well, as I said, we fish on the sadin fresh 444 00:31:58,920 --> 00:32:02,160 in order to feed the to now. But it happens 445 00:32:02,200 --> 00:32:05,400 to be the case that sometimes we have enough sudin 446 00:32:05,519 --> 00:32:09,440 right that we don't need that saudin anymore at the farm, 447 00:32:10,359 --> 00:32:12,799 and then you still have some saudin on the vessel. 448 00:32:13,000 --> 00:32:18,160 So here the dilemma was can we use that sadin 449 00:32:18,200 --> 00:32:21,960 in a different way, And the answer was yes, right, 450 00:32:22,119 --> 00:32:27,240 So instead of taking that sud into our farm, there 451 00:32:27,319 --> 00:32:32,960 is obviously some other uses that we can give to 452 00:32:33,039 --> 00:32:35,519 the saudin that at the end of the day also 453 00:32:35,680 --> 00:32:39,480 will diversify the portfolio that we have in terms of risk. 454 00:32:40,240 --> 00:32:42,839 Coming to your question, obviously, it is a very smart 455 00:32:42,920 --> 00:32:47,759 way to the risk the company and at the end 456 00:32:47,839 --> 00:32:49,960 of the day have a better use on the Saudi 457 00:32:50,519 --> 00:32:54,200 and then to have this complementary business that goes hand 458 00:32:54,279 --> 00:32:56,799 in hand with the activity that we have, which indeed 459 00:32:56,920 --> 00:33:01,599 is fishing Sudin as well. So Bahamarin was a perfect 460 00:33:01,640 --> 00:33:04,039 fit for all the things that I just described. But 461 00:33:04,200 --> 00:33:06,680 on top of that, we have also a facility over 462 00:33:06,720 --> 00:33:10,200 there that is processing our tuna. The tuna that we 463 00:33:10,359 --> 00:33:16,319 harvest three times a week around the clock is brought 464 00:33:16,319 --> 00:33:20,319 to wins Anada to this facility, and obviously we need 465 00:33:20,440 --> 00:33:24,039 to give take out the gods and do the whole 466 00:33:24,119 --> 00:33:27,119 process of cleaning that fish, putting it into a box. 467 00:33:28,119 --> 00:33:32,039 Now we are going given one step further in terms 468 00:33:32,079 --> 00:33:35,359 of new product development. So we have new processing lines 469 00:33:35,400 --> 00:33:39,960 that are cutting the fish in different portions and trades, 470 00:33:40,039 --> 00:33:44,720 and so we will get a complimentary business by nature 471 00:33:45,119 --> 00:33:49,440 into Bahamarin if we use that facility the right way. 472 00:33:50,160 --> 00:33:51,960 And when you look at the fish mill and the 473 00:33:52,039 --> 00:33:54,440 fish oil, and I will go a bit more on 474 00:33:54,519 --> 00:33:58,119 the fish oil space, there is something that we call 475 00:33:58,440 --> 00:34:01,799 upgrade to human because normally you can use the fish 476 00:34:01,839 --> 00:34:05,359 oil also for pet food and many other things, but 477 00:34:05,519 --> 00:34:10,159 you can also think on fish oil for dha, you 478 00:34:10,239 --> 00:34:12,559 know which you will see it on all the infant 479 00:34:12,599 --> 00:34:17,239 formulas or you will see it also now in adult beverages, 480 00:34:18,159 --> 00:34:22,440 whereby there's a boost of energy to some of the 481 00:34:22,519 --> 00:34:25,440 people that is sixty and above. And you have these 482 00:34:25,559 --> 00:34:29,159 kind of products that are using omigas, dha and many 483 00:34:29,239 --> 00:34:31,519 other things that you can struck from this name Zadi. 484 00:34:32,400 --> 00:34:34,880 So that's the way that I think we would like 485 00:34:35,000 --> 00:34:37,280 to drive the company going. 486 00:34:37,119 --> 00:34:43,119 Speaker 1: Forward really good, really good. Beyond direct employment, how has 487 00:34:43,280 --> 00:34:49,039 the presence of our world class aquaculture facility influenced the 488 00:34:49,119 --> 00:34:55,400 local economy and the technical skull set of the coastal workforce. 489 00:34:57,599 --> 00:35:00,800 Speaker 2: Yes, I think it's having a big impact. In general. 490 00:35:02,320 --> 00:35:07,119 We obviously employed people from the region. Whenever needed, we 491 00:35:07,320 --> 00:35:11,280 bring experts from abroad because sometimes you need people that 492 00:35:11,679 --> 00:35:14,960 has been there already or is having a deeper knowledge 493 00:35:15,000 --> 00:35:18,119 on some specific things. So this is how we bring 494 00:35:18,239 --> 00:35:22,840 people from Peru, from Chile, from many other places, just 495 00:35:22,920 --> 00:35:26,199 to make sure that these knowledge is passed to the 496 00:35:26,320 --> 00:35:31,920 next generation. And that's next generation is people from Mexico 497 00:35:32,079 --> 00:35:35,440 which is already working with us. We are very proud 498 00:35:35,559 --> 00:35:38,719 to be a company that is well recognized for local 499 00:35:38,800 --> 00:35:43,360 employment and local development with the communities. So our corporate 500 00:35:43,480 --> 00:35:48,480 social responsibility goes beyond the fact that we employ local people, 501 00:35:48,639 --> 00:35:51,000 but we do many other activities around. 502 00:35:55,559 --> 00:35:58,360 Speaker 1: How do you ensure that the growth of our global 503 00:35:58,519 --> 00:36:03,320 brand doesn't cut at the expense of local resources or 504 00:36:03,400 --> 00:36:07,519 small scale pushing traditions. 505 00:36:10,000 --> 00:36:16,639 Speaker 2: Well, listen, there is always this line right between the 506 00:36:16,960 --> 00:36:22,159 local fishermen or even the tessenal fishing that we have 507 00:36:22,360 --> 00:36:27,039 also in Ensenada, and the big names or the big companies, 508 00:36:27,159 --> 00:36:31,199 because we are not the only one, of course, to 509 00:36:31,360 --> 00:36:34,559 be very honest with you, this is something that we've 510 00:36:34,599 --> 00:36:40,639 been working with the authorities already for many years. One 511 00:36:40,719 --> 00:36:45,119 of the main things that we've been promotely promoting, sorry 512 00:36:45,880 --> 00:36:53,079 and even pushing very hot, is to draw these marks 513 00:36:53,440 --> 00:36:57,159 on the bay and on the coastal area whereby we 514 00:36:57,360 --> 00:37:02,360 know the local communities are fishing, and we normally don't 515 00:37:02,400 --> 00:37:07,280 go there because otherwise you will disrupt the activity that 516 00:37:08,000 --> 00:37:12,480 they have. So without having a document signed with them, 517 00:37:13,239 --> 00:37:15,639 we respect a lot to each other, and I think 518 00:37:15,880 --> 00:37:18,480 that's the beauty of having a community, right to work 519 00:37:18,519 --> 00:37:22,599 as one. There's a space for everyone, and the ocean 520 00:37:22,719 --> 00:37:26,599 is big enough for everyone to do their own activity 521 00:37:26,880 --> 00:37:32,039 without having any friction. So we respect a lot of 522 00:37:32,079 --> 00:37:34,920 the local communities, and we've been working with the authorities 523 00:37:35,079 --> 00:37:38,679 ready for many many years to even plot those areas 524 00:37:38,960 --> 00:37:43,400 on the raiders of our ships, so our ships normally 525 00:37:43,480 --> 00:37:49,559 will never go to those areas as many other areas 526 00:37:49,599 --> 00:37:51,840 that you have now in Mexico, because as you know, 527 00:37:52,480 --> 00:37:55,599 Mexico as a country has also a big promoter of 528 00:37:55,880 --> 00:37:59,880 the reserve areas of fishing or natural reserve areas of 529 00:38:00,079 --> 00:38:04,760 fishing and have signed many international agreements and commitments not 530 00:38:04,880 --> 00:38:06,480 to fish in a specific places. 531 00:38:09,039 --> 00:38:12,880 Speaker 1: Okay, yeah, it's to look ahead. How do you see 532 00:38:13,000 --> 00:38:18,800 the relationship between global seafood market and coastal communities changing 533 00:38:19,039 --> 00:38:20,880 over the next number of years. 534 00:38:24,079 --> 00:38:27,840 Speaker 2: Well, I think that if we are smart enough both right, 535 00:38:28,880 --> 00:38:34,400 we should find a way to have a space and 536 00:38:34,480 --> 00:38:38,760 the consumer both. And I think that's the case today 537 00:38:40,199 --> 00:38:45,320 in case of of our fish. Whenever you go to 538 00:38:46,039 --> 00:38:51,599 even market, you will see label over there wildfish, which 539 00:38:51,679 --> 00:38:54,679 is normally coming from their testle fishing or the type 540 00:38:54,679 --> 00:38:58,119 of fishery that you are describing. You will see also 541 00:38:58,639 --> 00:39:01,280 farm fish, and that's the main level that you see 542 00:39:01,320 --> 00:39:04,039 between one and the other one. Obviously there is a 543 00:39:04,119 --> 00:39:07,239 big price difference between one and the other one because 544 00:39:07,280 --> 00:39:10,920 it is having completely different attributes, mainly the fat and 545 00:39:11,039 --> 00:39:14,000 the time that it was lapped for one fish and 546 00:39:14,079 --> 00:39:17,840 the other one to come finally to the consumer. But 547 00:39:17,960 --> 00:39:20,079 at the end of the day, I think there's consumer 548 00:39:20,159 --> 00:39:24,280 for both. Right, so you will see the consumer or 549 00:39:24,400 --> 00:39:27,320 some of the consumers are interested molt on a wildfish 550 00:39:27,760 --> 00:39:30,920 for whatever reason. It is even the appliances that they get, 551 00:39:32,599 --> 00:39:35,639 and there is some other consumers. Is that the consumers 552 00:39:35,679 --> 00:39:38,639 that are interested in our fish because they are looking 553 00:39:38,679 --> 00:39:41,599 for different type of attributes. And as I was saying, 554 00:39:41,800 --> 00:39:45,360 if we are smart enough, both of us, I think 555 00:39:45,440 --> 00:39:50,360 we should just keep on driving that dynamic going forward, 556 00:39:51,039 --> 00:39:54,119 respecting a lot of what we do, knowing that there 557 00:39:54,239 --> 00:39:58,400 is place for both. And I think we shouldn't be 558 00:39:58,760 --> 00:40:01,119 thinking that one is and then the other one is 559 00:40:01,320 --> 00:40:04,639 just the different elements that you have in a consumer 560 00:40:04,760 --> 00:40:10,199 basis that obviously you can do what you do in 561 00:40:10,280 --> 00:40:13,960 the best possible ways, and there is always going to 562 00:40:14,039 --> 00:40:16,440 be one for you to pick, right. 563 00:40:17,440 --> 00:40:21,840 Speaker 1: Yeah, you know when you said that, Manuel I was 564 00:40:21,920 --> 00:40:25,880 just my our son. One of our sons is and 565 00:40:26,320 --> 00:40:31,159 lives in Australia, and it's only when we started going 566 00:40:31,440 --> 00:40:34,960 and visiting them that I it's the first time I've 567 00:40:35,039 --> 00:40:39,960 ever seen it. You might see it's common, but I 568 00:40:40,119 --> 00:40:41,920 just picked up and when you were saying a bit 569 00:40:42,039 --> 00:40:48,960 wild un farmed on a menu in Australia, they tell 570 00:40:49,079 --> 00:40:52,280 you on the menu if it's wild or farmed. And 571 00:40:52,360 --> 00:40:59,679 I think it's fantastic, Yes, yes, absolutely, because everybody can 572 00:40:59,760 --> 00:41:02,159 just what works for them. 573 00:41:03,960 --> 00:41:06,280 Speaker 2: Yeah, at the end of the day, consumer is always 574 00:41:06,320 --> 00:41:10,920 having the last word on everything, right, So we just 575 00:41:11,039 --> 00:41:14,760 need to give the choices to consumer and do our 576 00:41:14,920 --> 00:41:17,800 best to make sure that that the end of consumer 577 00:41:17,920 --> 00:41:21,159 is well informed and that they are the one speaking 578 00:41:21,239 --> 00:41:22,079 one or the other one. 579 00:41:24,079 --> 00:41:26,280 Speaker 1: Yeah, when you were talking about the consumer, is there 580 00:41:26,320 --> 00:41:31,480 anything you will wish the average consumer understood about the journey, 581 00:41:32,039 --> 00:41:35,480 say of a blue and tuna from the waters of 582 00:41:35,719 --> 00:41:41,440 Baka to their dinner plate, anything that you feel. 583 00:41:41,239 --> 00:41:46,360 Speaker 2: That well there is. There is always this misinformation right 584 00:41:46,719 --> 00:41:53,159 about bluefeing going extinguished because of the big companies of fishing, 585 00:41:53,280 --> 00:41:57,159 and so that is not the case already for many 586 00:41:57,239 --> 00:42:01,199 many years. I think we are one of the few 587 00:42:01,320 --> 00:42:06,559 stories around the world whereby in nature, the commitment of 588 00:42:06,679 --> 00:42:12,280 the companies, the scientific community, and all regulators including the 589 00:42:12,360 --> 00:42:16,440 governments of all the countries starting from Mexico, the US, 590 00:42:16,559 --> 00:42:20,719 Japan and many others, they were really in agreement to 591 00:42:20,880 --> 00:42:26,000 do something right. And the result of that was that 592 00:42:26,239 --> 00:42:30,559 last year, instead of waiting for another five years to 593 00:42:30,679 --> 00:42:34,639 achieve the objectives that were set, we achieved them last year. 594 00:42:34,960 --> 00:42:37,519 And as a result of that we got the first 595 00:42:38,480 --> 00:42:44,079 small increase on the quota because after all these scientific 596 00:42:44,480 --> 00:42:47,519 evaluation then they came up with a result that it 597 00:42:47,719 --> 00:42:51,920 was showing that abundance of the bluefin is back into 598 00:42:52,000 --> 00:42:55,400 the ocean. So there is very few spieces around the 599 00:42:55,480 --> 00:42:58,199 world that can't actually say or tell a story as 600 00:42:58,280 --> 00:43:00,960 compelling as the one that we have in blue Fin. 601 00:43:02,320 --> 00:43:05,599 The result of that, over the last twenty years, many 602 00:43:05,719 --> 00:43:10,599 companies die in between. Right, Most of the companies didn't 603 00:43:10,639 --> 00:43:15,360 survive that thing. And why they didn't survive because there 604 00:43:15,519 --> 00:43:18,880 was obviously a quota given with a minimum amount of 605 00:43:19,000 --> 00:43:23,159 fish that you could get right. So, and here I 606 00:43:23,239 --> 00:43:27,320 think the big learning for everyone is that sometimes you 607 00:43:27,480 --> 00:43:32,280 want big gains right small investments turn it into big 608 00:43:32,360 --> 00:43:35,679 capital just from one day to the next one. This 609 00:43:35,880 --> 00:43:38,599 is not an industry what you would do something like 610 00:43:39,800 --> 00:43:41,920 if your mindset is that, then you should better go 611 00:43:42,039 --> 00:43:48,239 to different a different industry. But nobody here takes time, 612 00:43:48,480 --> 00:43:50,920 right even to grow the first, to see how the 613 00:43:51,000 --> 00:43:54,119 first is evolving and then to get that quote increase 614 00:43:54,239 --> 00:43:58,960 have taken a lot of time. And that thing goes 615 00:43:59,039 --> 00:44:02,960 with the mindset of person that really thinks on long 616 00:44:03,039 --> 00:44:07,519 term instead of short that really thinks on how to 617 00:44:07,599 --> 00:44:10,639 give the best product to consumer, and really thinks on 618 00:44:10,840 --> 00:44:15,280 how to be really sustainable in nature, not just by saying. 619 00:44:15,039 --> 00:44:22,760 Speaker 1: It okay, okay and lead twenty twenty three, or just 620 00:44:23,320 --> 00:44:28,840 a few years ago a major consortiums acquired a majority 621 00:44:29,000 --> 00:44:35,239 stick and back Acroa Farms. What specific operational expertise have 622 00:44:35,400 --> 00:44:40,159 these global investors brought to the table to drive your 623 00:44:40,320 --> 00:44:41,320 growth strategy? 624 00:44:43,719 --> 00:44:46,800 Speaker 2: Well, it's fascinating. So some of the people sometimes ask 625 00:44:46,880 --> 00:44:49,440 me that question, and they're asking me, like Manuel, how 626 00:44:49,480 --> 00:44:51,360 do you deal with all of them at the same 627 00:44:51,440 --> 00:44:54,320 time as you can imagine you are on a board 628 00:44:54,599 --> 00:44:58,559 of big number of people the smarter than you to 629 00:44:58,679 --> 00:45:02,599 start with, and I have in front of me sometimes 630 00:45:02,679 --> 00:45:05,960 twenty twenty five people in front of me and asking 631 00:45:06,039 --> 00:45:09,840 all these sort of smart questions and trick questions and 632 00:45:11,400 --> 00:45:16,960 very intelligent questions, pushing me really to the edge, which 633 00:45:17,039 --> 00:45:22,599 is fascinating. Honestly speaking, It is fascinating because coming back 634 00:45:22,639 --> 00:45:27,280 to your question and the answer, to have a vast 635 00:45:27,480 --> 00:45:30,760 group of people that is having these kind of experience, 636 00:45:31,119 --> 00:45:35,760 many of them going on agriculture and obviously other type 637 00:45:35,760 --> 00:45:40,480 of business development. It is at the end of the day, 638 00:45:40,719 --> 00:45:44,840 giving me a vast array of expertise and people that 639 00:45:45,000 --> 00:45:50,800 I can take and pick up from the different projects 640 00:45:50,840 --> 00:45:53,199 that we have and from the different problems that we 641 00:45:53,320 --> 00:45:59,920 face sometimes. So I can tell you that specifically Continent 642 00:46:00,280 --> 00:46:04,280 Brain EGI called TIBA are probably the three major ones 643 00:46:04,360 --> 00:46:08,440 that are coming with these expertise, one in agriculture, the 644 00:46:08,559 --> 00:46:12,320 other one in general in logistics, the other one in 645 00:46:12,480 --> 00:46:17,320 general also on the agro in Mexico. And you know, 646 00:46:17,599 --> 00:46:20,920 is fascinating just to have that kind of people with you. 647 00:46:22,199 --> 00:46:25,039 Obviously it's challenging for the reasons that I explained, but 648 00:46:25,760 --> 00:46:29,199 I really love it. Whenever I have a problem, I 649 00:46:29,400 --> 00:46:31,679 define the problem with the nature and then I know 650 00:46:32,480 --> 00:46:35,280 who is the right person to talk to, and I 651 00:46:35,400 --> 00:46:37,360 think that's the beauty to have a boat with these 652 00:46:37,440 --> 00:46:40,159 kind of people. I must also say that we also 653 00:46:40,280 --> 00:46:45,320 have on the boat still two of the main instrumental 654 00:46:45,440 --> 00:46:49,679 people that were with us from the very beginning in 655 00:46:49,760 --> 00:46:55,079 the company. We call them the founders, but indeed they 656 00:46:55,119 --> 00:46:58,639 were there after the first people who started the company, 657 00:46:58,679 --> 00:47:01,400 but they were the ones really reshape the company the 658 00:47:01,480 --> 00:47:04,599 way that it is today. One is from Iceland and 659 00:47:04,679 --> 00:47:08,039 the other one is Mexican. And these two gentlemen they 660 00:47:08,079 --> 00:47:12,599 are still there. And the board also nurturing the conversation, 661 00:47:13,079 --> 00:47:16,719 challenging me but also being that nice year that you 662 00:47:16,840 --> 00:47:19,159 can have when you don't know what you do and 663 00:47:19,280 --> 00:47:25,039 then you have someone that has been there before able 664 00:47:25,199 --> 00:47:29,079 to help and here and mostly give you the best 665 00:47:29,119 --> 00:47:33,159 advice in the best interest. So I really love it, 666 00:47:33,639 --> 00:47:36,239 you know, the fact that we have that type of 667 00:47:36,920 --> 00:47:40,239 board and investors. It gives a new dynamic to the 668 00:47:40,280 --> 00:47:44,480 whole company because it respects the value of where we 669 00:47:44,679 --> 00:47:49,480 came here. And it also propels the company to be 670 00:47:49,599 --> 00:47:53,360 obviously a big corporate and then to keep on growing 671 00:47:53,480 --> 00:47:54,159 the way that we do. 672 00:47:57,760 --> 00:47:59,280 Speaker 1: So you're in a good place. 673 00:48:01,280 --> 00:48:02,960 Speaker 2: Yes, I cannot complain at all. 674 00:48:04,440 --> 00:48:11,400 Speaker 1: Good. It great. The global farm Plufen market is recovering 675 00:48:11,519 --> 00:48:14,760 from the price crash in twenty twenty four where the 676 00:48:14,880 --> 00:48:20,320 Mediterranean prices plummeted due to weak demand. How did bacha 677 00:48:20,440 --> 00:48:26,360 Acra Farm's weather that storm and how have you adjusted 678 00:48:26,440 --> 00:48:31,880 your financial hedge in to protect against similar future potility. 679 00:48:33,159 --> 00:48:40,320 Speaker 2: Well, it's very difficult to hedge against that as honestly, 680 00:48:41,199 --> 00:48:43,599 I can tell you that the answer is no, No, 681 00:48:44,000 --> 00:48:47,440 we did it. It's very complicated that you hedge for 682 00:48:47,599 --> 00:48:50,880 something like this, especially if you don't know where the 683 00:48:50,960 --> 00:48:54,760 price will go. Right, and we were having so much 684 00:48:54,800 --> 00:48:58,559 biomass on the water. I can tell you we are 685 00:48:58,599 --> 00:49:00,800 a big farm and we were a lot of fish 686 00:49:00,840 --> 00:49:03,840 in the water when that thing happened. Obviously we were 687 00:49:03,920 --> 00:49:06,679 optimistic about the future, but at the end of the day, 688 00:49:06,719 --> 00:49:09,320 you're seeing that prices are going down, that's probably not 689 00:49:09,440 --> 00:49:14,280 the best place to be. So no, we didn't. There 690 00:49:14,400 --> 00:49:17,679 was no way for us to act probably different in 691 00:49:17,760 --> 00:49:20,639 a way, and I have thought about these many manys. 692 00:49:21,719 --> 00:49:26,840 So talking to obviously the investors and the way that 693 00:49:27,000 --> 00:49:29,760 the outlook was there, we knew that it would be 694 00:49:29,840 --> 00:49:34,320 a difficult year. We knew that we had to continue 695 00:49:34,400 --> 00:49:39,599 being consistent with what the company was building at that time, 696 00:49:40,239 --> 00:49:42,960 and as I told you, the strength of the company 697 00:49:43,480 --> 00:49:47,320 went really on differentiating the product from the rest. So 698 00:49:47,480 --> 00:49:50,079 we knew that that investment will pay off at the 699 00:49:50,239 --> 00:49:53,039 end of the day, because if we were to have 700 00:49:53,880 --> 00:49:57,199 a more consistent fish, a more consistent color, a more 701 00:49:57,320 --> 00:50:02,840 consistent way of being so sustainable, more consistent way of 702 00:50:03,000 --> 00:50:07,159 feeding the tuna, and we were building on every single 703 00:50:07,280 --> 00:50:10,280 line of those capacities, at the end of the day, 704 00:50:10,360 --> 00:50:15,960 we would be in a better place. Now. I'm glad 705 00:50:16,000 --> 00:50:19,079 to say that that proved to be true. Right, twenty 706 00:50:19,159 --> 00:50:22,440 twenty five was a completely different year for us, much 707 00:50:22,599 --> 00:50:26,519 much better. And I am not complaining about twenty twenty 708 00:50:26,559 --> 00:50:28,639 four by the way. I'm just saying that it was 709 00:50:28,679 --> 00:50:31,079 a tough year. But at the end of the day, 710 00:50:31,760 --> 00:50:34,039 I think the key learnings here is that if you 711 00:50:34,119 --> 00:50:37,880 are consistent on your long term strategy, you might have 712 00:50:38,719 --> 00:50:41,519 a bad year or rainy season, that the end of 713 00:50:41,519 --> 00:50:44,559 the day, you keep on building on those strengths, then 714 00:50:44,639 --> 00:50:48,519 you will be getting a better year on the following 715 00:50:48,639 --> 00:50:49,599 one for sure. 716 00:50:51,920 --> 00:50:54,239 Speaker 1: No, that's that's very good. 717 00:50:54,280 --> 00:50:54,679 Speaker 2: That just. 718 00:50:56,280 --> 00:51:04,760 Speaker 1: Tells us that it's a very professional run. Operations. Credit 719 00:51:04,880 --> 00:51:07,519 to you on that that just comes luded clear. 720 00:51:11,159 --> 00:51:13,280 Speaker 2: Yeah, well, we we are trying, we are trying to 721 00:51:13,400 --> 00:51:17,800 do our best and that and yeah saying those values 722 00:51:17,840 --> 00:51:23,119 are also coming from from before even h. We have 723 00:51:23,280 --> 00:51:26,760 this this change on dynamic on the on the company 724 00:51:26,800 --> 00:51:27,440 a few years ago. 725 00:51:29,159 --> 00:51:37,639 Speaker 1: Yep, the as a saying we have here Manuel, when 726 00:51:37,719 --> 00:51:44,199 the going gets tough, the tough get going, kay. 727 00:51:45,599 --> 00:51:45,639 Speaker 2: H. 728 00:51:46,719 --> 00:51:51,679 Speaker 1: And that seems to sum up your situation. You just dig, 729 00:51:51,920 --> 00:51:54,480 you just dig and then get on with it. 730 00:51:56,079 --> 00:51:59,800 Speaker 2: Well, the island is on the fishing industry, honestly, the 731 00:52:00,400 --> 00:52:06,599 nothing comes easy here. Yeah. I mean, I'm blessed to 732 00:52:07,000 --> 00:52:10,079 be in this place, honestly, and I love what I do. 733 00:52:11,119 --> 00:52:16,239 But nothing comes easy, that's for sure. So it's really 734 00:52:16,320 --> 00:52:18,639 for the type of people that wants to be here 735 00:52:18,639 --> 00:52:22,800 in the long run. And it's really the type of 736 00:52:22,880 --> 00:52:27,760 people that really loves this type of adrenaline of also 737 00:52:29,119 --> 00:52:31,760 knowing that you really need to work hard to get 738 00:52:31,800 --> 00:52:32,119 it done. 739 00:52:34,639 --> 00:52:39,440 Speaker 1: Yeah. I would be known if just hypothetical, I know, 740 00:52:39,920 --> 00:52:45,239 if Japan's market share sashimi grill tune were to decline 741 00:52:45,440 --> 00:52:51,639 and maybe consumers to a high praise sensitivity, which I 742 00:52:51,719 --> 00:52:54,599 don't think is a case, could there be a shift 743 00:52:54,800 --> 00:52:56,920 towards the US market. 744 00:52:57,760 --> 00:53:03,599 Speaker 2: That already happened, Jim, Yes, do you know these new 745 00:53:03,760 --> 00:53:12,280 generations are behaving differently right, So as you know, aging 746 00:53:12,360 --> 00:53:18,519 population in Japan is high, new population in Japan is 747 00:53:19,639 --> 00:53:23,559 with different type of behaviors. So consumption in general in Japan, 748 00:53:23,639 --> 00:53:26,039 if you look at the economics, is going down for 749 00:53:26,280 --> 00:53:31,599 several years already and as a result of that, we 750 00:53:31,800 --> 00:53:35,440 pick up at the right time to develop all the markets. 751 00:53:36,159 --> 00:53:39,440 I can tell you that five years ago, ninety percent 752 00:53:39,519 --> 00:53:43,840 of our cells were in Japan. Today only ten percent 753 00:53:43,920 --> 00:53:45,400 of our sales are on in Japan. 754 00:53:48,679 --> 00:53:51,519 Speaker 1: Yes, that's a big, big shift. 755 00:53:52,440 --> 00:54:00,440 Speaker 2: Yes, yes, yes, yes, so yes, And you know necessity 756 00:54:00,559 --> 00:54:03,239 right when you see obviously the opportunity, but also the 757 00:54:03,360 --> 00:54:05,760 need when you are in a market that you see 758 00:54:05,840 --> 00:54:11,480 that every year is much more complicated to differentiate your product, 759 00:54:11,559 --> 00:54:15,360 to position your product well, to be in a space 760 00:54:15,400 --> 00:54:17,760 where you are along with consumer, where you have the 761 00:54:17,840 --> 00:54:23,280 recognition also from consumer on your brand, then that might 762 00:54:23,360 --> 00:54:25,239 not be the best place to be. Then you need 763 00:54:25,320 --> 00:54:28,920 to find higher graft, right, and that push companies to move, 764 00:54:29,039 --> 00:54:32,239 and that was our case and we found better places 765 00:54:32,280 --> 00:54:36,360 to move. And now obviously we see what is happening 766 00:54:36,440 --> 00:54:39,239 in Japan, but we see it now with different eyes. 767 00:54:39,400 --> 00:54:42,599 Still is a very important market for us because it 768 00:54:42,639 --> 00:54:47,719 will always be is the mecca of tuna. What I 769 00:54:47,760 --> 00:54:50,559 we like it or not so, But at the end 770 00:54:50,639 --> 00:54:56,039 of the day, in terms of sales impact, I can 771 00:54:56,119 --> 00:54:58,559 tell you that there is only a very little portion 772 00:54:58,760 --> 00:55:03,880 of our P and L that is impacted by japan 773 00:55:04,719 --> 00:55:10,800 prices and demand. So and yet we really need to 774 00:55:10,840 --> 00:55:14,440 develop the consumer some other places around the world. You know, 775 00:55:14,760 --> 00:55:20,920 this keep thing keeps evolving. I study at the University 776 00:55:21,000 --> 00:55:24,960 of Chicago, and I had this professor, which, by the way, 777 00:55:26,199 --> 00:55:29,320 later on he won an over Prize of Economy. His 778 00:55:29,480 --> 00:55:32,840 name is Richard Taylor, and he wrote his wonderful book 779 00:55:32,960 --> 00:55:38,280 The Notch So I had really the opportunity to be 780 00:55:38,440 --> 00:55:41,480 with him and to learn from him. It's my professor. 781 00:55:41,599 --> 00:55:46,880 He was all the time telling me that consumers are 782 00:55:47,000 --> 00:55:53,320 following something that is called Heisenberg principle, which is quantum physics, right, 783 00:55:54,000 --> 00:56:00,239 And what it is saying is that the only the 784 00:56:00,400 --> 00:56:06,400 mirror impulse of trying to measure the exact position of 785 00:56:06,519 --> 00:56:10,760 a particle in the space, just by trying to do it, 786 00:56:12,000 --> 00:56:16,119 the intention of measuring it will move that particle to 787 00:56:16,280 --> 00:56:19,360 a different position, so you will never get it right. Right, 788 00:56:20,639 --> 00:56:22,679 And he was all the time telling us exactly that 789 00:56:22,960 --> 00:56:27,079 that's consumer. Whenever you think you know where the consumer is, 790 00:56:27,840 --> 00:56:30,760 it is alway moving to another space. And that's why 791 00:56:30,880 --> 00:56:33,679 I need to notch consumer right. That's why they called 792 00:56:34,039 --> 00:56:36,239 the book is the book is called the nuts. But 793 00:56:37,559 --> 00:56:40,440 that's exactly what is happening today. You know, before we 794 00:56:40,559 --> 00:56:45,039 were having consumers that were worried about quality and sustainability, 795 00:56:45,360 --> 00:56:49,559 and then we were having consumers that were worried about 796 00:56:49,599 --> 00:56:54,000 the experience, right we were having Now we have consumers 797 00:56:54,039 --> 00:56:58,639 that are worried about embodying the brand as I define it. 798 00:56:59,679 --> 00:56:59,800 Speaker 1: Uh. 799 00:57:00,039 --> 00:57:03,039 Speaker 2: And if you look at histogram, TikTok and all different 800 00:57:03,079 --> 00:57:07,400 sources of social media, then you have consumers that want 801 00:57:07,480 --> 00:57:10,920 to be represented by a brand that's a different thing. 802 00:57:11,360 --> 00:57:15,559 That's what I call embodying the brand. So this brand 803 00:57:15,679 --> 00:57:20,199 defines me as a consumer. And because these brand defines 804 00:57:20,320 --> 00:57:23,360 me as a consumer not only because of the experience 805 00:57:23,440 --> 00:57:25,480 and the values and the way that it behaves, but 806 00:57:25,920 --> 00:57:29,920 because of many of the other things that are related 807 00:57:30,039 --> 00:57:33,679 to me, then I decide to be with this company 808 00:57:33,760 --> 00:57:37,599 and this brand and this product that is happening today. 809 00:57:37,719 --> 00:57:41,480 So really the game now is how to be in 810 00:57:41,599 --> 00:57:44,519 that space again with that consumer that is looking for 811 00:57:44,679 --> 00:57:46,519 all these things together at the same time. 812 00:57:48,400 --> 00:57:49,360 Speaker 1: That's fascinating. 813 00:57:51,519 --> 00:57:51,679 Speaker 2: You know. 814 00:57:52,400 --> 00:57:58,119 Speaker 1: I admire ear honesty as well. Manuel, And I was 815 00:57:58,199 --> 00:58:02,320 just thinking when you first started talking on this point 816 00:58:02,880 --> 00:58:11,280 and you mentioned necessity, Well, my dear old late mother 817 00:58:12,480 --> 00:58:16,199 used to have a great saying she used, necessity is 818 00:58:16,280 --> 00:58:17,719 the mother of invention. 819 00:58:18,599 --> 00:58:23,360 Speaker 2: Yeah. Absolutely, I love it, absolutely absolutely. 820 00:58:24,840 --> 00:58:32,960 Speaker 1: As a Mexican based company's exporting globally, how do fluctuations 821 00:58:33,280 --> 00:58:38,440 in say the Mexican peso against the US dollar and 822 00:58:38,599 --> 00:58:42,760 Japanese yen impact your overall profitability? 823 00:58:44,199 --> 00:58:47,280 Speaker 2: Yeah, we we have an impact because all the operations 824 00:58:47,320 --> 00:58:53,320 are in Mexico. If you saw, probably the last four years, 825 00:58:54,159 --> 00:58:58,079 Mexican peso was strong, so we were actually having a 826 00:58:58,159 --> 00:59:01,199 benefit out of that. Then last year we had a 827 00:59:01,280 --> 00:59:06,000 vessel that it was fluctuating a lot, and then you 828 00:59:06,159 --> 00:59:11,519 see a pesto again this year that is strengthening going 829 00:59:11,599 --> 00:59:15,119 a bit up and down. Generally speaking, when you are 830 00:59:15,159 --> 00:59:17,800 really here for long term gym and you have all 831 00:59:17,880 --> 00:59:23,679 your operation here in Mexico, I mean there's no really 832 00:59:24,199 --> 00:59:27,199 a hetch that you can do against PESO that will 833 00:59:27,320 --> 00:59:32,480 last long enough, right, So out of that whatever you 834 00:59:32,639 --> 00:59:39,079 do is just speculation. So I think what investors have 835 00:59:39,199 --> 00:59:41,840 decided is that if we are investing in the country 836 00:59:41,920 --> 00:59:45,039 and we know the operations are here, is because at 837 00:59:45,079 --> 00:59:48,559 the end of the day, you already have the risk 838 00:59:48,679 --> 00:59:52,639 embedded and to the company operation and we are fine 839 00:59:53,480 --> 00:59:57,559 to deal with that type of risk. So yeah, it 840 00:59:57,760 --> 00:59:59,840 comes with I would say that it comes with the 841 01:00:00,400 --> 01:00:03,159 and with the nature of being in a place that 842 01:00:04,079 --> 01:00:09,920 it is having that probably downside if you would like 843 01:00:10,000 --> 01:00:12,440 to call it in terms of effects, but on the 844 01:00:12,559 --> 01:00:16,199 other positive sides, I mentioned the fact that we are 845 01:00:16,280 --> 01:00:21,119 in a marvelous place to fish bluefin. We are in 846 01:00:21,199 --> 01:00:24,559 a very fantastic place in order to fish for the suling. 847 01:00:25,440 --> 01:00:29,280 We have one of the best locations to happen to 848 01:00:29,480 --> 01:00:33,840 host our farm for the fish to grow. And those 849 01:00:34,079 --> 01:00:37,800 things are also part of the operational risk of the company, 850 01:00:38,360 --> 01:00:42,440 which obviously are over and above of whatever the EFS 851 01:00:42,559 --> 01:00:44,800 impact that we have on a day to day basis. 852 01:00:46,039 --> 01:00:52,320 Speaker 1: Yees, as well as pervading employment. Have you reinvested directly 853 01:00:52,440 --> 01:00:55,079 into the local infrastructure. 854 01:00:55,519 --> 01:01:00,679 Speaker 2: Yeah, definitely, yes, a lot. Yeah, yeah, we do you know, 855 01:01:04,440 --> 01:01:07,039 fishing in general, and you will hear it not only 856 01:01:07,119 --> 01:01:09,199 from me, but from many other people that are in 857 01:01:09,280 --> 01:01:15,480 the industry in general, requires a lot of capex, starting 858 01:01:15,519 --> 01:01:19,639 from the vessel. You know, we are somehow fighting with nature, 859 01:01:19,840 --> 01:01:25,760 right the sea is never forgiven. The nets, the equipments, 860 01:01:25,920 --> 01:01:30,960 the technology that you use, even the materials that you 861 01:01:31,119 --> 01:01:34,159 have on the vessel itself requires a lot of maintainance. 862 01:01:34,239 --> 01:01:39,639 So because of all of that, the company has also 863 01:01:40,000 --> 01:01:43,360 invested a lot in having their own facilities to maintain 864 01:01:43,440 --> 01:01:47,639 the vessels, which we do next to the post position 865 01:01:47,840 --> 01:01:51,480 that we have. So we have our own crew and equipment, 866 01:01:51,960 --> 01:01:55,800 and we have developed these people even to learn this 867 01:01:56,039 --> 01:02:00,920 type of techniques and even expertise on engineering, to have 868 01:02:01,199 --> 01:02:06,159 different type of maintenance workshops we call it. So even 869 01:02:06,239 --> 01:02:11,119 from fixing the nets, from the hydraulics, the mechanics, the raiders, 870 01:02:11,239 --> 01:02:15,039 the zoners, all these things, we had to build that 871 01:02:15,199 --> 01:02:20,480 infrastructure locally in order to have people around us that 872 01:02:20,599 --> 01:02:24,119 are able to maintain and service the vessel in the 873 01:02:24,199 --> 01:02:27,159 fastest way possible. I relate these to the f one 874 01:02:27,679 --> 01:02:29,880 when you see a car coming into the pits and 875 01:02:30,000 --> 01:02:33,480 then getting out in two seconds. Right in our case, 876 01:02:33,480 --> 01:02:35,480 we want to do the same. We want the vessel 877 01:02:35,559 --> 01:02:39,599 to come, then we do a pit stop and then 878 01:02:39,679 --> 01:02:42,199 we put the vessel back into the sea, which is 879 01:02:42,239 --> 01:02:46,800 the best way that obviously assets can have a return 880 01:02:47,119 --> 01:02:49,119 on the investment that we do. 881 01:02:51,440 --> 01:02:58,880 Speaker 1: Yeah. Yeah, With climate events like El Nino threatening global 882 01:02:59,079 --> 01:03:06,440 tuna abandon what role does specialized parametric insurance or other 883 01:03:06,599 --> 01:03:11,760 financial instruments play and protect in your local operations and 884 01:03:12,719 --> 01:03:14,239 families that depend on them. 885 01:03:16,079 --> 01:03:22,400 Speaker 2: Ah, there is no direct threat on the abundance. It's 886 01:03:22,440 --> 01:03:26,760 not that the fish is dying because of the temperature increase. 887 01:03:27,320 --> 01:03:30,079 What is happening is that the fish is going to 888 01:03:30,159 --> 01:03:33,719 a different places. Right. So it's like probably you if 889 01:03:33,760 --> 01:03:36,679 you are in a room of what the degree is temperature, 890 01:03:36,920 --> 01:03:38,920 then you want to be in a place where you 891 01:03:39,039 --> 01:03:42,159 have air conditioning, right, so you will move and you 892 01:03:42,239 --> 01:03:45,880 will move probably the way that you move around those places. 893 01:03:46,000 --> 01:03:48,360 And this is happening this year. So we've seen the 894 01:03:48,440 --> 01:03:52,000 fish moving to other places where we normally never see 895 01:03:52,039 --> 01:03:57,159 the fish going before. And by definition, obviously you need 896 01:03:57,239 --> 01:04:00,599 to be a smarter and try to go to those 897 01:04:00,679 --> 01:04:03,840 places and find the fish again, I mean, still is there. 898 01:04:03,920 --> 01:04:05,800 It's not that he's dying, but just moving in a 899 01:04:05,840 --> 01:04:09,960 different pattern. So biologically speaking, the fish is still there. 900 01:04:10,039 --> 01:04:12,760 The abundance is there, and the reproduction is happening, but 901 01:04:13,119 --> 01:04:17,760 just not in the same way and route that probably 902 01:04:17,840 --> 01:04:20,880 you saw it before. Now, to answer the second part 903 01:04:20,920 --> 01:04:23,280 of your question, which is of where we have some 904 01:04:23,480 --> 01:04:32,519 sort of financial hedge against that, obviously we do. There's 905 01:04:32,559 --> 01:04:35,760 a big investment of working capital right which is called 906 01:04:36,639 --> 01:04:40,440 living fish on the water. So we have a big 907 01:04:40,559 --> 01:04:50,000 group of reinsurance issuing a big insurance policy every year 908 01:04:50,360 --> 01:04:53,480 to protect. Obviously the fish that we have over there 909 01:04:54,119 --> 01:04:56,400 now at the end of the day is just the protection. 910 01:04:57,199 --> 01:04:59,880 What we want to do is obviously to act for 911 01:05:00,519 --> 01:05:03,920 before something like that is happening, or if we see 912 01:05:03,960 --> 01:05:06,639 any threat to the fish that we have, and for 913 01:05:06,760 --> 01:05:10,119 those we have a lot of protocols. From to start, 914 01:05:10,840 --> 01:05:14,559 we do monitoring on the temperature water, on the algae 915 01:05:14,679 --> 01:05:17,119 that we have on the water, even on the pollution 916 01:05:17,320 --> 01:05:20,320 that sometimes we find with the water. We work a 917 01:05:20,400 --> 01:05:24,840 lot with Noah in San Diego, which is alerting us 918 01:05:25,639 --> 01:05:29,000 every time that they see a changing pattern on the water, 919 01:05:30,079 --> 01:05:34,079 even the different algies that you can find, and so 920 01:05:34,880 --> 01:05:38,480 so that triggers alarms in our farm and in our 921 01:05:38,639 --> 01:05:41,519 protocols to move even the fish eventually out of the 922 01:05:41,599 --> 01:05:45,440 place that we are uh huh. 923 01:05:47,320 --> 01:05:55,800 Speaker 1: Yeah, yeah, I've acquired processing plants and fishing vessels. There 924 01:05:55,840 --> 01:05:58,599 is an x major capital injection going. 925 01:06:01,199 --> 01:06:04,239 Speaker 2: Well, we just want to keep up going global. I 926 01:06:04,519 --> 01:06:07,719 obviously cannot give more details of what we want to 927 01:06:07,840 --> 01:06:12,599 do next, but I think in general terms, we see 928 01:06:12,840 --> 01:06:16,119 Bahack of Arms being a global company and trying to 929 01:06:16,239 --> 01:06:20,719 have a bigger stake and consumer worldwide. Not only in 930 01:06:20,800 --> 01:06:23,800 bluefin because I was explaining, we are also entering in 931 01:06:23,880 --> 01:06:28,599 some other categories as fish meal, visual and obviously we 932 01:06:30,039 --> 01:06:32,760 want to go big, We want to go global, and 933 01:06:34,280 --> 01:06:37,000 at the end of the day, we want to prove 934 01:06:37,079 --> 01:06:41,880 that Mexico doesn't have to choose between scale and sustainability. 935 01:06:42,079 --> 01:06:46,480 We can lead the world with both. If we do 936 01:06:46,639 --> 01:06:50,239 this right, our lasting impact won't just be to have 937 01:06:50,400 --> 01:06:54,280 great vesh but it will shift actually the standards, so 938 01:06:54,639 --> 01:06:59,119 higher quality, full traceability, respect for the ocean, and a 939 01:06:59,199 --> 01:07:06,920 mindset that is really long term values obviously beat short structure. 940 01:07:06,960 --> 01:07:10,400 And every time I want people to look back and 941 01:07:10,519 --> 01:07:14,239 say that we really help to redefine what Mexicans see, 942 01:07:14,320 --> 01:07:20,280 what means globally, and it's not cheap, it's not commody dize, 943 01:07:20,440 --> 01:07:24,679 but it's really this type of premium, trusted and responsible 944 01:07:25,519 --> 01:07:27,840 product that he's coming from Mexican hands. 945 01:07:30,840 --> 01:07:36,199 Speaker 1: Okay. Given the current skill of the company and the 946 01:07:36,320 --> 01:07:42,719 backing of institutional investors, it's the future public listing or 947 01:07:42,840 --> 01:07:49,719 further consolidation and the American bluefin sector part of a 948 01:07:49,800 --> 01:07:51,760 long term financial roadmap. 949 01:07:53,000 --> 01:07:57,000 Speaker 2: No, No, I don't think so. I think you know, 950 01:07:57,320 --> 01:08:01,280 our group of investors is very solid for the time being. 951 01:08:01,320 --> 01:08:07,760 I don't see these happening. People is really committed with 952 01:08:08,039 --> 01:08:14,320 the strategy that we had for the company, so there's 953 01:08:14,360 --> 01:08:16,079 no need for us to go that path. 954 01:08:18,119 --> 01:08:23,399 Speaker 1: Okay, yeah, yeah, Well that's good. That's good that you're that. 955 01:08:23,880 --> 01:08:30,319 That tells anybody listening that you're in control and you're 956 01:08:30,399 --> 01:08:37,319 not just constantly trying to find something. You're in control. 957 01:08:38,640 --> 01:08:41,319 Speaker 2: Well done, Thank you, thank you for that. 958 01:08:41,680 --> 01:08:50,319 Speaker 1: I The February twenty twenty six FAO Global Globefish Report 959 01:08:50,520 --> 01:08:55,800 shows a strong price recovery for bluefin tuna with high 960 01:08:56,520 --> 01:09:04,159 value segments, experience in stables, seasonal three peaks, global trade 961 01:09:04,399 --> 01:09:10,239 value increasing and twenty twenty four supported by aquaculture growth 962 01:09:10,479 --> 01:09:14,960 and rising demands and a sashimi market. Do you see 963 01:09:15,520 --> 01:09:16,479 that's continuing? 964 01:09:18,239 --> 01:09:20,600 Speaker 2: Yeah, I believe so. I believe so, And that would 965 01:09:20,640 --> 01:09:25,239 depend on how much more sophisticated also we become consumer 966 01:09:25,399 --> 01:09:28,399 is there trying to find new ways even to have 967 01:09:28,640 --> 01:09:32,720 some sort of experience with a product. And as long 968 01:09:32,760 --> 01:09:35,760 as we do this right, I believe that there is 969 01:09:36,000 --> 01:09:40,399 still some places where we can go and still dry 970 01:09:40,600 --> 01:09:45,600 price even higher. As I said, there's a limited amount 971 01:09:45,680 --> 01:09:49,239 of supply. So if you're able to recognize your brind 972 01:09:49,319 --> 01:09:52,159 with a different value, then there's a place for you 973 01:09:52,359 --> 01:09:56,399 to be with consumer and obviously have a better impact 974 01:09:56,800 --> 01:10:00,159 in terms of the willingness to pay that you have 975 01:10:00,640 --> 01:10:01,079 from them. 976 01:10:03,720 --> 01:10:11,600 Speaker 1: Okay, yeah, yeah, Well says that it's looking the future 977 01:10:11,720 --> 01:10:12,319 is looking good. 978 01:10:13,479 --> 01:10:16,000 Speaker 2: Well, we hope for the best and we work out 979 01:10:16,439 --> 01:10:17,279 is to be true. 980 01:10:18,159 --> 01:10:21,439 Speaker 1: As we say here Manuel, if you're the worst, but 981 01:10:21,600 --> 01:10:28,119 hope for the best. Where can our listeners follow you online? 982 01:10:29,039 --> 01:10:31,000 Your social social media presence? 983 01:10:33,800 --> 01:10:40,039 Speaker 2: I think I have an account on linking. Normally, I 984 01:10:40,199 --> 01:10:43,279 am not an active user. I'm more of a passive 985 01:10:43,399 --> 01:10:47,760 user to be very frank with you, But the company 986 01:10:47,960 --> 01:10:52,960 is having you know, Instagram pages at Luvina you will 987 01:10:53,000 --> 01:10:55,840 find us over there. We try to be with consumer 988 01:10:55,920 --> 01:10:59,119 all the time, trying to show what we do, how 989 01:10:59,199 --> 01:11:01,000 we do it, and the type of events that we 990 01:11:01,079 --> 01:11:04,960 also organize around the world. So if you're interested to 991 01:11:05,039 --> 01:11:11,039 be how the product relates with chefs, restaurants, consumers, I 992 01:11:11,119 --> 01:11:13,399 think the best place to find us is on Instagram 993 01:11:13,560 --> 01:11:19,720 and TikTok. As I said, at blue Fina, you will 994 01:11:19,760 --> 01:11:20,560 see us over there. 995 01:11:22,319 --> 01:11:27,960 Speaker 1: Brilliant, brilliant. As CEO, what do you want the lasting 996 01:11:28,239 --> 01:11:32,880 impact of Baca Aqua Farms to be on the Mexican 997 01:11:33,000 --> 01:11:34,000 seafood industry? 998 01:11:37,000 --> 01:11:39,520 Speaker 2: Well, as I was saying, I want to lead with 999 01:11:39,600 --> 01:11:45,840 the example. Mexico is recognized for many wrong things. I 1000 01:11:46,000 --> 01:11:48,960 want this to be one of the right things to 1001 01:11:49,079 --> 01:11:55,399 be recognized for. As we recognize tequila and mariachi, then 1002 01:11:56,239 --> 01:11:58,720 we should be able to recognize ones that we have 1003 01:11:58,880 --> 01:12:01,039 also one of the best things industries in terms of 1004 01:12:01,119 --> 01:12:05,920 aguaculture and bluefin and I believe we can achieve that 1005 01:12:06,119 --> 01:12:08,840 we are on the right place. We have the right people, 1006 01:12:09,520 --> 01:12:13,239 which is mainly the thing that it requires. This is 1007 01:12:13,359 --> 01:12:18,000 not coming just by fishing or vessels, but it's coming 1008 01:12:18,079 --> 01:12:20,239 out of the people that you have in the company. 1009 01:12:21,239 --> 01:12:23,520 I do believe that we have the right people to 1010 01:12:24,000 --> 01:12:31,560 achieve something as global as we said. Really, I see 1011 01:12:31,600 --> 01:12:35,039 the faces on the people committed to what we call 1012 01:12:35,199 --> 01:12:39,720 this year the two two six K, which is twenty 1013 01:12:39,920 --> 01:12:43,159 twenty six, and it's coming from the two oh two 1014 01:12:43,319 --> 01:12:48,720 five K, which is the twenty twenty five. Last year 1015 01:12:49,000 --> 01:12:51,880 we call it the two O two because we wanted 1016 01:12:51,960 --> 01:12:55,840 to redo the company and redo the innovation, and the 1017 01:12:56,000 --> 01:12:58,800 five K was five thousand tons that we wanted to 1018 01:12:58,880 --> 01:13:02,199 sell in one year and we did it. So this 1019 01:13:02,399 --> 01:13:04,920 year we're looking for the two two six K, So 1020 01:13:06,239 --> 01:13:09,520 hopefully by the year and I can come back to 1021 01:13:09,640 --> 01:13:11,439 you and tell you that we did it again. But 1022 01:13:12,359 --> 01:13:15,359 you know, aiming high. It always requires to have the 1023 01:13:15,600 --> 01:13:20,119 right people with the right commitment in order to to 1024 01:13:20,319 --> 01:13:24,800 go the full bust and really give the ex draft 1025 01:13:24,840 --> 01:13:28,319 for to make sure that we are recognized worldwide for 1026 01:13:28,520 --> 01:13:30,680 something different just just bad news. 1027 01:13:32,119 --> 01:13:39,000 Speaker 1: It certainly impressed me. Manuel. Let you have your targets, 1028 01:13:39,159 --> 01:13:42,199 you know where you're wanting to go, but you don't 1029 01:13:42,319 --> 01:13:47,319 just jump at it. You're very professional. Operations. 1030 01:13:49,880 --> 01:13:53,439 Speaker 2: Yes, I think what we have done in terms of 1031 01:13:53,560 --> 01:13:59,239 the operation setup is amazing. Honestly, I'm all the time, 1032 01:13:59,399 --> 01:14:05,319 very proud all the time showing these to everyone, because 1033 01:14:05,399 --> 01:14:10,800 I think it's really a lot of work, many years 1034 01:14:11,319 --> 01:14:13,880 that were put into that thing to make it happen. 1035 01:14:14,039 --> 01:14:17,279 So it's just fair for me to recognize all the 1036 01:14:17,319 --> 01:14:20,680 people that it was working to achieve that. And it's 1037 01:14:20,760 --> 01:14:26,960 only fair also for people to realize that we are 1038 01:14:27,079 --> 01:14:30,680 really in a place and with a technology and with 1039 01:14:30,840 --> 01:14:37,760 an operational setup that you know, many even other industries 1040 01:14:37,840 --> 01:14:41,000 would like to have. So I think it's a great 1041 01:14:41,079 --> 01:14:43,279 work that the people have done in order to come 1042 01:14:43,800 --> 01:14:44,560 along this way. 1043 01:14:46,520 --> 01:14:49,479 Speaker 1: What would your advice to be be to somebody like 1044 01:14:49,680 --> 01:14:53,800 me who wanted to buy a fresh piece of tuna 1045 01:14:54,520 --> 01:14:59,199 and cook it? What would you what would be your recommendation? 1046 01:15:00,720 --> 01:15:04,079 Speaker 2: I would say that you should start with some niggity's 1047 01:15:05,520 --> 01:15:09,600 there's a piece of tune on top and some steam 1048 01:15:09,760 --> 01:15:14,119 rise at the bottom. They normally put a little touch 1049 01:15:14,520 --> 01:15:21,159 of wasabi in between, and then you put that thing 1050 01:15:21,319 --> 01:15:23,640 one piece in your mouth all at the same time. 1051 01:15:25,760 --> 01:15:32,079 Try to take some akami, toro and toto in that combination. 1052 01:15:34,920 --> 01:15:37,520 Start from the pinky one all the way to the 1053 01:15:37,600 --> 01:15:41,520 red one, and you will see the transition and flagwork 1054 01:15:41,520 --> 01:15:44,720 from one place to the other one. I think it's 1055 01:15:44,920 --> 01:15:48,279 just a very good way to start from there. Then 1056 01:15:48,520 --> 01:15:51,760 you will experience something different if this is the first 1057 01:15:51,800 --> 01:15:55,520 time that you're trying it, and if not, then probably 1058 01:15:55,640 --> 01:15:59,039 you will evolve immediately into some sort of sashimi, which 1059 01:15:59,119 --> 01:16:03,920 is another type of h tuna cording that that you 1060 01:16:04,000 --> 01:16:10,159 will also do to enjoy it. Is my case, I 1061 01:16:10,560 --> 01:16:13,319 always start with any gities because it gives you this 1062 01:16:13,560 --> 01:16:16,560 rare combination and having the soft rise in your mouth 1063 01:16:16,680 --> 01:16:21,600 with the tuna and with that little soy sauce on 1064 01:16:21,720 --> 01:16:26,079 top which is really watering into your mouth, and the 1065 01:16:26,479 --> 01:16:28,560 tuna is just melting like butter. 1066 01:16:29,520 --> 01:16:37,560 Speaker 1: Yeah. I think the sashimi is a brilliant combination between 1067 01:16:37,800 --> 01:16:42,479 all of the tuna. You have the sabi, the pickled ginger, 1068 01:16:43,399 --> 01:16:47,840 and the soy. I think it's an amazing combination of flavors. 1069 01:16:48,640 --> 01:16:50,760 Speaker 2: Yeah, I agree with you. I agree with you. 1070 01:16:51,920 --> 01:16:55,279 Speaker 1: And then and they all they all put something, they 1071 01:16:55,359 --> 01:16:57,079 all give something different. 1072 01:16:59,159 --> 01:17:03,479 Speaker 2: Yes, yes, indeed, Well when you'll I'll just. 1073 01:17:04,000 --> 01:17:06,119 Speaker 1: Stay able, fold up and I'd just like to thank 1074 01:17:06,159 --> 01:17:11,600 you very much. That's really really, really interesting and my goodness, 1075 01:17:11,680 --> 01:17:17,359 what I've like professional operation. Commend you on it, and 1076 01:17:17,600 --> 01:17:18,800 good luck for the future. 1077 01:17:19,760 --> 01:17:22,680 Speaker 2: Jim, you are welcome to come to in Snana anytime 1078 01:17:22,760 --> 01:17:25,279 you want. We would love to have you here and 1079 01:17:25,399 --> 01:17:28,479 show you all the things that were just stalk face 1080 01:17:28,560 --> 01:17:31,760 to face, and then we will have even sometimes you 1081 01:17:31,840 --> 01:17:33,479 have some good wine and some tuna. 1082 01:17:34,239 --> 01:17:39,399 Speaker 1: We well to be to be honest with you, I've 1083 01:17:39,680 --> 01:17:46,880 actually arranging for our conversation last night and I was 1084 01:17:46,960 --> 01:17:52,680 actually had the area on the map looking looking where 1085 01:17:52,720 --> 01:17:52,960 you are. 1086 01:17:53,960 --> 01:17:59,479 Speaker 2: That's the start. You're welcome a tripe. Yes, excellent, Thank you, 1087 01:18:00,840 --> 01:18:02,079 Thank you very much for the time. 1088 01:18:02,159 --> 01:18:02,279 Speaker 1: Je