ASMI assesses salmon industry's downturn.

• Position: Alaska Seafood Marketing Institute - Commercial Fishing Focus - Industry Overview

While lenders struggle with the poor season, the state-run Alaska Seafood Marketing Institute (ASMI) is facing other problems tied to the industry. Facts compiled from ASMI's "Salmon 2000," a 120-page report prepared last spring on challenges confronting the salmon industry, tell a gloomy tale:

* In 1980, Alaska salmon harvests accounted for 41 percent of the world salmon supply. A decade later, that number stood at 29 percent.

* The market-share decrease happened at the same time that Alaska salmon production increased 50 percent.

* The market share of farmed salmon -- salmon that are hatched, raised and harvested in captivity -- has grown from 1 percent of the world supply 10 years ago to 28 percent in 1990.

* Norway alone spent more than $11 million overseas to promote its farmed salmon in 1990, while other leading world producers pushed up that figure to $20 million combined. By comparison, Alaska spent only $6 million in 1990 to promote fresh, frozen and canned salmon overseas.

ASMI's executive director, Kim Elton of Juneau, says the statistics are sobering, but not insurmountable. "It's not that we've got too much salmon, we just don't have enough salmon eaters," he says.

A decade ago, Alaska salmon was a price maker on the market and the entire industry was driven by production. "That has really changed. But it's not too late, I think, if we recognize what's happening in the marketplace," Elton says.

What's happening includes a skyrocketing worldwide supply of salmon. In 1976, for example, total world supply was 878 million pounds. In 1990, the scales hit 2 billion pounds.

The fishing industry already provides the institute with twice the level of state funding, at $3.2 million annually. All of that money is earmarked for local, or domestic, seafood promotion.

Much more is spent on overseas marketing. In 1991, ASMI received $8.8 million in federal funding for an 18-month period. This year's allocation of $8.5 million for a 12-month period represents an average monthly increase from $488,000 to $710,000.

As a stipulation to receiving the federal money, ASMI must spend the cash on foreign promotion. Although the foreign marketing budget is substantial, ASMI also recognizes more attention is required at home, Elton says.

In 1990, ASMI spent $1.3 million on advertising in the United States for all seafood types. By comparison, California raisin growers spent $8.5 million on their "heard it through the grapevine" campaign in 1990; the...