may subsidize the remaining losses of this operation. The Asian Carp population has caused an overwhelming amount of damage to the Mississippi and Illinois River systems and affected local residents. Along with out-competing native fresh-water fish species for food and threatening a $7 billion sport-fishing industry, Asian Carp have damaged property and even caused serious injuries due to their tendency to jump out of water upon hearing motor noises.18 The Illinois state government has already subsidized some efforts to reduce the Asian Carp population. The Obama administration spent $51.5 million in 2012 to reduce their numbers and prevent the fish from spreading to the Great Lakes where they may cause even greater destruction.19 Illinois has already granted financial incentives to those involved in the carp industry. Along with paying fishermen to directly remove carp from waterways just south of Chicago, Illinois has given $2 million in funding to one of the largest frozen carp exporters, Big River Fish, to help develop additional plants to flash-freeze carp for export.20 Schafer Fisheries too has received hundreds of thousands of dollars in state grant money to purchase additional carp processing equipment.21 If this partnership is successful, government may be willing to further subsidize the operations of Schafer Fisheries. Not only would government be supporting the needy through the fish given to Feeding Illinois, but it would also save money by minimizing the development of other costly, carp-reducing mechanisms and by preventing thousands of dollars in potential damage. Moreover, if Asian Carp were to spread to the Great Lakes, the $15 billion Illinois shipping industry could be threatened by a forced closing of Chicago’s
8
THE CALL FOR CORPORATE ACTION
navigation locks and subsequent legal action.22 Government subsidies might only be temporary; but as Asian Carp gain domestic popularity, demand would increase, causing prices to increase as well. This shift would then relieve the need for government subsidy.
The Market for Asian Carp Must be Developed
In order for Schafer Fisheries to sell Asian Carp fillets in America, a domestic market must be created. The fish currently holds a weak reputation as a food dish for several reasons. First, people are discouraged by the very name of the fish. The word “carp” holds a negative connotation because it is often associated with the American Carp, which feeds off river floors and is consequently thought of as a “dirty fish.” Furthermore, people are well aware that the Asian Carp is an invasive species. Professor Julie Anderson explains, “You hear about it so much on the news as a nuisance, a problem. People don’t associate nuisances with a good dinner.”23 In addition, the fish itself is extremely unattractive. Restaurant owner David Carrier elaborates, “The shape was salmon-like, with a bull head. It kind of looked like a character from Return of the Jedi.”24 Yet regardless of the associations and contrary to popular belief, the fish can taste delicious. Chef Phillip Foss states, “It’s a very good fish. About as good of a freshwater fish as I’ve found, period. Very rich.”25 Some of these problems have been dealt with in the past, and with the help of Silverfin Promotion LLC, many of them can be overcome through marketing. Led by world-renowned head chef Phillippe Parola, Silverfin Promotion LLC has aimed to remove the negative stigma from Asian Carp. It has also worked to produce more factories to ship frozen fish fillet
meals. Having cooked for President Gerald Ford and George W. Bush, as well as being featured on The Food Network, Chef Parola holds a personal endorsement as a critically acclaimed professional chef.26 He has been promoting Asian Carp under the name “Silverfin” to get rid of its negative perception. This renaming strategy has worked with various fish in the past, including the Patagonian Toothfish, also known as “Chilean Sea Bass.” Once similarly criticized for its ugly appearance and unappealing name, it is now ironically an overly popular food endangered due to overfishing. With Chef Parola’s strong reputation, the name “Silverfin” might just stick.
Schafer Fisheries and Silverfin Promotion LLC Complement Each Other
If Schafer Fisheries partnered with Silverfin Promotion LLC in the production of Asian Carp fish fillets, Silverfin Promotion LLC could save money while improving Schafer Fisheries’ fish fillets and increase sales by bolstering demand in the domestic market. Currently, Chef Parola plans to build facilities to process, research, and market Asian Carp. Silverfin Promotion LLC could avoid high start-up costs by partnering with Schafer Fisheries and using its existing processing facilities instead of building them from scratch. Rather than using the money to establish new filleting facilities, Silverfin Promotion LLC could use its capital to fund product creation and marketing campaigns. Chef Parola plans to sell four Asian Carp products: Blackened Cajun Fillets, Pecan Crusted Fillets, Lemon Meuniere Fillets, and Classic Fishcakes.27 These products will be “Chef Endorsed” and will have Chef Parola’s photo on each package.28 This labeling is crucial to the