How to Work with Buyers | Farmer Forum

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All right.

 

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Um, okay, let’s, we’ve got a packed schedule today,

 

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so I’m gonna go ahead and get started.

 

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Um, I don’t believe that I’ve met everyone who is, um,

 

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whose name I see on the roster, so, um, it’s nice

 

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to meet you if we haven’t been in touch before.

 

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My name is Lindsay Olson, and I’m the director of training

 

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and support here at GreenWave.

 

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And welcome to Farmer Forum.

 

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Um, this is an initiative

 

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that we started over two years ago now, really trying to,

 

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uh, create connections among the active farming, seaweed,

 

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farming community in, um,

 

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the North America and more broadly.

 

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Uh, we host these calls once monthly throughout the time

 

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that Kelp is produced during the season.

 

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And the idea is really just to be able to dig in,

 

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in a little bit more technical detail to a particular topic,

 

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um, hear directly from farmers about

 

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how it is impacting them, and, um, ask

 

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and answer lots of questions, uh, from you all as well.

 

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So, um, if you have questions throughout the call,

 

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please feel free to pop them in the chat.

 

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If it’s a clarifying question, um, I’m happy to,

 

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to ask that as we go.

 

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And if not, we’ll save those to the end

 

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where we have some time dedicated for q and a.

 

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Um, and I do just wanna preface,

 

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because today we’re going to be talking about, um, working

 

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with buyers and contracts

 

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and, um, all sorts of, uh, different kind of official

 

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and more legal topics, um, that we are,

 

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GreenWave is not legally allowed to discuss

 

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specific numbers when it comes to price.

 

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We can talk about creating value

 

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and, um, opportunities to increase value,

 

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but we can’t discuss specific numbers around prices.

 

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So, um, I’m just gonna be screening questions for that and,

 

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and wanted to give everyone that heads up in advance.

 

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All right, let’s jump in. Okay.

 

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Um, so to kick us off, um,

 

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I would love to hear from all of you.

 

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Could everyone please put in the chat, uh, your name,

 

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your current role, or interest in seaweed.

 

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So are you a farmer, a buyer, or are you just kelp curious?

 

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Um, and then where are you located?

 

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Go ahead and pop that in the chat

 

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and then, um, share with everyone.

 

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All right, well, we’re waiting

 

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for those to come in.

 

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Um, I’m gonna give you a quick overview

 

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of what we’re gonna talk about today.

 

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Um, so we are today going to introduce you to some

 

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of the concepts, um,

 

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and tools included in an upcoming guide that we,

 

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that GreenWave has written, uh, focused on

 

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how to work with buyers.

 

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The guide is really designed, um,

 

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and targeted to a farmer audience, uh, thinking about how

 

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to engage in that farmer buyer relationship

 

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and provide you with lots of, of tools and resources

 

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and strategies for navigating that smooth,

 

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that whole interface very smoothly.

 

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Um, we’re really excited about this resource.

 

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It’s going to be published

 

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and made public in January, so just next month.

 

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Um, we are still, uh, fine tuning some of the details,

 

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so you are the lucky participants

 

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who get a sneak peek at some of these great resources today.

 

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And then, uh, we will follow up with everyone who registered

 

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for this webinar with the final guide, uh, when it,

 

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when it is finally released in its, um, final form.

 

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Um, so we’ll,

 

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grace is gonna tell you a little bit about the guide.

 

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Um, I will take you through one of the tools of the, uh,

 

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a farm calendar calculator,

 

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and then Sam is going to introduce a couple different

 

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templates for, um, kind of working out the details

 

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with buyers and, uh, varying degrees of formality.

 

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And then in the last bit,

 

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we’ll hear directly from Johnny Anton, uh, at, uh,

 

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sequester Farms in Juno, Alaska.

 

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And he’s going to, uh, kind of work with Sam through one

 

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of these resources to demonstrate

 

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how these tools could be applied

 

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to a real life scenario in a real life farm

 

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and buyer relationship.

 

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And then we’ll have some q and a. All right.

 

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So with that, um, I’m gonna pass the mic over to Grace our,

 

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uh, senior market development program manager

 

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to talk about the guide.

 

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Awesome. Thank you so much, Lindsay.

 

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Um, yeah, so just to give you some context on this guide,

 

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overall, um, GreenWave launched this as a part

 

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of a NOAA SK grant that was funded in 2023.

 

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Um, and we were looking to create best purchasing practices

 

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for both farmers and buyers.

 

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Um, so really working on education from, um, all sides

 

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of the value chain.

 

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Um, and some of you may have seen the guide that we launched

 

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for emerging kelp buyers in July.

 

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Um, if you have not, I highly encourage you to check it out.

 

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Um, even just giving it a quick skim, um,

 

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some really interesting information on functional components

 

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of kelp and how those map to various different markets.

 

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Um, and we’ll post that in the chat so you can download.

 

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Um, and today we’ll be focusing on the farmer guide,

 

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which is the second guide in this series, um,

 

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which will really, you know, dig into practical content

 

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and tools to support, um, sales processes

 

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and long-term, um, farmer and buyer partnerships.

 

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Um, and then the final guide,

 

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which we’ll be launching in spring is

 

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for experienced kelp buyers.

 

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Um, and,

 

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and that one will be more of nitty gritty, like creating

 

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contracts and sort of commercialization conversations.

 

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Um, so before we dive into the farmer guide, I just wanted

 

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to mention that GreenWave did not develop

 

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these guides alone.

 

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Uh, we worked in partnership with buyers farmers,

 

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and a variety of direct trade experts from land-based

 

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agriculture, um,

 

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and also pulled on content from, uh,

 

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over 80 external papers and resources.

 

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So there’s a lot in there.

 

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And, um, we have all of you to thank

 

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for supporting this guide.

 

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Um, next slide, please.

 

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So, just to give you a very brief overview

 

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of what’s in the guide, um,

 

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we actually went pretty light on

 

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sales and marketing content.

 

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A lot of that exists elsewhere.

 

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And instead, um, focused on creating tools

 

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that you can actually implement in your

 

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processes straight away.

 

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Um, so things like a sell sheet template

 

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or a lead tracking template

 

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that you can immediately implement, um, as you’re going

 

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through sales processes.

 

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Um, the next section is really focused on

 

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relationship building.

 

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Um, so skills around negotiation

 

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and commitment management, um, long-term partnerships,

 

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and really pulling on the expertise from some

 

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of those direct trade experts.

 

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Um, there is a section on farming for successful sales, um,

 

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a lot about like how do you accurately predict yields, um,

 

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and, and how do you communicate with who, when in terms

 

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of buyers and your sales processes.

 

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And, um, finally a section on tools

 

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for commercialization conversations.

 

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Um, so really getting into the details of what aspects

 

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of your, um, partnership with buyers you need to think

 

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through and talk to, talk about and agree upon.

 

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Um, so things like term sheets

 

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and product specifications, um,

 

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and contract management resources, which, um,

 

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we’ll dive into later on this webinar.

 

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Um, next slide.

 

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So overall with this guide, um, our idea was really

 

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to get farmers in the mindset

 

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of working backwards from your end customer.

 

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Um, so in one of the initial sections of the guide, there’s,

 

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um, an exercise to help you focus on your capabilities

 

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as a farm and also what you want to be doing as a business

 

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and matching those to various target markets, um, so

 

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that you have the ability to sort

 

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of work backwards from there in terms of operations

 

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and sales and overall business strategy.

 

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Next slide. Um,

 

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and this is just an example of one of the more tangible

 

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resources, um, that I mentioned as part of this guide.

 

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So this is in the building buyer relationship section.

 

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Um, and we’re really encouraging farmers to think about

 

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what your needs are

 

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and sort of how those align with, um, what buyers’ needs are

 

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and, and what you can offer in exchange

 

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to really aid in the negotiation process.

 

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Um, so a lot of this content is a little bit less tangible,

 

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um, and more about building relationships.

 

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But, um, this is an example of, you know, as a farmer,

 

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if you’re wanting higher prices, you might think about

 

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what your buyer needs.

 

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Maybe they’re looking for, um, an organic certified product,

 

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so you could consider, um, getting an organic certification

 

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or offering that,

 

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and then in exchange, um, asking for higher prices.

 

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Next slide. Um,

 

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and then finally, just wanted

 

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to point out another especially, um, juicy resource,

 

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which is a guide about, um, kelp testing.

 

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So this guide is primarily designed to sort

 

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of demystify this really confusing world of, um,

 

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lab testing seaweed.

 

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Um, it’s super important for buyers

 

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to know what’s in your kelp, and,

 

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and that’s really critical for your sales process is, um,

 

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what functional components can I really tell buyers

 

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that exist in my kelp,

 

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and how do I, uh,

 

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make sure they’re confident in the safety of my product?

 

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Um, so in this guide we include, um, you know,

 

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what specific tests are critical for market segments.

 

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Um, and once you get the results back from your tests,

 

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how you can analyze that

 

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and even present that data to buyers, um, as well as a list

 

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of labs that actually work with seaweed, um, to set you up

 

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with success in terms of providing buyers

 

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with the data that they need.

 

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Um, so that was a super quick overview of a couple

 

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of resources, and I’ll pass it back over to Lindsay

 

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to give you, um,

 

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a sneak peek at the annual farm calendar calculator.

 

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Awesome, thanks, grace.

 

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Yeah, um, I realized that we are just bombarding you

 

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with information, um, so far, so I am looking forward

 

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to everybody to getting their hands on the guide

 

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and being able to play, play with it.

 

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And to kind of give you, um, a sneak peek at that,

 

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we have one tool that we, um,

 

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can share in advance of the launch of the guide.

 

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And this is really a, um, farm planning tool.

 

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And again, it works on the same sort of logic

 

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that Grace was describing of, of really thinking about

 

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what is the, um, end product that you’re hoping to produce,

 

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whether that’s be an, an order of of rock help

 

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that you’re delivering to a professor,

 

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or if it, um, basically what is the, the format and,

 

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and when does your buyer need it in that specific format?

 

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So, um, this calendar tool, uh, has you enter,

 

233

00:11:05.395 –> 00:11:08.055

uh, really just five different variables.

 

234

00:11:08.155 –> 00:11:11.375

So you think about when does your buyer need the rock kelp

 

235

00:11:11.375 –> 00:11:12.935

and you put in a specific date.

 

236

00:11:13.395 –> 00:11:15.655

Um, here I’ve put the end of April.

 

237

00:11:16.355 –> 00:11:19.055

Um, how much kelp do they wanna buy from you?

 

238

00:11:19.065 –> 00:11:20.615

Let’s say they wanna buy 5,000 pounds.

 

239

00:11:21.555 –> 00:11:23.295

How long do you want that kelp to be in the water?

 

240

00:11:23.835 –> 00:11:26.615

Um, it’s, the tool is pre-populated with 180,

 

241

00:11:26.615 –> 00:11:28.855

which is the average number of growing days, uh,

 

242

00:11:28.885 –> 00:11:32.415

that we’ve seen across farms in the kelp climate fund.

 

243

00:11:33.195 –> 00:11:37.655

Um, and then you can ask yourself, how many pounds, uh,

 

244

00:11:37.835 –> 00:11:40.655

can you reasonably harvest or process per day?

 

245

00:11:40.655 –> 00:11:42.815

And recognizing that those are two separate numbers,

 

246

00:11:42.995 –> 00:11:44.655

but what is the limiting factor?

 

247

00:11:44.875 –> 00:11:49.735

So if you are, if you can’t, um, if what, whatever is the,

 

248

00:11:49.795 –> 00:11:52.535

the more limiting number in terms of your harvest process

 

249

00:11:52.715 –> 00:11:54.485

or your processing process.

 

250

00:11:54.945 –> 00:11:58.685

Um, so if you know that you can in the past have harvested,

 

251

00:11:59.545 –> 00:12:03.005

um, 1500 pounds a day, reasonably can enter that in.

 

252

00:12:03.425 –> 00:12:07.165

Um, and then the number of bad weather days on a week, um,

 

253

00:12:07.345 –> 00:12:09.685

during the window that you’re planning to harvest,

 

254

00:12:10.145 –> 00:12:11.445

use your best judgment here.

 

255

00:12:12.145 –> 00:12:15.005

So based on those inputs, um, the

 

256

00:12:15.605 –> 00:12:19.045

calendar will essentially create you a farm season timeline.

 

257

00:12:19.305 –> 00:12:23.325

So on this last tab here, um, you can see that it sort

 

258

00:12:23.325 –> 00:12:25.125

of charts it throughout the whole production season,

 

259

00:12:25.315 –> 00:12:29.325

working backwards from that, um, ultimate end of season

 

260

00:12:30.045 –> 00:12:31.045

delivery to your buyer.

 

261

00:12:31.665 –> 00:12:36.005

Um, and a cool feature here is if you, um,

 

262

00:12:36.065 –> 00:12:39.045

are a person who likes to live off of a digital calendar,

 

263

00:12:39.345 –> 00:12:40.805

um, these dates

 

264

00:12:41.025 –> 00:12:44.325

and, uh, events can also be downloaded in a calendar export

 

265

00:12:44.545 –> 00:12:46.445

and uploaded to your Google Calendar

 

266

00:12:46.585 –> 00:12:49.005

or, um, outlook or I calendar.

 

267

00:12:49.145 –> 00:12:50.565

And there’s instructions on how to do

 

268

00:12:50.565 –> 00:12:52.085

that on this first tab.

 

269

00:12:53.175 –> 00:12:56.155

So, um, Gigi’s gonna drop the link to that tool in the,

 

270

00:12:56.535 –> 00:12:58.555

in the chat, and please feel free to make a copy and,

 

271

00:12:58.555 –> 00:13:01.435

and use, um, as you like, if it, it’s useful to you.

 

272

00:13:04.015 –> 00:13:05.595

All right, and onto Sam.

 

273

00:13:07.625 –> 00:13:08.915

Awesome. Thank you, Lindsey.

 

274

00:13:09.695 –> 00:13:11.875

So, all of the resources

 

275

00:13:11.945 –> 00:13:15.315

that are included in this farmer

 

276

00:13:15.485 –> 00:13:17.155

guide are connected.

 

277

00:13:17.695 –> 00:13:21.395

Um, so that, that calendar that you just saw, uh,

 

278

00:13:21.485 –> 00:13:24.675

there are some dates in that that you’re gonna wanna use to

 

279

00:13:25.265 –> 00:13:27.275

when you eventually start getting to the point

 

280

00:13:27.275 –> 00:13:29.515

of contracting with your buyer.

 

281

00:13:29.615 –> 00:13:33.955

So obviously, if we’re talking about kelp sales, uh, kelp,

 

282

00:13:34.335 –> 00:13:39.075

uh, a contract, a a actual signed agreement for a buyer to,

 

283

00:13:39.135 –> 00:13:41.755

to, to take your kelp is where we wanna go.

 

284

00:13:42.575 –> 00:13:46.795

Um, and contracts can be really confusing.

 

285

00:13:46.795 –> 00:13:48.595

There’s a lot of jargon.

 

286

00:13:48.595 –> 00:13:50.555

Even if you just Google for a, uh, you know,

 

287

00:13:50.555 –> 00:13:52.515

a contract template, there’s a lot of legalese

 

288

00:13:52.855 –> 00:13:54.555

and they can be really hard to understand.

 

289

00:13:54.935 –> 00:13:58.995

So, um, we worked with a law firm

 

290

00:13:59.175 –> 00:14:01.875

who is Green Wave’s law firm that we use for, for all

 

291

00:14:01.875 –> 00:14:04.395

of our contracts to develop a template that you can use

 

292

00:14:04.535 –> 00:14:06.395

as a starting point with your buyer.

 

293

00:14:07.175 –> 00:14:11.515

And we really want people to be focusing on getting these,

 

294

00:14:11.615 –> 00:14:14.235

um, binding written agreements that are enforceable.

 

295

00:14:14.885 –> 00:14:18.155

These are, you know, important tools

 

296

00:14:18.415 –> 00:14:20.075

to scaling up your business

 

297

00:14:20.075 –> 00:14:22.835

and to getting agreements that you can build on from year

 

298

00:14:22.935 –> 00:14:25.875

to year Contracts sometimes seems scary,

 

299

00:14:26.055 –> 00:14:29.155

but they, a good contract is actually easy to understand.

 

300

00:14:29.295 –> 00:14:30.755

It should be fair for both parties,

 

301

00:14:30.935 –> 00:14:31.955

it should be transparent,

 

302

00:14:32.015 –> 00:14:34.315

and it really should protect both parties equally.

 

303

00:14:35.055 –> 00:14:38.275

Um, so we’re gonna spend the rest of today going through,

 

304

00:14:39.015 –> 00:14:40.675

um, not just a contract,

 

305

00:14:40.675 –> 00:14:42.035

but actually a term sheet,

 

306

00:14:42.035 –> 00:14:44.395

which is a precursor to a contract.

 

307

00:14:45.295 –> 00:14:47.515

As we talk about all these legal concepts, keep in mind

 

308

00:14:47.515 –> 00:14:49.555

that this information is intended as a guide

 

309

00:14:49.655 –> 00:14:51.195

and is really not a substitute

 

310

00:14:51.425 –> 00:14:53.365

for professional legal advice.

 

311

00:14:53.505 –> 00:14:55.245

So even though we’re giving you a lot of tools here,

 

312

00:14:55.265 –> 00:14:57.285

we really strongly recommend that you do consult

 

313

00:14:57.285 –> 00:14:59.605

with your own qualified legal counsel to ensure

 

314

00:14:59.605 –> 00:15:00.965

that any documents you put together

 

315

00:15:01.065 –> 00:15:03.005

and any information contained within them

 

316

00:15:03.575 –> 00:15:06.045

meets your specific needs and circumstances.

 

317

00:15:07.345 –> 00:15:11.695

Um, so, uh, digging in here, the,

 

318

00:15:11.875 –> 00:15:14.615

the purchase agreement has two parts.

 

319

00:15:14.825 –> 00:15:19.535

There is the contract, which is kind of a big picture, um,

 

320

00:15:20.795 –> 00:15:23.015

uh, general terms for the conditions

 

321

00:15:23.015 –> 00:15:24.335

of your relationship with the buyer.

 

322

00:15:24.395 –> 00:15:25.615

And then there’s an order form.

 

323

00:15:25.615 –> 00:15:29.335

And the order form specifies the kelp format, volume, price,

 

324

00:15:29.695 –> 00:15:32.295

quantity, timing, acceptance criteria for the kelp.

 

325

00:15:32.755 –> 00:15:34.375

So how the heck do you get to those things?

 

326

00:15:34.755 –> 00:15:35.975

Uh, next slide please.

 

327

00:15:38.155 –> 00:15:40.775

We, oh, sorry, I forgot one, one more thing.

 

328

00:15:40.875 –> 00:15:43.575

Um, that, that, uh, purchase agreement

 

329

00:15:43.875 –> 00:15:45.975

and order form is nine pages long.

 

330

00:15:46.115 –> 00:15:49.655

So that’s a lot of pages, and as we, as I mentioned

 

331

00:15:49.655 –> 00:15:51.815

before, there’s a lot of legalese in there, uh,

 

332

00:15:51.815 –> 00:15:54.215

which is necessary in order to make the contract binding.

 

333

00:15:54.645 –> 00:15:59.255

Next slide. In order to support you in working through this,

 

334

00:15:59.395 –> 00:16:02.495

before you start engaging a lawyer, which can be expensive,

 

335

00:16:02.835 –> 00:16:04.695

we have created this explainer.

 

336

00:16:04.795 –> 00:16:07.175

And so this, uh, is only four pages

 

337

00:16:07.555 –> 00:16:10.175

and goes through, uh, not just the nine pages,

 

338

00:16:10.195 –> 00:16:11.495

but there’s actually two, uh,

 

339

00:16:11.595 –> 00:16:14.095

two different order forms you could use one for raw kelp

 

340

00:16:14.095 –> 00:16:15.375

and one for processed kelp.

 

341

00:16:15.715 –> 00:16:18.455

And this explainer goes through section by section

 

342

00:16:18.635 –> 00:16:20.815

and explains in normal English

 

343

00:16:21.405 –> 00:16:23.655

what this section means.

 

344

00:16:24.275 –> 00:16:26.695

And the information that you’re gonna need to plug in

 

345

00:16:26.885 –> 00:16:28.975

that information is gonna come from the annual calendar.

 

346

00:16:29.045 –> 00:16:30.295

It’s gonna come from the term sheet,

 

347

00:16:30.295 –> 00:16:32.095

it’s gonna come from a variety of conversations

 

348

00:16:32.095 –> 00:16:33.215

that you have with your buyers.

 

349

00:16:33.755 –> 00:16:36.295

So, um, before you, if you get overwhelmed

 

350

00:16:36.315 –> 00:16:37.735

by just looking at the contract itself,

 

351

00:16:37.735 –> 00:16:40.815

highly recommend going to the explainer in the farmer guide.

 

352

00:16:43.585 –> 00:16:45.855

Next slide. Okay.

 

353

00:16:46.675 –> 00:16:50.815

So the term sheet, this is a precursor

 

354

00:16:51.155 –> 00:16:53.775

to the commercialization, uh, conversations

 

355

00:16:53.775 –> 00:16:55.375

that lead, lead to a contract.

 

356

00:16:56.035 –> 00:16:59.335

It is a low stakes way of starting

 

357

00:16:59.335 –> 00:17:03.775

to get on the same page about all the details involved

 

358

00:17:03.775 –> 00:17:07.335

with getting the kelp from the ocean to your customer.

 

359

00:17:08.405 –> 00:17:09.895

This is a non-binding document.

 

360

00:17:10.115 –> 00:17:12.535

So when I say low stakes, I just mean like you’re,

 

361

00:17:12.535 –> 00:17:13.895

you’re just having a conversation

 

362

00:17:14.075 –> 00:17:16.175

and you’re still feeling out whether this is gonna work

 

363

00:17:16.175 –> 00:17:18.455

for both parties, but it makes sure

 

364

00:17:18.455 –> 00:17:21.855

that you have the conversations you need to have in order

 

365

00:17:21.955 –> 00:17:26.535

to determine whether, um, you know, that who owns what,

 

366

00:17:26.795 –> 00:17:30.455

and whether at the end of the day this is a transaction

 

367

00:17:30.455 –> 00:17:31.935

that is going to work,

 

368

00:17:32.355 –> 00:17:34.895

or whether there are holes that need to be filled in.

 

369

00:17:36.025 –> 00:17:40.665

So, um, we are going to go through this

 

370

00:17:41.335 –> 00:17:45.325

with Johnny, um, Johnny

 

371

00:17:46.145 –> 00:17:50.165

who just came off, uh, on video there, uh, is a farmer,

 

372

00:17:50.325 –> 00:17:52.685

a fisherman, a commercial diver, a crane operator,

 

373

00:17:52.845 –> 00:17:54.605

a videographer, an illustrator.

 

374

00:17:54.625 –> 00:17:57.605

And I personally think him think of him as the chief

 

375

00:17:58.115 –> 00:18:01.525

kelp hype officer, uh, based in Juno, Alaska.

 

376

00:18:02.385 –> 00:18:04.205

And he’s here with us today to talk

 

377

00:18:04.205 –> 00:18:05.645

to us about his experience working with buyers.

 

378

00:18:05.665 –> 00:18:08.605

And we are actually going to go through the term sheet

 

379

00:18:08.785 –> 00:18:11.205

and hear about how he’s talked through all

 

380

00:18:11.205 –> 00:18:13.365

of these concepts with his buyer.

 

381

00:18:14.565 –> 00:18:16.225

Johnny, would you like to tell us more about

 

382

00:18:16.505 –> 00:18:17.905

yourself and your farm?

 

383

00:18:18.785 –> 00:18:21.475

Yeah, thanks, Sam. Uh, hi everybody.

 

384

00:18:22.095 –> 00:18:24.155

Um, I too is one day kelp curious

 

385

00:18:24.575 –> 00:18:27.195

and, um, which had led me here.

 

386

00:18:27.495 –> 00:18:32.195

Um, currently we have a 25 acre farm where we, uh,

 

387

00:18:32.345 –> 00:18:36.315

farm bulk kelp sugar, kelp ribbon, kelp, uh,

 

388

00:18:36.315 –> 00:18:39.995

haven’t done dragon kelp yet, but split kelp and,

 

389

00:18:40.055 –> 00:18:41.875

and a few others that we haven’t done.

 

390

00:18:42.255 –> 00:18:46.435

Um, and, uh, yeah, it’s a, um, uh,

 

391

00:18:46.435 –> 00:18:47.515

it’s a pretty exciting process.

 

392

00:18:47.725 –> 00:18:50.235

We’ve been farming for three years now,

 

393

00:18:50.775 –> 00:18:55.075

and, um, we sell our kelp here to a local buyer in Juneau.

 

394

00:18:57.745 –> 00:19:01.675

Awesome. And, um, so our relationship

 

395

00:19:01.675 –> 00:19:05.435

with the buyer was, uh, is pretty lucky, I would say.

 

396

00:19:05.695 –> 00:19:08.435

Um, uh, in being kelp curious,

 

397

00:19:09.035 –> 00:19:13.155

I started doing some research on how to develop a farm

 

398

00:19:13.815 –> 00:19:15.875

and the need for a farm locally

 

399

00:19:16.335 –> 00:19:21.235

and, um, was, um, very privy to the local buyers.

 

400

00:19:21.355 –> 00:19:23.675

I bought their products regularly,

 

401

00:19:24.135 –> 00:19:26.795

but their products were all made from wild harvested kelp.

 

402

00:19:27.095 –> 00:19:31.075

And, uh, while they were, um,

 

403

00:19:32.385 –> 00:19:36.395

like, you know, reaching their, their their need

 

404

00:19:36.395 –> 00:19:38.635

through wild harvest, it became harder

 

405

00:19:38.635 –> 00:19:39.915

and harder for them to expand.

 

406

00:19:39.915 –> 00:19:42.195

And so they had a growing interest in farmed kelp,

 

407

00:19:42.645 –> 00:19:45.595

which when I first talked to ’em about the possibility

 

408

00:19:45.595 –> 00:19:47.795

of doing a farm, they were all for it

 

409

00:19:47.855 –> 00:19:51.635

and willing to support, I mean, in any way that I could,

 

410

00:19:51.815 –> 00:19:54.635

to any way they could so I could develop a farm.

 

411

00:19:56.125 –> 00:20:00.745

And, um, so with that, um, yeah,

 

412

00:20:00.805 –> 00:20:03.545

so they were only allowed to harvest a certain amount

 

413

00:20:03.605 –> 00:20:06.225

of ke wild kelp, um, in each bed.

 

414

00:20:06.245 –> 00:20:08.585

And so that led them to go further

 

415

00:20:08.845 –> 00:20:12.065

and further to, um, beds far away,

 

416

00:20:12.315 –> 00:20:14.265

which ended up costing them more

 

417

00:20:14.265 –> 00:20:16.465

and more money, especially their, their wild harvesters.

 

418

00:20:16.465 –> 00:20:20.065

And so having a farm near Juneau, um,

 

419

00:20:20.325 –> 00:20:22.505

was really advantageous, not for just quality,

 

420

00:20:22.645 –> 00:20:26.425

but also, um, to fulfill their product needs

 

421

00:20:26.425 –> 00:20:27.625

and allow them to expand.

 

422

00:20:27.725 –> 00:20:30.745

And so we created a bit of a symbiotic relationship,

 

423

00:20:31.565 –> 00:20:35.275

and, um, we’ve been selling to them every year

 

424

00:20:35.275 –> 00:20:38.755

that we’ve had kelp, and that’s been the last three.

 

425

00:20:38.755 –> 00:20:42.395

And so it’s worked out and they generally commit

 

426

00:20:42.535 –> 00:20:45.835

to buying about 10,000 pounds from us every year,

 

427

00:20:46.255 –> 00:20:50.125

but are definitely open to buying more, um, which, uh,

 

428

00:20:50.785 –> 00:20:51.845

is, is great.

 

429

00:20:51.985 –> 00:20:56.325

And, um, bull kelp traditionally is a very hard thing

 

430

00:20:56.505 –> 00:20:59.605

to grow, um, primarily because it floats.

 

431

00:20:59.825 –> 00:21:01.845

And so we actually had to develop new ways

 

432

00:21:01.845 –> 00:21:06.165

of farming in order to fulfill their, um, their needs,

 

433

00:21:07.025 –> 00:21:09.005

uh, to kind of make that happen.

 

434

00:21:09.745 –> 00:21:12.445

And traditionally, bulk kelp grown

 

435

00:21:13.025 –> 00:21:15.965

in a farm has been too small to meet their needs,

 

436

00:21:16.065 –> 00:21:18.605

and so we had to develop new ways to get the bulk kelp

 

437

00:21:18.745 –> 00:21:21.285

to a larger size, which we achieved last

 

438

00:21:21.285 –> 00:21:22.365

year, which was really exciting.

 

439

00:21:25.395 –> 00:21:27.365

Awesome. Thank you so much for that, Johnny.

 

440

00:21:28.255 –> 00:21:31.125

Let’s dive into this term sheet.

 

441

00:21:31.305 –> 00:21:32.365

I’m gonna share my screen

 

442

00:21:33.275 –> 00:21:34.575

and we’re gonna walk through it together.

 

443

00:21:37.005 –> 00:21:41.625

All right. Can everybody see this document? Yes. Great.

 

444

00:21:42.095 –> 00:21:45.425

Okay. So let’s get into it.

 

445

00:21:46.005 –> 00:21:49.545

Um, as we just heard, your species

 

446

00:21:49.645 –> 00:21:51.905

of kelp is bull kelp.

 

447

00:21:52.125 –> 00:21:55.115

Yes. You can come off mute,

 

448

00:21:55.115 –> 00:21:56.595

Johnny, so we can do it together.

 

449

00:21:56.975 –> 00:21:58.195

Oh, sorry, I didn’t.

 

450

00:21:58.585 –> 00:22:03.115

Okay. And so for the bull kelp,

 

451

00:22:03.575 –> 00:22:05.835

um, you said that

 

452

00:22:06.665 –> 00:22:08.875

they are buying 10,000 pounds,

 

453

00:22:08.975 –> 00:22:10.555

but I wonder if there is a minimum

 

454

00:22:11.135 –> 00:22:13.035

and a maximum there or any kind of buffer.

 

455

00:22:13.705 –> 00:22:15.715

What, how do you guys think about that when you,

 

456

00:22:15.745 –> 00:22:17.915

when you come up with your commitments?

 

457

00:22:18.575 –> 00:22:22.515

So the, the minimum is, um, since

 

458

00:22:23.185 –> 00:22:25.795

like we have such a good symbiotic working relationship,

 

459

00:22:25.865 –> 00:22:28.595

they can fulfill their orders if they need to

 

460

00:22:29.215 –> 00:22:31.555

by harvesting wild kelp from further beds.

 

461

00:22:31.855 –> 00:22:35.635

And so they’re not extremely reliant on us, which adds,

 

462

00:22:35.725 –> 00:22:38.195

which reduces the pressure for us a little bit

 

463

00:22:38.375 –> 00:22:40.235

and allows us to experiment a little bit more.

 

464

00:22:41.015 –> 00:22:44.035

Um, however, when it comes to fulfilling an order,

 

465

00:22:44.265 –> 00:22:49.075

they had asked that we don’t deliver, uh, kelp, um,

 

466

00:22:49.665 –> 00:22:53.955

less than 3000 pounds because that’s their cost capacity.

 

467

00:22:54.495 –> 00:22:56.795

And if we were to develop, deliver less than that,

 

468

00:22:56.795 –> 00:22:59.595

they would kind of reduce their efficiencies.

 

469

00:23:00.955 –> 00:23:04.045

Okay. So the minimum of 3000 pounds is related to

 

470

00:23:04.835 –> 00:23:08.245

your buyers, um, kind of what they need in order

 

471

00:23:08.305 –> 00:23:11.845

to do their processing efficiently at, at their facility?

 

472

00:23:12.475 –> 00:23:15.805

Yeah. And so every delivery we send can’t be less than

 

473

00:23:15.805 –> 00:23:17.005

300, 3000 pounds

 

474

00:23:17.465 –> 00:23:20.965

or should be, we have sent less than they,

 

475

00:23:21.115 –> 00:23:23.005

they don’t appreciate it as much.

 

476

00:23:24.075 –> 00:23:25.485

Okay, that’s great.

 

477

00:23:25.585 –> 00:23:27.645

And that, and when we say pounds, it’s always good

 

478

00:23:27.645 –> 00:23:29.045

to clarify, that’s wet pounds,

 

479

00:23:29.515 –> 00:23:30.515

Correct. Raw,

 

480

00:23:30.515 –> 00:23:31.425

okay,

 

481

00:23:32.515 –> 00:23:33.515

Great.

 

482

00:23:33.965 –> 00:23:37.945

Raw kelp. I’m gonna delete some stuff as we go

 

483

00:23:37.945 –> 00:23:39.705

to keep this clean so people can see it better.

 

484

00:23:40.285 –> 00:23:43.985

And then the maximum, um, you had mentioned 10,000 pounds.

 

485

00:23:44.005 –> 00:23:45.245

Is that the maximum for this year?

 

486

00:23:46.115 –> 00:23:48.055

Um, that’s what we have on our contract.

 

487

00:23:48.235 –> 00:23:51.055

Uh, however, they’re, they let us know that they’re open

 

488

00:23:51.055 –> 00:23:53.295

to buying more from us. Um,

 

489

00:23:54.125 –> 00:23:55.125

Okay.

 

490

00:23:55.155 –> 00:23:57.535

We can achieve it then I think they would buy it.

 

491

00:23:58.575 –> 00:24:01.325

Great. Now, one of the things

 

492

00:24:01.325 –> 00:24:03.085

that we’ve included in this term sheet is the concept

 

493

00:24:03.265 –> 00:24:04.365

of a buffer.

 

494

00:24:04.865 –> 00:24:06.685

And this is a, uh, one of the things

 

495

00:24:06.685 –> 00:24:08.645

that we took from land-based agriculture

 

496

00:24:08.645 –> 00:24:11.925

where sometimes when people are buying a huge amount of,

 

497

00:24:12.985 –> 00:24:14.685

you know, uh, produce say,

 

498

00:24:14.705 –> 00:24:17.445

or corn, they will say, well, we,

 

499

00:24:17.465 –> 00:24:18.925

we said we wanna buy 10,000 pounds,

 

500

00:24:19.105 –> 00:24:21.485

but we’ll actually we recognize that it’s hard

 

501

00:24:21.485 –> 00:24:25.245

to harvest exactly 10,000 pounds of, um, of corn.

 

502

00:24:25.385 –> 00:24:27.565

So if you are over by 10%, that’s fine.

 

503

00:24:28.065 –> 00:24:29.885

Is there, have you guys discussed anything like that?

 

504

00:24:31.025 –> 00:24:32.845

Um, we really haven’t.

 

505

00:24:33.165 –> 00:24:38.005

I mean, our relationship is somewhat loose so that, um, we

 

506

00:24:38.545 –> 00:24:40.805

do what we can and they do what they, what they can.

 

507

00:24:41.145 –> 00:24:44.845

And, uh, like I would say, I would speak to the idea

 

508

00:24:44.845 –> 00:24:47.925

that I saw earlier in the presentation in, um,

 

509

00:24:48.465 –> 00:24:50.165

or in a form is just developing

 

510

00:24:50.165 –> 00:24:51.245

the relationship with a buyer.

 

511

00:24:51.665 –> 00:24:54.445

Mm-hmm. As long as in a good, trustworthy relationship

 

512

00:24:54.505 –> 00:24:57.685

and, you know, each party’s doing the best they can, I think

 

513

00:24:57.685 –> 00:25:00.565

that it’s kind of makes for the best case scenario.

 

514

00:25:01.595 –> 00:25:03.605

Awesome. Totally agree with that.

 

515

00:25:04.865 –> 00:25:06.645

All right, let’s move into the timeline a bit.

 

516

00:25:07.225 –> 00:25:12.055

Um, so the, as we saw in the calendar

 

517

00:25:12.085 –> 00:25:14.615

that Lindsay was, that Lindsay showed us, there’s,

 

518

00:25:14.615 –> 00:25:16.495

there’s a lot of different dates, and this is just a subset

 

519

00:25:16.555 –> 00:25:18.695

of those dates, but we tried to pick some of the ones

 

520

00:25:18.695 –> 00:25:22.295

that are the most important for arranging your season

 

521

00:25:22.395 –> 00:25:24.975

and for making sure that the whole relationship

 

522

00:25:25.285 –> 00:25:26.935

with the buyer kinda works,

 

523

00:25:27.105 –> 00:25:28.455

works from everyone’s perspective.

 

524

00:25:29.075 –> 00:25:32.545

So obviously kelp farming starts with, well, it starts

 

525

00:25:32.545 –> 00:25:34.545

with the nursery, but on the farm side it starts

 

526

00:25:34.545 –> 00:25:35.985

with getting that kelp in the water.

 

527

00:25:37.485 –> 00:25:40.865

Do you, uh, have a specific date by which you’ve committed

 

528

00:25:40.865 –> 00:25:42.785

to the buyer that the out planting will occur?

 

529

00:25:44.235 –> 00:25:47.255

We don’t have a specific date as much as

 

530

00:25:47.795 –> 00:25:49.815

we just remain in contact with them.

 

531

00:25:50.115 –> 00:25:53.055

We try mm-hmm. Our kelp in the water by November.

 

532

00:25:53.675 –> 00:25:57.815

Uh, but we have planted it late as late as February before.

 

533

00:25:58.125 –> 00:25:59.125

Okay.

 

534

00:26:02.145 –> 00:26:05.565

All right. And then when do you aim to harvest it?

 

535

00:26:06.745 –> 00:26:10.925

Um, generally, uh, here it’s, uh, it become,

 

536

00:26:10.995 –> 00:26:13.085

becomes harvestable by the end of April,

 

537

00:26:13.265 –> 00:26:15.885

but mainly May is our big month.

 

538

00:26:16.425 –> 00:26:20.125

Um, we use a cat mary system, which is a, um,

 

539

00:26:20.525 –> 00:26:21.725

tethered to the sea surface.

 

540

00:26:22.225 –> 00:26:25.525

And so with that being, it just gets direct sunlight

 

541

00:26:25.585 –> 00:26:26.645

and doesn’t get a chance.

 

542

00:26:26.845 –> 00:26:28.085

’cause our tides are so big here,

 

543

00:26:28.545 –> 00:26:30.285

it doesn’t get a chance to get away from the sun.

 

544

00:26:30.465 –> 00:26:32.845

And so may is a huge month for us to harvest

 

545

00:26:33.085 –> 00:26:34.965

’cause we have to harvest it before it starts bleaching.

 

546

00:26:35.745 –> 00:26:37.725

And so a mad dash.

 

547

00:26:39.075 –> 00:26:43.445

Yeah. Yeah. And with a lot of buyers, they are,

 

548

00:26:44.145 –> 00:26:45.845

uh, dependent on the timing

 

549

00:26:45.845 –> 00:26:47.725

of the harvest in order to do their processing.

 

550

00:26:47.825 –> 00:26:50.885

So do you provide an estimated, you know, one week

 

551

00:26:50.945 –> 00:26:54.285

or two week window that, that, you know,

 

552

00:26:54.285 –> 00:26:55.845

you narrow in on when you get closer?

 

553

00:26:56.025 –> 00:26:59.005

Or how do you think about estimating the actual, like,

 

554

00:27:00.045 –> 00:27:02.305

you know, days when harvesting will occur?

 

555

00:27:03.035 –> 00:27:04.205

Yeah, that’s a great question.

 

556

00:27:04.385 –> 00:27:09.085

Um, and so with the maintain communication with our buyer,

 

557

00:27:09.225 –> 00:27:12.725

as our kelp is growing, as it’s reaching maturity, uh,

 

558

00:27:12.785 –> 00:27:14.285

we just communicate that with them

 

559

00:27:14.585 –> 00:27:16.205

and watch for weather windows and,

 

560

00:27:16.665 –> 00:27:19.165

and we’ll say like, Hey, yeah, we’re thinking

 

561

00:27:19.165 –> 00:27:21.685

that we might be able to make a delivery next week,

 

562

00:27:22.265 –> 00:27:25.125

or, uh, we’re gonna start looking at it next month.

 

563

00:27:25.465 –> 00:27:29.085

Um, and, and we just kind of maintain that communication

 

564

00:27:29.425 –> 00:27:34.005

and they’re pretty adaptable to what, uh, we’re doing.

 

565

00:27:34.065 –> 00:27:37.245

We actually, uh, are a little pre-season for them

 

566

00:27:38.215 –> 00:27:40.685

since they usually harvest from wild beds.

 

567

00:27:40.745 –> 00:27:44.805

Uh, farmed kelp usually ripens a bit earlier than farm beds

 

568

00:27:44.805 –> 00:27:46.685

because it gets kind of a headstart on the farm.

 

569

00:27:46.865 –> 00:27:50.205

So, um, yeah, we, uh, we just kind

 

570

00:27:50.205 –> 00:27:52.925

of stay in communication mostly and just let ’em know.

 

571

00:27:53.755 –> 00:27:55.085

Okay. That’s great.

 

572

00:27:57.735 –> 00:27:59.985

Okay, so you are not doing any of the processing,

 

573

00:28:00.005 –> 00:28:01.345

so I’m gonna x this one out

 

574

00:28:01.345 –> 00:28:03.825

because that’s not relevant to you.

 

575

00:28:03.825 –> 00:28:08.475

You’re selling rock kelp, um, buyer’s inspection period.

 

576

00:28:08.665 –> 00:28:12.035

This is a concept that we put in the term sheet in our

 

577

00:28:12.235 –> 00:28:15.155

contract that expresses how long the buyer has

 

578

00:28:15.215 –> 00:28:16.955

to look at your delivered kelp

 

579

00:28:17.015 –> 00:28:19.315

and essentially tell you whether it met their

 

580

00:28:19.585 –> 00:28:20.755

quality criteria.

 

581

00:28:21.695 –> 00:28:25.115

Um, as a farmer, you probably want this to be

 

582

00:28:25.135 –> 00:28:26.275

as short as possible.

 

583

00:28:26.375 –> 00:28:29.115

So because the longer the kelp sits at the buyer’s facility,

 

584

00:28:29.215 –> 00:28:31.075

the less time it’s been since you had eyes on it,

 

585

00:28:31.075 –> 00:28:32.795

the longer it could be until you know

 

586

00:28:32.795 –> 00:28:33.955

that something could happen to it.

 

587

00:28:34.785 –> 00:28:36.915

What did you discuss with your buyer in terms of

 

588

00:28:36.935 –> 00:28:38.795

how long they have to tell you whether they’re

 

589

00:28:38.825 –> 00:28:40.115

accepting your raw kelp?

 

590

00:28:41.855 –> 00:28:45.835

Um, one of the things that we’re very lucky in is

 

591

00:28:45.835 –> 00:28:49.875

that we are really close to their facility

 

592

00:28:50.215 –> 00:28:51.995

and, uh, the kelp leaves the water

 

593

00:28:52.535 –> 00:28:56.755

and gets to their facility within I’d say six hours.

 

594

00:28:57.575 –> 00:29:01.955

And so, um, we haven’t had any issues with quality,

 

595

00:29:02.375 –> 00:29:06.355

and so we really haven’t discussed it much in the sense

 

596

00:29:06.465 –> 00:29:11.035

that, um, they haven’t had any problems with our quality.

 

597

00:29:11.275 –> 00:29:15.995

I think, um, uh, since we do a lot

 

598

00:29:15.995 –> 00:29:20.315

of our kind of our personal grading on the farm that, uh,

 

599

00:29:20.335 –> 00:29:22.915

we make sure it meets their standards on the farm, we’re,

 

600

00:29:22.915 –> 00:29:24.035

we have a pretty good idea.

 

601

00:29:24.735 –> 00:29:28.275

Uh, we don’t have that kind of written into the contract

 

602

00:29:28.655 –> 00:29:32.475

as much as they, um, they just hold the idea,

 

603

00:29:32.945 –> 00:29:36.075

they hold the, the right to deny the kelp if they need

 

604

00:29:36.075 –> 00:29:37.395

to, which, okay.

 

605

00:29:38.815 –> 00:29:40.755

So it’s kind of like at, at the point of delivery,

 

606

00:29:41.015 –> 00:29:43.165

would you say that you, that you look it over? Yeah.

 

607

00:29:43.315 –> 00:29:46.045

Okay. Well, um, we deliver it, they take it

 

608

00:29:46.045 –> 00:29:47.365

to the facility and when they process

 

609

00:29:47.465 –> 00:29:48.845

it, they go through it.

 

610

00:29:48.845 –> 00:29:49.965

Okay. And if there’s anything wrong

 

611

00:29:49.965 –> 00:29:51.325

with the kelp, they let us know.

 

612

00:29:51.635 –> 00:29:53.325

They’re like, Hey, we found a piece

 

613

00:29:53.325 –> 00:29:54.965

of tape in there that’s not cool.

 

614

00:29:55.225 –> 00:29:56.565

I’m like, oh geez, sorry.

 

615

00:29:58.105 –> 00:29:59.845

Um, but generally that doesn’t happen.

 

616

00:30:00.145 –> 00:30:01.365

It hasn’t happened yet.

 

617

00:30:01.505 –> 00:30:03.365

And they, we just have talked about

 

618

00:30:03.475 –> 00:30:05.605

that in something that could possibly happen.

 

619

00:30:06.525 –> 00:30:08.895

Okay. So generally within 24 hours?

 

620

00:30:09.635 –> 00:30:11.055

Oh yeah. Yep. Okay.

 

621

00:30:12.595 –> 00:30:16.205

Awesome. And how many days does your buyer have

 

622

00:30:16.265 –> 00:30:18.445

to pay you once you’ve sent them an invoice?

 

623

00:30:19.725 –> 00:30:23.505

Um, again, that’s something we haven’t, we’ve really kind

 

624

00:30:23.505 –> 00:30:25.105

of discussed,

 

625

00:30:25.305 –> 00:30:27.585

although I, I believe it is in the contract it’s

 

626

00:30:28.345 –> 00:30:30.265

normally a, a week or so. They

 

627

00:30:30.855 –> 00:30:31.855

Okay. It’s pretty

 

628

00:30:31.855 –> 00:30:33.325

quickly. Great.

 

629

00:30:34.315 –> 00:30:37.365

That that’s a really great, uh, turnaround time on,

 

630

00:30:37.745 –> 00:30:39.525

on the, the payment terms.

 

631

00:30:39.865 –> 00:30:41.245

And obviously we,

 

632

00:30:41.385 –> 00:30:44.845

we definitely recommend getting paid sooner rather than

 

633

00:30:44.845 –> 00:30:45.925

later if you, if you can.

 

634

00:30:47.425 –> 00:30:50.205

Uh, all right. Let’s go into the logistics a bit.

 

635

00:30:50.345 –> 00:30:53.725

So monitoring, you mentioned being in close coordination

 

636

00:30:53.745 –> 00:30:55.885

and contact with your buyer throughout the year.

 

637

00:30:56.705 –> 00:30:58.605

Um, how often do you provide them

 

638

00:30:58.605 –> 00:31:00.165

with updates on how the kelp is looking?

 

639

00:31:01.115 –> 00:31:03.455

Um, so throughout the year, we’ll, we’ll start

 

640

00:31:03.455 –> 00:31:06.535

and let ’em know when things are planted, um, the amount

 

641

00:31:06.535 –> 00:31:08.015

that’s planted, um,

 

642

00:31:08.015 –> 00:31:11.095

because we’ll have a plan to plant, let’s say we’re,

 

643

00:31:11.095 –> 00:31:14.135

our plan is to plant 10,000 feet, um,

 

644

00:31:14.835 –> 00:31:16.815

but, you know, something might go wrong.

 

645

00:31:17.195 –> 00:31:20.695

Uh, something might break, uh, the seed might not take.

 

646

00:31:21.395 –> 00:31:24.295

And so we just let ’em know the things that are happening.

 

647

00:31:24.355 –> 00:31:28.495

And so we are just, uh, letting ’em know how we progress.

 

648

00:31:28.755 –> 00:31:32.215

And then once kelps in the water around February,

 

649

00:31:33.275 –> 00:31:35.055

really kind of like, get an idea

 

650

00:31:35.055 –> 00:31:36.455

of what’s growing, we’ll let ’em know.

 

651

00:31:36.475 –> 00:31:39.495

And then, you know, as we get closer to March, um,

 

652

00:31:39.705 –> 00:31:40.935

we’ll definitely see some growth.

 

653

00:31:40.995 –> 00:31:43.975

And around March is when we really kind of do biweekly

 

654

00:31:43.975 –> 00:31:46.815

or even weekly, um, updates to ’em.

 

655

00:31:50.165 –> 00:31:51.415

Awesome. That’s great.

 

656

00:31:52.275 –> 00:31:56.695

Um, we definitely support doing more frequent check-ins,

 

657

00:31:56.795 –> 00:31:59.015

the closer you get to your harvest date, both

 

658

00:31:59.015 –> 00:32:02.295

because you have so much logistics to coordinate and

 

659

00:32:02.295 –> 00:32:04.815

because your kelp could be growing so quickly depending on

 

660

00:32:04.815 –> 00:32:07.215

what the, what you know, the sunshine’s doing.

 

661

00:32:09.095 –> 00:32:12.515

Uh, harvest. So you mentioned having a minimum, uh,

 

662

00:32:12.515 –> 00:32:16.515

of 3000 pounds a day, uh, which we’ll add in here.

 

663

00:32:20.275 –> 00:32:21.935

So number of anticipated harvest.

 

664

00:32:22.075 –> 00:32:24.135

Is it fair to say that you would take that 10,000 pounds

 

665

00:32:24.235 –> 00:32:27.775

and just split it up and try to get 3000 pounds a day?

 

666

00:32:27.775 –> 00:32:29.735

So we’re looking at three to four harvests,

 

667

00:32:29.735 –> 00:32:31.215

or is there some other kind

 

668

00:32:31.215 –> 00:32:32.295

of math you do to figure that out?

 

669

00:32:33.165 –> 00:32:36.055

Yeah, I would generally, um, three to four harvest,

 

670

00:32:36.245 –> 00:32:40.245

ideally three for them, but many times four to five for us.

 

671

00:32:41.435 –> 00:32:45.085

Sure. We’ll put three to four, be optimistic.

 

672

00:32:47.245 –> 00:32:49.985

And tell us about the types of containers that you use.

 

673

00:32:50.565 –> 00:32:52.785

Um, who are they provided by and

 

674

00:32:53.045 –> 00:32:55.345

and is there a maximum weight per container,

 

675

00:32:55.345 –> 00:32:57.385

which is often related to quality?

 

676

00:32:58.685 –> 00:33:02.345

Um, yeah, we use insulated, um, totes.

 

677

00:33:02.535 –> 00:33:04.905

They’re just, uh, fish totes pretty much

 

678

00:33:05.225 –> 00:33:06.785

standard, uh, in Alaska.

 

679

00:33:07.565 –> 00:33:12.465

And, um, each tote will fit about a thousand

 

680

00:33:12.465 –> 00:33:16.585

pounds of fronds and about, uh, 850 pounds of stripes.

 

681

00:33:17.405 –> 00:33:22.105

And, um, as long as we’re not doing any sort of custom

 

682

00:33:23.095 –> 00:33:27.105

tote use a thousand pounds in a tote does great.

 

683

00:33:27.485 –> 00:33:31.905

Um, if we were to build a taller, um, tote

 

684

00:33:31.905 –> 00:33:33.065

or something that could hold more

 

685

00:33:33.235 –> 00:33:35.425

where there’s more weight pushing down on the kelp,

 

686

00:33:35.905 –> 00:33:37.705

I think we could run into some issues there.

 

687

00:33:38.085 –> 00:33:41.545

Um, but um, just our standard totes work pretty well.

 

688

00:33:42.665 –> 00:33:45.235

Okay, great. And who is responsible

 

689

00:33:45.235 –> 00:33:47.115

for obtaining those containers?

 

690

00:33:47.615 –> 00:33:50.515

Making sure they’re clean? Um, yeah.

 

691

00:33:51.135 –> 00:33:53.235

Um, we have a couple of our own

 

692

00:33:53.535 –> 00:33:56.195

and they have, uh, a lot more.

 

693

00:33:56.975 –> 00:33:59.355

And, uh, the idea there was that, um,

 

694

00:33:59.415 –> 00:34:01.755

we should just get some, just in case we weren’t able

 

695

00:34:01.755 –> 00:34:05.995

to grab them from their facility, uh, in time for harvest.

 

696

00:34:06.515 –> 00:34:08.435

’cause like I said, it’s a bit of a mad dash

 

697

00:34:08.455 –> 00:34:11.195

and so we’re always looking for the most, the simplest way,

 

698

00:34:11.575 –> 00:34:13.235

the easiest way to make things happen.

 

699

00:34:13.375 –> 00:34:16.155

And so it’s a, it’s definitely kind of a shared thing.

 

700

00:34:16.975 –> 00:34:19.435

And sometimes, like our totes are over there right now,

 

701

00:34:19.435 –> 00:34:22.195

and I haven’t picked ’em up in a couple months, but,

 

702

00:34:23.615 –> 00:34:26.075

So there’s no cost to you at this point to,

 

703

00:34:26.335 –> 00:34:29.075

to use their containers or, or, okay.

 

704

00:34:29.695 –> 00:34:31.055

So it’s both.

 

705

00:34:34.745 –> 00:34:38.365

All right. And you’ve said that the kelp is delivered to

 

706

00:34:39.205 –> 00:34:41.725

barnacle, but then it also sometimes is picked up from

 

707

00:34:41.745 –> 00:34:43.005

the dock by them.

 

708

00:34:43.705 –> 00:34:45.805

Um, what, uh,

 

709

00:34:46.955 –> 00:34:48.965

tell me more about the, you said they’re very close.

 

710

00:34:50.605 –> 00:34:53.125

I know that in, in this case, your buyer is very close.

 

711

00:34:53.305 –> 00:34:55.965

If there were further away, do you think there would be

 

712

00:34:56.685 –> 00:34:58.845

a difference for you in, in pricing

 

713

00:34:58.945 –> 00:35:01.165

or how would you think about those logistics in terms

 

714

00:35:01.165 –> 00:35:02.685

of getting the kelp to the buyer?

 

715

00:35:03.475 –> 00:35:05.045

Yeah. If they were further away,

 

716

00:35:05.045 –> 00:35:07.245

it would definitely be a lot more logistics

 

717

00:35:07.245 –> 00:35:10.085

and having like a, uh, a temperature controlled car

 

718

00:35:10.425 –> 00:35:12.205

or truck that you know mm-hmm.

 

719

00:35:12.635 –> 00:35:14.885

Have to deliver into which, uh,

 

720

00:35:14.985 –> 00:35:16.605

as a farmer I don’t really have the funds

 

721

00:35:16.745 –> 00:35:18.365

to, to do something like that.

 

722

00:35:18.365 –> 00:35:20.045

So I’d have to rely on the buyer for sure.

 

723

00:35:20.895 –> 00:35:21.185

Okay.

 

724

00:35:25.745 –> 00:35:27.925

And what kind of equipment is needed to

 

725

00:35:28.665 –> 00:35:30.045

unload the rock help?

 

726

00:35:30.265 –> 00:35:33.925

And is that equipment that you are responsible for procuring

 

727

00:35:33.985 –> 00:35:37.725

and, and using, or is, is the buyer responsible for that?

 

728

00:35:38.625 –> 00:35:42.565

So, um, we are pretty lucky in that, um,

 

729

00:35:43.065 –> 00:35:46.805

if they come to the dock, there’s a crane right there

 

730

00:35:46.915 –> 00:35:50.645

that is rated for 2,500 pounds, which is far less than

 

731

00:35:50.645 –> 00:35:53.605

what we need or far more than what we need.

 

732

00:35:54.105 –> 00:35:55.245

Um, and

 

733

00:36:00.525 –> 00:36:02.225

you know, we have some ve vehicles on

 

734

00:36:02.225 –> 00:36:03.425

flatbed that gets to the dock.

 

735

00:36:03.535 –> 00:36:06.065

It’s, we don’t really need anything outside of a flatbed.

 

736

00:36:06.325 –> 00:36:08.225

Um, okay. Flatbed and totes.

 

737

00:36:09.325 –> 00:36:12.925

Right. And so that is

 

738

00:36:13.205 –> 00:36:14.485

provided by, so the crane is

 

739

00:36:14.645 –> 00:36:16.805

provided by the, the just the dock and Yeah.

 

740

00:36:16.835 –> 00:36:21.285

That exists. And then the flatbed, is that on you to, to get

 

741

00:36:21.345 –> 00:36:23.765

and pay for, or the buyer to get and pay for?

 

742

00:36:24.265 –> 00:36:27.245

Um, we are working on getting our own flatbed,

 

743

00:36:27.625 –> 00:36:29.045

but also what we have done

 

744

00:36:29.145 –> 00:36:31.045

before, which is not my favorite,

 

745

00:36:31.265 –> 00:36:33.685

is we just pull the skiff out loaded with kelp.

 

746

00:36:33.685 –> 00:36:36.845

Mm-hmm. It’s just a little hard on our little toilet Tacoma,

 

747

00:36:38.705 –> 00:36:43.005

but, um, and we’ll just drive the, the skiff to their yard

 

748

00:36:43.305 –> 00:36:44.685

and they have a forklift there,

 

749

00:36:44.685 –> 00:36:46.325

which that’s another Okay, perfect.

 

750

00:36:46.475 –> 00:36:48.365

Helpful piece of equipment.

 

751

00:36:49.525 –> 00:36:54.255

Okay. Moving on to product weighing,

 

752

00:36:54.755 –> 00:36:56.815

uh, this is something that is often overlooked.

 

753

00:36:56.835 –> 00:36:58.615

People just assume that oh yeah,

 

754

00:36:58.615 –> 00:36:59.735

you weigh the kelp at some point,

 

755

00:36:59.915 –> 00:37:01.855

but when you weigh the kelp

 

756

00:37:01.855 –> 00:37:04.495

and how you weigh the kelp can have a big impact on

 

757

00:37:04.845 –> 00:37:06.975

what the weight number actually is.

 

758

00:37:07.955 –> 00:37:10.775

Uh, so can you tell me a little bit about how

 

759

00:37:10.915 –> 00:37:13.015

and when the kelp gets weighed?

 

760

00:37:14.165 –> 00:37:16.585

Um, yeah. They, they, so traditionally,

 

761

00:37:16.725 –> 00:37:18.945

and this kind of threw me off in the beginning, is

 

762

00:37:18.945 –> 00:37:20.025

that traditionally with fishing,

 

763

00:37:20.025 –> 00:37:23.385

because I’m a commercial fisherman as well, uh, a tr

 

764

00:37:23.385 –> 00:37:25.585

for salmon, uh, in the summer, um,

 

765

00:37:25.775 –> 00:37:27.145

when you sell your salmon,

 

766

00:37:27.215 –> 00:37:28.745

they weigh it right there in front of you

 

767

00:37:29.005 –> 00:37:30.025

and you can see the scale.

 

768

00:37:30.525 –> 00:37:34.065

But, um, they didn’t have a scale

 

769

00:37:34.255 –> 00:37:35.625

available to do that.

 

770

00:37:35.805 –> 00:37:38.265

And so they weigh it at the shop

 

771

00:37:38.445 –> 00:37:40.785

and most of the time we’re not there for it.

 

772

00:37:41.085 –> 00:37:44.105

Um, but again, our, our relationship is good.

 

773

00:37:44.405 –> 00:37:47.585

Um, and so I don’t think there’s anything

 

774

00:37:48.085 –> 00:37:49.105

to worry about there.

 

775

00:37:49.365 –> 00:37:52.105

Um, they do let the kelp drain a little bit,

 

776

00:37:52.405 –> 00:37:55.385

the water drain out, um, before they weigh it.

 

777

00:37:55.845 –> 00:37:56.985

And so, yeah.

 

778

00:38:00.545 –> 00:38:03.395

Okay. And so the buyer takes care of that for you?

 

779

00:38:08.875 –> 00:38:12.515

Um, I am And you’ve already told us

 

780

00:38:12.515 –> 00:38:15.675

that it’s a pretty quick trip from the dock to the buyer,

 

781

00:38:15.735 –> 00:38:18.355

so we’ll, we’ll skip over post harvest storage conditions

 

782

00:38:18.555 –> 00:38:20.515

’cause it doesn’t sound like you are storing much.

 

783

00:38:23.975 –> 00:38:26.945

Alright, moving on to quality control.

 

784

00:38:27.165 –> 00:38:29.305

So you’ve told us that you buy

 

785

00:38:29.845 –> 00:38:33.305

or that you, um, have kind of two separate products.

 

786

00:38:33.305 –> 00:38:35.485

You have the blades and then you have the, the stipes

 

787

00:38:36.465 –> 00:38:38.485

and biofouling.

 

788

00:38:38.665 –> 00:38:40.685

You mentioned, uh, you know, in,

 

789

00:38:40.705 –> 00:38:42.205

in May your kelps growing really fast

 

790

00:38:42.305 –> 00:38:44.045

and so is everything else in the water.

 

791

00:38:44.545 –> 00:38:47.645

So what, what are your agreements

 

792

00:38:47.645 –> 00:38:50.565

with your buyer about the acceptable level of biofouling?

 

793

00:38:51.185 –> 00:38:55.515

Um, we generally don’t have

 

794

00:38:55.515 –> 00:38:59.595

to worry about biofouling until, at least we haven’t yet,

 

795

00:38:59.815 –> 00:39:01.515

uh, until June.

 

796

00:39:02.065 –> 00:39:03.755

Okay. And as long as we’re making harvest

 

797

00:39:03.855 –> 00:39:07.555

before June, uh, we’ve been pretty good about it.

 

798

00:39:07.585 –> 00:39:08.595

However, um,

 

799

00:39:08.595 –> 00:39:11.995

we’ve had quite a few prize zones on June Harvest

 

800

00:39:12.105 –> 00:39:13.275

that we’ve sold barnacle,

 

801

00:39:13.275 –> 00:39:15.755

and that they were fine with it, um, as long

 

802

00:39:15.755 –> 00:39:16.795

as the kelp is healthy.

 

803

00:39:17.465 –> 00:39:21.725

Mm-hmm. Uh, and, uh, it’s, you know, crisp, it’s not limp.

 

804

00:39:22.265 –> 00:39:24.245

Uh, it’s a lot of things

 

805

00:39:24.245 –> 00:39:26.805

that you can definitely see at the farm.

 

806

00:39:27.385 –> 00:39:32.205

Um, and we just know that, you know,

 

807

00:39:32.275 –> 00:39:35.285

that piece isn’t good enough or that piece is, um,

 

808

00:39:35.585 –> 00:39:40.285

and so it’s really just kind of a, we view it.

 

809

00:39:41.965 –> 00:39:46.805

Mm-hmm. So your,

 

810

00:39:47.035 –> 00:39:51.675

your buyer, my understanding is that your buyer, uh, is,

 

811

00:39:51.935 –> 00:39:54.155

has a guide that they provide.

 

812

00:39:54.175 –> 00:39:59.075

Is that true for, for the, to, to give you details on

 

813

00:39:59.075 –> 00:40:00.235

what is acceptable and not?

 

814

00:40:00.295 –> 00:40:02.885

Is that, have you seen that?

 

815

00:40:03.435 –> 00:40:05.645

Okay, I’m sorry, I just froze.

 

816

00:40:08.585 –> 00:40:11.845

Um, your, your buyer’s quality criteria.

 

817

00:40:11.925 –> 00:40:14.565

I, I am wondering if there’s any documentation

 

818

00:40:14.565 –> 00:40:17.725

that helps you understand what their criteria are.

 

819

00:40:19.005 –> 00:40:21.655

Yeah, they have actually a, uh, a processing

 

820

00:40:21.655 –> 00:40:25.375

and handling guide that states, um, the quality of the kelp

 

821

00:40:25.755 –> 00:40:29.455

and just that it’s a, uh, you know, can’t be limp,

 

822

00:40:29.465 –> 00:40:31.335

can’t have a whole bunch of growth all over.

 

823

00:40:31.335 –> 00:40:34.975

It can’t have, I mean, when it comes to biofouling, uh,

 

824

00:40:35.175 –> 00:40:36.575

a lot of times it’s, um,

 

825

00:40:37.635 –> 00:40:39.375

you can tell when that starts to go.

 

826

00:40:39.395 –> 00:40:41.415

And so, like I was saying, fort’s that kind

 

827

00:40:41.415 –> 00:40:42.895

of mad dash to get,

 

828

00:40:54.645 –> 00:40:55.995

Let’s see if Johnny comes back here,

 

829

00:40:55.995 –> 00:40:56.995

Which, um, go further.

 

830

00:40:58.215 –> 00:40:59.755

Oh yeah, sorry.

 

831

00:40:59.875 –> 00:41:01.595

We haven’t had a situation where, um,

 

832

00:41:01.825 –> 00:41:03.675

it’s gone further than they were comfortable with.

 

833

00:41:03.705 –> 00:41:04.915

Okay. And so we just

 

834

00:41:09.775 –> 00:41:11.145

make the effort to harvest

 

835

00:41:11.165 –> 00:41:12.705

before biofouling becomes an issue.

 

836

00:41:14.125 –> 00:41:15.915

Great. I’m just gonna turn off my video for a little bit.

 

837

00:41:17.145 –> 00:41:21.355

That seems like a great decision. Okay.

 

838

00:41:21.935 –> 00:41:24.985

Um, in the interest of time,

 

839

00:41:25.055 –> 00:41:29.635

because I spent too much time up at the top, we are going

 

840

00:41:29.735 –> 00:41:31.835

to, uh, skip down here.

 

841

00:41:32.165 –> 00:41:36.485

Processing and shipping is largely not relevant for you

 

842

00:41:36.485 –> 00:41:38.685

because your buyer is doing their own processing.

 

843

00:41:38.685 –> 00:41:41.765

There was one piece I wanted to ask you about though, um,

 

844

00:41:42.985 –> 00:41:46.205

my, based on our conversation ahead of this call, uh,

 

845

00:41:46.405 –> 00:41:49.405

I understand that you are actually doing some cutting of,

 

846

00:41:49.945 –> 00:41:51.525

of the stipes, you’re measuring the

 

847

00:41:51.685 –> 00:41:53.005

stripes and you’re cutting them.

 

848

00:41:53.825 –> 00:41:55.885

Can you tell me about how it was decided

 

849

00:41:56.505 –> 00:41:58.965

or why it was decided that you all would take

 

850

00:41:58.965 –> 00:42:00.445

that on versus your buyer?

 

851

00:42:00.985 –> 00:42:03.765

And did that affect anything else in your conversations in

 

852

00:42:03.765 –> 00:42:04.805

terms of like the pricing

 

853

00:42:04.945 –> 00:42:08.725

or, um, just how was that division of labor decided upon?

 

854

00:42:10.495 –> 00:42:13.425

Yeah, um, so they, so two, two reasons.

 

855

00:42:13.805 –> 00:42:18.105

Um, if you leave a piece of bull kelp, a bunch of pieces

 

856

00:42:18.125 –> 00:42:22.785

of bull kelp in a container, um, as they,

 

857

00:42:22.895 –> 00:42:25.945

because they’re pretty long as they curl around

 

858

00:42:25.945 –> 00:42:29.185

and fall to put stress on the parts of the bull kelp

 

859

00:42:29.285 –> 00:42:33.305

and that stress can lead to some sort of degradation, um,

 

860

00:42:33.735 –> 00:42:38.105

that, and in part the, they have these totes

 

861

00:42:38.215 –> 00:42:41.585

that are around, uh, 20 inches

 

862

00:42:41.935 –> 00:42:44.385

that they’ll like handle the kelp when they’re processing.

 

863

00:42:44.885 –> 00:42:47.745

And so it’s our goal to be able to have the pieces

 

864

00:42:47.765 –> 00:42:50.425

of kelp fit in those totes really easily.

 

865

00:42:50.525 –> 00:42:54.945

And so, a while, I, I I, they mention about 18 inches,

 

866

00:42:55.135 –> 00:42:57.865

it’s anywhere between a foot and 20 inches really,

 

867

00:42:58.245 –> 00:43:00.305

but 18 inches is kind of that sweet spot.

 

868

00:43:05.245 –> 00:43:08.495

Okay. So that, so that’s something where you’re doing that

 

869

00:43:09.195 –> 00:43:13.095

on your end because if it, if you were, if you didn’t do it

 

870

00:43:13.915 –> 00:43:17.175

sooner, then the overall quality of the kelp would,

 

871

00:43:17.175 –> 00:43:19.415

could be damaged, which then would make it harder

 

872

00:43:19.555 –> 00:43:21.375

for the buyer to get the most value

 

873

00:43:21.375 –> 00:43:23.055

for it later on. Is that right? Correct.

 

874

00:43:23.395 –> 00:43:26.755

Yep. Awesome. Okay.

 

875

00:43:27.055 –> 00:43:29.755

And then I just wanna, we’re not gonna have time to go

 

876

00:43:29.755 –> 00:43:31.435

through this, but I did wanna call it out down here.

 

877

00:43:32.025 –> 00:43:34.315

Some of what we’ve been doing as we go

 

878

00:43:34.315 –> 00:43:36.555

through this is just talk through what,

 

879

00:43:36.855 –> 00:43:38.395

who is responsible for what.

 

880

00:43:38.415 –> 00:43:40.195

And so down here at the bottom we also just have,

 

881

00:43:40.255 –> 00:43:43.995

we have this kind of summary list of who is responsible

 

882

00:43:44.015 –> 00:43:46.875

for coordination of X

 

883

00:43:47.255 –> 00:43:49.275

and expenses of X.

 

884

00:43:49.295 –> 00:43:50.515

And those could be two different things.

 

885

00:43:50.615 –> 00:43:54.115

You could say, you know, the buyer could buy the totes,

 

886

00:43:54.115 –> 00:43:55.315

but you could be responsible,

 

887

00:43:55.315 –> 00:43:56.915

the farmer could be responsible for making sure

 

888

00:43:56.915 –> 00:43:59.715

that they’re clean, um, or that they’re readily available.

 

889

00:44:00.215 –> 00:44:02.715

And it can help to have all of this in just one place.

 

890

00:44:02.815 –> 00:44:04.355

So you can just run through it

 

891

00:44:04.355 –> 00:44:07.555

and make sure that both parties are clear on who is doing

 

892

00:44:07.555 –> 00:44:09.275

what, who’s responsible for what.

 

893

00:44:10.695 –> 00:44:13.635

Um, so I’m gonna stop my screen share now

 

894

00:44:13.695 –> 00:44:18.435

and just zoom back out a little bit to talk about, um, just

 

895

00:44:18.785 –> 00:44:21.835

what having a signed contract does for you.

 

896

00:44:22.455 –> 00:44:25.555

So Johnny, I would love to know, um, you know,

 

897

00:44:25.555 –> 00:44:27.395

when you think about having a buyer,

 

898

00:44:27.455 –> 00:44:29.475

you said we’re very lucky to have this buyer, uh,

 

899

00:44:29.495 –> 00:44:31.725

who you have a close relationship with, you know,

 

900

00:44:31.835 –> 00:44:34.045

what did having, what does having a contract

 

901

00:44:34.065 –> 00:44:36.205

or a relationship with this buyer allow you to do

 

902

00:44:36.225 –> 00:44:38.205

as a farmer that you wouldn’t be able

 

903

00:44:38.205 –> 00:44:39.805

to do if you, if you didn’t have that?

 

904

00:44:41.145 –> 00:44:43.685

Oh, it’s huge. Um, and so like

 

905

00:44:44.405 –> 00:44:46.885

whenever you are taught to work with anyone,

 

906

00:44:47.385 –> 00:44:50.285

if you have a buyer, people will listen to you

 

907

00:44:50.825 –> 00:44:52.565

If you don’t, good luck.

 

908

00:44:54.465 –> 00:44:58.045

And so it, it really kind of, it creates a lot of clout in,

 

909

00:44:58.185 –> 00:45:00.725

in developing your buyer beforehand,

 

910

00:45:01.465 –> 00:45:03.725

but also it’s a huge sense of security.

 

911

00:45:04.195 –> 00:45:08.365

Like if you are gonna be a com a kelp, farmer, farmer,

 

912

00:45:08.365 –> 00:45:11.365

it’s a lot of work and a lot of sacrifice.

 

913

00:45:12.025 –> 00:45:15.125

And if you don’t have a place to put your kelp,

 

914

00:45:15.785 –> 00:45:16.965

it can be in vain.

 

915

00:45:19.205 –> 00:45:21.765

Yeah, absolutely.

 

916

00:45:22.385 –> 00:45:25.615

Um, so we’re gonna move to questions soon,

 

917

00:45:25.675 –> 00:45:28.135

but I, I think that Johnny, one thing that you’ve called out

 

918

00:45:28.135 –> 00:45:31.135

that I want to emphasize is

 

919

00:45:31.135 –> 00:45:35.215

that these contracts are here to document the relationship,

 

920

00:45:35.475 –> 00:45:38.135

but actions are really what matters, right?

 

921

00:45:38.395 –> 00:45:41.775

So this contract makes clear what you’re committing to

 

922

00:45:41.955 –> 00:45:44.415

and what your buyer is committing to.

 

923

00:45:44.555 –> 00:45:47.375

And the lawyers are involved, legalese is involved

 

924

00:45:47.715 –> 00:45:49.775

to ensure clarity and to ensure

 

925

00:45:49.775 –> 00:45:51.495

that these commitments are legally binding.

 

926

00:45:51.495 –> 00:45:53.615

And that’s to protect, again, both parties not,

 

927

00:45:53.675 –> 00:45:54.695

not one or the other.

 

928

00:45:55.315 –> 00:45:58.615

Um, but they’re really here for worst case scenarios.

 

929

00:45:58.875 –> 00:46:02.575

So if the relationship is strong as you told us, Johnny,

 

930

00:46:02.575 –> 00:46:07.215

like you don’t have to use fall back on the, um,

 

931

00:46:07.595 –> 00:46:09.695

you know, the, the terms in the contract that say,

 

932

00:46:09.695 –> 00:46:13.175

well if this happens and this is our recourse, you,

 

933

00:46:13.315 –> 00:46:15.535

you can work it out in most cases.

 

934

00:46:15.995 –> 00:46:19.375

And that is the beauty of developing long-term relationships

 

935

00:46:19.565 –> 00:46:22.895

between real people within a business over the long term

 

936

00:46:23.115 –> 00:46:25.535

versus having these kind of one-off transactions.

 

937

00:46:25.555 –> 00:46:28.215

And I think when, when we think about building this industry

 

938

00:46:28.215 –> 00:46:30.295

and building value chains that work for everyone, that’s

 

939

00:46:30.295 –> 00:46:33.615

what we’re really aiming for is these solid partnerships

 

940

00:46:33.755 –> 00:46:34.935

across the value chain.

 

941

00:46:35.395 –> 00:46:36.495

Um, and,

 

942

00:46:37.075 –> 00:46:39.695

and having these contracts is an important part

 

943

00:46:39.695 –> 00:46:41.055

of the maturing industry,

 

944

00:46:41.555 –> 00:46:44.295

but the relationships is what’s gonna make everybody thrive

 

945

00:46:44.355 –> 00:46:48.055

and everybody, uh, you know, have this blue economy

 

946

00:46:48.055 –> 00:46:50.815

that we’re all really striving to, to build.

 

947

00:46:51.555 –> 00:46:53.535

Um, so the goal of this guide, the goal

 

948

00:46:53.535 –> 00:46:54.975

of these resources is really

 

949

00:46:54.975 –> 00:46:56.975

to help smooth over these interfacing points

 

950

00:46:57.085 –> 00:46:59.175

between the different roles in the value chain

 

951

00:46:59.915 –> 00:47:02.615

and make it so that these value chains start

 

952

00:47:02.615 –> 00:47:04.135

to work together a little bit more easily

 

953

00:47:04.135 –> 00:47:07.295

because all of the different players are really needed in

 

954

00:47:07.295 –> 00:47:09.095

order to, to make it successful.

 

955

00:47:11.015 –> 00:47:13.995

So with that, I’ll hand it back to Lindsay for q and a.

 

956

00:47:14.865 –> 00:47:16.195

Awesome. Thanks Sam.

 

957

00:47:16.215 –> 00:47:18.595

And thanks Johnny, um, for being our Guinea pig and,

 

958

00:47:18.615 –> 00:47:21.435

and really putting some life into that um,

 

959

00:47:21.865 –> 00:47:23.035

term sheet for the first time.

 

960

00:47:23.495 –> 00:47:25.035

Uh, it’s exciting to see it.

 

961

00:47:25.215 –> 00:47:28.035

Uh, I can see it applied to a real life scenario.

 

962

00:47:29.665 –> 00:47:33.445

Um, alright, please everyone, uh, use the chat function

 

963

00:47:33.465 –> 00:47:36.765

to throw any, uh, questions that you have, um, about any

 

964

00:47:36.765 –> 00:47:38.485

of the resources that we mentioned at the beginning

 

965

00:47:38.485 –> 00:47:40.525

of the call or anything that came up in the discussion

 

966

00:47:40.525 –> 00:47:41.725

between Sam and Johnny.

 

967

00:47:42.265 –> 00:47:44.725

Um, we’re happy to answer those.

 

968

00:47:45.105 –> 00:47:48.525

Um, there was one that came in from em Emre earlier on.

 

969

00:47:49.665 –> 00:47:54.085

Um, they ask when wet, is there a water content criteria?

 

970

00:47:54.665 –> 00:47:57.205

So I think this kind of gets back to the,

 

971

00:47:57.235 –> 00:47:58.405

what you were talking about, Sam,

 

972

00:47:58.405 –> 00:48:00.765

around there not being an established pro protocol

 

973

00:48:00.825 –> 00:48:02.125

for weighing the kelp.

 

974

00:48:02.345 –> 00:48:03.725

Um, do you wanna comment on that?

 

975

00:48:08.005 –> 00:48:10.575

Yeah, uh,

 

976

00:48:10.785 –> 00:48:13.975

there is not a water content criteria right now

 

977

00:48:14.365 –> 00:48:16.215

that is standard across the industry.

 

978

00:48:16.355 –> 00:48:17.855

So in general,

 

979

00:48:17.855 –> 00:48:21.215

people talk about the internal content water content of most

 

980

00:48:21.355 –> 00:48:23.695

of, of sugar kelp being, uh, 90%.

 

981

00:48:24.235 –> 00:48:28.015

But what we’re, uh, mostly trying

 

982

00:48:28.015 –> 00:48:29.855

to think about when it comes to the weighing is,

 

983

00:48:29.875 –> 00:48:32.975

is not the internal water which we want farmers to get paid

 

984

00:48:32.975 –> 00:48:35.575

for, but it’s the external water, any of the surface water.

 

985

00:48:35.595 –> 00:48:37.455

And that’s really hard to account for.

 

986

00:48:37.835 –> 00:48:40.255

Um, and so we, uh, that is something

 

987

00:48:40.255 –> 00:48:41.455

that green wave’s thinking a lot about

 

988

00:48:41.795 –> 00:48:43.055

and we’re talking to farmers about.

 

989

00:48:43.635 –> 00:48:45.975

And, uh, you know, some of the things

 

990

00:48:46.845 –> 00:48:48.175

that other industries do,

 

991

00:48:48.175 –> 00:48:51.775

other agricultural industries do is that they, uh, you know,

 

992

00:48:51.775 –> 00:48:55.455

they get, get a lot of data, they just get the crop

 

993

00:48:55.635 –> 00:48:58.135

and they weigh it in various conditions

 

994

00:48:58.135 –> 00:49:01.735

and they start to establish, um, huge bodies of, of data

 

995

00:49:01.735 –> 00:49:05.815

that they can pull from to, to, uh, so that if you weigh,

 

996

00:49:06.275 –> 00:49:07.735

you know, a bushel of corn

 

997

00:49:07.875 –> 00:49:11.615

and it weighs, um, this amount, that means it probably has,

 

998

00:49:11.675 –> 00:49:13.775

you know, 13% water or something like that.

 

999

00:49:14.395 –> 00:49:17.415

Um, so we are definitely not at that point in the industry,

 

1000

00:49:17.715 –> 00:49:20.935

but, um, one way to get around it is

 

1001

00:49:20.935 –> 00:49:22.095

to weigh the finished product.

 

1002

00:49:22.315 –> 00:49:26.015

If that finished product is dried, for example, you can dry

 

1003

00:49:26.035 –> 00:49:29.055

to a very specific water content or water activity

 

1004

00:49:29.315 –> 00:49:30.335

and or water activity.

 

1005

00:49:30.755 –> 00:49:34.535

And that is one way that, that you can standardize it is, is

 

1006

00:49:34.535 –> 00:49:36.055

to get it into another format and,

 

1007

00:49:36.055 –> 00:49:38.615

and just, uh, pay based on that.

 

1008

00:49:41.435 –> 00:49:44.585

Great. Thanks. Um,

 

1009

00:49:45.475 –> 00:49:47.465

Chuck asked a question that has to do.

 

1010

00:49:47.885 –> 00:49:49.865

So when you have a customer that is buying both wild

 

1011

00:49:49.865 –> 00:49:52.225

and farm seaweed, how do you establish a price per pound?

 

1012

00:49:52.485 –> 00:49:54.505

So speaking in general terms,

 

1013

00:49:54.565 –> 00:49:57.145

not talking about any specific numbers, um,

 

1014

00:49:57.595 –> 00:49:59.185

maybe Johnny I’ll ask you what are some

 

1015

00:49:59.185 –> 00:50:01.945

of the factors I’ll rephrase the question to, to ask.

 

1016

00:50:01.945 –> 00:50:03.665

What are some of the factors that

 

1017

00:50:04.205 –> 00:50:07.185

you took into consideration when having the discussion on

 

1018

00:50:07.195 –> 00:50:09.385

price with your buyer to ensure

 

1019

00:50:09.385 –> 00:50:12.905

that you were getting the correct value for your product?

 

1020

00:50:14.645 –> 00:50:15.695

Yeah, that’s a great question.

 

1021

00:50:15.915 –> 00:50:20.895

Um, right now, um, so, uh, we had a conversation

 

1022

00:50:20.895 –> 00:50:24.415

with barnacle in that what they could do

 

1023

00:50:24.925 –> 00:50:29.845

because they wanted to see our, our farm succeed so

 

1024

00:50:29.845 –> 00:50:31.285

that it would help them succeed.

 

1025

00:50:31.865 –> 00:50:35.405

And so our first year they offered us a higher price, uh,

 

1026

00:50:35.405 –> 00:50:37.725

which came down the second year.

 

1027

00:50:37.865 –> 00:50:40.485

And I imagine it might come down in the future,

 

1028

00:50:40.745 –> 00:50:43.685

but those conversations we can’t, haven’t quite had.

 

1029

00:50:43.865 –> 00:50:45.685

And really the big thing

 

1030

00:50:45.685 –> 00:50:47.565

and since we have a good working relationship

 

1031

00:50:47.565 –> 00:50:50.085

with them is understanding the efficiencies of each other.

 

1032

00:50:50.195 –> 00:50:53.245

Like, all right, can you afford to take it at this price?

 

1033

00:50:53.765 –> 00:50:55.405

’cause we can’t, you know,

 

1034

00:50:55.545 –> 00:50:58.725

and just being very transparent with them

 

1035

00:50:59.065 –> 00:51:00.885

and that we all want this to work.

 

1036

00:51:01.265 –> 00:51:06.245

And just having that, um, idea forward is

 

1037

00:51:06.245 –> 00:51:09.405

that, um, really kind of, um, helps a lot.

 

1038

00:51:11.445 –> 00:51:14.495

Awesome. Um, okay, another question

 

1039

00:51:14.495 –> 00:51:16.015

for you Johnny from Chris Arnold.

 

1040

00:51:16.275 –> 00:51:17.575

Um, he says, thanks for sharing.

 

1041

00:51:17.995 –> 00:51:19.975

Do you have an idea of how much harvest do you have

 

1042

00:51:19.975 –> 00:51:22.015

to throw away either because it was difficult

 

1043

00:51:22.015 –> 00:51:24.255

to find a buyer or it vowed?

 

1044

00:51:25.645 –> 00:51:28.625

Um, yeah, there are certain parts of the, the kelp

 

1045

00:51:28.625 –> 00:51:30.945

that barnacle or that our bar doesn’t take

 

1046

00:51:31.605 –> 00:51:35.465

and, uh, um, which we then just, uh,

 

1047

00:51:35.495 –> 00:51:37.985

it’s mainly just the smaller parts of the stip.

 

1048

00:51:38.685 –> 00:51:43.425

Um, and so we just cut it away and it goes away.

 

1049

00:51:43.475 –> 00:51:46.585

We’re, we’re currently working on trying to get some sort

 

1050

00:51:46.585 –> 00:51:49.585

of fermentation so that we can actually utilize that,

 

1051

00:51:49.725 –> 00:51:52.385

but if we, and we don’t have a dryer currently,

 

1052

00:51:52.385 –> 00:51:54.545

we’re actually working on trying to develop a dryer,

 

1053

00:51:55.085 –> 00:51:57.385

but right now we would have to freeze it.

 

1054

00:51:57.405 –> 00:52:01.665

And then paying for that much cold storage would be a cost

 

1055

00:52:01.745 –> 00:52:04.625

that we could not, um, cover at this point.

 

1056

00:52:05.285 –> 00:52:07.025

So we just cut it away

 

1057

00:52:07.765 –> 00:52:10.865

and it floats on by with the other kelp patties.

 

1058

00:52:14.375 –> 00:52:17.155

Um, so that sort of relates to, uh, gertrude’s question

 

1059

00:52:17.155 –> 00:52:20.075

below of how, where can felt kelp be discarded?

 

1060

00:52:20.135 –> 00:52:23.155

So ideally, um, no kelp is discarded.

 

1061

00:52:23.155 –> 00:52:25.755

Ideally you have, uh, multiple different types of markets

 

1062

00:52:25.825 –> 00:52:27.595

that your kelp, uh, can be sold to,

 

1063

00:52:27.595 –> 00:52:31.435

as Johnny was mentioning, um, a bio stimulant or a compost

 

1064

00:52:31.435 –> 00:52:33.795

or fertilizer for that, that bio feld kelp.

 

1065

00:52:34.175 –> 00:52:36.715

Uh, but if not it, it can be, um,

 

1066

00:52:38.355 –> 00:52:39.675

released from the farm into the water.

 

1067

00:52:40.655 –> 00:52:42.115

Um, Gertrude second question.

 

1068

00:52:42.335 –> 00:52:43.675

Sam, maybe you wanna take this one.

 

1069

00:52:43.735 –> 00:52:45.515

So what are other raw materials?

 

1070

00:52:45.695 –> 00:52:48.835

Um, maybe talking a little bit about that processing piece.

 

1071

00:52:49.925 –> 00:52:51.015

Yeah, absolutely.

 

1072

00:52:51.275 –> 00:52:54.535

So we included a section in the term sheet

 

1073

00:52:54.915 –> 00:52:59.815

and in the second order form that is attached in the,

 

1074

00:52:59.815 –> 00:53:03.615

uh, in the farmer’s guide, that is all about this situation

 

1075

00:53:03.615 –> 00:53:06.655

where your buyer actually wants you to do some

 

1076

00:53:06.655 –> 00:53:08.135

of the processing as a farmer.

 

1077

00:53:08.555 –> 00:53:10.455

So in this situation, it’s likely

 

1078

00:53:10.525 –> 00:53:13.375

that the buyer has some kind of process that,

 

1079

00:53:13.445 –> 00:53:14.895

that they’ve been doing on their own

 

1080

00:53:14.995 –> 00:53:17.175

or that they’ve been having a co-packer do,

 

1081

00:53:17.315 –> 00:53:19.495

and they want you to do it

 

1082

00:53:19.495 –> 00:53:22.695

because it’s closer to the farm, um,

 

1083

00:53:22.695 –> 00:53:24.855

because it will stabilize the kelp,

 

1084

00:53:24.855 –> 00:53:26.925

which then means you don’t need to use, uh,

 

1085

00:53:26.925 –> 00:53:29.125

refrigeration in your shipping of the kelp.

 

1086

00:53:29.745 –> 00:53:34.405

So in this situation, your buyer will give you a list

 

1087

00:53:34.405 –> 00:53:35.965

of ingredients and instructions

 

1088

00:53:35.965 –> 00:53:37.085

for handling those ingredients

 

1089

00:53:37.085 –> 00:53:38.885

and instructions for incorporating the

 

1090

00:53:38.885 –> 00:53:40.045

kelp into those ingredients.

 

1091

00:53:40.425 –> 00:53:42.405

Um, it could be things, so this is,

 

1092

00:53:42.405 –> 00:53:44.605

this is usually ambient temperature stabilization

 

1093

00:53:44.605 –> 00:53:45.725

from what we’ve seen so far.

 

1094

00:53:45.825 –> 00:53:48.485

So things like fermentation, things like, um,

 

1095

00:53:48.925 –> 00:53:51.605

chemical stabilization with various reagents.

 

1096

00:53:52.145 –> 00:53:55.165

Um, and it usually involves, you know,

 

1097

00:53:56.055 –> 00:53:57.885

processing the kelp into smaller pieces

 

1098

00:53:57.985 –> 00:53:59.165

and then mixing it with these things

 

1099

00:53:59.165 –> 00:54:00.605

and then putting it into some kind

 

1100

00:54:00.605 –> 00:54:02.605

of like IBC tote or something like that.

 

1101

00:54:03.745 –> 00:54:07.085

Um, so those are the things that the types

 

1102

00:54:07.105 –> 00:54:09.605

of situations in which other raw materials might be

 

1103

00:54:10.045 –> 00:54:12.885

included, usually that, that is a recipe that is owned

 

1104

00:54:13.505 –> 00:54:15.885

or at least selected by the buyer

 

1105

00:54:16.345 –> 00:54:17.965

for their specific end use cases.

 

1106

00:54:18.505 –> 00:54:19.965

So that’s not usually something that,

 

1107

00:54:19.965 –> 00:54:22.285

that you would be inventing on your own

 

1108

00:54:22.285 –> 00:54:24.005

unless you were taking that kelp

 

1109

00:54:24.005 –> 00:54:26.165

and that value added product all the way to market yourself.

 

1110

00:54:29.845 –> 00:54:31.635

Great. Thanks Sam. Mm-hmm.

 

1111

00:54:32.095 –> 00:54:33.555

Um, awesome.

 

1112

00:54:34.015 –> 00:54:35.915

If there are more questions, please pop ’em in the chat.

 

1113

00:54:36.255 –> 00:54:38.315

Um, we also have a couple questions from farmers

 

1114

00:54:38.345 –> 00:54:41.715

that reviewed the guide, uh, and it’s draft form and, and

 

1115

00:54:41.995 –> 00:54:43.915

provided feedback as Grace was saying, um,

 

1116

00:54:44.255 –> 00:54:46.715

to better in inform, uh, the way

 

1117

00:54:46.715 –> 00:54:48.355

that we were shaping the, the resource.

 

1118

00:54:49.015 –> 00:54:50.995

And Johnny, I wondered if you could comment on this.

 

1119

00:54:51.015 –> 00:54:54.035

So the guide multiple times mentions a scheduling dedicated

 

1120

00:54:54.035 –> 00:54:56.435

time to provide feedback, um, to one another

 

1121

00:54:56.435 –> 00:54:57.515

between the farmer and the buyer.

 

1122

00:54:57.775 –> 00:54:59.595

And you’ve talked multiple, um, times about

 

1123

00:54:59.615 –> 00:55:02.315

how your relationship with the buyer is quite strong.

 

1124

00:55:02.895 –> 00:55:05.075

Um, what has this feedback process looked

 

1125

00:55:05.075 –> 00:55:06.275

like for you over the years?

 

1126

00:55:07.935 –> 00:55:11.795

Uh, yeah, they will take the kelp, um, and then

 

1127

00:55:11.795 –> 00:55:12.955

after they take the kelp,

 

1128

00:55:13.245 –> 00:55:15.235

we’ll just get in contact on a phone call,

 

1129

00:55:15.775 –> 00:55:16.995

uh, just say, Hey, how’d it look?

 

1130

00:55:17.005 –> 00:55:19.915

Everything great? And normally it’s like, yeah,

 

1131

00:55:19.915 –> 00:55:21.275

it’s the best stuff we’ve ever seen.

 

1132

00:55:22.375 –> 00:55:26.395

But, um, it, there has been cases where it’s just like,

 

1133

00:55:26.625 –> 00:55:30.115

yeah, some of the, the, that was a little small

 

1134

00:55:30.535 –> 00:55:32.715

and so if you could make sure we’re,

 

1135

00:55:32.715 –> 00:55:33.915

you’re just targeting the bigger stuff.

 

1136

00:55:34.335 –> 00:55:38.995

Um, but again, that’s, uh, it’s just been, uh,

 

1137

00:55:39.175 –> 00:55:42.195

either started like we just text each other like, Hey,

 

1138

00:55:42.195 –> 00:55:43.355

you got a, a minute to talk

 

1139

00:55:43.655 –> 00:55:44.835

and then we’ll just kind

 

1140

00:55:44.835 –> 00:55:48.555

of chat about it usually before they pay us.

 

1141

00:55:52.205 –> 00:55:55.095

Nice. And how long did the process,

 

1142

00:55:55.235 –> 00:55:57.855

it sounds like you guys, um, have a really kind

 

1143

00:55:57.855 –> 00:56:00.175

of robust understanding of the product you’re delivering.

 

1144

00:56:00.175 –> 00:56:02.135

You’ve executed on that order several times.

 

1145

00:56:02.635 –> 00:56:05.615

Um, how long did that take from that initial conversation

 

1146

00:56:05.875 –> 00:56:08.695

to, with the buyer to actually close the deal

 

1147

00:56:08.755 –> 00:56:10.895

or get a purchase order or contract in place?

 

1148

00:56:12.765 –> 00:56:17.545

Um, our first year in planting, um,

 

1149

00:56:18.165 –> 00:56:22.145

we were in talks, um, before we were planting

 

1150

00:56:23.245 –> 00:56:27.965

and, um, since they were very gung-ho, they were very, um,

 

1151

00:56:28.745 –> 00:56:32.285

uh, liberal and loose with how things were moving.

 

1152

00:56:32.305 –> 00:56:36.445

And so we just, we signed a contract that first year, um,

 

1153

00:56:36.555 –> 00:56:38.285

shortly after out planting.

 

1154

00:56:39.145 –> 00:56:41.085

And so it was, it was pretty quick.

 

1155

00:56:44.305 –> 00:56:46.585

Awesome. That’s great.

 

1156

00:56:49.055 –> 00:56:51.385

Alright, last call for questions from the audience.

 

1157

00:56:51.565 –> 00:56:55.185

Any final questions for Johnny? Sam Grace? Um,

 

1158

00:56:56.085 –> 00:56:58.185

And real quick on that note, um,

 

1159

00:56:59.615 –> 00:57:03.785

when we were making our farm, uh, the,

 

1160

00:57:03.805 –> 00:57:06.705

the buyer wanted to make sure that we were serious,

 

1161

00:57:07.445 –> 00:57:09.945

you know, that we weren’t just gonna like go out there

 

1162

00:57:09.945 –> 00:57:11.345

and throw some stuff in the ocean

 

1163

00:57:11.405 –> 00:57:13.065

and oh, sorry, it didn’t work.

 

1164

00:57:13.405 –> 00:57:16.385

As soon as we outplant it, it kind of gave us a little clout

 

1165

00:57:16.385 –> 00:57:19.905

and a little, they were, um, they knew we were serious.

 

1166

00:57:20.285 –> 00:57:21.905

And so that helped a lot.

 

1167

00:57:21.905 –> 00:57:23.225

And so it’s, it’s always kind

 

1168

00:57:23.225 –> 00:57:24.545

of like a chicken and egg type thing.

 

1169

00:57:24.545 –> 00:57:27.745

It’s just like you want to feel secure in that you’re going

 

1170

00:57:27.745 –> 00:57:29.745

to pro, uh, you’re gonna get paid for this product,

 

1171

00:57:29.805 –> 00:57:31.785

but then they also wanna feel secure in that you’re going

 

1172

00:57:31.785 –> 00:57:33.945

to develop this product before signing a contract.

 

1173

00:57:34.765 –> 00:57:39.425

And there’s, um, they had run into an issue

 

1174

00:57:39.425 –> 00:57:43.345

where they committed to buy kelp before that didn’t grow,

 

1175

00:57:43.805 –> 00:57:45.305

but that wasn’t on their contract.

 

1176

00:57:45.305 –> 00:57:48.665

And so they had had to pay for the kelp that didn’t grow,

 

1177

00:57:49.195 –> 00:57:51.305

which was an unfortunate occurrence, which kind

 

1178

00:57:51.305 –> 00:57:53.665

of definitely scarred them in that, in that area.

 

1179

00:57:53.885 –> 00:57:55.785

But I guess that was a lesson learned.

 

1180

00:57:58.185 –> 00:58:00.545

That’s a really great point. Awesome.

 

1181

00:58:00.545 –> 00:58:03.225

Yeah, and again, just speaks to the, the importance

 

1182

00:58:03.225 –> 00:58:04.585

of building that relationship, um,

 

1183

00:58:04.585 –> 00:58:05.945

which it sounds like you’ve done

 

1184

00:58:06.205 –> 00:58:07.625

so beautifully over the years.

 

1185

00:58:08.675 –> 00:58:11.085

Awesome. Well, thank you Johnny so much, um,

 

1186

00:58:11.225 –> 00:58:12.765

for being our Guinea pig, uh,

 

1187

00:58:12.915 –> 00:58:15.365

with this term sheet, this, uh, today.

 

1188

00:58:15.465 –> 00:58:16.685

And thanks to Sam and Grace

 

1189

00:58:16.705 –> 00:58:18.845

for all the hard work you guys put into this guide.

 

1190

00:58:19.345 –> 00:58:22.045

Um, we will be sharing it out with everyone

 

1191

00:58:22.045 –> 00:58:25.885

who joined this webinar, um, and registered for the resource

 

1192

00:58:25.985 –> 00:58:27.085

and more come January.

 

1193

00:58:27.825 –> 00:58:30.045

Uh, and I just want to put on your radar,

 

1194

00:58:30.225 –> 00:58:32.205

our next former forum conversation will be

 

1195

00:58:32.205 –> 00:58:34.805

after the new year on, uh, January 9th.

 

1196

00:58:34.805 –> 00:58:37.005

We’re gonna be talking about estimating yields, which

 

1197

00:58:37.975 –> 00:58:40.085

again plays directly into the same themes

 

1198

00:58:40.085 –> 00:58:42.765

that we were just discussing about how can you, uh,

 

1199

00:58:43.165 –> 00:58:45.405

communicate clearly with your buyer about, um,

 

1200

00:58:45.475 –> 00:58:47.125

what you’re seeing out on your farm

 

1201

00:58:47.225 –> 00:58:49.125

and how it impacts, uh, the agreement

 

1202

00:58:49.155 –> 00:58:50.645

that you, uh, have in place.

 

1203

00:58:51.585 –> 00:58:53.805

And so we’ll dig into the, some of the details there.

 

1204

00:58:54.185 –> 00:58:57.005

Um, and thank you all for joining us

 

1205

00:58:57.105 –> 00:58:59.845

and uh, have a very happy holiday season.