Juneau - Sen. John Cowdery has helped facilitate a major seafood contract between Alaska-based KOAS, Ltd. and a Korean subsidiary of the Lotte Group, Ltd., a Korea-based food processing, retail marketing and restaurant company.

"This contract will significantly brighten the economy of Alaska's seafood sector," said Sen. Cowdery (R-Anchorage), who helped negotiate the contract in his role as chairman of the Senate World Trade and State/Federal Relations Committee.

The Lotte Group subsidiary has contracted to import at least 4.2 million pounds of Alaska pink salmon annually through 2009. For this year, Lotte has agreed to the immediate purchase of 3 million pounds of this quantity of pink salmon for the Korean market. A majority of the processing will be done in Alaska for the first year of the contract, Sen. Cowdery said.

The 5-year contract guarantees equal or increased purchases of wild Alaska pink salmon each year. The contract also calls for purchase of other Alaska seafood in an amount to be determined. Supply, price and quantity will be determined on mutual agreement at the beginning of each fish season.

During the past several years as many as 50 percent of the pink salmon fishermen in Alaska have gone out of business. Also, tens of millions of pinks have gone unharvested due to lack of worldwide markets. This new market opportunity is a big step toward regaining employment in Alaska's coastal communities, Sen. Cowdery said.

The market for fresh canned pink salmon has improved in Korea due, in part, to recent health scares related to farmed salmon, poultry and beef.

The guaranteed sale of Alaska pink salmon caps a multi-year negotiating process that included trips to Korea and inspection of Alaskan processing facilities. The negotiations have included the Governor's office, Sen. Tom Wagoner, United Fishermen of Alaska and others.

Alaska pink salmon will be marketed in Korea in a number of forms, from high-end canned salmon for gift packages to salmon patties for cafeteria meals.

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