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Two EXIM Products Expand Sales for a New Jersey Seafood Company

Exporter/Customer: 
Lund's Fisheries
Export Destinations: 
Worldwide
EXIM Bank Product: 
Working Capital Loan Guarantee and Export Credit Insurance

Lund's

Lund’s Fisheries, a family owned business since 1954, offers the highest quality land and sea frozen seafood from its locations in Oxnard, CA and Cape May, NJ. The company operates a fleet of company-owned fishing vessels and also relies on fishing vessels operated by independent contractors. As part of its on-going commitment to quality, Lund’s Fisheries invests in cutting edge technologies and adheres to the strictest Food and Drug Administration management systems for food handling and safety.

 

EXPORT CHALLENGE

Prior to 1976, countries outside of the U.S. were fishing in waters as close as 12 nautical miles from the U.S. coastline, and shipping their catches to their home countries. Heavy harvesting by foreign companies led to concern about overfishing and the long-term sustainability of ocean life in waters off the U.S. shoreline. In 1976, the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act) resulted in a sea change for U.S.-based fisheries. The act extended U.S. jurisdiction on waters to 200 nautical miles with the goal of “fostering long-term biological and economic sustainability of our nation's marine fisheries.” Key objectives were to: 1) prevent overfishing; 2) rebuild overfished stocks; 3) increase long-term economic and social benefits; and 4) ensure a safe and sustainable supply of seafood.

Once the Magnuson-Stevens act was passed, companies, including Lund’s Fisheries made substantial shore side investments to process, freeze and export fish landed by US fishermen. Lund’s Fisheries needed funds to grow its sales and also be protected against the risk of buyer nonpayment.

EXIM SOLUTION

Lund’s Fisheries worked closely with EXIM Bank to create an exporting strategy that supported the company’s growth initiatives. Central to this strategy were two EXIM Bank products:  export credit insurance and a working capital lender loan guarantee. The export credit insurance mitigated the risk of nonpayment by foreign buyers, enabling Lund’s Fisheries to expand with confidence into global markets. The EXIM working capital guarantee provided a lender line of credit that empowered Lund’s Fishers to produce more frozen seafood to meet the demand in international markets.

RESULTS

As a result of this collaborative relationship, Lund’s Fisheries has grown its sales, increased the number of U.S. based jobs, and built a globally recognized brand! EXIM supported $15.9 million of the company’s international sales during the 2015 to 2017 period.

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