WEBVTT - Can a Robot Kill Fish Humanely?

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<v Speaker 1>Pushkin. I'm Jacob Goldstein, and this is What's Your Problem?

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<v Speaker 1>My guest today is Saif Khawaja. He's the co-founder and

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<v Speaker 1>CEO of a company called Shinkai. Saif's problem is this.

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<v Speaker 1>Can we find a way for industrial fishermen to kill

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<v Speaker 1>fish and that is more humane than the way the

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<v Speaker 1>fish are currently killed, and is still economical, still works

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<v Speaker 1>in the market. Saif didn't start out as a fish guy.

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<v Speaker 1>He was a college student studying engineering, and he happened

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<v Speaker 1>to read an essay by the philosopher Peter Singer. The

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<v Speaker 1>essay is called If Fish Could Scream. And in the essay,

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<v Speaker 1>Singer argues that the way fish are typically killed now

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<v Speaker 1>is slow and cruel. In particular, it's common for fish

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<v Speaker 1>to be left to slowly suffocate after being pulled out

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<v Speaker 1>of the water. After Safe Red Singer's essay, he started

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<v Speaker 1>looking more deeply into the subject, and he found a

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<v Speaker 1>traditional technique used by Japanese fishermen that involves putting a

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<v Speaker 1>spike through the fish's brain to quickly kill the fish.

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<v Speaker 1>This is called ikejime, and many people believe that besides

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<v Speaker 1>killing the fish more quickly, this technique also makes the

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<v Speaker 1>fish meat last longer and taste better. Saif started his company, Shinkai,

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<v Speaker 1>to try and figure out how to turn Ikejime into

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<v Speaker 1>an industrial process, to use technology to build a machine

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<v Speaker 1>that can be used on fishing boats to kill fish

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<v Speaker 1>quickly rather than let them suffocate slowly. It's early still,

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<v Speaker 1>but the signs are promising. The company has built a

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<v Speaker 1>machine that's currently on roughly 20 fishing boats, and they're

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<v Speaker 1>on track to sell several million pounds of fish this

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<v Speaker 1>year to restaurants and grocery stores around the United States.

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<v Speaker 1>To start, I asked Saif about that essay, If Fish

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<v Speaker 1>Could Scream, that inspired him to start the company. What

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<v Speaker 1>was it like for you to read this essay? What

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<v Speaker 1>happened in your mind, in your heart, when you read

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<v Speaker 1>this essay?

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<v Speaker 2>Yeah, it's interesting. So to talk through my emotions a

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<v Speaker 2>little bit, I'll take you back to a story when

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<v Speaker 2>I was a young kid. And, you know, I didn't

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<v Speaker 2>grow up on a farm, but I had a lot

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<v Speaker 2>of family members that had farms, and grew up in

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<v Speaker 2>the Middle East, grew up Muslim. One time when I

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<v Speaker 2>was a child, I noticed two goats by the side

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<v Speaker 2>of our home and decided to become friends with them

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<v Speaker 2>because I love animals. And so for about a week,

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<v Speaker 2>I was feeding them lettuce and petting them, and I

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<v Speaker 2>gave them names. And then at the end of the week,

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<v Speaker 2>they were gone, and I was having lamb for dinner.

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<v Speaker 2>And I didn't really realize until I asked where the

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<v Speaker 2>lamb went, and, hey, here's a lamb or a goat. But,

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<v Speaker 2>you know, once I heard, I was crying and I

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<v Speaker 2>was sad and I felt bad. I built this emotional

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<v Speaker 2>relationship with the animals. So when I read that essay,

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<v Speaker 2>it kind of gave me some emotions like that where,

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<v Speaker 2>you know, I think I was jarred a little bit

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<v Speaker 2>by the, like, lack of empathy, the fact that I'd

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<v Speaker 2>created an emotional relationship with an animal that other people

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<v Speaker 2>didn't have that same emotional connection with.

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<v Speaker 1>That's how it is growing up, right? When you grow up, you...

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<v Speaker 1>When you're a little kid, you understand things like, oh,

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<v Speaker 1>I like that animal, and we just killed it. And

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<v Speaker 1>it probably didn't want to die. But then you're sort of,

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<v Speaker 1>you live in the world, and there's a set of

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<v Speaker 1>norms in the world, and you kind of take the

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<v Speaker 1>norms for the most part, right? And you, if everybody

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<v Speaker 1>around you eats meat, you probably eat meat and get

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<v Speaker 1>over the fact that you didn't want your friend the

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<v Speaker 1>goat to die. So you read this essay, and you

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<v Speaker 1>just start thinking about this issue of fish suffering, right?

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<v Speaker 1>It's not the killing. It's the fact that it's the

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<v Speaker 1>asphyxiation that is a slow, terrible process. And if we

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<v Speaker 1>could kill the fish without that, that would be better

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<v Speaker 1>for the fish, just at a minimum.

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<v Speaker 2>Well, the fish are going to be killed either way, right?

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<v Speaker 1>They're going to die, but we can agree that how

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<v Speaker 1>the animal dies matters, right? And so you're sort of

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<v Speaker 1>down this rabbit hole, and you find this, it's a

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<v Speaker 1>kind of manual, very artisanal, traditional Japanese method, right? This

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<v Speaker 1>is not what they're doing in industrial fisheries in Japan, right?

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<v Speaker 1>This is like a guy with a metal spike putting

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<v Speaker 1>it through one fish's head, correct?

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<v Speaker 2>Well, there are some examples of high-volume fisheries where they

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<v Speaker 2>will do this, but for farms. But for the most part, no.

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<v Speaker 2>I agree with you. I just want to be, for

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<v Speaker 2>the listeners out there, there are some counterexamples, but as

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<v Speaker 2>a whole, it's simpler.

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<v Speaker 1>So there are some people who have tried to automate

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<v Speaker 1>this before you.

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<v Speaker 2>People have tried since the 1970s. No one has done

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<v Speaker 2>it successfully, necessarily. But in the industrial cases, it's mostly,

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<v Speaker 2>there's like a team of six to eight people I

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<v Speaker 2>have an industrial fishery sitting there doing this by hand.

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<v Speaker 1>Okay. So where do you get the idea, I'm going

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<v Speaker 1>to build a machine to kill fish more humanely?

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<v Speaker 2>You know, for this part, I wish I had something

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<v Speaker 2>more romantic than thinking, why not solve the problem directly? Yeah. Again,

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<v Speaker 2>which is an engineering response and fix the root cause,

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<v Speaker 2>which is build something that can actually do that process.

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<v Speaker 1>Yeah. it is this interesting middle ground, right? Because one

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<v Speaker 1>response to reading that Peter Singer essay is to stop

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<v Speaker 1>eating fish, say, or to say, I'm going to try

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<v Speaker 1>and get other people to stop eating fish. But there's

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<v Speaker 1>a sort of narrow, a middle ground where you're landing,

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<v Speaker 1>which is, it's okay to kill fish to eat them,

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<v Speaker 1>but we shouldn't make them suffer gratuitously. Like, did you

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<v Speaker 1>immediately go to that middle ground?

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<v Speaker 2>I did. I do believe that some genetics are designed to,

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<v Speaker 2>they've co-evolved with eating meat.

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<v Speaker 1>So, okay. Now you're on the path of building the machine.

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<v Speaker 2>Yeah.

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<v Speaker 1>Tell me about the nail and the plastic fish. Yeah.

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<v Speaker 2>So, the idea was I should show conceptually the idea

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<v Speaker 2>that this could be automated in some form. And so,

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<v Speaker 2>Bought a plastic fish, had a 3D printer in my

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<v Speaker 2>dorm room, taped a nail to the end of it,

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<v Speaker 2>and using some open source computer vision tools, not, again,

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<v Speaker 2>super technical, but enough to be able to show it,

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<v Speaker 2>sent this video to Y Combinator of this plastic fish.

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<v Speaker 2>And then I sent a cold email to the general partner,

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<v Speaker 2>Jared Friedman, and interviewed and got in and took the

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<v Speaker 2>company full time in early 2022.

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<v Speaker 1>Got into Y Combinator.

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<v Speaker 2>Yeah, that was the impetus for halving the capital to

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<v Speaker 2>really take it full-time.

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<v Speaker 1>So tell me how it works. There's a boat right now.

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<v Speaker 1>There's boats out in the water doing this. Probably at

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<v Speaker 1>this minute, certainly today. Just tell me what are those boats.

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<v Speaker 1>Tell me what's happening. Like, wherever you want it to be,

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<v Speaker 1>whatever kind of fish. But give me something specific.

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<v Speaker 2>Yeah, let's throw out, like, our bread and butter is

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<v Speaker 2>a trap boat that's catching black cod. And so traps,

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<v Speaker 2>think of them as an analog to the lobster pots

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<v Speaker 2>where they're either long chain of nets or cages that

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<v Speaker 2>the fish will swim into. And then they'll pull them up,

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<v Speaker 2>you know, each net by net. And so the fish

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<v Speaker 2>are then brought onto the deck of the boat. There's

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<v Speaker 2>normally like a pool of water where they're sitting. And

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<v Speaker 2>then they are put into the machine today by hand,

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<v Speaker 2>one by one. And so each fish will go in. Okay.

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<v Speaker 2>We have a computer vision layer that, you know, from

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<v Speaker 2>a camera that's running constantly that will scan the fish. Okay.

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<v Speaker 2>figure out the species and then, okay, if it's this species,

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<v Speaker 2>then this is a cutting path for piercing the brain,

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<v Speaker 2>for cutting the gills. And then we have mechanical systems

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<v Speaker 2>that will do those while holding fish down in, you know,

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<v Speaker 2>our own method that we developed. The fish will come

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<v Speaker 2>straight out and they go out into a half ice,

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<v Speaker 2>half water slurry. And so the heart, which is still

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<v Speaker 2>active after brain death, will pump the blood out of

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<v Speaker 2>the meat. And then the fish are then moved into

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<v Speaker 2>the hold once the bleeding process is complete.

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<v Speaker 1>What's the machine look like?

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<v Speaker 2>So we say it's like a refrigerator. In practical reality,

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<v Speaker 2>it's basically this metal box, about two and a half

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<v Speaker 2>by three feet for the bigger one, and then about 60%

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<v Speaker 2>smaller for the ones that are going in salmon boats. Okay.

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<v Speaker 2>And it is, for all intents and purposes, a black box.

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<v Speaker 2>We put fish in, flop it around, it comes out limp.

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<v Speaker 2>The doors are on because we need the computer vision

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<v Speaker 2>to be consistent, and so we have an internal lighting system,

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<v Speaker 2>and so that blocks out the sun.

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<v Speaker 1>Okay.

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<v Speaker 2>Because if you have different lighting systems, it makes the

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<v Speaker 2>AI less reliable.

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<v Speaker 1>Makes sense. Makes sense.

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<v Speaker 2>And then, yeah, the fish comes straight out. So you

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<v Speaker 2>can hear the process happening, of course. But outside that,

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<v Speaker 2>the producers and the harvesters don't see what's happening.

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<v Speaker 1>Does this system change the number of fish that a

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<v Speaker 1>boat can catch and kill in a day?

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<v Speaker 2>So the way that fishing is regulated is through a

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<v Speaker 2>quota system for the most part. And so fishermen have

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<v Speaker 2>a fixed amount of fish that can come out of

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<v Speaker 2>the water. And the idea here for the reason we

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<v Speaker 2>do this model is that the fishermen get paid a

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<v Speaker 2>little bit more, and so they can draw more value

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<v Speaker 2>from the quota that they're allocated. So the amount of

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<v Speaker 2>fish that they fish does not change. That is also

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<v Speaker 2>why we do not work with every single vessel, because

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<v Speaker 2>there are some vessels, like these massive commodity boats, that

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<v Speaker 2>in theory, if we were to work with them, they'd

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<v Speaker 2>have to slow down operations, and we haven't built systems

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<v Speaker 2>to account for the massive volume.

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<v Speaker 1>So I want to talk about a little bit about

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<v Speaker 1>the sort of development. And in particular, there's this paper

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<v Speaker 1>that was published earlier this year. One of your engineers,

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<v Speaker 1>I guess, was a co-author, right, of studying this device

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<v Speaker 1>you built to automate killing fish in this more human

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<v Speaker 1>way and comparing it to the sort of manual Ikejime and, like, asphyxiation,

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<v Speaker 1>the tradition.

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<v Speaker 2>Right?

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<v Speaker 1>And let me say thank you for doing that paper. Like,

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<v Speaker 1>it's helpful. You know, people make all these claims, and

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<v Speaker 1>then when there's, like, a paper, it's like, oh, great.

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<v Speaker 1>It's like we can really talk about, at least at

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<v Speaker 1>the time you were doing this research, what worked and

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<v Speaker 1>what didn't. And, I mean, one of the clear things

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<v Speaker 1>that they said in the paper was that I'll just

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<v Speaker 1>read it. Ikejime had said, should be preceded by a

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<v Speaker 1>stunning step ensuring immediate loss of sensibility. Because the fish

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<v Speaker 1>didn't always just die as fast as you wanted them to, essentially. Like,

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<v Speaker 1>do you do that now? Did you add the stunning step?

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<v Speaker 2>So, we did not. And this was a point of

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<v Speaker 2>disagreement that we had with some of the philosophies around

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<v Speaker 2>how the research came out versus that. First of all,

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<v Speaker 2>that paper was from early 2023 and from the studies

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<v Speaker 2>that just didn't get published till later. And we've made

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<v Speaker 2>a lot of improvements into the machine and process and

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<v Speaker 2>particularly the speed, right? That's the most important part. And

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<v Speaker 2>so back then, you know, we were doing a fish like,

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<v Speaker 2>I don't know, once every, don't quote me, hard quote

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<v Speaker 2>me on this, but I'd say it's like around once

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<v Speaker 2>every 20 to 30, maybe even 40 seconds per fish.

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<v Speaker 2>That's too long, right? Yeah.

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<v Speaker 1>Because most of you haul up a bunch of fish

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<v Speaker 1>and they're all just sitting there waiting to get killed

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<v Speaker 1>in the machine. So they're essentially asphyxiating in the traditional way.

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<v Speaker 2>Exactly. And so I think what was clear is that

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<v Speaker 2>there was a potential for the process, but the speed

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<v Speaker 2>needed to be improved for it to really be an

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<v Speaker 2>industrial process that was like humane driven, right? Yeah. And

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<v Speaker 2>the other part to it is sometimes stunning can actually

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<v Speaker 2>be less humane for them because you have to dial

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<v Speaker 2>in a specific voltage for the fish. And for wild fish,

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<v Speaker 2>it's basically impossible to do that because you're catching fish that,

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<v Speaker 2>you know, say a black cod, the smallest you're getting

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<v Speaker 2>is like two pounds that you can pull out the water,

0:11:56.056 --> 0:11:58.356
<v Speaker 2>and the largest is like 15, right? And so that

0:11:58.376 --> 0:12:02.476
<v Speaker 2>breadth means a very broad voltage range that you need

0:12:03.436 --> 0:12:07.126
<v Speaker 2>to be flopping between for the stunner. And so that

0:12:07.146 --> 0:12:09.166
<v Speaker 2>alone means that, you know, if you go too high,

0:12:09.206 --> 0:12:10.886
<v Speaker 2>you're going to damage the meat in a way that

0:12:10.906 --> 0:12:13.086
<v Speaker 2>makes this process kind of redundant. If you go too low,

0:12:13.126 --> 0:12:16.106
<v Speaker 2>you're basically tasing the fish, but it's still conscious and

0:12:16.126 --> 0:12:18.866
<v Speaker 2>going to continue to flop around. And so what we'd

0:12:18.886 --> 0:12:21.076
<v Speaker 2>rather do is just not add an extra part of

0:12:21.096 --> 0:12:23.976
<v Speaker 2>the process, but improve the speed for the fish and

0:12:24.016 --> 0:12:26.296
<v Speaker 2>how fast we can do it. And so now it's

0:12:26.316 --> 0:12:28.036
<v Speaker 2>a couple of seconds to be able to process each

0:12:28.056 --> 0:12:31.796
<v Speaker 2>individual one. So again, this is just our perspective and

0:12:32.076 --> 0:12:34.576
<v Speaker 2>our view on what the best way is to handle

0:12:34.596 --> 0:12:39.136
<v Speaker 2>the fish. And so the data isn't necessarily reflective of

0:12:39.556 --> 0:12:41.076
<v Speaker 2>all the conversations that were happening in the background.

0:12:42.096 --> 0:12:44.296
<v Speaker 1>Sure. No, I mean, like I said, I think it's

0:12:44.336 --> 0:12:46.596
<v Speaker 1>great that you published this paper or that this paper

0:12:46.636 --> 0:12:52.896
<v Speaker 1>was published. I mean, the findings weren't that compelling, right? Like,

0:12:53.086 --> 0:12:55.666
<v Speaker 1>it seemed like for the larger fish, it didn't work

0:12:56.666 --> 0:12:59.846
<v Speaker 1>particularly reliably. And I know it was a prototype. I'm

0:12:59.886 --> 0:13:02.206
<v Speaker 1>just trying to figure out what to make of it, right? Like,

0:13:03.346 --> 0:13:05.546
<v Speaker 1>are you going to do another study? Like, how do

0:13:05.586 --> 0:13:06.996
<v Speaker 1>I know that it works better now?

0:13:08.236 --> 0:13:10.716
<v Speaker 2>So we've done internal studies and external studies now. We

0:13:10.736 --> 0:13:13.426
<v Speaker 2>just haven't published them yet because the publishing cycle takes

0:13:13.446 --> 0:13:15.346
<v Speaker 2>a very long time. So I'm happy to send you

0:13:15.366 --> 0:13:18.566
<v Speaker 2>data on the latest on what it compares to versus

0:13:18.606 --> 0:13:19.346
<v Speaker 2>handy Kijime.

0:13:19.746 --> 0:13:21.706
<v Speaker 1>So let me ask, how well does it work now?

0:13:22.286 --> 0:13:25.016
<v Speaker 2>So it depends on the criteria of what you're looking at.

0:13:25.356 --> 0:13:27.836
<v Speaker 2>And so we don't have the capacity to look at

0:13:27.896 --> 0:13:31.776
<v Speaker 2>every single fish and put a little EEG thing on

0:13:31.796 --> 0:13:35.766
<v Speaker 2>their brain. But in terms of being able to get

0:13:36.496 --> 0:13:38.596
<v Speaker 2>implied loss of consciousness, which is the fish going limp,

0:13:39.036 --> 0:13:41.976
<v Speaker 2>which is destroying the brain or things like that. You know,

0:13:41.996 --> 0:13:45.616
<v Speaker 2>we're hitting, again, not having the most, you know, like

0:13:45.696 --> 0:13:48.256
<v Speaker 2>up-to-date information with the team from today, but I'd say

0:13:48.296 --> 0:13:51.776
<v Speaker 2>about 90% is like the number that we're hitting. And

0:13:51.856 --> 0:13:53.916
<v Speaker 2>that's with a, you know, five to six second cycle

0:13:53.956 --> 0:13:54.696
<v Speaker 2>time for each machine.

0:13:55.556 --> 0:13:58.196
<v Speaker 1>And that happens like in the ocean, in the real world?

0:13:58.576 --> 0:14:01.156
<v Speaker 2>Yeah, that's in, you know, all the machines are deployed

0:14:01.276 --> 0:14:02.996
<v Speaker 2>on vessels out in the ocean.

0:14:03.276 --> 0:14:03.456
<v Speaker 1>Yeah.

0:14:05.496 --> 0:14:05.576
<v Speaker 2>Um.

0:14:06.736 --> 0:14:10.736
<v Speaker 1>So we've been talking about the, let's call it the

0:14:10.776 --> 0:14:12.876
<v Speaker 1>ethical side or the suffering of the fish. That is

0:14:12.896 --> 0:14:16.176
<v Speaker 1>what we have been talking about. I know you talk

0:14:16.196 --> 0:14:19.426
<v Speaker 1>a lot about the quality of the fish, you know,

0:14:19.466 --> 0:14:23.366
<v Speaker 1>setting aside, do the fish suffer less? Is the fish better?

0:14:23.506 --> 0:14:25.026
<v Speaker 1>I know you make the case that the fish is

0:14:25.066 --> 0:14:27.186
<v Speaker 1>better and there are fancy chefs who agree with you.

0:14:28.366 --> 0:14:29.666
<v Speaker 1>Tell me about that side.

0:14:29.686 --> 0:14:32.256
<v Speaker 2>Yeah, there are a couple of things we can open

0:14:32.296 --> 0:14:35.886
<v Speaker 2>up into here. Quality by itself doesn't mean anything. Much, right?

0:14:36.106 --> 0:14:38.166
<v Speaker 2>Is it quality in terms of shelf life? Is it

0:14:38.186 --> 0:14:41.786
<v Speaker 2>about texture? Is it about flavor? Is it about nutrient density? Right?

0:14:41.846 --> 0:14:42.986
<v Speaker 2>It's a very abstract term.

0:14:43.586 --> 0:14:48.046
<v Speaker 1>I mean, I've seen you mention shelf life before. That's

0:14:48.116 --> 0:14:51.316
<v Speaker 1>another one where, like, has anyone studied that? I looked

0:14:51.356 --> 0:14:54.256
<v Speaker 1>for evidence about shelf life. Is that out there and

0:14:54.276 --> 0:14:55.636
<v Speaker 1>I just didn't see it? I didn't see it.

0:14:56.016 --> 0:15:00.316
<v Speaker 2>Yeah. We do internal rigor mortis studies that we share

0:15:00.576 --> 0:15:03.426
<v Speaker 2>with customers. We haven't released it yet, but that's part

0:15:03.446 --> 0:15:05.366
<v Speaker 2>of the reason we've been able to get Many large

0:15:05.386 --> 0:15:06.906
<v Speaker 2>retailers as they believe the data.

0:15:08.546 --> 0:15:12.246
<v Speaker 1>But when you say rigor mortis, like that's time to

0:15:12.306 --> 0:15:13.266
<v Speaker 1>rigor mortis from death?

0:15:13.866 --> 0:15:16.116
<v Speaker 2>Yes. And that's very well understood to be a proxy

0:15:16.146 --> 0:15:18.816
<v Speaker 2>for the stress that the animal goes through before it

0:15:18.976 --> 0:15:22.276
<v Speaker 2>passes away, as well as in turn a proxy for

0:15:22.296 --> 0:15:28.276
<v Speaker 2>the shelf life and the texture after the rigor mortis

0:15:28.466 --> 0:15:29.226
<v Speaker 2>peak has been reached.

0:15:30.646 --> 0:15:33.526
<v Speaker 1>I'm actually more interested in the sort of outcome measures

0:15:33.606 --> 0:15:36.716
<v Speaker 1>that a chef or a person cooking fish at home

0:15:36.736 --> 0:15:37.296
<v Speaker 1>would care about?

0:15:37.336 --> 0:15:39.316
<v Speaker 2>Well, so chefs are going to be looking at rigor mortis.

0:15:39.486 --> 0:15:41.526
<v Speaker 2>They just don't call it that. Animals, you know, and

0:15:41.546 --> 0:15:44.006
<v Speaker 2>actually meat in general, goes through something that I like

0:15:44.026 --> 0:15:47.506
<v Speaker 2>to draw akin to ripening, in that basically, you know,

0:15:47.526 --> 0:15:50.746
<v Speaker 2>people will hold fish up, and when it has entered rigor,

0:15:50.846 --> 0:15:52.606
<v Speaker 2>it's going to stay basically very limp. And so if

0:15:52.626 --> 0:15:54.616
<v Speaker 2>you hold it in the middle of your palm, it's

0:15:54.626 --> 0:15:57.796
<v Speaker 2>going to be bending on both sides. Chefs and, you know,

0:15:57.856 --> 0:16:00.816
<v Speaker 2>buyers and retail will associate that with freshness. And so

0:16:01.156 --> 0:16:03.276
<v Speaker 2>then when the fish goes into rigor... Even though it's

0:16:03.296 --> 0:16:04.876
<v Speaker 2>sitting in your palm, it should be limp over. It's

0:16:04.996 --> 0:16:09.606
<v Speaker 2>actually completely parallel to the ground. And so it's very rigid. Basically,

0:16:09.786 --> 0:16:12.606
<v Speaker 2>once that starts, when that process happens, the body has

0:16:12.666 --> 0:16:15.386
<v Speaker 2>realized that the animal has passed away. And so after that,

0:16:15.406 --> 0:16:18.066
<v Speaker 2>the deterioration, the kind of enzyme breakdown of the animal,

0:16:18.086 --> 0:16:21.096
<v Speaker 2>the biological breakdown of the animal begins. So it's not

0:16:21.146 --> 0:16:22.976
<v Speaker 2>really a proxy for whether the fish is bad or not.

0:16:23.016 --> 0:16:24.976
<v Speaker 2>It's kind of like the start of the time. And

0:16:25.016 --> 0:16:27.076
<v Speaker 2>so we both delay that time as well as delay,

0:16:27.576 --> 0:16:31.246
<v Speaker 2>in turn, the biological breakdown time. So a suffocated fish

0:16:31.546 --> 0:16:33.986
<v Speaker 2>will go into peak rigor a couple of hours after

0:16:34.006 --> 0:16:37.446
<v Speaker 2>passing away, called two to four hours. Hour process is

0:16:37.486 --> 0:16:40.066
<v Speaker 2>like a 35 to 38 hour time to rigor.

0:16:40.486 --> 0:16:43.386
<v Speaker 1>Compared to two to four for a standard commercial fishery.

0:16:43.546 --> 0:16:43.886
<v Speaker 2>Exactly.

0:16:44.366 --> 0:16:46.596
<v Speaker 1>So that's a big difference. The difference between four hours

0:16:46.646 --> 0:16:47.996
<v Speaker 1>and 35 hours is quite large.

0:16:48.126 --> 0:16:48.456
<v Speaker 2>Exactly.

0:16:49.266 --> 0:16:52.116
<v Speaker 1>What does that mean for people eating that fish?

0:16:53.076 --> 0:16:59.376
<v Speaker 2>So we suggest to retailers that they get anywhere from

0:16:59.436 --> 0:17:01.956
<v Speaker 2>twice to thrice the use of shelf lives. How much

0:17:01.976 --> 0:17:04.196
<v Speaker 2>they pass on to the consumer is not necessarily under

0:17:04.236 --> 0:17:06.156
<v Speaker 2>control and how much we know about, but we know

0:17:06.176 --> 0:17:08.696
<v Speaker 2>that that possibility is there for the consumers to have

0:17:09.236 --> 0:17:12.056
<v Speaker 2>better shelf life. It is also a proxy for texture.

0:17:12.216 --> 0:17:14.436
<v Speaker 2>And so generally, if you're buying a fish that's processed

0:17:14.456 --> 0:17:17.556
<v Speaker 2>this way and it's given to you early enough, you

0:17:17.886 --> 0:17:22.966
<v Speaker 2>will have better texture that's more rigid. There's some, obviously

0:17:22.986 --> 0:17:25.606
<v Speaker 2>this is subjective, but there's some improvement in flavor as well.

0:17:26.066 --> 0:17:27.346
<v Speaker 2>And so these are some of the things that when

0:17:27.366 --> 0:17:30.096
<v Speaker 2>you think about a fish that's been processed in our

0:17:30.116 --> 0:17:32.536
<v Speaker 2>method that you can look for benefits.

0:17:35.926 --> 0:17:51.176
<v Speaker 1>We'll be back in just a minute. Let's talk about

0:17:51.216 --> 0:17:57.496
<v Speaker 1>where you are now. Um, How many of your machines

0:17:57.996 --> 0:18:02.986
<v Speaker 1>are out in boats today or this week or this month?

0:18:03.996 --> 0:18:07.266
<v Speaker 2>Yeah, I'd probably say about 20 vessels, you know, with

0:18:07.286 --> 0:18:11.546
<v Speaker 2>a couple of them having two. And then we're expecting

0:18:11.566 --> 0:18:15.576
<v Speaker 2>to get to 25 peak this year with other robots

0:18:15.596 --> 0:18:18.756
<v Speaker 2>being built because we need spares and test units and so.

0:18:18.516 --> 0:18:21.616
<v Speaker 1>On and so on. And where are they and what

0:18:21.656 --> 0:18:26.176
<v Speaker 1>kind of fish are they? Humanely killed, hopefully humanely killed.

0:18:26.456 --> 0:18:30.536
<v Speaker 2>So they're deployed across the country from Alaska down to California.

0:18:31.036 --> 0:18:34.876
<v Speaker 2>Most of them being the Pacific Northwest or Alaska. And then, um,

0:18:35.636 --> 0:18:37.516
<v Speaker 2>Texas up to Boston, but mostly in the Gulf.

0:18:37.696 --> 0:18:38.476
<v Speaker 1>And what kind of fish?

0:18:39.216 --> 0:18:41.236
<v Speaker 2>Black cod is our bread and butter. Um, we do

0:18:41.276 --> 0:18:42.936
<v Speaker 2>mostly black cod. We're going to do, you know, a

0:18:43.736 --> 0:18:45.656
<v Speaker 2>couple of million pounds of fish total this year. Most

0:18:45.696 --> 0:18:48.616
<v Speaker 2>of that will be black cod. We also do harvest

0:18:48.836 --> 0:18:52.336
<v Speaker 2>some sockeye salmon. We just announced that recently. We have

0:18:52.996 --> 0:18:58.396
<v Speaker 2>Pacific cod, rockfish, vermilion rockfish, red snapper, a couple other

0:18:58.436 --> 0:19:01.036
<v Speaker 2>bycatch species in the Gulf, and black sea bass in

0:19:01.056 --> 0:19:01.476
<v Speaker 2>the Northeast.

0:19:02.416 --> 0:19:03.966
<v Speaker 1>And what's the business model?

0:19:05.096 --> 0:19:08.506
<v Speaker 2>So we give the machines to fishermen for free. It's

0:19:08.526 --> 0:19:11.826
<v Speaker 2>structured as a lease, but they pay $ 0 per the payments.

0:19:12.586 --> 0:19:14.466
<v Speaker 2>And then we buy the fish. We have right of

0:19:14.486 --> 0:19:17.756
<v Speaker 2>first refusal on all the fish that they process with it.

0:19:18.306 --> 0:19:21.386
<v Speaker 2>And then we sell that fish under our brand. you know,

0:19:21.406 --> 0:19:23.806
<v Speaker 2>the parent company being Shinkie, the technology company that develops

0:19:23.826 --> 0:19:27.506
<v Speaker 2>all the IP, that all employees are underneath. We have

0:19:27.546 --> 0:19:29.766
<v Speaker 2>a subsidiary called the Ceremony Fish, and we call the

0:19:29.806 --> 0:19:33.206
<v Speaker 2>fish Ceremony Grade, as a nod to, like, Ceremony Grade Matcha.

0:19:33.906 --> 0:19:35.486
<v Speaker 2>And the kind of idea there is... I.

0:19:37.106 --> 0:19:39.546
<v Speaker 1>Should say Ceremony has an S at the beginning and

0:19:39.586 --> 0:19:40.216
<v Speaker 1>an I at the end.

0:19:40.306 --> 0:19:40.946
<v Speaker 2>Yes, exactly.

0:19:40.966 --> 0:19:43.846
<v Speaker 1>Yes, yes, yes. Kind of vaguely Japanese, yeah.

0:19:44.006 --> 0:19:46.416
<v Speaker 2>I think that's the way that you anglicize how the

0:19:46.456 --> 0:19:49.496
<v Speaker 2>Japanese say Ceremony in Japanese, but so that's kind of

0:19:49.516 --> 0:19:52.456
<v Speaker 2>the way we chose to spell that way. And we

0:19:52.536 --> 0:19:56.706
<v Speaker 2>came up with ceremony grade as this kind of marker

0:19:56.726 --> 0:19:59.196
<v Speaker 2>for quality and, you know, something that we believe we

0:19:59.236 --> 0:20:01.876
<v Speaker 2>can stand for because, you know, when you go and

0:20:01.896 --> 0:20:05.276
<v Speaker 2>buy fish at the grocery store, you know, for the

0:20:05.316 --> 0:20:07.756
<v Speaker 2>most part, you'll be told it's for that species, it's

0:20:08.056 --> 0:20:12.666
<v Speaker 2>wild or it's farmed, never necessarily that the exact geography

0:20:12.706 --> 0:20:14.746
<v Speaker 2>that has been caught in or the type of gear

0:20:14.966 --> 0:20:18.066
<v Speaker 2>or so on. And, When you look at cattle or poultry,

0:20:18.186 --> 0:20:22.466
<v Speaker 2>like in beef, you have grass-fed, USD choice, USD prime.

0:20:22.626 --> 0:20:27.206
<v Speaker 2>For chicken, you have pasture-raised or similar, right? And there's

0:20:27.246 --> 0:20:30.656
<v Speaker 2>not really an analog to process for fish, only for genetics.

0:20:30.876 --> 0:20:34.836
<v Speaker 2>And so that was where we saw that there was

0:20:34.856 --> 0:20:39.996
<v Speaker 2>an opportunity. That's alternative from the sustainability certification that exists, ASC, MSC,

0:20:40.016 --> 0:20:41.756
<v Speaker 2>which all do a great job but are really focused

0:20:41.816 --> 0:20:42.536
<v Speaker 2>on sustainability.

0:20:43.916 --> 0:20:48.426
<v Speaker 1>So... I am your customer, I think, depending on how

0:20:48.466 --> 0:20:50.956
<v Speaker 1>much more it costs than regular fish. Like, I buy

0:20:51.256 --> 0:20:56.156
<v Speaker 1>pasture-raised chicken. Great. And I don't even know if it

0:20:56.176 --> 0:20:59.856
<v Speaker 1>tastes better. It doesn't taste different to me. But I land,

0:20:59.876 --> 0:21:01.816
<v Speaker 1>I think, more or less where you land on the

0:21:02.016 --> 0:21:05.986
<v Speaker 1>moral question of, like, the killing is not the fundamental

0:21:06.006 --> 0:21:10.006
<v Speaker 1>problem to me. It's the, like, raising the animals in hell, essentially.

0:21:10.046 --> 0:21:10.226
<v Speaker 2>Right.

0:21:10.346 --> 0:21:11.286
<v Speaker 1>It seems quite bad.

0:21:11.306 --> 0:21:11.446
<v Speaker 2>So....

0:21:15.266 --> 0:21:18.806
<v Speaker 1>I mean, as a potential customer, like the obvious questions

0:21:18.826 --> 0:21:20.796
<v Speaker 1>to me are, one, how much more expensive is it?

0:21:22.456 --> 0:21:24.876
<v Speaker 2>So I don't want to deflect the question, but it's

0:21:24.976 --> 0:21:27.466
<v Speaker 2>very dependent on SKU. I'll give you some numbers as

0:21:27.486 --> 0:21:27.986
<v Speaker 2>an example.

0:21:28.606 --> 0:21:29.006
<v Speaker 1>Salmon.

0:21:29.186 --> 0:21:32.786
<v Speaker 2>So our salmon is probably 15% more than commodity.

0:21:33.406 --> 0:21:36.356
<v Speaker 1>Oh. That's not so much more. I feel like pasteurized chicken,

0:21:36.376 --> 0:21:39.516
<v Speaker 1>the gap is bigger than that. Of course, the absolute

0:21:39.596 --> 0:21:42.966
<v Speaker 1>numbers are higher for the fish, so 15%. But 15%

0:21:42.966 --> 0:21:45.906
<v Speaker 1>more is not that much more. Do you make money

0:21:46.426 --> 0:21:48.986
<v Speaker 1>at that level? Did the unit economics work.

0:21:48.846 --> 0:21:52.066
<v Speaker 2>For you there? Yeah. So we've gone from economy to scale.

0:21:52.176 --> 0:21:54.696
<v Speaker 2>We have our own infrastructure. We vertically integrated more. We

0:21:54.716 --> 0:21:57.116
<v Speaker 2>can actually offer a price that is not quite at

0:21:57.156 --> 0:22:00.956
<v Speaker 2>par with commodity, but for the process and rolling into it,

0:22:01.256 --> 0:22:03.656
<v Speaker 2>and the brand and the quality that we stand for

0:22:03.676 --> 0:22:05.996
<v Speaker 2>in handling. All those things do need a little bit

0:22:06.036 --> 0:22:09.416
<v Speaker 2>more of a premium to cover. But is that a

0:22:09.416 --> 0:22:11.076
<v Speaker 2>scale where we can do millions of pounds and still

0:22:11.116 --> 0:22:12.056
<v Speaker 2>find homes for the fish?

0:22:12.706 --> 0:22:17.706
<v Speaker 1>Honestly, that's a lower premium than I expected. Do you

0:22:17.746 --> 0:22:19.006
<v Speaker 1>find people are willing to pay it?

0:22:20.546 --> 0:22:22.026
<v Speaker 2>I do find that people want to pay it. I

0:22:22.046 --> 0:22:26.866
<v Speaker 2>think retailers need a lot of evidence before they expand programs.

0:22:27.006 --> 0:22:28.566
<v Speaker 2>So we start at a small scale. Most of our

0:22:28.586 --> 0:22:32.136
<v Speaker 2>revenue today is probably 85 to 95%, depending on the week,

0:22:32.736 --> 0:22:36.656
<v Speaker 2>is food service. So we wholesale to distributors who will

0:22:36.676 --> 0:22:37.706
<v Speaker 2>then sell to local restaurants.

0:22:38.236 --> 0:22:40.106
<v Speaker 1>Is it like fancy restaurants?

0:22:41.126 --> 0:22:43.566
<v Speaker 2>Initially, yes. Although now, you know, it's kind of like

0:22:44.066 --> 0:22:47.146
<v Speaker 2>white tablecloth, but not super expensive, you know? So we're

0:22:47.186 --> 0:22:50.286
<v Speaker 2>not focused on the Michelin three star, you know, that

0:22:50.306 --> 0:22:53.156
<v Speaker 2>was very much at a time, you know, 2024, 2025,

0:22:53.156 --> 0:22:56.456
<v Speaker 2>where we were focused. But today, you know, we're hoping

0:22:56.496 --> 0:22:58.846
<v Speaker 2>for the kind of You know, there's this difference I

0:22:59.326 --> 0:23:02.536
<v Speaker 2>call for between premium and luxury, where luxury you're paying

0:23:02.596 --> 0:23:05.976
<v Speaker 2>for more of an experience and an emotion than necessarily

0:23:05.996 --> 0:23:09.296
<v Speaker 2>for utility, versus premium you pay more, but you get

0:23:09.336 --> 0:23:12.636
<v Speaker 2>more utility per dollar. And so we were a luxury product,

0:23:12.736 --> 0:23:15.686
<v Speaker 2>whether you're selling, you know, fish quadruple the price of

0:23:15.706 --> 0:23:18.206
<v Speaker 2>the commodity. But today with a small markup, you get

0:23:18.266 --> 0:23:20.386
<v Speaker 2>more utility per dollar because you're more likely to use

0:23:20.426 --> 0:23:22.606
<v Speaker 2>your fish because of the shelf life or the quality

0:23:22.646 --> 0:23:25.186
<v Speaker 2>or so on. And so in that way, you know, we...

0:23:26.636 --> 0:23:29.216
<v Speaker 2>do charge a premium, but again, the utility is better.

0:23:31.086 --> 0:23:35.286
<v Speaker 1>So the one other thing that I feel like would

0:23:35.326 --> 0:23:40.266
<v Speaker 1>be useful for me is some kind of third-party certification. Like,

0:23:41.246 --> 0:23:44.296
<v Speaker 1>I more or less believe you, but like, you know,

0:23:44.316 --> 0:23:48.256
<v Speaker 1>when I buy whatever, vitamins, like I always buy the

0:23:48.336 --> 0:23:53.276
<v Speaker 1>ones where there's third-party certification because like, Well, a lot

0:23:53.316 --> 0:23:55.076
<v Speaker 1>of times the vitamins aren't what they say they are,

0:23:55.296 --> 0:23:57.526
<v Speaker 1>you know, and the same exists for.

0:23:59.006 --> 0:23:59.286
<v Speaker 2>Meat.

0:23:59.926 --> 0:24:02.506
<v Speaker 1>Is that a possibility for your fish?

0:24:04.866 --> 0:24:07.316
<v Speaker 2>The question I'd ask is who's a third party? And

0:24:07.336 --> 0:24:09.676
<v Speaker 2>so that's part of why we have to design our

0:24:09.716 --> 0:24:10.156
<v Speaker 2>own standard.

0:24:10.256 --> 0:24:13.816
<v Speaker 1>Well, sure. But right now there is no third party, right?

0:24:13.896 --> 0:24:19.956
<v Speaker 1>Like it's... your incentives are not aligned economically. They're just not.

0:24:20.156 --> 0:24:22.496
<v Speaker 1>You know what I mean? Like a third party is

0:24:22.676 --> 0:24:24.816
<v Speaker 1>economically a nice structure. And I know there are problems

0:24:24.856 --> 0:24:28.276
<v Speaker 1>who's paying them and there are always problems. But it

0:24:28.336 --> 0:24:31.496
<v Speaker 1>does seem useful. There's a reason we have them in

0:24:31.576 --> 0:24:33.426
<v Speaker 1>many domains like yours.

0:24:35.446 --> 0:24:38.726
<v Speaker 2>You know, we've definitely explored alternative business models for the

0:24:38.786 --> 0:24:40.966
<v Speaker 2>company where like longer term, there might be an opportunity

0:24:40.986 --> 0:24:44.316
<v Speaker 2>for us to, you know, rent the machines, robotics as

0:24:44.336 --> 0:24:46.276
<v Speaker 2>a service, as many people do, and then we become

0:24:46.296 --> 0:24:49.706
<v Speaker 2>that third party. But, you know, and each individual retailer

0:24:49.746 --> 0:24:52.586
<v Speaker 2>does have their own audits where any clients that we make,

0:24:52.646 --> 0:24:54.866
<v Speaker 2>they have to back up. So, you know, for a

0:24:54.886 --> 0:24:58.606
<v Speaker 2>major nationwide retailer, you know, we would be submitting lots

0:24:58.626 --> 0:25:01.166
<v Speaker 2>of paperwork across where the fish is coming from, what

0:25:01.326 --> 0:25:03.756
<v Speaker 2>traceability data do we have, what's the shelf life, we'll

0:25:03.776 --> 0:25:06.076
<v Speaker 2>give them samples, I'll do the studies, I'll back up

0:25:06.116 --> 0:25:08.876
<v Speaker 2>the claims. And only after all jumping through all those hoops,

0:25:09.436 --> 0:25:11.376
<v Speaker 2>then we get approved to be a vendor and so on.

0:25:12.266 --> 0:25:15.246
<v Speaker 1>Yeah, so in that universe, the retailer is the third party.

0:25:15.446 --> 0:25:18.346
<v Speaker 2>Exactly. But if chefs don't like the fish, they wouldn't

0:25:18.366 --> 0:25:19.636
<v Speaker 2>buy it. That's the other part to it.

0:25:20.436 --> 0:25:23.716
<v Speaker 1>Well, so, I mean, that's separating the, like, how does

0:25:23.736 --> 0:25:26.616
<v Speaker 1>the fish taste versus how much did the fish suffer, right?

0:25:26.736 --> 0:25:28.676
<v Speaker 1>And the thing I'm thinking about is how much did

0:25:28.696 --> 0:25:32.656
<v Speaker 1>the fish suffer? And I understand your claim that those

0:25:32.716 --> 0:25:35.616
<v Speaker 1>two are related, but, like, they could be weakly related, right?

0:25:37.876 --> 0:25:41.446
<v Speaker 1>Are other people doing anything like what you're doing? Is

0:25:41.466 --> 0:25:44.606
<v Speaker 1>there an industry of sort of humanely killed fish?

0:25:45.806 --> 0:25:49.146
<v Speaker 2>There are mechanical companies that focus on industrial automation, but

0:25:49.186 --> 0:25:52.766
<v Speaker 2>it's mostly for factory farming, right? In the context there,

0:25:52.786 --> 0:25:57.986
<v Speaker 2>the fish are like 18, 20 generations of the same genetics.

0:25:58.126 --> 0:26:01.126
<v Speaker 2>And because of that, they're very much bred to size

0:26:01.186 --> 0:26:03.506
<v Speaker 2>and bred to morphology, which means that that geometry you

0:26:03.566 --> 0:26:06.376
<v Speaker 2>can use a mechanical machine to process. But in the

0:26:06.396 --> 0:26:08.876
<v Speaker 2>wild environment, different diets, the same fish can be the

0:26:09.156 --> 0:26:12.346
<v Speaker 2>same weight, but have different shapes and sizes. And so

0:26:12.366 --> 0:26:14.366
<v Speaker 2>because of that, you do need something that can handle

0:26:14.386 --> 0:26:16.926
<v Speaker 2>that variation. And that's why we have a computer vision

0:26:16.946 --> 0:26:19.546
<v Speaker 2>layer that will scan each fish and pick out where

0:26:19.586 --> 0:26:21.226
<v Speaker 2>is the brain, where is the gills and so on.

0:26:22.266 --> 0:26:24.886
<v Speaker 2>There are alternative methods as well, rather than actually like

0:26:25.446 --> 0:26:29.436
<v Speaker 2>euthanizing or exsanguinating the animal. Instead, you can, like we

0:26:29.476 --> 0:26:32.336
<v Speaker 2>mentioned earlier, stun it with electricity. We just found that,

0:26:32.836 --> 0:26:36.126
<v Speaker 2>you know, It doesn't necessarily match the industrial throughput that

0:26:36.146 --> 0:26:36.466
<v Speaker 2>you need.

0:26:37.086 --> 0:26:39.006
<v Speaker 1>So you're saying nobody else is doing it for wild

0:26:39.046 --> 0:26:40.906
<v Speaker 1>fish because it's hard and you figured it out and

0:26:40.946 --> 0:26:41.506
<v Speaker 1>nobody else has.

0:26:41.526 --> 0:26:43.976
<v Speaker 2>I wouldn't say we've a hundred percent figured out. Like

0:26:44.016 --> 0:26:50.076
<v Speaker 2>we can't do like massive commodity boats just yet. Right.

0:26:50.116 --> 0:26:51.476
<v Speaker 2>Because even that volume is really high.

0:26:51.836 --> 0:26:52.016
<v Speaker 1>Right.

0:26:52.036 --> 0:26:54.226
<v Speaker 2>We're going on our first very large vessel this year.

0:26:54.236 --> 0:26:58.076
<v Speaker 2>It's 180 feet. And you know, We're expecting success and

0:26:58.096 --> 0:27:00.076
<v Speaker 2>we've done a couple of trials, but it's our first

0:27:00.096 --> 0:27:01.736
<v Speaker 2>time going on for a full season where the boat's

0:27:02.096 --> 0:27:04.826
<v Speaker 2>not coming back for a couple of months.

0:27:05.086 --> 0:27:07.146
<v Speaker 1>So you're worried that the machine is going to break?

0:27:07.206 --> 0:27:09.046
<v Speaker 1>You're going to have to send an engineer out on

0:27:09.086 --> 0:27:10.736
<v Speaker 1>a helicopter or something to fix it?

0:27:11.986 --> 0:27:13.746
<v Speaker 2>Because it's the first time we are sending an engineer

0:27:13.806 --> 0:27:16.126
<v Speaker 2>out there, but it's one of those opportunities that if

0:27:16.166 --> 0:27:18.596
<v Speaker 2>we win that, then that's a great precedent to set

0:27:18.796 --> 0:27:22.096
<v Speaker 2>for trying larger and larger boats as well. And so

0:27:22.856 --> 0:27:24.316
<v Speaker 2>I'm not saying that I'm going to be the first

0:27:24.356 --> 0:27:26.736
<v Speaker 2>person to say, We have conquered this problem and no

0:27:26.776 --> 0:27:29.676
<v Speaker 2>one else has solved it. It's all like an industry effort.

0:27:30.096 --> 0:27:34.096
<v Speaker 2>At the same time, we have for the specific use

0:27:34.126 --> 0:27:37.626
<v Speaker 2>case of the gear types, the fishermen, the species, we

0:27:37.666 --> 0:27:39.886
<v Speaker 2>believe that we have a product that can handle the

0:27:39.906 --> 0:27:43.626
<v Speaker 2>fish really effectively, can generate the quality shelf life benefits

0:27:43.646 --> 0:27:47.866
<v Speaker 2>that we claim under the theoretical underpinnings of which come

0:27:47.946 --> 0:27:52.276
<v Speaker 2>from this inspiration from this artisanal process in Japan.

0:27:53.136 --> 0:27:54.456
<v Speaker 1>How much fish are you going to sell this year?

0:27:55.906 --> 0:27:58.246
<v Speaker 2>I can't give you a hard number, so I can

0:27:58.266 --> 0:28:02.286
<v Speaker 2>give you an indicative amount, which is a couple million pounds.

0:28:02.306 --> 0:28:04.216
<v Speaker 1>I don't know if that's a lot or a little.

0:28:05.026 --> 0:28:07.716
<v Speaker 1>How many pounds of fish does America buy in a year?

0:28:08.516 --> 0:28:15.836
<v Speaker 2>I think the data I can recall is about 9

0:28:15.836 --> 0:28:18.416
<v Speaker 2>billion pounds of fish a year. For us to call

0:28:18.476 --> 0:28:24.636
<v Speaker 2>it a couple million pounds is a great proof of concept,

0:28:24.656 --> 0:28:26.336
<v Speaker 2>but there's a long way to go for us to

0:28:26.376 --> 0:28:27.856
<v Speaker 2>be a major player, you know?

0:28:28.446 --> 0:28:34.306
<v Speaker 1>Yeah, yeah. Yeah, yeah. What do you think might go wrong? Like,

0:28:34.346 --> 0:28:35.926
<v Speaker 1>I'm sure there's a lot of things to be worried about.

0:28:35.966 --> 0:28:38.466
<v Speaker 1>It seems quite complicated what you're trying to do on many,

0:28:38.506 --> 0:28:41.526
<v Speaker 1>many dimensions. Like, what's at the top of the list

0:28:41.606 --> 0:28:43.026
<v Speaker 1>of things you're worried about right now?

0:28:43.726 --> 0:28:45.786
<v Speaker 2>Well, we have a hard business to build, which is

0:28:45.916 --> 0:28:49.796
<v Speaker 2>we're building an industrial robotics company in a very demanding

0:28:49.816 --> 0:28:54.766
<v Speaker 2>environment while also building a consumer brand, and a perishable

0:28:54.786 --> 0:28:56.946
<v Speaker 2>logistics supply chain. So, like, in each one of those,

0:28:56.966 --> 0:29:00.586
<v Speaker 2>you probably have many risks. So, you know, I'll be

0:29:00.606 --> 0:29:03.276
<v Speaker 2>the first to say it's hard, but, you know, solve

0:29:03.296 --> 0:29:04.516
<v Speaker 2>hard problems and get big rewards, right?

0:29:04.736 --> 0:29:07.636
<v Speaker 1>That's the opposite of play stupid games, win stupid prizes.

0:29:07.696 --> 0:29:08.076
<v Speaker 2>Exactly.

0:29:08.236 --> 0:29:10.136
<v Speaker 1>Play hard, interesting games. Yeah.

0:29:10.416 --> 0:29:13.876
<v Speaker 2>Yeah, so I'd say, first of all, making the machines

0:29:14.236 --> 0:29:16.986
<v Speaker 2>work for an increasingly larger number of vessel types and

0:29:17.046 --> 0:29:21.486
<v Speaker 2>operator types so that fishermen feel not just... excited but

0:29:21.706 --> 0:29:24.766
<v Speaker 2>confident that this is a program that they could stick

0:29:24.816 --> 0:29:27.656
<v Speaker 2>with longer term. That's kind of the main engineering focus

0:29:27.676 --> 0:29:29.976
<v Speaker 2>right now. And then, you know, on the perishable logistics side,

0:29:30.556 --> 0:29:32.336
<v Speaker 2>you know, that's very much an economies of scale business.

0:29:32.776 --> 0:29:36.716
<v Speaker 1>Didn't you just buy a big fish processing plant factory

0:29:36.796 --> 0:29:39.276
<v Speaker 1>in Washington? Is that part of this story that you're

0:29:39.296 --> 0:29:39.986
<v Speaker 1>talking about right now?

0:29:39.996 --> 0:29:42.506
<v Speaker 2>Exactly, yeah. So we feasibly could have bought one four

0:29:42.526 --> 0:29:44.886
<v Speaker 2>or five times the size and try to fill it out.

0:29:45.166 --> 0:29:47.866
<v Speaker 2>But we decided to find one that's on the smaller end.

0:29:47.906 --> 0:29:50.936
<v Speaker 2>In fact, a company that's up because they really hit

0:29:50.956 --> 0:29:53.536
<v Speaker 2>a large scale they were selling this plant because this

0:29:53.596 --> 0:29:56.176
<v Speaker 2>is what they this was their very first plant and

0:29:56.196 --> 0:29:57.676
<v Speaker 2>so we're kind of following in their footsteps in that

0:29:57.696 --> 0:30:02.296
<v Speaker 2>way so that's 16,000 square feet it's in Tacoma which

0:30:02.356 --> 0:30:06.566
<v Speaker 2>is just outside of Seattle the great benefit of Having

0:30:06.586 --> 0:30:08.866
<v Speaker 2>that vertical integration is we have a little bit more

0:30:08.926 --> 0:30:12.506
<v Speaker 2>control versus partnering with third parties with how the fish

0:30:12.546 --> 0:30:14.996
<v Speaker 2>are packed. And eventually, you know, we just bought a

0:30:15.016 --> 0:30:17.016
<v Speaker 2>retail packing machine. So we're hoping to get these nice

0:30:17.056 --> 0:30:19.136
<v Speaker 2>little trays for consumers to be able to buy the

0:30:19.396 --> 0:30:21.236
<v Speaker 2>frozen versions of the fish.

0:30:22.096 --> 0:30:26.516
<v Speaker 1>So what's the what's the like happy story of where

0:30:26.556 --> 0:30:29.536
<v Speaker 1>you are in five years? Like if it if it works,

0:30:30.756 --> 0:30:31.656
<v Speaker 1>what will it look like?

0:30:32.556 --> 0:30:35.906
<v Speaker 2>Put it simply, middle-class Americans can go into their grocery

0:30:35.926 --> 0:30:38.986
<v Speaker 2>store and buy fish that tastes better and lasts longer

0:30:39.006 --> 0:30:43.566
<v Speaker 2>but are handled more humanely for the same price. I

0:30:43.586 --> 0:30:45.166
<v Speaker 2>don't think you need to complicate it more than that.

0:30:45.466 --> 0:30:49.666
<v Speaker 2>It's ultimately a game of we want to use technology

0:30:49.766 --> 0:30:53.146
<v Speaker 2>to bring down the marginal cost of doing this process

0:30:53.686 --> 0:30:58.916
<v Speaker 2>so that it can be applied through basically every single fish.

0:30:59.416 --> 0:31:01.536
<v Speaker 2>The same way that cattle and poultry have legal handling

0:31:02.366 --> 0:31:05.246
<v Speaker 2>you know, to be killed in a similar method. Yeah.

0:31:06.606 --> 0:31:09.186
<v Speaker 1>Do you imagine, I mean, I feel like if you

0:31:09.206 --> 0:31:11.366
<v Speaker 1>get there, other people will be trying to do what

0:31:11.406 --> 0:31:14.126
<v Speaker 1>you're doing. And I'm sure you have some intellectual property, but.

0:31:15.506 --> 0:31:15.886
<v Speaker 2>I don't know.

0:31:16.166 --> 0:31:19.706
<v Speaker 1>I don't know how much, and people are, whatever, things happen, right? Like,

0:31:20.186 --> 0:31:22.806
<v Speaker 1>for you, is that a good world or a bad world? If, like,

0:31:22.896 --> 0:31:26.576
<v Speaker 1>lots of people are out there developing their own systems

0:31:26.636 --> 0:31:29.136
<v Speaker 1>that say they do, in fact, kill fish in a

0:31:29.256 --> 0:31:31.996
<v Speaker 1>more humane way than they're killed today. Mm-hmm. Does that

0:31:32.016 --> 0:31:33.016
<v Speaker 1>make you happy or sad?

0:31:33.036 --> 0:31:36.616
<v Speaker 2>It makes me happy. I think we, obviously, we have

0:31:37.056 --> 0:31:40.896
<v Speaker 2>economic outcome that we're trying to underwrite for investors. And so, ideally,

0:31:41.156 --> 0:31:43.276
<v Speaker 2>you know, what we end up doing is just move

0:31:43.316 --> 0:31:45.336
<v Speaker 2>very quickly and partner with a lot of big companies.

0:31:45.716 --> 0:31:48.386
<v Speaker 2>And all of them are working with our technology. And

0:31:49.186 --> 0:31:52.186
<v Speaker 2>we maybe adjust the business model, you know. But we

0:31:52.486 --> 0:31:55.646
<v Speaker 2>originally actually tried to sell the technology. We didn't really

0:31:55.706 --> 0:31:58.226
<v Speaker 2>have that as, like, we didn't get the response we wanted.

0:31:58.556 --> 0:32:00.756
<v Speaker 1>You wanted to sell the robots, sell the machines.

0:32:00.796 --> 0:32:01.156
<v Speaker 2>Exactly.

0:32:01.236 --> 0:32:04.866
<v Speaker 1>That was your first model. Seems way easier to build

0:32:04.906 --> 0:32:08.586
<v Speaker 1>that business, right? Like, buy my machine is way easier than, like,

0:32:08.866 --> 0:32:11.506
<v Speaker 1>we're going to create a fish brand and buy a

0:32:11.546 --> 0:32:14.746
<v Speaker 1>fish processing plant and sell it to restaurants. Like, that

0:32:14.766 --> 0:32:16.126
<v Speaker 1>seems like a way harder business.

0:32:16.266 --> 0:32:18.516
<v Speaker 2>Yeah, but it just came out of the point of

0:32:18.546 --> 0:32:23.296
<v Speaker 2>view that unless we did it ourselves, people would just

0:32:23.336 --> 0:32:26.216
<v Speaker 2>not understand the value for what we were creating. And

0:32:26.256 --> 0:32:27.496
<v Speaker 2>so we had to put our money where our mouth was,

0:32:27.676 --> 0:32:30.156
<v Speaker 2>which is, doing this vertical integration to be able to

0:32:30.616 --> 0:32:33.516
<v Speaker 2>actually go to these retailers, earn the credibility, and show

0:32:33.556 --> 0:32:36.236
<v Speaker 2>them what we could do. And now we're starting to

0:32:36.256 --> 0:32:38.656
<v Speaker 2>get some traction. And so the hope is over the

0:32:38.676 --> 0:32:42.126
<v Speaker 2>next one to two years, these big processors, these big

0:32:42.166 --> 0:32:46.546
<v Speaker 2>dock buyers, the big fishing unions will come to us

0:32:46.606 --> 0:32:50.846
<v Speaker 2>and potentially partner with us. And that's a little bit

0:32:50.866 --> 0:32:53.126
<v Speaker 2>of a roundabout way to get to the end goal,

0:32:53.266 --> 0:32:55.226
<v Speaker 2>but as long as we get to the end goal.

0:32:59.346 --> 0:33:01.386
<v Speaker 1>We'll be back in a minute with the lightning round.

0:33:13.686 --> 0:33:15.326
<v Speaker 1>The ads are over. Now we're going to do the

0:33:15.346 --> 0:33:18.576
<v Speaker 1>lightning round. Is it true that you and your grandfather

0:33:18.616 --> 0:33:19.676
<v Speaker 1>have matching tattoos?

0:33:20.236 --> 0:33:24.506
<v Speaker 2>So same theme tattoo. They're both anchors. Um, I just

0:33:24.526 --> 0:33:26.766
<v Speaker 2>have a different style of anchor. Mine is an American

0:33:27.106 --> 0:33:29.586
<v Speaker 2>traditional sailor tattoo, it's a Sailor Jerry one. He just

0:33:29.606 --> 0:33:31.846
<v Speaker 2>has like a gray, or had, now that he's passed,

0:33:32.046 --> 0:33:34.206
<v Speaker 2>but he has a gray, like a normal line tattoo.

0:33:35.446 --> 0:33:39.376
<v Speaker 1>Tell me about your grandfather having a tattoo. It's unusual

0:33:39.436 --> 0:33:40.796
<v Speaker 1>for a grandfather, in my experience.

0:33:41.436 --> 0:33:44.956
<v Speaker 2>Yeah, it's a funny story. So he loves sailing, loves fishing.

0:33:45.556 --> 0:33:49.716
<v Speaker 2>The story goes, you know, he went to this carnival

0:33:50.396 --> 0:33:54.186
<v Speaker 2>where they were doing tattoos, and, you know, His dad

0:33:54.206 --> 0:33:55.766
<v Speaker 2>had told him not to get one, and he just

0:33:55.806 --> 0:33:57.706
<v Speaker 2>decided to walk in and get one. And then, you know,

0:33:57.726 --> 0:33:58.886
<v Speaker 2>it was just like a spur of the moment when

0:33:58.906 --> 0:34:00.966
<v Speaker 2>he was 17, and it kind of just marked his

0:34:01.006 --> 0:34:03.716
<v Speaker 2>passion for that. My reason for why I got it,

0:34:03.966 --> 0:34:07.166
<v Speaker 2>in contrast, was a little more intentional, which is, you know,

0:34:07.186 --> 0:34:09.956
<v Speaker 2>I moved to the U.S. when I was 18, and,

0:34:10.006 --> 0:34:12.936
<v Speaker 2>you know, me having grown up in the Middle East

0:34:12.996 --> 0:34:15.236
<v Speaker 2>and kind of adjusting to culture, I wanted to have

0:34:15.456 --> 0:34:17.556
<v Speaker 2>some mark to commemorate the fact that I was, like,

0:34:17.956 --> 0:34:19.836
<v Speaker 2>embracing a new culture and taking my own spin on it.

0:34:20.256 --> 0:34:22.956
<v Speaker 2>And so... The one that I have is the Sailor

0:34:22.976 --> 0:34:25.736
<v Speaker 2>Jerry one, which, you know, Sailor Jerry, he was in

0:34:25.756 --> 0:34:28.516
<v Speaker 2>the Navy, stayed in Japan, took inspiration from the art

0:34:28.536 --> 0:34:31.456
<v Speaker 2>style and mixed it with traditional American tattoos to come

0:34:31.496 --> 0:34:33.876
<v Speaker 2>up with this new version for each of them. So,

0:34:34.396 --> 0:34:36.246
<v Speaker 2>funnily enough, I guess now saying it out loud, it

0:34:36.256 --> 0:34:37.766
<v Speaker 2>kind of has a bit of a nod to Shinkei.

0:34:39.166 --> 0:34:40.986
<v Speaker 1>Give me one piece of fisherman wisdom.

0:34:42.206 --> 0:34:43.366
<v Speaker 2>Don't bring a banana on a boat.

0:34:46.426 --> 0:34:47.006
<v Speaker 1>Tell me more.

0:34:47.146 --> 0:34:51.436
<v Speaker 2>Yeah, it's an old sailor. story for bad luck and

0:34:51.836 --> 0:34:54.816
<v Speaker 2>I think it comes from the fact that bananas carry

0:34:55.356 --> 0:34:58.056
<v Speaker 2>fruit flies with a higher percentage and so people would

0:34:58.096 --> 0:35:01.336
<v Speaker 2>bring bananas and the flies would like lay larvae eggs

0:35:01.436 --> 0:35:03.656
<v Speaker 2>and they would basically eat all the food and supplies

0:35:04.036 --> 0:35:06.076
<v Speaker 2>and so if you run out of them for a

0:35:06.076 --> 0:35:07.936
<v Speaker 2>certain amount and they go rotten you have to turn around.

0:35:09.796 --> 0:35:12.086
<v Speaker 1>It's a bad luck I thought it was I thought

0:35:12.106 --> 0:35:14.946
<v Speaker 1>it was slipping on the peel when you said that it's.

0:35:14.866 --> 0:35:18.026
<v Speaker 2>Probably there too exactly I guess in contrast, you should

0:35:18.046 --> 0:35:20.606
<v Speaker 2>definitely bring oranges so you can stave off scurvy if

0:35:20.626 --> 0:35:23.346
<v Speaker 2>you're going to go for a long trip.

0:35:23.386 --> 0:35:29.086
<v Speaker 1>Good fruit tips from fishermen. Tell me about your houseplant game.

0:35:30.146 --> 0:35:32.526
<v Speaker 2>Wow, you did your research.

0:35:32.546 --> 0:35:33.006
<v Speaker 1>That's great.

0:35:34.426 --> 0:35:36.886
<v Speaker 2>Yeah. So I actually have a bunch of aloe vera.

0:35:36.906 --> 0:35:39.646
<v Speaker 2>That's kind of inspiration for my mom that I use

0:35:39.886 --> 0:35:42.726
<v Speaker 2>for skin. And I also make into tea once in

0:35:42.746 --> 0:35:45.286
<v Speaker 2>a while. I have a snake plant that I keep

0:35:45.306 --> 0:35:48.896
<v Speaker 2>in my room. I've never quite cracked the code for

0:35:48.916 --> 0:35:53.356
<v Speaker 2>why American AC feels stuffy. And so having a bunch

0:35:53.376 --> 0:35:56.256
<v Speaker 2>of snake plants helps my room stay clean. Outside that,

0:35:56.416 --> 0:35:57.956
<v Speaker 2>I just love to be with the plants. Um, and

0:35:58.016 --> 0:36:00.736
<v Speaker 2>I love other people having, you know, whenever I go

0:36:00.756 --> 0:36:03.016
<v Speaker 2>into someone's home, feeling a little bit more Zen, it

0:36:03.056 --> 0:36:06.326
<v Speaker 2>feels just that extra bit of integrated into nature.

0:36:07.926 --> 0:36:09.566
<v Speaker 1>Do you think plants are sentient?

0:36:11.586 --> 0:36:16.066
<v Speaker 2>I actually do. I love you asking these questions. Um, Yeah,

0:36:16.296 --> 0:36:18.576
<v Speaker 2>I don't know if it's the same density of sentience

0:36:19.156 --> 0:36:22.716
<v Speaker 2>that I would call, you know, an animal would have

0:36:22.736 --> 0:36:25.676
<v Speaker 2>or something similar. You know, they exhibit behavior, right? You

0:36:25.716 --> 0:36:28.376
<v Speaker 2>shine light, you know, and they'll grow towards the light.

0:36:29.236 --> 0:36:33.646
<v Speaker 2>They have been able to communicate in long distances. And so, again,

0:36:33.726 --> 0:36:36.846
<v Speaker 2>it's hard to kind of prescribe, you know, is that

0:36:36.886 --> 0:36:41.106
<v Speaker 2>sentience or not? Yeah, it's hard to describe what that

0:36:41.166 --> 0:36:42.086
<v Speaker 2>really means. Yeah.

0:36:43.076 --> 0:36:46.276
<v Speaker 1>They definitely have preferences. They definitely have preferences.

0:36:46.656 --> 0:36:47.676
<v Speaker 2>Yeah.

0:36:48.056 --> 0:36:50.736
<v Speaker 1>If you weren't doing the job that you're doing, if

0:36:50.756 --> 0:36:54.786
<v Speaker 1>you weren't in fish, what would you be doing?

0:36:55.386 --> 0:36:57.246
<v Speaker 2>You know, if someone just asked me this question, I'll

0:36:57.286 --> 0:37:01.386
<v Speaker 2>tell you the answer. Probably run a dairy farm in

0:37:01.406 --> 0:37:04.096
<v Speaker 2>New Zealand. Peace and quiet.

0:37:04.156 --> 0:37:06.296
<v Speaker 1>Is that true or is that just like your escape

0:37:06.416 --> 0:37:08.476
<v Speaker 1>fantasy when your job seems really hard?

0:37:08.986 --> 0:37:10.376
<v Speaker 2>I mean, there's many other things I would do. I

0:37:10.416 --> 0:37:13.916
<v Speaker 2>have so many hobbies, but that's probably the one that

0:37:14.136 --> 0:37:16.936
<v Speaker 2>came to mind most recently.

0:37:18.256 --> 0:37:20.516
<v Speaker 1>What was the hardest thing about working as a deckhand?

0:37:21.896 --> 0:37:25.056
<v Speaker 2>I think the feeling that you can go out for

0:37:25.136 --> 0:37:29.126
<v Speaker 2>hours and not have anything to show for it while

0:37:29.186 --> 0:37:32.626
<v Speaker 2>working very hard and trying again and again. It's difficult

0:37:32.666 --> 0:37:35.206
<v Speaker 2>to predict how good the catch is going to be,

0:37:35.506 --> 0:37:37.466
<v Speaker 2>and that's part of the excitement and also part of

0:37:37.506 --> 0:37:40.946
<v Speaker 2>the disappointment when things do or don't go well.

0:37:42.126 --> 0:37:44.466
<v Speaker 1>Thank you for your time. I really appreciate it. For sure.

0:37:45.046 --> 0:37:45.306
<v Speaker 2>Thank you.

0:37:52.666 --> 0:37:57.366
<v Speaker 1>Fave Khawaja is the co-founder and CEO of Shinkai. Please

0:37:57.506 --> 0:38:01.316
<v Speaker 1>email us at problem at pushkin.fm. Tell us what kinds

0:38:01.356 --> 0:38:02.996
<v Speaker 1>of shows we should do more of or less of

0:38:03.026 --> 0:38:05.036
<v Speaker 1>or particular people you think would be good on the show.

0:38:05.576 --> 0:38:07.796
<v Speaker 1>You can also find me on X and on LinkedIn

0:38:07.816 --> 0:38:11.156
<v Speaker 1>at Our show is produced by Gabriel Hunter Chang and

0:38:11.256 --> 0:38:14.316
<v Speaker 1>Trina Menino. Our editor is Lydia Jean Cott, and our

0:38:14.416 --> 0:38:17.636
<v Speaker 1>engineer is Sarah Bruguier. I'm Jacob Goldstein, and we'll be

0:38:17.676 --> 0:38:19.826
<v Speaker 1>back next week with another episode of What's Your Problem?