Just as scientists note the complex interdependence of species in the natural world, economists note a similar kind of interdependence at work with industries, communities, and livelihoods. With so much already on the line during these trying times, menhaden policies based on disputed, inconclusive ecological theories could yield devastating impacts on this economic web of life.
WASHINGTON (Saving Seafood) 25 January 2012 — With an economy struggling to regain equilibrium, governments at all levels have adopted policies aimed at triggering a resurgence in job growth and economic stimulus. Unfortunately, the prospect of some new policies may create more challenging conditions for one important industry based on a small and prolific fish – the Atlantic menhaden.
Most Americans know little about menhaden, an oily fish more likely to be found in their medicine cabinets than on their dinner plates. Prized as one of the main sources for fish oil and fish meal, menhaden are also found in hundreds of household items, from margarine to pet food to salad dressing. The fish also make great bait for crabbers and lobstermen. All told, the resource supports thousands of jobs – directly and indirectly – and generates hundreds of millions of dollars annually, in effect, representing a significant path towards improving the country’s dour economic circumstances.
But this path may become fraught with obstruction, which largely stems from disagreement about the sustainability of the fish and mounting pressure on the regulatory authority that oversees its management. Lauded as a victory for environmental and recreational angling groups who have long dismayed of commercial menhaden fishing, the Atlantic States Marine Fisheries Commission (ASMFC), a deliberative body of representatives from all 15 Atlantic coast states, recently voted to set new “safe harvest” limits on menhaden. Before they are implemented, the ASMFC Menhaden Board – a committee comprised of state fisheries professionals and political appointees – will need to determine the regulations that will achieve these newly approved goals. The question is: will they implement policies that cause economic harm to the industry and, consequently, the myriad jobs and communities that rely on it?
Before that question can be answered, it is important to note that some scientists already dispute the very foundations on which arguments for stricter menhaden fishing policies stand, most notably the theory that there is an immediate correlation between commercial harvest and the sustainability of the species. Unlike other marine resources, the health of Atlantic menhaden as a species has little to do with the amount or intensity of commercial fishing. Conventional wisdom dictates that the larger a population, the better chance it stands to produce future generations – and that certainly applies to many species. However, menhaden boast an evolutionary edge that enables females to produce enormous numbers of eggs – upward of 360,000 per fish. And the success of those eggs, many scientists say, is far more dependent on environmental conditions, such as weather, water quality and atmospheric pressure, than on anything else, including restrictions on commercial fishing.
“Intuitively, it makes sense that less fishing means more menhaden,” says National Marine Fisheries Services biologist Joseph Smith. “But it doesn’t work that way. Based on years of data, there doesn’t seem to be a very good relationship between the number of spawners and the number of juveniles.”
Nonetheless, the contention of a strong correlation between spawners and juveniles – among other misconceptions – could help establish restrictions that prove extremely costly.
For instance, the Atlantic menhaden reduction fishery, considered the lifeblood of Virginia’s Northern Neck region, contributes $80 million in annual economic output to the rural and largely impoverished region. In Reedville, Omega Protein operates a facility that converts the small and abundant fish into fish oil and fish meal. The plant employs more than 300 people, including Betty Smith Gaskins. Born and raised in the area, she has worked as an inventory specialist and administrative assistant at the plant for nearly four decades. But the prospect of new policies that could hinder, if not altogether halt, plant operations has her and her coworkers worried.
“We have enough problems keeping our children in the area now,” she says. “A lot of businesses would have to close and this would become a retirement community.”
Indeed, if the reduction fishery were to close in Virginia’s Northern Neck, Smith Gaskins’ worst fears would likely be realized. A recent study by the Virginia Institute of Marine Science on the economic and social importance of menhaden on the Chesapeake Bay used a financial simulator model to examine the impacts of different harvest quota scenarios. “In the event of a closure [of the Omega Protein plant in Reedville],” the report states, “the loss of the reduction industry alone would generate a 14.3 percent and 8.1 percent decline in total county output and employment; respectively.”
And with drastic harvest restrictions, these kinds of economic consequences could extend far and wide, considering the menhaden fishery and its stakeholders inhabit a broad swath of the mid-Atlantic and northeastern coast of the United States, largely mirroring the fish’s natural distribution from the Gulf of Maine to the east coast of Florida. Throughout much of this range, local economies and thousands of jobs are both directly and indirectly on the line.
“It’s a trickle-down effect, and it’s unwarranted to start with,” laments Stanley O’Bier, president of Pride of Virginia Seafood. Established in 1965 as a small crabbing operation in Callao, Virginia, O’Bier’s business currently generates $6 million in annual revenues, much of which stems from menhaden bait sales. “If they’re going to cut [the menhaden harvest] 40-45 percent, I can’t stay in business unless I raise prices,” he says. But “the crabbers wouldn’t be able to stand the price increase.” He contends that this would ultimately hurt the already-thin margins of many crab fishermen up and down the coast, potentially forcing many out of business.
Jeff Kaelin, of Lund’s Fisheries in Cape May, New Jersey, says the company has a significant amount of money invested in the fishery. His company’s menhaden bait catch allows them to realize their capacity. “It helps us get a return on our investment.” But if harvest restrictions are implemented, he says “We probably won’t be making the kinds of investments that we otherwise would.”
John Manzione, of the New York Fishing and Tackle Trade Association, says it is important for dealers to have a sufficient amount of bait to meet diverse market demands, and that menhaden is “a well-known, well-utilized fish. Usually the South Shore [of Long Island] bait dealers will sell to crabbers, and North Shore dealers sell to anglers catching bluefish and other fish.”
Certainly, the role of menhaden as bait has become increasingly important. According to a report prepared by NOAA and the New Jersey Division of Game and Fish, the bait fishery averaged 11 percent of total menhaden landings from 1985-2000. Now, the bait fishery makes up around 20 percent of total menhaden catch. Concurrently, many profitable fisheries – the crab industries in the Chesapeake Bay and off the Carolinas and the enormous lobster industry in Maine, to name a few – have become increasingly dependent on menhaden. In fact, partly due to a recent decrease in the herring catch, another major source of lobster bait, menhaden has become an increasingly popular choice for Maine lobstermen. An article that appeared in Maine’s Fisherman’s Voice recently stated that menhaden represented only six percent of lobster bait in 2006. By 2008, that percentage more than tripled to 19 percent, and now may be as high as 32 percent.
Jennie Bichrest is the owner of Purse Line Baits in Sebasco Estates, Maine. “Looking back at my books,” she explains, “my company handled 4,842,000 pounds of menhaden in 2007. Last year, that number went up to 9,500,000 pounds.” This increase represents double the amount of menhaden over a four-year period.
As one of the original three large bait dealers in the state, Bichrest worries that tighter restrictions on menhaden harvests could create an increasingly inhospitable business environment. “Pogies (menhaden) have always been my mainstay, but now everyone’s buying them and I don’t know how increasing limits will fare for business.”
She also worries how smaller businesses and others in the region will be affected. “A lot of little skiff guys fish for them for bait too,” she says. “And don’t forget the trucking operations that are employed to haul the fish.”
Last summer, Bichrest was one of 42 industry stakeholders, from Maine to North Carolina, who signed a letter urging the ASMFC to carefully consider all of the complexities regarding the menhaden fishery before making significant policy decisions. Now that the ASMFC has set “safe harvest” goals, the regulations that are determined to achieve them could set into motion a far-reaching ripple effect of disastrous economic consequences for Atlantic fishing communities.
edited by Tazewell Jones