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Largest Pacific cod catchers look to hook investor for fleet renewal, not sell up

October 12, 2018 — Clipper Seafoods and Blue North Fisheries’ shareholders are looking for an investor in a combined business to help finance a renewal of the fleet, but not for anyone to take a majority stake, sources familiar with their thinking told Undercurrent News.

The owners of Clipper and Blue North, the two largest US Pacific cod longline companies, are looking for an investor to come in and take a significant share of a combined company, “even up to 49.9%”, as one put it, but they’re not interested in getting out of the business. Part of the reason for seeking investment is fleet renewal, sources told Undercurrent.

In late August, Undercurrent reported the two had brought in Zachary Scott, a Seattle, Washington-based mergers and acquisitions advisory firm, to advise on a possible sale. Sources said a full sale could be a possible outcome, depending on the price, but it is not the preference of the shareholders, who want to stay involved.

Zachary Scott, which did not respond to a request for comment from Undercurrent, has sent an information memorandum on the combined companies to over 30 trade and investor players, sources said.

Dave Little, the main shareholder in Clipper, and Michael and Patrick Burns, who control Blue North, all pioneers of the longline fishery in Alaska, did not respond to a request for comment from Undercurrent.

Read the full story at Undercurrent News

TIM BRADNER: Science-based management the key to Alaska’s successful fisheries

October 12, 2018 — One of Alaska’s great success stories is the resurrection of our salmon fisheries after a virtual collapse that occurred under federal management in the years before statehood.

When Alaska became a state in 1959, the fledgling state government immediately instituted science-based fisheries management using sustained yield principles. Improved management helped, but coastal communities and the state economy lagged as the slow recovery process took place. When salmon runs had failed to recover by the early 1970s, the Legislature took two actions. First, it enacted a limited-entry program to control overfishing. Second, in partnership with the Alaska Department of Fish and Game, it created the framework for the state hatchery program.

The latter was part of a carefully developed plan to supplement wild stocks and offset wide swings in natural runs, particularly for pink salmon. Learning from the mistakes of the Lower 48, the program required hatcheries to be sited away from naturally occurring salmon stocks, required the use of only wild brood stock, and other steps to protect wild stocks. Stabilizing the salmon fisheries made it possible for harvesters to make a living, for processors to remain open, and for coastal communities to develop stable economies.

Nearly 50 years later, it is clear these initiatives have succeeded. Today, the state’s salmon enhancement program with its with science-based management by the Fish and Game department, have helped to grow statewide salmon harvests since those lean years before statehood. From a salmon harvest of 25 million in 1959, we now routinely have catches of more than 100 million, which support thousands of fishermen and fishery-dependent businesses across Alaska.

Despite this success, and the stability that the hatchery program has provided the state and coastal economies, hatcheries are now being criticized by some who argue hatchery-produced salmon are overloading the ocean capacity, resulting in less food for king and sockeye salmon. The Alaska Board of Fisheries now has proposals before it to reduce current hatchery production and will meet on the issue Oct. 16.

Read the full opinion piece at the Anchorage Daily News

Alaska razor clam harvest expected to dip

October 11, 2018 — Cook Inlet clammers dug on a quota of more than 350,000 pounds as the season got underway in May. The diggers arrive at Polly Creek in spring, put up semi-permanent camps and hit the low tides each morning in search of razor clams, which are lugged back up the beach, where the sands are solid enough to land small airplanes. The planes ferry them from the west side of the inlet to a processing plant at Nikiski, which is north of Kenai on the Kenai Peninsula.

Clam meat recovery runs 40 to 50 percent. In 2016, the clammers dug 284,800 pounds of razors, and the harvest fell to 177,147 pounds in the 2017 season. Preliminary harvest data for 2018 suggests the harvest will wind up around 175,940 pounds, down sharply from the 380,912 pounds that diggers dug just five years ago.

The decline in production could be tied to a couple of factors, according to Pat Shields, a regional management biologist with the Alaska Department of Fish and Game in Soldotna.

“There are fewer diggers working for the company now,” said Shields. “They used to average around 20 to 22 diggers per year, and now they’re down to something like 14 to 15.”

Most of the product winds up in retail markets along the West Coast. Diggers are paid 90 cents a pound for food-grade clams and 60 cents for those with broken shells, which are used for bait.

According to Shields, 2018 revenues tallied up to $175,624 for food-grade clams and $2,344 for bait.

Meanwhile, Alaska’s fleet of just two scallop dredgers worked on a statewide guideline harvest level of 265,000 pounds (shucked meat) The majority of the 145,000-pound GHL for the 2018-19 season has been set for harvest areas near Yakutat, with another 85,000 pounds available for harvest areas surrounding Kodiak. The Cook Inlet harvest area has been closed in an effort to conserve dwindling biomass.

Read the full story at National Fisherman

Bering Sea Pacific cod move north as survey sees fewer fish in east

October 10, 2018 — As was the case recently with pollock in Alaska’s southeastern Bering Sea, US government scientists found a surprising result when they surveyed Pacific cod stocks this summer: a large number of fish apparently moved north.

Staff at the National Oceanic Atmospheric Administration’s (NOAA) Alaska Fisheries Science Center are in the process of developing stock assessments that the North Pacific Fishery Management Council will use in making allowable biological catch (ABC) and total allowable catch (TAC) levels for Pacific cod in the Bering Sea for 2019.

However, one key input that will figure into the model that NOAA is making to estimate the Pacific cod biomass — the results of the 2018 southeastern Bering Sea bottom trawl survey — has declined significantly.

Read the full story at Undercurrent News

ALASKA: 62.3 Million: Bristol Bay’s 2018 salmon season the largest ever

October 10, 2018 — It is official; 2018 was the largest sockeye salmon run to Bristol Bay on record, and the Alaska Department of Fish and Game has records dating back to 1893. The 2018 Bristol Bay Season Summary, which ADF&G released in September, reiterates the records this year’s run broke. To start with, the total run to Bristol Bay this summer was 62.3 million sockeye. That is 21 percent above the preseason forecast of 51.3 million fish.

The Nushagak District set a new record for the largest single district sockeye salmon harvest at 24.1 million sockeye, accounting for more than half the reds harvested in the bay this summer.

The Togiak District also set a record for sockeye return to its district. Tim Sands, ADF&G area management biologist for the Togiak and Nushagak districts noted that the length of the run rather than a concentrated peak drove up those numbers.

He said, “It started picking up early in July. It still wasn’t anything exceptional, it just kind of went on and on and on with good catches,” adding that he thought catch and escapement in the district could have been even higher, but mid-August storms curtailed fishing and the counting towers stopped counting, according to their seasonal schedule in early August.

The exvessel value also broke a record – $281 million for all salmon species. That is almost two and a half times the 20 year average. Sockeye brought an average $1.26 per pound base price.The total harvest across all five districts was 41.3 million sockeye, the second largest harvest in the fishery’s history.

Read the full story at KDLG

Key Alaska seafood products dropped from list of Chinese tariffs

October 9, 2018 — Some of Alaska’s seafood industry has escaped the Trump administration’s trade war with China for now. The industry is happy the administration dropped some mainstay seafood products from a list of tariffs it imposed last week.

The Trump administration levied billions of dollars worth of tariffs on the world’s second largest economy on Sept. 24. The tariffs start at 10 percent and will ratchet up to 25 percent by 2019. The Trump administration’s original list of levies included seafood products that Alaska processors export to China for reprocessing.

“A portion of that actually comes back to the U.S.,” Garrett Everidge, a fisheries economist at the McDowell Group, said. “These would be products such as salmon products, Pacific cod products and other seafood products that the state produces.”

But Pacific cod and salmon have been dropped from the list.

“As of right now, those categories have been excluded from the import tariffs. Pollock products have also been excluded,” Everidge explained.

That’s good news. Even when those tariffs were just a proposal, they were slowing down Alaska processors’ sales in China, the main buyer of Alaska seafood.

That’s because Chinese fish buyers were taking a wait-and-see approach as the Trump administration worked to finalize its list of tariffs. 

“Compared to a few months ago when there was a bit more uncertainty and just less information, we now have a better understanding of those products that are actually going to be on the list,” Everidge added. “That represents an improvement for both the buyers and sellers.”

Alaska Seafood Marketing Institute Executive Director Alexa Tonkovich agrees the final list is an improvement.

Read the full story at Alaska Public Media

Fight over pink salmon hatchery splits Alaska fishermen

October 5, 2018 — The pink salmon harvest in Alaska may be down, but a recreational fishing group is seeking to prevent a hatchery in Prince William Sound from putting an extra 20 million young fish in the water.

The Kenai River Sportfishing Association (KRSA) says the artificially revved up number of pink salmon in Alaska are a major contributor to a reduction in the number of other more valuable salmon species, such as sockeye, king and coho. It has filed a petition with the state’s Board of Fisheries (BOF) to block the previously approved plans of the Solomon Gulch hatchery, in Valdez, to grow the number of pink salmon it can grow from eggs and release annually into Prince William Sound to 270m.

The United Fishermen of Alaska (UFA), a group that represents 35 commercial fishing associations and related interests, including hatcheries, however, is firing back. It argues that KRSA’s request defies strong science. UFA has hired a research firm and rallied its members to submit comments in advance of the next BOF meeting, Oct. 16, in Anchorage, Alaska.

“We need to send a direct and clear message to the BOF to show support for our hatchery systems and their necessity to our state for all users, not just commercial fishermen,” UFA told its members in an email sent Tuesday.

Read the full story at Undercurrent News

 

Alaska salmon hatchery critics call for decreased caps

October 5, 2018 — Salmon that begin their lives in Alaska hatcheries often save the day for thousands of fishermen when returns of wild stocks are a bust. This year was a prime example, when pinks and chums that originated in hatcheries made up for record shortfalls for fishing towns in the Gulf of Alaska.

“This year Kodiak hatchery fish added more than $6 million for fishermen, and also for sport fish, subsistence and personal use fisheries,” said Tina Fairbanks, director of the Kodiak Regional Aquaculture Association, in testimony to the Kodiak Island Borough after one of the Island’s poorest salmon seasons.

But Alaska’s hatchery program, which has operated since the early 1970s, is under assault by critics who claim the fish are jeopardizing survival of wild stocks.

A Kenai sportfishing group said in statements to the state Board of Fisheries that “massive releases of pinks from Prince William Sound hatcheries threaten wild sockeye and Chinook salmon” bound for their region. An individual from Fairbanks is calling for a decreased cap on how many pink salmon some hatcheries are allowed to release to the ocean each year.

Read the full story at National Fisherman

 

ALASKA: Alaska snow crab TAC increased by 47%

October 5, 2018 — The harvesters of snow crab in Alaska’s Bering Sea have received the good news they anticipated just days before their next season is set to begin. The Alaska Department of Fish and Game (ADF&G) has set their total allowable catch at 12,620 metric tons, a 47% increase over the 8,600t TAC permitted in the 2017/18 season.

The season begins Oct. 15 and closes on May 15 or May 31, depending on the subdistrict.

There was much optimism about the coming TAC for snow crabs (Chionoecetes opilio) given the stock assessments delivered roughly a week ago to the North Pacific Fishery Management Council, as reported by Undercurrent News.  A survey had shown a biomass of 198,400t of mature male snow crabs, a 136% increase over the 84,000t found in 2017. That’s the largest it’s been since 1998, the Stock Assessment and Fishery Evaluation (SAFE) report noted. Also, there are 165,000t of females, up 55% from the 106,800t found in 2017.

The SAFE report also noted earlier high estimates of recruitment.

The new TAC is much better news than the TAC that ADF&G delivered before the 2017/18 season, which represented a decrease of 12% over the 2016/17 season (9,800t), and the 2016/17 season TAC, which was half of what was allowed during the 2015-16 season.

The new TAC breaks down this way: 24.8 million lbs for the individual fishing quota; and 2.8 million lbs for the community development quota.

“A higher quota for snow crab this year could have significant market implications,” said the Pacific Seafood Processors Association in a statement about the new TAC.

Read the full story at Undercurrent News

Hatchery salmon supplement Alaska’s wild stocks but have critics

October 4, 2018 — Salmon that begin their lives in Alaska hatcheries often save the day for thousands of fishermen when returns of wild stocks are a bust. This year was a prime example, when pinks and chums that originated in hatcheries made up for record shortfalls for fishing towns in the Gulf of Alaska.

“This year Kodiak hatchery fish added up to more than $6 million for fishermen, and also for sportfish, subsistence and personal use fisheries,” Tina Fairbanks, director of the Kodiak Regional Aquaculture Association, said in testimony to the Kodiak Island Borough after one of the island’s poorest salmon seasons.

But Alaska’s hatchery program, which has operated since the early 1970s, is under assault by critics who claim the fish are jeopardizing survival of wild stocks.

A Kenai sportfishing group said in statements to the Alaska Board of Fisheries that “massive releases of pinks from Prince William Sound hatcheries threaten wild sockeye and chinook salmon” bound for their region. An individual from Fairbanks is calling for a decreased cap on how many pink salmon some hatcheries are allowed to release to the ocean each year.

Currently, 29 salmon hatcheries operate in Alaska, producing primarily chums and pinks. Twenty-five are operated by private nonprofit corporations funded by the sale of a portion of the salmon returns. Two sportfish hatcheries are operated by the state at Fairbanks and Anchorage, one research hatchery is run by NOAA Fisheries, and one is operated by the Metlakatla Indian Community.

Alaska hatcheries don’t grow fish to adulthood, as fish farms do. They can be likened more to salmon maternity wards, where fertilized eggs from local stocks are incubated until they become big enough to be let out into the world.

Read the full story at Anchorage Daily News

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