Saving Seafood

Season of uncertainty: Alaska braces for seafood tariffs

June 14, 2019 — Fisheries are always fraught with uncertainties, but there is an added element this year: trade tariffs on Alaska’s largest export: seafood. “The industry is accustomed to dealing with uncertainty about harvest levels, prices and currency rates. The trade disputes just add another layer to that,” said Garrett Evridge, an economist with the McDowell Group.

Tariffs of up to 25 percent on U.S. seafood products going to China went into effect last July and more are being threatened now by the Trump administration. China is Alaska’s biggest seafood buyer purchasing 54 percent of Alaska seafood exports in 2017 valued at $1.3 billion.

“It’s important to remember that a tariff is simply a tax and it increases the prices of our products,” Evridge explained. “As Alaskans we are sensitive to any increase in the price of our seafood because we are competing on a global stage. And right now we have tariffs imposed on seafood from the Chinese side and the U.S. side.”

In terms of Alaska salmon, the new taxes could hit buyers of pinks and chums especially hard. Managers expect huge runs of both this summer and much of the pack will be processed into various products in China and then returned to the United States.

“There is uncertainty as to whether or not those products will be tariffed and the Trump administration has indicated they want to tariff all products from China,” Evridge said.

For salmon, in a typical year Alaska contributes 30 to 50 percent of the world’s wild harvest. But when you include farmed salmon, Evridge said, Alaska’s contribution is closer to 15 percent of the global salmon supply.

The Alaska Dept. of Fish and Game is predicting a total catch of 213.2 million salmon this year, more than 80 percent higher than in 2018.

Read the full story at National Fisherman

Feature: The Entanglement Tango

June 14, 2019 — Despite an ongoing federal trade war with China imposing tariffs on seafood exports and a looming bait crisis as herring quota were slashed in the Atlantic, Maine’s lobster fleet still managed to haul in crustacean cash. The fleet landed 120 million pounds of lobster worth $484 million in 2018, the fishery’s third-highest annual value ever.

Coming off a profitable year, lobstermen might normally be energized gearing up for the peak summer and fall — but the latest news in the industry’s labored relationship with the Atlantic’s endangered right whale population had them focused on the future of their livelihood instead of the upcoming summer.

In April, NOAA informed the industry that in order to reduce mortality and serious injury to right whales, the U.S. fishing industry would need to reduce risks to whales by 60 to 80 percent throughout New England.

To reach those goals, fishing stakeholders on the federal Atlantic Large Whale Take Reduction Team agreed to attempt a drastic measure: significantly reducing the number of vertical lines used by the region’s lobstermen. In Maine, where thousands of small-scale lobstermen catch the majority of the U.S. lobster haul, that means reducing vertical lines in the water by at least 50 percent.

Read the full story at National Fisherman

US wind energy industry is booming, but tariffs pose a threat

June 11, 2019 — In 2008, Jason Urichich was at a crossroads. He lost his home and landscaping business in Youngstown, Ohio, and decided it was time for a change. He decided to pursue a six-month program at Kalamazoo Valley Community College in Michigan for wind turbine repair.

“I was really interested in the small turbines, and at home I was trying to build one myself,” Urichich said. “I decided I didn’t know enough about it, and maybe I should go to school for it.”

A decade later that “maybe” turned into a career. He’s now a senior lead technician for Avangrid Renewables’ Locust Ridge Wind Farm in Shenandoah, Pennsylvania. The company employs some 300 technicians at its 60 commercial-scale wind facilities across the country. With five more under construction, Avangrid Renewables — which provides clean energy to major companies like Nike and Amazon’s AWS — is hiring dozens more nationwide, as demand continues to grow.

Read the full story at MSN

FAO launches anti-IUU campaign on Chinese social media

June 10, 2019 — The United Nations’ Food and Agriculture Organisation (FAO) is reaching out directly to the Chinese public in a bid to turn opinion against illegal fishing.

The FAO recently launched a social media campaign on Chinese social media in Mandarin, aimed at popular platforms including microblogging site Weibo. The campaign calls for locals to “fight against illegal, unreported, and unregulated fishing” and also calls for the protection of fisheries to guarantee food security around the world.

The campaign is a new effort to inform the Chinese public of the impact of illegal fishing on the high seas – some of it conducted by Chinese vessels. The FAO’s campaign is an interesting contrast with state media, which tends to portray the development of China’s distant-water fleet as a strategic national priority.

Read the full story at Seafood Source

‘Why not lobsters?’: Mainers plead with Trump to help an industry suffering from his trade war

June 7, 2019 — The mild-mannered independent senator from Maine, Angus King, got angry as he watched President Trump announce a $16 billion bailout two Thursdays ago to help farmers who are losing money because of the U.S. trade war with China.

A guy from Idaho wearing a “Make Potatoes Great Again” hat stood appreciatively at the president’s side. So did producers of corn, soybeans, wheat and pork. They’re all getting another round of handouts from the Department of Agriculture.

But many of King’s constituents have also been suffering, and they’re getting the shaft from their government. Lobster exports to China, which had been booming for years, have plummeted 84 percent since Beijing imposed retaliatory tariffs last July, according to new data from the Maine International Trade Center. The growing Chinese middle class is eating more lobsters from Canada, which now cost them a quarter to a third less but taste no different.

“We’ve got an industry that’s suffering exactly the same kind of negative effects,” King said in an interview. “Why not lobsters? There’s no logical distinction that I can see. … I’m sure a lot of people in Maine had the same reaction I did watching that press conference: What are we, chopped lobster?”

To be sure, chopped lobster from Maine sounds delicious – especially if it’s thinly coated in mayonnaise and stuffed into a hot dog bun that’s been lightly toasted in butter. But, in all seriousness, King’s frustration underscores the degree to which Trump and his political appointees in Washington have been picking winners and losers. The lobster industry has been one of the losers.

Read the full story at The Washington Post

How much U.S. Seafood is Imported?

June 4, 2019 — This week, the National Marine Sanctuary Foundation (NMSF) is convening Capitol Hill Ocean Week in Washington, D.C. Additionally, President Trump has declared the month of June “National Ocean Month” in recognition of the importance of the ocean to the economy, national security, and environment of the United States.

For the duration of Ocean Week, Saving Seafood will share materials related to the sustainable and economically vital U.S. commercial fishing and seafood industries, including information tied directly to events being organized as part of the NMSF conference.

Tuesday at 11:00 a.m. EDT, as part of Capitol Hill Ocean Week, there was a panel “Addressing the US Seafood Deficit.” The following article looks at a new study that concluded more of the seafood eaten in the U.S. is produced domestically than previously thought. It was published last week by Sustainable Fisheries UW:

The commonly quoted statistic that “90% of seafood consumed in the United States is imported” is out of date and should stop being cited. In this post, I explain the origins of the 90% myth, the scientific paper that produced the updated numbers, and the implications for U.S. trade and seafood markets.

Where did the 90% statistic come from and why is the new estimate more accurate?

A lot of seafood farmed or caught in the United States is sent overseas for processing, then sent back. Due to varying trade codes that get lost in the shuffle of globalization, these processed seafood products are often mistakenly recorded as ‘imported,’ despite being of U.S. origin.

For example, pollock, the fish used in McDonald’s Filet-o-fish sandwich, is caught throughout U.S. waters near Alaska. Once onboard, a significant portion is sent to China (the U.S.’s largest seafood trade partner) to be cleaned, gutted, and processed into filets. After processing in China, the fish is sent back to the U.S. and sold in restaurants and grocery stores. Pollock is not a Chinese fish, but the trade codes used when sending them back from China signify them as Chinese-origin and they are recorded as imported or foreign seafood.

Recording fish caught in the U.S. but processed in China has led to a significant overestimation of Americans’ so-called ‘seafood deficit’, or the ratio of foreign to domestic seafood consumption in the U.S.

Unfortunately, the misleading 90% deficit statistic has become commonplace, mostly due to coverage of Oceana’s seafood fraud campaign that stoked consumer anxiety about imported seafood. Distorted import data had been taken at face value for several years because no one had pieced together the conversion factors that account for processing and return export/import—until three scientists, Jessica Gephart, Halley Froehlich, and Trevor Branch, published their work in PNAS in May 2019.

Knowing the conversion factor for seafood products caught or farmed in the U.S. is the key to accurately estimating the amount of domestic seafood processed abroad. Froehlich describes a conversion factor as a number that can be used to back-calculate a processed seafood item to its pre-processed weight. Basically, when pollock are sent back to the U.S. after being processed in China, a conversion factor can be applied to estimate how much fish was originally sent and domestic seafood statistics can be corrected. When U.S. seafood is processed abroad but consumed in the U.S., it should be counted as domestic seafood consumed domestically.

Read the full story at Sustainable Fisheries UW

Alaska senator requests tariff exemption for state’s seafood

May 30, 2019 — An Alaska senator has written to the U.S. trade representative asking for Alaska fish species to be removed from a list of goods facing tariffs, a report said.

Republican Sen. Dan Sullivan sent a letter to U.S. Trade Representative Robert Lighthizer last week, The Kodiak Daily Mirror reported Tuesday.

As part of an ongoing trade dispute with China, earlier this month the Trump Administration announced an increase in tariffs from 10% to 25% on $200 billion worth of products and tariffs on an additional $300 billion worth of Chinese imports.

Sullivan said he asked Lighthizer to consider removing tariffs from seafood fished in Alaska including salmon, some species of rockfish and flatfish, Pollock, and Pacific cod.

The increase in tariffs is “creating tremendous uncertainty” for the industry and “is deeply troubling, because they continue to potentially negatively impact the very Americans the administration is trying to help,” Sullivan’s letter said.

The letter was also signed by Sen Lisa Murkowski and Rep. Don Young, who are both Republicans.

Read the full story at the Associated Press

Maine’s lobster exports to China plunge 84 percent due to trade war

May 16, 2019 — The latest data from the Maine International Trade Center indicates that the state’s lobster exports to China plunged dramatically in the wake of retaliatory tariffs placed on a wide range of U.S. goods.

The tariffs, implemented in July 2018, had an immediate affect on the state’s lobster industry. Prior to the tariffs, Maine had been on track to have a record-setting year, with USD 87 million (EUR 77.8 million) worth of lobster exported through June 2018, over double the USD 42 million (EUR 37.5 million) shipped through the same period in 2017.

Soon after tariffs were implemented, however, Maine’s exports to China nearly disappeared completely, and according to the latest data from the MITC exports have plunged nearly 84 percent since the tariffs were implemented.

The latest talk on the trade front doesn’t point to any improvement in those numbers any time soon. U.S. President Donald Trump threatened and then implemented further tariff increases on 10 May. In response, China fired back with its own increased tariffs, including additional tariffs on a number of seafood products.

Despite the threat of escalation, for many lobster exporters, the damage has already been done. Whether the tariffs increase or not, most of the business had already dried up.

“Retaliatory tariffs, or a move upward to 25 percent, doesn’t really change anything for U.S. exporters to mainland China,” Sheila Adams, the vice president of sales and marketing for Maine Coast Lobster, told SeafoodSource.

Read the full story at Seafood Source

West Coast swordfish landings hit slight dip in 2018

May 15, 2019 — West Coast swordfish stocks are on the upswing, but Homeland Security stipulations could mean fewer of them will be offloaded at docks in California.

According to a recent stock assessment report to the International Scientific Committee for Tuna and Tuna-Like Species in the North Pacific Ocean, in 2018, swordfish biomass increased from 51,000 metric tons in 1998 to an estimated 71,979 metric tons in 2016.

The U.S. fleet working the waters in the Western and North Central Pacific Ocean harvests but a fraction of what the fleet from Japan catches in a year. According to data from the stock assessment report, Japan’s average catch has hovered around 3,500 metric tons in recent years, and the U.S. harvest has come in at around half of the landings posted by fleets from China.

Read the full story at National Fisherman

Alaska seafood industry making plans for China tariff impact

May 13, 2019 — Alaska’s seafood industry is exploring strategies to reduce damage from the Trump administration’s trade dispute with China, officials said.

The Alaska Seafood Marketing Institute plans to explore how Alaska can enter additional markets to expand the state’s seafood brand, The Kodiak Daily Mirror reported Thursday.

The U.S. plans to raise tariffs on $200 billion in Chinese imports from 10% to 25% Friday.

China is the largest export market and re-processor of Alaska seafood, with about $989 million worth of sales to China in 2017 alone. That is more than 50% of the state’s seafood products, the institute said.

The institute is looking at “both traditional and nontraditional markets” for seafood globally, Executive Director Jeremy Woodrow said.

Read the full story from the Associated Press at KTOO