Saving Seafood

Record year for China M&A sees little investment in seafood deals

April 1, 2019 — Seafood seems to be way down the list of sectors attracting investors in China, as agriculture and fisheries investments accounted for just 1 percent of the USD 377 billion (EUR 335.5 billion) invested in 1,866 deals monitored by leading international mergers and acquisitions watchers Mergermarket and Merrill DatasiteOne.

Industries and chemicals accounted for 19 percent of deals in value and 24 percent in volume, topping the list of categories for deals in 2018 in a new ranking compiled by the two financial firms. The technology, media, and telecommunications [TMT] category accounted for 19 percent of value and 10 percent of volume, followed by financial services, with 13 percent and 7 percent, respectively.

Despite the U.S.-China trade war, foreign investors accounted for a record USD 49.1 billion (EUR 43.7 billion) – up 51 percent on 2017 – or 13 percent of the deals done, with nearly half that cash coming from the United States. Foreign investors appeared to be cheered by China’s pledge to lower restrictions on foreign investment into various sectors, a pledge necessitated in part by the gradual slowdown of China’s economic growth.

Read the full story at Seafood Source

China accuses Vietnam of illegal fishing, dismisses compensation claim

March 29, 2019 — China has dismissed a request from the Vietnamese government for USD 130,000 (EUR 116,000) compensation for the sinking of a Vietnamese trawler in disputed waters of the South China Sea, claiming instead that the vessel was guilty of “illegal fishing” and was sunk before a Chinese vessel reached the scene.

The Vietnam Fisheries Association, a state sponsored body, wants USD 130,000 paid to the owners of a trawler sunk at the weekend, but in a regular media briefing this week, Chinese Foreign Ministry spokesman Yu Shuang described Vietnam’s claims as “fabricated.”

A note from the Vietnamese Foreign Ministry describes the ramming of a trawler by a “Chinese vessel numbered 44101” off the Hoang Sa Archipelago, commonly known as the Paracel Islands. Water cannon was used by the Chinese, who drove the vessel onto a reef and sunk it, with five fishermen on board rescued by another Vietnamese fishing boat, according to the Vietnamese Foreign Ministry.

While China is Vietnam’s top trading partner, relations between China and its southern neighbor continue to be battered by China’s heavy-handed enforcement of claims of ownership over a large swathe of the South China Sea. Relations have long been testy since China seized the Paracel Islands from South Vietnam by force in 1974, and since it recently built a military base there that includes a runway capable of handling military aircraft.

Read the full story at Seafood Source

China faces big decision on WTO reform deal

March 28, 2019 — The pressure is on this month as negotiators seek to find common ground and to advance the cause of a World Trade Organization agreement on fishery subsidies by the end of the year.

The WTO Director-General Roberto Azevêdo has said subsidies by member states for fuel have contributed to overfishing, and illegal and unregulated fishing. He called it “one of the important issues of our time.”

An estimated USD 20 billion (EUR 17.8 billion) is paid out annually to subsidize the cost of fuel that allows vessels to operate thousands of miles from home. The bulk of the subsidies are paid out by a handful of nations, and around 85 percent of the figure goes to large-scale industrial fleets, rather than smaller near-shore artisanal fisheries.

The pressure was ramped up in 2015 when all United Nations member states agreed Sustainable Development Goal 14.6 to eliminate or prohibit harmful fishery subsidies by 2020. The goal was a priority for developing countries depending on the sea for protein.

There are some reasons for optimism – the WTO director general told a WTO plenary in February that progress had been made in the negotiations among the technocrats. But he said now is time for high-level political commitment to get the deal done.

Read the full story at Seafood Source

Study maps where tunas, sharks and fishing ships meet

March 26, 2019 — Overfishing is rapidly pushing many of the world’s sharks and tunas toward extinction. The world’s fastest known shark, the shortfin mako, for example, was recently uplisted to endangered on the IUCN Red List, its decline mostly attributed to overfishing.

But researchers are only beginning to figure out where and when people fish them the most. Now, a new study has some answers.

By analyzing the trails of more than 900 fishing vessels and more than 800 sharks and tunas in the northeast Pacific, researchers have identified regions where the two tend to overlap. This information, researchers say, can be used to manage fisheries, especially in the high seas, the swaths of ocean that lie beyond the jurisdiction of individual countries.

“These fish [sharks and tunas] may travel thousands of miles every year, crossing international boundaries and management jurisdictions,” said Timothy White, lead author of the study and a graduate student in biology at Stanford University, California. “In order to sustainably manage them, we need to know where they migrate and where people fish them, but this info is surprisingly difficult to gather for sharks and tunas of the open ocean.”

Read the full story at Mongabay

Baby Eel Fishermen Hope for Year Free of Poaching, Shutdowns

March 25, 2019 — Maine fishermen began several weeks of taking to rivers and streams to fish for baby eels Friday, which marked the start of a high-stakes season harvesters hope isn’t interrupted by poaching concerns as it was a year ago.

Fishermen in Maine use nets to harvest baby eels, called elvers, to feed demand from Asian aquaculture companies, who use them as seed stock.

The tiny eels are the source of one of the most valuable fisheries in the country on a per-pound basis, and they were worth a record of more than $2,300 per pound last year. Maine’s home to the only significant elver fishery in the country.

Last year’s season was shut down two weeks early by state regulators after investigators found that illegal sales had caused Maine to blow past its quota for the eels. New controls on the fishery are expected to clamp down on clandestine sales, and the use of a swipe card system to record transactions remains in effect.

Darrell Young, co-director of the Maine Elver Fishermen Association, said the health of the fishery also depends on members of the industry “behaving themselves” this time around.

“Buyers wanted to find their way around the swipe cards. They just made it harder for everybody else,” Young said.

Read the full story from the Associated Press at The New York Times

Trump says tariffs will continue on Chinese imports

March 21, 2019 — U.S. President Donald Trump announced on Wednesday, 20 March that U.S. tariffs on imported products from China would continue, even as the two countries make strides toward resolving their trade issues.

Earlier this month, media reports indicated Chinese and American officials were close to a deal that would repeal the levies in exchange for China agreeing to purchase additional products. However, Trump’s comments to reporters outside the White House seemed to contradict, or at least dampen, those expectations.

“We’re talking about leaving them (on) for a substantial period of time,” Trump said. “We have to make sure that if we do the deal with China that China lives by the deal. Because they’ve had a lot of problems living by certain deals.”

The current trade war has hit the seafood industry particularly hard on both sides as China introduced a 25 percent tariff on American seafood imports last year, and the U.S. countered by hiking its tariffs on Chinese seafood imports by 10 percent.

The seafood industry has just been one of many that have suffered over the past year as a result of the tariffs. According to a report from four college economists published this month by the National Bureau for Economic Research, imports from targeted counties, not just China, dropped by nearly 32 percent, while American exports slumped by 11 percent. The end result being a USD 7.8 billion (EUR 6.9 billion) loss.

Read the full story at Seafood Source

Despite tariff impacts, Maine lobster market remains robust

March 15, 2019 — Just over eight months since the start of a trade war between China and the United States, the Maine lobster industry is still coping with the affects of a 25 percent tariff on their goods.

Maine had been on track to more than double the value of exports to China, with USD 87 million (EUR 76.9 million) worth of the crustacean being sold through June 2018, compared to roughly half that value through the same period in 2017. However, once China implemented a 25 percent tariff on a wide list of goods from the U.S., shipments of live lobster from Maine to China plummeted to the point that they were almost nonexistent compared to the start of the year – and things haven’t changed much since then.

“The tariff story has dominated the media, and lobster has been the case study,” Annie Tselikis, executive director of the Maine Lobster Dealers’ Association, told SeafoodSource. “We’ve been vocal about it because it really has impacted the business.”

The market, which had seen explosive growth in the past few years, suddenly dried up overnight, for reasons completely out of the hands of Maine companies shipping live lobsters to China.

Even with the challenges, however, companies that focused on live lobster shipments have managed to make up ground by re-focusing efforts in other areas.

Read the full story at Seafood Source

Bigeye tuna fishery gains MSC certification for first time

March 7, 2019 — A Chinese-operated longline yellowfin and bigeye tuna fishery, located in the Federated States of Micronesia, has become the first bigeye tuna fishery to achieve Marine Stewardship Council certification.

The fishery – owned by Liancheng Overseas Fishery (Shenzhen) Co. Ltd. (SZLC), China Southern Fishery ShenZhen Co. Ltd. (CSFC), and Liancheng Overseas Fishery (FSM) Co. Ltd. (FZLC) – gained the certification after an independent assessment. The fishery earlier earned certification for yellowfin tuna in October 2018.

“We are extremely proud to have the first bigeye tuna fishery to be certified to the MSC Standard,” Sam Chou, president of SZLC, said. “It is a distinct honor. Liancheng is the largest Chinese fleet to achieve MSC certification. We are dedicated to achieving certification for all our fisheries.”

The latest stock assessment for bigeye tuna in the area shows stocks are healthy, and being fished at a sustainable rate. According to the MSC, the certification is conditional upon the adoption of harvest strategies including harvest control rules that include all the member states of the Western Central Pacific Fisheries Commission by 2021.

“We congratulate Liancheng and their partners for becoming the first fishery to be eligible to sell MSC certified bigeye tuna. They are demonstrating true leadership in sustainable fishing,” Bill Holden, senior fisheries outreach manager for the MSC in Oceania and Southeast Asia, said. “To maintain their certification, Liancheng will need to work with other fishing organizations and the WCPFC to agree to important management measures to safeguard bigeye tuna stocks. As a result, this certification could influence the sustainability of bigeye fishing across the entire WCPO.”

Read the full story at Seafood Source

Chinese Hackers Target Universities in Pursuit of Maritime Military Secrets

March 5, 2019 — Chinese hackers have targeted more than two dozen universities in the U.S. and around the globe as part of an elaborate scheme to steal research about maritime technology being developed for military use, according to cybersecurity experts and current and former U.S. officials.

The University of Hawaii, the University of Washington and Massachusetts Institute of Technology are among at least 27 universities in the U.S., Canada and Southeast Asia that Beijing has targeted, according to iDefense, a cybersecurity intelligence unit of Accenture Security.

The research, to be published this week, is the latest indication that Chinese cyberattacks to steal U.S. military and economic secrets are on the rise. The findings, reviewed by The Wall Street Journal, name a substantial list of university targets for the first time, reflecting the breadth and nature of the ongoing cyber campaign that iDefense said dates to at least April 2017.

Chinese officials didn’t immediately respond to a request for comment, but have denied that they engage in cyberattacks.

Read the full story at the Wall Street Journal

At Maine Fishermen’s Forum, Sen. Angus King lauds fishing industry

March 4, 2019 — U.S. Senator Angus King commended the work of the men and women in Maine’s fishing industry at the Maine Fisherman’s Forum in Rockport today, listening first-hand to the priorities and concerns of Maine fishermen from around the state.

“Here in Maine, generations of families have made their living at sea, and they have helped shape the traditions, culture, and economy of our state,” King said, in a news release. “The Maine Fishermen’s Forum is a wonderful way to celebrate our rich fishing heritage and to come together to put Maine’s collective expertise in the industry to work. With the increased communication and mutual understanding we solidified today, the Maine fishing industry is better positioned to further it’s important role for our state. It was an honor to speak with so many Maine men and women today whose hard work drives the economy and helps support families and communities up and down the coast.”

This week, Senator King and the rest of the Maine delegation wrote to U.S. Trade Representative Robert E. Lighthizer, calling on him to make the lobster industry a priority in the ongoing trade negotiations with the Chinese government.

Read the full story at the Penobscot Bay Pilot