Saving Seafood

Could Oysters Ease Trade Tensions With U.S.? European Leaders Hope So

November 14, 2018 — BRUSSELS — The United States and Europe may one day put aside their differences on trade, eliminate tariffs on industrial goods and work together to rein in their common economic adversary, China.

But for Cecilia Malmstrom, the European trade commissioner, the most urgent task is to produce quick results, however humble, that will keep an impatient President Trump from imposing even more drastic penalties on European imports than the tariffs his administration has already levied.

So when Ms. Malmstrom meets in Washington on Wednesday with her American counterpart, Robert E. Lighthizer, she will count it as a substantial victory if she can lower the barriers hindering one bit of trans-Atlantic commerce: oysters.

The United States and Europe have long banned the importing of each other’s shellfish. But a deal to ease trade on that front has been in the works for several years and could be dressed up by both sides as a success that helps smooth relations with the White House.

Shellfish may seem like an odd focus for negotiators, but exports from the United States are worth about $1.7 billion a year. And international trade in clams, mussels, oysters and scallops — all of which are shipped live by air — is growing.

The emphasis on mollusks also illustrates a strategy that officials in Brussels hope will prevent Mr. Trump from acting on a threat to impose steep tariffs on European cars, a potentially devastating blow to the European economy.

Read the full story at The New York Times

 

Even Lobsters Can’t Escape Trump’s Trade War

November 7, 2018 — In his cargo shorts and T-shirt, Mark Barlow looked anything but an international trade warrior. Yet a few weeks ago, when he slid open the door to his low-slung warehouse in a scrappy industrial lot to reveal concrete tanks filled with 375,000 gallons of 40-degree water and a fortune in live Maine lobsters, he might as well have been leading a battlefield tour.

Since the 1990s, Barlow has built his company, Island Seafood, into a $50 million-a-year business by shipping live lobsters around the world. He exported one out of every five to China until recently. A lobster plucked from a trap in Maine’s frigid waters—home to North America’s richest fishery—could surface on a dinner plate in Beijing two days later. The first months of 2018 were the best start in Island Seafood’s history, says Barlow, who this year expected to ship a million pounds of lobster to Shanghai, Guangzhou, and other Chinese cities, where he’s built relationships for a decade. Then, as Barlow, a 57-year-old bear of a man who speaks like someone who’s spent years negotiating on the docks, puts it: “The orangutan in Washington woke up from a nap and decided to put tariffs on China,” and “the Chinese stopped buying immediately.”

If you want to understand the modern global economy, the implications of climate change, and the unintended consequences of President Trump’s trade wars, then you ought to “consider the lobster.” The writer David Foster Wallace’s 2004 essay of that name riffed on the history (“Up until sometime in the 1800s … lobster was literally low-class food, eaten only by the poor and institutionalized”) and morality (“It’s not just that lobsters get boiled alive, it’s that you do it yourself”) of our love affair with Homarus americanus. To consider the lobster now, almost 15 years later, is to study crustacean economics just as U.S.-China trade tensions reach a roiling boil.

As Trump has rewritten America’s economic relationships, some of the country’s most prized exports—Kentucky bourbon, Harley-Davidson motorcycles, Midwestern soybeans—have become retaliatory targets for China and the European Union. For its part, Beijing began imposing a 25 percent tariff on a long list of imports from the U.S., including live lobsters, on July 6. “The second this happened, I said to my sales team, ‘China’s dead,’ ” Barlow says. Correspondence with his Chinese customers confirmed his hunch. “I don’t think there is [a] way to import U.S. lobster,” one buyer texted.

Read the full story at Bloomberg Businessweek

Industry launch large-scale squid project at China Fisheries Expo

November 7, 2018 — The following was released by Ocean Outcomes:

Four leading seafood buyers, Chinese seafood industry groups, retailers, fishermen, and sustainable seafood enterprises came together today at the China Fisheries and Seafood Expo to celebrate the much anticipated launch of the East China Sea and Yellow Sea Squid FIP.

The fisheries improvement project—or FIP for short—is a precompetitive project aimed to improve the management and fishing practices of Chinese trawl, purse seine, and gillnet vessels targeting Japanese flying squid. JFS are one of the most commercially lucrative species of squid, and in the Chinese side of East China Sea and Yellow Sea alone, annual production can approach 30,000 metric tons.

“Squids are one of the most loved seafoods, but compared with many species, squid sustainability efforts are lagging,” said Songlin Wang who is leading the project. “Given squid account for about 5% of global fishery landings, it’s encouraging to see that change.”

In the East China and Yellow Seas, China has important domestic fisheries which target migratory JFS stocks. These supply both a booming domestic market and are exported to the Europe Union, United Kingdom, United States, Japan, and South Korea, among many others, by global seafood companies such as those involved in the project.

However, JFS fishing practices and management need improvement in a number of ways to ensure a continued supply of squid products. For example, China lacks a JFS-specific harvest strategy outside of a summer fishing moratorium banning the use of motorized fishing vessels, and it’s difficult to verify the exact catch locations for some squid products from the region.

“Around a third to half of all squid passes through a Chinese seafood supply chain, whether caught, processed, traded, or consumed,” said Dr. He Cui, who heads CAPPMA, a Chinese national seafood industry group with thousands of members. “Given CAPPMA’s commitment to both domestic and global seafood sustainability, it’s in our interest to ensure a future where all squid stocks are healthy. This project will help us explore a path forward.”

The FIP will work to address areas of concern through implementation of a five year improvement work plan designed, in part, to establish science-based stock assessments and bycatch monitoring protocols, harvest rules fit to JFS 1-year lifecycles, and traceability systems to verify and track locations of harvest.

Since its inception, the FIP has grown beyond founding members Ocean Outcomes, Sea Farms, and PanaPesca to include support from a number of industry stakeholders, including, Quirch Foods, Seachill, China Aquatic Products Processing and Marketing Alliance (CAPPMA), Marks & Spencer, Tesco, Sainsbury’s, and local Chinese suppliers Genho, IG and the Zhejiang Industry Group.

The success and growth of the project were due, in part, to the collaborative forum of the Global Squid Supply Chain Roundtable, facilitated by Sustainable Fisheries Partnership, which heavily featured the East China Sea and Yellow Sea Squid FIP in recent meetings at the North America Seafood Expo in Boston, MA.

“We couldn’t have envisioned the enthusiasm and support for this work when this project began three years ago,” said Dick Jones, who has been working to improve seafood industry practices for decades. “Precompetitive industry collaboration is key to ensuring durable and positive change. This project demonstrates that message is catching on.”

US refuses entry of invasive Chinese crab

November 2, 2018 — The United States government refused entry of hundreds of pounds of invasive Chinese mitten crabs in Cincinnati, Ohio, U.S.A., earlier this month.

While conducting a routine inspection of incoming Chinese freight at a local express consignment facility, U.S. Customs and Border Protection (CBP) agricultural specialists noted x-ray anomalies in 16 shipments, which were labeled as clothing.

They discovered thousands of live Chinese mitten crabs, destined for residences in New York.

Read the full article at Seafood Source

National Fisherman: Tax to Grind

November 2, 2018 — Everyone is talking tariffs. First it was anticipation, and now we’re in reality check, keeping an eye on the long-term consequences.

My first instinct with the tariffs was to gather information and watch what happens. There’s no denying our federal government is in fickle hands. The tariffs could have been canceled as easily and swiftly as they were declared. So wait and see seemed the best course of action.

Of course, I’m not a fisherman, processor or retailer. Wait and see is a luxury for me. And now it’s also a luxury for the purveyors of many itemized seafood products that have been granted dispensation from the tariffs.

As the deadline inched closer this summer, fisheries with decent lobbying power began to appeal to U.S. Trade Representative Robert Lighthizer to get a pass for their product — meaning the United States would not add a tariff to those products being sold into Chinese markets (most of which are already taxed as exports). In the case of U.S. seafood products being processed in China and reimported to the U.S. market, the government also granted a waiver on Chinese import taxes for some products.

The result was good for many stakeholders — they got the pass they need to stay competitive. But fisheries that don’t have access to Capitol Hill are left out there alone to bear the brunt of the tariffs on their own. They are now the guinea pigs for the whole industry.

Read the full editorial at National Fisherman

 

ALASKA: Alaska gubernatorial hopefuls Dunleavy, Begich square off in fish survey

November 1, 2018 — If Republican candidate Mike Dunleavy wins his bid to become the next governor of Alaska on Tuesday, look for an all-out effort by the state to expand its seafood export markets but not a direct challenge of president Donald Trump’s tough trade policies.

“A governor of one state clearly doesn’t set trade policy for the nation,” he said in one of several responses to a survey on commercial fishing organized by the Kodiak Chamber of Commerce.

Democratic candidate Mark Begich, meanwhile, would bring together a bipartisan group of governors from other states to pressure the federal government into changing course.

“As governor, I won’t sit on the sidelines when national policies hurt Alaska, like Trump’s trade war with China,” he said.

Read the full story at Undercurrent News

Alaska seafood leaders talk tariffs, competition from Russia and Canada

October 31, 2018 — Mark Begich, Alaska’s Democratic gubernatorial candidate, made a cameo at the Alaska Seafood Marketing Institute’s All Hands on Deck meeting in Anchorage this week.

“If you want to be successful, you’ve got to put money behind it and market the product,” Begich said in support of the ASMI mission during opening remarks on Monday, Oct. 29.

Despite the too-close-to-call governor’s race, tariffs are the leading topic at the meeting this week.

Alaska’s seafood industry enjoyed a record export total in 2017 of more than 1 billion pounds of seafood with expectations that the trend would continue. However, the complex matrix of Alaska seafood’s global markets and international processing was further complicated by the implementation of several new layers of export and import tariffs on varying products.

Alaska’s proximity to China has long allowed a significant portion of the head and gut fleets’ harvest to be exported to China for final processing and reimportation to the domestic market.

Read the full story at National Fisherman

 

Higher U.S./China tariffs could be ‘game changer,’ fishing industry fears

October 24, 2018 — It’s been a month since the Trump administration activated 10 percent tariffs on another $200 billion in Chinese imports and that move has already affected the fishing industry from scallopers to lobstermen, especially Eastern Fisheries located along the New Bedford waterfront.

With the tariffs set to increase to 25 percent at the start of 2019, that could cause catastrophic effects throughout large fishing corporations, economists and companies told The Standard-Times.

“That’s a game changer,” Executive Vice President of Eastern Fisheries Joseph Furtado said. “I think we all feel that the 10 percent is more of a paper cut than it is anything else at this point. And we can work through it.

″…We don’t think the 10 percent is the end of the world, but the 25 percent, that is certainly a dynamic game changer and there’s a lot of variability in how that could all reposition itself.”

Generally, tariffs range from 5 percent to 8 percent, UMass Dartmouth economy professor Randy Hall said.

“There are very few industries that can absorb a 25 percent increase of cost,” Hall said.

Eastern Fisheries operates the largest scallop fleet in the industry and has facilities in the U.S., China, Europe and Japan.

Due to its size and international scale, it’s likely to be the only New Bedford company that’s affected by the tariffs, according to economists and Eastern Fisheries.

Prior to Sept. 24, Eastern would use its facilities in China to process a portion of its overall catch. It would then import the catch to other countries but also back into the United States without a tariff or tax.

Read the full story at the New Bedford Standard-Times

Republican leading Alaska gubernatorial race a mystery on commercial fishing issues

October 19, 2018 — Every major candidate in every Alaska gubernatorial, US Senate or House election since 1991 — and in quite a few state legislative races, too — has met on the stage in Kodiak to debate issues related to the state’s commercial fishing industry.

They never miss it, such is the importance of fishing to the state of Alaska.

But Mike Dunleavy won’t be at the Gerald C. Wilson Auditorium this Monday to square off against his two main political combatants in the latest race for governor, independent incumbent Bill Walker and Democratic candidate Mark Begich.

Instead, the 57-year-old Republican, former state senator and educational consultant — who has been leading the 2018 race for governor of the state by a wide margin in all recent polls — will be “visiting with Alaskans in Barrow,” a town more than 1,200 miles away in the northern part of the state, his staff reportedly informed the debate organizers this week.

The decision serves to further confound the fishing captains, seafood processors and many laborers in Alaska’s massive commercial fishing industry just three weeks before they’ll join other Alaskans in voting booths. They’re struggling to learn more about what their next likely governor might do on such issues of consequence as the proposed Pebble Mine and trade with China.

Read the full story at Undercurrent News

ALASKA: Bristol Bay king crab fishery set to open with a record-low quota

October 16, 2018 — Bering Sea commercial crabbing starts this week, with the smallest quota for Bristol Bay red king crab in more than 30 years at 4.3 million pounds, a 35 percent decrease from last year’s 6.6 million pounds.

The last time there was such a low number was in 1985, at 4.1 million pounds, according to Alaska Department of Fish and Game biologist Ethan Nichols in Unalaska.

Nichols expects fewer boats fishing this year, with fishermen combining quotas onto one boat that otherwise would have been fished by two vessels.

At least there is a red king crab season, despite earlier fears of a complete cancellation, according to Unalaska Mayor Frank Kelty.

“We wish it was more, but we’re happy there’s a king crab season,” said Jake Jacobsen, executive director of the Seattle-based Intercooperative Exchange, which negotiates prices for the crab fishing fleet.

The season will open Monday with red king crab, followed by snow crab toward the end of the year.

On a brighter note, the snow crab quota of 27.6 million pounds is up 45 percent from last year’s 19 million, according to Fish and Game.

And there will be a Tanner crab fishery in the western district, which wouldn’t have happened two years ago.

Read the full story at the Anchorage Daily News