Saving Seafood

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

Micronesia’s longline yellowfin tuna fishery achieves MSC certification

October 15, 2018 — The longline yellowfin tuna fishery in the exclusive economic zone of the Federated States of Micronesia has achieved Marine Stewardship Council (MSC) certification.

Three Chinese companies pursued the certification and own and operate the vessels in the fishery: Liancheng Overseas Fishery (Shenzhen) Co. Ltd (SZLC), China Southern Fishery Shenzhen Co. Ltd (CSFC) and Liancheng Overseas Fishery (FSM) Co. Ltd. (FZLC). The fishery produced 745 metric tons of yellowfin tuna in 2016.

“We are extremely proud to achieve this very significant achievement and to be a part of the MSC program,” Overseas Fishery (FSM) President Samuel Chou said in a press release. “We believe that, along with our other MSC certifications, Liancheng now has more MSC longline certifications than any other tuna fleet, and we remain dedicated to continuing our efforts to upgrade all our fisheries currently in fishery improvement projects to MSC status.”

The Federated States of Micronesia is composed of more than 600 islands in the Western Pacific Ocean, and fish and seafood products represent 95 percent of the country’s total exports. Eugene Pangelinan, director of Micronesia’s National Oceanic Resource Management Authority, which manages the country’s marine resources, said the certification represents a step forward in maintaining the country’s fishing effort as sustainable.

“Achieving MSC certification demonstrates our commitment to a sustainable fishery,” Pangelinan said. “We congratulate Liancheng for their achievement and we hope that this certification will generate more interest in joining our efforts to develop our longline fishery for the benefit of all stakeholders.”

Worldwide, more than one million metric tons of tuna caught per year is MSC certified, representing around 25 percent of the global tuna catch, according to MSC Oceania Program Director Anne Gabriel.

Read the full story at Seafood Source

Fishmeal industry optimistic on upcoming Peruvian anchovy season

October 15, 2018 — Fishmeal and fish oil industry sources are optimistic about the upcoming Peruvian anchovy fishing season, which might start earlier than expected, in mid-November.

Peru’s ministry of production (Produce) is expected to announce the start of the fishing season around the end of October, taking into account the outcome of the maritime institute’s ongoing evaluation.

“Sea conditions are optimal and good reproduction has already started on the acoustic cruise that will end at the end of October,” said Humberto Speziani, IFFO board member and former president of IFFO and of the Peruvian National Fisheries Society (SNP).

Although the evaluation hasn’t yet been completed, it seems that biomass in the water is abundant, which could lead to a quota of 2 million-2.5m metric tons, according to sources. Despite rumors that the quota could be as high as 2.5m metric tons, 2m-2.2m metric tons is more in line with the historical average, one source pointed out.

“2m-2.5m metric tons is quite a reliable assumption of quota,” Jean-Francois Mittaine, an analyst with 30 years experience in the sector, told Undercurrent News, adding that fishmeal and fish oil prices were currently “quite stable”.

Super prime fishmeal is currently priced at around $1,630-1,650 per metric ton, while fish oil is at around $1,350/t, according to industry sources in Peru. Meanwhile, prices in China were slightly falling, driven by expectations of a good upcoming Peruvian season, according to sources.

Read the full story at Undercurrent News

9 countries and the EU protected the Arctic Ocean before the ice melts

October 12, 2018 —  It’s easy to miss the truly historic nature of the moment.

Last week, nine countries—the U.S., Canada, Russia, Norway, Greenland/Denmark, China, Japan, Iceland, South Korea, and the European Union (which includes 28 member states)—signed a treaty to hold off on commercial fishing in the high seas of the Arctic Ocean for at least 16 years while scientists study the potential impacts on wildlife in the far north. It was an extraordinary act of conservation—the rare case where major governments around the world proceeded with caution before racing into a new frontier to haul up sea life with boats and nets. They set aside 1.1 million square miles of ocean, an area larger than the Mediterranean Sea.

But to really grasp the significance of this milestone, consider why such a step was even possible, and what that says about our world today. For more than 100,000 years the central Arctic Ocean has been so thoroughly covered in ice that the very idea of fishing would have seemed ludicrous.

That remained true as recently as 20 years ago. But as human fossil-fuel emissions warmed the globe, the top of the world has melted faster than almost everywhere else. Now, in some years, up to 40 percent of the central Arctic Ocean—the area outside each surrounding nation’s 200-nautical-mile exclusive economic zone—is open water in summer. That hasn’t yet been enough to make fishing attractive. But it is enough that boats may be lured in soon.

So, for perhaps the first time in human history, the nations of the world set aside and protected fishing habitat that, for the moment, does not even yet exist. The foresight is certainly something to applaud. But it’s hard to escape the fact that the international accord is a tacit acknowledgment—including by the United States, which is moving to back out of the Paris climate accords—that we are headed, quite literally, into uncharted waters.

“The Arctic is in a transient state—it’s not stable,” Rafe Pomerance, a former State Department official who once worked on Arctic issues and now chairs a network of Arctic scientists from nongovernmental organizations and serves on the polar research board of the National Academy of Sciences, said last year.

Read the full story at National Geographic

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