Saving Seafood

For small boat fishermen in Alaska, the business can be boom or bust

August 23, 2018 — The Alaskan seafood industry is one of the many industries with its eyes on the back-and-forth between the U.S. and China. Seafood was one of the U.S. exports to get slapped with a retaliatory tariff from China, and that’s an issue for Alaska seafood producers because a lot of their seafood exports are sent there.

But in this installment of our on-going series My Economy, we’re looking beyond the news headlines to see how people are actually doing. And there are a variety of things that might be on an Alaskan fisherman’s mind right now, as fisherman Hannah Heimbuch describes from Homer, Alaska.

My name is Hannah Heimbuch. I’m a commercial fisherman from Homer, Alaska. My brother and I are drift gillnetters. We fish for sockeye salmon. We grew up deckhanding with our dad on his boat in a couple different areas in Alaska. And two years ago we decided to invest in our own operation. You know we’re in our early 30s and kind of looked at each other and were like, well, I guess we’re in this together.

Probably our biggest annual investment is our boat payment. That runs about $11,000. We also have permit payments, that’s another $5,000. And then after that you have the basic maintenance. You know we spend a few thousand dollars upgrading. So we have a boat that’s in tip top shape, but we needed to make more than $20,000 to breakeven this year. We did not come close to that.

Read the full story at the Marketplace

NFI testifies against proposed tariffs against China

August 23, 2018 — The National Fisheries Institute testified before the United States Trade Representative on 22 August in strong opposition to new tariffs proposed by the Trump Administration on Chinese goods.

The tariffs, which could be either 10 or 25 percent, would impact USD 200 billion (EUR 172 billion) in goods sourced annually from China. Robert DeHaan, representing NFI, said the tariffs would harm the seafood industry in the United States.

“USTR’s proposal will punish American fishermen and the communities that rely on them by making their products more expensive for American families to eat,” said DeHaan. “Of the [USD 2.7 billion (EUR 2.32 billion)] in annual seafood shipments subject to this proposal, an estimated [USD 950 million (EUR 819 million)] – more than a third – comes from an American fisherman – primarily an Alaska fisherman – harvesting in U.S. waters in a U.S.-flag vessel using a U.S. crew.”

The Trump Administration’s stated goal for the tariffs – making China respect its obligations regarding intellectual property rights – don’t line up with tariffs on seafood, added DeHaan.

“How punishing these harvesters – and these businesses for ‘Buying American’ – will convince China to respect its obligations regarding intellectual property rights and technology transfers is difficult to fathom,” he said. “Cutting fish is not an intellectual property secret.”

Read the full story at Seafood Source

FLORIDA: ‘It’s Going To Be A Rough Year’: Key Largo Fishermen Feel Effects Of Chinese Lobster Tariffs

August 22, 2018 — At 6 a.m. on a recent Thursday morning, Ernie Piton and his son dragged wooden lobster traps across their dock in Key Largo. They stabbed sharp wires through ripe, glossy fish heads, preparing for the grind of baiting and checking Florida spiny lobster traps. As the fishermen turned the key, rumbling their boat to life, they hoped for a good haul.

Lobster fishing is grueling work, with long hours spent reeling in nearly 300 lobster traps each day. But it’s been the family’s livelihood for 35 years.

Piton sells lobster and stone crab through his family-run operation, Risky Business II. His 21-year-old son, Travis, also depends on this lobster boat for his full-time job.

For the last decade, the Pitons have sold almost exclusively to the Chinese market. During three of those years, they’ve sold lobster through a third-party buyer that works out of Miami, Ocean Dragon Seafood. But since June, the Trump Administration’s trade war with China has threatened their livelihood and that of many Florida fishermen. That comes as many are still recovering from losses during the 2017 hurricane season.

Read the full story at WJCT

Alaska seafood organization seeks comments on US tariffs

August 22, 2018 — An Alaska seafood organization is encouraging industry members to comment on the proposed U.S. tariffs on products imported from China that could negatively affect the state’s seafood industry.

The Alaska Seafood Marketing Institute is asking members to comment before the September deadline on the proposed increases to tariffs that include seafood products from China, the Peninsula Clarion reported Sunday.

About $2.7 billion in U.S. seafood is processed in China and sent back to the U.S. annually with most of that coming from Alaska, according to the organization that promotes the state’s seafood industry.

In response to U.S. tariffs, China levied a 25 percent tariff on U.S. seafood imported for consumption, including Pacific salmon, cod, Alaska Pollock, and other commonly exported products. The tariffs went into effect last month, but China excluded seafood shipped into the country that is intended for re-export after processing.

The Office of the U.S. Trade Representative proposed increasing tariffs last month from 10 percent to 25 percent on Chinese products, including seafood. The U.S. seafood processed in China could be hit with tariffs upon re-entering the country.

Read the full story from the Associated Press at the Daily-News Miner

U.S., China Plot Road Map to Resolve Trade Dispute by November

August 20, 2018 — Chinese and U.S. negotiators are mapping out talks to try to end their trade standoff ahead of planned meetings between President Trump and Chinese leader Xi Jinping at multilateral summits in November, said officials in both nations.

The planning represents an effort on both sides to keep a deepening trade dispute—which already has involved tariffs on billions of dollars of goods and could target hundreds of billions of dollars more—from torpedoing the U.S.-China relationship and shaking global markets.

Scheduled midlevel talks in Washington next week, which both sides announced on Thursday, will pave the way for November. A nine-member delegation from Beijing, led by Vice Commerce Minister Wang Shouwen, will meet with U.S. officials led by the Treasury undersecretary, David Malpass, on Aug. 22-23.

The negotiations are aimed at finding a way for both sides to address the trade disputes, the officials said, and could lead to more rounds of talks.

The talks represent a clear move by Beijing to get relations with Washington back on track that were cordial early in the Trump presidency and involved coordination to rein in North Korea. Those relations have soured, especially after Mr. Trump’s initial tariffs on Chinese imports, which he said were designed to punish Beijing for alleged intellectual-property violations and technology theft. The resulting tit-for-tat of trade threats and retaliation has hit China’s currency and stock markets.

Read the full story at The Wall Street Journal

ASMI to comment on impact of proposed tariffs

August 17, 2018 — Board members of the Alaska Seafood Marketing Institute are keeping watch on the trade war between the U.S. and China and plan to submit formal comments in advance of the Sept. 6 deadline, says Jeremy Woodrow, ASMI’s communications director.

“We are going into this with the assumption that this is an opportunity to educate the U.S. trade representative on the importance of Alaska fisheries to the U.S. economy and Alaska workers,”

Woodrow said. “While we understand the reasons behind the proposal, the intended impact doesn’t achieve the goal. Instead of having consequences to Chinese consumers, this negatively impacts us consumers and products and U.S. fishermen and companies,” he said.

Woodrow said ASMI’s understanding at this time is that seafood products going from Alaska to China would be subject to these proposed tariffs only if consumed in the Chinese domestic market. If that seafood is being reprocessed to ship elsewhere, it would not be subject to tariff, but if it is being shipped back to the U.S., there is potential that it will be subject to the tariffs because of the proposal by Robert Lighthizer, the U.S. trade representative.

The proposed U.S. tariffs came under consideration in the wake of China’s decision to implement an additional 25 percent tariff for exported products destined for China’s domestic market. The proposed tariffs could impact the bottom line for Alaska companies that sell black cod, rockfish, flatfish and salmon roe into Chinese domestic markets.

Read the full story at The Cordoba Times

In China, Salmon is Salmon, Even if It’s Trout

August 17, 2018 — For years, fish sellers in China have labeled something other than salmon as salmon, according to a local media report that outraged sushi lovers across the country.

Now, Chinese fish authorities have responded: That’s perfectly O.K. with them.

Chinese regulators said this week that rainbow trout can be sold as salmon, according to new standards set by a government-affiliated fish association and 13 commercial fisheries. To justify the change in definition, officials cited biology: Salmon and rainbow trout belong to the same fishy family. They also required sellers to note the exact type of fish elsewhere on the label.

Still, the fuzzy definition touched a nerve in a country with a long history of food labeling issues and a vast population of increasingly sophisticated consumers. Thousands took to the internet to blast regulators for lowering food standards instead of fixing the issue. Some declared they would never eat salmon again.

Even patrons at a sushi restaurant said that they could no longer trust salmon enough to eat it raw.

Read the full story at The New York Times

Will Trade Tariffs Cause The American Fish Industry To Flop?

August 16, 2018 — An estimated $900 million worth of American-caught or -farmed seafood — from fish sticks to cod fillets — may get a lot more expensive thanks to the U.S.’s current trade war with China.

How? Well, last month the Trump administration proposed a 10% duty on a wide range of imports from China, including many varieties of fish. Trade representatives will finalize the tariffs, which could increase to 25%, in September. While these tariffs are designed to punish China for unfair trade practices, when it comes to seafood, it’s the U.S. that may be on the hook.

Here’s a surprising fact: In many cases seafood labeled as “from China” is actually American. That $900 million of seafood I mentioned earlier? It’s seafood that is first caught or raised in the U.S., sent to China for processing, and then subsequently imported back into the U.S. by companies that sell it to American consumers.

Why would pink salmon or squid that’s caught in U.S. waters be labeled a product of China? Well, thanks to our confusing Country of Origin Labeling law (COOL for short), American products that undergo a “substantial transformation” abroad — such as calamari being breaded or pink salmon being filleted and canned — must then be labeled as coming from the country where they were processed. For example, in some cases a package of frozen “Alaskan Cod” fillets may say “product of China” on the back. The fish was caught in Alaska, but it was cleaned, filleted, and frozen in China. (If you’re interested in more, the USDA has a good blog post on the subject.)

Read the full story at Forbes

Maine lobster industry feels impact of China’s tariffs

August 16, 2018 — The ongoing trade war kicked off by U.S. President Donald Trump is beginning to hurt the lobster industry in Maine, U.S.A.

In response to a wide swath of tariffs on Chinese goods instituted by the U.S., China created a set of tariffs of its own that target U.S. seafood and have already hurt some members of the lobster industry who relied on shipping their product to China. Once a niche export market of just USD 4 million (EUR 3.5 million) in 2010, Maine exported USD 132 million (EUR 116.3 million) worth of the crustacean in 2017, according to the Maine International Trade Center.

Of that number, exports to China have been steadily increasing. Maine exported USD 42 million (EUR 37 million) worth of raw and frozen lobster to the country through June in 2017. This year, that number had more than doubled to USD 87 million (EUR 76.6 million) over the same period.

Those numbers have made China the second-largest export market, equal to the entire European Union. As the market grew, some exporters began to increasingly plan on shipping lobsters to China. The new tariffs, however, have made thrown those plans into disarray.

Stephanie Nadeau of The Lobster Co. in Arundel, Maine, has become the “poster child of Chinese tariffs,” she said.

Nadeau has been featured in a wide number of news reports, from the local Portland Press Herald to stories on CBS. Her company relied on Chinese exports, but now is struggling to find a way to make up the lost sales.

Read the full story at Seafood Source

US fishmeal producers left exposed by China’s 25% tariff blow

August 16, 2018 — US fishmeal producers — including the US’ largest fishmeal producer Omega Protein — are “certainly in some trouble” after China announced last week it would impose 25% tariffs on imports from the country, said a fishmeal industry analyst.

Jean-Francois Mittaine, an analyst with 30 years’ experience in the sector, told Undercurrent News Omega Protein and others in the sector will struggle to find new markets as Chinese importers turn to alternative sources. This will hit both the menhaden fisheries of the Gulf of Mexico and the pollock fishmeal industry of Alaska.

“For the Americans it is a problem,” said Mittaine. “I don’t see what they’re going to do with their fishmeal.”

Last Wednesday, China’s Ministry of Commerce said it would impose an additional tariff on imports of US fishmeal of 25% (HS code 23012010). The ingredient used in animal and fish feed was among 333 US goods worth $16 billion in annual trade targeted.

The Chinese counter-move will take effect immediately after the US imposes tariffs on the same amount of Chinese goods on Aug 23.

Read the full story at Undercurrent News