Saving Seafood

Ongoing China-U.S. Trade War Likely to Bring Changes to Global Seafood Industry

November 20, 2018 — SEAFOOD NEWS — Chinese seafood exports to America have grown this year, despite the trade war. However, the trade war with the U.S. could have global impacts, writer Amy Zhong reports from China.

Chinese seafood exports to the U.S. were US $3.22 billion during 2017, while the exports have risen by 5.75 percent to reach US $2.161 billion within the first eight months of this year compared with the same period last year. But things are starting to shift. The U.S. used to be the largest market for Chinese tilapia, but not any more.

Against this backdrop, a seafood processing seminar was hosted in Dalian in October and participants gathered to talk about issues like global seafood trading and brand building.

China’s entry into the World Trade Organization in 2001 created great opportunities for its aquatic processing industry but it has begun to shift attention to the domestic market with the recession of foreign markets, trade conflicts and increasingly great domestic demand. Thus, the Dalian seminar was of great importance in areas such as opportunities and threats the aquatic industry encounters in domestic and foreign markets.

The country used to rely on foreign buyers in its seafood sales from 1981 to 2005, Cui He, the president for China Aquatic Products Processing and Marketing Alliance, was quoted as saying in a recent FishFirst article. Its export ballooned from 2005 to 2013, while its imports also grew between 2013 and 2017. The country’s seafood trading volume exceeded 10 million tons in 2017, which makes it a market larger than any other in the world, according to the story. That means an increasing number of aquatic suppliers have placed more importance on this market with great potential thanks to its steady export opportunities and rapid import increase. Countries like Norway, Canada and Australia have said in the past that China is the main target in their seafood promotions.

Japan, the U.S. and Europe are the three main buyers of China’s seafood, according to the country’s statistics, while other important buyers include South Korea and the Association of Southeast Asian Nations (ASEAN). Japan ranks first among all of China’s seafood buyers while the U.S. also is significant, buying a lot of China’s white shrimp and tilapia.

Although there seems to be no drastic change to the global seafood market at present, China has played a role of great importance in the processing industry. The trade war does take a toll on some export-oriented seafood companies in Dalian and Qingdao, but it also pushes them to upgrade their systems. In short, more seafood trading stimulates the development of China’s seafood processing sector.

China’s statistics have shown a reduction in China’s reliance on U.S. seafood buyers since 2014. The U.S. anti-dumping policies on shrimp and catfish have influenced China’s processors since the mid-2000s. Lately, the two countries have become competitors in sourcing such seafood as Ecuador’s white shrimp after 2014, with Ecuador selling more white shrimp to China recently. China also has purchased more basa from Vietnam than the U.S. as well.

Recently, the U.S. has removed cod, pink salmon and pollock from its import list that are subject to higher tariffs. Cod has been delivered to China for further processing before being re-exported to Europe, the article said. At the same time, tariffs are having less effect on China’s seafood purchases from the U.S. than its sales to the U.S. Tilapia sales have hurt the most: The U.S. was once the largest buyer, but due to the trade war, it is now looking to other countries for substitutes.

SeafoodNews reporter Amy Zhong also writes that Chinese trade journals say that the U.S.-China trade war could also change the global seafood industry. Seafood businesses worldwide are uncertain whether China can maintain its status as the seafood processing center, since some companies have been forced to relocate to other regions, like Africa. However, China has begun developing business in more countries included in its One Belt, One Road initiative, which in turn has encouraged China to upgrade its seafood industry.

Wang Zhanlu, the director for WTO Division of Agricultural Trade Promotion Center, was quoted as saying countries usually control the agricultural trade more strictly with higher tariffs, but China is comparatively open and is second only to the U.S. in terms of its agricultural imports. In 2017, seafood ranks first in the country’s agricultural exports and accounts for 27 percent of the country’s agricultural export total. Meanwhile, seafood imports account for about 17 percent of its imports.

Zhong writes that according to seafood trade expert Leng Chuanhui, Japan consumes about 8.4 million tons of seafood every year, while it produces around 4.7 million tons on its own. Most of Japan’s seafood are wild harvests, while some are raised in fresh- or saltwater aquaculture. The country buys about 3.7 million tons of seafood from other countries, while its main export markets are Hong Kong and the Chinese mainland, while 14.2 percent of its seafood import is from China.

Professor Qin from Guangdong Ocean University was quoted as saying that oysters have also become more popular in China. Global production was only 5.32 million tons worldwide in 2017, while the trading volume was about 70,000 tons. But China’s production rose by 4.7 percent in 2017 compared with that of 2016 to reach 4.87 million tons. Its oyster market value grew by 25 percent to reach 25.4 billion yuan (~$3.7 billion USD) that year. Most of the Fujian, Guangdong and Shandong oysters are currently destined for barbecues, but likely will be more finely processed in the future.

This story originally appeared on Seafood News, it is republished here with permission.

 

The Irony of Oceana’s Seafood Fraud Campaign

November 16, 2018 — Seafood fraud/mislabeled seafood is a permanent topic in the sustainable fisheries space. Since 2015, news sources such as The Atlantic, the Wall Street Journal, Time Magazine, and the Economist have published stories on the topic of seafood fraud. Nearly every ocean conservation NGO has commented or contributed to the discourse, but Oceana has led the conversation. Oceana has an entire campaign aimed at exposing and reducing seafood fraud globally. Since 2011, they have published sixteen reports on seafood fraud—most recently, a report from Oceana Canada.

There are important differences between seafood fraud and fraud in other food systems. Language barriers, multiple acceptable market names, the sheer quantity of seafood species compared to other animal proteins, and the simple fact that wild capture adds a slew of complications compared to controlled terrestrial farming, should set a different expectation level for seafood labeling standards. There are so many chances for mistakes or miscommunication to happen—far more than any other food supply chain. But the seafood fraud discourse (largely led by Oceana) often excludes these realities and instead points fingers at fishermen, restaurateurs, and retailers for duping their customers.

In this post, I take a look at Oceana Canada’s methodology for determining “fraud” in its most recent report. I consider the results of Oceana’s report through the lens of the seafood and restaurant industries and attempt to illustrate the difference between legitimate fraud and unintentional mislabeling.

Oceana’s methodology & general results

Oceana defines Seafood Fraud as, “the practice of misleading consumers about their seafood in order to increase profits.” This is an important distinction from the term “mislabeled” because it assigns an intent to deceive. Fraud is on purpose, whereas mislabeling could be an accident. Most reports on this subject today infer that the seafood industry is actively deceiving consumers on a broad scale, across the most commonly consumed species, both domestically and internationally.

Oceana’s methodology for conducting its seafood fraud reports is suspect. In this post, I focus on the most recent Canadian study, but my criticisms apply to all seafood fraud reports that use the same methods. Generally, Oceana collects seafood samples, DNA tests them, then matches the DNA results to outdated government guidelines. The samples they collect are purposefully not representative of seafood consumption habits. In Oceana Canada’s 2018 report, 382 seafood samples from 177 restaurants and retailers across the country were tested. The aim was to focus on cod, halibut, snapper, tuna, salmon and sole because these species historically, “have the highest rates of species substitution.” The specific species sampled were chosen because of past studies on seafood mislabeling, i.e. they were not randomly sampled. DNA testing then determined if these samples met the minimum labelling requirements as defined by the Canadian Food Inspection Agency (CFIA), an equivalent of the U.S. Food and Drug Administration (FDA).

This nonrandom sampling is consistent with previous seafood fraud studies from Oceana. A key parallel across Oceana’s seafood fraud investigations is that “targeted fish of interest” are the focus. Oceana Canada encouraged participants to aim for species that are often marked in other fraud studies, meaning the sample in these studies is not indicative of national seafood consumption rates on average, but instead represents very specific species that have proven to present high rates of mislabeling in previous research.

Of the 382 seafood samples tested in Canada, 168 (44%) were found to be fraudulent, meaning the names of the species did not align with the acceptable market names determined by CFIA standards.

Read the full story at Sustainable Fisheries UW

Alaska Fishermen Sentenced for Killing Endangered Sea Lions

November 8, 2018 — An Alaska salmon boat skipper who killed endangered Steller sea lions with a shotgun and hindered an investigation has been fined $20,000 in federal court.

Jon Nichols, 31, of Cordova, was sentenced Tuesday to five years’ probation, three months of home confinement and 400 hours of community service.

U.S. Magistrate Judge Deborah Smith also ordered Nichols to publicly apologize in a national commercial fishing magazine.

One of Nichols’ crewmen, Theodore “Teddy” Turgeon, 21, of Wasilla, also shot the endangered animals. He was sentenced to four years’ probation, one month of home incarceration and 40 hours of community service. He was fined $5,000.

Steller sea lions are the largest members of “eared” seals family, according to the Alaska Department of Fish and Game and can live to be 20 to 30 years old. Females can reach nearly 580 pounds (263 kilograms) and males up to 1,245 pounds (565 kilograms) in the North Pacific Ocean. They get their name from the big males’ intimidating roar as they protect harems.

Steller sea lions are voracious feeders of fish. Adults eat upward of 6 percent of their body weight per day. They target fish that are always available such as pollock and cod as well as seasonally available fish such as herring and salmon.

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

NEFMC Update – October 31, 2018

October 31, 2018 — The following was released by the New England Fishery Management Council:

The New England Fishery Management Council will hold several committee and advisory panel (AP) meetings in November, as well as a webinar for Whiting Amendment 22.  Here’s a run-down of what’s happening.  Committee and AP meeting presentations and documents will be posted on the Council website as they become available.  Two additional events that pertain to Council activities also are listed.

The full Council will meet December 4-6, 2018 at the Hotel Viking in Newport, RI.  An agenda will be posted in the near future at NEFMC Newport, RI 2018 meeting webpage.

 

NGOs condemn EU Parliament’s decision to ‘overfish Atlantic waters’

October 29, 2018 — The European Parliament has voted to approve the multiannual plan for management of north-east Atlantic waters, despite the plan’s allowance for unsustainable fishing, said Oceana, ClientEarth and Seas at Risk.

The Western Waters, an area that stretches from Portugal to France, Ireland and the UK, is a heavily-used fishery for cod, haddock, plaice, sole and Norway lobster. In 2017, the area yielded 368,000 metric tons of produce, with a combined first sale value of roughly €1.4 billion.

However, current estimates suggest that as much as 41% of the region’s stocks are overfished. Environmental NGOs have been putting pressure on the EU Parliament to reduce catch quotas in the region as part of the 2013 commitment in the common fisheries policy (CFP) to end overfishing in European waters by 2020 at the latest.

The latest vote has agreed to allow fishing at levels above the scientifically-advised maximum sustainable yield, a move that many NGOs have condemned as being adverse to the objectives laid out in the CFP.

“The Parliament has agreed fishing mortality ranges that, at their upper limit, can exceed the fishing rates above scientifically advised sustainable levels,” said Andrea Ripol, fisheries policy offer at Seas At Risk. “This means that stocks will not be restored to healthy levels, bringing negative socioeconomic impacts in the longer term.”

Read the full story at Undercurrent News

An act of cod: Alaska-based fleet gets a gift from Board of Fish

October 24, 2018 — Alaska’s inshore cod fishery got a significant upgrade at the state’s Board of Fisheries meeting on Friday, Oct. 19.

The board voted 6 to 1 to increase the fleet’s allocation from 6.4 percent of the total Bering Sea cod quota to 8 percent with an annual increase of 1 percent until it tops out at 15. The Under Sixty Cod Harvesters, a trade group that represents about half of the statewater fleet, had been lobbying to get up to 10 percent and were pleasantly surprised with the 15 percent allocation.

The fishery of pot-cod boats under 60 feet started in 2012 with 1.2 percent of the total Bering Sea cod share. Proponents of the increase argued that the Alaska Constitution mandates development of the state’s resources, prioritizing fisheries with low-impact gear.

“We applaud this board for recognizing how important these open-access statewater fishing opportunities are for our community-based fishermen, and for the young fishermen coming up in the industry,” says Todd Hoppe, president of the Under Sixty Cod Harvesters.

Opponents of the increase largely represent stakeholders in the federal fishery, from which the quota will be siphoned to expand the statewater quota. That includes the freezer-longliner fleet, which has about 50 percent of the quota, and the catcher vessels, which have 21.5 percent.

The move comes at an especially tough time for these historic stakeholders in Bering Sea cod.

“There’s very little recruitment showing up in the stock, and a big chunk of that stock is moving to the north,” says Brent Paine, executive director of the United Catcher Boats, a trade group that represents about 50 trawlers, ranging from about 80 to 130 feet.

Paine expects the North Pacific Fishery Management Council to cut the TAC by 20 percent this year, on top of about 16 percent last year.

“So you get that reduction combined with this statewater increase, and now it’s starting to hurt the federal participants,” Paine says. “It’s tough to get a fair shot [at a state meeting]for federal participants because we’re second-class citizens. The statewater fleet walks into the Board of Fish and says, ‘We’re Alaskans; this is an entry-level fishery… Give us the fish.’ And that’s what happens.”

Read the full story at National Fisherman

Grouper, snapper, cod? Mislabeling is rampant in the seafood industry

October 22, 2018 — Recent investigations and studies have shown mislabeling – sometimes due to error but often the result of outright fraud – is rampant in the seafood industry, showing up both in the marketplace and on restaurant menus.

One study of retailers found seafood like grouper, cod and snapper may be mislabeled up to 87 percent of the time, swapped out for less desirable and cheaper varieties. For example, only seven of the 120 samples of red snapper were actually red snapper.

CBS News’ Meg Oliver spoke to Vinny Millbourn, who hails from a long line of fishermen. The fishmonger at Greenpoint Fish and Lobster Company in Brooklyn, New York, specializes in local, domestic and traceable species. His storefront acts as a fish market, raw bar and restaurant.

“It’s a very big problem and the issue is once it’s prepared, there’s really no way to check it other than DNA testing which a lot of companies are now doing,” Millbourn said. “So I have a have a network of small boat fisherman and wharfs all over the country that are shipping to me daily through the air or by truck. And we are processing every single day to bring in high-quality fresh seafood.”

Millbourn not only knows where his fish come from he can tell a tale about each one. That personal connection is hard to find, but is a good sign. It’s estimated that more than 90 percent of the seafood consumed in the U.S. is imported, and less than one percent is tested by the government.

Read the full story at CBS News

Ups and downs for Alaska cod and pollock

October 19, 2018 — Quotas for next year’s groundfish fisheries reflect ups and downs for Alaska’s key species — pollock and cod — and the stocks appear to be heading north to colder waters.

The bulk of Alaska’s landings come from waters federal waters. The North Pacific Fishery Management Council reviews stock assessments for groundfish each October, sets preliminary catches for the Gulf of Alaska and Bering Sea, and updates them as new data become available.

If the proposals get the go-ahead in December, the Bering Sea pollock TAC will increase slightly to nearly 1.4 million metric tons, or over 3 billion pounds of pollock.

For Pacific cod, the Bering Sea TAC could be reduced to 350 million pounds, a drop of 64 million pounds from this year.

The cod numbers might change as a result of big differences between the 2017 and 2018 survey results in southeastern and northern waters, where large numbers of fish appear to be migrating. Over the year, the cod biomass dropped 21 percent in the southern region but increased 95 percent in the northern area.

Read the full story at National Fisherman

Largest Pacific cod catchers look to hook investor for fleet renewal, not sell up

October 12, 2018 — Clipper Seafoods and Blue North Fisheries’ shareholders are looking for an investor in a combined business to help finance a renewal of the fleet, but not for anyone to take a majority stake, sources familiar with their thinking told Undercurrent News.

The owners of Clipper and Blue North, the two largest US Pacific cod longline companies, are looking for an investor to come in and take a significant share of a combined company, “even up to 49.9%”, as one put it, but they’re not interested in getting out of the business. Part of the reason for seeking investment is fleet renewal, sources told Undercurrent.

In late August, Undercurrent reported the two had brought in Zachary Scott, a Seattle, Washington-based mergers and acquisitions advisory firm, to advise on a possible sale. Sources said a full sale could be a possible outcome, depending on the price, but it is not the preference of the shareholders, who want to stay involved.

Zachary Scott, which did not respond to a request for comment from Undercurrent, has sent an information memorandum on the combined companies to over 30 trade and investor players, sources said.

Dave Little, the main shareholder in Clipper, and Michael and Patrick Burns, who control Blue North, all pioneers of the longline fishery in Alaska, did not respond to a request for comment from Undercurrent.

Read the full story at Undercurrent News

Global Bottom-Trawling Footprint ‘Substantially Overestimated’, According to New Research

October 10, 2018 — About a quarter of the world’s seafood caught in the ocean comes from bottom trawling, a method that involves towing a net along the seabed on continental shelves and slopes to catch shrimp, cod, rockfish, sole and other kinds of bottom-dwelling fish and shellfish. The technique impacts these seafloor ecosystems because other marine life and habitats can be unintentionally killed or disturbed as nets pass across the seafloor.

Scientists agree that extensive bottom trawling can negatively affect marine ecosystems, but the central question — how much of the total area, or footprint, is trawled worldwide — has been hard to nail down.

A new analysis that uses high-resolution data for 24 ocean regions in Africa, Europe, North and South America, and Australasia shows that only 14 percent of the overall seafloor shallower than 1,000 meters (3,280 feet) is trawled. Most trawl fishing happens in this depth range along continental shelves and slopes in the world’s oceans. The study focused on this depth range, covering an area of about 7.8 million square kilometers of ocean.

The paper, appearing in the Proceedings of the National Academy of Sciences, brought together 57 scientists based in 22 countries, with expertise in mapping fishing activity from satellite monitoring and fishing logbook data. It shows that the footprint of bottom-trawl fishing on continental shelves and slopes across the world’s oceans often has been substantially overestimated.

Read the full story at Eco Magazine