Saving Seafood

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

VIRGINIA: Menhaden landings pacing below disputed cap

August 8, 2018 — Chesapeake Bay landings of menhaden are coming in at a pace well below a controversial cap imposed by an interstate fisheries commission, Virginia Marine Resources Commissioner Steven Bowman said.

As of the end of June, landings for the so-called reduction fishery came in at 24,000 metric tons, Bowman told the management board of the Atlantic States Marine Fisheries Commission (ASMFC) this week.

He said that meant landings this year would almost certainly come in below the 51,000-ton cap the interstate commission imposed last year — a cut of more than 40 percent that the General Assembly balked at adopting.

Bowman, joined by Maryland’s director of fisheries, asked the board to hold off declaring that Virginia was not in compliance with the cap because the General Assembly had not written the 51,000-ton limit into state law.

That finding, if adopted by the commission and accepted by U.S. Secretary of Commerce Wilbur Ross, could shut down the menhaden fishery, which employs about 300 people working on Omega Protein’s fishing boats and its processing plant in Reedville, on the Northern Neck. While the cap applies only to menhaden caught by the big “purse seine” vessels Omega operates to catch fish to be processed for oil and fish meal, board members said a finding of noncompliance could shut down the bait fishery, in which smaller operators use a different technique to catch fish used by crabbers and in commercial fin-fisheries

Instead, Bowman and Blazer proposed that the commission find Virginia out of compliance if landings this year actually exceeded 51,000 tons.

That effort failed, but the board decided to delay until February acting on an alternative declaring Virginia out of compliance.

Omega spokesman Ben Landry said he believed the menhaden board’s decision to delay acting reflected commissioners’ new-found concern, underlined by NOAA’s Lynch, about the scientific basis for the cap.

“We have no intention of blowing past the 51,000,” he said. “But it’s an artificial number … our concern is flexibility; if there are storms out in the ocean, we’d like to be able to come into the bay.”

Read the full story at the Daily Press

Virginia at odds with fisheries commission over cap for menhaden caught in Bay

May 31, 2018 — The Atlantic States Marine Fisheries Commission warned Virginia in May that the state could soon face action for failing to adopt new menhaden harvest limits established late last year — a process that could lead to a complete closing of its menhaden fishery.

Specifically, Virginia has not established a 51,000 metric ton harvest cap for menhaden caught within the Chesapeake Bay by the Omega Protein reduction fishery based in Reedville, VA.

Last fall, the ASMFC increased the allowable coastwide catch of menhaden by 8 percent, but changed how it was distributed among the coast, which slightly decreased the limit for Virginia. The state is able to make up for the reduced catch through a system that allows it to acquire unused allocations from other states. But as part of its action, the commission also lowered the cap on how much of the state’s total harvest could come out of the Bay.

The Bay cap only affects Omega’s reduction fishery, which catches large amounts of menhaden and “reduces” the fish into other products, such as fish oil supplements and animal feed. The Bay cap does not affect operations that catch menhaden for bait in other fisheries.

Read the full story at the Bay Journal

 

Omega Protein critical of ASMFC actions on Chesapeake menhaden

May 7, 2018 — A spokesman for Omega Protein said his company took exception to the statement released last week by the Atlantic States Marine Fisheries Commission that put Virginia on notice for not implementing a reduced catch limit for menhaden in Chesapeake Bay.

Ben Landry, Omega Protein’s director of public affairs, told SeafoodSource that the commission’s decision last November to reduce the Chesapeake Bay cap by more than 36,000 metric tons was “devoid of science.” The company processes menhaden at its Reedville, Virginia facility, which sits on the western shore of the bay.

“We feel that it’s targeting one company, which is what this provision applies to Omega,” said Landry, noting that there are no caps for the bait fishery. “It’s not in accordance with the best available science. It’s not necessary for the conservation of the species because it’s not overfished.”

Across the ASMFC’s jurisdiction, the Atlantic Menhaden Management Board raised the total allowable catch to 216,000 metric tons for the 2018 and 2019 seasons, representing an eight percent increase. However, the limit for Chesapeake Bay was set for just 51,000 metric tons.

Read the full story at Seafood Source

 

Omega Protein to christen new menhaden vessel

April 3, 2018 — US fishmeal company Omega Protein is set to launch a new vessel to join its menhaden fishing fleet, said the firm.

The new vessel, called the F/V Vermilion, was purchased by Omega Protein in 2016 from the oil and gas industry and has been re-fitted to the tune of $5 million, the firm said. The F/V Vermilion was originally constructed in 1977 and called the Protector.

The vessel will be christened at an Omega Protein plant in Abbeville, Louisiana, by reverend Paul Bienvenu, on April 7.

Read the full story a Undercurrent News

 

Pic of author in front of ship fuels fish oil photo flap

March 26, 2018 — REEDVILLE, Va. — A group that works with commercial fishermen is questioning why an author posed for a picture while sitting on a jet ski near a vessel in the Chesapeake Bay, rather than ask to come on board.

Paul Greenberg has written a new book, “The Omega Principle,” about omega-3 fatty acids. He tweeted the picture Friday in front of a vessel used by Omega Protein, the Atlantic’s largest menhaden harvester. Menhaden are small fish used for omega-3 fish oil supplements.

D.C.-based group Saving Seafood works with Omega and other harvesters on government and public relations. It says there was no reason for Greenberg to “endanger himself or the crew.”

Read the full story at the San Francisco Chronicle

 

Virginia: Menhaden quota bill pulled in Va. House of Delegates

March 7, 2018 — A much-lobbied bill about an oily fish that nobody eats died in the House of Delegates — but with a promise by some proponents and stern opponents to work together to push for permission to catch more.

The bill, backed by the Northam Administration, was an effort to deal with the Atlantic States Marine Fisheries Commission’s sharp, 41.5 percent cut in a Chesapeake Bay quota for menhaden.

But the administration and Omega Protein, the owner of the Reedville plant that processes menhaden from the bay, agreed to stop fighting over the bill and work together to convince the Marine Fisheries Commission to increase the quota.

The regional commission last year approved a more than 36,000-metric-ton cut in bay quota for menhaden caught by drawing huge “seine” nets around schools of the fish and then hauling them up onto so-called “purse seine” fishing vessels.

Currently, the old marine fisheries commission quota of 87,216 metric tons for fish caught is written into state law.

Knight had proposed removing the reference in state law to the 87,216 tons and empowering the head of the Virginia Marine Resources Commission to set a new quota after appealing, and hopefully winning, an increased quota from the regional body.

Virginia Secretary of Natural Resources Matt Strickler had argued that keeping the old quota in the Code of Virginia risked sanctions that could include an outright ban on menhaden fishing in the bay.

Environmental groups — including the Chesapeake Bay Foundation, League of Conservation Voters and Nature Conservancy, as well as sports fishermen — argued that the lower quota was necessary as a precautionary measure. They fear too many young menhaden are caught in the bay, a key nursery area for the migratory fish. This could put the menhaden population at risk, as well other species, including striped bass and ospreys.

Read the full story at the Daily Press

 

Governor’s bill on menhaden catch limits advances, barely

March 1, 2018 — Atlantic menhaden aren’t giant fish — generally measuring about a foot or less — but they are big business in Virginia, so much so that they are the only species not entrusted to the Virginia Marine Resources Commission for management.

“The General Assembly has decided to retain control over setting quotas for menhaden,” said Matt Strickler, Virginia’s new secretary of natural resources.

Strickler had just emerged from a bruising hearing Wednesday before the House’s Agriculture, Chesapeake and Natural Resources Committee, which barely advanced a bill sent down by Gov. Ralph Northam to bring Virginia into compliance with a November decision by the Atlantic States Marine Fisheries Commission that cut the quota for fish netted in the Chesapeake Bay.

The bill by Del. Barry Knight, R-Virginia Beach, which made it out of the committee on an 11-10 vote, was fiercely opposed by Omega Protein. The company operates the only “reduction fishery” on the Atlantic coast, a fleet of boats and plant in Reedville that turn thousands of tons of the fish into oil and meal each year for a range of products each year, from dietary supplements to pet food.

“This bill does harm industry and it does risk jobs,” Monty Deihl, Omega’s vice president of operations, told the committee, adding that no one was more attuned to menhaden numbers than the company, which was founded in Virginia in 1913. “This stock is more important to us than probably anyone else.”

Environmental groups and recreational fishermen urged the committee to send it on to the House floor.

Chris Newsome, a charter fishing captain from Gloucester, said menhaden are a “shared resource owned by all constituents of the commonwealth.”

“Decisions regarding menhaden shouldn’t be influenced solely by one stakeholder,” he said.

Read the full story at the Richmond Times-Dispatch

 

Virginia: Time for bill runs out, higher menhaden quota remains

February 13, 2018 — A multi-state body says Virginians must catch fewer menhaden from the bay, but Virginia’s General Assembly didn’t listen — or, to be exact, didn’t really get a chance to hear.

A bill to bring Virginia’s quota in line with a steep cut demanded by the Atlantic States Marine Fisheries Commission has languished for more than a month in the House Agriculture, Chesapeake and Natural Resources Committee.

The committee won’t meet again before Tuesday’s midnight deadline for the House of Delegates to act on bills sponsored by House members. Without a committee’s vote to recommend a bill, it couldn’t make it to the floor for all the delegates to consider.

And that means that the higher quota applies for the only fishery — Virginia’s biggest — that the General Assembly regulates.

Del. Barry Knight, R-Virginia Beach, wanted the General Assembly to agree to the cut in Virginia landings of menhaden from 87,216 metric tons to 51,000 tons that was approved in November by the regional fisheries commission.

That 41.5 percent cut came as the commission approved an 8 percent increase in the coastwide quota set by the commission.

The proposed quota cut is meant to protect a major nursery for menhaden and the striped bass that feed on them, said Chris Moore, senior regional ecosystem scientist at the Chesapeake Bay Foundation.

While menhaden aren’t sold for human food, they are processed for fish oil, in food supplements, and for fishmeal, an important ingredient in livestock feed, as well as in pet food and to nourish farm-grown fish and seafood.

The striped bass that eat menhaden, on the other hand, have become an important food fish, as well as popular catch for recreational fishermen. Menhaden are also a vital food for marine mammals and osprey.

Moore said not enacting the regional commission quota puts Virginia, and the fishing crews and processing plant workers who depend on menhaden, at risk of sanctions.

That’s a big business. Omega Protein, the Texas-based fish oil and fishmeal producer whose Reedville operation, supplied by seven ships, is the fifth-largest U.S. port for fish landings, with 321 million pounds, worth $31 million, in 2016.

Read the full story at the Daily Press

Cooke closes Omega Protein deal

December 21, 2017 — Omega Protein’s stockholders have voted to go ahead with a deal which sees the parent company of Cooke Aquaculture acquire all outstanding shares for nearly $500 million.

The deal was first announced in October. The transaction price represents a premium of 32.5% to Omega Protein’s closing share price on Oct. 5, 2017, which was $16.60, giving a market capitalization of $372.90m. The agreement has been unanimously approved by the board of directors of each of Omega Protein and Cooke, according to a statement.

The transaction was subject to the approval of Omega Protein stockholders, certain regulatory approvals and other customary closing conditions. BMO Capital Markets is providing committed financing for the transaction.

Omega Protein operates seven manufacturing facilities located in the US, Canada and Europe. The company also operates more than 30 vessels to harvest menhaden, a fish abundantly found in the Atlantic Ocean and Gulf of Mexico.

Read the full story at Undercurrent News