Saving Seafood

Cooke Aquaculture acquires Houston fishing company in $650M deal

December 20, 2017 — New Brunswick seafood giant Cooke Aquaculture got even bigger on Tuesday, with its acquisition of a Houston, Texas company and its workforce of 1,000 people.

Cooke Aquaculture acquired Omega Protein Corp. in a $500 million USD deal — approximately $650 million (Canadian) — in one of the single largest foreign investment deals a New Brunswick company has ever done in the United States.

“It’s the single largest acquisition [our] company has ever made,” said Joel Richardson, vice-president of communications for Cooke.

“When a New Brunswick company reaches beyond our borders and acquires a company outside our province, it helps strengthen jobs back here and at home.”

Omega Protein, founded in the early 1900s, is a fishing company that sources omega oils and specialty protein products for both nutritional supplements and animal feeds.

They operate over 30 boats off the Atlantic and Gulf coasts, near Mississippi, Louisiana and Virginia, and catch a forage fish called menhaden, which is rich in omega fatty acids.

Read the full story at CBC News

 

Omega Protein sets date to decide on Cooke deal

November 27, 2017 — Cooke Aquaculture will know as soon as Dec. 19, a week before Christmas, whether it’s getting what it hoped to find under the tree: a large Houston, Texas-based company that catches menhaden and reduces it to fishmeal and fish oil.

That’s the date Omega Protein has set for a shareholder vote on its proposed acquisition by the Cooke’s New Brunswick, Canada-based parent company, according to a new Securities and Exchange Commission filing.

Read the full story at Undercurrent News

 

Menhaden catch limit raised along Atlantic coast, slashed in Bay

November 20, 2017 — East Coast fishery managers plan to increase the coastwide menhaden catch by 8 percent next year, while slashing the amount that can be harvested from the Chesapeake Bay.

But despite heavy pressure from environmental groups, the Atlantic States Marine Fisheries Commission balked at a proposal that would have required fishery managers to take into account the ecological role of the small, oily fish when setting future harvest levels.

By the end of their two-day meeting in mid-November, commissioners had succeeded in disappointing and pleasing environmentalists and industry officials alike — typically not at the same time — while setting up another big debate two years from now over how to account for the role menhaden play as a food source for other species.

In a statement after the meeting, Robert Ballou, of the Rhode Island Department of Environmental Management and chair of the ASMFC Menhaden Board, acknowledged that many people were left disappointed by the decisions that will guide harvests for the next two years. But he said the commission’s actions demonstrated a “commitment to manage the menhaden resource in a way that balances menhaden’s ecological role with the needs of its stakeholders.”

It was the latest round in a decades-long struggle over how to manage the catch of Atlantic menhaden, a fish almost never eaten by humans that is an important food for a host of marine species. By weight, menhaden make up the largest catch in both the Chesapeake and along the East Coast, but by nearly all accounts their abundance is increasing, especially in New England. In fact, the ASMFC’s science advisers indicated that the current coastal catch limit of 200,000 metric tons could be increased by more than 50 percent with little chance of overfishing the species.

But conservation groups have long argued that such assessments do not fully account for the importance of menhaden as a food source for marine mammals, many birds, and a host of other fish, such as striped bass.

It is part of a larger, long-running debate between conservation groups and the fishing industry over how to treat forage fish, which include menhaden, anchovies and other small species that provide a critical link in the aquatic food chain by converting plankton into nourishment for larger predators.

Historically, conservationists contend that forage species have received less attention — and protection from overfishing — than the larger predators, such as striped bass. Prior to the meeting near Baltimore, conservationists had gathered a record-setting 157,599 comments urging the ASMFC to adopt new harvest guidelines, or reference points, that would take the ecological role of the fish into account when setting catch limits. If adopted, the guidelines would almost certainly have required a reduction in the current coastwide menhaden catch.

But critics — which included ASMFC’s own scientific advisers, as well as the commercial menhaden industry — said the reference points under consideration were based on studies of other species in other places and may not be applicable to menhaden.

Ultimately, the commission — a panel of state fishery managers that regulates catches of migratory fish along the coast — voted 13–5 to delay the adoption of ecological reference points until a panel of scientists it has assembled can make its own ecological recommendations, tailored specifically to menhaden. Those recommendations are not expected to be ready until 2019.

Dozens of activists attended the meeting, many holding bright yellow signs that said, “Little Fish Big Deal,” “Keep it Forage” or “Conserve Menhaden.” Many were surprised not only to be defeated after the huge volume of comments — more than 99 percent in favor of ecological reference points — but also by the lopsided vote.

Read the full story at the Bay Journal

 

New Chesapeake Bay menhaden rules spark praise, criticism

November 15, 2017 — CHESAPEAKE BAY, Va. — New regulations on the harvest of menhaden are proving a mixed bag for local industry and conservationists.

Menhaden is a key part of the Chesapeake Bay’s ecosystem, serving as food for larger fish, mammals and birds. But they are also the key raw material for Omega Protein. Every day Omega turns tons of menhaden into fish oil, fish meal and other products.

As we showed you in our investigation Controversial Catch two years ago, Omega is the last major company of its kind on the Atlantic Coast, and has been operating in Reedville since the mid-1800s. Omega employs about 250 people there.

This week at its meeting near Baltimore, the Atlantic States Marine Fisheries Commission has raised the total allowable catch of menhaden, from Maine to Florida, by 8 percent.

But Omega is not happy about that, because at the same time, the commission cut the amount the company can catch from the Chesapeake Bay by 40 percent.

Read the full story at WAVY

 

Menhaden vote a mixed bag for Virginia

November 15, 2017 — There was measured praise and disappointment all around this week after a regional fisheries commission voted on a 2018-2019 management plan for Atlantic menhaden, often called the most important fish in the sea.

For Virginia, too, it was a mixed bag.

The Atlantic States Marine Fisheries Commission decided at an annual meeting in Linthicum, Md., to lower the Chesapeake Bay reduction fishery cap by 41.5 percent, from 87,216 metric tons to 51,000 metric tons. This pleases Virginia conservationists, but not the reduction fishery.

The commission said in a statement that its decision “recognizes the importance of the Chesapeake Bay as nursery grounds” for menhaden and many other species that rely on menhaden as a food source.

It also bumped up the coast-wide catch limit for menhaden by 8 percent to 216,000 metric tons — a net plus for fisheries, and a “modest” increase with a “zero percent chance of subjecting the resource to overfishing or causing it to be overfished,” the commission’s Atlantic Menhaden Board Chairman Robert Ballou of Rhode Island said in a statement.

Read the full story at the Daily Press

 

US regulators boost Atlantic menhaden catch limits by 8%

November 14, 2017 — BALTIMORE — Omega Protein, Daybrook Fisheries, Lund’s Fisheries and several other US big fishing companies that rely heavily on menhaden caught in the Atlantic Ocean got the outcome they hoped for in a hotel meeting room here this week.

By a 15-3 tally, the Atlantic States Marine Fisheries Commission (ASMFC), meeting as the Atlantic Menhaden Management Board on Tuesday morning, approved a 216,000 metric ton total allowable catch (TAC) on the Atlantic coast of the United States in 2018 and 2019 — an 8% increase. The panel gave itself the flexibility to lower the threshold should its staff come up with new ecological reference points (ERPs) that suggest a reduction is needed.

The day before ASFMC voted down, 13-5, a change favored by environmental advocates that would’ve required the establishment of interim goals aimed at restoring menhaden to 75% of their original biomass and prompted action, possibly even a moratorium, should the biomass ever fell below 40% of that amount. It approved a substitute proposal that requires ASMFC’s staff to develop species-specific ERPS, something that is predicted to get done by the end of 2019.

“We’re in a pretty good place right now where the fishery is concerned. As has been referenced, we’ve got an expanding stock and a stable harvest over the last couple of years and we’re still leaving about 40% of the unfished spawning potential in the water right now,” said Dave Blazer, Maryland’s representative on the panel, in explaining why he was voting for the substitute proposal on Monday.

Read the full story at UndercurrentNews

 

Days Before High-Stakes Menhaden Vote, Questions and Uncertainties Abound

Amendment 3’s new Ecological Reference Points in Center of Controversy

WASHINGTON (Saving Seafood) — November 10, 2017 — By Marisa Torrieri:

As the Atlantic States Marine Fisheries Commission prepares to vote on highly-contested benchmarks for managing menhaden next week, uncertainties about the potential ripple effect of new ecological reference points (ERPs) are fueling heated exchanges between environmental groups and fisheries.

On November 13 and 14, the Commission is expected to meet to vote on Amendment 3, which will establish management benchmarks, and consider ecological reference points for menhaden, a bony and oily forage fish that is a primary food source for bigger fish such as striped bass and humpback whales and is harvested commercially for oil and fertilizer. The Commission also plans to review and potentially update state-by-state quota allocations.

Should the commission vote for “Option E” under Amendment 3 — an approach largely favored by environmental groups — the ASMFC would establish interim ecological reference points that would set a target of 75 percent and a threshold of 40 percent of a theoretical unfished stock. The ASMFC’s Biological Ecological Reference Points Workgroup would continue to develop Menhaden Specific ERP.

Fishermen whose livelihoods depend on the fish say the impact of this option would be catastrophic to their business.

Jeff Kaelin, head of government relations for Lund’s Fisheries, Inc., in Cape May, N.J., said New Jersey would lose a lot of jobs and money, in the event that interim ERPs took effect.

“With Option E, if we fish at the target that the environmental community is advocating, we’ll have a 25 percent cut in the fishery we have today, and that’s significant,” says Kaelin. “In 2013, when the quotas were established … we lost access to 50 percent of the fish. This is worth about $2 million to the state of New Jersey if we take a 25 percent cut. That’s what would happen, and there’s no need for it because the science is so robust.”

Yet environmental groups have countered that Option E, if selected, would not trigger draconian changes — it would simply put new goals in place that would benefit everyone, which could be phased in based on an organization’s own time table.

“The ERP is the goal, what you’re trying to achieve,” said Joseph Gordon, a senior manager for Pew Charitable Trusts, who directs campaigns to conserve forage fish. “Option E doesn’t tell you how fast to get there and how much risk to take. If the Commission decides to move forward Option E, they will be opting to have a very high population [of menhaden] in the ocean. When we talk about Option E, the goal of that is to achieve and maintain a high biomass of fish in the ocean. That should support significant amounts of fishing in the case of menhaden, over time as the population grows. The benefits to everyone, including commercial fisheries, is the goal of management.”

Chris Moore of the Chesapeake Bay Foundation also suggested Option E isn’t as bad as fisheries are making it out to be.

“Option E would say ‘OK, we now have a new target … fisheries would need to make changes to ensure they’re hitting that target,” says Moore. “But it’s not ‘we shall do this, we shall do that.’ If you look at the last stock assessment, the last quota showed we’re increasing. There’s a lot of leeway for the managers to get to the target.”

Omega Protein Corporation, the largest participant in the menhaden fishery, is based in Reedville, Va., a state that is currently allocated 85 percent of the catch. It says comments from environmentalists in support of Option E sugarcoat the potential economic impact of the ERPs.

Omega Protein is in favor of the more conservative Option B, which keeps ERPs at the existing status quo levels, until better mathematical models for menhaden are available.

“To say that the current reference points are inadequate, and we want to change them, and then say, ‘we won’t mandate that the harvest be cut when over the target,’ that’s ludicrous,” says Monty Deihl, Vice President of Operations for Omega Protein. “The environmentalist solution is looking for a problem, and there is no problem! We only take 8 percent of the biomass per year. The current model says you could harvest 300,000 metric tons per year without overfishing. With Option E, there’s a 25 percent cut in the harvest.”

Shaun Gehan, a Washington, D.C.-based attorney who represents Omega Protein, said that environmentalists promoting Option E as a “phased approach” — while the language within the Option calls for a clear cut in fishing activities — are hypocritical.

“The real issue is if one believes that menhaden should be at 75 percent un-fished levels and the target [fishing mortality] helps achieve that, then it is hypocritical to advocate for anything but a cut,” he says. “It seems there is a lot of folks that want to have their cake and eat it too. That is, being able to say, ‘ecological reference points’ are being used, while avoiding harvest reductions they entail because no one thinks cuts are warranted in light of menhaden’s abundance.”

THE ROAD TO AMENDMENT 3

One of the biggest arguments for clamping down on menhaden fishing, one which has resonated with the public, is that concerns about menhaden weren’t on anyone’s radar until recently, when reports warned that the supply was in danger.

According to Pew, people started to “wake up” to the menhaden issue after a coast-wide decline in menhaden in the 1990s through the early 2000s that attracted a lot of attention: This decline was noticed on the water up and down the coast by recreational fishermen. The effects of this decline on predator species, especially striped bass, were especially noticed, since striped bass is a prized recreational fish – and the reason the ASMFC was created in the first place.

“Striped bass had been recovering from depletion, and many were interested and invested in this recovery,” Gordon noted. “But anglers were seeing signs of starvation and disease in striped bass, and it didn’t take long to trace many of the problems to the absence of adequate prey (menhaden) for them. That’s what led to the first cap on menhaden fishing in the Chesapeake Bay, in 2005.”

In 2012, with support from the Lenfest Ocean Program, the Institute for Ocean Conservation Science at Stony Brook University convened the Lenfest Forage Fish Task Force, a panel of 13 marine and fisheries scientists from around the world, to offer science-based advice for the management of species known as forage fish, because of their crucial role in marine ecosystems. In their report, “Little Fish, Big Impact,” researchers concluded fisheries managers “need to pay more careful attention to the special vulnerabilities of forage fish and the cascading effects of forage fishing on predators.”

Since then, ASMFC staff, scientists, and advisors have been developing and reviewing a range of ecological models and management strategies. In 2012, the ASMFC voted in favor of Amendment 2, which set a new coast-wide catch limit. In May of 2015, the ASMFC began drafting Amendment 3 to the menhaden management plan, with the goal of establishing ecological management, and to review and possibly update state-by-state quota allocations.

“What’s amazing to watch over time, and I’ve worked on this for about a decade, is we’ve gone from a situation where we didn’t have any coast-wide limit at all to a question of when it’s going to happen,” says Gordon.

CONSIDERING SCIENCE

The outcome of the vote on Amendment 3 is expected to have a powerful impact on the future of menhaden, as well as recreational anglers, tourism, conservationists and larger fisheries. Yet with so much on the line, figuring out the right path isn’t so clear cut.

For one, scientists and researchers who study menhaden are at odds with each other, some saying we are at a critical juncture and must make drastic moves to manage and protect menhaden, and others dismissing such reports as hysteria.

In a Q&A with Pew Charitable Trusts, Ellen Pikitch, a marine biology professor and director of the Institute for Ocean Conservation Science at Stony Brook University, said the state of menhaden appears to be in decent shape if you examine the population in isolation.

“But when you look at it from an ecosystem perspective—whether there are enough to feed predators—menhaden are much less numerous than they ought to be,” she said. “On the East Coast, menhaden used to range from Nova Scotia to Florida, but we haven’t seen that kind of distribution for probably 50 years.”

Pikitch led a group of more than 100 scientists who commented on the proposed Amendment 3 ERPs, and is pushing for the implementation of Option E.

But at a hearing of the U.S. Senate Commerce Subcommittee on Oceans, Atmosphere, Fisheries and Coast Guard on October 24, fisheries scientist Dr. Ray Hilborn, a professor at the University of Washington’s School of Aquatic and Fishery Sciences, said there was “no empirical evidence to support the idea that the abundance of forage fish affects their predators.”

Dr. Hilborn’s comments came in response to questioning from Sen. Roger Wicker (R-MS) about whether fisheries managers should manage forage fish according to a “rule of thumb” approach, where fisheries are managed according to a set of broad ecological and management principals, or a “case-by-case” approach, where management is guided by more species-specific information.

Hilborn, who was part of a team of fisheries scientists that recently examined the effects fishing for forage fish species had on predator species, has expressed concern that the 2012 report from the Lenfest Forage Fish Task Force may have overestimated the strength of the predator-prey relationship.

John Bull, commissioner for Virginia Marine Resources Commission, believes the latter. And while he’s heard environmental groups are trying to make Option E seem more palatable by saying it will result in “phased implementation,” he does not support the establishment of interim ERPs because it “doesn’t make sense, scientifically.”

“The science shows from a benchmark stock assessment a couple years ago that the stock is healthy, robust, and reproduction is good,” said Bull. “And in fact, a 30 percent increase on menhaden could be enacted with a 0 percent chance of overfishing. What Virginia would like to see is an increase in the quota on the East Coast of 5, 6, 7 percent.”

Marisa Torrieri is a freelance writer who lives in Fairfield, Connecticut, with her husband and two young sons. She possesses a master’s degree in journalism from Northwestern University, and has written and edited for dozens of publications, including the Washington Post, the Baltimore Sun, and the Village Voice.

Cooke Inc. Agrees to Acquire Omega Protein Corporation for $22.00 Per Share

Omega Protein’s Stockholders to Receive $22.00 Per Share in Cash

Transaction Valued at Approximately $500 Million

Transaction Represents Key Strategic Addition for the Global Seafood Company

October 6, 2017 — SAINT JOHN, New Brunswick and HOUSTON — The following was released by Cooke Inc. and Omega Protein:

Cooke Inc. (“Cooke”), a New Brunswick company and parent of Cooke Aquaculture Inc., and Omega Protein Corporation (“Omega Protein” or the “Company”), a nutritional product company and a leading integrated provider of specialty oils and specialty protein products, today announced that they have entered into a definitive agreement (the “Merger Agreement”) under which Cooke will acquire all outstanding shares of Omega Protein for $22.00 per share in cash. The transaction price represents a premium of 32.5% to Omega Protein’s closing share price on October 5, 2017. The Merger Agreement has been unanimously approved by the Board of Directors of each of Omega Protein and Cooke.

“We are very pleased to sign this agreement with Omega Protein,” said Glenn Cooke, CEO of Cooke Inc. “Omega Protein will provide us with another platform in Cooke’s growth strategy through further diversification in the supply side of the business. We believe this will be a very good fit between our two cultures. Omega Protein has a 100-year history with an experienced and dedicated workforce, which we value, and a tradition of operating in small, coastal towns and communities that we share. Their focus on sustainable aquaculture and agriculture and the production of healthy food is also a great fit with our experience and culture.”

Cooke carries on the business of finfish aquaculture globally through its wholly-owned subsidiary Cooke Aquaculture Inc. The New Brunswick, Canada based Cooke family also has significant investments in wild fisheries globally through their ownership of Cooke Seafood USA, Inc. and Icicle Seafoods, Inc. Cooke Aquaculture Inc. is an aquaculture corporation founded in Blacks Harbour, New Brunswick, Canada with salmon farming operations in Atlantic Canada (operated by its affiliate, Kelly Cove Salmon Ltd.), the United States (Maine and Washington), Chile and Scotland, as well as seabass and seabream farming operations in Spain. In 2015, Cooke Seafood USA, Inc. was created, and grew rapidly through the acquisitions of Wanchese Fish Company, Inc. in the USA and the assets of Fripur S.A., the largest fishing company in Uruguay. The Cooke family also acquired Icicle Seafoods, Inc. in 2016. The addition of Omega Protein serves as a perfect strategic piece for the Cooke family of companies.

“We are excited about the agreement, which we believe recognizes the value of Omega Protein’s successful, 100-year-old fishing business and also provides stockholders with an immediate premium,” said Bret Scholtes, President and CEO of Omega Protein. “Cooke is a family owned company and in many ways, reminds us a lot of ourselves and this agreement is the perfect fit for the two companies. Cooke is a highly-regarded and responsible leader in the global fishing and seafood industry.”

Read the full release at PR Newswire

Little Fish, Big Worry: Future of Menhaden Sparks Concern

October 2, 2017 — PORTLAND, Maine — A big decision about the future of a little fish is attracting the attention of ocean conservation groups who say they are concerned about whether menhaden fishing can be considered sustainable.

Industry players are petitioning the London-based Marine Stewardship Council to offer its well-known sustainability certification to the Atlantic Ocean and Gulf of Mexico fisheries for menhaden, a small schooling fish that plays a vital role in the ocean food web.

The Marine Stewardship Council’s sustainability marker, prominently displayed on seafood packages in grocery stores, is one of the most recognized seafood labels in the marketplace. The company requesting the certification is Omega Protein, which is the largest harvester of menhaden in the Atlantic and the Gulf.

A sustainable certification for menhaden is important because companies that use menhaden products are starting to require it, said Ben Landry, a spokesman for the Houston-based company. He said it’s becoming especially common for aquaculture firms to require that feed be certified responsibly harvested.

Landry said the company is hopeful to obtain certification sometime in early 2018.

“It’s the gold standard in seafood certification. It signals to consumers that you’re truly a sustainable company that harvests these fish,” he said.

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

Menhaden battle once again pits Virginia against Northern states

September 25, 2017 — HEATHSVILLE, Va. — Five years ago, the Atlantic States Marine Fisheries Commission cut the menhaden harvest by 20 percent, forcing the largest employer in the rural tip of the Northern Neck, Omega Protein, to lay off workers and decommission a ship.

The tiny fish is sold by fishermen as bait to catch blue crabs and commercially rendered for its oil and byproducts at Omega’s Reedville plant. Environmentalists and anglers say it’s critical to the diet of other Chesapeake Bay and Atlantic species such as osprey, striped bass and dolphin. At the time, commissioners said menhaden was at the point of being depleted.

Since then, ASMFC, which manages fisheries from Maine to Florida, changed its method of assessment and says stocks are now healthy. It began easing catch limits to where the quota is now only about 6 percent short of the 212,000 metric tons it once was.

Omega, which catches a half-billion fish each year, replaced two of its seven ships this year with larger, more efficient ships and rehired some of its employees.

But the company sees a new problem.

Monty Deihl, vice president of Omega’s operations, calls it “a fish grab” by other ASMFC member states, specifically northern states where more menhaden have been showing up.

“The stock is very healthy, the quota could be raised, but no one wants to raise the quota because Virginia will get 85 percent of whatever is raised,” he told a crowd of mostly employees and their families at an ASMFC public hearing last week. “You should be offended at the way all the other stuff was done to try to get a piece of what you all put your time and careers in to build.”

Read the full story at the Free Lance-Star