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.

 

MSC grants more time to menhaden fishery audit, but might not be needed

November 20, 2018 — The Marine Stewardship Council has granted auditors an extra three months – until March 6 — to finish their final report on whether to grant certification to the menhaden fishery on the Atlantic coast of the United States.

However, Ben Landry, public affairs specialist for Houston, Texas-based Omega Protein, the US’ largest harvester of menhaden and a division of the Cooke group of seafood companies, said he doesn’t think the extra cushion will be needed as the audit is expected to be wrapped up within weeks.

By certifying both the menhaden fisheries on the Atlantic coast and in the Gulf of Mexico, MSC looks to bolster its presence in the US significantly. Combined, the two fisheries account for nearly 800,000 metric ton of fish — about 11% of all of the wild-caught fish in the US – second only to the already MSC-certified Alaskan pollock fishery, responsible for 1.5 billion metric tons, or 30%, based on data from the National Oceanic and Atmospheric Administration (NOAA).

According to assessment reports by third-party assessors and NOAA data, roughly 70% of US landings by volume have been certified by MSC, including Alaskan pollock, and another 16% are currently under review, including the two menhaden fisheries, an MSC official told Undercurrent.

The menhaden fisheries are also North America’s largest source of fish for meal and oil, providing Blacks Harbour, New Brunswick, Canada-based Cooke with a large source of omega-3-enriched feed for its considerable salmon aquaculture operations. Cooke completed its acquisition of Omega Protein almost exactly one year ago.

Read the full story at Undercurrent News

 

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

Alaska’s Seafood Industry Faces the Blob

November 5, 2018 — Challenging statewide salmon harvests have dominated head­lines, with record-high sockeye production in Bristol Bay being the state’s primary saving grace. However, salmon are not the only fish in the sea keeping the state’s fisheries afloat, with many fishermen relying on groundfish, herring, and miscellaneous shellfish to make ends meet. Some fishermen use alternative fisheries as a way to balance their portfolios, while others focus entirely on a single target species ranging from Dungeness crab to sablefish. “In a typical year, Alaska’s most valuable fisheries [measured by value of harvest] include salmon, pollock, Pacific cod, crab, halibut, and black cod,” says Garrett Evridge, an economist with McDowell Group, an Alaska-based research firm.

In 2017, salmon was the most valuable fish group. Harvest of all five salmon species totaled more than $781 million in ex-vessel value, the amount paid to fishermen for their catch. However, Evridge notes that 2018 has been a disappointing year for many salmon fisheries, a statewide concern.

“Salmon across the state have come in weaker than forecast, particularly in the North Gulf of Alaska,” says Bert Lewis, the Central Region supervisor of the Division of Commercial Fisheries for the Alaska Department of Fish and Game (ADFG). “In the region I work, we saw some of the lowest returns of sockeye salmon in recent history with the exception of Bristol Bay, where we had the biggest run on record.”

The sockeye salmon harvest is estimated to be 37 percent of the recent ten-year average, making it the smallest since 1975—all other smaller harvests date back to the 1800s.

The “blob”—a warm water anomaly that washed into the Gulf of Alaska in 2015—is thought to be the culprit. With most sockeye salmon spending three years in the ocean, those returning this year initially swam out into warmer waters, which researchers speculate disrupted the food webs that support the salmon, decreasing their survivorship and resulting in poor returns this year.

“That concept is supported by the record return we saw in Bristol Bay, with close to 65 million sockeye returning that, in 2015, came out into the Bering Sea, which did not have this warm-water anomaly,” Lewis says.

However, poor harvests weren’t limited to sockeye: Chinook, chum, and pink numbers all came in low.

“In the Southeast, total salmon harvest will be about 30 percent of the recent ten-year average, due primarily to poor pink salmon run, since pink salmon usually make up most of the harvest,” says Steve Heinl, a regional research biologist for ADFG in Southeast.

“Pink salmon harvest is 19 percent of the recent ten-year average and the smallest since 1976,” Heinl says. “Pink harvest will be less than half of the harvest in 2016 [18.4 million fish], which spurred a formal declaration of disaster.”

Levels are well below ADFG’s forecast of 23 million pink salmon, though only slightly below the National Oceanic and Atmospheric Administration forecast of 10 million to 23 million.

As of late August, chum salmon harvest to date was 69 percent of the recent ten-year average; Chinook harvest was at 30 percent of recent ten-year average; and coho harvest was on track to be lowest in thirty years, says Heinl.

Though state numbers are low, harvest success varied dramatically among systems. In Southeast, there were excellent Sockeye runs at Chilkoot Lake and Redoubt Lake, which stood in stark contrast to poor runs in places such as Situk River, where the fishery was closed for most of the season.

Read the full story at Alaska Business

 

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

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

Alaska pollock industry: Trump’s China tariff exceptions help the Russians

September 20, 2018 — If president Donald Trump was hoping to get a pat on the back from the Alaskan pollock industry for keeping its re-processed fillets off the list of seafood products to receive additional tariffs when imported from China, he will be sadly disappointed.

Rather, thanks to some apparent confusion over the harmonized tariff codes, the administration’s exemptions appear to help the Russian pollock industry more, advises James Gilmore, the director of public affairs for the At-Sea Processors Association (APA), one of the loudest voices for Alaska pollock producers, in an email to Undercurrent News.

“If our interpretation is correct, Alaska pollock producers face stiff tariffs in China and Russia’s ban on US seafood imports, including Alaska pollock, remains in effect,” Gilmore said. “Meanwhile, our principal international competition—Russian pollock processed in China—enjoys tariff-free access to our domestic market.”

Gilmore’s comments follow closely those made by Fedor Kirsanov, the CEO of Russian Fishery Company, one of the country’s largest pollock quota holders, who told Undercurrent the trade war is helping to boost his prices.

Read the full story at Undercurrent News

Farm Bill provision would tilt school pollock, tuna purchases back to US

September 19, 2018 — US pollock and tuna harvesters don’t normally care much about the so-called Farm Bill, the massive, every-five-year legislation that helps to, among other things, preserve crop subsidies for American corn and soybean growers and nutrition programs for the unemployed. But they do this time.

That’s because Alaska Republican senator Dan Sullivan has placed a provision in one of the two bills now being worked out in a congressional conference committee that would force the US Department of Agriculture (USDA) to more aggressively enforce the “buy American” rules required for schools to receive federal reimbursement for the meals they serve to children, including fish.

The US pollock industry maintains that strapped-for-cash school systems aren’t following those rules, resulting in some 60% of the pollock they serve to be what they claim is less expensive and inferior, twice-frozen fillets sourced originally from Russia. They support Sullivan’s change.

“We are mindful of the need to maximize the use of federal dollars in procuring fish products for school meal programs and for school districts to maximize available school lunch foods,” said the At-sea Processors Association (APA), a group that represents six seafood companies that maintain interests in or operate 16 US-flag, high-tech trawl catcher/processor vessels in the Alaska pollock fishery, in a recent statement.

“However, it is similarly important to maximize the nutritional value of school lunch meals for children and to ensure that students’ early exposure to fish products is positive in order to promote incorporating more seafood meals into diets consistent with federal dietary guidelines.”

Read the full story at Undercurrent News

 

Pollock’s dodge of US tariff could leave market open to Russia

September 18, 2018 — Another round of tariffs on Chinese goods approved by U.S. President Donald Trump on Monday may have inadvertently left the market open to Russian-sourced pollock processed in China.

The tariffs, initially proposed in July, will go into effect on 24 September and affect an additional 5,745 products from China. While initially tariffs on frozen cod and pollock were planned, lobbying efforts by industry leaders successfully kept those items off the final list.

However according to Jim Gilmore, director of public affairs for the At-sea Processors Association (APA),  the wording of the exemption for Alaska pollock may leave the U.S. market open to Russia-origin pollock that is processed in China and shipped to the U.S.

The issue, said Gilmore, is the use of the term “Alaska pollock.”

“We believe this is an anachronism of a misleading geographical indicator remaining in use.  That is, the term ‘Alaska pollock’ is used to define Russian-origin pollock as well as U.S.-origin Alaska pollock,” he said. “If we are reading the situation correctly that the [a]dministration is not distinguishing between U.S. and Russian origin pollock in excluding two HTS Code lines from tariffs, then Alaska pollock producers continue to be disadvantaged in this trade war with China.”

The specific issue, said Gilmore, has to do with two HTS Codes: 0304.75.10 and 0304.94.10. Under the decision on 17 September, the door could be open for pollock of Russian origin and processed in China to enter the U.S. duty-free using those codes.

“If our interpretation is correct, Alaska pollock producers face stiff tariffs in China and Russia’s ban on U.S. seafood imports, including Alaska pollock, remains in effect,” Gilmore said. “Meanwhile, our principal international competition – Russian pollock processed in China – enjoys tariff-free access to our domestic market.”

Read the full story at Seafood Source

USTR cuts cod, pollock fillets from final China tariffs list

September 18, 2018 — The US Trade Representative (USTR) has excluded frozen fillets of Alaska pollock and cod from its final list of products to be hit with 10% tariffs.

According to a statement from the USTR, the tariffs will come into play on Sept. 24 at 10%, and then go to 25% on Jan. 1, 2019.

The proposed list (which you can see here), published on July 10, at the direction of US president Donald Trump, included the following customs codes, all of which have been omitted from the final list, which you can see in full here.

This will mean that cod and pollock from Alaskan fishing companies which is sold to China and brought back to the US as fillets will not be hit with the tariffs.

The tariffs still apply to around $200 billion-worth of Chinese products, the USTR said.

Still on the list is fillets of salmon, while other salmon products are also on the list.

Imported under the HS code 0304.81.50 and described “Other frozen salmon fillets”, fillets are of farm-raised salmon and wild salmon, such as sockeye and pink salmon. This will impact Alaska’s wild salmon fishery.

Read the full story at Undercurrent News