Saving Seafood

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

NFI president: American jobs are fueled by international trade in seafood

September 13, 2018 — The US’ National Fisheries Institute (NFI) has joined ‘Americans for Free Trade’, a multi-industry coalition aimed at opposing tariffs and highlighting the benefits of international trade.

Over 80 US trade associations representing thousands of businesses and workers announced the formation of the group, which will immediately join Farmers for Free Trade, the coalition backed by the nation’s largest ag commodity groups, in a multi-million dollar national campaign called Tariffs Hurt the Heartland.

The campaign will focus on telling the stories of the American businesses, farmers, workers and families harmed by tariffs through town-hall style events, grassroots outreach to Congress and the administration, social media, rapid response and digital advertising.

The campaign includes a geographically searchable map (TariffsHurt.com) that allows users to find stories of job losses, deferred investments, higher prices and other negative consequences for farmers and businesses in communities across the country impacted by tariffs.

Read the full story at Undercurrent News

Russia’s biggest MSC certified fishery reconfirms sustainability

September 5, 2018 — The following was released by the Marine Stewardship Council:

In a milestone development, the Russian Pollock Catchers Association’s Sea of Okhotsk Pollock fishery has received Marine Stewardship Council (MSC) certification for a second time. Once again confirmed as sustainable and well-managed, the fishery’s catch can carry the blue MSC label.

The fishery is one of the world’s largest suppliers of Pollock from the North Pacific, serving over 20 countries across five continents. Every five years MSC certified fisheries have to go through the full assessment process again to ensure they are continuing to meet the MSC Fisheries Standard. The assessment was carried out by third-party conformity assessment body Acoura Marine.

Continuous improvement

The Pollock Catchers Association (PCA) first obtained MSC certification in 2013. The fishery was given 8 conditions – improvement areas to address during the five-year certificate period – and all of these were closed. Three conditions were aimed at improving the scientific basis of stock assessment and fishery management and were met successfully. Another three conditions concentrated on minimizing the fishery’s impact on the Sea of Okhotsk ecosystem, including fishing operations’ interaction with Endangered, Threatened and Protected (ETP) species. Two further conditions were set for the management process. Closure of these conditions has led to greater transparency and closer involvement of stakeholders, including environmental NGOs.

Camiel Derichs, Director MSC Europe said: “Congratulations to the Pollock Catchers Association (PCA) on their recertification. Over the past five years, the PCA, scientists, management and NGO actors in Russia have worked hard to address the conditions placed on the fishery, resulting in real improvements. The progress achieved was recognised in the re-assessment, where the PCA received higher scores than previously for many assessment indicators.”

“As the only global wild capture fisheries standard meeting the ISEAL codes of good practice, the MSC reviews its standards every five years in light of progressing science and management best practice. As a result of the last Fisheries Standard Review (FSR), the MSC has adopted a new standard (version 2.0). Over the course of their new certification time frame, we hope the PCA will continue to make improvements to ensure a smooth transition to this new version of the MSC Standard,” he continued.

Read the full release here

Tariffs set to take toll on Alaska seafood exports and imports

August 30, 2018 — More seafood tariffs in Trump’s trade war with China are hitting Alaska coming and going.

On July 6, the first 25 percent tax went into effect on more than 170 U.S. seafood products going to China. On Aug. 23 more items were added to the list, including fishmeal from Alaska.

“As of right now, nearly every species and product from Alaska is on that list of tariffs,” said Garrett Evridge, a fisheries economist with the McDowell Group.

Alaska produces more than 70,000 metric tons of fishmeal per year (about 155 million pounds), mostly from pollock trimmings, with salmon a distant second. The pollock meal is used primarily in Chinese aquaculture production, while salmon meal goes mostly to pet food makers in the U.S.

In 2017 about $70 million worth of fishmeal from Alaska pollock was exported to China from processing plants all over the state.

Read the full story at the Alaska Journal of Commerce

Russian Investors with No Crab History Closer to Grabbing Share of Lucrative Crab Quotas

August 29, 2018 — SEAFOOD NEWS — The Russian red king crab fishery is the most valuable crab fishery in the world, and has long attracted the attention of poachers, oligarchs, and the Russian government.

For years the government has waged a campaign against poaching, which was often undermined by bribery of border guards and local officials.  However, poaching is less of an issue now because, first, the Russians increased the quotas to allow more legal harvest, and second, the legal harvesters began pushing for enforcement as well, to protect their products from cheaper competition.

Russia has a ten year cycle for crab quotas, and another auction is coming up.

Ten years ago, to bid in the auction companies needed to demonstrate a history in the fishery.

Subsequently, the Russian government has targeted investment in domestic processing and ship building as a key national objective to be obtained through trading awards of fish quotas to companies who make investments.

The Russian Fishing Company, associated with Gleb Frank, a close advisor to Vladimir Putin, has taken advantage of this to raise funds for a number of Russian built pollock trawlers and domestic processing plants.

Other oligarchs have also come into the fishing business as fishing is one of the fastest growing Russian agricultural segments, and investments are not hindered by international sanctions.

Salmon and trout producer Russian Aquaculture is the largest player in the Russian fish business with a 22% market share and is growing fast. The partners of Russian oligarch Roman Abramovich acquired 25% in South Sakhalin fishing company Poronay, while Agama RT bought 49.99% in Russian Cod, controlled by a subsidiary of Russian Industrial Fish Company (RRPK) of Gleb Frank, the son-in-law of oligarch and Kremlin insider Gennady Timchenko.

Reportedly it was Gleb Frank’s RRPK which suggested to Vladimir Putin to redistribute crab quotas through auctions in autumn 2017, unnamed market participants told the Russian Vedomosti newspaper. RRPK has entered the market recently and spent a record-high RUB10bn on crab fishing quotas in May 2017.

The government could raise additional RUB 80bn-200bn from auctioning the quotas the state fishing agency Rosribolovstvo estimated, according to Tass.

Traditional participants in the Far East Crab industry fear getting cut back.  The governor of Primorsky region warned Putin that the local communities would suffer if this proposal is adopted. ‘Fishing Villages don’t have the money to go out and buy quota,” he said.

Further Far East companies have invested over $2 billion US in quotas from 2001 to 2017, and withdrawing quotas from these companies would lead to disruption of operations and investments by regional players.

The war over crab quotas has played out among different Russian Agencies, in particular with Rosribolovstvo the fisheries agency supporting quota auctions, and the FSB, the federal investigative service, attacking foreign ownership and trying to discredit or force sales from some previous quota holders.  The FSB has generally been thought to be attacking existing companies to force them into a situation where they can be bought by new Russian buyers.

It now appears that the government is going forward with awarding 50% of the quota in the upcoming crab auctions to “investors” without prior fishing history as a requirement.  This was announced officially as a government decree, according to the Vedomosti Daily.

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