Saving Seafood

Senator Collins Urges Senior Administration to Develop Gray Zone Fishing Agreement with Canada

April 9, 2019 — SEAFOOD NEWS — Senator Susan Collins of Maine, a senior member of the Appropriations Committee, took issues affecting Maine’s lobster industry to the Commerce Appropriations Subcommittee hearing this week – specifically the “Gray Zone” and the ongoing trade war with China.

The Gray Zone sits approximately 10 miles off the coast of Maine, around Machias Island. Canadian and Maine lobstermen both work in the area, but do not follow the same regulations, which has caused disputees. Maine Lobstermen mark the tails of egg-bearing females and return them to water in an effort to allow them to lay eggs and continue reproducing. Maine lobstermen also abide by size limits, and toss back oversized lobsters to keep the stock strong. Canada lobstermen do not have to follow the same conservation measures, so those notched and oversized lobsters are able to be caught by Canadian lobstermen just yards away.

“Each country manages their lobster and other fisheries in that area through separate and often conflicting regulations,” Senator Collins explained. “The implications of these regulatory discrepancies are very concerning and very unfair to Maine’s lobstermen.”

Dr. Neil Jacobs, Under Secretary of Commerce for Oceans and Atmosphere, committed to working with Senator Collins to “explore the possibility of developing a fisheries management agreement between the U.S. and Canada that would provide for cooperative management of the Gray Zone.”

Besides the issue with the Gray Zone, Senator Collins also spoke out on the ongoing trade war with China, urging the Senior Administration to make some progress with the dispute.

“The retaliatory tariff of 25% that China has levied on U.S. lobster has been very detrimental to the industry,” explained Senator Collins. “What is the status of the trade talks with China, and what hope can you provide to my lobster exporters who are struggling day in and day out, having lost that very lucrative market to our Canadian neighbors?”

While no guarantees were made, Gil Kaplan, Under Secretary of Commerce for International Trade said that they have been “making progress” and are “optimistic about an agreement.”

This story was originally published on SeafoodNews.com, a subscription site. It is reprinted with permission.

US proposes tariffs on European Union goods, seafood products considered

April 9, 2019 — The administration of U.S. President Donald Trump announced on Monday, 8 April, it will consider adding new tariffs on products from the European Union, and seafood imports are on the list for potential duties.

The action stems from a World Trade Organization ruling that stated E.U. illegally subsidized airplane-maker Airbus, creating an unfair trade advantage. As a result of that ruling, the U.S. is contemplating tariffs on USD 11 billion (EUR 9.76 billion) in goods from the 28 member nations in the union.

“The E.U. has taken advantage of the U.S. on trade for many years,” President Trump tweeted on Tuesday morning. “It will soon stop!”

The announcement from Office of the U.S. Trade Representative gives a list of nine products from four E.U. members. The products include helicopters, aircraft, fuselages, and associated parts originating from France, Germany, Spain, and Great Britain.

However, a second list of products the Trade Representative is considering includes products from all member nations. The products include salmon fillets, swordfish steaks, crabmeat, clams, scallops, and other seafood items.

Read the full story at Seafood Source

China bought lots of Florida lobster despite tariffs. Keys fishermen paid the price

April 5, 2019 — Chinese importers bought Florida spiny lobsters in what could be near-record numbers this season, despite a 25 percent tariff their government placed on U.S. seafood last July, according to the leading Florida Keys commercial fishermen’s trade group.

That’s great news considering the fear commercial anglers had about the potential impact of growing U.S.-China trade hostilities on one of South Florida’s largest industries.

“Going into the season, the big questions were: Will the Chinese buy? How much and at what price,” said Bill Kelly, executive director of the Florida Keys Commercial Fishermen’s Association. “The Chinese did buy, at near historic levels.”

Read the full story at the Miami Herald

Tariffs force Alaska seafood industry to look beyond China

April 1, 2019 — Chinese tariffs are forcing Alaska’s seafood industry to look for markets beyond the Asian giant, according to an industry marketing organization.

The Alaska Seafood Marketing Institute is exploring how to expand the state’s seafood brand in response to a 25 percent tariff on Pacific Northwest seafood imposed by China in summer 2018, the Kodiak Daily Mirror reported Wednesday.

Alaska’s seafood sales are off by more than 20 percent so far this year and could take a big hit in China, said Jeremy Woodrow, the institute’s interim executive director.

“Because of the conflict, it makes our product less competitive in that marketplace,” Woodrow said.

A $5.5 million, three-year federal agricultural trade promotion grant awarded in January will be used to develop nontraditional markets such as Japan, Southeast Asia and parts of South America, according to Woodrow. The funds will also aid continued marketing in China and other established markets such as Germany, he said.

Read the full story at the Associated Press

China faces big decision on WTO reform deal

March 28, 2019 — The pressure is on this month as negotiators seek to find common ground and to advance the cause of a World Trade Organization agreement on fishery subsidies by the end of the year.

The WTO Director-General Roberto Azevêdo has said subsidies by member states for fuel have contributed to overfishing, and illegal and unregulated fishing. He called it “one of the important issues of our time.”

An estimated USD 20 billion (EUR 17.8 billion) is paid out annually to subsidize the cost of fuel that allows vessels to operate thousands of miles from home. The bulk of the subsidies are paid out by a handful of nations, and around 85 percent of the figure goes to large-scale industrial fleets, rather than smaller near-shore artisanal fisheries.

The pressure was ramped up in 2015 when all United Nations member states agreed Sustainable Development Goal 14.6 to eliminate or prohibit harmful fishery subsidies by 2020. The goal was a priority for developing countries depending on the sea for protein.

There are some reasons for optimism – the WTO director general told a WTO plenary in February that progress had been made in the negotiations among the technocrats. But he said now is time for high-level political commitment to get the deal done.

Read the full story at Seafood Source

Trump says tariffs will continue on Chinese imports

March 21, 2019 — U.S. President Donald Trump announced on Wednesday, 20 March that U.S. tariffs on imported products from China would continue, even as the two countries make strides toward resolving their trade issues.

Earlier this month, media reports indicated Chinese and American officials were close to a deal that would repeal the levies in exchange for China agreeing to purchase additional products. However, Trump’s comments to reporters outside the White House seemed to contradict, or at least dampen, those expectations.

“We’re talking about leaving them (on) for a substantial period of time,” Trump said. “We have to make sure that if we do the deal with China that China lives by the deal. Because they’ve had a lot of problems living by certain deals.”

The current trade war has hit the seafood industry particularly hard on both sides as China introduced a 25 percent tariff on American seafood imports last year, and the U.S. countered by hiking its tariffs on Chinese seafood imports by 10 percent.

The seafood industry has just been one of many that have suffered over the past year as a result of the tariffs. According to a report from four college economists published this month by the National Bureau for Economic Research, imports from targeted counties, not just China, dropped by nearly 32 percent, while American exports slumped by 11 percent. The end result being a USD 7.8 billion (EUR 6.9 billion) loss.

Read the full story at Seafood Source

Despite trade war obstacles, seafood producers find growing opportunity in Asia

March 20, 2019 — Seafood producers that have achieved meaningful sales volumes in domestic markets have been enhancing revenues and sparking enterprise growth through exports and brand penetration in foreign markets, especially Southeast Asia.

In this regard, there are numerous opportunities to broaden sales of already popular products, satisfy demand for products that may not have a thriving market at home, and introduce new species and value-added products to offshore audiences eager to try new seafood options.

Of course, identifying export opportunities and establishing a sustainable presence demands considerable effort on the part of the exporter. Belle Cove, a producer of Maine lobster, has found that North American shellfish, including lobster and snow crab, are very popular in Asian markets.

“The biggest challenge is identifying and qualifying prospective importers,” said Grace Phillips, the sales director for Belle Cove. “Those companies may not have a website or much information on the internet, so it can be difficult to do any meaningful research. We participate in trade missions and exhibit at trade events to meet pre-screened buyers.”

The Alaska Seafood Marketing Institute ASMI has taken a more proactive and informative approach. By positioning ASMI-backed products – including salmon, pollock, crab, and cod – as sustainably managed and wild-harvested, and subsequently promoting these attributes to different market sectors (consumer, foodservice, retail), the organization has successfully maintained a presence in Asian markets, primarily Japan and China, for more than 20 years.

Read the full story at Seafood Source

 

Alaska’s seafood industry says the U.S.-China trade war is costing it dearly

March 1, 2019 — The trade war with China is impacting Alaska’s seafood industry. Alaska seafood exports to China have dropped by a fifth compared to last year.

Alaska Seafood Marketing Institute’s Jeremy Woodrow told the Alaska House Fisheries Committee Wednesday that the industry blames Chinese tariffs. That’s according to a recent industry survey.

“Of the members that responded back to us, 65 percent reported they had immediate lost sales from the increase of these tariffs, 50 percent reported delays in their sales, and 36 percent reported that they lost customers in China just due to these tariffs” Woodrow explained. “Another 21 percent reported that they had unanticipated costs because of the trade conflict.

Alaska sold nearly $800 million of seafood to China in 2017. Not all Alaska seafood is bound by the Chinese tariffs imposed in retaliation to the Trump administration’s own tariffs on Chinese goods. Flatfish like flounder are subject to tariffs though Alaska pink salmon processed in China and re-exported are not.

But Woodrow said poor relations between the two countries makes some Chinese buyers reluctant to buy Alaska seafood anyway. China is Alaska’s largest foreign market and Woodrow warned that finding new outlets will take time.

Read the full story at KBBI

While global tilapia production increases, US imports fall

February 4, 2019 — Tilapia production globally has steadily increased over the past decade – with 2018 production estimated at nearly 6.3 million metric tons (MT) – yet U.S. imports were forecast to likely be at their lowest level in several years.

The data, shared at the Value Finfish panel during the 2019 Global Seafood Market Conference in Coronado, California earlier this month, estimates that the U.S. imported around 300,000 MT of tilapia in 2018. That’s significantly lower than the 500,000 MT high in 2012.

“Through October, through 2014, things have been on a pretty steady decline,” Todd Clark of Endeavor Seafood said.

The declines are clear in U.S. broadline sales, with virtually every commercial category having a steady three-year decline in sales. Commercial medium chains, representing chains with between 100 and 249 units, fell the most with a 46 percent drop in sales. Non-commercial restaurants, which make up the largest share of tilapia purchasing at over 14 million pounds, dropped six percent.

“Each one of those categories has been on a steady decline,” Clark said.

Read the full story at Seafood Source

USDA confirms major US pollock purchase

January 25, 2019 — A USD 30 million (EUR 26.5 million) commitment from the United States government to buy Alaska Pollock will help mitigate the effects of the U.S.-China trade war on producers.

Due to the U.S. government shutdown, the U.S. Department of Agriculture notified the Association of Genuine Alaska Pollock Producers (GAPP) via phone that it will soon publish a solicitation so that Alaska pollock suppliers can bid on USD 30 million worth of deliveries to food banks across the country.

The USD 30 million solicitation is in addition to the USD 7.6 million (EUR 6.7 million) that USDA is already purchasing to support the National School Lunch Program, GAPP CEO Craig Morris said.

Morris said the purchase was a win for the U.S. pollock sector.

“We should be really proud that people who are in need are going to get a really nutritious product, and it is great for our industry, which has had challenging times,” Morris said. “There is a lot of demand for our product and this announcement … shows that we are going to have even more demand than a couple of days ago.”

Last fall Alaska legislators pushed for the USD 30 million (EUR 26.5 million) purchase to help offset losses from the U.S.- China trade war, and the news is finally official.

Read the full story at Seafood Source