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Web posted Monday, January 6, 2003

Task force hears ideas on restructuring salmon fisheries

By Tim Bradner
Alaska Journal of Commerce

photo: focus

 
Setnetter Diane Fields picks sockeye salmon from her gillnet in Uyak Bay, on the west side of Kodiak Island.
PHOTO/Marion Owen/For the Journal

Alaska salmon fishermen and processors have hammered out a series of proposals to restructure their industry and help it survive in world markets awash with farmed salmon.

Committees of harvesters, processors and state legislators met over the summer to discuss their ideas and presented their proposals to the Legislature's Joint Salmon Industry Task Force at a meeting in Anchorage Dec. 15-16.

The task force, chaired by Sen. Ben Stevens, R-Anchorage, is likely to adopt some of the ideas and hold others for further study.

"I was happy to see the high level of commitment by legislators toward finding ways to help the salmon industry," said Tom Gemmell, executive director of United Fishermen of Alaska, the statewide association of fishermen.

"They're fully engaged, and they realize it is a long-term problem," he said.

Sen. Kim Elton, D-Juneau, a member of the task force, said the salmon problem is finally getting the attention it deserves. "For too long the economic problems in our fisheries have been below the radar screen for most Alaskans," Elton said.

Fishermen and processors reached a quick consensus on some ideas like more money for marketing, but agreement proved difficult on other proposals, such as streamlining regulations that now restrict vessels licensed to fish for salmon in one area from fishing in another.

Also, there was general agreement against the Board of Fisheries approving more salmon cooperatives. The board approved an experimental cooperative at Chignik last year and approved it again for 2003. By forming a cooperative, fishermen chose some boats to fish and some not to fish, with the profits from fishing shared with all fishermen who join the group. All other salmon fisheries are open to all fishermen who hold permits to fish in the region.

Legislators were urged Dec. 16 to pass a resolution asking the board to hold other applications for cooperatives until all of the effects of the Chignik cooperative are better understood.

The Chignik cooperative has stimulated a lot of talk about major changes in fisheries, Elton said. "It's important that we walk slowly on major changes like this, and let things settle in," he said.

"For example, the cooperative at Chignik may have been a success for most of the harvesters, but we need to understand the impacts on coastal communities, since cooperatives imply fewer boats fishing, less crew and less local economic impact," Elton said.

The task force will meet again Jan. 25 to adopt formal recommendations for state statute and regulation changes.

Two significant proposals include a new state requirement that all salmon caught be chilled to sustain quality while being stored for delivery to processors, and changes in laws and regulations that would make it easier for regional fishing fleets to reduce excess capacity in certain salmon fisheries.

Harvesters would be allowed to own more than one permit, or fractions of permits, which would make it possible to buy permits from others in the fishery, to reduce the number of boats fishing.

Similar efforts at "rationalization" have been made in the offshore pollock and cod fishery and are proposed now for crab fleets, but these involve appropriations of federal funds to do the buyouts.

Salmon fishermen say they can pay for the buyouts themselves but need changes in state laws to create the incentives to do it, legislators were told Dec. 15.

UFA's Gemmell said the mandatory chilling requirement to improve quality has long been needed. He said some processors require harvesters they buy from to chill their fish to better preserve them, but not all. Almost all pay a premium for chilled fish.

If the Legislature adopts the requirement, state loan programs may be expanded to help fishermen pay for refrigeration equipment they will need for their boats, Gemmell said.

Elton said that quality standards in the market are now being set by farmed salmon, and that to compete Alaskans will have to meet those high standards. "It's easy to sell a fish, but if a buyer has a bad experience with quality it's impossible to sell more fish," he said.

Another recommendation put forth by the task force committees is for a $5 million state general fund appropriation to the Alaska Seafood Marketing Institute, a state agency that coordinates marketing with funds provided by fishermen and processors, and federal export-assistance funds.

This year, due to depressed salmon prices, there won't be sufficient revenue from the 1 percent salmon marketing tax fishermen pay to support a domestic marketing program ASMI manages for Alaska salmon.

The state has put no significant general fund money into ASMI in over a decade, Gemmel said. Norwegian salmon farmers, in comparison, spend $50 million to $60 million per year on marketing, he said.

Another proposal is to streamline regulations so it is easier for fishermen to market their fish directly rather than selling to processors. Gemmell said with prices so low more fishermen have been selling directly; 38 percent more fishermen did it in 2002 compared with 2001, but the regulatory requirements are daunting for many since several state agencies get involved.

Another idea is to form an Alaska Seafood Commission to provide a vehicle for fishermen and processors working continuously on improvements to the industry rather than through occasional fisheries task forces.

The seafood commission would be modeled after the Alaska Minerals Commission, which consists of industry members who meet and prepare an annual report to the governor and Legislature on ways to encourage mining in the state.

Legislators were also urged to review inconsistencies in state fisheries tax policy.

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