“In the five years immediately preceding rationalization, the Southwest (Alaska) region's crab fishery averaged 479 jobs over those four months,” state labor economists reported in the December issue of Alaska Economist Trends.

“The 2005 fishery, under rationalization, produced a monthly average of 303 jobs,” wrote economists Dan Robinson and Neal Gilbertsen.

The effects of the newly implemented Bering Sea and Aleutian Islands federal crab fisheries rationalization program, which created a quota-based fishery and an associated vessel buyback program, began to register in 2005, the economists said.

“The fishery shed 74 jobs in 2005, which amounted to a 14.3 percent over-the-year decline, but because the program was not implemented until Aug. 15 of that year, the preceding January's opilio crab harvesting employment was unaffected,” the report said. “The September 2005 through December 2005 employment numbers, which are largely based on the Bering Sea/Aleutian Islands red king crab fisheries, serve as a better indicator of the changes taking place as a result of rationalization.”

Predictably, rationalizing the crab fishery lowered employment dramatically in the peak month of October and raised employment levels in November and December of 2005 as harvesters with quota shares no longer were in a race to fish and took longer to harvest their quotas, the report said. In the old days of the so-called derby fisheries, the overall allowable harvest quota was sometimes reached in just a few days, so that employment in the lucrative red king crab fishery ended quickly.

Supporters of the crab rationalization program are quick to praise the program for its safety attributes, noting that no lives were lost in this dangerous fishery in 2005. Opponents of crab rationalization say it has been economically devastating to many who lost jobs as skippers and crew members.

Just 81 vessels registered for the red king crab fishery that began last October, compared to 89 vessels registered for the 2005-06 season, the first under crab rationalization. In the days before crab rationalization began, an average of 230 to 260 vessels participated in the fishery, according to Forrest Bowers, the state's area management biologist for shellfish at Dutch Harbor.

The jury is still out on the overall economic effect of crab rationalization on communities like Kodiak, home to a number of fishermen who lost jobs in the red king crab fishery when vessel owners chose to use fewer vessels to harvest their quota or to lease their quota to other vessels. University of Alaska Anchorage economist Gunner Knapp delivered his initial report on the economic effects of crab rationalization last March in Kodiak, saying it was too early to draw any firm conclusions.

Deborah King, an economic development specialist with the Kodiak Chamber of Commerce, said Dec. 29 that, to date, job changes in the crab industry have not had a substantial effect on city sales tax collections in Kodiak.

Boxes of Russian-caught king crab line the shelves at an Anchorage Costco store in late December. The cheaper crab have brought down prices for Alaska product. AP PHOTO/Paul Dennler/City of King Cove, Aleutians East Borough

Still, King said at the chamber's last board meeting that they heard reports from the Brother Frances shelter and The Livingroom, a faith-based organization that provides food and shelter during the day. “They said their requests for assistance have increased tenfold, based on their requests for assistance last year,” King said.

One reason for increased demand for assistance is a lack of much overtime work at the area's canneries, and another is the skyrocketing cost of heating fuel, she said.

The crab industry itself was also raising concerns, because fuel costs were up and competition from king crab caught in Russian waters was bringing prices for Alaskan crab down.

Industry consultant Steve Minor said the silver lining was that when prices are down, they bring more new people into the market to buy crab. “You just don't want to see these prices last forever,” Minor said.

Crab broker Rob George said that wholesale prices, averaging about $10 a pound, not including shipping, were down close to $3 from a year ago. But that he has sold more frozen Alaskan king crab this season than he has in the past, including 10 to 15 wholesale restaurant customers who in the past only purchased fresh crab.

George, like many retailers and restaurant chefs, prefer Alaska-caught crab to Russian for the consistency of quality.

“All the crab delivered to Russia is processed at sea,” he said. “When you start processing crab at sea, you don't have the luxury of city water. There is no traceability of who even processed the crab. You have inconsistency of quality.

“You may open a box and say this isn't that bad, and four days later you may open another box and you want to spit it out because it is so salty,” he said.

“I think chefs and high-end retailers want Alaska king crab; you just can't beat the quality,” he said.

Anchorage retailer Skip Winfree, owner of 10th & M Seafood, said his store sold only Alaskan king crab throughout the holidays. “Sales have been as brisk as usual,” Winfree said. While the walk-in traffic orders range from 2 1/2 to 5 pounds, many people order 20 to 40 pounds, he said.

While retailers like 10th & M filled a lot of company holiday gift orders, a number of 20-pound boxes of Russian king crab were also moving out of the freezer section of Costco for $193.20. The boxes, bearing a Pacific northwest company label, were clearly labeled as Russian king crab and moved fast in the days before the new year.