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Web posted Sunday, January 9, 2005

Alaska's fisheries shined in 2004 with great press and good prices

By Laine Welch
For the Journal

Look behind the sensationalistic headlines surrounding Alaska's seafood industry - economic disasters, global competition, bycatch and waste, conflicting politics, consolidation and privatization - and what do you see? A vibrant industry that is the envy of every other fish producing country in the world.

Alaska boasts a fisheries abundance that is guarded with protective zeal by those entrusted with its care, and it is regarded by most as a model for conservation and sustainability.

Robust stocks continue to portend a rosy outlook for nearly all of Alaska's major fisheries - even as they are being retooled to bring them more in step with the times.

Here is a sampler of industry highlights from 2004:

Rationalization, revitalization and restructuring were the buzz words of 2004, as managers and policymakers continue to seek ways to winnow down fishing fleets and boost bottom lines.

Fleet reduction remained a major trend across the North Pacific, whether through fishing quota programs, cooperatives or federally funded buyouts. Buyout programs (which include vessels and their catch histories) were advanced for Bering Sea crab, groundfish, Bristol Bay driftnet and Southeast seine fisheries.

Alaska's salmon industry continued its slow rise from the ashes, brought about by its own good merit, unfortunate but timely events with competitors, and lots of state and federal dollars.

For the second year running, the value of the salmon catch (165 million fish, the ninth best) increased, and prices improved in many fisheries. The statewide harvest had a dockside value of $240 million, up $31 million from 2003. The increase in value stemmed from a strong harvest and improved prices for the higher-value species, namely king, sockeye and coho salmon.

The message that wild salmon is a healthier and more environmentally friendly choice made headlines almost daily in the mainstream media. At the same time, shocking reports of high levels of contaminants in farmed salmon had more customers demanding wild fish.

Similarly, mercury warnings surrounding canned tuna sent shockwaves through that mega-industry. Alaska found itself well poised to capitalize on the message that its fish are among the purest in the world.

Prices for Copper River salmon started at $5.50 a pound for kings and $3.25 for sockeye, some of the highest prices in recent memory, and an indication of the strong market for wild salmon.

Whole Foods, the world's largest natural and organic retailer, bought into the seafood processing business in Yakutat. A partnership between Alaska Airlines and NorQuest Seafoods delivered fresh salmon all summer to one of the East Coast's largest fish purveyors: Legal Seafoods.

Cheap and plentiful pink salmon also made some exciting new market inroads, thanks to appealing new products and aggressive marketing by majors like Trident and Ocean Beauty. A Valdez tourist promotion that gave away fresh/frozen pink salmon attracted more than 1,000 takers.

In a University of Alaska Fairbanks study, Chinese children overwhelmingly preferred fish powder made from Alaska pink and chum salmon over their more traditional carp.

More fishermen continued to create niche markets and sell directly to their own customers. State registries in the "catcher seller" category climbed from 563 to 714.

Atlantic salmon were given their own state fish ticket number so managers can track catches in commercial and sport fisheries: 666, the "number of the beast."

Homeland Security concerns prompted an unexpected cut- back on visas for foreign roe experts, catching Alaska's salmon industry off guard. It threatened a crippling price crunch for one of the most valuable seafood products - salmon eggs.

After several years of little or no growth, Alaska salmon producers began getting serious about fillets, the product demanded most by customers. The U.S. salmon market is among the largest in the world and is growing at an average 15 percent annually.

Salmon remained the third most popular seafood in the United States. The buzz that frozen is every bit as good as fresh fish bodes well for Alaska, meaning lower freight rates and less loss from spoilage.

Contrary to their complaining, most Alaska salmon fishermen said they had a positive outlook for the future. In a Sea Grant survey of more than 2,000 fishermen, nearly 52 percent said they had no plans to leave the industry and were looking for ways to stay competitive.

Eco-friendly fisheries were featured in more promotions all across the United States and Europe. Alaska pollock became the latest to merit a label from the Marine Stewardship Council. Halibut, black cod and Pacific cod also entered the "green" certification process.

High fashion designers hailed fish skin's softness and versatility. Dior sold pink salmon shoes, Givenchy showed a stingray purse on a silk cord for $1,620. Salmon bikinis and kilts were being marketed by the Scottish fashionista, Skini.

Alaskans in small coastal communities became eligible to buy quota shares of halibut and black cod through a new Community Entities Quota program.

Seafood favorites at the annual Symphony of Seafood in Chicago and Anchorage were Orca Bay's cod stew (cioppino), Ocean Beauty's salmon chorizo, Tom Jones' smoked salmon chili cheesecake and Trident's crab cakes.

A $100 million crab buyback program was botched when catch histories were mistakenly miscalculated by federal number crunchers. A second attempt successfully retired 25 boats from the Bering Sea crab fisheries.

Nonresidents continued to nab a huge portion of the jobs and wages in Alaska - especially in the seafood industry, which reflected a 71 percent nonresident hiring rate.

For the first time in 35 years, a U.S. Commission released a report on ways to preserve and protect the oceans. Fears that it would seek to revamp regional councils and move fisheries management to Washington, D.C., were largely unfounded.

For the second time since 2000, Western populations of sea lions increased, reversing a steady decline since the 1980s.

The name "Alaska Seafood" ranked second for recognition among the nation's top 500 restaurant chains, up a notch from two years ago (Oreo was No. 1).

The value of Alaska's 2004 halibut set a record at $168 million at the docks, up $3 million from the previous year.

Alaskans were furious when new Country of Origin Labeling (COOL) laws excluded canned and smoked seafood products. COOL is intended to help customers easily identify where their food comes from, and in the case of seafood, if it is wild or farmed.

Researchers began projects to find ways to stop whales from robbing huge numbers of fish from longline gear. Killer and sperm whales simply pluck pricey black cod, turbot and halibut off the hooks, leaving only the lips.

Reports surfaced almost weekly from around the world about the health benefits of omega-3 fatty acids found in fish - reducing risk of heart disease, breast cancer, Alzheimer's disease, depression, hyperactivity and aggressive behavior in children, to name but a few.

Americans ate a record 16.3 pounds of seafood per person, up from just 1 pound five years ago. Imported seafood accounted for 78 percent of U.S. consumption. Market analysts predicted per capita consumption will reach 20 pounds by 2020, requiring additional supplies of 4 billion to 5 billion pounds of fish.

State and federal reports showed that a whopping 40 percent of Alaska's total seafood catch is ground up and discharged back into the ocean under permits granted by the EPA.

For the 15th consecutive year, Dutch Harbor/Unalaska ranked as the nation's No. 1 port for seafood landings.

Seafood marketers were given the sales pitch of a lifetime when the Food and Drug Administration announced it will urge Americans to eat fish twice a week. That will force public institutions like schools and the military to purchase more seafood to comply with new federal dietary guidelines.

More than 40 licenses were approved for fish farmers to grow halibut and black cod (sable fish) in British Columbia. A University of Washington study revealed that an increase of just 1 million pounds of black cod on the world market would drive down prices to fishermen by 62 percent.

Citing concerns of food safety and a huge seafood deficit, policy makers announced intentions to expand U.S. fish farming five-fold by the year 2025. Legislation will be introduced this year to allow open ocean aquaculture in waters three to 200 miles from shore.

2004 year-end liners

Biggest fish story: Alaska salmon. Kudos to the state, processors and fishermen for cranking up the industry and getting out the goods.

Best fish assist: The mainstream media for making Alaska wild salmon the "poster fish" for purity and good health.

Biggest fish folly: The state's proposal to foul its fish streams by lifting the ban on industrial mixing zones.

Biggest fish blooper: The NMFS botching the math on the Bering Sea crab buyback.

Biggest fish defection: Kevin Duffy, departing as Alaska Department of Fish and Game Commissioner, to take the helm at the At-Sea Processors Association.

Best fish friend: Sen. Lisa Murkowski.

Best new fish product: Vital Choice Sockeye Salmon Oil Supplements, made from Bristol Bay reds.

Scariest fish story: Black cod farms in British Columbia and offshore fish farms.

Best salmon boosters: Camille Padilla of Sitka who persuaded Middlebury College in Vermont to feature only wild salmon in its dining halls. Dan Rohrer who features pink salmon sandwiches at his two Subway restaurants in Kodiak.

Kodiak-based freelance writer Laine Welch can be reached via e-mail at msfish@alaska.com.
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