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Web posted Friday, May 21, 2004

Fresh or frozen, filets jump-start Alaska salmon industry

By Laine Welch
For the Journal



 
Lanie Welch

Alaska salmon is finally being delivered to American consumers in the form they want: fillets. And the buzz is out that frozen is every bit as good.

For years we've all seen supermarket retail counters piled high with glistening, boneless/skinless salmon fillets - grown in foreign fish farms, mostly from Chile. But until recently, nearly all of Alaska's salmon catch has been turned into its more traditional, lowest value product forms - cans or frozen whole. American consumers have turned toward the more convenient fish portions that they can quickly pop into the oven or microwave.

The U.S. salmon market is among the largest in the world and is growing at an average 15 percent annually. Fillets account for nearly all salmon import growth in the U.S., according to the Salmon Market Information Service. The SMIS reports that imports of salmon fillets grew a whopping 350 percent between 1997 and 2003, while imports of all other salmon products combined grew just 13 percent. Frozen fillets accounted for 25 percent (77 million pounds) of U.S. salmon imports in 2003 - the third year of increase in a row and the highest volume ever.

After several years of little or no growth, Alaska salmon producers are getting serious about fillets. The state Department of Revenue reports 14 million pounds of fillet production in 2003 - 12.9 million pounds frozen and 1.2 million pounds fresh. That's 4 million pounds higher than 1998-2002 averages, and well above the 1999 peak of 11.7 million pounds.

The notable trend toward the frozen product is an exciting turn for Alaska in the U.S. market. Studies show that Americans are showing a growing acceptance of frozen salmon - and Alaska is poised to take advantage of the chance to get fresh/frozen fillets to markets cheaper and with less risk of spoilage. The SMIS said September-December sales of frozen salmon fillets nearly doubled, from 3.2 million pounds to 5.9 million, and the price was up for every species. The total value grew from $5 million to $11 million.

Roe rage

One of the most lucrative parts of many fish are their eggs, or roe. That's especially true for Alaska salmon. The Salmon Market Information Service reports that the total value of roe sales declined from $37 million to $35 million on slightly higher sales volume. The average price of chum roe dropped from $8.60 to $7.22 per pound. Pink roe showed some improvement, up from $3.59 to $3.95 per pound. The net effect for the September-December period was a 9 percent decline in the all-species price per pound of Alaska salmon roe.

Prices could take a further pinch if Japanese roe technicians are not able to get visas to work in Alaska plants this summer. A reduced cap on foreign visas imposed by the Homeland Security Department was reached several months ago. Now, Alaska seafood companies find themselves without the highly specialized, temporary workers needed to grade many levels of salmon roe. Without their stamp of approval, Alaska salmon roe will lose the Japanese market.

Sen. Lisa Murkowski has been joined by at least 14 other lawmakers to get immediate approval for salmon roe technicians to be covered under "agricultural labor" visas. Alaska processors have asked United Fishermen of Alaska and others to support the effort by faxing letters to: Citizenship and Immigration Service (CIS) Director Eduardo Aguirre at (202) 305-0134. It's estimated that $40 million to $50 million will be lost to the Alaska salmon industry without the Japanese salmon roe technicians.

Copper River kicks off

Meanwhile, the Copper River salmon fishery was set to "officially" launch Alaska's salmon season starting at 7 a.m. on Monday, May 17. Early indications peg some good news for salmon prices. KTUU-TV reported on Friday before the opener that Copper River Seafoods posted a price of $5.50 a pound for kings and $3.25 for sockeye (red) salmon. Some fishermen said it's the highest price in recent memory, and an indication of the strong market for wild salmon, after recent negative reports about contaminants found in farmed fish.

"We have lots of buyers that are out there that support us, and a few specifically that feel like the price is justified," said Scott Blake of Copper River Seafoods.

Prices to fishermen usually drop like a stone after a few openers. "It has yet to be seen what the other buyers will do. The first opener is a free-for-all and every processor will more than likely bump up the price to fill their orders. Time will tell," said fisherman Bill Webber. The state Department of Fish and Game predicts a run of close to 900,000 sockeye and 40,000 kings.

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

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