Alaska

Twenty years ago Alaska was the world leader in salmon production but it was relegated to the bottom of the league by the rapid growth in salmon farming.

Before it bounces back, however, a word of warning from Marc Jones, executive director of the Alaska fisheries development foundation. He told World Fishing that, in his personal view, this [Albany University study reported in Science] funding research is "directed at undermining consumer confidence". He thinks consumers can be slow to distinguish subtle differences between sources. Rather than choosing wild salmon over farmed, the choice may be to forego all kinds of salmon. "The net effect [may be that] all salmon production is hurt, not just farmed salmon", he said.

Further, many key companies in the Alaskan salmon industry are also involved in processing farmed salmon products. Their economic health are probably necessary for the Alaskan wild salmon industry to survive. Yet, the fact is, it has been the rapid expansion of farmed salmon which drove down Alaska's most important wild fishery sector.

Wild plunge towards farmed

Alaska landed 302,600 tonnes of salmon in 1990 worth $559 million. In 2002, the volume of Alaska's wild harvest had plunged to 238,000 t and its value plumbed the depths at $130 million. To make things worse, the value of a dollar in 2002 was far less than it had been in 1990, according to Labor Economist Neal Gilbertsen in Alaska Economic Trends.

Processors prefer farmed salmon for its 'competitive advantages', though those may not now be so competitive if the toxin row hits consumer confidence hard. Farmed fish is available fresh all year round. Production, size, colour and machine processability can be planned for logistical delivery to suit onward processor, food factory, supermarkets, corporate canteens and restaurant chains who want supply to meet demand, on demand.

In contrast, because of the natural variability of environmental conditions such as El Nino, the total number of wild adult fish returning to spawn may vary and the commercial wild harvest fluctuates organically and naturally year on year.

There is no doubt that farmed salmon have created a new source of supply in the world, increasing the offer and leading to a decrease in price. But this has also hit Alaska's wild salmon, since the latter's ability to influence prices has weakened as its global share of the market has declined.

Real jobs for wild men and women

Interestingly, however, Alaska's commercial salmon fishery, despite reduced jobs, is still the largest employment sector in the state, with thousands making their living from harvesting and processing. Just as important, is that it is the main economic driver for many small Alaskan communities along the state's 6,640 miles of shoreline (that includes islands).

According to the Commercial Fisheries Entry Commission (CFEC), 74 per cent of all fishing permits issued in 2002 were related to salmon, similar to the 72 per cent registered in 1990. However, in 1990, there were 10,487 individual permit holders fishing for salmon in Alaska. The 6,567 licenses issued in 2001 showed a drop of 37 per cent

So, while the figures may show employment generation is still very important, they also give us an idea of the reduction in the number of vessels fishing for salmon. Different reasons, such as management measures, can partially explain this reduction.

But the fact is, low prices paid for wild salmon caused fishing incomes to drop and many fishermen were forced to leave the industry or left voluntarily.

Since farmed salmon now dominates the world market, it sets the world salmon price. This large supply and predictable availability have marked the sea change from the 1970s and 1980s. In that period the dominance of the wild harvest meant that years of abundance led to lower unit prices. In years with low harvests, fishermen won higher prices. So, in that context, even variations in catches were at least partially ironed out by variations in unit value.

However, one side-effect of the farmed boom was that Alaska's average monthly seafood processing employment figures fell from 11,200 in 1992 to 7,400 in 2002 . Some multinational firms have quit Alaskan salmon fisheries to invest in Chilean and Canadian companies. Others have kept their Alaskan factories but have also invested in aquaculture production.

Whose eating & biovalue profit?

While in 1980, farmed salmon accounted for only one per cent of world salmon production, by 1992 the figure was 32 per cent and by 2002, 60 per cent of global production came from aquaculture.

Japan, where 90 per cent of the salmon consumed once came from Alaska, has switched to farmed salmon and today 70 per cent of that comes from Chile.

For 2003, Alaskan catches were high, but average salmon prices are still depressed. According to economist Chris McDowell, the pink salmon harvest exceeded its estimate by 32 per cent .

But other species as Chum salmon were below expectations.

However, the crisis facing Alaska's salmon industry (i.e. before the present fishmeal toxins row) has more to do with value than with volume.

Alaska has a biologically-sustainable salmon fishery and it is the only salmon fishery in the world to obtain the Marine Stewardship Council certification.

Escaping fish hold the future

There are three main initiatives underway to improve the profitability of the Alaskan salmon harvest. The state government has set up a broad taskforce, including consumers, to evaluate potential improvements through changes in laws and regulations. Several draft bills are in process and more than $50 million will be available to fund local fisheries development and marketing. The first round of projects is being considered. The federal government has given another $8 million for marketing grants, through the new Alaska Seafood Marketing Board.

Alaska's fisheries managers are extremely pre-occupied by the goal of 'fixed escapement'. The aim is to ensure sufficient numbers of adult salmon escape capture in the ocean so they can spawn in the rivers, maintaining the long-term health of the stocks.

Licenses are rigidly controlled through a system known as 'limited entry'. No new licenses are issued, in order to maintain sustainability. Purse seines and gillnets must be constructed of multifilament mesh, rather than the less visible monofilament.

Harvest policies, regulations and allocations are set by the Alaska Board of Fisheries (ABF) and then the Alaska Department of Fish and Game (ADFG) enforces. There are 15,000 salmon steams controlled throughout the state, and the ADFG carries out biological research.

Alaska produces more than 50 per cent of the wild seafood caught by the US. In addition to salmon, Alaska lands more than one million tonnes of pollock and it brings home the majority of pacific halibut and king crab. There are also cod, sablefish, herring roe and snow crab fisheries. The groundfish industry lands sole, flounder and rockfish, and most of Alaska's fisheries are reported to be stable and sustainable.

The wild industry must be jumping -- not just the salmon.