Economic Impact

September 13, 2012 — Catches of cod, haddock, several kinds of flounder and other groundfish have fallen so low that the secretary of commerce on Thursday declared a disaster for the Northeast's commercial fishery.

The disaster declaration applies to groundfish fisheries in Maine, Massachusetts, Rhode Island, New Hampshire, New York and Connecticut, making fisheries in those states eligible to receive federal disaster assistance, pending congressional approval. It applies to cod, haddock, redfish, American plaice, pollock, white hake, ocean pout and three kinds of flounder — yellowtail, winter and windowpane.

In Connecticut, the declaration applies to the small remaining groundfish fishery based in Stonington, said David Simpson, director of marine fisheries for the state Department of Energy and Environmental Protection. Most of the vessels ported in Stonington fish for lobster or scallops, or have shifted from groundfish to species such as squid and whiting.

The main species of groundfish still caught by Connecticut fishermen are yellowtail flounder, cod and winter flounder, Simpson said.

"A little bit of assistance coming our way for our small groundfishery would be great," Simpson said.

In an Aug. 23 letter to Rebecca Blank, the acting secretary of commerce, Gov. Dannel P. Malloy requested the disaster declaration, noting that although the state's groundfishery is small, it has declined sharply. Figures included in the letter show that in 2010, the value of the groundfish catch landed in Connecticut was only $13,316, down from $176,088 two years earlier. Connecticut-registered vessels landed an additional $55,881 worth of groundfish in other states, mainly Rhode Island and New York, in 2010, down from $358,968 in 2008.

For all of New England, groundfish landings totaled $83.3 million in 2010, compared to $90.1 million in 2008.

In his letter, Malloy lists climate change as a main cause of population declines of flounder, a species that favors colder waters. The decline has caused groundfish fishermen to shift to species such as monkfish, scup and summer flounder, Malloy wrote, increasing pressure on those fisheries.

Alan Chaplaski, a Stonington fisherman who owns the vessel Neptune, said he quit fishing for flounder several years ago as restrictions on the fishery cut his landings severely. His vessel now catches mainly squid and whiting.

He said there are only a couple of vessels in Stonington that still land groundfish part time, and fish for other species the other times.

 

Read the full story in The Day

 

 

BOSTON — September 14, 2012 — The US Commerce Department has declared a disaster in the Northeast groundfishing industry for the 2013 fishing year as fish stocks fail to rebuild, a move that opens the door for Congress to appropriate relief funding for the industry.

In a letter to Massachusetts Governor Deval Patrick, Acting Commerce Secretary Rebecca M. Blank said she had determined there was a “commercial fishery failure due to a fishery resource disaster.”

“I am deeply concerned about the potential impacts to Northeast fishermen and fishing communities,” she said.

“Despite fishermen’s adherence to catch limits over the past few years, recent data shows that several key fish stocks are not rebuilding,” Blank wrote. “Low levels of these stocks are causing a significant loss of access to fishery resourcess with anticipated revenue declines that will greatly affect the commercial fishery.”

She said if Congress appropriates disaster funds her agency “will work with your state to develop an effective program for an economically robust and sustainable fishery.”

US Senator John F. Kerry said he was working with fellow members of the Massachusetts delegation to get $100 million in disaster assistance.

 

Read the full story at the Boston Globe

Gloucester, Mass. — September 14, 2012 — The Northeast groundfishing industry, battered by conservation measures to protect weakened stocks and struggling to maintain its historic diversity while operating since 2010 as a commodities market geared toward encourages consolidation, was declared an economic disaster by the federal government Thursday.

But the finding, announced by Sen. John Kerry and Acting Commerce Secretary Robert Blank offered no certain assistance.

Although the Magnuson-Stevens Act directs the Commerce Department to “make sums available” to relieve the damage and protect the industry, Blank made no mention of forthcoming financial assistance from the Obama administration.

Instead, Kerry emphasized that the declaration removed a political impediment to a belated effort he said he would mount confidently to generate a major appropriation through the lame-duck, tail end of the 112th Congress after the Nov. 6 presidential and congressional elections.

Kerry said he had obtained a commitment from Senate Majority Leader Harry Reid to attach a $100 million funding package for the six states with groundfishing interests — Massachusetts, Maine, New Hampshire, Rhode Island, Connecticut and New York — to a farm drought relief bill. Though it has been neither introduced nor drafted, Kerry said he was optimistic the combination bill would be approved and sent to President Obama before the expiration of the Congress.

Read the full story at the Gloucester Times

 

 

NEW BEDFORD, Mass. — September 14, 2012 — The U.S. Department of Commerce on Thursday declared a national fishery disaster in the New England groundfishery, a major step toward obtaining economic assistance for the region's struggling fishermen.

Sen. John Kerry, D-Mass., said he has secured a commitment from Senate Majority Leader Harry Reid to include a $100 million aid package for fishermen in emergency assistance legislation.

"Our fishermen are the farmers of the sea and today our fishermen are facing exactly what farmers in the Midwest are facing — a drought. Instead of a lack of rain, our fishermen are facing a lack of fish," Kerry said in a statement.

With key stocks in decline, cuts of up to 70 percent are projected next year for some groundfish species such as cod and yellowtail flounder.

Any relief funds must be appropriated by Congress and will be added to a farm disaster bill following the November election, according to John Phillips, legislative director for Kerry.

The disaster declaration was applauded by every member of New England's congressional delegation, as well as Gov. Deval Patrick's office, in a flurry of press releases Thursday.

On the New Bedford waterfront, the reaction was more cautious. "I appreciate the efforts of our congressional delegation," said Richie Canastra, co-owner of the BASE seafood display auction. "But I also want to see how the money gets allocated."

When the catch-share system was introduced to the fishery in 2010, $20 million was provided to help fund that transition, he said. "The majority was eaten up by the bureaucratic system and very little trickled down to fishermen."

The larger problem is that the industry has little confidence in the science the National Oceanic and Atmospheric Administration uses to measure fish stocks, meaning catch limits are set too low for many fishermen to stay in business, Canastra said. "There's no point giving low-interest loans to guys who can't pay them back," he said.

The dragger Mary K, was unloading flounder at Bergie's Seafood on Thursday morning when the news broke. Alcindo Franco, 61, the mate aboard the boat captained by his son Henreque, said fishermen are struggling and will welcome any type of assistance. The Mary K did not get enough fish under the catch share system to remain profitable and had to buy more shares from other fishermen before going out, said Franco, who has been fishing since he was 14, including a spell as a doryman on the Grand Banks.

"This year, we paid $100,000 to buy quota," he said. "The owner paid $50,000 and the five guys in the crew paid $10,000 each to go fishing. That's right out of my pocket." Rising fuel prices and the costs of ice, food, gear and supplies mean that expenses for a seven-day trip now amount to $24,000, he said. "And the fishing is not so good now because the water is too warm," he said.

 

Read the full story in the New Bedford Standard Times

 

 

 

 

September 13, 2012 — Louisiana's seafood industry is suffering tens of millions of dollars' worth of losses after Hurricane Isaac swept through the area on 29 August. Oyster harvesting has slowed down and normal supply is expected to resume by late October.

“One week of Louisiana seafood is worth USD 45 million, and 45 percent of the seafood production comes from the areas hardest hit. Dealers and processors lost a week or more out of their lives and, in some cases, the infrastructure damage is as bad or worse than Hurricane Katrina,” said Harlon Pearce, chairman of the Louisiana Seafood Promotion and Marketing Board.

Pearce and several representatives from the Louisiana seafood industry plan to visit congressional representatives in Washington, D.C., next Tuesday, to encourage funding for seafood businesses impacted by the storm.

“Everybody has been shut down for one or two weeks. The boats went much further north this time and getting back to work is taking longer for people in impacted areas,” said Mike Voisin, owner of oyster processor Motivatit Seafoods in Houma, La.

Hurricane Isaac resulted in more flooding and infrastructure damage than Hurricane Katrina in certain areas because the storm stayed over Louisiana and Mississippi for 54 hours with sustained high winds and rain, versus Katrina’s span of 21 hours. “The storm surge was greater in some respects than Katrina. Twenty boats sank and there is some infrastructure damage,” Voisin said.

Damage to boats, docks and coolers is most significant east of Bayou Lafourche, industry experts say.

Read the full story at SeafoodSource.com.

 

 

PORTSMOUTH, N.H. — The new regional administrator for the National Marine Fisheries Service, John Bullard, heard more than two hours of comment from local fishermen Wednesday about federal regulations that threaten to eliminate the local industry.

The most recent crisis to challenge ground fishermen in New Hampshire is a closure planned for October and November as a result of a report that showed fishermen were not in compliance with regulations to deter harbor porpoises.

Bullard has only been on the job for five weeks, but Weirsma said he already passed up an opportunity to build social capital with fishermen by declining to adjust the penalty.

Bullard has made it a goal to try and rebuild a trust with fishermen that has been badly damaged by the current administration at the National Oceanic and Atmospheric Administration.

He was at the Urban Forestry Center on Wednesday evening to hold one of what he expects to be many listening sessions with fishermen throughout the regional industry.

Bullard previously worked for the National Oceanic and Atmospheric Administration, which oversees NMFS, in the mid-90s, and part of his job at the time was to deal with what was then a crisis in ground fish.

“What I am learning in my first five weeks on the job is that this situation seems a lot worse than it was in the 90s,” Bullard said. “And I don’t think there are any easy decisions in front of us. Harbor porpoises or any other decisions.”

He said every decision they make at NMFS, they are going to try and keep in mind that people are hanging on by their fingertips.

 

Read the full story at the Union Leader.

 

 

NARRAGANSETT, R.I. — September 10, 2012 — The government annually imposes commercial-fishing restrictions. Commercial fishermen annually complain.

But this year is different.

"We're hanging on by our fingertips," said Dick Grachek, 68, a commercial fisherman out of Narragansett.

Grachek attended Monday's meeting in Galilee with National Oceanic and Atmospheric Administration (NOAA) officials. The agency is considering cutting next year's catch limits for groundfish — in the case of Georges Bank yellowtail flounder, by 73 percent.

"How much do we wait before everyone in this room is out of business?" said Tina Jackson, president of the South Kingstown-based American Alliance of Fishermen and their Communities.

 

Read the full story at the Providence Journal.

 

 

BOSTON — September 7, 2012 — Gay cowboys, dead grandpas — and even Jesus — are among the targets of Legal Sea Foods latest advertising campaign.

The Boston chain, which has a reputation for fresh seafood and edgy marketing, is now likening the restaurant to a religious experience, complete with its own “Jesus fish” that features the word “Legal” written in the space created by the two intersecting arcs.

Legal Sea Foods’ version of the popular Christian symbol is already emblazoned on the top of cabs around Boston and in print publications.

Roger Berkowitz, the company’s chief executive, said the ad is not intended to make a religious statement. “I’m not really trying to offend anybody,” he said.

The campaign, created by New York ad agency DeVito/Verdi, is not the first one from Legal Sea Foods to push boundaries. A few years ago, the chain roiled the waters with its $150,000 marketing blitz that took aim at MBTA workers with lines like, “This conductor has a face like a halibut” and, “This trolley gets around more than your sister.”

 

Read the full story at the Boston Globe.

 

 

NEW BEDFORD, Mass. — September 4, 2012 — A new company called Open Ocean Trading is offering commercial fishermen in Massachusetts another option for selling their catch besides the conventional seafood display auction.

Company founder Keith Flett, 31, who launched his venture at the Boston Seafood Show in the spring, said his goal is to help fishermen and buyers by bringing them together to agree on the selling price before a boat leaves the dock.

Prices at the display auction are unpredictable and fluctuate daily, Flett said. "Our way gives everyone in the industry more stability because it allows the buyers and the fishermen to plan ahead. It's essentially an auction that happens before the boat leaves."

Flett who grew up in a Long Island fishing family, said he was in his early 20s when he began buying fish wholesale in Montauk, N.Y., and selling it around the state. "I learned a lot about the supply chain," he said.

His customers always had the same questions, he said: "What are the boats fishing for and what's my price going to be next week?" This gave rise to the idea of what he calls "forward marketing" seafood.

At the auction, fishermen learn the price after they unload their catch. With many fishermen now having to buy fish quota to go out fishing under the catch-share system, they must hope that the price they get for their fish is greater than what they paid for quota.

Having a fixed price would enable them to better manage their business, according to Flett, who said he has already negotiated agreements with fish houses in the principal landing ports to handle the fish. He declined to name the company in New Bedford.

 

Read the full story at the New Bedford Standard Times.

 

 

ELLSWORTH, Maine — Sept 3, 2012 — Officials with Maine’s Department of Marine Resources do not yet have a preliminary estimate for the landings value of this year’s elver season, but the 2012 figures they have compiled so far indicate that it will be much, much higher than it has ever been.

According to comments made in early August by DMR Commissioner Patrick Keliher to the Atlantic States Marine Fisheries Commission’s eel board, the value of the 2012 sales added up so far by DMR is close to $40 million. At that value, the elver fishery now ranks as the second most valuable in Maine behind the state’s $335 million lobster fishery and ahead of soft-shell clams, herring, shrimp and scallops among others.

That $40 million figure is more than five times higher than the value of the elver fishery last year, when a spike in demand from Asia caused the price to skyrocket. Elver fishermen in Maine ended up earning a cumulative figure of $7.65 million — a record at the time — for the 8,500 pounds of juvenile eels that they caught during the 10-week season in 2011, earning an average price of nearly $900 per pound. The elver fishery was the fourth most valuable commercial fishery in Maine last year.

In 2010, a year before a March 2011 tsunami that wiped out aquaculture ponds and fishing fleets in northern Japan, elver fishermen in Maine earned a cumulative total of $584,851 for the 3,100 pounds of elvers they caught. The average price elver fishermen earned in 2010 was $185 per pound.

This past spring, the season opened with elver fishermen earning more than $2,000 per pound and, by the time the season ended 10 weeks later, roughly $2,600 per pound.

Deirdre Gilbert, DMR’s director of marine policy, said Friday that the figure cited to the fisheries commission by Keliher is not a preliminary estimate for the entire 2012 season. The state has collected reports from only about 75 percent of Maine’s licensed elver dealers, she said, and none that DMR has received has been audited yet for accuracy.

 

Read the full article at the Bangor Daily News