Economic Impact

BOSTON—More than a hundred New England fishermen in ports from Maine to Rhode Island are asking lawmakers to back off efforts to kill a new management system.

The letter, dated Monday, is not a love letter to the new system, which has been in place since last year, and which some fishermen vocally despise. But it says local fishermen are making it work, and scraping it would only damage the industry lawmakers are trying to save.

The letter asks lawmakers to instead focus on various ways to improve what already exists.

"A few voices calling for the overturn of the entire … system have been amplified in the media," the letter reads. "Unfortunately, this has led to a series of increasingly dangerous proposals that truly put the future of our businesses and fisheries at risk."

Read the complete story by Jay Lindsay of The AP at The Boston Globe.

 

 

 

 

 

The menhaden board of the Atlantic States Marine Fisheries Commission recently voted to reduce the annual harvest of menhaden by as much as 37%, possibly leading to reductions in the operations of Omega Protein Inc. in Reedville.

There are 15 states that belong to the ASMFC and each state has one vote. The commission held 13 public hearings on menhaden and received nearly 92,000 comments, the majority of which were in favor of a smaller harvest to avoid overfishing and increase abundance and spawning stock biomass.

Research from the 2010 stock assessment showed that menhaden were overfished in 32 of the past 54 years, although only once in the past decade.

“I’m disappointed that the fishery managers ignored the science and listened to the more radical advocacy groups,” said Omega director of public affairs Ben Landry.

A hearing held at Northumberland High School a month ago did not reflect the opinion of the majority. Out of the approximately 31 who spoke at the hearing, most comments regarded the impact of regulations on Omega Protein in Reedville, the last remaining reduction plant on the Atlantic Coast.

Omega processes about 80% of the Atlantic menhaden catch and employs approximately 300 people, making the plant one of the region’s largest employers.

Landry said it’s way too early to say with any clarity how the vote will impact Omega.

“Traditionally, the target reduction rate has just been an aspiration. We don’t know to what degree we will have to fish within. We don’t know whether there will be quotas or limited fishing seasons,” said Landry. “There’s certainly going to be some operational adjustments, but we’re going to prevent and minimalize any job loss as much as possible.”

Read the full story at the Rappahannock Record.

 

 

Omega Protein Corporation (NYSE: OME), a nutritional ingredient company and the nation's leading vertically integrated producer of omega-3 fish oil and specialty fish meal products, today reported financial results for the third quarter ended September 30, 2011.

Third Quarter 2011 Highlights:

Revenues: $71.7 million, a 28.1% increase over the 2010 third quarter, due primarily to higher volumes

Gross profit margin: 19%, down from 27% for the 2010 third quarter, reflecting low fish oil yields in 2011

Net income: $4.7 million ($0.24 per diluted share) compared to $7.0 million ($0.37 per diluted share) in the 2010 third quarter

Production: Highest year-to-date production since 2007 and highest fish catch since 2002

Growth: Completed acquisition of InCon Processing, L.L.C.

Third Quarter 2011 Results:

Omega Protein third quarter of 2011 revenues increased 28.1% to $71.7 million from $56.0 million in the same period last year. The composition of revenue by nutritional product line was 63% fish meal, 30% fish oil, 5% specialty nutraceutical ingredients, and 2% fish solubles and other. Fish meal sales prices decreased 23% compared to the third quarter of 2010, but were 9% higher than the third quarter average for the prior five years. Fish oil sales prices increased 12% compared to the third quarter of 2010 and were 22% higher than the third quarter average for the prior five years.

The company recorded gross profit of $13.4 million, or 18.7% as a percentage of revenues, for the third quarter of 2011, versus gross profit of $15.3 million, or 27.3% as a percentage of revenues, for the third quarter of 2010. The decrease in gross profit was primarily due to a decrease in fish meal sales prices partially offset by an increase in fish oil sales prices and increased sales volumes of fish meal and fish oil. The global availability of fish meal, particularly from South America, influenced the decrease in fish meal sales prices. Strong export demand for quality oil and an increase in pricing of competitive fats and oils were significant factors related to the increase in fish oil pricing and the increase in sales volumes. Cost per unit of production was consistent for the two periods, as low fish oil yields offset the positive impact of an increased fish catch in 2011.

Net income for the third quarter ended September 30, 2011 was $4.7 million ($0.24 per diluted share) compared to $7.0 million ($0.37 per diluted share) for the same period last year. In addition to the items discussed above, the decrease was influenced by general and administrative expenses associated with a December 2010 acquisition.

"We are pleased with this season's strong catch and production results, as well as our ability to generate the highest quarterly revenues in our Company's history," commented Bret Scholtes, Omega Protein's Executive Vice President and Chief Financial Officer. "At the same time, we believe that the steps we have taken with the recent acquisitions of Cyvex Nutrition and InCon Processing better position Omega Protein by improving our ability to penetrate the more profitable human nutrition market with our fish oil."

Mr. Scholtes continued, "We believe our vertically integrated business model provides a distinct competitive advantage that allows us to better serve our customers and increase long-term shareholder value."

 

Republished with permission from SeafoodNews.com

 

 

 

 

 

Omega Protein Corporation (NYSE: OME), a nutritional ingredient company and the nation's leading vertically integrated producer of omega-3 fish oil and specialty fish meal products, today reported financial results for the third quarter ended September 30, 2011.

Third Quarter 2011 Highlights:

Revenues: $71.7 million, a 28.1% increase over the 2010 third quarter, due primarily to higher volumes

Gross profit margin: 19%, down from 27% for the 2010 third quarter, reflecting low fish oil yields in 2011

Net income: $4.7 million ($0.24 per diluted share) compared to $7.0 million ($0.37 per diluted share) in the 2010 third quarter

Production: Highest year-to-date production since 2007 and highest fish catch since 2002

Growth: Completed acquisition of InCon Processing, L.L.C.

Third Quarter 2011 Results

Omega Protein third quarter of 2011 revenues increased 28.1% to $71.7 million from $56.0 million in the same period last year. The composition of revenue by nutritional product line was 63% fish meal, 30% fish oil, 5% specialty nutraceutical ingredients, and 2% fish solubles and other. Fish meal sales prices decreased 23% compared to the third quarter of 2010, but were 9% higher than the third quarter average for the prior five years. Fish oil sales prices increased 12% compared to the third quarter of 2010 and were 22% higher than the third quarter average for the prior five years.

The company recorded gross profit of $13.4 million, or 18.7% as a percentage of revenues, for the third quarter of 2011, versus gross profit of $15.3 million, or 27.3% as a percentage of revenues, for the third quarter of 2010. The decrease in gross profit was primarily due to a decrease in fish meal sales prices partially offset by an increase in fish oil sales prices and increased sales volumes of fish meal and fish oil. The global availability of fish meal, particularly from South America, influenced the decrease in fish meal sales prices. Strong export demand for quality oil and an increase in pricing of competitive fats and oils were significant factors related to the increase in fish oil pricing and the increase in sales volumes. Cost per unit of production was consistent for the two periods, as low fish oil yields offset the positive impact of an increased fish catch in 2011.

Net income for the third quarter ended September 30, 2011 was $4.7 million ($0.24 per diluted share) compared to $7.0 million ($0.37 per diluted share) for the same period last year. In addition to the items discussed above, the decrease was influenced by general and administrative expenses associated with a December 2010 acquisition.

"We are pleased with this season's strong catch and production results, as well as our ability to generate the highest quarterly revenues in our Company's history," commented Bret Scholtes, Omega Protein's Executive Vice President and Chief Financial Officer. "At the same time, we believe that the steps we have taken with the recent acquisitions of Cyvex Nutrition and InCon Processing better position Omega Protein by improving our ability to penetrate the more profitable human nutrition market with our fish oil."

Mr. Scholtes continued, "We believe our vertically integrated business model provides a distinct competitive advantage that allows us to better serve our customers and increase long-term shareholder value."

Republished with permission from SeafoodNews.com

 

 

 

 

 

NEW BEDFORD — Several months after the Northern Pelagic Group announced it was shuttering its plant on Fish Island, the company is still operating but at only 20 percent of capacity.

"We're waiting for the other shoe to drop," said Eoin Rochford, NORPEL's operations manager. Along with the herring that has come in recently, NORPEL handled some squid, which it processed and froze in July.

The herring and mackerel fish processor declared it was ceasing operations last April, citing overregulation for its demise.

State and city officials hurriedly met with Brady Schofield, president of NORPEL at the time, in an effort to retain the company and save 80 waterfront jobs. NORPEL's trawlers were prevented from landing their entire allocation of herring because of fishery regulations limiting the amount of haddock bycatch the boats can haul in along with the herring catch.

Read the complete story from The Standard-Times.

 

 

 

 

 

MOSS POINT, MS (WLOX) – Inside Omega Protein, mountains of fish meal wait to be processed. The smell is intense, but for workers here, they like to say it smells like money.

Outside, fishing boats are docked as the season winds down. Last season was wiped out, when the BP oil spill shut down virtually the entire Gulf of Mexico to fishing.

Tom Wittman is the general manager of the Moss Point operation. There were some worries heading into 2011. 

"Of course we had concerns but as we went into the year with testing on the fish and the fish abundance it turned out to be better than expected," Wittmann said.

Overfishing is not a concern.

"Menhaden fishing is very regulated," Wittmann said. "National Marine Fisheries, every other year they do stock assessments and the reports have come back that the species is healthy."

Wittmann said the fish meal may be the same as always, but the market for the product is changing.

"What we're trying to do is get our product in the higher niche markets," Wittmann explained. "The Omega 3 fatty acid is very important to human health and we're moving most of our products in that direction." 

When most people think of this industry, they think of fish. But it's a lot more than that. This company employs accountants, secretaries, and clerks. Not only that, they have their own shipyard to refurbish ships, according to Wittmann. 

Read the full article at WLOX.com

HARTFORD, Conn.—Nick Crismale made his career as a lobsterman, but lately there are not enough of the crustaceans in Long Island Sound to make it worth putting out the traps.

Crismale, who dedicated himself to clamming this year, had been among the few remaining holdouts in an industry devastated by a steady decline in lobster stocks. Only about 30 full-time lobstermen are left in Connecticut, down from more than 300 in the years before a devastating lobster die-off in 1999.

"We're losing a way of life. We're losing a heritage," said Crismale, 61, the leader of the Connecticut Commercial Lobstermen's Association.

Some argued last year that the species was rebounding, and fishermen fought back a proposal for a five-year ban on lobster fishing south of Cape Cod, Mass. But that optimism is fading. Researchers who trawl the waters of Long Island Sound for a survey that began in 1984 say they have never seen so few lobsters.

Read the complete story from The Associated Press

NEW ORLEANS — There's a group that fears 2012, and this one is not out on the fringe. They are America's saltwater fishers and the industries they power that represent 6.4 million American jobs. Some of their representatives gathered here this week for the Theodore Roosevelt Conservation Partnership's marine conservation summit. And to them, 2012 could be (forgive me for this) Fishageddon!

That's because on Jan. 1, a well-intended conservation requirement of the Magnuson-Stevens Act – the law that regulates fishing in federal offshore waters – is scheduled to throw the switch on a time bomb that could wreck whole sectors of marine fishing.

The issue is "annual catch limits," known as ACLs, another way of saying "yearly creel limits." When Magnuson-Stevens was reauthorized in 2006 environmentalists of all stripes – including sportsmen – liked ACLs. That was because even though Magnuson-Stevens had been around since 1976, the nation still lacks adequate scientific profiles of most marine species. Without that information, whole sections of the marine ecosystem were at risk because we were fishing beyond science.

There had been numerous resolutions and requests to fill that void, but the budgets never materialized, and the major resource user-groups either didn't push the issue or didn't have the political power to see them through.

Read the complete story from The News Observer.

 

 

 

 

The first year of Northeast groundfishing with the industry operating as a commodities market saw catch shares shifting from the smaller boats and businesses to the better capitalized ones, the NOAA Science Center confirmed in a new report issued Tuesday.

Allocations exceeded catch totals in the three smallest vessel size categories, while — in the category of the biggest boats — catch exceeded allocation, constituting a "broad shift" of catch shares into the largest and wealthiest hands, according to the team of nine social scientists who crafted their final report on the groundfishery.

The authors also reported seeing signs of port transformation.

With the system favoring larger scale businesses, crew members reported "lower income under sector management," the scientists reported.

Read the complete story from The Gloucester Times.

 

 

 

 

 

 

The National Oceanic and Atmospheric Administration (NOAA) this week released the 2010 Final Report on the Performance of the Northeast Multispecies (Groundfish) Fishery. It elaborates on earlier release of catch and value data for the 2010 groundfish season and adds new information on fishery performance, leasing of quota, costs and jobs.

“The report concludes that when all fishing across the region is analyzed, fishermen as a whole are generally doing marginally better financially, even though they are spending less time fishing and catching fewer fish than previous years,” stated NOAA Administrator Dr Jane Lubchenco.

NOAA is sharing the findings at the New England Fishery Management Council’s “lessons learned” workshop, which is expected to provide important recommendations to help fishers and their communities thrive despite low quotas.

NOAA has been working quickly to raise catch levels based on new fish stock science and allowed fishing in some previously closed areas. NOAA and the Council are also considering rolling over unused quota to the next fishing year.

Read the complete story from Fishing Information & Services