Saving Seafood

Economic Impact

NOAA’s Southeast Fisheries COVID-19 Report Reveals Impact on Seafood Dealers and Processors

January 21, 2021 — The Southeast commercial fisheries were not immune to COVID-19. That’s according to a new report from NOAA that was released on Friday.

NOAA’s report was created to show the impacts from COVID-19 on Southeast Fisheries. In order to show the impact of the pandemic on the Southeast commercial fisheries, NOAA’s analysts reviewed data from January through June 2020. The analysts found that landings revenue for selected federally-managed species (excluding shrimp and menhaden) was down 23% during the first six months of the year when compared to the same period in 2019. According to the report, landings revenue declined 11% in January and February, but then dropped March through May, with April experiencing the largest monthly decline at 48%.

Read the full story at Seafood News

Seafood, retail sales surged during 2020 holiday season

January 20, 2021 — Retail sales were higher than expected during the 2020 holiday season – and sales of seafood shone as a particularly bright spot.

Frozen seafood was “one of the strongest performers” in the overall supermarket frozen food department, growing 23 percent in December versus a year ago, 210 Analytics Principal Anne-Marie Roerink told SeafoodSource.

Read the full story at Seafood Source

Scottish seafood industry seeks government support in wake of Brexit fallout

January 20, 2021 — Scottish Rural Economy Secretary Fergus Ewing has pressed the United Kingdom’s government to increase its support for the Scottish seafood sector as it struggles to come to terms with the challenges of trying to export products to European Union markets following the introduction of the new Brexit trade agreement on 1 January.

U.K. exporters have faced lengthy delays in transporting goods to Continental Europe due to the new customs and export certification requirements laid out by the terms of the non-tariff barriers in the trade agreement. With the COVID-19 pandemic already affecting both national and international trade, and also significantly curtailing the hospitality trade, this latest obstacle has caused considerable additional concern for those moving seafood and other perishable products, Ewing said.

Read the full story at Seafood Source

U.S. Fishing and Seafood Industries Saw Broad Declines Last Summer Due to COVID-19

January 19, 2021 — The following was released by NOAA Fisheries:

The U.S. fishing and seafood sector generated more than $200 billion in annual sales and supported 1.7 million jobs in recent years. It experienced broad declines in 2020 as a result of the COVID-19 public health crisis, according to a new NOAA Fisheries analysis released today. While losses vary by sector, by region and by industry, data and information from this report may help businesses and communities assess losses and inform long-term recovery and resilience strategies.

According to analysts, COVID-19 protective measures instituted in March across the United States and globe contributed to an almost-immediate impact on seafood sector sales. There was a strong start to the year, with a 3 percent increase in commercial fish landings revenue in January and February. However, revenues declined each month from a 19 percent decrease in March to a 45 percent decrease by July. This translates to a 29 percent decrease across those 7 months, as compared to 5-year averages and adjusted for inflation.

Restaurant closures, social distancing protocols, and other safety measures also contributed to losses in other sectors of the seafood economy. By the end of second quarter 2020, 78 percent of aquaculture, aquaponics, and allied businesses reported COVID-19 impacts with 74 percent experiencing lost sales. The analysis noted outdoor seating at restaurants in warm months and a pivot to direct delivery at some supermarkets provided an outlet for some aquaculture sales. Also, the recreational charter/for-hire fishing industry was completely shut down in the spring with some phased reopenings in the early summer. The new analysis contains regional snapshots to help industries understand local impacts to key fisheries.

The protective measures that shuttered restaurants also impacted charter fishing operations. Charter operations were completely shut down in most coastal states beginning in mid-March, with phased re-openings starting in May. NOAA Fisheries estimates that in the Southeast, charter revenues relative to the preceding 3-year period fell 72 percent in March through April due to local and state COVID-related closures and protocols. In May-June, revenue was down 4.5 percent as businesses began to re-open. In contrast, charter operations in Alaska and Hawaiʻi, which rely heavily on out-of-state tourism, continue to experience severely depressed sales due to the sharp decrease in tourism. Hawaii is estimated to have lost 99 percent of charter trips between April and July. In addition, many fishing tournaments have been postponed or cancelled. About 50 fewer Atlantic HMS tournaments registered this year compared to 2019. Hawaiʻi sportfishing tournaments have been similarly impacted.

“In the coming months and years, scientists and economists will work to obtain a more complete picture of COVID-19’s impact on U.S. seafood and the Blue Economy. It is our hope that this initial analysis provides a foundation that the industry researchers and planners can draw upon as they plan for the future,” said NOAA Fisheries Assistant Administrator Chris Oliver.

Read the full release here

NMFS reports fishing revenue crashed 29 percent in pandemic

January 19, 2021 — The U.S. fishing industry lost nearly one-third of its revenue in the first seven months of 2020 as the covid-19 pandemic vaporized its major markets, according to a new analysis by NMFS.

The year started on a high note, with revenues up 3 percent in January and February – before diving 19 percent in March and cratering at 45 percent less in July, said Paul Doremus, deputy administrator for operations at NMFS, in a telephone conference with reporters Friday.

Cumulatively, “over those seven months we’re looking at a 29 percent decrease,” said Doremus.

The agency mobilized its economic experts and government and academic partners in March to document the impact of the pandemic and begin preparing “as comprehensive an account as we could,” said Doremus.

The findings were compiled in a report with more than 100 pages of supporting documents, including detailed region-by-region breakdowns, by authors and economists Rita Curtis of the NOAA Fisheries Office of Science & Technology and Steve Kasperski of the agency’s Alaska Fisheries Science Center.

While the report only documents the industry’s situation up through July, “we’ve already initiated the work to do that next update,” said Curtis. The goal is to continue monitoring economic impacts and fishermen’s response, drawing lessons and strategies for making fishing communities more resilient, said Doremus.

Read the full story at National Fisherman

Nearly all Alaska and West Coast fishermen badly hurt by pandemic, survey indicates

January 19, 2021 — The single biggest hit to fishermen from the COVID-19 virus is lower dock prices, according to Alaska and West Coast harvesters, and 98% said their businesses have been badly bashed by the pandemic.

That’s based on survey results compiled by Ocean Strategies, a public relations firm that focuses on fisheries that helped profile the Pacific region for a larger federal study.

Nearly 400 fishermen responded to the short, confidential survey launched last November, said senior consultant Hannah Heimbuch of Kodiak.

“NOAA uses any information they collect on economics to report to Congress on how the industry is being impacted, the major trends they are seeing, and then that informs the decisions that Congress or other government agencies might make in response to those trends,” she said.

In the survey, 82% said fishing is their primary source of income and 91% said their revenues have decreased by 15% -100% since January of 2020. A whopping 70% said they stopped fishing last year; 65% stopped for three months or less.

Read the full story at the Anchorage Daily News

Trends experts predict modest 2021 rebound for US foodservice

January 15, 2021 — While 2020 has been the hardest year the U.S. restaurant industry has ever faced, some analysts and seafood suppliers expect to see the industry rebound in 2021.

Major foodservice distributor US Foods, for example, is optimistic about a restaurant-sector recovery, as more Americans obtain the COVID-19 vaccine and return to dining out, according to its chairman and CEO, Pietro Satriano.

Read the full story at Seafood Source

NOAA Fisheries report reveals COVID-19 impact on US seafood industry

January 15, 2021 — A report issued by NOAA Fisheries on Friday, 15 January, 2021, shows that COVID-19 had a devastating impact on the country’s commercial fishing and recreational charter operations during the first seven months of 2020.

No U.S. region was spared, as the data shows regional landings revenue since last March fell across the board. Hawaii experienced the worst decline at 42 percent, with the Southeast reporting a 29 percent drop.

Read the full story at Seafood Source

Under new ownership, Peter Pan says it will focus on value added products

January 15, 2021 — Peter Pan, the seafood processing company with an array of plants in Southwest Alaska, had been struggling to keep up with competitors.

So, when its owner, Japanese seafood giant Maruha Nichiro, initially announced its sale of Peter Pan to three buyers, it said it expected a loss of almost $28 million.

The deal means the company is now vertically integrated, so all stages of production and marketing — usually operated separately — are now under one owner. It also places Peter Pan under American ownership.

One of the three buyers is Northwest Fish. Its owner, Rodger May, is the president of “New Peter Pan.” The Na’-nuk Investment Fund, managed by McKinley Capital, a private equity group, is another. The RRG Global Partners Fund is the third buyer.

McKinley Chairman Rob Gillam said the buyers see the deal as an investment in sustainably harvested Alaska seafood. But they agree that Peter Pan needs to up its marketing game.

“The best fish in the world isn’t any good if you can’t get it to people who want to buy it. So, that was really critical,” he said.

Read the full story at KDLG

Seafood category saw big gains in 2020 despite COVID-19 turmoil

January 14, 2021 — Even as the COVID-19 pandemic upended markets, forced restaurant closures, and changed the way society functioned, the seafood industry managed to see significant gains in the category.

IRI data, combined with NPD data, shared during a panel that is part of the National Fisheries Institute’s Global Seafood Marketing Conference webinar series, indicates that the seafood industry saw net growth of 7 percent in 2020, equaling USD 800 million (EUR 657 million) in gains for the industry. SeafoodSource is providing exclusive coverage of the GSMC Webinar series, which will be providing comprehensive market content throughout 2021.

Read the full story at Seafood Source