May 16, 2024 — The opening of the famed Copper River fishery – it starts this year on May 16 – traditionally marks the beginning of a new commercial salmon season in Alaska.
Rather than excitement, however, much of the industry feels apprehension, anxiety, and even anger. Since last year, we’ve seen a procession of negative and worrying developments, leading some to question the future of the salmon business.
Alaska’s seafood industry is floundering due to factors including glutted markets, unfavorable currency exchange rates, post-pandemic consumer shifts, food inflation, and weakness in other important fisheries such as pollock.
Based on preliminary data, prices paid in 2023 to both fishermen and processors were historically low for salmon and pollock, according to a recent analysis prepared for the Alaska Seafood Marketing Institute (ASMI).
In recent months, we’ve seen extraordinary events, including the implosion of legacy processor Peter Pan Seafood and a selloff of Alaska plants by industry titan Trident Seafoods. Other processors have cut back operations. Some Alaska fishermen are wondering if they’ll have a market this year.
Could this be another season of discontent?
Certain forces suggest relief might be on the way. For one thing, the Alaska salmon harvest is expected to be much smaller this year at 136 million fish compared to 232 million in 2023. The catch of sockeye, the most valuable species, is projected at 39 million fish, well below last year’s 52 million. A smaller harvest could help clear salmon inventory and bolster ex-vessel and wholesale prices.
The U.S. Department of Agriculture (USDA) is buying huge volumes of Alaska salmon and pollock, supporting the struggling seafood industry.
The Alaska Legislature is putting together a special task force to address the industry’s problems – problems that could hurt Alaska coastal communities. And legislators are weighing an infusion of up to $10 million in additional support for ASMI. The marketing agency is pursuing new initiatives involving retail heavyweights such as Costco and Walmart, and in Japan, is supporting industry efforts to develop ready-to-eat convenience store products utilizing off-grade or No. 3 salmon.
Coming into this season, processors, in particular, face tremendous financial pressure – and high expectations.
Today, we offer the first of three conversations with top Alaska processing company CEOs.