By Craig Medred - May 14, 2018

 Kodiak halibut headed for the fish grinder/Erik Velsko, Facebook

Kodiak halibut headed for the fish grinder/Erik Velsko, Facebook

Only in Alaska, which likes to claim title to the world’s “best-managed fisheries,” would halibut now retailing at prices in excess of $20 per poundbe ground into fish meal to feed animals, shrimp and maybe even farmed salmon – the bane of Alaska commercial fishermen.
Photos of halibut and other, trawl-caught bottomfish headed for the grinder emerged from Kodiak this weekend as Alaska fishermen started into a fishing season where the targeted harvest of halibut by both commercial fishermen and anglers has been seriously restricted because of conservation concerns.

The commercial season opened in March with commercial fishermen in the north Gulf of Alaska restricted to 7,350,000 pounds – down from 10 million last year – and the sport charter catch slashed to 1.8 million pounds.
Most sport fishing in Alaska takes place in the north Gulf where the catch limit is now down to less than half the trawl, bycatch cap of 1,706 metric tons – 3.8 million pounds – the North Pacific Fishery Management Council,a federal regulatory body controlled by commercial fishing interests, imposed on the trawl fishery.

The council “family” has sometimes attracted public criticism, but a Byzantine federal regulatory system has allowed it to function largely free of public pressure.

“With all the papers, people and scheduling, Council meetings can be pretty confusing to those who are new to the process,” the organization concedes on its website, but the Council has never made any real effort to make the meetings less so.

To keep the charter harvest down this year, charter anglers were banned from fishing on Wednesdays and some Tuesdays and further restricted to a seasonal catch limit of four fish. The restrictions are expected to take a significant bite out of the tourist economy in Homer and other south Kenai Peninsula communities.

The new rules come on top of a fish-and-a-half-limit previously imposed to limit anglers to one halibut of any size and one under 28 inches.

Angry anglers

The internet was lighting up over the weekend after Kodiak’s Erik Velsko posted on Facebook the photos of not only a tote full of the flatfish, but a video of the tote being unceremoniously dumped into a Trident Seafoods truck. He added this comment: “Anyone who cares about our natural resources right outside our door should be appalled at this. Yes, that’s a Trident truck and yes, those are baby halibut from one of their boats. It’s getting ridiculous, and it’s time to stop.”

The fish were what is called trawl “bycatch.” Federal regulations intended to remove the financial incentive for trawlers to target especially valuable fish such as halibut and salmon prevent the sale of that bycatch, but trawlers can still legally hand the fish over to processors to be ground into fish meal. 

Fish meal is now big business.

The Marine Ingredients Organization in 2015 estimated “2,332,000 metric tons of fish meal can be shipped in a year from more than 30 countries in Europe, North and South America and Asia.”

The Alaska Seafood Marketing Institute, a body funded in part by the state, has been pushing for expansion of fish meal operations to dispose of both the waste of heads and organs from salmon processing and to use unmarketable fish species and bycatch.

“The pet food market is large, but secures most of its protein from terrestrial sources. The top seven pet food companies in the United States have combined revenues of $38 billion,” the Institute noted in a 2017 report.“Most of these sales come from dog and cat food. The dog treat market is estimated at $8 billion. Alaska fish heads and other fish meat products can be a marketable ingredient for pet food manufacturers.”

Were Alaska processors doing a better job of marketing their fish meal, some Americans would, no doubt, be happy to learn their pets were eating the fish the owner couldn’t afford.

The ASMI report, however, notes the slim margins on which the pet food industry operates: “Alaska seafood is a highly marketable ingredient and processors can supply pet food manufacturers with several product forms made from waste streams: frozen/ground blocks, hydrolysates, or meals/powders. However, these products generally sell for very low prices, barely enough to cover the cost of shipping the frozen product. Raising the value of these minimally processed products by 10-20 cents/lb. or more could convert a significant volume of Alaska seafood waste into saleable product.”

Big, big business

Seattle-based Trident Seafoods is the biggest fish business in the country. It is heavily invested in Alaska, but also has plants in Washington state, Georgia and Minnesota, along with operations in China, Germany, the Netherlands, and Japan.

The company made founder and chief shareholder Chunk Bundrant a billionaire.

Bundrant built his business on the back of the walleye pollock, a white-fleshed fish once considered trash in Alaska. Bundrant recognized that pollock flesh made for perfectly fine fish sticks, and the rest is history.

Trident last year inked a deal to sell those pollock fish sticks to Walmart, under the company’s “Great Value,” in-house label. Walmart is the world’s largest retailer.

Those pollock circle back to halibut in that halibut is bycatch in the efficient but indiscriminate trawl fisheries. And there are hints bycatch and fish parts ground into meal could be the pollock of the future.
“…The company invests in research and development aimed at extracting every bit of value from the fish, and it has been diversifying its markets to create better use of the byproducts, such as for fish meal and animal feed and food,” Quality Assurance & Food Safety magazine reported in October 2016.

Trawlers have been accused by some of “strip-mining” the sea, but they have in some cases shown they can fish pretty clean.

The Canadians in 1997 established individual, by-catch quotas for trawlers to reward those who managed to avoid non-target species, such as halibut. Overall halibut bycatch remained capped, but trawlers that finished the season below their cap were allowed to carry it over to the next season or sell it to a trawler that had gone over the cap.

“Prior to the implementation of the halibut mortality limit in the trawl fishery, annual mortality was estimated to range from 1.2 million pounds to 2 million pounds,” NOAA said in report prepared for the NPFMC in 2011.“To achieve halibut mortality reduction in the fishery, the trawl mortality limit was set by the Department Fisheries and Oceans (Canada) at 1 million pounds.

“Since the program was implemented, annual halibut mortality in the fishery has not exceeded 500,000 pounds, and has typically been approximately 250,000. This reduction likely stems from both the individual accountability for halibut mortality and the individual accountability for groundfish catches.”

Despite Canada’s success, the U.S. has refused to follow suit.

“We’ve been avoiding doing anything,” commercial fisherman Joe Mackino, a trawling critic messaged from Kodiak on Sunday. “Current management has a perverse incentive which reward those with the worse bycatch performance.

“The reduction plant is owned by the processors and municipalities and the state get no fish tax from these discards. Imagine a business where you get your raw material for free! Delivered even.

“…The trawl fishery is destroying the halibut and crab resource. And the state is helping them by doing nothing.”

Halibut surplus and competition on the East Coast drives dock prices down

By AARON BOLTON • MAY 11, 2018
KBBI AM 890 Serving the Kenai Peninsula

 Photo Credit: Rudy Gustafson

Photo Credit: Rudy Gustafson

Commercial fishermen are about two months into the halibut season, and the industry is dealing with some big changes. Prices for the valuable bottom fish have fallen about $2 per pound, and decreasing demand has left plenty of halibut from last year sitting in the freezer.

Both seem to be driven by consumers who are reluctant to buy expensive fillets in grocery stores and restaurants, but also by a new competitor that’s taking over a large portion of the market.

That begs the question: will Pacific halibut maintain its spot on the menu or be replaced?

“Fish business goes: first you’re on the menu, then you go on the chalk board, then once you go off the chalk board, you’re done,” Billy Sullivan said as he sliced open a rock fish. “Halibut is off the chalkboard right now.”

Sullivan owns a small fish buying operation in Homer, and he said years of historically high prices – about $20 to $30 per pound at your typical supermarket – have driven consumers away from purchasing Pacific halibut.

“They went and found alternatives to expensive halibut and the East Coast fish fills in,” Sullivan added.

Last year, fishermen cashed in on high prices, and Sullivan said fish buyers in Alaska were eager to buy loads of Pacific halibut.

By the fall, the market seemed to soften as cheaper Atlantic halibut started to swallow up portions of the market on the East Coast.

“It’s safe to say and safe to assume that the East Coast has traditionally been a primary market for Pacific halibut,” Garett Everidge said, a fish economist with the McDowell Group.

He said most of the Atlantic halibut showing up on the East Coast is coming from Canada. Canadian fishermen on the East Coast landed about 8 million pounds of Atlantic halibut in 2016, double the catch ten years prior.

“For context, 2018 TAC (total allowable catch) for Alaska is about 17.5 million pounds,” Everidge explained. “By comparison it’s still a relatively small amount, but it’s a material force in the market.”

There is no substantial commercial fishery for Atlantic halibut in U.S. waters, but Everidge explains that as the catch to the north increases, more Canadian fish buyers are shipping their product into the U.S. The Canadian fishery is also open year-round, making it easier to supply demand for fresh fish in high-end markets like Boston.

Everidge said increased competition along with high Pacific halibut prices might have led to the current backlog of Alaskan fish in the freezer.

He also notes that halibut doesn’t provide a very large profit margin, which may make selling that fish take longer.

“There’s tension between selling that product and maintaining the value and maintaining profitability in the short term,” Everidge said.

The surplus of Pacific halibut combined with more competition from the East Coast is driving down prices here in Alaska. Fishermen at the docks have been getting about $5 per pound.

Malcom Milne is a Homer-based commercial fisherman, and he said he saw this coming after buyers began to turn away loads of halibut last fall.  

“Been a long-time coming I think, and my opinion when we were getting $7 per pound, it was great – great for the crew shares in the boat. But it just didn’t seem like a sustainable price point,” Milne said.

Milne said $5 per pound should still be profitable for most fishermen, and he thinks that price point may get Pacific halibut back on the menu.

“Hopefully we can rebuild some of the markets. I think we probably lost some market share due to substitution,” Milne added. “I know it’s always hard to get back on menus and back in peoples’ minds. Hopefully this will do it.”

But that lower price point may not translate to consumers until the surplus of fish in the freezer is sold.


Dori: Why Mike O’Brien was ousted from international gala

  by Dori Monson
  MAY 8, 2018 AT 10:55 AM

 Seattle Councilmember Mike O'Brien. (Seattle Channel)

Seattle Councilmember Mike O'Brien. (Seattle Channel)

Last weekend was the gala grand opening of the new location of the Nordic Museum in the heart of Ballard. At the Friday night gala, there was room for about 350 people in the main hall, but apparently, about 600 people showed up. The royal families of different Scandinavian nations were there, as well as the president of Iceland

As the overflow crowd had to go into an adjacent facility at Pacific Fishermen, a big maritime business on Salmon Bay, the $100,000 donors were invited to the shipyard. One of the people in that group was Seattle City Councilmember Mike O’Brien. I’m not sure if he donated that much money, or if he was invited because the City of Seattle bought some of the land that the Nordic Museum sits on.

What I’m told by management at Pacific Fishermen is that they saw Mike O’Brien there and became angry. He is part of an effort to limit access to Pacific Fishermen’s business with a street closure and tri-sect the property by converting an alley to a major truck route. It’s going to have a major negative impact on their business. As management of a private company, they had the right to say that they did not want this man, who is working against their business, on their property. They told Mike O’Brien to leave.

We cannot confirm that Mike O’Brien was drunk, however, several witnesses saw him spill his drink as he was escorted out. And then, as Mike O’Brien’s wife was being escorted out, she loudly yelled, “F— the fishermen!” While not confirmed by his wife, three different sources have reported this. How classy if, at a fisherman maritime business, she screamed this.

We have done everything to get Mike O’Brien’s side of the story, but have received no response. O’Brien, for whatever reason, is refusing to tell his side of the story. What this comes down to is that O’Brien and his cronies have this vision that Ballard will eventually become bicycle-only, like Davis, California. They want to get rid of blue-collar, maritime businesses and line the waterfront with condos. And the businesses believe that O’Brien has a plan that would have a deleterious effect on them.

Those maritime jobs are an area where blue-collar people can still make a decent living right out of high school. But the city is working with developers to get rid of the maritime businesses and put in hotels, apartments, and condos. They are going to get rid of everything that Old Ballard consists of, and create a community in their image. Their image is a bunch of Yuppie bike riders who ride their bikes to Amazon and Expedia and make six figures in the tech industry. The 100-year-old maritime, bedrock businesses will be gone, and the middle class will be forced out.