Situation

Week of June 9, 2008: Future of West Coast Commercial Fisheries Determined

During the week of June 9, 2008 the Pacific Fishery Management Council will vote on a quota based system that will stop the race for fish. Two programs are under consideration: a monopoly quota and a shared market quota. Either quota will force the industry to absorb an anticipated increase in complexity and administrative cost to monitor the system.

The monopoly quota would allocate 100 percent of initial quota to vessel owners/fishermen. A shared market quota would include processors, giving them the same level of security that vessel owners/fishermen have. Processors have invested in facilities, family wage jobs and communities, and a shared market approach would provide economic safeguards to protect their investments.

Affected Fisheries

Pacific Whiting Fishery
Pacific whiting is the largest fishery by volume on the West Coast, representing more than 3,000 jobs and in excess of $89 million in annual revenues. A versatile protein source, Pacific whiting is a groundfish that has the opportunity to be caught and processed year round, but is currently caught for just a short period of time. Major ports extend from Westport, Wash., to Eureka, Calif.

The fishery is regulated by the federal government as an Olympic or derby-style fishery: the government establishes a quota for the fishery as a whole and permitted vessels fish until the overall quota is reached. Vessels do not have individual limits, so vessel owners/fishermen race to catch as much of the regulated supply as early as possible to maximize their profits

Groundfish Fishery
The West Coast trawl groundfish fishery includes flatfish, sablefish and rockfish. These species are fished year round as far north as Blaine/Bellingham, Wash., and as far south as Avila Beach, Calif., with the industry accounting for more than 2,000 jobs. The fishery is regulated by the federal government as a limited entry fishery, managed through bi-monthly trip limits.

In earlier attempts to maintain fish stock and economic security for fishermen, the federal government reduced the groundfish trawler fleet by one-third by buying back trawl groundfish permits and vessels from their owners. The impact of a reduced fleet has devastated some coastal communities where processors have scaled back or closed due to limited or no product.

The Current Problem: A Monopoly and a Race for Fish

In the West Coast seafood industry, there are approximately 176 commercial groundfish limited entry permits; permit owners are allowed to commercially catch either whiting or groundfish. The permits enable vessel owners/fishermen to have a monopoly of a public resource. The results:

• Currently, permit holders sell their catch to whomever they choose at a negotiated price that is subject to market forces
• Processors must also negotiate to purchase and process safe food product product at costs subject to market forces
• Consumers, from individuals, to grocery stores, to restaurants, have choices in the seafood market that are influenced by price, quality, availability and sustainability of products. Currently:
• Too much product jams processing plants, inhibiting optimal protein recovery and creating more waste. Today 68% of the catch goes into non-value added products.
• Too much product at one time creates a feast or famine cycle for vessel owners/fishermen, processors, and the communities in which they operate.
• Conservation efforts take a backseat to speed, as the race to capture fish often results in greater by-catch (non-targeted or prohibited species).
• Coastal Jobs are at risk:
• In the groundfish industry, 4.3 people are employed by processors for each person employed as a vessel owner/fisherman
• In the Pacific whiting fishery, 12.5 people are employed by processors for each vessel owner/fisherman

Results of Quota Monopoly

Quota Options