The federal government published an “economic snapshot” in October that said Alaska’s commercial fishing industry in 2023 was about half as profitable as it was in 2021. Last year in particular marked one of the worst years for commercial fishermen in modern history.
Alaska Public Media’s Ava White talked with KMXT’s Brian Venua, who’s kept a close eye on commercial fishing, to break down the report.
This script has been lightly edited for clarity and length.
Ava White: So Brian, it’s not a secret that there has been a major crash in fisheries in the last few years. What’s new about this report in particular?
Brain Venua: National Oceanic and Atmospheric Administration economists estimated that industry-wide profits have plunged in the last few years. As a whole, commercial fisheries in Alaska were estimated to be worth $1.8 billion dollars less in 2023 than in 2022.
That’s split between wholesale values being down by about a quarter year over year – about $1.2 billion dollars. Vessel revenues were also down by over $600 million, according to the report.
NOAA is the government agency that manages a lot of Alaska’s fisheries. According to data linked in the report, people in the industry asked NOAA for a sort of independent snapshot.
I think the big thing is that it helps put numbers to things that a lot of people already know – that commercial fishing has had a really tough time.
AW: That’s huge for the industry, did the report point to any particular reasons why there was such a large drop?
BV: One of the biggest contributing factors for the reduced profits is that a lot of these businesses are facing higher costs.
For example, one issue the report outlined is that Alaska seafood processing workers wages increased substantially from 2022 to 2023, although it didn’t say by how much. While higher pay can be good for workers, that money has to come from somewhere.
Higher interest rates for loans played a role in lowering profitability according to the report. Several processors took on loans because they had a hard time selling inventory, like the huge sockeye harvests in Bristol Bay. There’s also higher energy prices.
AW: So what about on the demand side of things? A lot of the seafood harvested around Alaska is exported – what’s going on with markets?
BV: The state’s seafood products’ ability to compete on an international stage has been a huge problem for the industry.
Russia is a huge competitor against Alaska products. A lot of seafood harvested by Russia is also processed in China and while the report didn’t list exact numbers, workers in those nations are paid less than their American counterparts. That means they’re able to undercut the prices of Alaska products.
That’s on top of trade barriers, especially with Russia. That country banned American seafood over a decade ago, but was still importing fish to the U.S. until President Biden banned it in an executive order late last year. The ban is taking effect this year, but doesn’t do anything for other countries with large seafood markets – like Japan. That country’s traditionally been a bigger buyer, but their economy has been a bit shaky recently.
There’s been a lot of push from Alaska’s federal delegation to encourage foreign allies to establish similar bans, but it’s also unknown when, or if, that will happen.
AW: Speaking of the federal government, how have policies affected the situation?
BV: I’ve heard Sens. Murkowski and Sullivan, as well as Rep. Peltola all say fisheries need some sort of revenue insurance, similar to the crop insurance farmers have. And this report listed that could be a major factor in competing on the international stage as well.
Murkowski said she hopes to incorporate fisheries when the government renews the federal Farm Bill, but said at a meeting with reporters in August that she doesn’t see that happening this year.
AW: So obviously fishermen are feeling this market crunch here, but are there bigger ramifications for this? Is Alaska the only state feeling the pressure or are other areas struggling too?
BV: Alaska produces the most seafood in the country by far. The Alaska Fisheries Science Center’s director, Robert Foy, said in the report that the losses in Alaska have “reverberated down the West Coast and across the country.”
The report included that Alaska losses turned into a $4.3 billion loss nationally, with nearly over 38,000 people losing their jobs.
State and local taxes alone were down $269 million between West Coast states like Washington, Oregon and California, in addition to Alaska.
This species-wide crash and its effects could be compared to the salmon market crash of the early 2000s, when farmed salmon started being sold on the global seafood market.
AW: So what does all of this mean for fishermen and fishing communities then?
BV: Fishermen have been dealt blow after blow from low prices at the docks, to processors selling assets and closing facilities.
The NOAA report acknowledged that both the Bering Sea and the Gulf of Alaska have faced major challenges over the last decade. In that timeframe, the number of fishing vessels in the Bering Sea was reduced by nearly a third from what its fleet once was. The gulf saw a 20 percent reduction across fleets there too.
The October edition of Alaska Economic Trends, a state-sponsored magazine, projected fisheries will recover in the next 10 years, but it’s hard to say when or what that recovery will look like.
