Kodiak fishermen Mike Friccero has fished for salmon for more than 40 years. He told me he was hoping for to pay a lower cost in Bristol Bay salmon this summer but was skeptical that there was any truth to the claims about the price it could fall.
“Our processor sent us an email, a story prior to the start of the season in which they stated that the conditions for pricing were not great, but that they’d take on it with all the resources they used in the past, including tendering and logistics as well as resources generally,” he said. “And they asked us if could do the same.”
It’s been a challenging time for commercial fishermen. Three years of massive yields at Bristol Bay created a surplus of sockeye on the market. At the close of the season, the processors have announced a price base of 50 cents per kilogram – the lowest prices ever, when adjusted to inflation.
Fishermen may earn bonuses for higher quality fish, but Friccero claimed that even with the boost it was more beneficial to gear up to catch other species, like Halibut.
“If you’re taking in five hundred pounds and thinking of 80 cents, the share of your crew could range from $400 to $600,” He said. “Well it’s a good idea to do for the people who are interested, but once it reaches the lower numbers and you have people with talent with other skills, they’ve got something else they’d like to move to.”
Friccero told me that he typically departs at the end of August, just after the peak and he wasn’t even the only one who had to pack up prior to August.
In the past, Bristol Bay base price for sockeye was among most affordable prices paid for Alaskan salmon in the recent past. Since that time, Trident has dropped their price for chum to only 20 cents a pounds in response to the massive production in Russia and also announced that they would stop buying salmon from the majority of communities in Alaska beginning in September. 1.
Fishermen from all over the state are pondering how long the current low prices for salmon will remain. Some are even contemplating selling their vessels.
Gunnar Knapp works as an economist who has a specialization in the state’s fishing. He said that for the good of both processors and fishermen He hopes this is an unintentional blip in the year and not the beginning of a longer time pattern.
“To receive the lowest price you’ve ever received while doing the same work as you have ever worked as well as other costs such as fuel are rising and places fishermen into a in a difficult spot,” Knapp said. “I believe processors will also consider themselves in a very difficult spot and their businesses are at risk.”
Knapp was in the state of Maryland with his family Maryland when he noticed in the stores selling retail that wild-caught seafood is being sold at the same cost as fish that is farmed. He admitted that he’s not shocked but is still disappointed by how much effort fishermen and processors put into to make high-quality products.
“I went to the local Costco yesterday and found at the Costco there were farmers who produce Atlantic Filets in Chile in addition to the farmed Atalntic Filets of Norway as well as wild Alaska Sockeyes all sold for $10.99 per pound,” the man said.
The Alaska Seafood Marketing Institute is supported through the State Legislature to stir demand for Alaskan products. Greg Smith, the institute’s director of communications, has said that there’s not sufficient demand for Alaskan products to keep pace with the flurry of fish.
“There’s challenging issues to be faced in the global market – inflation, rising cost of living, rising shipping costs, and the Russian invading Ukraine and so on. There are many challenges,” he said.
The season began for fishermen with some processing companies still stocking frozen products from the previous year’s harvest.
The institute’s seafood marketing has received an additional $5 million in funds this year to help it compete in the international market. Even with this extra money staff aren’t sure whether their short-term initiatives like display displays at retail stores and cooperating with chefs can aid in any way. Smith stated that among the institute’s biggest projects is investing in the development of new markets all over the world.
“We’re focused on new markets like Latin America, parts of Africa We’re also doing a few activities in Israel but we’re trying to build on the strengths of the brand” Smith said.
Smith stated that they’ve had some successes with restaurants and retail and have even partnered together with U.S. Department of Agriculture to include salmon in purchases made for school meals as well as food bank donations. Senators from Alaska also invited the top member on the Senate Agriculture committee to Kodiak to argue fishing should also be included in forthcoming farm bill.
Friccero said that with lower prices for salmon and lower salmon prices, he’s able to earn an adequate income, however, he’ll have be aware of his budget for the coming year. He said he’s hoping that conditions in the market improve over winter.
The low cost this year have prompted a number of fishermen to demand greater Transparency from processing companies. Friccero suggested that a minimum guaranteed price was the ideal start to create more confidence.
“Looking for transparency, any thing would make the situation – since there’s very little,” he said. “That doesn’t mean we’re treated unfairly in any way. It’s extremely difficult to conduct an exchange of information without any context.”
However, Friccero said he’ll be back to catch more fish next year.
