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A Salmon Glut Has Sent Prices Plunging, and Economists Don’t Know When They’ll Recover
KTOO ^ | August 28, 2023 | Brian Venua

Posted on 08/29/2023 6:17:09 PM PDT by nickcarraway

Kodiak fisherman Mike Friccero has fished for salmon for over four decades. He said he was expecting a low price for Bristol Bay salmon this summer, but didn’t think rumors were true about how low it would drop.

“Our processor gave us a letter, a narrative before the season started, saying that pricing conditions weren’t great but that they were going to go after it with all the resources that they utilized last year as far as tendering and logistics and resources in general,” he said. “And they asked if we would do the same.”

It’s been a tough year for commercial salmon fishermen. Three years of huge returns in Bristol Bay created a surplus of sockeye in the market. Towards the end of the season, processors announced a base price of just 50 cents per pound – the lowest price in decades, when adjusted for inflation.

Fishermen can get bonuses for better quality, but Friccero said even with the boost, he was better off gearing up to fish for other species like halibut.

“If you’re catching 5,000 pounds and you’re thinking 80 cents, then your crew’s share might be $400,” he said. “Well that’s worth doing for folks, but once it drops into the lower figures, if you have crew that have talent, they’ve got other things they want to get over to.”

Friccero said he usually leaves shortly after the peak anyway, but he wasn’t the only one packing up before August.

The Bristol Bay base price for sockeye was one of the lowest prices for Alaskan salmon in recent history. Since then, Trident has dropped their price for chum down to just 20 cents per pound in response to massive harvests in Russia and announced they will stop buying salmon from most communities in Alaska, starting Sept. 1.

Fishermen across the state are wondering how long the low salmon prices will last. Some are even considering selling their boats.

Gunnar Knapp is an economist who specializes in the state’s fisheries. He said for the sake of both fishermen and processors, he hopes that this is just a one-year blip instead of the beginning of a long term pattern.

“To get the lowest price you’ve ever gotten while you’re working just as hard as you ever did, and other expenses like fuel have gone up – it puts fishermen in a really tough position,” Knapp said. “I think processors would also say that they’re in a really tough position and their companies are on the line.”

Knapp was visiting family in Maryland when he saw in retail stores that wild caught seafood is now selling for the same price as farmed fish. He said he’s not surprised but still disappointed knowing the amount of work processors and fishermen do to produce high quality products.

“I was in a local Costco yesterday, and I saw in that Costco, farmed Atlantic filets from Chile and farmed Atalntic filets from Norway and wild Alaska sockeye all selling for $10.99 a pound,” he said.

The Alaska Seafood Marketing Institute is funded by the State Legislature to stir demand for Alaskan products. Greg Smith, the institute’s communications director, said there just isn’t enough demand to keep up with the glut of fish.

“There’s difficult issues in the global marketplace – inflation, increased cost of living, shipping costs, the Russian invasion of Ukraine, so there are just significant challenges,” he said.

Fishermen started the season with some processors still holding frozen product from last year’s harvest.

The seafood marketing institute received an extra $5 million in funding this year to better compete in global markets. But even with extra funding, staff are unsure if their short-term efforts like retail displays and working with food writers will help much. Smith said one of the institute’s bigger projects is investing in new markets across the globe.

“We’re focusing on emerging markets, Latin America, parts of Africa, we’re doing some things in Israel but it is just really trying to build off the strength of the brand,” Smith said.

Smith said they’ve had some success with retail and restaurants, and even worked with the U.S. Department of Agriculture to include salmon in purchases for school lunches and food banks. Alaska’s senators also brought the ranking member of the Senate Agriculture committee to Kodiak to make the case that fishermen should be included in the upcoming farm bill.

Friccero said with lower salmon prices, he’s able to keep a decent paycheck but will have to be wary of his budget for next year. He said he hopes market conditions improve over the winter.

The low prices this year has pushed several fishermen to call for better transparency from processors. Friccero said a guaranteed minimum price would be the best possible starting point to build more trust.

“Looking for transparency, anything would improve it right – because there’s almost none,” he said. “That doesn’t necessarily mean that we’re being mistreated in any way, it’s just very hard to have a conversation with no information.”

Regardless, Friccero said he’ll be back to fish more next year.


TOPICS: Business/Economy; Food; Local News
KEYWORDS: alaska; fish; fishing; food; salmon; stockup
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1 posted on 08/29/2023 6:17:09 PM PDT by nickcarraway
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To: nickcarraway

The price of most seafood seems to have dropped greatly. If one wants to know why, simply look across the Pacific.


2 posted on 08/29/2023 6:20:41 PM PDT by BobL (Trump has all the right Enemies; DeSantis has all the wrong Friends)
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To: nickcarraway

My cousin was harbormaster in Dillingham for years. He moved to Montana to avoid the cold.


3 posted on 08/29/2023 6:21:33 PM PDT by sasquatch
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To: nickcarraway
Maybe now's the time to head out to the sushi bar.


4 posted on 08/29/2023 6:24:18 PM PDT by Bounced2X (Boomer - I survived childhood with no bike helmet.)
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To: nickcarraway

Great! I like salmon.


5 posted on 08/29/2023 6:24:52 PM PDT by ought-six (Multiculturalism is national suicide, and political correctness is the cyanide capsule. )
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To: nickcarraway

As a salmon lover this is good to know


6 posted on 08/29/2023 6:25:22 PM PDT by libh8er
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To: BobL

Time to stock up. Nothing as delicious as Alaskan salmon. Waters are clean there too, so you don’t have to worry about what it’s invected with.

Friend of mine owned a commercial fishing bnoat in the Atlantic and said fish were sickly. Not sure what from, some kind of parasite apparently.


7 posted on 08/29/2023 6:25:40 PM PDT by Veto! (FJB Sucks Rocks)
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Wouldn’t mind seeing cold smoked salmon drop to 50¢/lb.


8 posted on 08/29/2023 6:26:11 PM PDT by Olog-hai ("No Republican, no matter how liberal, is going to woo a Democratic vote." -- Ronald Reagan, 1960)
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To: nickcarraway

Guess I should stock up on Salmon.


9 posted on 08/29/2023 6:27:34 PM PDT by MuttTheHoople (The best slaves put their own chains on )
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To: nickcarraway

It hasn’t dropped in the retail stores... Even canned Salmon is absolutely outrageous.

Price gouging cannot be denied.


10 posted on 08/29/2023 6:28:05 PM PDT by Openurmind (The ultimate test of a moral society is the kind of world it leaves to its children. ~ D. Bonhoeffer)
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To: nickcarraway

I’ve been getting full sockeye salmon filets at Sams Club lately and thought they were a good deal. I cut them up into portion sizes, put them in vacumn seal bags and freeze them. Good eating. Didn’t know there was a glut.


11 posted on 08/29/2023 6:29:03 PM PDT by glorgau
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To: nickcarraway

A perfect opportunity for BC, Alaska, Washington, Oregon and California to put a 4 year moratorium on salmon fishing to help rebuild the stocks.


12 posted on 08/29/2023 6:31:30 PM PDT by Don W (When blacks riot, neighborhoods and cities burn. When whites riot, nations and continents burn)
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To: BobL

I think I was paying around $13 a lb. For sockeye filets at the height of covid craziness.


13 posted on 08/29/2023 6:32:12 PM PDT by 31R1O (The people who can control themselves ought to be able to defend themselves from those who can't.)
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To: Openurmind

I looked for fresh salmon yesterday at a supermarket. It was $16.99 a pound!


14 posted on 08/29/2023 6:36:03 PM PDT by buridan
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To: nickcarraway

You can have my portion, blech! I’m more of a breaded Icelandic cod kind of guy. With chips and a cold stein of ale.

CC


15 posted on 08/29/2023 6:37:31 PM PDT by Celtic Conservative (My cats are more amusing than 200 channels worth of TV.)
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To: buridan

King?


16 posted on 08/29/2023 6:38:05 PM PDT by nickcarraway
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To: nickcarraway

Costco in Grand Rapids Michigan this past Saturday had the wild caught for 7.99 a pound. One big fillet cut into portions and vacuum sealed will last 6 months in the freezer easy.


17 posted on 08/29/2023 6:40:38 PM PDT by MomwithHope (Forever grateful to all our patriots, past, present and future, and a Humblegunner posse member.)
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To: Veto!

Gets harder to find wild-caught salmon as opposed to farm-raised.


18 posted on 08/29/2023 6:40:41 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: Openurmind

It’s laughable. Not cheap to buy for salmon eaters, just cheap to sell for salmon catchers!


19 posted on 08/29/2023 6:42:13 PM PDT by Alas Babylon! (Repeal the Patriot Act; Abolish the DHS; reform FBI top to bottom!)
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To: glorgau

I do the same thing! My husband isn’t a fan of fish so it lasts me a whole.


20 posted on 08/29/2023 6:42:49 PM PDT by AmericanMermaid
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