Groundfish and Flatfish
Alaska Pollock
In response to concerns over age classes within the Alaska pollock stock, fishery managers with the North Pacific Fishery Management Council have taken precautionary measures by decreasing TACs. Over 1.5 million metric tons were harvested in both 2005 and 2006, but harvest declined to 855,000 MT by 2009. However, there is evidence that stocks are rebuilding as surveys indicate large numbers of pollock in younger age classes. The 2010 TAC and preliminary 2011 TAC are both higher than the 2009 TAC.
Despite pressure from farmed species such as tilapia and pangasius, prices improved substantially from 2003 through 2008. According to the most recent federal data, ex-vessel value from Alaska's pollock fishery was $323 million in 2008, despite a significant drop in harvest volume. Value data for 2009 is not yet published, but market reports indicate softer prices in the roe and surimi market segments.
Just as canned salmon gave way to more production of frozen product over the past decade, a similar product shift seems to be occurring in the pollock industry. Prior to 2007, over 40 percent of pollock harvested was processed into surimi and similar minced products. The surimi market is relatively flat, while demand for pollock fillets and other value-added products (such as frozen, breaded whitefish fillets) has risen. In 2009, fillets and H&G products increased to 44 percent of all product forms, while surimi and minced products fell to 27 percent of production.
With the reductions made to Alaskan TACs in recent years, Russia is now the world's largest harvester of pollock. In 2009, Russian fishing companies caught 1.33 million tons of pollock, about 47 percent of the total worldwide harvest. Russian quota increases are expected to drive an overall increase in the world supply of pollock in 2010.
Pollock sold for export breaks down into three basic categories: frozen fillets or blocks, roe, and surimi. Each product category has a dominant overseas market.
- The majority of frozen fillet exports go to European countries.
- Pollock roe, which is mostly sold at large, seasonal auctions in Seattle and Busan, South Korea, goes almost exclusively to Japan. Much of the roe exported to South Korea eventually finds its way to Japanese markets, where Mentaiko is a national staple.
Pacific Cod
The collapse of the North Atlantic Cod fishery is a well known story. Catches have steadily declined since the early 1980's when the fishery routinely harvested over 2 million metric tons of wild Atlantic cod. In 2008, world Atlantic cod harvest was down to 760,000 metric tons. However, there is some evidence that Atlantic cod stocks may be recovering after years of steady decline.
In an attempt to capitalize on the European appetite for cod, aquaculture companies invested heavily in farmed Atlantic cod projects. The industry appeared to take a step forward, as farmed Atlantic Cod production increased from 13,700 metric tons in 2007 to 21,400 tons in 2008. However, in the past year two major aquaculture companies (Marine Harvest and Cooke Aquaculture) have quit the cod farming business, instead choosing to focus on salmon.
Market reports out of Europe indicate a relatively large supply of small wild cod that pushed prices down during the first quarter of 2010. Norwegian fish-farming companies such as Atlantic Cod Farms and Cod Farmers are still operating facilities, but significant growth of the farmed cod sector may be constrained by the absence of large companies like Marine Harvest and Cooke.
Alaska accounts for the majority (66 percent) of worldwide Pacific cod production. Russia, Japan and South Korea account for the rest. In recent years world harvests of Pacific Cod amount to about half the world production of Atlantic cod.
Looking ahead to 2010, indications are that supplies of Pacific cod will increase. The TAC for Alaska's Pacific cod fishery was raised 16 percent and Russian quotas for Pacific cod increased 24 percent over 2009.
U.S. cod exports through March 2010 are up 55 percent over the same period last year. Available FOB price data through NMFS suggest prices have increased slightly. This is notable considering the increased supply of wild Atlantic cod in European markets, which anecdotally was keeping prices down during the first quarter of 2010.
Pacific cod initially penetrated many European markets as an acceptable substitute for Atlantic cod when those supplies declined. However, the recent stable price for Pacific cod (during a period of increased Atlantic cod supply) may suggest that Pacific cod serves a market function beyond its utility as a substitute for its Atlantic cousin.
Flatfish
Halibut aren't the only flatfish harvested commercially in Alaska, in fact, many more tons of flounder, sole, skates and plaice are caught every year. In 2009, nearly 600 million pounds of these smaller flatfish were harvested in deep-sea fisheries. Despite the impressive volume, over half the TAC went un-harvested. Fishermen only harvested 46 percent of the TAC in 2009, which is common for these species which are typically considered by-catch.
Alaska accounts for most U.S. flatfish production. In 2008, Alaskan waters produced over 90 percent of the flatfish harvested in the U.S. Alaska harvest of flatfish have gone up considerably in recent years, perhaps as a result of smaller TACs in the Alaska Pollock fishery.
The most significant flatfish species are yellowfin sole and rock sole. According to NMFS data, these two varieties of sole accounted for 75 percent of the total flatfish value and 72 percent of total flatfish volume in 2008. Yellowfin sole and rock sole are common in Asian cuisine, and the majority will find their way to markets in China, Japan and South Korea. In 2009, the U.S. exported 138 million pounds of yellowfin sole worth $79 million and 25 million pounds of rock sole worth $19 million, mostly to Asian markets.
