The Spot Prawn Fishery: A Status Report - Earth Economics

The Spot Prawn Fishery: A Status Report
ing-processors were not in evidence on the fishing
grounds. Participation by catcher-processors seems
to be increasing, with approximately 60% of the
fleet now having freezers on-board (Love, ADFG.
Pers. comm., May 2001). Catcher-processor numbers
appear to have increased again for the 2000–
01 season, but these data have yet to be confirmed.
The ex-vessel value of the fishery at the close of
the 1999–2000 season was estimated at $2.8 million.
Markets remained strong for spot prawns in
2000 and prices were high, but prospects for 2001
appear to have softened as the Japanese economy
continues to slip and the average Japanese income
declines. Markets for spot prawns are cyclical and
considered fluid; fluctuations are not unexpected.
The majority of product in the fishery are whole,
sorted, dipped, and frozen-at-sea (FAS) prawns,
which are estimated to sell for $8.00/lb. wholesale
(whole weight), and as high as $70.00/lb. in restaurants.
This year there has already been a 30% decline
in unit price, indicative of the volatility of both the
price and markets for spot prawns (Stephen Wong,
SeaPlus. Pers. comm., June 2001).
The frozen-at-sea product type is considered
sashimi grade. Over 90% is sold to Japan. Frozen
spot prawns constitute less than 1% of total
Japanese shrimp imports (Wong, SeaPlus. Pers.
comm., June 2001). According to SeaPlus, which
buys both Alaskan and Canadian spot prawns
(40:60), the US market constitutes 5–10% of spot
prawn production. California is the primary US
market, but product is also sold in Chicago,
Detroit, Denver, Atlanta, and Florida.
Spot prawns are the “species of choice” for the
Asian live markets. Fishers throughout southeastern
Alaska devote at least part of their fishing time
to serving the live market (Paust, University of
Spot Prawn Product
Alaska Marine Advisory Program. Pers. comm.,
June 2001). While the live market is definitely a
high-value market, it is a difficult one to capture.
The difficulty, primarily logistical, is due to the
complexity and economics of organizing transportation
and shipping. SeaPlus’ Stephen Wong
said, “Shipping live in volume is an impossibility.
The difficulty of establishing effective transportation
linkages poses an enormous risk. The profits
from the live market just aren’t great enough to
take that risk.” It is also problematic due to the
possibility of transporting diseases, some of
which may not even have been identified, to
other regions and countries (Love, ADFG. Pers.
comm., June 2001).
Existing Management and
Regulatory Systems
Alaska’s Management Philosophy
The Alaska Department of Fish and Game, Division
of Commercial Fisheries, oversees management
and conservation of Alaska’s commercial fisheries.
“The mission of the Division of Commercial
Fisheries is to manage, protect, rehabilitate,
enhance, develop fisheries and aquatic plant
resources in the interest of the economy and
general well-being of the State, consistent
with the sustained yield principle and subject
to allocations established through the public
regulatory processes. The Division is responsible
for the management of the State’s commercial,
subsistence, and personal use fisheries;
the rehabilitation and enhancement
of existing fishery resources; and the development
of new fisheries. Technical support is
provided to the private mariculture and
salmon ranching industries. The Division also
plays a major role in the management of fisheries
in the 200-mile Exclusive Economic
Zone and participates in international fisheries
negotiations.”
(See http://www.cf.adfg.state.ak.us/cf_home.htm)
Regulations, particularly those governing allocation,
are determined by the Alaska Board of
Fisheries, based on recommendations from ADFG
and testimony from commercial, recreational, personal
use, and subsistence users. The BOF members
are appointed by the Governor and approved
by the legislature.
Photo Courtesy Stephen Wong, SeaPlus Marketing.
The Southeastern Alaska Pot Shrimp
Management Plan
The Board of Fisheries implemented a manage-
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