Crescent City Profile - California Sea Grant

e about 7% of gross, now it’s 26%...but thefish price is just the same.” Another participantcommented, “Fuel has gone from $0.85 agallon to $4.05 a gallon, and the price of fishis not keeping up. The high fuel cost meansyou really can’t scratch [go looking for fish].The cost used to be time; now you go into thered. You don’t take the risks.” According to thePacific States Marine Fisheries Commission’s(PSMFC) annual West Coast Marine Fuel PriceSurvey, average pretax fuel prices at NorthernCalifornia ports increased more than threefoldfrom $1.00 per gallon in December 1999to $3.19 in December 2007, and about 21%between January and December 2007 (PSMFC2000, 2008).At the same time, many commercial fishermencommented on stagnant or declining pricesin several fisheries. Our analysis comparingaverage annual prices for the recent term andthe long term suggests this is indeed the casefor the shrimp trawl (-33%), albacore (-21%),whiting (-13%), crab (-11%) and shrimp pot(-7%) fisheries. In the shrimp and whitingtrawl fisheries, market competition was citedas a cause of the decline. Study participantscited, for example, competition with Canadianshrimp beginning in the early 1990s. Thedrop in crab prices may be attributed to thesubstantial growth in crab production with themajority of landings still being purchased forthe lower price cooked (rather than live) crabmarket.At the same time, prices have increased forsome fisheries, including rockfish hook-andline(+82%), salmon (+13%), and groundfishtrawl (+5%). 32 The price increase for rockfishis likely due to the growth in markets anddistribution channels for live product in theSan Francisco Bay area. Salmon troll priceshave increased in years following a longperiod of decline, which has been attributed tothe growing supply and popularity of farmedsalmon in both domestic and internationalmarkets (Sylvia et al. 1998). Recent priceincreases may be attributed to the developmentof localized niche markets for wild (versusfarmed) salmon.Fish buyers and processors raised similarconcerns about rising costs, including thosefor utilities (power and sewer) and laborrelatedcosts (such as workers’ compensationinsurance), especially compared to nearbyOregon ports where state and local laws differ.Several discussed the problems posed by theharbor’s wastewater treatment plant, notingthe ongoing issues with its operation and highcosts, and its effects on harbor operationsand opportunities for seafood processing atCrescent City.Increasing costs and less favorable economicconditions also have affected fishery-supportbusinesses, both directly and indirectly. Thereduction in fishing opportunities and activityhas resulted in reduced demand for goods andservices that these businesses provide. A keyfishery-support business, Englund Marine, hasexperienced reduced demand for salmon andgroundfish gear and increased demand for crabgear, as well as a general shift toward morerecreational (salt and freshwater) business:We used to sell primarily commercialsalmon troll gear. We used to havea big bait freezer, but no longer. Inthe early 1990s, we started sellingmore sport gear….In earlier days itwas probably 60/40 commercial torecreational (inventory). Now it’s morelike 70% recreational inventory. We’vecompletely restructured the store in thelast year to adapt to the changes.As local fisheries expanded in the 1980s, ashaved ice plant was built on Citizens Dockto supplement local block ice production tomeet the growing demand from shrimp andgroundfish trawlers. Both plants operatedCrescent City Fishing Community Profile 45