The University of Washington Alaska Salmon Program is predicting a harvest of 34.1 million sockeye next year in Bristol Bay.
That's well above the 29.5 million the Alaska Department of Fish and Game is forecasting.
Bristol Bay processors pay for the UW forecast. Read it here.
I've been reading the comments on the "price crisis" for the 2015 salmon season. I've got my own thoughts as well:
ReplyDeleteI feel that the fishermen are bankrolling the fish companies so the companies can afford to hold the final product over another year. We all know that the price of storing frozen and canned products is expensive, but if the fishermen are given a low price for product, then the fish companies can afford the storage price, in other words the Fishermen are bankrolling for the fish companies.
We already have a two year surplus of salmon products so what are these canneries going to have next year? Three years of surplus? The price of salmon on the retail side certainly has not gone down, very little if any, so by paying the fisherman a rock bottom price the companies can afford to pay for processing and storage for another year.
Why aren't canneries selling the product at a lower price so there isn't a surplus hold over, that way the fishermen might have a ghost chance in hell of getting a higher price next year. Passing a better price on to the consumer would be a win win for everyone and even if the fish companies broke even, it would help promote wild salmon.
Fishermen are reaching a point in the industry where they will not be able to supply the product, because it isn't cost effective to operate.
Every industry needs more revenue to operate these days and fishing is not different, as the price of operation goes up so should the price the fishermen receives, the price certainly shouldn't revert back to 1970's prices.
It is also true that the Japanese Yen is up on the dollar and Russia, being one of our largest canned salmon buyer, has an embargo against them right now, but these reasons alone certainly can't be why the fishermen's price is 1/2 of what it was in 2014.
Ok very simple, all salmon fishermen in Alaska should take a break in 2016 for market to recover.
DeleteWhat do you think?
Jonas... Did you finally speak your mind? Wheels are turning.....we hope.
DeleteYou have made some good observations. I don't disagree with your theory of the fisherman bankrolling the processors. In fact, I believe it happens quite frequently. It's just more obvious this year. The reduced yen value and Russian embargo are also causing market pressure. The only decent market this year is for fillets. The sad reality is that fishermen who's processors rely on traditional forms of product, such as cans, are looking at more years like this. If you don't align with a market such as Silver Bay or Leader Creek your long term prospects are dim. Nobody should expect us to strike for those refusing to invest and adapt to the new market realities. That is, delivering bled, chilled floating fish. I know, SB may not be a price leader this year but in the long run, SB or markets with similar models are where you need to be.
ReplyDeleteI would like to see the chain of ownership of BBay reds.
ReplyDeleteFirst the fisherman get .65 cents .
The processor pays .65 , what does the processor end up with, profit per pound? What's his "take home"?
Who is third in line, what is his investment and profit?
And so on down the line.
The price to consumers doesn't seem to drop when grounds price is low. So who is making all the money? I'm not convinced it's the processors.
Anyone got the breakdown?
I am with 12:18 TAKE A BREAK IN 2016. We are all in the same boat take a break. I have already informed my market if there was not an adjustment by EXPO we would be taking a break next year. 1970's prices, fuel, airfare, nets, insurance average boats expenses are around 20k figure it out.
ReplyDeleteAs a Silver Bay fisherman I DEFIANTLY ENCOURAGE every one to sit at home and not fish the upcoming season........Thank you in advance
ReplyDeleteI will send a thank you note to the ones who elect to not fish the 2016 season. With not owing a thing on my permits, and modern boat, I will make money. I hope 5-10-15% of the fleet decides not to fish, it just gets me excited!
ReplyDeletedont rub them hands to quickly there bound to catch FIRE take that to heart burn burn burn it down burnin it down to the f ing waterline to be so smart buy in to SB and its a f ing FIRE sale where all that profit ''sharing'' now db the last in line?ha ha ha
ReplyDelete8:56, Were you drunk when you tried to type that?
ReplyDeleteI love the comments about not taking a break. The biggest problem with Bristol Bay is most of the guys are not fisherman. Its a hobby, Daddy bought them a boat, Daddy left them a boat in their will or my other boat makes my money in another fishery. What is the mentality of I hope guys stay home because of low price so I can go and catch more at a low price.
ReplyDeleteThe guys in southern california figured it out years ago you can not make money because of volume you also need price. Now that squid is worth about as much as sockeye per pound who are the smart ones. All they did is come up with a price for the markets......by not going.