Alaska State Chamber of Commerce
 

LEAD Partners


Click here to view
Leaders Effecting Alaska's Development


 
Industry Profiles :: Seafood Industry

Seafood Industry

The seafood industry is an important part of Alaska's economic and social fabric. For 150 years fishermen have come to Alaska because fish are abundant and the industry lucrative. The commercial fishing industry is second to the oil industry in contributions to the Alaska General Fund. Cities and boroughs of the state receive half of the state's fisheries taxes. In 2002 the fishing industry generated $46.8 million in taxes.

For most of Alaska's coastal communities, fishing is the backbone of the local economy. Fisheries-related jobs provide for about 74% of the wages from economic activity in Western Alaska. Very little other economic base is available in this remote region to replace the declining value of salmon. In 2000 the seafood industry represented a total of 16,445 full-time-equivalent (FTE) jobs in Alaska. Seafood processing made up 60% of Alaska's manufacturing sector and over 75% of its non-durable goods manufacturing in 2000. Nine seafood processors were listed among the top 100 employers in the state for 2000. Alaskans earned only 38% of the statewide total ex-vessel value in 2000.

Five billion pounds of fish and shellfish were harvested from Alaskan waters in 2002 with an exvessel value of $955 million. This represents nearly half of the commercial seafood harvested in U.S . (great introductory soft number) The exvessel values of Alaska's fisheries for 2002 brake down as follows (in millions): $141 for salmon, $553 for groundfish, $10 for herring, $121 for halibut and $130 for shellfish. Though the 2002 salmon catch exceeded the forecasted harvest and ranked 15 th highest in the last 125 years, the exvessel value was the lowest since 1975 and was only about half of the recent 5-year average. In addition to the low prices, the 2002 salmon season was characterized by reduced numbers of tenders and participating permit holders.

Industry Issues and Outlook

Aquaculture will be a pervasive force on the Alaska fishing industry. The Alaska salmon industry is struggling against farmed salmon. Sablefish, halibut and cod are also beginning to be farmed. To establish the superiority of its wild seafood brand over farm-based competitors, Alaska must embrace market strategies aimed at differentiating wild, natural products from farmed. To remain competitive, the industry must continue to lower costs and increase efficiencies while increasing product value and diversifying product options. Although Alaska does not permit finfish farming, it is legal to raise shellfish in the state. A growing number of aquatic farms in Alaska raise shellfish including oysters, mussels and clams. Additionally, the industry is gearing up to fish untraditional species such as sea cucumbers, sea urchins, and clams.

Alaska seafood suppliers continue developing new markets in response to the now decade-long recession in the Japanese economy – historically the principal market for Alaska seafood products. Global competition continues to challenge Alaska operators, but promising opportunities exist in the U.S. and Europe, and in emerging markets in developing nations.

Greater utilization of harvested fish and shellfish is an ongoing effort. Fish waste from processing operations has many potential uses including fuel, fertilizer, medicine, feed, and human food. The industry will continue to find alternative and profitable uses for fish waste.

Much of the production infrastructure in Alaska, particularly for salmon, is antiquated. Even the more progressive production operations for pollock continue to require product development support. Technical innovation and improved worker productivity are key elements in stemming the loss of valuable production capacity to developing countries with lower production costs.

Key Contacts

Alaska Department of Fish and Game
Division of Commercial Fisheries
P.O. Box 25526
Juneau, AK 99802
Tel: (907) 465-4210
Fax: (907) 465-2604
www.state.ak.us

Alaska Department of Community & Business Development
Edward Blatchford, Commissioner
P.O. Box 1108000
Juneau, AK 99811
Tel: (907) 465-2500
Fax:(907) 465-3767
www.state.ak.us

Pacific Seafood Processors Association
213 3rd St., Ste. 112
Juneau, AK 99801
Tel: (907) 586-6366
Fax: (907) 586-4618
www.pspafish.net

United Fishermen of Alaska
211 4th St., Suite 211
Juneau, AK 99801
Tel: (907) 586-2820
Fax: (907) 463-2545
www.ufa-fish.org

Top of Page


Juneau Headquarters: 217 Second Street, Suite 201, Juneau, AK 99801
Phone: 907.586.2323, Fax: 907.463.5515, Email: info@alaskachamber.com

Anchorage Office: 601 W. 5th Avenue, Suite 700, Anchorage, AK 99501
Phone: 907.278.2722, Fax: 907.278.6643

Copyright © 2003 - Present. The Alaska State Chamber of Commerce, all rights reserved.

Designed by WebWeavers Technology Group LLC™