AEB Fishermen’s Meeting
FRIDAY November 22, 2024 10AM
via Teams/virtual meeting
Teams meeting will be held at Aleutians East Borough meeting places –
• Sand Point Borough Office
• King Cove Borough Office
• False Pass City Office
• Nelson Lagoon Tribal office
• Anchorage AEB office conference room
Fishermen wishing to logon individually should contact the Natural Resources Department for
login info.
Meeting also scheduled to be broadcast live on local radio KSDP and at www.apradio.org
Draft Agenda
• Board of Fisheries update
• North Pacific Fishery Management Council items
• Groundfish Plan Teams update
• Alaska Legislative Seafood Industry Task Force, other meetings
• AEB projects
• Fishermen’s open forum
For more information, please contact Aleutians East Borough:
Natural Resources Director Ernie Weiss 907-274-7557 eweiss@aeboro.org or
AEB Fishery Analyst Charlotte Levy 907-274-7566 clevy@aeboro.org
The At-Sea Processors Association, which represents Alaska’s pollock industry, has announced that its longtime leader is preparing to retire.
In a statement Monday, the group said former Unalaska resident Stephanie Madsen will step down at the end of the year. Madsen has been with the association since 2007, following nearly five decades in fisheries. She was also the first woman to chair the North Pacific Fishery Management Council.
Matt Tinning, who has worked with the association for about five years and led sustainability initiatives, will succeed Madsen as executive director.
The trade group represents five companies operating 15 large catcher-processor vessels in the Bering Sea pollock fishery. Madsen’s retirement comes as the industry faces ongoing scrutiny over pelagic trawling.
Earlier this year, Rep. Mary Peltola introduced legislation that would heavily restrict the trawl fishery, which Madsen warned would create “unworkable and burdensome new federal mandates.”
The association said Madsen will retire at year’s end after 18 years as its executive director.
It’s unclear how the sale will affect King Cove, which relied on the processing facility as its main economic driver until it closed in January.
A Washington state judge approved a deal on Thursday giving the assets of Peter Pan Seafoods to the company’s former co-owner Rodger May, a decision that follows months of controversy over the seafood processing company, which ceased operations this year.
May placed the winning bid for the company’s assets at auction last month, but the sale wasn’t approved until Thursday’s hearing, when King County Judge Steven Olsen signed the motion to approve the $37.3 million sale, which includes processing plants in Port Moller, Dillingham and King Cove.
“I really haven’t heard anybody say that the receiver failed to comply with that order approving the sale,” Olsen said.
Peter Pan Seafood Company was placed into a court-ordered receivership back in April at the request of Wells Fargo, which pointed to more than $60 million in debt owed by the Alaskan processing company. A receivership is a process similar to bankruptcy, but intended to protect a company’s lender. Both Wells Fargo and the court-appointed receiver, the Los Angeles-based Stapleton Group, supported the deal proposed by May.
However, more than 90 Alaska fishermen in August signed a letter that opposed selling Peter Pan’s assets back to May, saying that May had broken the fishing community’s trust by not paying fishermen.
“Mr. Rodger May and co-owners have done irreparable harm to the many people and their families that make their living from the commercial fisheries on the Alaska Peninsula,” they wrote. “There are still many fishermen that have not been paid for fish they delivered as well as vendors and tenders not being paid for goods and services provided.”
It’s unclear how the sale will affect King Cove, which relied on the processing facility as its main economic driver until it closed in January.
May acquired Peter Pan back in 2020 with the backing of California-based RRG Capital Management and McKinley Capital Management, which used funds from the Alaska Permanent Fund Corporation’s in-state investment program.
May attended the meeting on Zoom but did not speak during the hearing. May also did not respond to a request for comment from KUCB.
Rodger May, an entrepreneur and fish trader, narrowly beat out another industry player, Silver Bay Seafoods, with his $37.3 million bid. The sale must still be approved by a Seattle court.
One of the original investors in a troubled Alaska seafood company has narrowly outbid competitor Silver Bay Seafoods in an auction for the firm’s assets — including a major processing plant in the Alaska Peninsula village of King Cove.
Rodger May, an entrepreneur and fish trader, bid $37.3 million for the assets of Peter Pan Seafood, including two other processing plants — one in the Bristol Bay hub town of Dillingham and another in a remote part of the Alaska Peninsula called Port Moller.
May’s bid was $257,000 higher than the bid offered by Silver Bay Seafoods, a major Alaska seafood company that’s expanded rapidly in recent years.
The sale of Peter Pan, which operates primarily in Alaska with a business headquarters in Washington, isn’t final. A confirmation hearing in Peter Pan’s receivership case — a bankruptcy-like proceeding overseen by a Seattle court — is scheduled for Oct. 3.
May’s seafood trading company is one of three original investors who bought Peter Pan from a Japanese conglomerate in 2020. The other two investors are private funds, one run by Anchorage-based McKinley Capital Management and another led by Los Angeles-based RRG Capital Management.
May’s winning bid was summarized in a 115-page document filed in the case by the Los Angeles-based financial managers, the Stapleton Group, charged with managing Peter Pan’s assets through the receivership. It says May will pay $25.3 million of the purchase price in cash, with the rest to come from a credit to account for $12 million that May previously lent the company.
The document — a brief formal notice to the court with along with a detailed purchase and sale agreement — leaves an array of unanswered questions. Those include whether and when fishermen owed money by Peter Pan could be paid off with proceeds from the sale.
The document also does not say whether any of the proceeds will go toward paying McKinley Capital Management, whose investment in Peter Pan was partially financed by the Alaska Permanent Fund Corp. — the agency that manages the state’s $79 billion oil wealth endowment.
The sale documents also do not commit May to reopening the aging King Cove plant, which has been shuttered for months and is valued at just $200,000 by the sale agreement.
May also may face challenges in recruiting fishermen to sell their catch to Peter Pan’s plants.
He’s been criticized in recent weeks by former Peter Pan fishermen, some of whom have said they went unpaid by the company and filed liens against it.
Dozens of fishermen wrote an open letter last month saying that trust with May and his business “has been permanently broken” and that they “will not deliver fish or be in a business relationship” with him again.
May did not immediately respond to a request for comment, and neither did an official from the Stapleton Group.
Nathaniel Herz welcomes tips at natherz@gmail.com or (907) 793-0312. This article was originally published in Northern Journal, a newsletter from Herz. Subscribe at this link.
The Peter Pan processing plant in Dillingham, Alaska. (Meg Duff/KDLG)
This spring, Peter Pan Seafoods was put into a receivership by a Washington state court after the company became unable to pay its bills. Silver Bay Seafoods stepped in to operate Peter Pan’s plants in Dillingham and in Port Moller. It also put in a bid for some of Peter Pan’s assets. But then, one of Peter Pan’s owners came back with a counter offer—and an accusation: that the bidding process wasn’t fair. He recently scored a victory in that battle.
Reporter Kirsten Dobroth has been covering Peter Pan for Undercurrent News. She spoke with KDLG’s Meg Duff about this summer’s developments.
Meg Duff: Peter Pan Seafoods was a fixture in Bristol Bay for decades, but last year, the company ran out of money and could no longer pay its debts. It didn’t go bankrupt, exactly; instead, it was put into receivership. Can you explain what happened?
Kirsten Dobroth: Right. So, bankruptcy is typically a voluntary legal process where a company in financial trouble would seek out protection from collections. In this case, Wells Fargo, which is Peter Pan’s major lender, petitioned a court in King County, Washington back in April to place the company in a receivership, which is a way for creditors to recover debt. Another difference is that a receivership is involuntary and allows a court to appoint a neutral party to sell off assets and pay back that debt.
Duff: Okay got it, and that request from Wells Fargo was granted by the court back in April.
Dobroth: Yeah, exactly. Wells Fargo said in its request that Peter Pan had missed payroll and owed tens of millions of dollars, and the court appointed a fiduciary group based in California to be the receiver.
Duff: Peter Pan’s King Cove processing facility is now closed, and Silver Bay is running its Dillingham facility and its Port Moller facility. But Silver Bay doesn’t actually own those facilities. Not yet anyway. What’s going on there?
Dobroth: Well, exactly that so far. Before this all happened, Silver Bay said that its plans for this summer in Dillingham and Port Moller were part of its long term restructuring plan. Since then, Silver Bay has reiterated that it intends to work with Peter Pan’s court appointed receiver on any long term plans for the facilities. But there hasn’t been a lot of news, at least as far as acquisitions from Peter Pan, outside of that.
Duff: This summer, while folks in Bristol Bay have been busy fishing, Silver Bay put in a bid. Then Peter Pan owner Rodger May swooped in to counter bid. Tell us the story of that bidding war.
Dobroth: I think it’s important to get out in front and say anything we know about these bids are coming from claims made by Peter Pan’s co-owner Rodger May in court documents. So there’s not really a paper trail to look at and say this person offered this much for this processing plant. That being said, Rodger May has argued – again, in court filings – that the process hasn’t fairly estimated the worth of some of Peter Pan’s assets. He says in one instance he learned of a bid from Silver Bay for some of those assets and put in his own offer, which wasn’t accepted. I guess one of the more concrete things I can say is that in the last week, Rodger May asked the court to approve his request to purchase eight Peter Pan assets, including the Port Moller processing facility and the fuel business in King Cove.
Duff: Oh interesting! So May is still trying to get some of Peter Pan’s assets back, but it’s not really clear if he is trying to get everything back.
Dobroth: Right.
Duff: In addition to claiming that Silver Bay had an unfair advantage, May also claimed that Peter Pan owed him money. What did the court say about those claims?
Dobroth: Yeah, again in court filings, Rodger May has argued that he and his wife are also Peter Pan creditors and owed about $40 million. He has also claimed that Silver Bay hired away Peter Pan executives as a way to buy up some of the company’s assets, which Silver Bay very quickly said was not true. The court won’t necessarily rule on all these individual things. But it did amend the receivership order recently upon his request to allow for more time and transparency for the sale of the company’s assets, which he had argued would benefit junior creditors – so people who are owed money other than Wells Fargo.
Duff: So now May can bid on any of Peter Pan’s assets. And so can anyone else. Do we know yet who will wind up running these facilities after the season ends, or is it still anyone’s guess?
Dobroth: Yeah, there’s been some rumors as far as the facilities that are up for sale, but nothing’s been announced. There’s also assets that aren’t real tangible property, like fisheries quota, so it’s hard to say who will end up with what when all is said and done.
Peter Pan’s grounds are normally bustling with workers, but the boardwalks and bunkhouses are now empty.
Alaska’s fishing industry has faced major challenges this past year. Low fish prices and high overhead costs have led some of the industry’s biggest players to sell or shutter their processing plants, sending shock waves through the coastal communities who rely on those canneries.
Perhaps no other community has been harder hit than the small city of King Cove, near the tip of the Alaska Peninsula, 600 miles from Anchorage, the closest major city.
Its only seafood processor closed almost overnight this spring, and the city is reeling, not only from the loss of 75% of its revenue, but from the larger questions of the city’s survival.
King Cove didn’t even exist until 1911 when a seafood company, Pacific American Fisheries, opened a salmon cannery, and Unangax̂ folks moved in from surrounding villages to work there.
That fish processing plant grew to become one of Alaska’s largest. Peter Pan Seafood Co. employs about 700 seasonal workers at its King Cove facility during a typical summer. That means housing 700 people in company bunkhouses, and feeding those people daily.
The freezers and pantries were packed when the cannery, burdened by debt, closed, just before salmon season, so the company gave the food away to the community.
Ernie Newman, 65, just retired from a lifelong fishing career. Like most folks in town, he’s a company man.
“I fished for Peter Pan all my life, tendered for ‘em,” Newman said.
He was one of about 100 residents who attended the pop-up pantry at King Cove’s old school, filling his shopping cart with canned pineapple and pancake mix.
Community members attended a pop-up pantry on June 14, picking up food left behind by the seafood company’s last-minute closure.
“Peter Pan finally doin’ us a favor,” Newman said. “Oh, dandy.”
City Clerk Cora Rocili helped organize the food drive. Another lifelong resident, her parents met at the cannery, and she grew up living in company housing and hanging around the fish plant with the other workers’ kids.
“They called us the Peter Pan Brats,” Rocili said.
Just about every business in town revolves around fishing. Rocili moonlights as a bartender at MC’s Bar, near the harbor. But she says the bar is empty these days.
Everybody’s affected by what’s going on with Peter Pan. It’s sad to see. It’s definitely something I never expected to see,” she said.
Local business-owner Lillian Sager runs a food truck, and she said her business has been cut in half, forcing her and her husband to make a tough decision.
“We’re moving,” Sager said. “This is our home. This is where you know, our ancestors lived and we want to stay here, but we’re moving to Washington [State].”
Many of the folks in town are direct descendants of the Unangax̂ and European families who founded the town. That includes Mayor Warren Wilson, a third-generation King Cove fisherman who also runs a boat welding service. He said one of his welders has also moved away to find work, a trend he finds troubling.
Mayor Warren Wilson is a third-generation King Cove fisherman. He hopes the city can attract another seafood company to buy the Peter Pan facility.
“Once you start losing your population, you lose your school, and once you start losing your school, you lose children. Once you start losing children, you lose smiley faces, and then you don’t hear the laughter anymore. That’s when your community is going to die,” he said.
Wilson hopes the city can convince another seafood company to buy the Peter Pan facility. An Alaska-based company took over some of Peter Pan’s other facilities earlier this year, but didn’t purchase the King Cove plant. The town is hoping that someone comes along soon. Nobody made an offer in time for the summer salmon season, so folks are hoping it happens in time for fall.
The factory trawler Alaska Ocean seen in Dutch Harbor during A Season 2023.
Communities in the Aleutians are pushing back against proposed legislation that would bring stricter regulations to the Bering Sea trawl fishery.
The City of Unalaska and the Aleutians East Borough are among 53 organizations that signed onto a letter sent to U.S. Rep. Mary Peltola last week, urging her to withdraw H.R. 8507, a bill she sponsored in May.
The proposed legislation aims to add new regulations to where trawling can take place across the United States, not only in Alaska.
Trade organizations and some coastal communities whose economies rely on trawl fisheries have pushed back against the bill, asking the congresswoman to repeal it.
“If enacted, H.R. 8507 would directly harm fishermen and coastal communities in Alaska and throughout our nation, along with countless other people who rely on a healthy domestic seafood sector for food, jobs, and their way of life,” the letter said.
Alaska’s fishing industry has experienced major turmoil in recent years. The collapse of some fish stocks, like Bristol Bay red king crab, the decrease of salmon prices in world markets, and a flood of foreign fish have led to something of a crisis in Alaska’s commercial fisheries.
The Aleutians East Borough, which consists of six communities on the Alaska Peninsula and Aleutian Chain, has been hard hit by fluctuations in the industry. Low salmon prices last year and the closure of Peter Pan Seafood Co., which operated in the borough, have led community leaders to sound the alarm.
“Our major source of revenue is from raw fish taxes on seafood products, the majority of which comes from Alaska trawl fisheries,” said Aleutians East Borough Mayor Alvin D. Osterback. “These revenues fund our schools, community services, and our infrastructure.”
“If our trawl fisheries were to be substantially harmed by the requirements of this legislation … then it all comes to an end for us out here,” he added.
Bycatch has been a hot-button issue in Alaska’s fisheries, and Peltola promised to limit the accidental catch of non-targeted fish during her campaign. Dismal salmon returns in Western Alaska have created an existential threat to the region’s subsistence culture, and brought increased political pressure to limit bycatch in the Bering Sea, which some say is exacerbating the problem.
“Predatory industrial and foreign trawlers, ineffective management systems, a changing climate, and more have all played their own role,” Peltola said in a statement on her website.
But the letter’s authors point to research from the National Oceanic and Atmospheric Administration Fisheries Science Centers, which suggests climate change, not bycatch, is the reason salmon numbers have fallen so drastically.
“This science shows climate-related shifts in our nation’s marine ecosystems, including significant changes in the distribution of fish populations and other marine life,” the letter says.
The authors continue to say that Peltola’s proposed legislation would hinder regulators’ ability to effectively manage fisheries, calling the bill’s methods “archaic and counterproductive.”
Alaska’s seafood industry is the economy’s second largest sector, falling behind only oil and gas.
Stephanie Madsen, executive director of the seafood trade organization At-Sea Processors Association, said the legislation would hurt seafood workers, one of the largest working groups in the state.
“This bill threatens seafood sector jobs in Alaska and across the United States. More than 1.5 million Americans have jobs that depend on commercial seafood, and they deserve better than the politicization of fisheries science and management,” she said.
The summer season for Alaska’s largest trawl fishery, Alaska Pollock, opened June 10 and can last as long as Nov. 1.
Representatives from Sens. Lisa Murkowski and Dan Sullivan’s offices arrived in Sand Point Monday, their first stop on a multi-city tour around the region. The trip, which will include stops in King Cove and False Pass, comes ahead of a strategic plan the senators are expected to present to the Secretary of Commerce this summer.
Matthew Robinson, a legislative assistant with Murkowski’s office, and Sullivan policy advisor Carina Nichols, are meeting with community leaders, fishermen, and community members to hear about the impacts of Alaska’s fishing industry on locals.
Coastal communities along the peninsula have been hard hit in recent years; fish numbers and prices have been low, putting the squeeze on local budgets and households.
The congressional representatives are also traveling with Abby Fredrick from Silver Bay Seafoods, and they plan to fly to King Cove Monday evening, where the community is dealing with the closure of Peter Pan, the town’s only seafood processor.
King Cove has recently implemented several state-of-the-art infrastructure projects, including a hydroelectric power plant capable of supporting the large processing facility.
The group plans to fly to False Pass Tuesday, where Silver Bay recently took over the Trident plant, before ending their tour in Bristol Bay.
Sens. Sullivan and Lisa Murkowski are expected to present a strategic plan to the Secretary of Commerce sometime later this summer.
Buck Laukitis’ boat, the Oracle, sits in Homer last month before unloading its catch of halibut. (Nathaniel Herz/Northern Journal)
Northern Journal / Nathaniel Herz
HOMER — On a brilliant spring morning, Buck Laukitis, a longtime fisherman from this Kenai Peninsula town, stood at the city dock watching his catch come ashore.
Crew members aboard Laukitis’ boat, the Oracle, filled bags with dozens of halibut — some of the fatter ones worth $200 or more — which a crane would lift up to the dock. There, processing workers on a small slime line weighed the fish, tossed crushed ice into the gills and slid them into boxes for shipment to Canada.
Harvest, unload, sell, repeat — exactly how the iconic Alaska commercial fishing industry is supposed to work. Until you ask Laukitis about the Oracle’s sister vessel, the Halcyon.
Instead of fishing for another species, black cod, like it’s built for, the Halcyon is tied up at the dock.
For Laukitis to make money, processing companies would need to pay $2.50 for each pound of black cod delivered to a plant. But right now, buyers aren’t paying much more than $1.50, he said.
With Laukitis on the dock last month were his young grandkids and adult daughters — fishermen who run a popular brand called the Salmon Sisters.
A fish processing worker tosses a halibut unloaded from the Oracle into a box for shipment. (Nathaniel Herz/Northern Journal)
Those generations, he said, were on his mind as a sharp downturn in Alaska’s fishing industry continues looming over his livelihood. Some say that the crisis, driven by an array of market forces and economic factors outside fishermen’s control, is the biggest for the industry since statehood.
“We’re trying to do multi-generation fishing,” Laukitis said. “But believe me: It keeps me up at night, wondering about the future.”
Roughly a year into the downturn, with the major summer harvest of salmon just starting, there are some signs of recovery. Some fishermen say they managed to turn profits even after last year’s plunge in prices. And startup businesses are launching new models for processing that they say could help boost the quality and value of Alaska’s catch.
But major threats persist, many of which fishermen feel powerless to affect — posing existential risks to a $6 billion industry that employs more than 15,000 Alaskans.
Industry and state elected leaders say they expect Russia to continue selling huge quantities of fish into global markets, undercutting the prices of Alaska’s harvests — which also have to compete with farmed fish.
Inflation and high borrowing costs are hammering processing companies, which typically take out huge loans to buy supplies and stage workers and equipment at the start of each summer salmon season. Plants and whole processing businesses have shuttered around the state, while others are putting assets up for sale.
Fishermen who have made big investments in recent years now own permits that could be worth a fraction of the purchase price.
Permits to participate in the typically lucrative Bristol Bay salmon fishery were going for $260,000 two years ago; now they’re selling for $140,000.
Many skippers face steep startup costs for the summer season without much confidence that their harvest will pay off. Some who are nearing retirement are having to postpone those plans until they can sell their boats and permits at higher prices.
A fishing boat sits at the dock at Homer’s harbor last month. (Nathaniel Herz/Northern Journal)
“There are people who literally cannot afford to go fishing. They’re going to be paying money out of their own pocket to deliver their fish pretty soon,” said Maddie Lightsey, who brokers sales of permits and boats at her family business in Homer. “But they also can’t afford to sell, because the market has crashed and come down so far that they’re dramatically upside down on their loans.”
Most Alaska fishermen are in the business for the long haul, not for short-term investment returns. But some, like 41-year-old Erik Velsko, are starting to hedge their bets.
Velsko, another longtime Homer fisherman, is studying to get his ship’s pilot license, in case his chosen career doesn’t work out. Others said they’re looking at jobs in health care and aboard state ferries.
“That’s how much faith I have in, at least, the fisheries we’re doing,” Velsko said. “It was pretty good, for quite a while.”
“Nothing to fall back on”
The industry turmoil first started generating big headlines after last summer’s Bristol Bay salmon harvest, when processing companies announced they would pay fishermen per-pound prices that were roughly half of the previous year’s.
The prices, which prompted vehement protests from fishermen, were the lowest in two decades, and they could end up being the lowest on record, according to a preliminary analysis by the Alaska Seafood Marketing Institute.
But the focus on salmon has, to a degree, overshadowed that the crisis is broader, covering an array of other species.
Among the biggest problems is pollock — a whitefish harvested in huge quantities in the Gulf of Alaska and Bering Sea. It’s sold into markets in Asia, Europe and the U.S. to make products like fish sticks, fried fish sandwiches and imitation crab.
Many of Alaska’s big processing companies depend on revenue from consistent, multi-season harvests of pollock to smooth out the short, frenetic summer salmon season.
But processors say that huge increases in aggressively low-priced sales of pollock products from Russia — particularly of surimi, the fish paste used to make fake crab — are crowding them out of the market, especially in Asia and Europe.
Processors say they’re also facing increased competition from Russia-caught salmon, and from farm-raised fish. Other species, like black cod, are also fetching rock bottom prices — meaning that even fishermen who have diversified into multiple species aren’t insulated from the chaos.
Whole black cod was retailing for $5.99 a pound at Costco in East Anchorage earlier this month. (Nathaniel Herz/Northern Journal)
“There’s nothing to fall back on. Everything, across the board, is in trouble,” Lightsey said. “This is different from other downturns in that way.”
Other dynamics that processors say are limiting the prices they can pay for fish include a historically low value of the Japanese yen against the U.S. dollar. That’s limited the demand for Alaska products in a country that’s often been a huge market.
Inflation and sharply rising borrowing costs in the past two years are also big problems.
Processing companies often take out loans of tens of millions of dollars at the start of each salmon season — money for buying empty cans and plastic, flying workers to remote plants and funding pre-season boat upgrades, insurance policies and other necessities for the skippers who sell them fish.
Totes are stacked outside The Fish Factory in Homer last month. (Nathaniel Herz/Northern Journal)
“You had interest rates go up by three times,” said Rob Gillam, whose McKinley financial and research businesses have studied and invested in the Alaska seafood industry in recent years. “At the same time, what we can sell the fish for is going down, not up.”
Wages for processing workers, like for those in other industries, have also spiked. At a news conference last month, Joe Bundrant, the chief executive of the huge processing company Trident Seafoods, said labor costs have risen by 240% in the past five years, with diesel fuel prices also rising sharply in the same period.
“All the while that the Russians were weaponizing their seafood industry against us, we’ve seen unprecedented cost increases,” said Bundrant. His company is based in Seattle but has operated 11 plants in Alaska — four of which Trident put up for sale last year.
Deferred loans and deepening debts
Processing companies’ woes trickle down to skippers and crew, since fishermen depend on the prices those businesses can pay for their catch. Some of the same trends hitting the processing companies, like inflation, are also affecting fishermen directly.
Toph Clucas takes a break from preparing his fishing vessel in a boatyard in Homer in May to pose for a photo. Clucas, 26, fishes off Kodiak Island, and he’s taken on more than $200,000 in debt to finance his boat and other assets needed to get into the industry. “I’m pretty much just buckling in and trying to make it ’til the market comes back up,” he said. “It’s my livelihood and it’s what I love doing.” (Nathaniel Herz/Northern Journal)
In interviews, numerous Homer fishermen said they’re facing steep increases in the cost of insuring their boats for the summer salmon season. Jennifer Hakala, whose husband runs a boat in Bristol Bay, said the price of insurance for this year’s six-week fishery spiked to $8,000 from $5,000 in 2023.
To survive, some fishermen are deferring loan payments or taking on more debt. Others, like Hakala, are getting creative.
Typically, her husband hires two deckhands to help on the boat, but this year, they’re depending on their 16-year-old son, and Hakala, who manages a Homer marine supply store, will help out, too.
“I’m going to fly in on the peak and help them finish off the year — and hopefully we make our boat payment,” she said, referring to the yearly amount that’s due on the loan the family took out to buy their vessel.
Workers at a Homer boatyard load a net for shipment last month. The downturn in Alaska’s fishing industry has hit not just fishermen and processing companies but also other maritime businesses. In Homer, supply company Nomar Alaska got two orders of specially designed fish bags during a November fishermen’s convention — down from 25 to 30 orders in a normal year. “We’re feeling it,” said Jennifer Hakala, Nomar’s office manager. (Nathaniel Herz/Northern Journal)
Most fishermen in Kodiak have been able to get through the past year without contemplating difficult decisions like bankruptcy, according to Danielle Ringer, a fisherman and fisheries scholar from Homer who’s now based on Kodiak Island.
She’s heard of some skippers who have been working as crew members in fisheries they don’t normally participate in. Others are thinking about working construction instead of taking the risk of gearing up their boat for this coming summer.
“It could be okay,” Ringer said. “But not if it’s a couple more seasons like last year.”
Ringer said she’s seen support coming from the state and federal governments for large and small seafood processing companies.
Those programs are legitimate, Ringer said, but she’d also like to see more support for individual fishermen, too — ideas like direct aid, or loan forbearance. She endorsed concepts being discussed by policymakers to create new programs modeled on federal supports for agriculture.
“For healthy fisheries and healthy communities, you need all of these different aspects,” she said. “Even if government folks and others are interested in supporting fishermen, I think there are still questions about how to do that the right way.”
Not all bad news
While many Alaska fishermen are struggling, others say they have managed to stay profitable — and that they see bright spots ahead.
Last year, Homer resident Scotty Switzer and his three crew members all made money fishing off Kodiak Island, where big runs of salmon made up for the low price they were paid.
“I’m just grateful to have made something,” said Switzer, 36. “Getting into this industry, I knew there were going to be ups and downs.”
Switzer took on hundreds of thousands of dollars in loans to acquire his permit, boat and other assets, and he’s still deeply in debt. But, like other fishermen working on their boats in the Homer harbor, he said he’s not feeling too anxious about his future.
Scotty Switzer, 36, poses for a photo on his boat at the Homer harbor. (Nathaniel Herz/Northern Journal)
“Probably should, could,” he said. “But, I’m in it now.”
For the upcoming season, one processing company, seeking to reassure fishermen, has already announced its minimum price for Bristol Bay sockeye salmon. Silver Bay Seafoods, one of the biggest Alaska processing companies, says it will pay a minimum of 80 cents a pound, a significant bump from the 50-cent minimum it paid last year.
Meanwhile, two startup companies, Northline Seafoods and Circle Seafoods, are hoping to revolutionize the industry’s traditional freezing and salmon processing methods — thereby fetching higher prices from consumers.
Typically, processors send big boats known as tenders to collect salmon from fishermen, then motor the catch back to plants on shore, where workers are flown each summer to handle the fish and operate equipment. Delays in pickup and delivery — and sometimes less-than-meticulous handling and chilling by fishermen — can translate into lower quality filets.
The two companies will park new, floating factory barges directly on or near the fishing grounds, reducing the amount of transit time once salmon are caught.
Once full of whole, frozen fish, the barges will be taken back to Washington state, where the salmon will be processed throughout the off-season without requiring workers to take expensive flights to rural Alaska plants.
“We’re trying to turn it into a manufactured good, as opposed to this seasonal rush of production that’s cut by temporary seasonal workers who have never seen a fish before,” said Charlie Champbell, Circle Seafoods’ co-founder.His company has raised$36 millionfrom investors, loans and federal tax credits, he said.
A “bigger, more systematic downturn”
Alaska’s congressional delegation, led by Republican U.S. Sen. Dan Sullivan, has also been chipping away at the problems of Russian pollock and salmon exports.
While the U.S. banned imports of Russian seafood in 2022, a loophole allowed those harvests to continue entering America if they’d been processed in China or other countries.
Sullivan and other Alaska elected officials successfully pressured the Biden administration to fix that problem in December; he’s also appealed directly to European Union and Asian allies to consider tighter Russian import restrictions of their own.
“When the U.S. government moves in a coordinated fashion, it can get things done,” Sullivan said. “If we got international cooperation from the EU and Japan, there’s no doubt it would stabilize prices.”
A crane lowers a bag of halibut from the Oracle to the Homer dock last month. (Nathaniel Herz/Northern Journal)
Beyond pollock and salmon, there are reasons to be hopeful about the medium- and long-term prospects for two other key Alaska species, halibut and black cod, said Norm Pillen, president of the fishermen-owned Seafood Producers Cooperative, a small processor based in Sitka.
But the near-term is less promising, with continuing low prices and high borrowing and shipping costs, he added. Sitka fishermen are also nervous about a conservation group’s request to have the federal government list Gulf of Alaska king salmon under the Endangered Species Act.
“We’re going to have another tough year to get through,” Pillen said.
Back on the Homer dock, Laukitis, the boat owner, said that last year, he thought the turmoil in the Alaska fishing industry would be short-lived, like other dips that participants have had to periodically endure over the years.
Now, he sees it differently — as a “bigger, more systematic downturn” that’s landing directly on fishermen. Processing companies may not be able to control the prices they pay for fuel or packaging, but they can reduce the price they pay for fish.
“There’s a disequilibrium,” Laukitis said. “And we’re the ones getting squeezed the hardest.”
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“We told them that we are fishing communities,” said Osterback. “We don’t do anything else. We don’t have anything else. Every business in our communities depends on the fisheries.”
KUCB / Andy Lusk
The mayors of Unalaska and the Aleutians East Borough traveled to Washington, D.C. last month, sounding the alarm on the challenges jeopardizing Alaska’s fisheries.
Unalaska Mayor Vince Tutiakoff Sr. and Aleutians East Borough Mayor Alvin Osterback attended an invite-only conference May 22 and 23 in the nation’s capital. There, they filled state and federal officials in on the severity of the fishing industry crash and its impact on rural communities.
“Right now they have a crisis going on in King Cove,” Tutiakoff said during an Unalaska City Council meeting in late May, referencing the recent closure of Peter Pan — King Cove’s main economic driver. “They will not have a processing plant and they will not have a salmon season. They don’t have a crab season. They’re in real dire need.”
The closure of Peter Pan and sell-offs within Trident have sent shock waves through coastal towns who rely on the fishing industry.
Tutiakoff said federal officials he spoke with were interested in the issue but weren’t aware of the whole situation.
“My comments to the Secretary of Commerce were that we need help,” he said. “We need it soon. Unlike some communities, we do have some revenues but it’s not going to carry us very long before we start to feel the impact.”
Tutiakoff said the main issue brought forward at the meeting was that Alaska’s fish can’t compete with loopholes in global markets. He said Russian-caught fish is being transferred to countries like China and then sold on the American market as an Alaska product.
He called for federal officials to close loopholes that benefit the Russian fishing industry, warning that if help didn’t come soon, “Russian fish will be on everybody’s plate.”
Osterback agreed with Tutiakoff, emphasizing the region’s reliance on the success of its fisheries.
“We told them that we are fishing communities,” said Osterback. “We don’t do anything else. We don’t have anything else. Every business in our communities depends on the fisheries.”
Osterback noted that Sen. Dan Sullivan is working to add fisheries into renewal of the Farm Bill, a set of programs that support American agriculture. Including fisheries in the bill could insulate the industry from fluctuating markets.
“Whether you’re growing crops on land or you’re harvesting in the sea, you’re still a harvester,” Osterback said. “The fishermen, the municipalities, the processors — we’re all tied together pretty tight. If one fails, we all fail.”
Sens. Sullivan and Lisa Murkowski are expected to present a strategic plan to the Secretary of Commerce this summer.
ADFG’s South Alaska Peninsula Salmon pre-season stakeholders meeting will happen via M$ Teams videoconference: Thursday, May 30th, 2024 at 10AM
“Annual ADFG Preseason meeting for fishermen. Video conferencing will be available at AEB offices in Sand Point, King Cove, Nelson Lagoon and False Pass. Otherwise fishermen can use the phone number to call in directly or from the harbor houses. They will need to dial the number below and enter the passcode.”
Meeting ID: 279 844 469 514
Dial-in by phone
+1 323-433-2327,,678885963# United States, Los Angeles
(833) 779-6874,,678885963# United States (Toll-free)
Phone conference ID: 678 885 963#
Peter Pan Seafood Co., the state-backed processing company that has faced dire financial troubles recently, announced Friday it was ceasing operations.
“We’re saddened to share that Peter Pan Seafoods will be halting operations at its processing plants, leading to the discontinuation of both summer and winter production cycles for the foreseeable future,” the company said in a Facebook post Friday night.
The company faced mounting troubles, including legal claims from fishermen claiming back-owed payments for unpaid deliveries of seafood.
Silver Bay Seafoods recently announced it would acquire Peter Pan’s Valdez facility, as well as operate Peter Pan’s facilities in Dillingham and Port Moller during the 2024 salmon season. It never specified, however, if the King Cove plant would be included.
“This is so sad because I [worked up in King Cove] from ‘96 through last summer,” one commenter posted. “I have good memories from King Cove and the plant, have my kids in the school for a few years.”
King Cove, a community of around 800 residents, relies on the processing facility as its main economic engine. The city already faced hardship when Peter Pan opted last minute not to open for winter’s “A” season, forcing local fishing boats to scramble for new facilities where they could deliver their catch.
“Thanks for waiting until the last possible minute before you told the community of King Cove,” another person commented. “Wouldn’t even tell the fishing fleet of King Cove face to face what was happening, we all have to find out on Facebook.”
New CFEC Survey Seeks Feedback on Commercial Fishing Permit Transfers to Minors
March 21, 2024/Juneau, AK. The Alaska Commercial Fisheries Entry Commission (CFEC) which works to conserve and maintain the economic health of Alaska’s commercial fisheries by limiting the number of participating fishers, announced the launch of a new survey on the topic of transfers of CFEC permit ownership to minors under the age of 16 (or under 10 years of age for set net permits).
“The CFEC welcomes feedback from the fleet and is always looking for ways to support Alaska’s family fishing traditions and create quality opportunities for Alaska’s fishing kids to learn the skills they’ll need to become the next generation of Alaska’s commercial fishermen.”
A link to the survey can be found on CFEC’s website at www.cfec.state.ak.us. For further information, please contact: Robin Loreth, Commercial Fisheries Permit Hearing Officer, email: dfg.cfec.adjudications@alaska.gov or visit cfec.state.ak.us
Sand Point Commercial Salmon Fishery Advisory Announcement #01
The Alaska Department of Fish and Game will be conducting a fishery stakeholder’s meeting on Wednesday,
May 31 at 10:00 a.m.
The meeting will be held at the Aleutians East Borough building. We will also hold the meeting through
Zoom and broadcast on KSDP Sand Point public radio station 830AM and livestreamed at https://apradio.org/
