The Privilege to Process Aleutian Islands Pacific Cod: Community Protection vs. Economic Efficiency in the National Standards

• Main Authors: Marrinan, Sarah, Cunningham, Sam, McCracken, Jon
• Format: Conference Object
• Language: English; unknown
• Published: North American Association of Fisheries Economists
• Subjects: Fisheries > Economic aspects > Congresses; Sustainable fisheries > Congresses; Bering Sea; Alaska; Aleutian Islands
• Online Access: https://ir.library.oregonstate.edu/concern/conference_proceedings_or_journals/sb397955p

When making policy recommendations, the North Pacific Fishery Management Council balances community stability with efficiency in resource utilization. The Council is considering an action that, for part of the year, would effectively limit the harvest of Aleutian Islands Pacific cod to vessels that deliver to a shore plant in the remote community of Adak, Alaska. Until 1997, Adak was a military community of over 6,000 residents, but is now inhabited by fewer than 350 people. To bolster the local fishing industry, the community purchased a shuttered processing facility and is seeking a de facto allocation that will attract deliveries. Vessels that currently fish Aleutian Islands cod deliver to at-sea mothership processors, which benefit the community by their port calls. At-sea processing capacity has flowed into the open access Aleutian Islands cod fishery as it was freed by a string of rationalization programs implemented in Alaska since 1999. Onshore processing in Adak could boost local employment and fish tax revenue, but might also reduce the harvest fleet’s production efficiency. The processor would have to offer competitive exvessel cod prices, as harvesters could focus effort in the Bering Sea rather than make the long trip to Adak. This case represents a ubiquitous challenge for Councils: promoting stability in fishery-dependent communities while considering trade-offs and national net benefits. This presentation describes staff economists’ contribution to the decision process, as well as challenges including the short timeline for regulatory impact analysis, data confidentiality, and limited information about future cod prices, business cost structures, and private business decisions. Keywords: Fishing Communities—Social and Economic Aspects, Fisheries Economics, Economic Impacts Keywords: Fishing Communities—Social and Economic Aspects, Fisheries Economics, Economic Impacts