Legislature(2007 - 2008)BARNES 124
04/09/2008 08:30 AM House FISHERIES
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| Overview: Round-table Discussion: Statutory and Regulatory Tools to Address Over Escapement and Foregone Harvest in Arctic, Yukon, and Kuskokwim Regions | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 304 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
April 9, 2008
8:43 a.m.
MEMBERS PRESENT
Representative Paul Seaton, Chair
Representative Kyle Johansen
Representative Craig Johnson
MEMBERS ABSENT
Representative Gabrielle LeDoux
Representative Peggy Wilson
Representative Bryce Edgmon
Representative Lindsey Holmes
COMMITTEE CALENDAR
OVERVIEW: ROUND-TABLE DISCUSSION: STATUTORY AND REGULATORY
TOOLS TO ADDRESS OVER ESCAPEMENT AND FOREGONE HARVEST IN ARCTIC,
YUKON, AND KUSKOKWIM REGIONS
- HEARD
SENATE BILL NO. 304
"An Act authorizing an Alaska regional development organization
to use the Alaska Commercial Fisheries Entry Commission as an
informational resource."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
DAN BERGSTROM
Arctic-Yukon-Kuskokwim (AYK) Regional Management Biologist
Davison of Commercial Fisheries
Alaska Department of Fish & Game (ADF&G)
Anchorage, Alaska
POSITION STATEMENT: Participated in the round-table discussion:
Statutory and Regulatory Tools to Address Over Escapement and
Foregone Harvest in Arctic, Yukon, and Kuskokwim Regions.
GENE SANDONE, Arctic-Yukon-Kuskokwim (AYK) Regional Supervisor
Division of Commercial Fisheries
Alaska Department of Fish & Game (ADF&G)
Anchorage, Alaska
POSITION STATEMENT: Participated in the round-table discussion:
Statutory and Regulatory Tools to Address Over Escapement and
Foregone Harvest in Arctic, Yukon, and Kuskokwim Regions.
JOHN HILSINGER, Director
Division of Commercial Fisheries
Alaska Department of Fish & Game (ADF&G)
Anchorage, Alaska
POSITION STATEMENT: Participated in the round-table discussion:
Statutory and Regulatory Tools to Address Over Escapement and
Foregone Harvest in Arctic, Yukon, and Kuskokwim Regions.
KRISTIN RYAN, Director
Division of Environmental Health
Department of Environmental Conservation (DEC)
Anchorage, Alaska
POSITION STATEMENT: Participated in the round-table discussion:
Statutory and Regulatory Tools to Address Over Escapement and
Foregone Harvest in Arctic, Yukon, and Kuskokwim Regions.
JACK SCHULTHEIS, Manager
Kwik' Pak Fisheries
Board of Directors, Alaska Seafood Marketing Institute (ASMI)
Wasilla, Alaska
POSITION STATEMENT: Participated in the round-table discussion:
Statutory and Regulatory Tools to Address Over Escapement and
Foregone Harvest in Arctic, Yukon, and Kuskokwim Regions.
ACTION NARRATIVE
CHAIR PAUL SEATON called the House Special Committee on
Fisheries meeting to order at 8:43:51 AM. Representatives
Seaton, Johnson, and Johansen were present at the call to order.
^OVERVIEW: ROUND-TABLE DISCUSSION: STATUTORY AND REGULATORY
TOOLS TO ADDRESS OVER ESCAPEMENT AND FOREGONE HARVEST IN ARCTIC,
YUKON, AND KUSKOKWIM REGIONS
8:44:26 AM
CHAIR SEATON announced the only order of business would be a
round-table discussion of statutory and regulatory tools to
address over escapement and foregone harvest in the Arctic,
Yukon, and Kuskokwim (AYK) regions, and miscellaneous fisheries,
in participation with the Alaska Department of Fish & Game
(ADF&G), commercial fishing groups, and processors.
CHAIR SEATON directed attention to the committee packet, ADF&G
report 5J08-1, Figure 4, Arctic-Yukon-Kuskokwim region salmon
escapements compared to goals for the years 2001-2007 [page 9],
and the graph indicating how approximately 60 percent of the
monitored AYK streams experienced escapements above the upper
goal. He explained that the department establishes escapement
goals to ensure that the minimum goal will be met, thus
maintaining the integrity and sustainability of a system. The
effort is to not exceed the upper escapement goal, which can
have biologically detrimental effects on a stream. The amount
of unharvested fish, above the upper escapement goal, represents
a loss of revenue to the state, and realized as foregone harvest
to the fishermen. The intention of this discussion is to
maximize the value of the harvest, and meet state constitutional
obligations for optimization of resources.
8:48:49 AM
DAN BERGSTROM, Arctic-Yukon-Kuskokwim (AYK) Regional Management
Biologist, Division of Commercial Fisheries, Alaska Department
of Fish & Game (ADF&G), stated that the major difficulty is the
market condition, which prohibits fishermen and processors from
having an economic harvest. Exceptions are Kuskokwim Bay, and
Good News Bay, that have had good success in recent years, with
the presence of a CDQ (community development quota) buyer for
the sockeye, coho, chum, and chinook salmon. However, when a
large run returns, as it did in 2006, over escapement occurs due
to the inability of the processors to handle the amount of
product. The CDQ is in the process of building a processing
plant in Good News Bay, to alleviate some of the problem and
service the Kuskokwim harvest as well. One primary difficulty
is handling the high chum runs, with minimal market demand. A
chum run, of over 1 million, overlaps the sockeye and chinook
returning in June and July. The August coho run, in the
Kuskokwim River, has been manageable, with efficient escapement.
The Yukon River has a strong chinook harvest, but again the chum
market overlaps, creating harvest problems. The CDQ group, in
the Yukon Delta, has worked to market chum, building the demand,
although the price is still marginal. The Norton Sound CDQ has
managed the August coho run well, but June and July fishing
efforts are not realized as the chum have not been marketable.
In Kotzebue the buyers establish openings, in order to
coordinate flight service for moving the product. Twenty to
thirty fishermen harvest about 100 thousand fish, or 1 million
pounds, per year. The department makes an effort to coordinate
with buyers, in regard to their transportation availabilities,
and while maintaining a biologically sound fishery, he reported.
8:55:42 AM
GENE SANDONE, Arctic-Yukon-Kuskokwim (AYK) Regional Supervisor,
Division of Commercial Fisheries, Alaska Department of Fish &
Game (ADF&G), stated that over escapement does not represent a
biological problem in Alaskan watersheds, contrary to previous
opening comments. Under extreme conditions, and possibly in
lake situations, a biological concern might arise. He opined
that this is an unusual occurrence, although it may happen in
the Norton Sound area on the Seward Peninsula. The issues of
over escapement in AYK centers around concerns for yield. A
distinguishing factor of the region is that it does not have
large lake systems. He reported that managing long rivers, such
as the Kuskokwim and Yukon, with overlapping runs presents a
host of difficulties. Chinook, coho, and chum salmon spawn
throughout the drainages, with the chinook and chum migrating as
far as 2,0000 miles from the river's mouth to reach spawning
ground. The fish will traverse Alaskan waters for a month
before entering Canada, to continue their journey. The major
commercial fisheries are in the lower reaches of the Yukon, and
providing escapement for upper system subsistence users,
tributary escapement needs, and respecting treaty requirements
is a challenge.
8:58:25 AM
CHAIR SEATON acknowledged the yield vs. biological concern for
over escapement, and the complexity of managing the interior
rivers. Considering product marketing, he asked for comment on
the effectiveness of the grant program in the region, awarded to
build ice plants for added value, and other marketing concerns.
MR. BERGSTROM said product quality has been vastly improved in
the region with the ice that is now available, and the handling
techniques.
9:00:50 AM
MR. SANDONE interjected that the quality has improved,
particularly for sockeye and chinook. However, when the chum
and sockeye runs overlap, and the sockeye take is overwhelmed by
the chum harvest, difficulties arise. Kuskokwim processors
don't have a market for the abundant chum, thwarting early
season harvest efforts. Compounding the issue is the
economically unviable necessity for this region to transport
product out via aircraft. The Yukon Delta fisheries have
managed to establish a market for Yukon River chum, but the
Kuskokwim area lacks this development. He reported, in the
past, one buyer purchased chum for $.05 cents per pound, but did
not take possession of the product, as the cost of transport
precluded a profit; the fishermen took the catch home.
CHAIR SEATON noted that fuel costs have become an economic
driver in many fisheries, particularly in remote areas.
9:02:25 AM
JOHN HILSINGER, Director, Division Of Commercial Fisheries,
Alaska Department of Fish & Game (ADF&G), added that AYK staff
has worked with the public stakeholder groups to deal with
marketing, transportation, and other issues. As an example, the
coordination of openings on the Yukon and Kuskokwim is crucial,
to allow cargo space on flights to handle the product.
Additionally, the substantial subsistence fisheries must be
considered. The annual Kuskokwim chinook subsistence fishery
has a take of approximately 90 thousand fish, compared to the
few thousand taken in the commercial harvest.
9:04:05 AM
REPRESENTATIVE JOHANSEN opined that the department's focus needs
to be on biology and management, with minimal time spent on
marketing strategies. He asked who in ADF&G provides
information on marketing, should not professional marketing
organizations, Alaska Seafood Marketing Institute (ASMI) for
instance, be addressing that aspect of the fishery.
MR. HILSINGER agreed, which is what generally happens. He said
there are occasions, in some areas, where staff undertakes pre-
season work to contact processors and gain insight for expected
market demand, in order to establish strategic management
parameters. Coordinating how to provide an economically sound
harvest is necessary, particularly in AYK, as previously
reported by the regional staff. To a further question, he
responded the market information is received by ADF&G from the
buyers and processors.
9:06:24 AM
REPRESENTATIVE JOHANSEN pointed out the fishermen's financial
contributions to ASMI for assistance in marketing.
Historically, AYK has been plagued by market issues, and
transportation problems. He noted how the situation has
continued, without change, and asked what steps need to be taken
for improvement, and also, who works on the market front adding
value, to create an economical harvest, for these remote
fisheries.
MR. HILSINGER responded there have been marketing initiatives
specific to the areas, and regional groups have formed marketing
strategies and initiatives; ASMI works on a statewide basis. He
provided examples of chum marketing and other direct marketing
efforts, such as Arctic Kita, a chum product.
REPRESENTATIVE JOHANSEN acknowledged that this may not be the
purview of the director, but, if management strategies are being
based on market demand, perhaps a conversation with the
marketing organizations receiving state and private sector funds
to manage the market, is in due. He opined that departmental
biologists ought to be paid for performing scientific duties,
not for creating market opportunities.
9:10:13 AM
CHAIR SEATON acknowledged the validity of the point made, and
noted the department appears to be coordinating with the market
representatives, not delving into the marketability of the
product. The efforts described appear to be in-line with
protecting the resource for optimum marketability to avoid a
situation where fish may be wasted on the dock. The icing and
coordination efforts result in less loss of quality/product, and
are overall beneficial. He reiterated his query for further
information regarding glitches in the system that would prove
additionally helpful, including use of direct marketing vessels,
transporter permits, and other strategies.
9:13:43 AM
MR. HILSINGER suggested that the department could address the
transporter issues.
9:13:58 AM
MR. BERGSTROM said product markets are built up over a number of
years. The Yukon CDQ groups have worked diligently to
establish, and continue to develop, the chum market, with
advertising support from ASMI. Direct marketer's face the same
development process, and have begun efforts on the Yukon and
Kuskokwim. Transporter permits have not been utilized in the
AYK region, as the fishermen are operating in proximity to a
tender, or processor. He opined that the cost of fuel would
influence the distance that a fisherman is willing to travel.
9:15:35 AM
MR. SANDONE pointed out that there is only one buyer in most
areas. The buyer limits the amount of harvest based on what the
processing capacity allows, which tends to be low, particularly
in the Kuskokwim area. The Yukon may have three buyers, but
that is the exception. He noted past chum fisheries that
provided lucrative roe harvests, which fell by the wayside with
the influx of hatchery fish. Hatchery fish, he opined, have
also influenced the decline in demand for AYK chum.
9:17:00 AM
CHAIR SEATON asked what has been done to assist the AYK region
to develop a catcher/seller market.
KRISTIN RYAN, Director, Division of Environmental Health,
Department of Environmental Conservation (DEC), explained that
separate permits, and regulatory structures, apply for DEC and
ADF&G requirements for buyers who transport vs. processors. The
direct market DEC permit is utilized statewide, including the
AYK region. The permit allows the fishermen to process their
own boats catch, in accordance with state and FDA (Food and Drug
Administration) standards. The FDA of Alaska contracts with
DEC, to perform the majority of their inspections. The
controversy of the direct market permit is that it only allows
the catcher to process their own fish; purchasing from other
fishermen is disallowed. When fish are purchased, the fisherman
becomes a processor, and two permits per vessel govern fish
processing: less than 5,000 pounds per day, and one for
handling over 5,000 pounds per day. Allowing tenders to process
and direct marketers to purchase fish, are two issues which 2007
regulatory changes attempted to solve. However, she reported,
the issue requires further consideration.
CHAIR SEATON pledged legislative support, in the endeavor for
adjusting regulations or statute.
9:20:47 AM
MS. RYAN suggested the clearest path may be to restrict the
daily quantity of product that is processed under a direct
market permit; either caught or purchased. Unfortunately this
does not solve the tender processing concerns.
CHAIR SEATON provided a scenario of a direct marketer,
transporting another direct marketer's catch, without purchasing
it, thus becoming a buyer. If the second party catch is merely
being transported, without ownership, to an on shore
buyer/processor, could the fish ticket mechanism be utilized to
address the problem.
MS. RYAN opined that it may not be that easy. She said the
transport of catch in the round is not monitored DEC, whose
purview are fish that have flesh exposed and laid open to
contaminants. The department has no authority over who owns or
transports the product.
9:25:11 AM
CHAIR SEATON inquired if the quantity allowed would need to be
changed in regulation or statute.
MS. RYAN said it would be a regulation change, however, prior to
proposing a regulation change, information will need to be
garnered to establish a reasonable quantity to target. A data
base will need to be established for informational purposes.
9:26:46 AM
REPRESENTATIVE JOHANSEN stressed the need to establish an
allowable capacity. He said:
Just to put [DEC] on notice, ... I'm pretty concerned
about this because, ... the direct marketers ... are
extremely pro-active. ... They've got other businesses
involved or ... contacts with restaurants, which are
very sensitive to constant supply. ... I would hate
to have these people, who've had relationships with
restaurants for ... years suddenly be cut off, because
of some regulation. So I would hope you'd be
extremely sensitive with that, and float that out very
publicly, above and beyond you're normal required
public notice meetings.
MS. RYAN acknowledged the sensitivity of the issue and the need
to consider the processors, as well as the direct marketers.
Further, DEC realizes the need to move forward in a carefully
staged, slowly paced, well vetted, public manner. A public
focus group is one approach being considered, she said.
REPRESENTATIVE JOHANSEN opined that processors have been in the
driving seat for "about 100 years," and the direct marketers are
due support for their independent efforts.
CHAIR SEATON offered his office as a resource, as well as the
possibility of the House Special Committee on Fisheries
convening with a forum on behalf of this issue, and to support
DEC efforts to maintain a public process.
9:31:35 AM
JACK SCHULTHEIS, Manager, Kwik' Pak Fisheries, Board of
Directors, Alaska Seafood Marketing Institute (ASMI), stated
that he has commercially fished the AYK region since 1974 for
all species. The western Alaska chum salmon is routinely a
higher quality product than the hatchery chum of the southeast
and south central, as reflected in the higher price these fish
have historically commanded in the market place. However, the
air transportation costs have become prohibitive. Without a
railhead, highway, or ability to ship frozen product by barge,
or "state subsidized ferry," Marketers are faced with a cost of
one dollar per pound to fly the product out. He stressed the
market is not the problem, rather transportation is the issue.
9:33:55 AM
CHAIR SEATON asked if some runways are not accessible for
freight size aircraft.
MR. SCHULTHEIS provided an example of the situation in Emmonak,
the largest village on the lower Yukon River. The airstrip is
the longest in the area, at 4,600 feet, which only DC6 aircraft
can utilize. One of the primarily carriers, Northern Air Cargo,
has recently upgraded to jet aircraft, precluding their
continued service to Emmonak. The village air service thus
drops from six to three flights per week. He explained that a
jet aircraft requires 6,000 foot runway. To further questions,
he said the strip was designed in the 1980's, with plans for
expansion to 6,000 feet. The space is available, but the
project has never been funded. He continued:
It's basically a money issue, OK. DOT (Department of
Transportation & Public Facilities) won't touch it,
the state's ignored us. I don't have a dock, anything
down there. OK, I don't have an ocean dock to bring a
barge in, I don't have a seawall, I don't have a small
boat harbor. There is nothing on the lower Yukon
Delta as far as transportation. ... Fish and game said
earlier how they had to time openings based on
transportation issues. We're one of those areas they
have to do that in. You have to go to your fishermen
and say, 'You know, we were going to fish tomorrow,
but we don't have any airplanes, we don't have any air
freight ability, so we're going to pull the opening."
... For me it just ain't fair how one area of the
state is so ignored when it comes to transportation.
We have markets for our fish, but I just can't compete
when I [have to] pay a dollar a pound to get it out of
there. OK, that's the biggest problem there.
9:38:03 AM
REPRESENTATIVE JOHANSEN queried how the fish are physically
landed and transported to the airport.
9:38:24 AM
MR. SCHULTHEIS said the dock that is needed is an ocean dock
that a barge could land at, for frozen product transport. There
is a processing barge, ice making ability, and other added value
measures to produce a quality product. Boats are off-loaded by
cranes and trucked to the air strip. Infrastructure for moving
product out of the region does not exist, and the possibility of
a sea-going freezer container, is not an option, due to lack of
facilities.
REPRESENTATIVE JOHANSEN restated is question for a description
of the physical handling of the product.
MR. SCHULTHEIS said the barge has cranes to off-load the fish,
which are processed, toted, fork lifted onto a truck, and
delivered to the airstrip.
9:40:34 AM
REPRESENTATIVE JOHANSEN clarified the needs are for a seawall or
seaport, to provide ocean going barge opportunities, as well as
to lengthen the airport. He asked what funding was used to
construct the current airport and existing roads, and what funds
are expected to expand the airstrip, roads, and build a seawall.
MR. SCHULTHEIS conjectured that federal funds were possibly the
source, and said, "We're just trying to get what other people
have in the state, that's all."
REPRESENTATIVE JOHANSEN stated his support for the regions
projects, however, he cautioned that casting aspersions on other
areas of the state is not helpful to the situation.
9:43:16 AM
CHAIR SEATON recapped the issues, and requested any further
comments be submitted to the committee.
9:44:01 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Fisheries meeting was adjourned at 9:44
a.m.
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