Legislature(2023 - 2024)GRUENBERG 120
03/05/2024 10:00 AM House FISHERIES
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| Audio | Topic |
|---|---|
| Start | |
| SJR14 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 295 | TELECONFERENCED | |
| + | SJR 14 | TELECONFERENCED | |
| *+ | HB 329 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
March 5, 2024
11:01 a.m.
MEMBERS PRESENT
Representative Sarah Vance, Chair
Representative Kevin McCabe
Representative CJ McCormick
Representative Ben Carpenter
Representative Craig Johnson
Representative Louise Stutes
Representative Rebecca Himschoot
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE JOINT RESOLUTION NO. 14
Calling on the United States Congress and all federal agencies
to adopt policies and engage in certain efforts to improve the
competitiveness and resiliency of the state's seafood industry.
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SJR 14
SHORT TITLE: SUPPORT STATE SEAFOOD INDUSTRY
SPONSOR(s): SENATOR(s) BISHOP
02/15/24 (S) READ THE FIRST TIME - REFERRALS
02/15/24 (S) FIN
02/23/24 (S) FIN AT 9:00 AM SENATE FINANCE 532
02/23/24 (S) Heard & Held
02/23/24 (S) MINUTE(FIN)
02/26/24 (S) FIN RPT 6DP
02/26/24 (S) DP: HOFFMAN, OLSON, WILSON, KIEHL,
MERRICK, BISHOP
02/26/24 (S) FIN AT 9:00 AM SENATE FINANCE 532
02/26/24 (S) Moved SJR 14 Out of Committee
02/26/24 (S) MINUTE(FIN)
02/28/24 (S) TRANSMITTED TO (H)
02/28/24 (S) VERSION: SJR 14
03/01/24 (H) READ THE FIRST TIME - REFERRALS
03/01/24 (H) FSH
03/05/24 (H) FSH AT 10:00 AM GRUENBERG 120
WITNESS REGISTER
SENATOR CLICK BISHOP
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented SJR 14.
JULIE DECKER, President
Pacific Seafood Processors Association
Wrangell, Alaska
POSITION STATEMENT: Gave invited testimony in support of SJR
14.
TRACY WELCH, Executive Director
United Fishermen of Alaska
Juneau, Alaska
POSITION STATEMENT: Gave invited testimony in support of SJR
14.
JOHN DALY, Vice President of Sales and Marketing
OBI Seafoods
Seattle, Washington
POSITION STATEMENT: Gave invited testimony in support of SJR
14.
JEREMY WOODROW, Executive Director
Alaska Seafood Marketing Institute
Juneau, Alaska
POSITION STATEMENT: Gave invited testimony in support of SJR
14.
ERIN SHINE, Staff
Senator Click Bishop
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on
SJR 14 on behalf of Senator Bishop, prime sponsor.
ACTION NARRATIVE
11:01:04 AM
CHAIR SARAH VANCE called the House Special Committee on
Fisheries meeting to order at 11:01 a.m. Representatives
McCabe, Stutes, Carpenter, C. Johnson, Himschoot, and Vance were
present at the call to order. Representative McCormick arrived
as the meeting was in progress.
SJR 14-SUPPORT STATE SEAFOOD INDUSTRY
11:01:44 AM
CHAIR VANCE announced that the only order of business would be
SENATE JOINT RESOLUTION NO. 14, "Calling on the United States
Congress and all federal agencies to adopt policies and engage
in certain efforts to improve the competitiveness and resiliency
of the state's seafood industry."
11:02:10 AM
SENATOR CLICK BISHOP, Alaska State Legislature, as prime
sponsor, introduced SJR 14 and read from the sponsor statement
[included in the committee packet], which read as follows
[original punctuation provided]:
Alaska's seafood industry is a vital part of Alaska's
economy, benefiting fishermen, coastal communities,
plant workers and the many businesses that rely on
seafood production statewide. As the largest
contributor to the United States' seafood harvest,
Alaska plays an important role in global seafood
production, exporting to over 100 countries worldwide.
Despite its significance, Alaska seafood faces
numerous challenges in the global market. High
interest rates, inflation, and increased competition
from farmed fish and foreign countries threatens the
economic viability of our fishermen and seafood
businesses. These challenges impact fishing families
and local economies and jeopardize our state's food
security and supply chain integrity.
In recognition of these challenges, SJR 14 encourages
similar treatment of Alaska seafood by the federal
government as other sources of domestic food
production and supports efforts by the federal
government to establish an Office of Seafood Policy
and Program Integration within the United States
Department of Agriculture (USDA). This could play a
crucial role in ensuring that domestic seafood is
treated equitably while competing in the global
market.
USDA provides critical support for agricultural
products but lacks in its support for seafood
products. Some of the issues within the USDA are the
inability of fishermen and processors to participate
in certain loan, grant, or tax credit programs;
suboptimal timing of federal nutrition program
purchases; and a lack of programs to help the industry
develop new products and update aging infrastructure.
An Office of Seafood Policy and Program Integration
would provide needed leadership on addressing issues
with USDA programs.
SJR 14 also encourages greater federal interagency
cooperation and greater emphasis on various support
mechanisms for the seafood industry from USDA and the
National Oceanic and Atmospheric Administration
(NOAA). This is increasingly necessary if the Alaska
seafood industry is to survive these significant
economic challenges.
Additionally, SJR 14 supports an increased seafood
presence in the Office of the U.S. Trade
Representative which could help address the unbalanced
tariffs that result in higher export fees for Alaskan
seafood than for competing seafood imports.
SJR 14 aims to support the Alaska Congressional
Delegation in their strategic efforts to improve
federal programs to give the seafood industry equal
support that many other U.S. food products receive.
11:06:34 AM
REPRESENTATIVE MCCABE referenced previous discussion about U.S.
trade and that Alaska seafood was not even mentioned in data.
He asked whether it was still being ignored.
SENATOR BISHOP replied that invited testifiers may better speak
to the question.
11:08:01 AM
CHAIR VANCE welcomed invited testifiers.
11:08:11 AM
JULIE DECKER, President, Pacific Seafood Processors Association,
gave invited testimony in support of SJR 14. She gave a
description of Pacific Seafood Processors Association (PSPA).
She spoke about investments, technology, marketing, and
contributions. She said the industry is facing economic
conditions, and this time, it is across multiple species.
Millions of dollars are lost and in 2023 alone it was $2
billion. Economic conditions in 2024 are unlikely to improve,
she opined. She stressed the need for state and federal
government action being critical at this time in order to
support the seafood industry and meet current challenges.
11:11:30 AM
TRACY WELCH, Executive Director, United Fishermen of Alaska,
gave invited testimony in support of SJR 14 and stated that the
fishing industry faced unprecedented times. She said over 17
processing plants are up for sale currently and workers are
searching for other opportunities. The international markets
are not in the U.S. fishing industry's control, but in the U.S.,
many things can be controlled as outlined in SJR 14.
11:13:20 AM
JOHN DALY, Vice President of Sales and Marketing, OBI Seafoods,
gave invited testimony in support of SJR 14 and provided a brief
background on his service in Alaska in the seafood industry. He
noted international percentages that have fluctuated in recent
years due to price behavior from Russia. He went over species
of salmon and noted some had a 50 percent price decline. He
said that U.S. markets operate on a "just in time" inventory
basis so producers are holding inventory for longer. He added
that interest rates are higher and there was a drop in consumer
spending. He stressed that the most immediate pathway to relief
would be via the U.S. Department of Agriculture (USDA) and
briefly explained his rationale. He reiterated his strong
support for SJR 14.
11:18:32 AM
REPRESENTATIVE HIMSCHOOT noted there was a commitment to
providing fish into the future through USDA.
MR. DALY opined that the problem is two-fold and restated that
the inventory was backed up; however, the USDA does offer a
quick relief and adds to the long-term goal, which is a
dependable supply chain process.
11:20:11 AM
JEREMY WOODROW, Executive Director, Alaska Seafood Marketing
Institute, gave invited testimony in support of SJR 1. He
stated that the Alaska Seafood Marketing Institute's (ASMI's)
job is to drive demand and expand Alaska's seafood market. He
stressed that the problem was the global market being extremely
difficult and challenging for Alaksa seafood. He used China as
an example and spoke to higher tariff rates. He referenced
international trade policy and noted the Japanese yen being low,
which made it more difficult for Alaska seafood to expand
internationally. He encouraged the legislature's support and
speaking to the issues that will help the industry to have
security in the future.
11:23:31 AM
REPRESENTATIVE MCCABE emphasized Alaska's significant seafood
industry and that the U.S. trade representative does not even
mention it on the website, and he asked, "How do we solve this?"
He said the state's industry must be recognized, and if not, he
questioned how negotiating tariffs can even take place.
MR. WOODROW agreed and offered his belief it is why the
resolution is of utmost importance. When it comes to seafood,
he said that the Alaska industry is ignored and not treated as
fairly as other agricultural products.
11:26:40 AM
REPRESENTATIVE HIMSCHOOT referred to Norway investing in
marketing to the U.S. and asked Mr. Woodrow what his total
budget was.
MR. WOODROW said for the current fiscal year, it was just over
$21 million.
REPRESENTATIVE HIMSCHOOT asked for particulars regarding who was
represented by ASMI.
MR. WOODROW responded that ASMI's direction was to market
Alaska's seafood as a holistic brand. He added that resources
are provided for industry members, no matter their size, and
there was a growing sector for direct marketers.
REPRESENTATIVE HIMSCHOOT expressed concern about Alaska king
salmon's place in the market and asked whether there was
anything being done to market wild caught king salmon.
MR. WOODROW answered that marketing wild caught king salmon was
increasingly a niche market and offered brief statistics of wild
salmon versus farmed salmon and their origins. He said king
salmon does well in high end markets such as restaurants so it
can be kept at premium pricing.
11:31:26 AM
CHAIR VANCE spoke to trying to partner with USDA, whether it
would increase the value of Alaska fish, and what the portfolio
plan was as a potential buyer.
MR. WOODROW said the work with USDA is to become a better
customer. He explained that more programs would raise the value
of Alaska seafood and the goal is to find more customers and
have a higher demand.
CHAIR VANCE noted previous comments about fishermen being
treated the same as farmers and what that would look like to the
seafood industry.
MR. WOODROW noted certain relief programs provided to land-based
farmers that are not provided to the seafood industry and gave
an example of crop insurance. He said fishermen need more
assurance that they can get back on the water season to season.
11:34:25 AM
REPRESENTATIVE CARPENTER said the resolution spoke about
coordinating committees and asked whether the 2023 national
export strategies have been summarized.
11:35:00 AM
ERIN SHINE, Staff, Senator Click Bishop, Alaska State
Legislature, on behalf of Senator Bishop, prime sponsor of SJR
14, said she had a copy of the Chapter 9 short section of the
report that she could provide to the committee.
REPRESENTATIVE CARPENTER reiterated that he would like to learn
more about what the strategies were before he signed on to the
resolution.
11:36:37 AM
CHAIR VANCE referenced page 2, lines 28 and 29 of the
resolution, noting it sounded promising, but expressed concern
about being a type of subsidy for the state that may not be the
best long-term plan. She commented that it sounded "broad."
MS. SHINE responded that it was included as more of a broad
resolve for any market or any way to increase the promotion and
purchase of Alaska seafood.
CHAIR VANCE agreed that every available market should be looked
into, but there was a growing concern with what was seen in the
farming industry relying on government subsidies that has turned
into corporate farming, and individual farmers are not thriving.
She said that that shift, over time, has not benefited families,
and she stressed that she did not want to see it happen with
Alaska's fisheries. She wished to increase the value of the
product and its return to Alaska's fishermen.
11:40:18 AM
REPRESENTATIVE MCCABE inquired about amendments and the
possibility of adding the Pacific States Marine Fisheries
Commission (PSMFC) to "the copies sent."
CHAIR VANCE said she planned to set an amendment deadline.
11:41:25 AM
REPRESENTATIVE CARPENTER acknowledged that the state's fishing
industry was currently suffering, and it was a complex issue.
He summarized that the body's attempt to alleviate suffering by
requesting help is acknowledging there is a trade imbalance and
marketing challenge, and there would be a potential for a
subsidy situation if things did not go as planned. He noted
massive feedlots and fewer family farms being a result of
federal involvement in the U.S. farming industry where smaller
family farms cannot compete anymore. He shared that he was not
sure he could be on board and again expressed the need for more
information to determine what the legislature would be asking
via SJR 14.
CHAIR VANCE referred to page 2, lines 16 through 20, about
supply chain integrity and strategies and asked who could speak
to the issue of needing assistance.
11:45:08 AM
MR. WOODROW offered his interpretation and pointed out that USDA
had multiple different programs to help farmers. He said the
supply chain for seafood is complex and does not always make
sense to people, such as why fish is being sold at higher rates,
but the fisherman is not making much money. He opined that it
could be solved with some federal government help, and that many
of these "asks" are also being asked by other seafood groups in
the U.S. He stressed to fix what was broken in the supply
chain.
CHAIR VANCE brought up origin and whether it was a requirement
placed on the supply chain.
MR. WOODROW responded that there were different label
requirements when it came to origin, and part of it dealt with
trade and how to track the origin of fish. He said there was an
ability to track from origin, but it was not being done.
11:50:07 AM
REPRESENTATIVE MCCABE commented on the billions of fish released
into habitat by private individuals from Russia and questioned
how local fishermen could combat that.
11:51:29 AM
REPRESENTATIVE CARPENTER restated that he was leery of a central
government-managed fishery economy. He noted he thought the
resolution had good points, but he did not want government
strings.
11:53:25 AM
CHAIR VANCE announced that SJR 14 was held over.
11:53:47 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Fisheries meeting was adjourned at 11:54
a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SJR 14 - Sponsor Statement.pdf |
HFSH 3/5/2024 10:00:00 AM |
SJR 14 |
| SJR 14 - v.A.pdf |
HFSH 3/5/2024 10:00:00 AM |
SJR 14 |
| SJR 14 - Supporting Document - Seafood Impacts.pdf |
HFSH 3/5/2024 10:00:00 AM |
SJR 14 |
| SJR14 - ASMI Letter of Support.pdf |
HFSH 3/5/2024 10:00:00 AM |
SJR 14 |
| SJR 14 - Zero Fiscal Note (02-18-24).pdf |
HFSH 3/5/2024 10:00:00 AM |
SJR 14 |