Fisheries development : wave of the future / U.S. Department of Commerce, National Oceanic and Atmospheric Administration, National Marine Fisheries Service

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U.S. Department of Commerce

National Oceanic and
Atmospheric Administration

National Marine Fisheries Service

Fisheries development
is a cooperative

industry/government
activity that identifies
fisheries business
opportunities and
fosters growth

Our Nation's fisheries are a valuable
resource that pumps more than $7 billion
annually into the U.S. economy from
commercial fishing and related supporting
activities alone, and several billions more
from recreational fishing. There is ample
opportunity to significantly increase this
contribution.

Since 1970, our annual commercial
fisheries landings have remained relatively
static at 2.0 to 2.5 million metric tons.
Fisheries resources available to U.S. fleets
could, however, support a catch of more
than 8 million metric tons annually.

Part of the potential increase in
catches for U.S. fleets lies in the results of
improved management of known
resources. Part represents the replace-
ment of foreign fleet activity in the U.S.
fisheries conservation zone.

This chart represents total landings by U.S.
commercial fisherman at U.S. ports and
catches off U.S. shores by foreign fisherman
round weight, mollusk shells excluded.

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Improved management
of known resources

DEC 2 i 1978

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Large concentration of squid near Santa
^ti'lina Island, California.

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Replacement of foreign

fleet activity in U.S. coastal zones

Gulf shrimp trawlers

Soviet BMRT stern trawler off the
Washington coast.

United States 200-mile Conservation Areas.

Development of commercial
markets for new species

Inspecting croaker on conveyor belt into
processing plant.

Processing minced sucker products.

We now allocate 1.9 million
metric tons of fish to foreign vessels
because domestic producers lack the
capacity and business structure to catch
and process these resources. A still larger
part of the potential increase in U.S.
production comes from among hundreds
of species not now fished that await
development and utilization as
commercial fishery products.

An expanded fishing industry
that can take fuller advantage of our
fishery resources means more food,
more jobs, more income, a reduction in
trade imbalances, more high quality
protein, and other benefits. U.S. fleets
now supply only about one-third of the
edible fishery products consumed in the
United States. Two-thirds is imported
from a host of other countries. The
domestic development of our fisheries
potential could result in U.S. fishermen
supplying two-thirds of our edible fish
and shellfish requirements, while
building export markets as well. This
could add $8 to $10 billion to the U.S.
economy and create 200,000 to 300,000
new jobs in commercial fishing, food
processing, and industries that support
fishing.

There are additional benefits for
the economy and for consumers. Fisher-
ies development can help the U.S.
imbalance of payments by reducing our
dependence on imports and paving the
way for developing export markets. We
now import about $6 in fishery products
for each $1 exported. Our trade deficit in
fisheries products alone is over $2 billion
annually. The potential exists to narrow
this'gap significantly. In brief, fisheries
development will produce benefits to
industry, to consumers, and to the United
States as a whole.

There is a Potential
for More Than Tripling
the U.S. Catch
of Fish and Shellfish

Potential for
Development

1970-76
Average

The Substantial
Contribution Made by Fisheries
to the U.S. Economy can
be Significantly Increased

U.S. Landings

of Fish and Shellfish

in millions of tons

Fuller Utilization of
U.S. Fisheries by U.S. Industry
Would Create a Substantial
Number of Jobs

200,000 to
300,000
Potential
New Jobs

Potential for
Development

1970-76
Average

Value Added to
U.S. Economy from
Commercial Fishing
in billions of dollars

Fisheries-Related Employment
in the United States
in thousands of Jobs

Services provided by The National

Oceanic and Atmospheric Administration (IMOA A)

Primary Government responsibility for
fisheries development in coastal waters
rests with the National Oceanic and
Atmospheric Administration (NOAA) of
the Department of Commerce. Within
NOAA, Federal fisheries development
programs are administered by the
National Marine Fisheries Service
(NMFS). In addition the NOAA Office of
Sea Grant supports fisheries
development activities at the State and
local level by providing grants to
qualified colleges, universities, and other
agencies and institutions.

National
Marine Fisheries
Service (NiVIFS)

The NMFS role in fisheries
development is catalytic in nature. NMFS
brings together people from industry, the
States, and other Federal agencies so
that a broad range of resources and
talents can be brought to bear on
developing our fisheries potential. NMFS
assists in identifying and analyzing the
opportunities for fisheries development.
Efforts are made to reduce barriers such
as a lack of fishing and processing
technology, institutional barriers, a lack
of suitable product forms, acceptable
quality, or consumer information. NMFS
assists in transferring available
information about lesser used species to
fishermen, processors, sellers, and
consumers. NMFS also provides certain
services to the domestic fishing industry.
These services include financial
assistance, industry and consumer
education, market development
assistance, product standards
development, product inspection, and
market and trade information and
forecasts.

There are regional differences in
the types and quantities of untapped
fisheries resources available, the ability
of industry to take advantage of
development opportunities, and in
philosophies about how to develop
fisheries. Because of this, the NMFS
approach to national fisheries
development is often on a regional basis.

NMFS development programs
are financed both from funds
appropriated by the Congress and tariffs
on imported fisheries products.

Several NMFS activities impact
on developing less popular fisheries and
in strengthening existing fisheries. The
more important of these are:

Resource Assessment This
NMFS program identifies and measures
the seasonal and year-to-year variation in
U.S. fishery resources. Essential for the
management of the Nation's fisheries,
this work also provides a growing data
base on lesser-known resources and is an
important source of information for use
in fishery development efforts. For most
species with commercial potential, NMFS
scientists know their areas of
concentration, their relative volumes and
productivity, and their seasonal
movement.

New Technology Develop-
ment for New Species NMFS
personnel and contractors develop
equipment designs and techniques to
improve the capture and processing of
underutilized species. This work
includes: (1) conceptual design and
experimental fishing with new gear;

(2) developing and testing new or
improved handling and processing
techniques to preserve quality; and

(3) identification of the edibility
characteristics of each species and
development of new product forms and
standards.

Market and Trade
Development and Services NMFS has
education programs for consumers and
retailers to familiarize these groups with
the nutritional and economic values of
seafood, and the methods of handling,
preparing, and using fishery products.
Although less popular species are
emphasized, traditional species are also
featured in many of the activities. This
activity both provides the means for
communicating about species which are
being developed and helps correct
temporary supply/demand imbalances in
the marketplace for traditional species. In
addition, NMFS helps foreign buyers and
domestic producers get together to
develop export markets for U.S. fishery
products. Other activities include:

• Fishery marketing and
consumer specialists who provide
consumer and trade information and
assist processors in product
development, introduction, and testing.

• A National Fishery Education
Center develops consumer and trade

education materials such as fish charts,
recipe booklets, educational brochures,
and slide presentations.

• National Market Situation and
Outlook reports review current
conditions in the marketplace and
provide three to six-month outlooks of
supply and demand conditions for major
fisheries products.

• A Fishery Market News Service
provides current information on prices,
market conditions, production, imports,
exports, cold storage holdings, and

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Studying growth rings to determine age offish.

Assisting in tfie development and financing
of new f is fling vessels.

Observing feeding habits of
lesser-known species.

market receipts of fishery products in
major fish trading centers.

• Arrangements are made for
fishing industry participation in export
marketing seminars and foreign trade
fairs through cooperative efforts with
other agencies such as the Agriculture
Department's Foreign Agricultural
Service and the Commerce Department's
Industry and Trade Administration.
Several Commerce Department
organizations work with NMFS seeking to
find domestic and export markets for
nontraditional species.

Economic Analyses of fishery
development opportunities are made to
help set program priorities and to
provide venture analyses. Economic
analysis also results in recommendations
to U.S. negotiators on the need for
fisheries tariff protection and removal of
foreign import restrictions.

Inspection Services and
Product Standards NMFS provides a
voluntary inspection program which is
paid for by its users. Seafood producers,
packers, brokers, and buyers may
subscribe to a variety of inspection
services for plant and vessel sanitation;
product inspection for wholesomeness
and condition; product grading for
quality; chemical, physical, or
microbiological analyses, or general
consultative services. Inspection
certificates are issued attesting to the
results of the inspections or analyses.
Inspection marks appear on product
packages meeting necessary standards.
Standardization activities are an integral
part of the NMFS program on seafood
inspection quality, safety, and identity.
Standards are developed to delineate

uniform product requirements for
quality, safety, and suitability for
consumption.

Development of Suitable
Market Names for Fishery Products
Some resources are unknown to sellers
and consumers. Even though a "new"
species may be a good substitute for a
well-known product, it is difficult to win
acceptance for an unfamiliar name (e.g..
Pacific hake or Gulf croaker). When the
product itself is unfamiliar to consumers
(such as squid to most Americans), the
problem of winning acceptance is
compounded.

NMFS has a program to develop
a new uniform system for establishing
market names for fishery products. The
basis for the names are the edibility
characteristics of the fish rather than the
common or usual name of the fish used
by fishermen and scientists. The new
system will allow consumers to shop
intelligently for seafoods. Further, this
system will facilitate consumer

Studying life tiistories of commercial and
recreational species.

Assisting in the marketing of
fishery products.

Locating and identifying non-traditional

species with commercial and

recreational potential.

acceptance of many new species which
have comnnon names that adversely
affect consumer selection. Industry
representatives have been particularly
supportive in helping NMFS develop this
new naming system.

Financial Asssistance Two
NMFS financial assistance programs help
the fishing industry obtain debt and
equity capital for vessel construction and
refurbishing.

The Fishing Vessel Obligation
Guarantee program compensates for the
fishing industry's general lack of access
to private markets for long-term debt
capital. The program through a federal
guarantee makes long-term loans from
the private sector available to the fishing
industry at reasonable interest rates.
Guarantee loans with maturities of up to
20 years are available under this program

for financing up to 87.5 percent of the
cost of constructing or reconstructing
vessels. This programs pays for itself
through guarantee fees charged to users.

The Fishing Vessel Capital Con-
struction Fund program compensates for
the fishing industry's general lack of
access to private markets for equity
capital. It does this by allowing
participants to defer paying the Federal
tax they would otherwise have to pay on
income earned from the operation of
fishing vessels. Those Federal taxes can
then be used to help pay for the cost of
constructing or reconstructing fishing
vessels.

This approach both reduces the
portion of vessel construction costs that
otherwise would have to be borrowed
(debt) and accelerates the industry's
ability to accumulate vessel
downpayments (equity).

Both programs are also available
to commercial vessels that carry fishing
parties for hire, provided such vessels

have dual documentation in both the
fisheries and coastwise trades.

Although tax-deferred funds
under the Fishing Vessel Capital
Construction Fund program can be used
for high-risk ventures in fisheries
development, the Fishing Vessel
Obligation Guarantee program is limited
to projects whose economic feasibility
can be firmly demonstrated. Thus, the
guarantee program cannot be used for
less popular species until after
commercial success has first been
demonstrated.

Other fisheries financial
assistance programs administered by
NMFS provide indemnification against
the risk of domestic fishing vessels being
seized by foreign governments and make
loans to domestic fishermen whose
vessels or gear are damaged by foreign
vessels operating in the U.S. fishery
conservation zone.

Developing and testing new fishing
techniques.

Sea Grant Programs

Research The Office of Sea
Grant provides Federal grants to
colleges, universities, and other
institutions to support research,
education, and advisory service
programs in use of marine resources. At
least one-third of the program funding
comes from non-Federal sources.
Projects include development of
improved techniques and gear for
catching fish, aquaculture studies,
economic impact studies, searches for
marine plant and animal extracts with
medicinal properties, searches for uses
of shellfish wastes, improvement of
processing techniques, development of
methods to improve product quality, and
studies in other areas such as
socioeconomics and ocean law. Several
NMFS programs complement Sea Grant
activities. Together they provide a
research base far broader than either
could alone and involve the best
researchers in both government and
university laboratories.

Education Educational
programs supported by Sea Grant cover
a wide range, from development of
graduate and undergraduate courses to
preparation of educational materials for
elementary and secondary schools.
Examples of Sea Grant education efforts
are graduate assistantships for student
participation in Sea Grant Research,
technician training programs to meet
shortages of skilled personnel, and
development of new areas of expertise
such as ocean law.

Marine Advisory Service Sea
Grant Marine Advisory Service agents
provide assistance to commercial and
recreational fishing industries, seafood
processors, supporting industries, and
the general public. They are responsible
for transferring knowledge developed in
research programs to the users who need
it and to alert researchers to needs,
problems, and opportunities in the field.
Agents also participate in programs to
create a greater public awareness of
marine affairs.

Collecting specimens for underwater
research.

Other U.S.
Department of
Commerce Support

In addition to NMFS and Sea
Grant, the Department of Commerce has
several other agencies which assist
fisheries development. These varied
organizations provide grants, staff
support, organization work, and
information that can directly assist
fisheries development.

Industry and Trade

Administration
The Industry and Trade Administration
operates both domestic and foreign
business offices and assists the industry
in importing and exporting products.
Special efforts in construction with NMFS
are being made to develop markets for
new species through foreign trade fairs,
trade missions to other countries, export
seminars on how to sell products
overseas, and programs where foreign
buyers are brought to the United States
to meet with domestic producers.

Economic Development

Administration (EDA)
The EDA Office of Technical Assistance
provides support by funding
organizations working to produce jobs
and economic opportunities. In the past it
has funded port and harbor improvement
projects and provided operational funds
for foundations whose main function is
development. EDA also funds specific
development projects.

Regional Commissions
Each Department of Commerce Regional
Commission provides a Federal/State
partnership created to encourage and
induce orderly, accelerated economic
growth in the region. The membership of
each Commission includes a
Presidentially appointed Federal
Co-chairman and the Governors of the
respective States. Commitments are
made to support long-range economic
development programs that will result in
permanent gains in income levels.

Developing new methods to expand
aquaculture.

Industry/government
partnership

Various means of fostering fisheries
development liave been pursued. Some
of the most successful have been
industry-initiated efforts to establish
functional, permanent, and effective
self-help organizations to implement and
supervise industry development projects.
The following examples have been
successful by providing a focus for
industry participation through a single
entity and by attracting government and
private funds for their research and
development needs.

New England
Fisheries
Development
Program

This government/industry
partnership was formed in 1973 to
develop lesser-known fishery resources
in the New England area. Program
leadership is provided by a Task Force of
industry advisers from the New England
Fisheries Steering Committee. Key State
officials also participate in the planning
process. An NMFS program manager
was appointed to oversee projects and
coordinate NMFS technical support. Sea
Grant institutions throughout New
England have made a large contribution
to this program.

The primary aim of the program
is to help develop economically sound
industries from species previously
unused by the U.S. industry. To accom-
plish this, all aspects of the selected
species are studied, and development
efforts are evolved to meet the specific
needs of each species. Research and
development work includes reviewing
data on resource availability; developing
new harvesting technology or adapting
already existing harvesting methods;
developing efficient handling, storing,
and sorting methods for vessels and
plants; reviewing current technology, its
applicability to the new species, and the
development of new technologies if
necessary; investigating various product
forms in both domestic and foreign
markets; and developing new or
expanded markets. The impact of the
program is estimated to be an annual $20
million increase in the New England
economy and an increase of 850 new
jobs during 1973-76.

Vessels of the At/antic fishing fleet.

10

Pacific Tuna

Development

Foundation

There are vast, latent tuna
resources in the Central, Western, and
South Pacific that can provide the basis
for a cooperative development program
by the U.S. tuna industry and by the
people of Hawaii, American Samoa,
Guam, and the Trust Territory of the
Pacific. Funding for the Pacific Tuna
Development Foundation is provided by
NMFS Saltonstall-Kennedy funds (fees
from tariffs on imported fishery
products), industry, and the Pacific
Islands Development Commission. The
main objective of the island areas is to
provide employment and economic
development in their areas. The tuna
industry's objective is to find additional
supplies of raw material and fishing
areas for its expanding fleet.

School of tuna in the Pacific Ocean.

Gulf and South
Atlantic Fisheries
Development
Foundation

The Gulf and South Atlantic
Fisheries Developnnent Foundation was
chartered in 1976 with representatives
appointed from existing fisheries
industry organizations from Texas to
Virginia. Operational funds were
provided primarily by an Economic
Development Administration (EDA) grant
with additional contributions by

participating industry organizations.
Project funds were provided by EDA and
the Coastal Plains Regional Commission.
NMFS provided staff support for the
Foundation until an executive director
and administrative assistant were hired.
Projects include developing midwest
markets for Southeastern underutilized
species, conducting a mackerel seining
demonstration project in the Western
Gulf, preparing a seafood industrial park
feasibility study for the State of Florida,
and preliminary work on several other
projects.

Fishing for croaker in the Gulf.

12

Alaska Fisheries

Development

Corporation

The Alaska fishing industry
believes that it is imperative to have a
single entity to evaluate the research and
development needs of the fishing
industry in Alaska, to solicit and secure
public and private funding for research
and development projects and
disseminating results and conclusions of
the projects, and to work with the public
and private sector to stimulate and
encourage development of the fisheries
in these waters.

The industry has formed a
nonprofit corporation, the Alaska
Fisheries Development Corporation, the
membership of which will reflect
equitably the interests of both fishermen
associations and processors from all
sections of Alaska.

Bringing Alaska king crab on board.

Unloading halibut.

13

National Marine
Fisheries Service

IMational Marine
Fisheries Service

Regional Directors

The National Marine Fisheries Service
and Sea Grant provide a broad range of
services to fishermen, dealers,
processors, wholesalers, retailers, food
service firms, and consumer groups.

Consult the following offices for more
information regarding research, market
development and other fishery
development services.

Terry L Leitzell

Assistant Adminstrator for Fisheries
National Marine Fisheries Service
Washington, D.C. 20235
(202) 634-7283

JackW. Gehringer

Deputy Assistant Administrator
National Marine Fisheries Service
Washington, D.C. 20235
(202) 634-7243

Winfred H. Meibohm

Executive Director

National Marine Fisheries Service

Washington, D.C. 20235

(202) 634-7292

Joseph W. Slavin

Acting Director, Office of Utilization
National Marine Fisheries Service
Washington, D.C. 20235
(202) 634-7261

David H. Wallace

Director, Office of International Fisheries
National Marine Fisheries Service
Washington, D.C. 20235
(202) 634-7514

Roland F Smith

Acting Director, Office of Resource
Conservation and Management
National Marine Fisheries Service
Washington, D.C. 20235
(202) 634-7218

Robert F Scott

Acting Director, Office of Science and

Environment
National Marine Fisheries Service
Washington, D.C. 20235
(202) 634-7469

John T Everett

Chief, Fishery Development Division
National Marine Fisheries Service
Washington, D.C. 20235
(202) 634-7451

Thomas J. Billy

Chief, Seafood Quality and Inspection

Division
National Marine Fisheries Service
Washington, D.C. 20235
(202) 634-7458

Michael L. Grable

Chief, Financial Services Division
National Marine Fisheries Service
Washington, D.C. 20235
(202) 634-7496

Bob E. Finley

Director, National Fishery Education

Center
100 East Ohio Street
Chicago, IL 60611

NMFS regional offices are responsible for
planning, organizing and implementing
fishery management, conservation, and
development programs.

Northeast Region

William G. Gordon
14 Elm Street, Federal Building
Gloucester, Massachusetts 01930
(617) 281-3600 Ext. 200

Southeast Region

William H. Stevenson
9450Gandy Blvd.
St. Petersburg, Florida 33702
(813) 893-3141

Southwest Region

Gerald V. Howard

300 S. Ferry Street

Terminal Island, California 90731

(213) 548-2575

Northwest Region

Donald R. Johnson
1700 Westlake Avenue, North
Seattle, Washington 98109
(206) 442-7575

Alaska Region

Harry L Rietze
P.O. Box 1668
Juneau, Alaska 99802
(907) 586-7221

14

National Marine
Fisheries Service

Regional Fisheries
Development Chiefs

Northeast

Robert Temple

191 Maine Street

Gloucester, Massachusetts 01930

(617) 281-3600 Ext. 214

Southeast

Jack Greenfield
9450 Gandy Blvd., North
St. Petersburg, Florida 33702
(813) 893-3271

Southwest

Howard 0. Ness
300 South Ferry Street
Terminal Island, California 90731
(213) 548-2518

Northwest

Robert Balkovic

1700 Westlake Avenue, North

Seattle, Washington 98109

(216)442-5366

Alaska

Walter G. Jones
P.O. Box 1668
Juneau, Alaska 99802
(907) 586-7224

National Marine
Fisheries Service

Fisheries Center
Directors

Office of Sea Grant

NMFS fisheries centers conduct multidis-
ciplinary research to provide fisheries
management and development informa-
tion to support national and regional
programs of NMFS.

Northeast Fisheries Center

Robert L. Edwards, Director
Woods Hole, Massachusetts 02453
(617) 548-5123

Southeast Fisheries Center

Richard Berry, Acting Director
75 Virginia Beach Drive
Miami, Florida 33149
(305)361-5761

Southwest Fisheries Center

Izadore Barrett, Director
8604 La Jolla Shores Drive
La Jolla, California 92038
(714)453-2820

Northwest and Alaska Fisheries Center

Dayton L. Alverson, Director
2725 Montlake Blvd., East
Seattle, Washington 98112
(216)442-4760

Office of Sea Grant

Ned A. Ostenso, Director
National Sea Grant Program, NOAA
Washington, D.C. 20235
(202) 634-4120

Robert D. Wildman, Deputy Director
National Sea Grant Program, NOAA and

Head, Living Resources Division
Washington, D.C. 20235
(202) 634-4028

Arthur G. Alexious, Associate Director
Program Development and Head,
Non-Living Resources Division
National Sea Grant Program, NOAA
Washington, D.C. 20235
(202) 634-4019

Richard C. Kolf, Head

Commercial and Development Division

National Sea Grant Program, NOAA

Washington, D.C. 20235

(202) 634-4124

Dr. Hugh J. McLellan, Associate Director
Grants Management and Head,

Environmental Studies Division
National Sea Grant Program, NOAA
Washington, D.C. 20235
(202)634-4019

Robert J. Shepherd, Associate Director
Marine Advisory Services and Head,

Human Resources Division
National Sea Grant Program, NOAA
Washington, D.C. 20235
(202) 634-4132

15

The Fisheries Conservation and
Managennent Act of 1976 conferred upon
the U.S. fishing industry priority rights to
harvest millions of tons of fishery
resources now being used prinnarily by
foreign fishing nations. However, access
to these fisheries does not automatically
generate a renaissance in the U.S. fishing
industry. We now must develop the
capacity to harvest, process, and market
these resources at a profit to the industry,
and in the public interest as a stimulus to
the U.S. economy. Diversion of these
resources from foreign fisheries to U.S.
utilization can help greatly to lessen our
enormous negative foreign trade balance,
now some $2.1 billion for fisheries
products alone. Full domestic realization
of our national fisheries development
opportunities will bring under U.S. control
a rich flow of protein food from the sea —
a renewable strategic resource of great
potential importance now and for
the future.

Photo Credits:

Credits for photos from left to right are separated by

commas, top to bottom by dashes.

Cover: Earnest Braun from The Image Bank.

Cover Inserts :Mark Joseph, Joe Upton, Joe Munroe from

Photo Researchers, Inc., Mark Joseph

I: J Sill from The Sea LibrarylPQ

2: Ed Smith - William High

3: Sea Grant, Ed Smith - NOAA Magazine

5: NMFS

16

6: William High

7: George Mattson, NMFS

8: NOAA Magazine

9: Sea Grant

10:H.P.Mefford

12: Ed Smith

13: Martin Litton from Photo Researchers, Inc., Marine

Construction & Design Co. (MARCO)
Inside back cover: Jim Amos from Photo Researchers, Inc.

''^7lfi?,!!,^'^'^^''S'TY LIBRARIES

U.S. DepartmdnVof Commerce

Juanita M. Kreps, Secretary

National Oceanic and
Atmospheric Administration
Richard A. Frank, Administrator

AaooD7mmo3t

National Marine Fisheries Service

Terry L. Leitzell

Assistant Administrator for Fisheries

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