Since the review took place only 18 months into the rationalization program, there have been less than two full fishing seasons to study and less than two full cycles of the complex arbitration program. The reviewers point out that as with any complex system, participants are likely to develop a better understanding of the system, learning and adapting their participation over time, and that most conclusions in the paper should be viewed as preliminary.
The review acknowledges the complex and conflicting problem statements issued by the council, which specifically called for a program that “… maintains healthy harvesting and processing sectors …” but also “… seeks to achieve equity between harvesting and processing sectors, including healthy, stable, and competitive markets.” The reviewers state that “in the development of the program, the council must have recognized the conflicting goals expressed in this statement. Competition in markets typically contributes to instability, as participants work to secure their position.”
The paper explains in great detail the intricate arbitration system that was set up to establish fair market prices and prevent collusion by processors. All stakeholders are required to join in arbitration, which is administered through a series of contracts among shareholders and arbitration organizations. The authors of the paper stressed that because of its complexity, a seemingly small, innocuous change in the system could have far-reaching consequences that might upset the delicate balance of power between the parties.
While the paper is rich in detail about the inner workings of the crab rationalization program, it makes few concrete suggestions for changes, largely as a result of the shortage of study material due to the limited time frame of the program. It does, however, offer an intricate education about how the program was set up and expectations about how it would work, and also offers some insight into how much work and planning went into it, and perhaps why groundfish rationalization seems to be on the slow track.
The full report, as well as a meeting agenda and other materials, can be viewed online through the council’s Web site, at http://www.fakr.noaa.gov/npfmc/.
Seafood Currents, an online magazine published by Seafood Business, reports that attendees at the World Aquaculture Society Conference in San Antonio, Texas, established the Ocean Stewards Institute, a trade organization representing open-ocean fish farming.
More than 50 aquaculture industry representatives agreed to create a unified advocacy voice. The OSI’s mission is to represent and work toward the best use and management of the open oceans, according to the e-zine.
“A key goal of the Ocean Stewards Institute is to provide leadership in setting standards of sustainability, humane treatment and healthfulness of products from open-ocean fish farms,” said Neil Sims, founding member of the OSI Steering Committee. “This would enable us to meet the expectations of the community and the consumer about our operations within the public domain.”
The OSI will also provide testimony on the National Offshore Aquaculture Act of 2007. U.S. Commerce Secretary Carlos Gutierrez promoted the federal proposal on Monday at the International Boston Seafood Show. The act faces opposition from U.S. Sen. Lisa Murkowski, who has twice offered legislation prohibiting the development of any new off-shore aquaculture ventures in federal waters until Congress addresses the environmental issues associated with offshore aquaculture.
Cristy Fry has commercial fished in Homer since 1978. She also designs and builds gear for the industry. She currently longlines for halibut and gillnets salmon in upper Cook Inlet aboard the F/V Realist. She can be reached at cristy-fry@excite.com.
When the crab rationalization program was put into place, the council asked that an analysis be delivered 18 months after implementation to examine two aspects of the program: the distribution of benefits between harvesters and processors arising under the harvest share-processor share allocations and arbitration system, and the distribution of landings of different harvest share types. That analysis has been delivered to the council in the form of a 47-page report authored by four council members that will be reviewed at the meeting.






