• Overview
• Morro Bay Videos
• September 2008 Event
• March 2009 Google Event

FBN SEPTEMBER 2008 EVENT SUMMARY

On September 26, 2008, the California Fisheries Fund, in conjunction with Environmental Defense Fund, held the first Fisheries Business Network (FBN) event on “Increasing the Profitability of Fishing and Fish in the 21st Century.” We would like to thank all panelists, moderators, speakers, and participants for their part in making the event a success. The following summarizes the background, discussion and key outcomes from the event.

Background and Rationale

EDF believes that economic incentives are powerful tools for addressing critical environmental issues such as acid rain, climate change, water supply, and sustainable fisheries – and we have an outstanding track record of seeing our ideas put into practice. We also understand the essential role that government plays in establishing an appropriate playing field, and we work directly with regulators and businesses to find the right balance between regulations that ensure equity and incentives that promote efficiency in the private sector. Over the past 30 years through both practical experience and applied research in a wide variety of industries we have learned that in many cases market-based performance standards work better than command-and-control prescriptions to achieve good environmental and economic outcomes. By rewarding businesses for developing creative and cost-effective solutions, market-based standards align private and public interests.

To help promote innovations in fisheries, EDF established the California Fisheries Fund (CFF). CFF aims to test the hypothesis that there is significant latent value in fisheries, value that can be unleashed through smart investments and changes in management, gear, port infrastructure, marketing, and other business practices that can benefit both businesses and the State of California. CFF has $5 million of State and private capital to invest in California fisheries – but for CFF to be successful, fishing businesses must be profitable.

Fisheries Business Network – Purpose and Goals

The goal of the Fisheries Business Network is to create a network of fishermen, processors, distributors, retailers, restaurant owners, and others in the fishing industry who can work together to increase the profitability and sustainability of fishing through improved communications and business practices, improvements to fishery management, and marketing of sustainable fishing and products. Specific objectives of the event include:

• To provide a business networking opportunity for fishing industry leaders
• To exchange ideas and educate attendees about new business models and economic and regulatory trends in the fishing industry
• To identify and collaborate on opportunities and challenges in business practices and fishing regulations
• To share information about the California Fisheries Fund and other funding sources that are available to improve fisheries and fishing businesses

FBN First Meeting – Outcomes

This first FBN event brought together over 75 fishermen, industry, regulators, retailers, consumers and academics to share a diverse range of perspectives and ideas. We received 29 survey responses from conference participants. The overall feedback was positive with 89% of respondents indicating their interest in attending a subsequent event. On a scale of 1 to 7, with 7 being extremely satisfied, the average overall satisfaction with the conference was rated at 6.1. The average effectiveness of the meeting as a business networking opportunity was rated at 5.7 out of 7, and the average level of satisfaction with the variety of speakers, presentations and topics covered was rated at 6.1 out of 7. Overwhelmingly, respondents indicated a desire for more time for interaction, questions and discussion.

FBN Meeting Summary

Keynote Speaker: How to Make Money in Fishing Today

Brian Mose, Commercial groundfish fisherman, British Columbia

• Existing reality and its challenges
• Less fish
• Less access
• More regulations

What does a fisherman need in this reality?

• Greater ability to adjust to external forces
• Ability to fish more selectively
• Ability to develop an economically viable fishing plan

How to do it? Allocate quota shares to fishermen

• Ensures accountability – better for the resource, better data
• Allows fisherman to develop business plans and adjust
• Key to success is to make sure fishermen are involved in design, implementation, ongoing management and funding of these programs

Lasting Benefits

• Stops the race
• Fishing for value not pounds
• Fishermen can survive and thrive because the system allows fishermen to take measured risks and execute plans

The FBN all-day meeting consisted of four panel presentations, summarized below.

1. Market Trends: Why Does Sustainable Seafood Matter to Business?

   Gil Silvia, Marine Resource Economist, described major themes affecting marketing of seafood (worldwide): a) Sustainability; b) Sharing the ocean; c) Property rights; d) Co-management; e) Aquaculture; f) Consolidation of food industries worldwide; g) Niche marketing; and h) Ecosystem-based management.

   Natalie Webster, AAFA, presented an overview of Marine Stewardship Council (MSC) certification from a client perspective. She noted especially the value of the pre-assessment process; that traceability of the supply chain is key; and certification can help fishermen become price-setters rather than price-seekers.

   Giovanni Comin, Central Coast Seafoods, described his company’s approach to move away from volume-based product, and build demand for sustainable seafood.

   Dave Stern, Monterey Fish Market, remarked further on marketing sustainable seafood products, noting its branding potential. Both Comin and Stern emphasized that consumers increasingly want the story of their seafood (what it is, where it comes from, who caught it, is it sustainable), and often pay a higher price when fishermen and retailers combine to sell the story.

   Tobias Aguirre, Fish Wise, detailed some reasons why retailers are pursuing sustainable seafood, namely that they are motivated to distinguish themselves from the pack and are taking both proactive and reactive approaches to selling more sustainable seafood.

    

2. Case Studies: Better Fish, More Money

   Stu Nelson, Nelson Bros Fisheries Ltd, gave an overview of various fisheries in British Columbia (including sablefish and halibut) that effectively responded to the changing fishery management demands, and are now more ecologically sustainable and economically viable after the transition to ITQs.

   Mark Tognazzini, Tognazzini’s Dockside Restaurant, explained the power of a direct link between fishermen and consumers who want to know where their seafood comes from; and that educated consumers can and will increase the profitability of fishing.

   Brett Cunningham, Morro Bay Fish Company, gave background on the formation of his seafood distribution company in the context of both the challenges of and opportunities for reviving a fishing community.

   Dick Allen, Commercial fisherman and consultant, shared lessons learned from the Atlantic lobster fishery in the context of other lobster fisheries around the world, pointing out that competition for a natural resource is a zero-sum game, and that an effective management system based on allocation will produce higher rates of catch with less gear in the water. A system of tradable quota share is ideal, but where it is not possible, a system of tradable traps is worth pursuing.

    

3. Fishery Management Challenges: Opportunities and Constraints

   Marija Vojkovich, Marine Regional Manager – CDFG, presented the ‘view from the State’ about opportunities for and challenges of co-management and market-based management of fisheries. CDFG needs to balance its public trust responsibilities with the needs of improving efficiency and allowing innovative management approaches.

   Rod McInnis, Regional Administrator – NOAA Fisheries Southwest Region, presented a ‘view from the Federal government’ on three key themes that have a direct effect on fishing businesses: a) harvest controls and the changes to be implemented from the 2006 reauthorizing amendments, notably required Annual Catch Limits; b) increasing efforts towards bycatch reduction and ecosystem management; and c) a growing interest in and trend towards Limited Access Privilege Programs (LAPPs).

   David Spooner, Assistant Secretary for Import Administrator, International Trade Administration, gave an overview of his administration and how it supports US interests in competition from imported seafood. He also quickly outlined 2007 changes in the World Trade Organization (WTO) that include a broad prohibition on most kinds of fishery subsidies.

   Joe Sullivan, Attorney, talked about why the process of co-management is an appropriate vehicle for the allocation of resources managed by access privileges, or catch shares. He described a ‘template’ being worked through in multiple areas of the country – in which government outlines a policy framework for harvest privileges and allocates shares to qualified stakeholder associations, and then the associations make any further allocation and operational decisions that are necessary.

    

4. Money and Other Resources to Improve Business

   Christine Blackburn, Program Manager – California Ocean Protection Council (OPC), presented an overview of the OPC and its grant funding capability, which is shaped by enabling legislation and follow-on guidelines developed by OPC. Examples of grant projects include commercial fisheries business planning processes in Morro Bay and Port San Luis, and in Moss Landing; or community wharf projects in San Francisco and San Diego.

   David Fairchild, Monterey Bay Unified Air Pollution Control District, described a State grant program for Commercial Marine Vessel Owner Diesel Repowering, with the ultimate goal of reducing carbon emissions. Vessel owners that fish in state waters can obtain grants (on average $100,000) to change out old, dirtier engines.

   Jason Winship, Sea Change Investment Fund, gave an overview of how venture capital can be used in the seafood industry, and his company’s criteria for a double bottom line to achieve environmental and financial returns.

   Michael DeLapa, CFF Manager, gave an overview of the California Fisheries Fund, now capitalized by State and private investments and open for business. The CFF will use available capital to make strategic loans to fishermen, fishing associations, or fishing-related businesses for the purposes of realizing latent value as fisheries move to market-based management systems. CFF loans could be used for a wide range of activities, such as: access privilege planning; latent capacity buyback; gear switching efforts; fisheries observing costs; research and development; or elements of MSC certification.