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DEVELOPMENT OF A COMMERCIAL FISHERIES INDUSTRY STRATEGY FOR THE STATE OF NEW YORK., PREPARED FOR: NEW YORK STATE DEPARTMENT OF STATE DIVISION OF COASTAL RESOURCES AND WATERFRONT REVITALIZATION CONTRACT NO. C001 012 A SUBMITTED BY: KEARNEY/CENTAUR DIVISION OF A.T. KEARNEY 225 REINEKERS LANE VIRGINIA 22313 SH 222' 'EMBER, 1989 N7 066 1989, CONCLUSIONS AND RECOMMENDATION DEVELOPMENT OF A COMMERCIAL FISHERIES INDUSTRY STRATEGY FOR THE STATE OF NEW YORK PREPARED FOR: THE NEW YORK STATE DEPARTMENT OF STATE DIVISION OF COASTAL RESOURCES AND WATERFRONT REVITALIZATION PREPARED BY: KEARNEY/CENTAUR A DIVISION OF A.T. KEARNEY, INC. Property of CSC Library Contract Number: C001012 December 1989 U.S. DEPARTMENT OF COMMERCE NOAA COASTAL SERVICES CENTER 2234 SOUTH HOBSON AVENUE CHARLESTON SC 29405 CONCLUSIONS AND RECOMMENDATIONS 'DEVELOPMENT OF A COMMERCIAL FISHERIES INDUSTRY STRATEGY FOR THE STATE OF NEW YORK" INTRODUCTION Mid-Atlantic Fishery Management Council, which has partial jurisdiction over the fisheries off the The major tasks of the New York Department of coast of New York. The remainder of this State's Division of Coastal Resources and jurisdiction has been retained by the New York Waterfront Revitalization (DCRWR) are to: State Department of Environmental Conservation (NYSDEC), which is responsible for the Serve as a catalyst to encourage the management of living marine resources within the protection of valuable marine resources; Marine and Coastal District of New York State. � Review goverriment actions for consistency The Marine and Coastal District consists of the with the State's Coastal Zone Management tidal waters of the Atlantic Ocean within three Plan; and nautical miles of New York's coastline (territorial sea), and all other tidal wetlands within the State. � Promote the formation a ,nd expansion -of Examples of primary fisheries under State control capital investment in waterfront areas for include hard clams, inshore lobster, inshore surf appropriate development. clams, and striped bass. The State also maintains regulations for the following finfish species: fluke, In keeping with this general mandate, the DCRWR weakfish, blackback, Atlantic cod, bluefish, weakfish, has been charged with implementing the following mackerel, scup or porgy, and black sea bass. For policy: "to further develop commercial finfish, a more detailed explanation of NYSDEC shellfish, and crustacean resources in the coastal management, please see "Marine Resource area by encouraging the construction of new, or Management Needs" and "Managing New York's improvement of existing on-shore commercial fishing Marine Fishery."' Chapter 6 of this report also facilities, increasing marketing of the State's seafood contains a summary of many of the key state and products, maintaining adequate stocks, and federal regulations for 21 fisheries in New York in expanding aquaculture facilities." the biological stock assessment. Although this charter appears direct and succinct, Unfortunately, the implementation of the FCMA the implementation of this policy is an elusive and and other initiatives have failed to provide the complex undertaking. As a result the DCRWR has commercial fishermen of New York many of the sponsored, with this report, the creation of a anticipated benefits. For example, since passage of commercial fishe -ries industry strategy for New York the FCMA the aggregate value of New York's State which will be consistent with the above stated harvest has declined from S46.3 million to S41.7 policy and which will assist the Department of State million (constant 1987 dollars). Declines have been in carrying out its Coastal Management Program. even more dramatic in some of the State's leading This report presents an overview of marine fishery fisheries. For example, New York's hard clam activities in the State of New York and develops harvest has declined by approximately $14 million strategy for perpetuating and enhancing the when measured in constant 1987 dollars. Tle oyster commercial fishing industry there. harvest, for which New York-produced product has a national reputation, declined by S5 million when Background valued in constant 1987 dollars. Such' trends are particularly alarming given that the harvests in the Most strategic planning for offshore commercial adjacent states of New Jersey and Rhode Island fishery management is the result of the Fishery have remained relatively constant. Conservation and Management Act (FCMA) and subsequent amendments. In 1976, the FCMA Declining abundance for many species due to habitat established exclusive U.S. fishery management loss, pollution, and over-fishing are often cited as authority over all fishery resources within 200 the causes of these drops. Although these are nautical miles of the coasL Regional fishery clearly pressing problems, a wide variety of other management councils were established, including the ES-1 factors may be adversely affecting New York's industry in New York. fishing industry. 71"his investigation has. been chartered to identify these otherfactors. Absesce of economies of scale- In New York's commercial fishing industry there is an inherently In addition to seafood harvesting, the seafood high labor content, and it is intrinsically hard to handling and processing industry has traditionally mechanize. For instance, the unit of production is been an important economic enterprise in New York the individual boat. Having multiple boats does State. Unfortunately, these activities have also been little to lower fishing costs because all boats are declining as evidenced by: the drop in the volume essentially fishing in the same waters with the same of product handled - at the Fulton Market; the chance of a good catch. Thus, there are many small inability of Fishport to attract interest; and the operators with roughly equal costs. decline in the value of New York-processed seafood products. Edt Baffkm Aside from economic barriers (i.e., outstanding loans for vessels and gear, low job-skill For example, in 1976, 119 million pounds of fresh transferability), managerial exit barr iers are common seafood and 36 million pounds of frozen seafood to fragmented industries like commercial fishing. were handled at the Fulton Fish Market alone. By For instance, certain competitors in commercial 1985, less than 90 million pounds of fresh product fishing are not solely profit-oriented. Commercial passed through the facility (reliable statistics on fishing has a romantic appeal and excitement that frozen seafood after 1981 are not available--frozen attracts people who want to be in the industry product is of secondary importance in fish markets). despite lower or even non-existent profitability. State-wide, the value of fishery products processed has declined from S150 million in 1976 to $77 Coping with Fragmentation million in 1986 (real 1987 dollars). 71is reduction in processing activities has resulted in corresponding With the realization that the fishing industry is declines in employment in both processing plants fragmented there are strategies that can be initiated and at wholesale establishments. A secondary to, in New York's case, maintain the viability of the requirement of this DCRWR-sponsored study is industry, and possibly even increase profit potential. therefore to identify and define the strengths and Some general concepts of effectively dealing with weaknesses of the shore-side processing industry and the commercial fishing industry in New York are use them to guide the formulation of a stabilization briefly explained in the following. or development strategy. Increased value added An effective strategy may be Industry Structure of Commercial Fishing to increase the value added of the business. Value added refers to the increase. in the value of a Before a strategic analysis of New York's product as it moves through industry sectors, For commercial fishing industry can be examined it will instance, as a fish moves from the harvesting sector be important to identify and explain characteristics to the processing sector to the retail sector its value of the industry. As a whole, commercial fishing is increases. From the State's perspective, this will an inherently fragmented industry, which can be be beneficial if the product remains in the State characterized as: through all of the sectors. # an industry in which no firm, or operator has by product I)pe or product seg?nenL a significant market share nor can strongly Differentiation of product is another way to influence industry outcome; maximize the strengths of a particular group's strategy. In the case of New York Statecbmmercial * an industry where there is an absence of market fishing, as will be discussed later, there are many leaders with the power to shape industry events; differences in New York's seafood products that can and be utilized to maximize profitability. - an industry populated by small- and medium- Study Objectives sized operators. The primary goal of this investigation is to identify Two main underlying economic causes to this a course of action that will reverse the decline in fragmentation have prevented consolidation of this the New York commercial fishing industry and ES-2 better utilize renewable fishery resources as a tool industry has maintained its overall proportional for regional economic development and economic share of catch from Mid-Atlantic waters. ( .For this diversification. 'Me following are the specific study analysis, Mid-Atlantic water states consist of New objectives: Jersey, Rhode Island, and Connecticut). It should be noted, however, that for certain fisheries such as Develop a source document which presents hard clams, New York's relative position has a comprehensive characterization of New declined relative to Rhode Island and New Jersey. York's commercial marine fish harvesting Over the last seven years, the average New York and processing industries. landings value has been approximately 09 percent of New Jersey's landings, 63 percent of Rhode Island's Undertake an inventory and assessment of landings, and 306 percent of Connecticut's landings. the infrastructure supporting the State's fish harvesting and processing activities. The composition of those landings has changed, however, over the last 15 years. Over this time Assess the biological health of the major period certain trends, such as the -following, appear fisheries in the region. to be evident. Evaluate the current economic health and Traditional fisheries lack opportunities for further long-term viability of New York's growth, and In fac4 halting further decline will be commercial fish harvesting sector. the main challenge. Identify the competitive position and Between 1972 and 1987, the overall volume and relative strengths of New York's fishing value of landings have remained relatively flat with and seafood processing and wholesaling finfish gaining in importance. The total volume of businesses. New York landings averaged 38 million pounds between 1972 and 1987. Total exvessel value of Compare these relative strengths to the landings averaged S52.4 million between 1972 and available fishery resources in order to 1987, with Suffolk County receiving 88 percent and identify prospective opportunities for Nassau and King's Counties receiving 11.7 and 0.3 growth. percent of the value of New York harvest respectively. Furthermore, the value of landings has � Identify and present a menu of the remained relatively flat, but the value of landings stabilization and development options has been increasing recently in response to higher available to the industry. unit prices for both the same fish as well as larger harvests for higher value fish. Exhibit ES-1, on the � Synthesize this information to facilitate illustrates the volume of the State's landings from the development of a comprehensive state- 1972-1987. wide action plan which maximizes the economic benefits from the local harvest Exhibit ES- 1 and resident seafood handling operations. COMMERCIAL FISHERY STATISTICS FOR NEW YORK VOLUME OF FISH AND SHELLFISH IN POUNDS, 1972-1987 A further requirement for this document was that POUNDS it develop and present information supporting the (Millions) requirements of the various other state agencies 1100- 90- EM FISH TOTAL which have responsibility for marine resource So- CM SHELLFISH TOTAL management and economic development. As such, 70- this document has been prepared as a guide to all so - parties concerned with New York's commercial 50. fishing industry, including government, industry, and 40- academia. 30 20- COMMERCIAL FISHERY SUMMARY OF 0 PRODUCTION IN -NEW YORK STATE 1972 1974 "76 1970 1900 1982 1984 1980 Since 1980, the New York commercial fishing ES-3 Exhibit ES-2 illustrates the value of the State's Exhibit ES-4 illustrates the decline in the value of landings from 1972-1987. the hard clam harvest. Exhibit ES-2 Exhibit ES-4 COMMERCIAL FISHERY STATISTICS FOR NEW YORK EXVESSEL VALUE OF HARD CLAMS, 1972-1987 VALUE OF FISH AND SHELLFISH, 1972-1981 (1987 DOLLARS) DOLLARS (1987 DOLLARS) DOLLARS (Millions) (Millions) FISH TOTAL SHELLFISH TOTAL Besides the increasing importance of finfish in the Fisheries that have sustained high growth in the State's overall landings profile, another major trend last 16 years were primarily in offshore and/or high- is the marked decline in the hard clam fishery in the value finfish such as swordfish, fluke, and tuna. last 12 years. Between 1972 and 1987, the hard clam harvest and exvessel value dropped 76 percent New York's commercial fishing industry has been and 72 percent respectively. Ile reasons for this dominated by traditional fisheries such as hard decline are complex, and include: over-fishing, clams, lobsters, and oysters. The composition of the illegal harvest from uncertified areas, illegal harvest profile of New York landings, however, is changing of seed clams, changes in bay salinity, deterioration to favor other previously less exploited and more of water quality and associated increases in closures finfish species. Exhibit ES-5 illustrates that of harvest grounds, and reduced hard clam revenues from species such as lobster, bluefin, reproductive success. Exhibit ES-3 illustrates the blackback, whiting, swordfish, surf clams, squid, decline in the volume of the hard clam harvest. fluke, other tuna (yellowfin and bigeye), and tilefish have been increasing in the last sixteen years. Exhibit ES-3 Exhibit ES-5 LANDINGS OF HARD CLAMS IN POUNDS, 1972-1987 GROWTH FISHERIES FROM THE MID- 1970'S TO MID- 1980'S POUNDS (1987 DOLLARS) (Millions) (Millions) ES-4 Exhibit ES-6, on the other hand, illustrates that Table ES-2 revenue from species such as hard clams, Oysters, Average Value and Percent Increase Between striped bass, sea trout, and scallops has been 1972-1974 and 1985-1987, in 1987 dollars decreasing in the last sixteen years. 1972-1974 1985-1987 Exhibit ES-6 Average Average Percent DECLINING FISHERIES FROM THE MID-1970'S TO MID-1900'S Species Value Value Increase (Millions) 19 8 7 DOLLARS) Fluke $1,666,000 S4,106,000 146% 4- Swordfish 1,000 1,624,000 156,000 2- Bluefin 5,300 569,000 10,400 0 Other Tuna 2,531 2,492,000 98,300 ............ ............ -2 . ........... ...... ............ 4 These fisheries have increased to the point, however, .......... .......... ............. where no further significant growth can be ............. biologically expected from these fisheries with the 10 ............. -12 possible exception of "other tuna" (yellowfin and bigeye). T'herefore, the challenge will be to preserve -14 -16 New York's position in high-value "non-growth" -Is% fififish rather than increasing harvests of these HARD CLAMS OVSiERS ITRIPE6 BASS SEA TROUT SEA SCALLOPS SPECIES species. Traditional "underutilized" fisheries offer only The declines in the traditional core fisheries have moderate opportunity for growth. been virtually offset by landings from previously underdeveloped fisheries. Following the 1976 Magnuson Conservation Act that restricted foreign fishing within 200 miles of the While harvests of shellfish, and particularly hard U.S. coast, traditional "underutilized" species such clams, have been declining in the last 16 years, as mackerel, whiting, butterfish, red hake, and squid harvests of high-value finfish such as swordfish, were thought to provide the greatest opportunity for fluke, and tuna have been increasing. Table ES-1 fisheries growth, especially in New York. From summarizes the volume increases between average New York's perspective, substantial growth was only landings from 1972-1974 and average landings from realized in the squid fishery and to a lesser extent 1985-1987 for four high-value finfish species. in the whiting fishery. To document the changes in landings of these species, Table ES-3 summarizes the volume increases or decreases in landings Table ES-1 between average landings from 1972-1974 and Average Landings and Percent Increase Between average landings from 1985-1987 for these 1972-1974 and 1985-1987, in Pounds "underutilized" fisheries. 1972-1974 1985-1987 Table ES-3 Average Average Percent Average Landings and Percent Change Between Species Landin2s Landing� Increase 1972-1974 and 1985-1987, in Pounds Fluke 1,804,000 2,503,000 39% 1972-1974 1985-1987 Swordfish 400 481,000 120,158 Average Average Percent Bluefin 7,100 193,000 2,619 Species Landing Landing Chany-e Other Tuna 9,700 1,089,000 11,132 Butterfish 1,161,000 900,633 -22% Table ES-2 summarizes the value increases between Red Hake 315,000 281,000 -11 the average value from 1972-1974 and the average Mackerel 397,000 447,000 +13 value from 1985-1987 for the same four high-value Whiting 2,172,000 3,763,000 +73 finfish species. Squid 755,100 6,328,466 +738 ES-5 The substantial growth that was expected for these the squid resource by developing specialized fisheries has not materialized in New York for a infrastructure to handle this species. In fact, much variety of reasons, including: of the squid caught in New York is transported to New Jersey for blast freezing and/or processing. In � domestic markets for these fisheries continue addition, the domestic market for squid is somewhat to be small and cannot absorb increases in more developed than for the other traditional landings; Runderutilized" species. Therefore, some specialized infrastructure catering to this activity could be � as a result of low demand, the price per considered. Thus, traditional "underutilized" pound has rem ained lovr, fisheries will not be the panacea for fisheries development in New York as once thought, but can � there is a lack of specialized infrastructure only be relied on to provide moderate growth in the such as blast freezers and processing plants future. in,New York to handle these types of fish; Competition for fishery resources between - New York is a high-cost producer, and these recreational and commercial fishermen is Increasing species have low-margin profit potential; and and will continue to increase. � it is unprofitable for New York fishermen As available fishery resources in New York waters to export these low-margin species. continue to remain the same, and in some cases decrease, competition for these resources will For these reasons, there is only moderate potential increase between commercial and recreational for growth in these fisheries in. New York in the fishermen. Table ES-4 illustrates how the near future. The only possible exception to this competition for resources is affected by biological would be further utilization of squid. Other states factors and the landings of these species from the surrounding New York have successfully exploited commercial and recreational sectors. Table ES-4 Exploitation Status, Competition for Resource, and Landings Between Recreational and Commercial Fishing for Key Fisheries 1995-1987 1985-1987 Commercial Recreational Exploitation Competition Landings Landings Spg!@es Status for Resource (R2unds)2 (R2unds)3 Bluefish Biologically Major 1,772,000 NA fully exploited, opportunity for expansion of commercial catch Blackback Fully to over Increasing 1,132,000 5,000,000 exploited Fluke Over exploited Major 2,632,000 6,000,000 Weakfish Fully to over Major 358,000 191,000 exploited Striped Bass Over exploited Historically 694,000 NA Major Swordfish Over exploited Significant 481,000 NA .Bluefin Over exploited Significant 193,000 NA Other Tuna Moderately Increasing 1,090,000 NA exploited ES-6 In these fisheries, the potential for conflict win most yellowfin tuna, no species can justify a significant likely intensify over the next several years. increase in effort due to an available stock and T-herefore, it will be important to assess possible markets. In some cases such as.bluefish, mackerel, programs, such as artificial reefs, that will enhance dogfish, whiting, and to a lesser extent, squid, opportunities for recreational and commercial markets will need to be developed before any more fishermen. effort directed at these fisheries can be justified. It would appear that additional landings would The general biological outlook for New York appears primarily serve to depress prices for the commodity to be fair to poor with very limited opportunity for even further. In other cases where markets already growth. exist, the species is already fully to over exploited, and therefore, no increase in effort could be In general, the biological outlook for New York justified. fisheries appears to be fair to poor. Although several traditional fisheries are in decline, it is Conclusions relating to commercial fishery reasonable to expect that they will recover over the production. long term. In addition, a number of species that have been thought of as "underutilized* continue to The changing make-up of landings and the be underutilized, but offer only . limited growth biological elements summarized above indicate the potential for the reasons outlined in previous necessity of the preservation of New York's position sections. with respect to most species. Increasing effort in one particular fishery, with the possible exception of Exhibit ES-7 graphically represents two constraints squid and bigeye and yellowfin tuna, does not to fishery development, marketability and availability. appear to be advisable at this time. Even with this This chart confirms the lack of opportunity for in mind, it will be helpful to summarize each increased effort in most fisheries. At this time, with species' potential by evaluating factors contributing only the possible exception of squid and bigeye and to opportunities in each fishery for fisheries Exhibit ES-7 POSITIONS OF TWENTY SPECIES WITH REGARD TO BIOLOGICAL STATUS OF AVAILABITY AND MARKET DESIRABILITY EXPLOITATION OVER STRIPED BASS SWORDFISH coo BLUEFIN WEAKFISH SCALLOPS YELLOWTAIL HARD CLAMS LOBSTER SCUP FLUKE SURF CLAMS BLACKBACK WHITING FULLY REMAKE BUTTERFISH BLUEF13H OTHER TUNAS SQUID MACKEREL UNDER DOGF13H J WEAK EXISTING MARKET HIGHLY PRIZED MARKETABILITY STATUS OF MARKETS ES-7 currently worth over $100,000 in landings. Exhibit growth in the last 15 years, and expansion of one or ES-8, on the following pages, summarizes those two underutilized species. factors contributing to a species' potential. These factors include: SUMMARY OF FISHERY-RELATED PORT - Species (only species which valued over INFRASTRUCTURE $100,000 in 1987 New York landings are The fishermen on Long Island face an array of presented); continuing and serious problems relating to fishery -infrastructure. Many of the constraints on - Estimate of demand--measured by change fishermen stem from their conflict with coastal real in unit price over the sixteen years of the estate development projects and recreational boaters analysis; who have crowded harbors, reduced services available to commercial fishing, and driven up living - Total nominal 1987 New York harvest and operating expenses. Fishermen find themselves (lbs.); squeezed from both an operating and economic perspective. - Importance of recreational fishery and potential for conflicts; In general, the main problems for the commercial fishing industry in New York documented in the - Suitability of existing fleet to landings; report continue to be: - Status of management of the resource; and Space In ports: Most ports on Long Island are extremely crowded with recreational - General outlook for commercial fishery. boats and commercial harvesters. As a result, conflicts grow over the limited From this exhibit and the previously highlighted amount of dock space in most ports. The conclusions, it is apparent that halting the decline problem is so severe that some ports do and preserving New York's position should be the not have enough space for boats to pack focus of any program. out their catch at a dock. Therefore, a successful fishery stabilization program High operating costs: Most marinas cater should primarily halt the decline in established to recreational boaters and charge high fisheries and pursue development of one, possibly prices for fuel and repairs. Also, two fisheries, The following objectives should be increasing living expenses have made it pursued in order to address the above apparent difficult for fishermen to operate on Long trends. Island. � Preserve traditional shellfishing activities. Channel and harbor problems: Some channels provide excellent access to the * Preserve New York's position in high ports; however, some severely restrict value, "non-growth" fisheries. access and use of the ports on Long Island by fishing boats. � Preserve and develop fishery-related infrastructure. The following documents the number of vessels in the New York commercial fishing fleet and Over the years of the analysis, the commercial infrastructure problems at various ports.' fishing harvest has remained fairly steady (in many cases New York fishery harvests are declining), and Number and Type of Boats at Ports on Long Island with current stock levels there is no indication of it increasing in the coming years. Thus, it is clear that 'Mere are a total of approximately 304 commercial the major thrust of a commercial fisheries industry trap and trawl fishing vessels based in ports on .4 ximately 126 trawlers, strategy for New York State will be the preservation Long Island There are appro. of its traditional fisheries, maintenance of its 119 lobster boats, 48 long-line, and 11 shellfish position and increased market share with respect to dredges, as well as various gillnetting operations. high-value fisheries that have sustained substantial The trawlers and long-line boats are concentrated ES-8 Exhibit ES-8 Commercial Fishery Statistics for New York Factors Contributing to Opportunity For Major Species Groups Change in@ Total Nominal Competition for Suitability Status Of Commercial Unit Price 1987 New York Resource by of Now York Management Outlook species Over 16 Years Catch (lbs.) Roe. Fishery Fleet to Landings Anglerfish +203Z 571,100 NA NA NA NA Bluefish +13X 1,564,600 Major Adequate FMP in Markets must be developed before preparation increase In landings 13 sustainable ButterfLsh -361 1,008,600 Insignificant Adequate FMP since Domestic markets Must be developed before 1979 Increase In landings is sustainable Cod +36Z 427,800 Moderate Inadequate- FMP since Resource will not sustain increase limited number of 1986 In fishing effort, NY contribution small offshore trawlers Blar-kb&ck +1301 1,226,900 Increasing Good Offshore FMP Resource not likely to Sustain Increase since 1986, In fishing effort Inshore in prop. Yallovtall +120% 484,800 Insignificant Good M since Resource not likely to sustain increase 1986 In fishing effort Fluke +60Z 2,641,400 Major Adequate FMP since Resource not likely to Sustain increase 1981 Inshore in fishing effort 1988 offshore Red Hake +792 463,000 Minor Limited number of PMP since Market could Sustain increase in offshore trawlers 1977 landings Atlantic -11% 410,100 Minor Requires larger FMP since Market must be developed before Mackerel V033013 1979 Increase in landings is Sustainable Scup +37Z 2,008,300 Moderate Requires larger None Resource not likely to sustain Increase to major Vessels in fishing effort WeakfLah +133% 329,100 Major NA Resource not likely to Sustain increase NA in fishing effort Shad -62Z 619,082 Minor Good on Hudson Local Market is glutted by time of New York run Spiny +15Z 155.700 Insignificant Requires larger None Market Must be developed before Dogfish vessels with increase in landings is sustainable refrigeration Swordfish +460% 531,000 Significant Limited number FMP since Resource not likely to sustain increase of well suited 1985 In fishing effort vessels Taurog +173Z 225,200 Increasing Good NA NA ......... Exhibit ES-8 (Cont.) Commercial Fishery Statistics for New York Factors Contributing to Opportunity For MaJor Species Groups Chan& in Total Nominal Competition for SuitabLlity Status of Commercial Unit Mce 1987 Now York Resource by of Now York Management Outlook Species Over 16 Years Catch (lbs.) Rec. Fishery Fleet to.Landin&s TLlefLsh +106X 4,401,200 NA Limited number NA Market could sustain moderate increase of bottom in landings long-lLners Bluefin +324X 203,800 Significant Good ICAAT Resource not likely to sustain Increase in Tuna fishing effort Other +11221 1,595,400 Significant Good NA Market could sustain increased fishing Tuna effort Whiting +58Z 4,523,500 Insignificant Adequate NA Market and resource could sustain some to minimal increase In landings Crabs +121% 313,865 Insignificant Using clam NA Market could sustain Increased boats fishing effort Lobster -19X 1,146,700 Minimal Good FMP since Resource not likely to sustain Increase In 1985 fishing effort Hard Clams +34Z 2,776,600 Minor Good State & town Resource not likely to sustain increase in regulations fishing effort Surf Clams +16Z 2,890,800 Insignificant Adequate FKP since Resource not likely to sustain Increase In 1977 fishing effort Conch +12Z 153,700 NA NA NA Market could sustain Increase In landings Oysters -6.5% 174,100 NA NA NA Resource not likely to sustain Increase In fishing effort Sea +31% 107,000 Insignificant Upgrade gear FMP since Resource not likely to sustain Increase in Scallops of fleet would 1982 fishing effort be required Long-Finned -3% 7,826,200 Insignificant Good FMP since Market must be developed further before Squid 1979 increase In Landings can be sustained on the southern and eastern parts of the Island, and process. The three shellfish establishments are the lobster boats are concentrated on the northern located in . Northport, Greenport, and Point and western parts of the Island. Lookout. It should be noted that there were a total of 37 processing plants in New York in 1987. The Channel and harbor problems are most severe at seven noted above were singled out because they are Islip, West Sayville, and Shinnecock; and gear the largest to rely on New York product for a storage at all but two ports Is Inadequate. significant source of their supply. Other processors, such as a salmon-smoking plant in Brooklyn, rely on Most ports on Long Island have adequate channel out-of-state or imported product for their supply. and harbor infrastructure, with the notable exceptions of Islip, West Sayville, and Shinnecock. This is significant because of the value added Islip and West Sayville have shallow channels which associated with the processing sector. With so few restrict the use of the ports to small vessels. In processors utilizing New York-landed seafood a Shinnecock, shoaling in the inlet continues to be a large portion of value added is being lost. serious problem for fishermen. Gear storage is another problem faced by New York's commercial 77here Is a lack of marine repair yards and timely fishermen. With the possible exception of Mount fuel service at commercial rates at ports on Long Sinai and Mattituck, no port provides adequate gear Island. storage for fishermen. Gear storage space is a critical component of an efficient on-shore One of the major problems facing New York commercial fishing facility. Fishermen have a great fishermen is the lack of marine repair services for deal of gear that requires storage during off seasons commercial fishing vessels. Most marinas on Long and different fishing seasons. They also have gear Island cater to recreational boaters, and prices for that they need to store and use year-round such as services are very high. For most major repairs, trawl doors, tow lines, lobster traps, nets, etc. commercial fishing vessel owners must travel to Staten Island, Rhode Island, or Connecticut to get Competition for docking space and fish landing their boat serviced. Greenport has the only facilities at many ports on Long Island Is intense. extensive repair facilities on the island suitable for large commercial boats. Other ports such as Intense crowding in many of the ports on Long Huntington, Northport, Port Jefferson, Setauket, Island has resulted in competition for space and Mattituck, Shinnecock, Freeport, and Point Lookout many conflicts between commercial fishermen and. have repair facilities, but they are primarily. for recreational boaters. Conflicts have been especially recreational boats and services are relatively frequent at ports on Long Island Sound. As of expensive. now, fishermen in Mount Sinai, Port Jefferson/Setauket, Northport, and Huntington Another problem in some ports is the inability to (primarily lobster fishermen) must pack out to skiffs purchase fuel at commercial rates. Many captains, and transport the catch to shore. Also, most vessels especially in ports like West Sayville, Port Jefferson, in these ports must moor in the harbor because and Huntington, must pay full retail prices for their there is no overnight dockage available. On the fuel. Some ports even lack dockside fuel tanks, south shore, Freeport particularly has a severe making it necessary to truck fuel in dockside. This docking problem. can make purchasing fuel inconvenient, and even cut Only 22 percent of New York processors utilize New into fishing time because fueling must be scheduled. York products for a significant portion of their Ice capacity and refrigeration and freezing storage producL is minimal at most ports on Long Island. Only 10 sizable processors on Long Island handle There are approximately 8 ice producers that supply primarily local product, including 7 finfish processors ice to commercial fishermen at commercial rates on and 3 shellfish processors. The 4 largest finfish Long Island. 71ree ports (Point Lookout, Freeport, processors, which were interviewed for this study, and Shinnecock) provide ice storage. The remainder are located in Greenport, Montauk, Hampton Bays of ice users purchase from a producer--usually (Shinnecock), and Islip. Even among these, all Riverhead Ice Company--and truck it in, or they buy except the processor in Montauk rely on out-of-state from recreational marinas, and in some cases, even sources for a substantial proportion of the fish they buy from local delicatessens. ES-11 Although there are approx[matety 13 major operation. Therefore, the preservation and refrigeration and freezing units on Long Island, development of fishery-related infrastructure should access to these facilities is sometimes limited. be a major objective of New York State. Usually these facilities are tied directly to processors and buyers, so fishermen must go through these SUMMARY OF ECONOMIC ISSUES IN THE agents for access to refrigeration and freezing. HARVESTING SECTOR Conclusions In Fishery-Related Inkastructure. In the course of the field work, three recurring themes were stressed by the operators in the All of the above infrastructure deficiencies are commercial fishing industry. These issues can be constraining the commercial fishing industry's ability analyzed by answering these three questions: to operate efficiently. To remedy this, the infrastructure solutions that should be considered, * Have operations become less profitable in include: recent years? providing dock space in Point Lookout by * Do fishermen in New York receive less utilizing unused city dock space; for their catch than operators in surrounding states? *providing municipal dock space in Freeport; - Are operating costs higher on Long Island, and if so, do they significantly affect - providing improved access to Islip Harbor, profitability? - providing improved access to West Sayville To answer the first question, relative profitability Harbor-, was measured. for 6 species by incorporating the value of landings, productivity (based on catch-per- - dredging Shinnecock Inlet (targeted for unit-effort), and operating costs into a model that 1990); estimated relative profitability over time. From this analysis, it was concluded that the relative - more accommodation of transient boats in profitability of fishermen, for the most part, is Montauk and Point Lookout; declining with increases generally occurring only in extraordinary cases. - utilization of fishing industry infrastructure surplus in Greenport; The question of whether New York fishermen receive prices for their products comparable to those - providing water and power hookups in received by operators in surrounding states was best Mattituck; addressed by comparing landings originating from the same geographic location and for which there * resolving local waterfront competition and were no size or quality differentials in the products providing basic services to lobster landed. When this was undertaken for each of the fishermen in Mount Sinai, Port six primary fishing grounds frequented by Long Jefferson/Setauket, Northport, and Island's fishermen, the following conclusions could Huntington through the Local Waterfront be drawn: Revitalization Program; and - New York fishermen routinely receive * Providing gear storage space in Freeport, relatively higher prices for their harvest Montauk, Port Jefferson, Northport, and than fishermen from other states; Huntington. - the price differential results from value- These are infrastructure solutions that should be added handling operations and the ability Considered if New York wants to enhance its to supply specialty fresh fish markets; competitiveness in the commercial fishing industry. Most of the needs are basic to a commercial fishing the price differential is more pronounced in low- and moderate-value finfish; and ES-12 situations of lower prices can often be few New York processors rely on New explained by a lack of specialized York harvest. processing capabilities. General constraints that make it difficult and Thirdly, while operating costs are high for all of sometimes impossible to operate include, but are New England, New York fishermen felt they were not limited to: paying particularly high prices for their goods and services. In order to assess this, the relative costs Energy Costs: One of the significant of operating a vessel in Long Island were compared operating costs for a processing operation to those in an alternate New England port. is electricity. New York, and especially Long Island, have some of the highest The net effect of the model in section 4.3 was not energy costs in the nation. intended to represent absolute profits or losses, but only to illustrate the effect of higher input costs in Transportation Costs: This is another cost New York to a fisherman's income relative to the that is particularly high in New York production costs experienced by fishermen with because of delays caused by traffic and the which local fishermen must compete. It was high cost of repairs, maintenance, fuel, and concluded that high costs of operating preclude capital to support a trucking fleet. fishermen from effectively harvesting many low-value species; limit the species appropriate for export; and Taxes: Waterfront real estate values require harvesters to set higher dockside prices. skyrocketing on Long Island have made it increasingly difficult for processors to carry Clearly, New York fishermen should continue to taxation burdens resulting from perform those activities that add value to their reassessments at fair market values. product to combat high operating costs and declining profitability. In order to address some of Wastewater Treatment Capacity: the economic problems, though, the State should Processors use large amounts of water consider pursuing an objective of reducing harvesting cleaning and processing seafood products. production costs. Excess wastewater- treatment capacity is scarce especially on Long Island, thus TRENDS IN THE PROCESSING SECTOR IN NEW constraining existing and new development YORK of processors. Over the course of this analysis, some trends were Available workers: Seafood processing is detected in the seafood processing sector in New messy and it is hard to hire prospective York which primarily reflect the difficult nature of employees away from other available jobs processing in New York. . This sector of the in high- employment-rate areas such as commercial fishing industry in New York appears to New York. be the most adversely affected by the operating conditions found on Long Island. This sector is a These constraints must be the first considerations key element in maximizing the value-added impacts made if preserving or expanding processing capacity of New York commercial fishery products. becomes an option. In addition to these general Therefore, the strategies developed to combat the operating constraints, further considerations will following challenges should be seriously considered. contribute to the strength of a new processing plant: In the processing sector the detected trends include: Processors may not be able to locatd near - processors in New York face a myriad of the source of the product. With the reality general constraints; of expensive waterfront development at most ports on Long Island, processing - the value of processed fishery products is facilities will not likely be able to locate declining in New York; near the catch; they might have to consider making pickups of products at ports by 0 processing employment is declining; and truck. ES-13 Processors should be sensitive to the New Exhibit ES- 10 York market. Much of the catch from PERCENT OF VALUE OF REGIONAL AND New York waters is marketable in New NATIONAL EMPLOYMENT, 1976-1906 York. Processors should also be sensitive to the extent of processing required. Most New York markets require fresh seafood. Processors should react to the changing profile and seasonality of the seafood supply as dictated by the New York harvest. Processors should be sensitive to trends in catch statistics (section 2.4). Processors should try to adapt to processing different species of fish and shellfish is the harvest changes. The value of processed fishery products is declining in New York. Exhibit ES-9 illustrates that the annual value of Processing employment is declining. seafood products processed in New York declined by almost half between 1976 and 1986, decreasing While the number of processing establishments in from approximately S150 million in 1976 to New York increased by 12 percent between 1976 approximately S85 million in 1986. and 1986, average annual employment declined by 80 percent. Exhibit ES-11 illustrates the seasonal and yearly processing employment in New York Exhibit ES-9 between 1976 and 1978. New York accounted for VALUE OF PROCESSED FISHERY PRODUCTS Dollars INNEWYORK 1976-1986 Exhibit ES- 11 (Millions) AVERAGE ANNUAL SEASONAL AND YEARLY PROCESSING EMPLOYMENT BEWTWEEN 1974 AND 1986 Additionally, the value of fishery products processed in New York declined as a percent of both the total value of fishery products processed in the Middle an average of only 6.3 percent of regional Atlantic region and in the U.S. as a whole. Exhibit employment in seafood processing and 1.0 percent ES-10 illustrates this phenomenon. As a percent of of national employment during the period. the value of regional processed product, New York Furthermore, New York employment in seafood State declined by 25 percent. As a percent of the processing declined substantially as a percent of total value of processed product, New York State both total regional and U.S. employment in the declined by 39 percent. seafood processing industry between 1976 and 1986. ES-14 Between 1976 and 1986, approximately 350 full-time found in the wholesaling sector as a result of the jobs were lost in the processing sector. analysis include: Few New York processors rely on New York harvest. - the regional competitive position of Fulton Only a very limited number of processors rely on Market has declined .in the last 16 years-, New York landings for a substantial proportion of - State-wide wholesaling employment their seafood needs. Even most of these processors declined between 1976 and 1986; now truck in a substantial amount of seafood from out-of-state. There are only 10 sizable processing - total Fulton Market receipts and average establishments (7 finfish and 3 shellfish) on Long annual Fulton market receipts from the Island that rely on New York landings for any New York harvest declined between 1976 significant portion of the seafood they process. The and 1987; 4 largest finfish processors, which were interviewed for this study, are located in Greenport, Montauk, 0 the percent of the total New York harvest Hampton Bays (Shinnecock), and Islip. This going to Fulton Market declined processing is generally limited to filleting. Even substantially between 1976 and 1986; among these, all except the processor in Montauk rely on out-of-state sources for a substantial - Fishport has not been successful and is proportion of the fish they process. The three slated for permanent closure;'and shellfish processing establishments are located in Northport, Greenport and Point Lookout. All are - imports far outweigh exports passing primarily processors of clams and rely almost through the New York customs district. entirely on New York landings. The regional competitive position of Fulton Market Conclusions In the processing sector. has declined in the last 16 years. From the State's perspective, processors should be The position of wholesaling activities in New York, sensitive primarily to the products they can market primarily Fulton Market, is declining in relation to in the New York area, and dovetail those with both regional and national wholesalers and supplies of these species from the harvesting sector. wholesaling employment. Between 1976 and 1986, In this way, processors can match the species that the number of wholesaling facilities declined 3.3 the New York market requires with the species that percent relative to regional wholesaling facilities, are viable for commercial harvest. Thus, by keeping and 24.9 percent relative to national wholesaling much of the value-added activity- in the State, New facilities. Far more importantly, between 1976 and York could fully benefit from its commercial fishery 1986 New York wholesaling annual employment resources. To combat the problems of general declined 20.7 percent relative to regional operating constraints, declining value of processed wholesaling employment and 24.2 percent relative to fishery products, declining processing employment, national wholesaling employment. and little reliance on New York products the State might consider ways to revitalize this important The decline in Fulton Market's relative position as sector of the commercial fishing economy. a seafood wholesaler can be attributed to many things, including: the development of other TRENDS IN THE WHOLESAIING SECTOR IN wholesaling markets in Rhode Island, Massachusetts, NEW YORK and New Jersey-, poor sanitary conditions; inadequate cold storage and cooling facilities; Over the course of the analysis, some trends became inconvenient operating hours; and lack of loading evident in the wholesaling sector. Generally it was docks and adequate parking space. These problems found that the wholesaling sector was the strongest will be compounded by some of the new health and section of the commercial fishing industry in New safety regulations currently being formulated by the York with Fulton Market as the anchor. However, federal government for the processing sector. this position of strength is being challenged in many Regulations such as these in the wholesaling sector areas, which if not corrected could threaten New will almost certainly force Fulton and other markets York's position in this sector. Some of the trends to upgrade their facilities. ES-15 State-wide wholesaling employment declined between The portion of total New York harvest going to 1976 and 1986. Fulton Market has declined substantially. 'Me overall decline in Fulton Market receipts has Historically, Fulton has been the single most contributed to the decline in wholesaling in New important source of sales of New York-landed York State., Exhibit ES-12 illustrates that between seafood. This remains true despite a substantial 1976 and 1986, se:asonal and yearly wholesaling decline in the percent of total New York landings employment declined 31 percent and 22 percent sold through the market. Between 1976 and 1978, respectively. 'Me number of seasonal wholesale an average of 41.8 percent of the total volume of employees declined from 1,866 to 1,293 between New York landings were sent to Fulton. Between 1976 and 1986, and the number of yearly wholesale 1985 and 1987, an average of only 28.4 percent of employees declined from 1,627 to 1,275 during the New York landings were sent to the market. same period.s New York remains an integral part of the wholesaling chain in the Mid-Atlantic. At Fulton Market, however, the role of New York-landed Exhibit ES- 12 seafood in terms of total receipts at Fulton, and in terms of the portion of New York harvest going to STATE-WIDE WHOLESALING EMPLOYMENT, 1976-1986 Fulton, is diminishing. Following a long trend, Thousands of Jobs Fulton Market is increasingly relying on seafood 2.2- - SEASONAL WHOLESUNQ EMPLOYMENI trucked in from other states and imports. 2.1 - . YEARLY WHOLESALING EMPLOYMENT Fishport has not been successful and is slated for permanent closure. 1.7 In its first year, the Fishport facility handled roughly 1.6 500,000 pounds of seafood, the majority of which 1.5 failed to sell at auction. By comparison, Fulton 1.4 Fish Market handled 89 million pounds of seafood 1.3 in 1987. Thus, Fishport has encountered many 1.2 1976 1078 1980 1982 1984 lose problems and has not produced any of the desired results. In retrospect, immediately upon encountering poor Total Fulton Market receipts and average annual operating results Fishport should have implemented receipts at Fulton Market from the New York an aggressive plan to "reorient" the operation. The harvest are declining. initial plan counted on three major developments to ensure the operation's success. The first was the Total Fulton Market receipts declined 22 percent development of underutilized non-traditional between 1976 and 1987. Between 1976 and 1978, resources available in the immediate New York the ave'rage total receipts were 120 million pounds; area. The idea was to use Fishport as the focal between 1985 and 1987, the average total receipts point for developing domestic and export had dropped to 93.6 million pounds. This decline distribution of these fish. This did not happen for is significant because Fulton plays such an integral various reasons, but the main reason is that these part of the make-up of the overall commercial species are low-value, low-profit-margin fish and fishing industry in New York. New York is a high-cost producer of seafood. Tlese markets were also slow to develop. Reliance Annual receipts (volume) of fresh seafood at Fulton on them was highly speculative. Market landed in New York State declined by 32 percent between the annual average for the period The second expected development was that Fishport 1976-1978 and the annual average for 1985-1987. planned to have vessels offload catch directly from Annual receipts of fresh seafood landed in New their boats at Fishport. This was a poor assumption York averaged 15.0 million pounds during 1976- because Fishport is some distance away from 1978, but only about 10.3 million pounds during productive fishing grounds, which made it difficult 1985-1987. to get there easily, especially from eastern Long ES-16 Island, and Fishport did not support any local fleet. modifications to the auctioning system. As an example, Fulton Market has not offloaded directly from vessels since the 1950's. Ali of these or combinations of these scenarios might have been able to save Fishport from failure. The 'third expected development was the moving of If utilized correctly, Fishport could conceivably have wholesalers from Fulton Market to Fishport, but been the centerpiece of a new strategy supporting this turned out to be inviable. 'Me problem was the commercial fishing industry in New York. As that without any supply, buyers would not relocate a result of the failure of Fishport, the commercial to Fishport, and fishermen would not supply the fishing industry in New York has received none of market without any buyers. This "catch-220 situation the intended benefits. stalled the operation's effectiveness long enough to help put Fishport out of business. Imports far outweigh exports passing through the New York customs district. In light of these and other failures, Fishport was slated to be closed only a couple of months after it The import/export data contained in this report opened. In a memo to all Commissioners of the were derived for the amount of seafood arriving and Port Authority on the subject of a Fishport Review, leaving the greater New York Customs District the Port Director summarized the recommendations (District 10) for 1987. It is apparent that imports, for the future of Fishport.6 In sum, the memo by far, make up the largest portion of import/export stated, "Since we have concluded that we will not be activity in District 10, totaling S818 million in 1987. able to achieve our original objective of revitalizing Total U.S. imports of edible fishery products in the fishing industry, we recommend immediate 1987 were $5.7 billion. Therefore, approximately 14 withdrawal from all fish-related activities at the site.' percent of all fishery imports to the U.S. come through District 10. Among the cited reasons were: delays in construc- tion; the success of Cape May's and Point Judith's Exports out of District 10 were substantially lower capture of underutilized species markets, failure of than import activity in 1987. A total of $62.4 Fulton Fish Market to move its operations to the million worth of exports left District 10 in 1987. Fishport site; and other changes in the fishing Total U.S. exports of edible fishery products in 1987 industry. Several alternative approaches to the use amounted to $1.6 billion. Therefore, approximately of the Fishport facility have been set forth including: 4 percent of all fishery exports exit through District a boat basin; an intermediate processing (recycling) 10. From the chapter, it was possible to conclude center, a cold storage facility, and a park-sail that the largest exports are of products not widely (commuter ferry) operation. Thus, while the future consumed in the U.S. market such as eels and of the Fishport facility remains in question, it is butterfish. Ile rest of the export list is widely unlikely that fishing industry-related activities will distributed between high- and low-value products. again take place there. This ratio of higher imports to lower exports is Alternative uses within the commercial fishing consistent with various reports indicating strong industry were not examined closely enough. Before demand for seafood products in the New York it was closed, some possible programs could have market and the rest of the U.S 'market. In District been considered, including: 10 alone there is a trade deficit of approximately - integration of Fishport with the Port S756 million. Authority air freight facilities; Conclusions In the Wholesaling Sector. o development of a model seafood inspection Thus, the wholesaling sector of the commercial program; fishing industry is crucial to New York State fisheries because it provides a portion of value- - integration of the facility with the market added impacts New York product as well as the for frozen imports of seafood products to conduit to more value-added, impacts in the other Port Authority terminals; processing and retail sectors. By keeping as much of New York's harvest in New York as possible, the * development of an available supply of State's economy will benefit most from its resources. labor through local training programs; and ES-17 To retain the viability of the wholesaling sector in e Fulton Market's position as the largest New York, any programs will have to address the distribution point in the Mid-Atlantic- aforementioned problems. The main objective in region; the wholesaling sector will be maximizing the value- added impacts of New York-landed seafood through: -excellent access to export facilities; - promoting the upgrading of wholesaling -access to a number of specialty markets facilities; due to concentration of ethnic groups in - analysis of the distribution patterns of the the local market; and I New York seafood industry; -access to the large New York market for - developing ethnic markets in New York seafood. City; Some weaknesses of New York's commercial fishing - improving the competitive position of industry include: Fulton Market with other regional - little further potential for growth in high- markets; and value finfish; - development of a wholesale pricing sheet. *no natural growth capacity in the hard clam fishery under existing conditions; If this is accomplished, the full benefit of New York's harvest could be realized. -little or no further expected growth in other inshore fisheries; STRENGTHS AND WEAKNESSF3 OF NEW YORK'S COMMERCUL FISHING INDUSTRY *high operating costs; In order to outline a commercial fisheries industry #lack of adequate docking space for strategy in the next section, it will be important to commercial fishermen at many ports on summarize the strengths and weaknesses of Long Island, including: Point Lookout, commercial fishing in New York as concluded in the Freeport, Mount Sinai, Port report. From these strengths and weaknesses, a Jefferson/Setauket, Northport, and plan of action was formulated for New York's Huntington; commercial fishing industry. -lack of adequate ice capacity and freezing Some of the strengths of the commercial fishing facilities; industry in New York include: -lack of gear storage space in Freeport, an increase in landings of high-value Montauk, Port Jefferson, Northport, and finfish; Huntington; - harvest of mostly fresh product; -few processors relying on New York - a reputation for quality product; product; *high operating costs for processors in New - receipt of higher price per pound than York; other states; -lack of people to work in proc .essing 0 proximity to productive fishing grounds; plants, and on fishing vessels; - capacity of the infrastructure at Greenport *declining regional competitiveness of to sustain many more vessels; Fulton Market because of market conditions, buying practices, and inconvenient location; and ES-18 Fishport's lack of success and planned parameters, costs, level of effort, benefits (some of closure. the non-quantifiable benefits that increase the monetary impacts of a particular program), and Working from these strengths and weaknesses, it is priority associated with each of the proposed possible to formulate goals for the stabilization and actions. High-priority issues should be initiated in revitalization of the commercial fishing industry in year 1 of a program. Priority issues should be New York. initiated in year 2 to 3 of the program. Long-term priorities should be initiated in year 3 or 4. GOALS AND RECOMMENDATIONS FOR A COMMERCIAL FISHERIES INDUSTRY Ile proposed actions have been organized so the STRATEGY FOR THE STATE OF NIEW YORK highest-priority issues are first and lower-priority issues come later. From this summary table it is This report identified 17 studies and/or programs apparent that certain proposed actions should be applicable to a plan of action for the stabilization initiated in the first year. '17hese include- and revitalization of New York State commercial fishing industry. The 17 programs were distributed - promote upgrading of wholesaling facilities; under six general categories, including: 1) traditional shellfishing activities; 2) "non-growth" - a distribution study of the wholesaling and finfish fisheries; 3) infrastructure; 4) harvesting processing sectors; efficiency-, 5) processing in New York; and 6) wholesaling in New York. * ethnic market research; Exhibit ES-13 summarizes the goals and o a Fulton Market feasibility study; and recommendations for a commercial fisheries industry strategy for the State of New York. "I'liese project - preserving processing capacity. summaries distill salient points from the more detailed project descriptions in Chapter 8 of the A description of these programs follows. report. From the summary table it is apparent that the projects are distributed fairly evenly between the Promote Upgrading of Wholesaling Facilities in New six major categories noted above. York One notable exception to this is the importance of ProposedAcdow Not only is the distribution of the the plans of action in the wholesaling and product important, but also the quality of the distribution sector. Ile results of this study indicate product at the wholesale level. Seafood is no longer that the most crucial aspect of a commercial a low-cost source of protein. It is becoming fisheries industry strategy for New York will be in increasingly more expensive, and therefore, the the wholesaling and distribution sector. 7le main requirements for quality have become more benefit of effectively developing this sector of the stringent. Thus, the promotion of upgrading commercial fishing industry will be to maximize the wholesaling operations through information value-added impacts provided by New York's fishery programs outlining the benefits of upgrading is resources. needed. An in-house person should be assigned to familiarize himsefterself with issues such as the All indications point to landings remaining the same forthcoming regulations that are part of the Hazard 7 or declining slightly in both the long and short Analysis Critical Control Point System (HACCP). terms. Therefore, the effective use of the resource This person would then be able to educate by keeping as high a percentage as possible in the wholesalers and coordinate the State's. ability to State will be crucial to maintaining the viability of comply with these forthcoming regulations. The the commercial fishing industry in New York. promotion should address factors such as the following. Summary of Proposed Actions Basic sanitation: This includes the In order to formulate an appropriate development building in which the operation is housed, plan for commercial fishing in New York, it will be any surfaces that come into contact with important to summarize the relevant components of the fish, cleanliness of the display and the proposed actions. Exhibit ES-14 summarizes the storage areas, and personal hygiene of R ES-19 EXHIBIT ES-13 SUM14ARY OF GOALS AND RECOMMENDATIONS FOR A COMMERCIAL FISHERIES INDUSTRY STRATEGY FOR THE STATE OF NEW YORK Goal Recoffgnendation Proposed Action I. PRESERVE AND ENHANCE IMPROVE UTILIZATION OF -Conduct a study to determine the financial feasibility of a clam depuration facility. The TRADITIONAL EXISTING RESOURCES BY study would assess: SHELLFISHNG PROMOTING CLEANING OF -whether depurated clams depress the market for hard clams; ACTIVITIES UNACCEPTABLE PRODUCT -economic vi&bLlityl -liability; -constraints due to plant requirementsi and -availability of specific sites RESOLVE BOTTOM OWNERSHIP -Review state and local laws governing underwater land allocation to encourage mariculture ISSUES activities. IMPROVE MANAGEMENT OF -Design program to evaluate and implement different aspects of shellfish management that SHELLFISH BEDS analyzes -stock assessmental -alternative openings and Closing of harvest groundsl -restriction an the number of shellfish parmitst and -stricter enforcement of poaching laws. II. PRESERVE NEW YORK'S STANDARDIZATION OF EXPORT -Standardize procedure for exporting tuna to Japan. POSITION IN HIGH- PROCEDURE FOR BLUEFIN BY VALUE "NON-GROWTH" IMPROVING DISTRIBUTION -Develop brochure for sport and commercial fishermen detailing the Steps in exporting tuna FINFISH PATTERNS BRING TO MARKET to Japan, and the rigid quality standards set in the Japanese market. QUICKER WITH BETTER QUALITY USE OF ARTIFICIAL REEFS -Further support NYSDEC's artificial reef program and continue research on: TO ENHANCE OPPORTUNITIES -permitting proceduresl FOR COMMERCIAL AND -reef maLntenancel RECREATIONAL FISHERMEN -liability concerns in artificial reef materials; and -funding sources for artificial reef materials. Include implementation In analysis --purchase and deployment of the artificial reef. III.PRESERVE AND DEVELOP MAKE BETTER USE OF -State should mediate local waterfront usage conflicts through LWRP process. FISHERY RELATED EXISTING INFRASTRUCTURE INFRASTRUCTURE DEVELOP NEW -Conduct a feasibility study to locate specialized 3hore-side freezing facilities that INFRASTRUCTURE Includes analysis of: -@ocations available for facility; -freezer plant construction costs; -operating costs; and -fee schedules, projected revenues, and utilization'rateS, EXHIBIT ES-13 SUMMARY OF GOALS AND RECOMMENDATIONS FOR A COMMERCIAL FISHERIES INDUSTRY STRATEGY FOR THE STATE OF NEW YORK Goal Recommendation Proposed Action IV. REDUCE HARVESTING INCREASE PARTICIPATION IN -Financial demonstration project to compare productivity and returns of day trip operation PRODUCTION COSTS KULTI-DAY FISHING TRIPS versus multi-day trip operations. ESTABLISH TRAINING -Training programs for commercial fishing crews through vocational programs that include PROGRAMS FOR COMMERCIAL instruction in: HARVESTING CREWS -VeS361S 3afetyl -commercial fishing sear and riggings -species of fish in New Yorks -operating a vessels and -value-added handling operations. FOCUS ON OFFSHORE -Facilitate gradual transition of larger offshore Ve3361S through extension activities and FISHERIES BY MOVING TO making U39 of Federal Vessel Loan programs. LARGER VESSELS VI. REVERSE TREND OF PRESERVE EXISTING -Work with key existing PrOCe351118 Plants such &3 Cooper's Seafood In Greenport to assure DECLINING PROCESSING PROCESSING CAPACITY ON they continue to operate. Individual plants have various operating problems and CAPACITY IN NEW YORK LONG ISLAND concerns--state way be able to mediate local problems with Individual communities. DEVELOP PROCESSING -Conduct detailed financial feasibility study of economic viability of seafood plant in CAPACITY ON LONG ISLAND Suffolk County. Evaluation needs to address: -economic viability; -constraints due to plant requirements (i.e. water and solid waste treatment capacity); -availability of specific 31t03t -sites Located in pockets of unemployment; and -potential for sharing time with agricultural processor. VI.. MAXIMIZE THE VALUE ASSESS DISTRIBUTION -Conduct study to analyze detailed distribution patterns Including analyzation of: ADDED BENEFITS OF PATTERNS OF NEW YORK -source of products NEW YORK LANDED SEAFOOD1NDUSTRY -modes of transport; SEAFOOD -distribution points; and -end users. -Assess these criterion in regard to Fulton Market, 10CAl Wholesalers, and processors. DEVELOP ETHNIC MARKETS IN -Conduct a study to assess 'specialty and ethnic niches for New York produced products. NEW YORK CITY Factors to consider include: -identification of ethnic groups.; -Consumption patterns; -New York substitutesi and -reaching consumers. PROMOTE UPGRADING OF -Coordination of wholesaling activities to comply with new seafood inspection laws. WHOLESALING FACILITIES These factors will have to be addressed: -basic sanication; and -cciti"'11 conlrol poi'nt@@ EXHIBIT ES-13 SUMMARY OF GOALS AND RECOMMENDATIONS FOR A COMMERCIAL FISHERIES INDUSTRY STRATEGY FOR THE STATE OF NEW YORK Goal Recommendation ProPosed Action IMPROVE THE COMPETITIVE -Conduct detailed financial feasibility study of economic viability of upgreding, POSITION OF FULTON MARKET expanding, and/or relocating the Fulton Market facilities. The study needs to assess. WIT13 OTHER REGIONAL -sanitation facilitateal MARMS -cold storage capabLlitiesl -refrigerated displayst and -loading docks. -The competitive position of Fulton Must be reversed or facility will continue to lose market share to other regional markets. Other factors that must be assessed are: .-Improvement Of 3&163 Mechanisms at Fulton Market, and -expansion of role of Fulton Market In the distribution of Produced' Imported and exported through New York. WHOLESAT PRICING SHEET -Produce a wholesale pricing sheet that documents wholesale prices twLce-weekly. EXHIBIT ES-14 EVALUATION OF PROPOSED ACTIONS Program or Study Method Proposed Action Parameters or Cost Level of Effort Benefits Priority PROMOTE -UnloadIngireceiving Support I POr3on-months Higher quality products High Priority UPGRADING OF Extension WHOLESALING -StorLng/display Program Early compliance with FACILITIES (SEAFOOD -Weighing/packing regulations INSPECTION) -Shipping -Pending regulations DISTRIBUTION -Source of product $70,000 9 person@month3 Determine ways to maximize value- High Priority STUDY -Modes of transport added benefits -Distribution points (.A -End users ETHNIC MARKET -Identification of ethnic $35,000 5 person-months Better penetration and High Priority RESEARCH groups Utilization of New York product -Consumption patterns -Now York substitute -Reaching consumers FULTON MARKET -Viability of upgrading, $25,000-$75,000 5 person-months Higher quality product HLgh Priority FEASIBILITY expansion, and/or STUDY relocation Better utilization of out-of- -Improved sales state product mechanisms -Time and temperature abuse -Handling and packing -OPiLmal size of market EXHIBIT ES-14 EVALUATION OF PROPOSED ACTIONS Program or Study Method ProP03ed Action Parameters or Cost-- Level of Effort Benefits Priority PRESERVING -State mediation of local $10,000 2 person-months Retaining value-added benefits In High Priority PROCESSING Conflicts state CAPACITY IN NEW YORK Help diversify economic base of communities .REVIEW STATE -Resolve bottom ownership Legislative 3 per3on-months Encourage private firms to take Priority AND LOCAL LAWS Issues $15,000 responsibility for shellfish beds TO ENCOURAGE MARICULTURE -Land rights FINANCIAL -Constraints due to plant $25,000 5 person-month3 Keeps product In NY for another Priority FEASIBILITY OF requirements sector of the product cycle PROCESSING PLANT -Availability of sites Help relieve unemployment in -Sites located in pockets economically depressed area of unemployment -Potential for sharing time with agricultural processor -Tax and land buy Incentives CLAN DEPURATION -Determine if depurated $40,000 6 per3on-months Utilize restricted clams and Priority FEASIBILITY clams depress market insure quality of product STUDY for natural clams -Economic viability -Liability -Constraints due to plant requirements -Availability of specific sites EXHIBIT ES-14 EVALUATION OF PROPOSED ACTIONS PrOP03Cd Action Program or Study Method Parameters or Cost Level of Effort Benefits Priority DEVELOPMENT OF -Proximity to landings $20,ooo 3 person-months Harvest wider variety of Species Priority FREEZER CAPACITY -C&pLtal costs Increase harvest Of species like -operating costs squid -Fee schedules More control over price -UtLlizatLon rates -Projected revenues STATE Support LWRP process Through No additional Relieving Of tensions Priority INVOLVEMENT IN existing manpower LOCAL LWRP Ensuring continuance of WATERFRONT COMPETITION commercial fishing TRAINING -Set up program through $5,000 2 person-month3 More efficient harvesting Priority PROGRAMS FOR local communLt@ Operations COMMERCIAL college HARVESTING CREWS -Coordination with Job Service CLAM BED -stock assessments Legislative 5 person-month3 Enhanced recovery of hard clam Long term MANAGEMENT $35,000 stocks -Evaluation Of Openings Full and closures of program: harvest grounds $250,000- -Restriction of shellfish $500,000 permits UTILIZATION OF -Permitting procedures $20,000 4 person-months Enhance opportunities for Long term ARTIFICIAL REEFS TO commercial and recreational ENHANCE -Reef maintenance $150,000 to fishermen OPPOR7UNITITIES -Liability concerns In Install FOR COMMERCIAL -artificial reef AND materials RECREATIONAL FISHERMEN -Funding sources for artificial reef materials EXHIBIT ES-14 EVALUATION OF PROPOSED ACTIONS Program or Study Method Proposed Action Parameters or Cost Level of Effort Benefits -Priority FINANCIAL -Log of expenses, fishing DEMONSTRATION ti-, am volume of 615,000 3 Per3on-months Improvement in operating Long term PROJECTS OF catch efficiency will improve KULTI-DAY VS. profitability SINGLE DAY -Financial demonstration TRIPS model outlining Most efficient operation MOVEMENT TO -Facilitate gradual $5,000 1 per3on-month Harvest on a regular more Long term LARGER VESSELS transition to larger vessels through efficient basis extension activities making us* of Federal Vessel Loan programs BROCHURE -Landing, Icing, $15,000 3 Person-months Better quality tuna and more tuna Long term DETAILING STEPS bleedLng,unloading, OF EXPORTING packing, timing, being utilized TUNA TO JAPAN Markets, and selling On consignment PRICING SHEET WHOLESALE -Tvice-veekly update of $20,000 4 person-month3 Keep fishermen And Wholesalers Long term wholesale prices mailed to informed about prices subscribers those coming in direct contact with the fish. Exhibit ES- 15 Critical conU-W points: In the wholesaling DISTRIBUTION OF TOTAL IMPACTS BY SECTOR, sector, the critical control points that will U.S. PRODUCT ONLY most likely be affected include unloading and receiving, storing and display, weighing Food Service Harvesting and packing, and shipping. Ile Pipe of d S*'v'c (24%) effect these regulations will have on wholesalers varies by the condition of the facilities. At this point, these proposed .......... regulations will affect some wholesalers . ..... more than others. The advantage of this promotion for New York would be initiating this process now to expedite the Retail (3.0%) Processing (25.6%) process once it becomes law. Export/Import (2.3%) Distribution (6.0%) Distribution Study Proposed Actiopu Conduct a study to analyze distribution patterns of New York-landed seafood, imports, exports, and out-of-state product through price. Restaurants and retail trade retain the rest. local markets, Fulton Market and processing plants. 71lus, knowing distribution patterns will make it Included in this analysis should be a determination easier to redirect catch to local New York markets of the source and flow of product, modes of to maximize value-added impacts. transportation, distribution points, and end users. Prior to undertaking the specific analysis, research Research on Development of Market Niches for of general seafood product flows would be helpful. Seafood in Regional Ethnic Communities Such a study wi 11 track the movement of seafood Proposed Actfow In conjunction with the products through various sectors of its product cycle distribution study should be an analysis detailing and will be extremely important in determining the consumption patterns of the extremely large ethnic current value-added impacts of New York landed- markets in New York City. 'Me study would need seafood. This study will also identify ways to to consider the following. maximize the value-added impacts of New York- landed seafood. Identification of ethnic groups: Specific data on demographics of ethnic groups Once these patterns have been established, it will be such as population, location, and income possible to proceed with developing local marketing levels should be determined. From this channels for New York State-landed seafood by basis, the magnitude of the markets, and informing fishermen about niche markets and any trends in the markets, could be utilizing New York products in processing plants. determined from secondary sources. '17his study could serve as a basis for further marketing initiatives and programs, such as updating Consumption patterns: Different ethnic the New York State Fish and Seafood Suppliers groups have different seafood consumption Directory. patterns and preferences. Factolrs to consider include: types of seafood Exhibit ES-15 illustrates the distribution of total consumed, frequency of consumption, impacts by sector for U.S. product only. '17his reasons contributing to the desirability of exhibit shows that the longer the seafood product certain species and/or ways of preparing stays in New York the more the State benefits seafood, and purchasing sources. economically. For instance, the harvesting sector receives 24 percent, processing receives 26 percent New York substitutes: This study should and wholesalers receive another 6 percent of the attempt to determine the local products total impacts associated with the product's final that have already been substituted for ES-27 traditional seafood as well as those New Preserving Processing Capacity In New York York products that could be substituted for traditionally ethnic species. This task Proposed Acdar One of the main goals in could include interviews, focus groups, and revitalizing commercial fishing in New York will be taste preference tests in the various the preservation of processing capacity on Long communities. Island. Processing capacity has been declining in recent years (see Chapter 7) and in order to realize Reaching con 'sumers: Once these markets all of the value-added impacts associated with and patterns have been established, it will processing, it must be preserved. be important to document the best way to reach these consumers. One of the ways to reverse this declining trend is to have the State mediate local conflicts as appropriate This study will essentially be an export market through. the Local Waterfront Revitalization analysis, but the advantage is that the product will Program (LWRP), and permitting required by the stay in New York and retain all of the value-added State. The State might also help with tax breaks impacts locally. and/or tax incentives for existing processing plants. By allowing the State to help mediate some of the Feasibility Study of Fulton Market local conflicts the overall economic perspective will be retained as well as taking local problems into Proposed Acdorw To improve the regional account. It will be critical to retain this sector of competitive position of Fulton Market a detailed the seafood industry and the State should have an financial feasibility study of the economic viability overall plan to deal with the pressures these of upgrading, expanding, and/or relocating the businesses are under in their local communities. Fulton Market facilities should be undertaken. Upgrading the facility would take 'into account a Proposed actions to be considered to be initiated program to improve the sales mechanisms, display in the second or third year would include: improvements, health rules relating to time and temperature abuse, and handling and packing - reviewing laws to encourage mariculture; procedures. * a study to determine the financial Because of its geographic and economic position feasibility of a processing plant; close to the New York market Fulton is well positioned as a critical component of wholesaling on - a clam depuration feasibility study, the East Coast. Realistically though, Fulton has been losing market share at a rate of about 10 - development of freezer capacity, percent a year. Therefore, the primary need is to stabilize and recapture lost market share, not - further support for State involvement in necessarily expanding its operations. The need will local waterfront competition (Local be to look for ways to recapture its market or New Waterfront Revitalization Program already York will lose the existing facility. Possible ways to in effect); and recapture market share might be further expansion of Fulton Market in the distribution of training programs for commercial crews. import/export product. Also, the feasibility and profitability of relocating Fulton Market should be Review State and Local Laws to Encourage assessed. Markets similarly situated on the Mariculture and Clam Relays waterfront in large eastern cities have relocated to less crowded more easily accessible locations. At PropondAcdar Currently, most private firms will one time Fishport was supposed to be the not pursue mariculture activities in New York alternative, but failed for various reasons. Learning because they would not have exclusive rights to from this experience, an astute policy towards harvesting the product. To resolve bottom upgrading those facilities or relocation could be ownership issues, state and local laws governing executed. underwater land allocation should be revised to encourage mariculture activities of hard clams. Of course, there are criticisms to such an approach to 101 ES-28 Important factors to assess would include: liability-, Mattituck, and Freeport, waterfront competition is construction costs; operating costs; financing; fierce and the State can do much through its LW-RP optimal volume-, health and/or regulatory issues that process to ensure the continuance of commercial could make this ryW of operation prohibitively fishing on Long Island. For example, in the case of expensive in New York, arrangements with Freeport, the State has taken a leadership role -in harvesters; and policies for selling the product. preserving the character of the waterfront through the LWRP process, thereby, helping to preserve the Additional considerations that must be addressed to commercial fishing industry. A study was conducted persuade fishermen to support such a project to assess the viability of finding a new site for the include: volume of product suitable for purification; commercial fishermen in the main waterfront area. access to depuration plant; abuse of depuration More ambitious approaches would include "right to plant as a holding tank awaiting favorable prices; fish' zoning and property tax breaks for aquatic ownership alternatives; and 'taking pressure off" of industries. Other projects that should be considered sewerage companies for cleaning up waters. include: Development of Freezer Capacity - providing dock space in Point Lookout by utilizing unused city dock space; Proposed Actkvv An infrastructure development that would benefit New York commercial fishing - more accommodation of transient boats in would be development of freezer capacity in a Montauk and Point Lookout; central coastal location. Increased freezer capacity could be utilized by fishermen who do not currently - utilization of fishing industry infrastructure have access to any freezing capacity. There is surplus in Greenport; approximately 32,000 square feet of freezer space in New York used for fisheries products. Most of this - providing water and power hookups in space is not available to commercial fishermen, Mattituck-, and however, because these facilities are tied to wholesaling and/or processing facilities. Also, this - resolving local waterfront competition and Pipe of facility would tie in well with a specialized provide basic infrastructure$ to fishermen processing plant that utilized New York's squid in Mount Sinai, Port Jefferson/Setaulket, resource. Northport, and Huntington through LVVRP process. A blast freezer would be the most logical choice for expanded freezing capacity because they are designed Infrastructure problems the State can take the lead for fast freezing of unfrozen products. With species in include: like squid, quick freezing of the product is critical to quality control and quick handling of large - consideration of providing improved access volume products. Also, in order to be effective to Islip Harbor and West Sayville; and these freezers should be located dockside or near landings. - dredge Shinnecock Inlet (targeted for 1990). 'Me study would have to analyze parameters such as available locations, freezer plant construction costs Training Programs to Develop Trained Crews for (site preparation, all plant construction, loading Commercial Fishing docks, and refrigeration equipment), operating costs (primarily electrical costs), fee schedules and Proposed Acd= A continuing problem for projected revenues to ensure the success of any commercial fishermen is finding reliable crew,for attempt to increase freezer capacity. their boats. In some cases boats sit idle for lack of crew. In others, captains take the boats out State Involvement In Local Waterfront Competition themselves--sometimes with tragic consequences. Issues One way to increase the number of crew is to train them through programs at community colleges or Proposed Actiom- Support should be given for the vocational schools. New York Sea Grant and State's role in the LWRP. In ports such as Suffolk County Cooperative Extension agents have Huntington, Northport, Port Jefferson/Setauket, such a program. Another example is Kingsborough ES-30 Community College in Brooklyn. However, this be considered for full implementation include: 9 program is oriented towards charter and party boats. Redoubling the efforts of these programs towards Stock assessments: An effective hard clam commercial fishing would be beneficial to the management program will need to have commercial fishing industry in New York. Also, reliable information regarding the more accessibility to people on eastern portions of population dynamics of the resource. Long Island should be considered. These programs Therefore, all towns should be encouraged could cover such topics as vessel safety, commercial to expand, continue, or initiate hard clam fishing gear and rigging, species of fish in New assessment surveys. York, operating a vessel, and value-added handling operations at the harvesting level. Alternative openings and closing of harvest grounds: Some of the options open for Another program to supply more trained crew would closing an area for management purposes be a program to match a captain's crew needs with include: 1) closing areas that have high an applicant's skills and knowledge at the State Job concentrations of seed clams until the Service. Some accommodation of fishing crew needs clams reach legal size; 2) closing areas on by the Job Service would be very helpful in a rotational basis where an area is closed matching any experienced crew with captains in after a minimum population level has been need. Some of the recent immigrants in New York reached and opened after stocks rebuild come from countries where fishing is a main due to natural recruitment which could be industry, and they have crewed on vessels previously. supplemented by seed clam planting; and The Job Service might consider a small promotional 3) establish 'winter grounds" that are campaign with posters highlighting the opportunities closed during the summer to reduce harvest in commercial fishing. This two-pronged approach, pressure incurred during adverse winter training programs and support form the Job Service, weather conditions. could help alleviate some of the crew shortages experienced by the fishermen on Long Island.. Restriction on the number of shellfish permits: A program such as this would Lastly, programs to be considered for year 3 and contribute to the maintenance of a higher beyond include: level of landings over time, elimination of a landings profile characterized by extreme � clam bed management programs; peaks and valleys, and the stabilization of catches per permit. In this program the � development of artificial reefs; number of licensed baymen would be determined on the basis of projected � a financial demonstration project of multi- harvestable stocks in any given year, and day vs. single day trips; the objectives of hard clam management � movement to larger vessels; for the fisheries in question. Stricter enforcement of poaching laws: � a brochure detailing steps of exporting Stricter enforcement of clamming in closed tuna to Japan; and areas should be initiated. The continuing recurrence of human illnesses from a wholesale pricing sheet. contaminated shellfish will continue to jeopardize the existence of the New York Evaluation and Implementation of Alternative shellfish industry. Therefore, -it is Management Mechanisms for Clam Beds imperative to eliminate this illegal activity. ProposM AcAw Programs should be designed to It should be realized that these issues and problems evaluate and implement different aspects of shellfish are not new to New York. The main issue is water management. This evaluation would take the form quality, a problem not soon to be remedied in New of considering other successful programs and case York, therefore, smaller, more realistic solutions will studies from other states as well. It should also have to be employed if the goal is to preserve and assess the potential economic and biological impacts possibly enhance the existing shellfish resource for of alternative management techniques. Programs to all New York residents. ES-31 Artificial Reefs Moving to multi-day trips would also allow fishermen to access fishing grounds further offshore. Proposed Acdor The use of artificial reefs as fish The sample principle of reduced travel time to and aggregators is one of the few options available to from fishing grounds is augmented the farther a increase recreational and even commercial fishing fishermen moves offshore. opportunities. Designation of certain artificial reefs for recreational, commercial, or even sanctuary reefs Movement to Larger Vessels would not necessarily reduce conflict between these groups, but would increase benefits to the respective Proposed Acdom One of the major factors groups by enhancing fishing opportunities in certain inhibiting the efficiency of the commercial fleet in designated areas. With the long-standing New York is its day trip orientation. Because of recreational/commercial conflict in New York, any the proximity of the resource, day fishing has been effort to increase recreational and perhaps the standard practice. The trend recently, though, commercial opportunities would be helpful. has been to larger vessels that perform well in multi-day trip situations. Using the financial Artificial reefs would not be a new phenomenon in demonstration projects as supporting evidence, the New York. As early as '1916, the Boatmen's State should encourage the movement to larger Association of the Great South Bay, built fishing vessels that are able to harvest the changing nature grounds within the Great South Bay. More recently, of the harvest and its distance from shore. an innovative reef construction using blocks of coal combustion waste products as reef material was The strategic future of New York's commercial deployed off Long Island in 1980 with 500 tons of fishing industry is tied to the various offshore these blocks. Thus, continued effort should be fisheries. As Chapters 2 and 6 pointed out the directed at the potential for more artificial reef inshore fisheries are continuing to decline, whereas, development in New York. the offshore fisheries have been growing in recent years and are in a better position to sustain this Therefore, further encouragement of NYSDEC`s level of effort than inshore fisheries. Therefore, artificial reef program should be supported. fishermen should be encouraged to continue to shift Essentially, this task would require continued to larger vessels, and fishermen should not be research on the best utilization and placement of encouraged to move into inshore fisheries. artificial reefs; permitting procedures; artificial reef maintenance, liability concerns in artificial reef Under this program actual movement into larger materials; transportation costs of artificial reef vessels would take place through the use of federal materials; economic valuation of artificial reefs, a vessel loan programs and other sources of funds. review of funding sources for artificial reef By making larger vessels more feasible to local development, and potential sources for artificial reef fishermen harvesting efficiency would be improved. materials. A potential -danger in a program such as this is over capitalization of the fleet. This phenomenon would Financial Demonstration Projects have to be monitored very closely if such a program Ph7posedAcd= Research for, and preparation of, were put in place. financial demonstration projects to compare Standardization of Export Procedure productivity and returns of day fishing operations to multi-day trips should be developed. Some type of Proposed Acdoir One high-value "non-growth" comparison analysis that used a log would have to finfish that has the potential to be utilize ,d more is be kept comparing the same or similar vessels doing bluefin tuna. Two ways of accomplishing this are single- and multi-day trips. Once the log has been standardizing the procedure for exporting bluefin completed, a financial demonstration model would tuna to Japan, and developing information have to be written up in such a way that a dissemination programs (brochure, video, poster, fisherman would be able to understand the effect etc.) for sport fishermenio and commercial increased efficiency from multi-day operations would fishermen detailing the steps in exporting a tuna to have on his profitability. At these demonstrations, Japan. Included in this would be an explanation of other issues related to offshore fishing such as social the rigid quality standards set in the Japanese factors and the additional crew needed on multi- markets. It should be noted that work has already day trips would need to be addressed. been done ES-32 in this area, but continuing support for this program information dissemination plans. Clearly, the may be warranted. proposed actions are a balanced mixture that can One of the main reasons the bluefin harvest does produce results. not maximize its value in the Japanese markets is Consequently, these proposed actions are designed because of the poor quality of the product when it to effectively deal with the three main objectives reaches Japan, and even when it reaches Japanese New York should be focusing on with regard to its buyers in New York. For a commodity this commercial fishing industry: valuable, minutes count in determining the price of the product. '17herefore, a standardized procedure - Preserving its position in the harvesting detailing steps at critical control points (i.e., landing, sector; possibly developing one or two icing, bleeding, unloading onto dock, and overall underutilized species. timing of the operation) would be extremely helpful. -Preserving and developing fishery-related Some sort of cooperation between the Japanese and infrastructure. the New York State Department of State should be agreed upon to outline the best procedures. A -Maximizing value-added impacts from New summary of these procedures in a pamphlet York-landed seafood in the processing, distributed to fishermen would maximize the benefits wholesaling, and retail sectors of the New of this resource. In addition, portions of this York State economy. brochure may be considered for bringing species such as swordfish to local markets with better Thus, this threc-pronged approach should provide quality. the State of New York with a realistic approach to pursuing a comprehensive fishery development plan Wholesale Pricing Sheet for the State of New York. PropaW Actiopw For years the National Marine The full report, Development of a Commercial Fisheries Service (NMFS) has produced a twice- Fisheries Indusay StrateV for the State of New York, weekly "green sheet" documenting wholesale prices is approximately a 500 page study that assesses a by species and location. Recently, it was learned, full range of factors associated with commercial federal sponsorship of the "green sheet" is likely to fishing in New York. 'Me report was broken down be stopped and information may no longer be into the following sections: available to New York fishermen, processors, and wholesalers. A pricing sheet of wholesale prices will -Section 2: Profile of Commercial Fishing be critical to the commercial fishing development Activities; program in New York because it will track the wholesaling industry. In order to reasonably fund -Section 3: Port and Infrastructure an undertaking such as this it would most likely Inventory and Assessment; have to be prepared by one of the extension programs operating on Long Island. -Section 4: Economic Issues in the Harvesting Sector, Essentially this would mean obtaining price quotes from the major wholesalers on Long Island twice- -Section 5: Overview of Wholesaling and weekly. '17hese quotes would then be summarized Processing Activities; into a standard format and mailed to subscribers for a nominal fee. Some consultation with NMFS -Section 6: Biological Status and O@tlook would be required to coordinate the specific content for Key Commercial Species; of the newsletter; contacts in the industry-, and previous subscribers. Recent developments, -Section 7: Summary and Identification of however, indicate that NMFS has already taken steps Strengths and Weaknesses; and to transfer this activity to a private organization and has issued an RFP to that effect. -Section 8: Goals and Recommendations for a Commercial Fisheries Industry A strategic plan, to be effective, will have to have Strategy for State of New York. a balanced mixture of studies, programs, and ES-33 Copies of the full report or sections of the report can be obtained by contacting: Ms. Nancy Kunz New York State Department of State Division of Coastal Resources and Waterfront Revitalization 162 Washington Avenue Albany, NY 12331 (518) 474-2121 ES-34 ENDNOTES 1. New York State Department of Environmental Conservation, "Marine Resource Management Needs," Stony Brook, New York, May, 1984; and Colvin, Gordon C., Hogan, Barbara, and Weber, Alice M., "Managing New York's Marine Fishery," reprinted from The Conservationist, September-October 1987. 2. Statistical Services Branch, NMFS, special computer run of New York landings provided by Dick Schween in August 1988. 3. Statistical Services Branch, NMFS, special computer run of New York recreational landings provided by Dick Schween in February 1989. It should be noted that the data for recreational fisheries is even less reliable than it is for commercial fisheries, primarily because the numbers must be estimated based on statistical samplings. The data in this table for blackback, fluke, and whitefish should be treated as estimates that reflect the magnitude of catch in these fisheries. "MAN in this table represents data that were not available. However, it is widely known that there is significant conflict between commercial and recreational fishermen for these species. 4. The 304 commercial trap and trawl vessels differ from the remainder of the approximately 2,000 vessels on the commercial fishing license list primarily in the nature and intent of the use of the vessels. The 304 commercial trap and trawl vessels are larger vessels specifically geared to commercial harvesting, which is the primary use of these vessels. The remainder of the 2,000 vessels licensed to sell fish commercially are a mixture of sport boats, clam diggers, and small gillnetters. 5. This wholesaling employment includes Fulton and all associated wholesalers at the market, numerous processors that do not handle New York products, and other small wholesalers throughout the State. 6. Summarized from a memo to all commissioners of the Port Authority on the subject of a Fishport Review from the Port Director on March 24, 1989. 7. The HACCP system is part of the Model Seafood Surveillance Program (MSSP) that has developed 18 models for different seafood products from the harvesting sector through to the retail sector that essentially ensure the quality and integrity of the seafood product. 8. Ideally, this would include dockspace, water and power hook-ups, gear storage, and working space. If basic infrastructure items could -not be provided, then the next best alternative would be provide pack- out times for these vessels. 9. 7bese program have been summarized ftom Strategies and Recommendations for Revitalizing the Hard Clam Industry in SuffoLk County, prepared by the Suffolk County Planning Board, 1987. 10. Sport fishermen must have a commercial license to sell fish. ES-35 MAIN REPORT DEVELOPMENT OF A COMMERCIAL FISHERIES INDUSTRY STRATEGY FOR THE STATE OF NEW YORK PREPARED FOR: THE NEW YORK STATE DEPARTMENT OF STATE DIVISION OF COASTAL RESOURCES AND WATERFRONT REVITALIZATION PREPARED BY: KEARNEY/CENTAUR A DIVISION OF A.T. KEARNEY, INC. Contract Number: C001012 December 1989 DATE DUE GAYLORDINo. 2333 PRINTED IN U.S.A. 3 6668 14'08 4717