The Alaska commercial seafood sector’s profitability declined 50 percent from 2022 to 2023, with the industry suffering a USD 1.8 billion (EUR 1.7 billion) loss in the period according to an economic snapshot produced by NOAA Fisheries.
“Commercial fisheries have flourished in Alaska for generations, shaping social structures, cultural identity, and robust local economies. Beyond the economic impacts, the decline of fisheries in the region threatens a way of life, sense of place, community, and identity,” Alaska Fisheries Science Center Economist and lead author of the economic snapshot Steve Kasperski said.
The Alaska fishing industry requested NOAA Fisheries conduct the economic snapshot following declines in commercial fisheries revenues and increases in harvesting and processing costs in 2022 and 2023. NOAA Fisheries economists found that Alaska’s seafood industry experienced higher costs associated with increased wages, higher energy prices, and higher interest rates beginning in 2022. Those challenges resulted in the loss of 38,000 jobs nationwide and a USD 4.3 billion (EUR 4.0 billion) loss in total U.S. output, according to the snapshot. Together, the states of Alaska, Washington, Oregon, and California suffered a combined loss of USD 191 million (EUR 176 million) in tax revenues.
The snapshot lays out several contributing factors to the industry’s woes.
Increased competition from Russia pollock, which can be labeled as Alaska pollock in the international market, pushed prices lower, according to NOAA Fisheries. Prices were also lowered by retailers’ decision to purchase less wholesale seafood, opting instead to move high priced inventory out of cold storage slowly to keep prices artificially high. In the past, retailers typically lowered prices to clear inventory.
Other contributing factors were trade barriers, the strengthening of the U.S. dollar, inflation, seafood plant closures, and lost processing jobs.
“The closures, sales, and leases of processing facilities in 2024 left many fishermen, processing workers, and communities scrambling,” the snapshot states. “Numerous fishermen across the region had to attempt to find new buyers for their fish, causing tremendous distress. Plant closures displaced processing workers and left residents of fishing communities unemployed or underemployed.”
The report also notes that harvesters and processors do not have access to federally sponsored revenue insurance which would help protect them from unexpected losses of revenue. Farmers are able to access such insurance through the U.S. Department of Agriculture.
NOAA Fisheries shared its snapshot findings with Alaska’s recently established Joint Legislative Seafood Industry Task Force, which is producing a report on the state’s seafood crisis.
“This snapshot is an example of the type of research we intend to advance through this national effort,” NOAA Fisheries’ Senior Advisor for Seafood Strategy Michael Rubino said. “With climate change, resource managers, fishermen, and other interest groups need timely social and economic data so they can understand and respond to challenges like we are now facing in the Alaska seafood industry.”
