Brief Summary of Minutes of Annual Meeting

Project participants published a total of 17 peer-reviewed articles in the reporting period. In addition, eight papers were presented at the Fifth National Forum on Socioeconomic Research in Coastal Systems – CNREP 2016 – in New Orleans, LA. Four of the papers were presented at a special session showcasing the research activities of the multistate project. Selected research accomplishments are highlighted below.

1.  Marketing, Niches, and New Products:

 Market effects of fisheries certification schemes were further explored by examining the effect of Marine Stewardship Council (MSC) certification on ex-vessel prices from three different fisheries: salmon and halibut in Alaska, and flathead flounder in Kyoto, Japan. Results were mixed: while significant increases occurred in the differences between ex-vessel prices for certified chum and pink salmon and flathead flounder relative to their uncertified counterparts, the price difference between certified and uncertified sockeye salmon declined. No significant effects were found for chinook and coho salmon and halibut. This research added to the literature on market and environmental effects of fisheries certification, which in aggregate continues to show ambiguous results across a landscape of fisheries globally.

The preferences and expenditures on fish and shellfish species by Mississippi seafood restaurants were investigated through a survey of 292 restaurants operating in the state. The survey generated valuable information on the major species of seafood products handled, sources of seafood products served, and annual gross sales and direct employment generated by the restaurants.

 The marketability of oysters locally grown in Hawaii is currently being investigated. A major goal of this research is to assess the premium – if any – that wholesalers, retailers and restaurant chefs would be willing to pay for the local product.

2. Production for Dynamic Markets:

Researchers investigated a number of important issues for the U.S. Southeast catfish industry such as the risk factors leading to outbreaks of Aeromonas hydrophila, a pathogen that has resulted in the loss of millions of pounds of catfish production since 2009, especially in West Alabama. The potential of intensive aeration practices to increase yields in the industry was also examined, as well as the potential of aquaculture effluents to enhance substrates for tomato production.

 The water chemistry and economics of a zero-discharge, commercial-scale inland marine integrated multi-trophic aquaculture (IMTA) system, which combined commercial nursery production of wetland plants with a marine recirculating aquaculture system to treat saline solid waste, was investigated. The facility – based in Sarasota, FL – successfully produced Florida pompano, and the fish waste and uneaten feed provided enough nutrients to produce multiple cohorts of wetland plants over a two-year period. The economic analysis indicated that the system is profitable but the production of Florida pompano alone would not result in a positive net return.

Research on the production economics of oyster production in Hawaiian fishponds continued during the reporting period. A model farm has been developed based on operational parameters and production cost information from a Hawaiian fishpond on Oahu. The model has been used to 1) calculate pre-tax return, 2) determine sensitive input parameters, and 3) apply stochastic modeling to determine the likelihood of different economic outcomes. At the assumed 50% mortality rate at a market price of $1.25 per oyster, decision reversal analysis showed that key parameter values are near the breakeven point. Out of seven parameters investigated, market price, oyster mortality rate, and part-time labor wage were found to have the greatest impact on the profitability of the model farm. In addition, stochastic simulation indicated that prospective oyster operators can only expect to achieve a 6% return about 50% of the time. A manuscript summarizing results from this research is currently under preparation.

Although Pacific salmon forecasting models predict stock composition, abundance, and distribution, the influence of biophysical factors on year-to-year fluctuations in migratory distributions and stock-specific survival is typically not accounted for. This deficiency was addressed by inferring the ocean distribution and relative abundance of chinook salmon stocks in the California Current marine ecosystem using catch-per-unit- effort (CPUE) fisheries and genetic stock identification data. This line of research will enhance understanding of seasonal migration patterns, which is critical for effective management of Pacific salmon stocks.

3. Regulatory Influences on Sector Development:

A regional fisheries stakeholder assessment was conducted to identify key regional issues and trends facing marine capture fisheries in Southeast Asia, as well as relevant considerations and strategies that could be used to address such regional issues and trends. This analysis provided a better understanding of the interplay between stakeholders, identifying key points of influence as well as strengths and weaknesses within the framework of promoting sustainable fisheries in a multi-stakeholder context.

Researchers also demonstrated that a monopoly renewable resource manager, such as a harvester cooperative, may create a gain relative to a rent-dissipating sector, such as an open-access fishery, because of its internalization of the impact of harvesting on the resource stock. As the monopolist reduces harvest, resource stocks recover and resource rent is generated through reduced harvesting costs. Thus, it is possible that the monopoly harvest exceeds the rent-dissipated harvest over time, leaving both producers and consumers better off. It is then argued that local resource management institutions that exert market power should not be considered violations of antitrust laws without first considering the costs and benefits of monopoly management. In cases where outside management has not had success, local management with monopoly power could represent a second-best solution.

Research was also conducted to improve ecological models currently used to determine target densities for invasive lionfish stocks in the Caribbean Sea and Gulf of Mexico. A target density is defined as that density under which prey consumption by lionfish equals production of prey biomass in a local reef ecosystem. This line of research fills a critical gap as management frameworks for the containment of the lionfish invasion continue to evolve.  

4. Assessing Infrastructure and Industry Organization:

Reflecting the growing need to establish a global, secure, interoperable support system for seafood traceability, an Issues Brief was prepared to describe factors associated with enterprise-level traceability systems that will impact the design of an Interoperable Seafood Traceability Technology Architecture suited to enabling whole chain interoperable traceability. The Brief details why a technology architecture is required, what it means for industry in terms of benefits and opportunities, and how the architecture will translate into practical results. The Brief concludes with a series of recommendations that industry can act upon to design a technology architecture suited to enabling effective global interoperable traceability.

The results of an economic survey of the impacts of the Deepwater Horizon oil spill on business operations of Mississippi seafood and commercial and saltwater recreational fishing establishments were released during the reporting period. The 331 Mississippi businesses that participated in the survey accounted for 25–65% of the total annual gross sales or employment in the sector. The oil-spill-related closures of state and federal waters resulted in the shutdown of business operations of participating establishments for about 4.21 months on average. In 2010, the direct economic impacts of the oil spill resulted in a decline of almost one-half of the annual total sales and one-third of the total employment as compared with 2009.