Brief Summary of Minutes of Annual Meeting

 Development of two Gulf of Mexico IFQ pricing reports

There is a lack of timely data on quota share (sale), quota allocation (lease), and ex-vessel (fish) prices for participants in the Gulf of Mexico Red Snapper and Grouper-Tilefish Individual Fishing Quota (IFQ) programs. Information on prices released by NOAA Fisheries in annual reports is 8-20 months out of date when released. Fishermen and dealers need access to timely information on market prices (share, allocation, and ex-vessel) to make informed business decisions. The lack of access to market data hinders quota trading and the businesses involved in the industry.

To provide more timely information on IFQ prices (share, allocation, and ex-vessel) I implemented a survey of IFQ participants that asks them about market prices they have either recently traded at or heard others traded at. The information gathered from the industry is used to create IFQ Pricing Reports that are made available to all lFQ fishermen and dealers through the Florida Sea Grant website (https://www.flseagrant.org/fisheries/ifq-pricing-reports/). During FY2022 I completed two surveys and accompanying reports (May 2022 and July-August 2022) that provided fishery participants with timely information on market prices and trends.

Commercial fishermen and dealers in the Gulf of Mexico reef fish fishery use the reports to gather more information on quota markets and to make more informed business decisions.

Network analysis of quota trading in the Gulf of Mexico IFQ fisheries

The Gulf of Mexico commercial red snapper and grouper-tilefish fisheries are managed using a catch shares (Individual Fishing Quota - IFQ) based management system. This form of management creates harvest privileges that fishery participants can trade (sale and lease markets exist) amongst themselves to match their harvesting practices in the case of fishermen and their product needs in the case of fish houses (wholesalers and or retailers that purchase fish from fishermen dockside). In catch-shares managed fisheries it is important for fishery managers to understand the mechanics of quota trading to understand how harvest might change geographically and the socioeconomic impacts of management on fishery participants.

Using funding from the Gulf of Mexico Fishery Management Council (the organization charged with rule-making regarding Gulf of Mexico federal waters fisheries) I used social network analysis to evaluate the mechanics of quota trading in the red snapper and grouper-tilefish fisheries and evaluate cointegration of quota lease prices across species groups. The analysis provided the Gulf Council and fishery participants with information on how quota is traded (through fish house centric networks) and the connections between quota lease prices for different species groups. The results were made available through a report on the Gulf Council website (https://gulfcouncil.org/wp­ content/uploads/A-7b-GMFMC-Final-Report-V2.pdf) and a webinar presentation to Council members and staff and commercial fishermen (400 participants).

Gulf Council members and staff were provided with detailed information on how quota markets function with regards to the mechanics of trading and quota price determination. The information provided has been incorporated into several background documents on proposed regulatory changes to the fishery, as such it is being used to inform fishery management policy.

Educating Southeastern oyster farmers on marketing opportunities

Oyster aquaculture is a relatively new but growing industry in the southeastern US (Gulf of Mexico and South Atlantic}. While the industry has found success selling their oysters within the southeastern region, generally they have not been able to access markets in other regions of the US like west coast and northeastern oyster farmers have. Additionally, southern oysters are often sold at a discount to oysters from other regions in restaurants that sell oysters from multiple regions. Accessing additional geographic markets and marketing their oysters in a manner that allows them to sell at higher prices will allow this industry to continue to grow and flourish.

On a project led by a fellow W4004 member (Frank Asche) and funded by the University of Florida Institute of Food and Agricultural Sciences the project team researched the US restaurant market for oysters and developed materials to improve marketing of southern oysters based on those findings. Firstly, the team developed an online lecture titled "Identifying High-value Market Opportunities for Farmed Oysters" (https://oyster-culture.teachable.com/courses/online-oyster-course/lectures/37439401) as part of an online course on all aspects of oyster farming for southern growers and those considering oyster aquaculture. Additionally, the team developed an extension document titled "Market opportunities for Florida farmed oysters" that is soon to be published as part of the University of Florida's Institute of Food and Agricultural Sciences Electronic Data Information Source (EDIS}. Lastly, a manuscript titled "The value of product attributes for farmed oysters: A hedonic price analysis of U.S. restaurant menus" is under review with the Journal of Agricultural and Applied Economics Association.

The online lecture and forthcoming EDIS document both present the findings of our research on key oyster marketing activities and product attributes important to high value markets (restaurants) across the US in plain language that is easy for growers to understand.

Informing the State of Florida on the potential economic impacts of a shark fin ban

In 2021, the State of Florida Legislature tasked the Florida Fish and Wildlife Conservation Commission (FWC) with determining the economic impacts of a potential shark fin ban on Florida's commercial fishermen. Prior to developing legislation prohibiting the possession and sale of shark fins in Florida (while shark finning is prohibited in Florida and US federal waters the sale and possession of fins after harvest is still legal in Florida if the fins were harvested legally) state government representatives wanted to know the potential impacts on Florida's commercial fishing industry.

Working with colleagues from the University of Florida's Food and Resource Economics Department we estimated the economic impacts associated with banning the sale of shark fins by Florida commercial fishermen. The results were shared were presented to FWC through both a report and presentation. Results of the economic analysis were included in a report FWC prepared for the state legislature (https://myfwc.com/ media/28379/sharkfinreport.pdf).

The results of our analysis provided FWC and the Florida Legislature with an estimate of the potential impacts of a shark fin ban on Florida's commercial fishing industry.

Impact of heatwaves in the Gulf of Alaska on marine communities and fisheries species

Marine heatwaves (MHWs) are increasing in frequency, intensity, and duration globally. These marine heatwaves can alter marine ecosystems, affect all life stages of marine species, and lead to sharp declines in fisheries. Marine heatwaves in the Gulf of Alaska have had wide-ranging negative consequences on Pacific Cod, an economically important species that experienced a steep population decline and fishery closure after recent marine heatwaves. We need to understand how marine communities and fisheries species respond to these anomalous warming events throughout their life history, from hatching to reproduction, in order to manage fisheries and prepare for and predict future conditions. We advanced our understanding of how recent marine heatwaves impacted key life history traits, including reproductive timing and early growth of Pacific Cod, an economically important groundfish species. We quantified relationships between temperature and hatch timing, size-at-age, and early growth in the Gulf of Alaska Pacific Cod. These juvenile fish were collected near Kodiak Island, Alaska, USA across 11 years “before” (2007, 2009-2010, 2012-2014) and “since” the start of multiple recent MHWs (2015-2019). We determined that hatching occurred nearly three weeks earlier since MHWs, and only ~30% of this shift in timing was attributable directly to warmer temperatures during egg incubation. However, we observed a more complex relationship between temperature and growth during the early life history. Overall, juvenile Pacific Cod hatched earlier, were much lower in abundance, and experienced substantial changes in growth during and since the marine heatwaves occurred in the Gulf of Alaska.

Our target audiences include fisheries managers, fishing communities, and marine scientists. For fishing and coastal communities, understanding how marine heatwaves affect the survival of key species, such as Pacific Cod, can provide an early warning to fishing communities regarding future fishing conditions. To that end, we have presented and discussed our research with coastal communities and students in several formal and informal venues. A greater understanding of the impacts of marine heatwaves on marine ecosystems and fishery species can raise public awareness of current and future climate challenges. We also developed two videos on our research on Gulf of Alaska Pacific Cod for the virtual Oregon State University’s Hatfield Marine Science Day’s in 2022. Both can be found on this website:

https://hmsc.oregonstate.edu/marine-science-day/research-and-discovery/fisheries-exhibits/marine-and-anadromous-fisheries-ecology-lab

Expanding markets for invasive species

• Blue catfish is harmful invasive species in Chesapeake Bay with small commercial fishery.
• Evaluate market constraints (production, consumption) via surveys and interviews.
• Commercial participation is strongly price dependent → Effort (fishing days) = 49.4 x Price.
• Consumers view as superior product to farm-raised catfish, WTP influenced by environmental information.

Evaluating interactions between offshore wind and commercial fisheries

• Offshore wind energy development is expanding rapidly throughout US coastal waters.
• Many interactions with commercial fisheries → effort displacement, scientific surveys, species habitat, shoreside impacts.
• Agent-based modeling tools developed to evaluate broad range of questions in commercial shellfish fisheries (scallop, surfclam, quahog).

Labor supply and demand in shellfish aquaculture

• Labor constraints faced by many shellfish aquaculture farms.
• Potential solutions include workforce development, changes in worker visa policies, adoption of labor-saving technology or growing practices.
• USDA project to: 1) investigate labor demands across different growing methods; 2) assess attitudes, perceptions, and preferences regarding labor availability and potential solutions; 3) develop productivity benchmarking tool.

Foodborne illness risk in oyster farming

• Main research question: How can an oyster farmer protect itself from the foodborne illness outbreak incident in a neighboring farm(s)?
• Completed field auction experiment, collecting data and observations from 360 RI consumers.
• Main results:
  • Outbreak news do negatively impact the demand of oysters.
  • Positive information did rebound or shield the outbreak news impact for oysters.
• Findings have been presented in several conferences (NAREA 2021; IIFET 2022)

Demand potential for unfamiliar seafood

• Main research question: When southern species’ distributions shift northward and are landed in SNE, will consumers accept them?
  • Relates to fishing industry’s resiliency to climate change shocks.
• Methods:
  • Consumers survey (NE residents & visitors via Mturk)
  • Restaurant experiment (4 species, six weeks)
  • Restaurant customers feedback
• Main results:
  • SNE consumers are really hesitant to consume unfamiliar fish species.
  • Visitors are a little more accepting but maybe because they’re familiar with these species (e.g., red drum).
• Results were presented at NAAFE 2023 conference.

Market for ikejime seafood in RI (just starting)

• Main research question: Can a market for ikejime seafood from local underappreciated species be created?
  • Aiming for high(er) quality & affordable local seafood
  • Focusing on small-scale and part-time commercial fishers
• Method:
  • ‘Train the trainers” with Ike Jime Federation à train RI fishers
  • Tasting and demonstration sessions with dealers, retailers, chefs
  • Tasting events with consumers
  • Conduct a survey on each stakeholder to estimate WTA and WTP.
• Funding secured; project period is 2023-25.

Economic solutions for ghost gear

• Main reesearch question: What economic instruments can be used to sustainably generate funds for the ghost gear removal program?
• Methods:
  • Estimating the economic cost of ghost gear à benefit of removal
  • Lab experiments for testing different measures
    • Permit fee (e.g., when purchasing a lobster pot)
    • Landing fee
    • Fee and Rebate
• Grant proposal submitted (pending)

 F3: Future of Fish Feed - Accelerating the race to replace the fish in fish feed

• F3 Initiative is an “X-prize” style contests to encourage and demonstrate the variety of alternative ingredients and companies producing them.
• So far, we have conducted 3 contests and awarded $750,000 in prizes. The initiative also organized two conferences where we invited alternative ingredient companies to tout their products to major aquafeed producers, fish and shrimp farming companies, and investors/venture capitalists from Silicon Valley. During Covid we conducted a series of free-access webinars which drew up to 20,000 attendees each.
• Finally, we have sponsored a series of fish feeding trials utilizing novel ingredients to produce fish-free diets.

Blue Foods: Scaling up Sustainable Aquaculture and Seaweed: Novel feed ingredients and what it means for the sustainability of the aquafeeds industry

• The main focus is on aquafeeds: transitioning from feeding high levels of fishmeal and fish oil to more sustainable and economic formulated feeds based on grains, oil seed meals, farmed animal by-products, and increasingly novel sustainable ingredients.
• As fishmeal and fish oils content in feeds decreased, it has been harder to match up the ratios of nutrients properly. Many novel ingredients are much closer to things aquatic animals naturally consume.
  
  • Eliminate wild-caught fish meal and fish oil from diets in favor of sustainably sourced ingredients providing equivalent nutrients.
  • Explain to industry insiders that nutrients are key and that there are no “required” ingredients.
  • Educate the farmers, processors, buyers and consumers of seafood that fish-free farmed seafood is similar to grass fed beef or free-range poultry as a way to protect the environment with their food dollars.

 Other recently completed and ongoing projects being conducted under W4004 themes

• Measuring consumer surplus generated by establishing commercial fishery of mesopelagic species. This fishery would primarily support aquaculture production. Preliminary findings suggest U.S. population over 18 years of age could experience lower bound welfare gains of $3.5 billion per year by establishing this fishery.
• Investigating economic feasibility of using invasive carp (silver carp) as alternative bait source for U.S. lobster industry.
• Examining whether the demand-side interventions can effectively reduce pressure on wild fish stocks, particularly via the introduction of a novel lab-grown seafood product.