Summary from conversation with Keith Criddle on Salmonomics

  1. Economics- how society allocates scarce resources to produce goods and  services and how society allocates those goods and services
  2. Fish management that neglects economics is unlikely to be sustainable
  3. Sustainable benefits- Use (consumptive, nonconsumptive), Option (value of reserving a resource for future use), Intrinsic value
  4. Alaska accounts for approx. 50% of US fish production
  5. At the global scale, Alaska a small producer in capture fisheries (1% of seafood products)
  6. By value, Pacific salmon are really important, but by weight (landing) less important
  7. Credence attributes (e.g. wild salmon vs. hatchery salmon)
  8. Salmon a ‘social ecological system’ . ¬†Ecosystem interacting with system of laws and economies
  9. Bulk of catch of Pacific salmon are pink and chum salmon, and large volume of sockeye salmon in AK catch
  10. In world markets, sockeye salmon prices (value) very different from pink and chum salmon. Bulk of global catch of high value salmon comes from US (70%)
  11. While Alaska dominates supply of high-value salmon catch, revenues have declined (about .035 cents per year)
  12. Why? Salmon aquaculture on the rise! Norway and Chile top dog aquaculture producers
  13. Prices for aquaculture produced fish declining
  14. Approximately 5 billion hatchery fish released into North Pacific each year
  15. In some years hatchery produced fish account for 30% in some years
  16. World salmon production has increased 7 times in 40 years. For high value species 11 times as much production.
  17. Alaska has gone from producing 50-70% of world supply to producing less than 7%! Our production has not markedly changed, but aquaculture has exploded
  18. US salmon consumption has increased more than 6 times since 1980…because we have been eating more Atlantic salmon from Chile and Canada
  19. Alaska has gone from supplying 100% of demand to 20%!
  20.  Alaska used to be 90% of imports to Japan to less than 20%!
  21. The competition for Alaska salmon on the market place are contained aquaculture
  22. Feed costs for aquaculture are declining 1.4% per year
  23. Small changes in global production can have large impacts on total Alaska salmon value
  24. Concern about the power of canneries led to the state of Alaska to ban fish traps
  25. Rush of new entrants to fisheries led to congestion on the fishing grounds led to passage of limited entry law in 1972
  26. Life was good for AK prices through mid 1980s and by 1990s supply of salmon from other countries
  27. Alaska has been largely a fishery success yet failed to avoid the race for fish and so there is lots of economic inefficiencies and leaves Alaska noncompetitive on global market

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