MORRO BAY Economic Impact Report
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1 MORRO BAY 2013 COMMERCIAL FISHERIES Economic Impact Report August 2013
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3 MORRO BAY 2013 COMMERCIAL FISHERIES Economic Impact Report COntEntS 1. Introduction 1 2. Key Findings 3 3. Economic Opportunities 7 4. Landings, Earnings, and Price Per Pound Important Species and Fisheries Social Implications Environmental Stewardship Conclusion 31
4 ACKNOWLEDGEMENTS The 2013 Morro Bay Commercial Fisheries Economic Impact Report was conceived iv
5 1. IntROduCtIOn The 2013 Morro Bay Commercial Fishing Industry Economic Impact Report addresses economic performance during calendar year Key commercial fishing industry data is typically made public by the Department of Fish and Wildlife in the late summer of the following year. 1
6 2013 Morro Bay Commercial Fisheries Economic Impact Report The price, quality and convenience of flaked ice in Morro Bay is on par with world-class facilities like Sitka commercial fisherman of 30 years. Economic, social and environmental performance are complementary and related components of a sustainable commercial fishing industry. 2
7 2. KEy FIndIngS FIFTEEN-YEAR HIGH LANDINGS BY WEIGHT Figure 2.1.Morro Bay, All Species, Landings by Weight, , Source: CDFW 6,000,000 5,000,000 Landings (lbs) 4,000,000 3,000,000 2,000,000 1,000, EARNINGS AT THE DOCK 3
8 2013 Morro Bay Commercial Fisheries Economic Impact Report Due to shifts in the market, Sablefish earnings dropped from over $4 million in 2011 to $1.86 million in In 2011 Sablefish represented half of all landings in Morro Bay and 60% of exvessel value. JOBS, JOBS, JOBS NEW AND RETuRNING PARTICIPANTS RETuRNING AND RE-EMERGING FISHERIES Figure 2.2. Morro Bay Market Squid EVV, , Source: CDFW $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ MARKET SquID Figure 2.3. Morro Bay Salmon EVV, , Source: CDFW SALMON (KING OR CHINOOK) Salmon RESILIENCE OF THE FLEET While landings of Sablefish dropped by over $2.25 million between 2011 and 2012, or 56%, the fleet was able to respond with a diversity of activity including powerful salmon, Dungeness crab and market squid seasons. As a result total earnings only dipped by 11% in Figure 2.4. Morro Bay Dungeness Crab EVV, , Source: CDFW DuNGENESS CRAB the 23 year period at over 4
9 August Morro Bay Commercial Fisheries Economic Impact Report COMMuNITY quota FuND MBCFO WEBSITE Groundfish are a suite of over 80 species, approximately 12 of which are pursued commercially. Groundfish, traditionally targeted by trawl, have brought in tens of millions of dollars and supported hundreds of jobs in Morro Bay. This fishery is managed by the federal government and shifted to a quota structure in The MBCqF was formed to acquire and hold quota in Morro Bay, assuring the community s on-going and future access to this valuable resource. Since 2007 the top three groundfish species, sablefish, blackgill rockfish, and thornyheads, have generated $14.7 million in earnings at the dock for fishermen in Morro Bay. HEAVILY MANAGED INDuSTRY IMPORTANT FISHERIES, 2012 Data on Spot prawn landings and earning are not included in this report due to confidentiality. 5
10 2013 Morro Bay Commercial Fisheries Economic Impact Report COMMuNITY SuSTAINABILITY PLAN 6
11 3. ECOnOMIC OppORtunItIES VALuABLE INDuSTRY JOBS 7
12 2013 Morro Bay Commercial Fisheries Economic Impact Report The relative number of full versus part time participants is fluid, shifting in response to market conditions, presence and proximity of fish stocks, season, and regulatory changes (e.g. open access limits and salmon seasons). In speaking with fishermen, several estimated higher full time participation in 2012 due to the higher than average price of salmon ($8.75/lb.) and the strong Dungeness crab season. Full time participation may have been as high as switch back and forth from working as deckhand or operating their own boats as skippers. There are a handful of employees currently at the two oyster farms in Morro Bay. That number is expected to grow to grow over 15 this year and to over 40 in the next 5 years. Employment numbers for oyster aquaculture are not included in the calculations in this section. 8 1 Safety grants to assure they are in compliance with uscg requirements.
13 August Morro Bay Commercial Fisheries Economic Impact Report Table 3.1 Morro Bay Commercial Fishing Related Employment Employment Type Estimated Employment On the Vessel, Skipper, or Deckand Low High On the Dock and Baiting Processing Plant TOTAL and Harbor Management staff, (Morro Bay, 2013) Some of the new and returning vessels in the commercial fishery in Morro Bay over the last 4-5 years: Brita Michelle Prime Time NEW PARTICIPANTS Mister T Dottie K Provision Ruth Anne II Casey Dorado II Boomerang Overtime Lost Wages Kallen A 9
14 2013 Morro Bay Commercial Fisheries Economic Impact Report Multigenerational ties to the industry may reduce some of the barriers to entry. momentum to make it happen. 10
15 August Morro Bay Commercial Fisheries Economic Impact Report Synergy with Tourism A 2007 opinion poll of over 800 California residents found that, 71% seek out and enjoy going to working waterfronts. 2 Furthermore, in a 2008 survey of over 140 tourism professionals in Morro Bay, Monterey, and Crescent City, respondents gave tourism from having an active waterfront a mean rating of 8.82 out of 10 in importance. 3 The 2008 survey report goes on to state that 74% of tourism professionals also indicated that having local, fresh seafood available was of great importance in attracting business to their community. 2 CA Resident s Opinion and Attitudes toward Coastal Fisheries and their Management, Responsive Management, CA tourism and tourism professionals, Responsive Management, Economic Shocks and Regional Economic Resilience, prepared for Brookings, george Washington, urban Institute, Building Resilient Region project conference on urban and Regional policy and Its Effects: Building Resilient Regions, Washington, dc, May 20-21, 2010, Edward Hill, travis St. Clair, Howard Wial, Hal Wolman, pat Atkins, pamela Blumenthal, Sarah Ficenec, Alec Friedhoff, May 10,
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17 4. LAndIngS, EARnIngS, And price per pound OVERALL LANDINGS The Port of Seattle produced a study in 2007 that found commercial fishing vessels spend up to 33 times more money in port than recreational boats of similar size. Figure 4.1.Morro Bay Overall Landings, , Source: CDFW Landings (lbs) 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - OVERALL EARNINGS
18 2013 Morro Bay Commercial Fisheries Economic Impact Report EVV for market squid is $0.30 per pound and over 2 million pounds was landed in Figure 4.2. Morro Bay Overall EVV, , Source: CDFW $12,000,000 $10,000,000 EVV (dollars) $8,000,000 $6,000,000 $4,000,000 $2,000,000 $ Landings High: 10,518,895 (1993) Low: 668,866 (2007) 2012: $5,100,000 Average: 4,095,359 ( ) Ex-Vessel Value (EVV) OVERALL PRICE PER POuND Figure 4.3. Morro Bay Overall Price Per Pound, , Source; CDFW High: $8,490,443 (1990) Low: $1,899,443 (2007) 2012: $6,300,000 Average: $5,235,610 ( ) PP/LB (dollars) $3.00 $2.50 $2.00 $1.50 $1.00 Price Per Pound $0.50 High: $2.84 $- (2007) Low: $0.67 (1993) 2012: $1.24 Average: $1.28 ( ) 14
19 5. IMpORtAnt SpECIES And FISHERIES In Morro Bay, practically all of the salmon landed in the last 20 years is King salmon or Chinook salmon. Figure 5.1. All Species as Share of Total, EVV, Morro Bay, 2012 Total EVV in 2012 was $6.3 million. All Other Species 32% Sablefish 30% Thornyhead, shortspine 8% Crab, Dungeness 10% Salmon, Chinook 10% Squid, market 10% 15
20 2013 Morro Bay Commercial Fisheries Economic Impact Report I can t remember anything but King salmon landed in this port in the last 20 years (personal communication, commercial salmon fisherman, Morro Bay, 2013). SALMON Figure 5.2 Morro Bay Salmon Landings, , Source: CDFW 400, ,000 Landings (lbs) 300, , , , ,000 50, Figure 5.3. Morro Bay Salmon EVV, , Source: CDFW $1,200,000 $1,000,000 EVV (dollars) $800,000 $600,000 $400,000 $200,000 $
21 August Morro Bay Commercial Fisheries Economic Impact Report MARKET SquID Figure 5.4. Morro Bay Market Squid Landings, , Source: CDFW Figure 5.5. Morro Bay Market Squid EVV, , Source: CDFW The Coastal Pelagic Species (CPS) complex includes: market squid, Pacific sardines, northern anchovy, mackerel, and chub. 17
22 2013 Morro Bay Commercial Fisheries Economic Impact Report Dungeness crab is characterized by strong population cycles, alternating between periods of plenty and periods of little or no landings. The exact mechanism is uncertain, likely an interplay of weather, ocean conditions, availability of food and predation pressure, but the West Coast Dungeness stock generally experiences an explosion every years. DuNGENESS CRAB Figure 5.6. Morro Bay D. Crab Landings, , Source: CDFW 200, , , ,000 Landings (lbs) 120, ,000 80,000 60,000 40,000 20, Figure 5.7. Morro Bay D. Crab EVV, , Source: CDFW $700,000 $600,000 $500,000 EVV (dollars) $400,000 $300,000 $200,000 $100,000 $
23 August Morro Bay Commercial Fisheries Economic Impact Report HIGHLY MIGRATORY SPECIES (HMS) Figure 2.5. Individual species as Component of HMS Complex, EVV, Morro Bay, 2012 Figure 5.8. Morro Bay HMS (all species) Landings, , Source: CDFW 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , , Drift gillnet fishermen in California are the most heavily regulated on the Coast with limits on season, fishing grounds, and gear. In Morro Bay, albacore and bluefin are also targeted by small troll operations in years when the fish come close enough inshore. Major landings of albacore currently occur in Washington and Oregon. Swordfish attracted $4.33 per pound in 2012, one of the top value species in Morro Bay. 19
24 2013 Morro Bay Commercial Fisheries Economic Impact Report Figure 5.9. Morro Bay HMS (all species) EVV, , Source: CDFW The nearshore fishery has been hit hard by the establishment of MPAs. It is estimated that over a dozen Morro Bay fishermen sold their nearshore permits as a result. The nearshore fishery has generated earning and employment opportunities as is evidenced by over $14.5 million in EVV since $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- NEARSHORE The Nearshore fishery generated $301,000 in earnings in Figure Morro Bay Nearshore (all species) Landings, , Source: CDFW 400, , , , , , ,000 50,
25 August Morro Bay Commercial Fisheries Economic Impact Report Figure Morro Bay Nearshore (all species) EVV , Source: CDFW $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ Figure Individual Species as Component of Nearshore Complex, EVV, Morro Bay, 2012 Cabezon 22% Brown 13% Black and Yellow 16% Grass 16% Kelp Greenling 4% Gopher 26% Other 3% 21
26 2013 Morro Bay Commercial Fisheries Economic Impact Report SOLE Figure Morro Bay Sole (all species) Landings, , Source: CDFW 3,000,000 2,500,000 Landings (lbs) 2,000,000 1,500,000 1,000, , Figure Morro Bay Sole (all species) EVV, , Source: CDFW $1,200,000 $1,000,000 EVV (dollars) $800,000 $600,000 $400,000 $200,000 $
27 August Morro Bay Commercial Fisheries Economic Impact Report SABLEFISH Sablefish are caught by hook and line, trap and trawl. 2,000,000 1,800,000 1,600,000 1,400,000 Landings (lbs) 1,200,000 1,000, , , , , EVV for Sablefish in 2012 reached nearly $1.9 million. $4,500,000 $4,000,000 $3,500,000 $3,000,000 EVV (dollars) $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $
28 2013 Morro Bay Commercial Fisheries Economic Impact Report Hagfish are exported live to Korea where they are processed for their skins and meat. PACIFIC HAGFISH 600, , , , , , Pacific hagfish have generated approximately $1.6 million in earnings in Morro Bay between 2006 and $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $
29 August Morro Bay Commercial Fisheries Economic Impact Report AquACuLTuRE The California shellfish industry is valued at approximately $25 million and 91% of production is oysters. Source: (Northern Economics, Inc. The Economic Impact of Shellfish Aquaculture in Washington, Oregon and California. Prepared for Pacific Shellfish Institute. April 2013.) Morro Bay is ranked third in California oyster production behind Humboldt Bay and Tomales Bay. History 1850s 1869 Experimentation into providing a larger half-shell product begins with transporting Eastern oyster by rail to San Francisco Bay. Raising of juvenlies in the Bay proves successful, though cool summer waters prevent natural reproduction, neccessitating a consistent supply from the East Coast. Before long, the growing population of San Francisco has polluted the Bay to the point that importing and raising eastern oysters is no longer commercially viable. 1930s Crassostreagigas, in Tomales Bay, Elkhorn Slough, Drakes Estero, Bodega Lagoon, growth in the California oyster industry. 1940s Oyster farming begun in the Morro Estuary, hundreds of acres employed. 1980s ability to ship oyster larvae marked the beginning of the modern California oyster aquaculture system. Currently, California oysters are grown from seed obtained from hatcheries located in Washington, Oregon, and Hawaii. 25
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31 6. SOCIAL IMpLICAtIOnS COMMuNITY quota FuND MORRO BAY COMMERCIAL FISHERMAN S ORGANIzATION While the MBCFO was incorporated in 1972, there has been an informal commercial fisherman's organization in the community for long before that (personal communication, Morro Bay, 2013). 27
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33 7. EnvIROnMEntAL StEWARdSHIp Table 7.1 Top Species Management Measures CPS Crab Nearshore Salmon California Halibut Spot Prawn Management State/ State/ State State/Fed State/Fed State State State Oversight Fed Fed Stock Assessment Reporting Requirements Spatial Closures Catch Limits Seasonal Closures Gear Restrictions Sex/Size Number of Vessels Trap Limits quota-based Management 29
34 2013 Morro Bay Commercial Fisheries Economic Impact Report The Dungeness Crab Task Force, made up of Department of Fish and Wildlife scientists and commercial fishermen, processors and harbor officials, has enacted a trap limit program to take effect in 2013 (November). under the new program, trap limits are set according to a system of 7 tiers based on a vessel s historic landings in the fishery. The California Fish and Game Commission has been involved in the management and use of California s fish and wildlife resources since The Commission is composed of up to five members, appointed by the Governor and confirmed by the Senate. A comprehensive list of spatial, gear, and temporal, restrictions as well as limited entry programs is much more extensive than depicted in this report. Highlights are included here as examples. The RCA, established in 2003, stretches the entire West Coast of the u.s. from 30 to 100 fathoms of water. Salmon 7 Hillborn, Worm and 19 other scientists went on to state that, if managed properly, a commercial 5 Information in this section adapted from the Master plan: A guide for the development of Fishery Management plans State of California, department of Fish and game, Marine Region. Accessed 6 ( 7 Worm, Boris; Hilborn, Ray; et al. Rebuilding global Fisheries. Science (2009): Online. 30
35 8. COnCLuSIOn Landings topped 5 million pounds, the highest since Earnings at the dock for commercial fisherman have risen from a 20 year low of $1.7M in 2007 to over $6.3M in Grounfish and HMS earnings topped $716,000 in 2012, over 10% of the total. 31
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