Something Fishy
Brian Trumbore
President/Editor, StocksandNews.com

I've had some fun the last few years talking about fish in my "Week in Review" column, including my habit of "Salmon Sunday." But whereas I used to be a big buyer of the farm raised variety at my local supermarket because 'wild' catch wasn't readily available, or far too expensive, now I'm pretty grossed out at the thought of eating most farmed fish. In fact I've been getting my supply from one of those Alaskan outfits you can find over the web?mine being conservationsalmon.com. It's not cheap, but you can see the difference in the quality between wild and farmed salmon, that's for sure.

Well, just as ethanol is the new hot topic in the alternative energy game, fish farming, or aquaculture, has also become a big issue. At the same time all manner of commissions have been deliberating the past few months, ranging from the European Union's gathering to decide limits on North Sea cod, a tuna conference in Kobe, Japan, and congressional committees ruling on such topics as fisheries management, the disappearance of various stocks and the economic hardships for coastal communities if prudent principles aren't applied, soon. The London-based Marine Stewardship Council is another group that certifies fisheries and is being called on extensively for its expertise.

Fishing is obviously big business and I saved an editorial from the Washington Post, Nov. 23, 2006, that more or less sets the tone for today's debate.

[Excerpts]

"Fish is the one major component of the American diet that is still mostly hunted, not farmed. American seafood consumption is growing, and much of the growth involves farmed fish from countries with terribly lax environmental standards. With many fisheries collapsing and others dwindling, development of responsible domestic aquaculture stands to relieve stressed wild species even as it reduces U.S. imports of unsustainably farmed seafood. What's more, certain types of aquaculture - particularly the harvesting of mollusks - can actively aid water systems that benefit from the filtration they provide. The administration's instinct to create a regulatory framework for offshore fish farming, an idea pushed in the landmark 2004 report of the U.S. Commission on Ocean Policy, is a sound one.

"But fish farming poses serious environmental problems of its own. In many fish farms, water flows freely in and out of enclosures in which huge numbers of fish are raised; fish feces and excess food end up polluting area waters. The feed for fish is often made of other fish that still have to be hunted - and it can sometimes take several pounds of extracted fish to produce a single pound of edible farmed fish. Escapes from fish farms can lead to competition between farmed species and local species. And farmed fish can concentrate diseases and parasites that then transfer to wild fish."

The National Oceanic and Atmospheric Administration (NOAA) notes that currently over 70% of the seafood Americans consume is imported, and at least 40% of those imports are farmed seafood. Properly done, domestic aquaculture can cut into this dependence on seafood imports, and provide jobs for economically distressed coastal communities at the same time.

A report from the U.S. Commission on Ocean Policy titled "An Ocean Blueprint for the 21st Century" reached some of the following conclusions.

"America is a nation intrinsically connected to and immensely reliant on the ocean. All citizens - whether they reside in the country's farmlands or mountains, in its cities or along the coast - affect and are affected by the sea. Our grocery stores and restaurants are stocked with seafood and our docks are bustling with seaborne cargo. Millions of visitors annually flock to the nation's shores, creating jobs and contributing substantially to the U.S. economy through one of the country's largest and most rapidly growing economic sectors: tourism and recreation.

"The offshore ocean area under U.S. jurisdiction is larger than its total land mass, providing a vast expanse for commerce, trade, energy and mineral resources, and a buffer for security. Born of the sea are clouds that bring life-sustaining water to our fields and aquifers, and drifting microscopic plants that generate much of the oxygen we breathe. Energy from beneath the seabed helps fuel our economy and sustain our high quality of life. The oceans host great biological diversity with vast medical potential and are a frontier for exciting exploration and effective education. The importance of our oceans, coasts, and Great Lakes cannot be overstated; they are critical to the very existence and well-being of the nation and its people. Yet, as the 21st century dawns, it is clear that these invaluable and life-sustaining assets are vulnerable to the activities of humans.

"Human ingenuity and ever-improving technologies have enabled us to exploit - and significantly alter - the ocean's bounty to meet society's escalating needs. Pollution runs off the land, degrading coastal waters and harming marine life. Many fish populations are declining and some of our ocean's most majestic creatures have nearly disappeared. Along our coasts, habitats that are essential to fish and wildlife and provide valuable services to humanity continue to suffer significant losses. Non-native species are being introduced, both intentionally and accidentally, into distant areas, often resulting in significant economic costs, risks to human health, and ecological consequences that we are only beginning to comprehend."

But while there was a well-publicized study that said by 2048 the world's fish supplies would be totally depleted, it is not too late. The conferences I mentioned above have all been hammering out reductions in the levels of catch and in some cases prudent management of our fish resources can work. Alaska is a prime example of successful programs in this regard.

It's also true, though, that without aggressive stewardship, we're in trouble. By 2004, for example, the number of adult Atlantic bluefin tuna capable of spawning had dropped about 20% from 1975's level.

Another example is anchovies, believe it or not (don't sneak them on my pizza!), where a total ban on anchovy fishing in the Bay of Biscay is often sought for six-month periods to replenish the stock. An agreement was recently reached where the number of boats fishing for them is limited to 20 from Spain and 8 from France. In the North Sea, the cod catch is being reduced 14% (20% in the waters between Scotland and Ireland), while scientists are asking for limits on the days boats can spend at sea.

Back to the "Ocean Blueprint":

"Based on estimates in 2000, ocean-related activities directly contributed more than $117 billion to America's prosperity and supported well over two million jobs. By including coastal activities, the numbers become even more impressive; more than $1 trillion, or one-tenth of the nation's gross domestic product, is generated within the relatively narrow strip of land immediately adjacent to the coast that we call the nearshore zone. [Note: This is 2000?GDP is now over $13 trillion and the other figure has gone up in kind.] When the economies throughout coastal watershed counties are considered, the contribution swells to over $4.5 trillion, (almost) half of the nation's gross domestic product, accounting for some 60 million jobs."

Trouble in Paradise

"Unfortunately, our use and enjoyment of the ocean and its resources have come with costs, and we are only now discovering the full extent of the consequences of our actions. In 2001, 23 percent of the nation's estuarine areas were considered impaired for swimming, fishing, or supporting marine species. In 2003, there were more than 18,000 days of closings and advisories at ocean and Great Lakes beaches, most due to the presence of bacteria associated with fecal contamination. Across the globe, marine toxins afflict more than 90,000 people annually and are responsible for an estimated 62 percent of all seafood- related illnesses. Harmful algal blooms appear to be occurring more frequently in our coastal waters and non-native species are increasingly invading marine ecosystems."

Interestingly, since the days of the Pilgrims, "over half of our fresh and saltwater wetlands - more than 110 million acres - have been lost."

As some of the reports on our seas and waterways are prepared over the coming months, we'll come back to this issue from time to time.

Wall Street History will return in two weeks as I'm off on a trip overseas.

Brian Trumbore