Commercial Fishing
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 2,600 commercial fishing operations in the US harvest fish and shellfish from their natural habitats in fresh water, tidal areas, rivers and oceans. The approximately 300 target species vary by region and require differing methods, vessels and equipment for their catch. Imports currently represent 70-85% of US consumption of fish and shellfish.
Limits to Prevent Overfishing
Overfishing occurs when a stock has a harvest rate higher than the rate that produces its maximum sustainable yield.
Hazardous Weather
Fishing is a seasonal job and catch is highest during the summer and fall, as winter fishing is particularly hazardous.
Industry size & Structure
The average commercial fishing company employs 2 workers and generates nearly $2 million in annual revenue.
- There are about 2,600 companies in commercial fishing, with about 182,568 people employed as commercial harvesters, according to NOAA Fisheries.
- Companies in commercial fishing vary in size from small vessel and family operations that operate as a fishing community to supply local and regional markets to large corporate fleets that supply regional, national and export markets.
- Total annual revenue or "landings value" for commercial fishers ranges from $6-7 billion.
- The largest firms are typically integrated, moving from managing their own fishing fleet to processing and distribution. These firms include: Nippon Suisan Kaisha (USA), Shamrock Foods, and Trident Seafoods Corporation.
- Eight regional fishery management councils under NOAA oversee about 45 fishery management plans that control approximately 492 major fish stocks making up over 90% of annual revenue.
- Alaska leads US states in the value and volume of commercial landings followed by Louisiana, Virginia and Mississippi.
Industry Forecast
Commercial Fishing Industry Growth
Recent Developments
May 27, 2024 - NOAA Overfishing List at All-Time Low
- 2023 saw a record low for the number of fish stocks subject to overfishing, according to NOAA Fisheries Status of the Stocks report released in May. The annual report, an assessment of the 506 stocks and stock complexes managed by NOAA Fisheries, provides a look at the overall health of US fisheries. In 2023, US fisheries data revealed that 94% of stocks are not subject to overfishing, and 82% are not overfished. These numbers show slight improvements compared to the 2022 figures of 93% and 81%, respectively. Ongoing positive trends continued, with the number of stocks on the overfishing list decreasing by three stocks, reaching an all-time low of 21 stocks, and the number of stocks on the overfished list decreasing by one stock to 47. In 2023, summer flounder and Lane snapper were added to the overfished list, while Snohomish coho salmon was removed.
- The Alaska Department of Fish and Game’s latest forecast for the state’s 2024 commercial salmon harvest predicts a yield of nearly 136 million salmon, a significant drop from 2023 when commercial harvesters brought in just over 232 million salmon across all species, SeafoodSource reported in May. Per the department, the forecast for this year’s smaller salmon catch is primarily due to a much smaller pink salmon harvest. While pink salmon made up more than half of last year’s catch, with 155 million fish harvested, the 2024 harvest is expected to yield only 69 million pink salmon. The report also predicts 40 million sockeye (down from 52 million in 2023), 24 million chum, and three million coho in 2024. Despite last year’s rich harvest, Alaska’s seafood sector has been challenged by low prices and demand, leading to the closing of major processing plants and industry consolidation, according to SeafoodSource.
- Maine’s 2023 commercial seafood landings increased by $25 million over 2022, according to preliminary data released by the state’s Department of Marine Resources (DMR). Maine’s commercial fishermen earned approximately $611.3 million for the 204.7 million pounds of seafood landed on state docks, according to the DMR. The top three species landed were lobster (46%), menhaden or pogies (12%), and seaweed (10%). The jump in overall value was largely attributed to a strong boat price for lobster, Maine’s most valuable species in 2023. The price paid to fishermen increased from $3.97 per pound in 2022 to $4.95 per pound in 2023, netting harvesters an additional $72 million compared to the previous year, for a total value in 2023 of $464,371,720. 2023’s lobster catch declined by more than 5% from the previous year as climate change and regulations to protect whales continue to impact the industry.
- In March, an organization of US shrimp fishermen and processors in eight shrimp-producing states asked the Labor Department’s Bureau of International Labor Affairs to add shrimp from India to its 2024 List of Goods Produced by Child Labor or Forced Labor, SeafoodSource reports. The Southern Shrimp Alliance (SSA) alleged in a letter that even as India’s share of the US shrimp market has grown to nearly 40% in 2023, its shrimp industry continues to rely on manual labor rather than automation, particularly for peeling shrimp. To keep costs down, SSA claims India’s shrimp industry has become increasingly reliant on unregistered shrimp farms and peeling sheds and cited various reports and disclosures documenting both child and forced labor practices in the shrimp industry there. Previously, Taiwan, Thailand, China, Bangladesh, and Myanmar were called out for the alleged use of forced labor in their fishing or shrimp-processing sectors.
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