Monday, January 14, 2008PENSIVE
Business Toolbox: Global economy
Phillips Foods invests further in Thailand
Phillips Foods Inc. is pouring more than $21 million into growing its presence in Thailand, with a new seafood processing facility there that will eventually employ more than three times as many workers as its Baltimore headquarters.
The 150,000-square-foot plant -- roughly the size of a Wal-Mart -- marks a major expansion for the Baltimore company as it extends its global reach and derives more of its sales from finished food products that offer a higher profit margin than raw seafood.
The Thai plant would supply hotels, restaurants, cruise lines and grocery stores in Asia, Australia and Europe with seafood products, which could include crab soup, stuffed shrimp and crab cakes. Prepared foods for the U.S. market will continue to be processed out of its manufacturing facility in Baltimore, where Phillips employs 200. Baltimore Business Journal
Business Toolbox: Fish farming on the Gulf
Editorial: Aquaculture holds many risks
World fish consumption has grown at a furious pace in recent decades, and with good reason. A forkful of fish offers lean, tasty protein, with omega-3 acids and other endowments that might ward off cancer, heart disease and Alzheimer's.
But a hasty federal plan to allow massive fish farms in the Gulf of Mexico could wreck that ecosystem's health and devastate the livelihoods of coastal residents.
The Gulf of Mexico Fishery Management Council wants to give 10-year permits to "aquaculture" farmers to raise fish in vast offshore cages. Scheduled to decide on the idea this month, the council must slow down and retool its proposal alongside experts who fully grasp its many risks.
The Gulf Council is a regional advisory body to the federal fishery agency; if it approves the fish farm proposal, the federal government will accept it as well.
The council, which is meant to represent all stakeholders in the Gulf fishing system, was en route to approving the fish farms this summer when environmentalists and fishermen found out and called for hearings.
Last month, 250 coastal advocates packed meetings from Houston to Sarasota, Fla., to complain about this untested, hastily crafted plan.
Their testimony revealed the many loopholes in the plan to permit Gulf aquaculture a type of industrial fish farming still in its early forms in this country. Other aquaculture experiments, as well as freshwater fish farms, have already produced some disastrous outcomes. The Gulf, one of the world's most prolific wild fisheries, is also one of its most fragile and could quickly founder in the presence of ill-planned fish farms.
These farms are gigantic cages or nets in which baby fish are fed and raised under the waves. The council's proposal doesn't specify the type of structure to be used potentially exposing the Gulf to ill-designed farms that could break apart in violent weather or from normal wear and tear.
If they do, the escape of the farmed fish, even if they are the same species as those swimming wild, could be lethal. The hybrid offspring can inherit traits of the farmed fish and fail to survive in the wild.
Farmed fish can also bring with them parasites, disease and enormous amounts of unused nutrients and waste still more threats the farm proposal doesn't fully address.
All have the potential to decimate or destroy wild marine life. This month, Science magazine reported one of the worst-case scenarios:
The proliferation of salmon farms in British Columbia has coincided with the lethal spread of sea lice, killing more than 80 percent of the wild salmon that migrated near the farms. Data collected since the 1970s showed infestations only appearing in 2001, when the fish farms expanded.
An official in the U.S. fisheries agency argued that "correlation is not the same thing as demonstrating a cause and effect." But the Gulf, a major source of Texans' income and recreation, is no place to test the equation further.
There needs to be a stable and wholesome supply of fish. Worldwide consumption has grown almost 9 percent a year since 1970, and about 80 percent of the fish on Americans' plates is imported. Many wild fisheries are weak or collapsing.
Federal officials say fish farming is crucial to balance this national "seafood deficit." But gambling with the Gulf's irreplaceable resources could be costly beyond belief. The fisheries council should halt plans to decide on its proposal anytime soon.
Instead, it should carefully and methodically address the plan's many gaps, working with the environmentalists and fishermen who understand the Gulf's fragility and its incalculable value. It's better to have a "seafood deficit" than a full disappearance. Houston Chronicle
Business Toolbox: Your supply
New Gulf management system to help fish and fishermen
An innovative regulatory system has not only stopped the overfishing of red snapper in the Gulf of Mexico but made allies of commercial fishermen and environmentalists.
The system should be used as a model for other commercial species, particularly Gulf grouper.
For years the Gulf of Mexico Fishery Management Council tried vainly to protect the red snapper population while also sustaining commercial fishing for the tasty fish. Nothing worked.
Strict size limits led to discarding of undersized fish that did not survive capture. Strict harvest numbers caused fishing operations to race to catch all they could as fast as they could, regardless of weather conditions. The system put both fishermen and the snapper population at risk.
As Pensacola fishermen Donny Waters puts it, the pursuit became a "derby." And as the fishermen rushed to get their share of the permitted catch, they ended up glutting the market.
So last year, the council adopted individual fishing quotas, an approach championed by conservation group Environmental Defense and commercial fishing interests.
Under this system, a percentage of the annual catch limit is assigned to each snapper fisherman. The fishermen can buy and sell a share of their quota, which is based on past catches.
With individual fishing quotas, fishermen can pursue the fish when weather and market conditions are favorable without fear that the overall harvest limit will be reached.
The council also lowered the legal catch size to reduce waste.
Now fishing officials say dockside prices are up, discarded fish are down and the market has a more consistent supply of red snapper.
As Waters says, "This fixed a broken system." The Gulf of Mexico Fishery Management Council now should expand the approach to grouper and other highly sought species. Tampa Tribune
Tuesday, January 15, 2008
Business Toolbox: Your supply
Editorial: Feds must fund Chesapeake crab project
The loss of federal funds for a research program aimed at rejuvenating the dwindling blue crab population in the Chesapeake Bay highlighted the rare phenomenon of a reverse earmark.
Instead of unalloyed crowing about all the goodies the Maryland delegation was able to bring home for constituents this year, lawmakers acknowledged they were forced to make choices because President Bush wouldn't let them spend all they proposed.
Largely at the discretion of Sen. Barbara A. Mikulski, the senior member of the delegation and chairwoman of the subcommittee that doles out much of the bay funds, the crab program run by the Center of Marine Biotechnology at the Inner Harbor didn't make the cut.
The good news is that some discipline was applied to the earmark process that typically defies thoughtful setting of priorities. What's lamentable is that Mr. Bush's exorbitant spending on the war in Iraq has forced such a terrible squeeze on domestic programs that even the most worthwhile ventures, such as a revolving fund to help communities finance upgrades in their sewage treatment plants, didn't get the money they need.
Folks associated with the crab program, which has received nearly $13 million in federal funds through Senator Mikulski since 2002, protested mightily when they got nothing in the giant spending bill enacted by Congress shortly before Christmas.
According to The Sun's Rona Kobell, the money helped pay salaries of up to two dozen scientists at the center, as well as for researchers in Virginia, North Carolina and Mississippi. This, after the center had done groundbreaking work in raising large numbers of crabs in a hatchery and mapping migration patterns.
That research seems more valuable than the controversial Oyster Recovery Partnership, another Mikulski earmark that Ms. Kobell revealed last year was essentially a make-work program for watermen. But while federal funds for the oyster program were reduced, it will nonetheless collect nearly $2 million in the year ahead.
Plus, Morgan State University got a first-time earmark of $470,000 for an oyster research pilot program to develop "market-based" solutions for oyster recovery. There's no objective competition among such programs. It's all up to Senator Mikulski.
Meanwhile, Chesapeake Bay states are depressingly behind in upgrading their sewage treatments plants, the most important single step to reduce pollution and help all the bay's creatures. For that, they need federal help far beyond what Ms. Mikulski could deliver. Baltimore Sun
Business Toolbox: You've been warned
A highly unappetizing fish finds a market
ST. JOHN'S, N.L. - Hagfish is on the menu tonight. That might not sound so appealing, but the scary-looking critter is one of several new, experimental fisheries currently under consideration on the East Coast.
Already, the federal government has converted four exploratory fisheries into commercial harvests, allowing fishermen to catch sea urchin, toad crab and rock crab. The less-than-tasty-sounding hagfish and sea cucumber are still under consideration.
In the past, these were species fishermen tossed if they hauled them up in their nets. The sea urchins and crabs often got caught in gill nets and previously the fishermen would stomp on them to break them into pieces and easily rid them from the nets that way.
Scott Grant, a fisheries biologist in St. John's with the Marine Institute at Memorial University who has helped develop the new harvests, used to warn the fishermen: "Don't go squashing animals you're not sure of, because in the future they could be of value to you."
According to Grant, fishermen are using the new catches to help pay their mortgages, insurance and other expenses.
But just where are the markets for such unappetizing-sounding catches as toad crab and hagfish?
Packs of crab meat often say on their label that they may contain 10 per cent other species of crab, Grant said. "This is where they put the toad or rock crab and this is accepted practice."
Most of the fish caught in Newfoundland tends to go abroad, Grant said. "Toad crab and rock crab are probably not species people would boil up themselves and cook," he said.
He also believes the names of the species put people off what is otherwise a perfectly good catch. "A lot of people will tell you toad crab is just as good as snow crab."
Sea urchin has already gone through a name change -- in Newfoundland, it was originally known as whore's eggs.
As for hagfish, the creatures known for their slime are caught and shipped to Korea, where the creatures are processed into a product palatable in the Asian Far East. -- Edmonton Journal, Canada
Business Toolbox: Your supply
Worries over fish farm reach Tasmania
The Tasmanian Greens have called on Minister Llewellyn to investigate the risk of contamination of Tasmania’s wild fishery and ecosystems from diseases or parasites that might infest farmed or penned fish in light of a report in the international journal Science.
Greens Shadow Primary Industry spokesperson Kim Booth said that he had been contacted by the ‘Pure Salmon’ campaign group and alerted to the findings of the report which found that in British Columbia, Canada, wild salmon populations are collapsing after being infested with sea lice that have grown on penned fish, however there were wider implications for wild fish and the net pen aquaculture industry.
“It is alarming to see that overseas it can now be proven that net pen aquaculture is impacting on wild fish populations and I believe it is imperative that Minister Llewellyn investigate whether there are ramifications for the Tasmanian wild fishery, ecosystems, and also the aquaculture industry.
“It should be noted that Professor Ray Hilborn, a fisheries biologist at the University of Washington says the following on the situation, “This paper is really about a lot more than salmon. It is about the impacts of net pen aquaculture on wild fish. This is the first study where we can evaluate these interactions and it certainly raises serious concerns about proposed aquaculture for other species such as cod, halibut and sablefish.”
“Although these same species may not occur in Tasmanian waters it is critical that the health of our wild fishery and ecosystems is paramount and that also the local aquaculture industry is made aware of what scenarios are playing out overseas with regard to their industry and make sure they are forewarned of any steps they made need to take to safeguard both their own stocks and the wild stocks that live in the waters around their farms.” ABC Online
Wednesday, January 16, 2008
Business Toolbox: Staying legal
Europe's appetite for seafood propels illegal trade
LONDON Walking at the Brixton market among the parrotfish, doctorfish and butterfish, Effa Edusie is surrounded by pieces of her childhood in Ghana. Caught the day before far off the coast of West Africa, they have been air-freighted to London for dinner.
Ms. Edusie’s relatives used to be fishermen. But no more. These fish are no longer caught by Africans.
On the underside of the waterlogged brown cardboard box that holds the snapper is the improbable red logo of the China National Fisheries Corporation, one of the largest suppliers of West African fish to Europe. Europe’s dinner tables are increasingly supplied by global fishing fleets, which are depleting the world’s oceans to feed the ravenous consumers who have become the most effective predators of fish.
Fish is now the most traded animal commodity on the planet, with about 100 million tons of wild and farmed fish sold each year. Europe has suddenly become the world’s largest market for fish, worth more than 14 billion euros, or about $22 billion a year. Europe’s appetite has grown as its native fish stocks have shrunk so that Europe now needs to import 60 percent of fish sold in the region, according to the European Union.
In Europe, the imbalance between supply and demand has led to a thriving illegal trade. Some 50 percent of the fish sold in the European Union originates in developing nations, and much of it is laundered like contraband, caught and shipped illegally beyond the limits of government quotas or treaties. The smuggling operation is well financed and sophisticated, carried out by large-scale mechanized fishing fleets able to sweep up more fish than ever, chasing threatened stocks from ocean to ocean.
The European Commission estimates that more than 1.1 billion euros in illegal seafood, or $1.6 billion worth, enters Europe each year. The World Wide Fund for Nature contends that up to half the fish sold in Europe are illegally caught or imported. While some of the so-called “pirate fishing” is carried out by non-Western vessels far afield, European ships are also guilty, some of them operating close to home.
An estimated 40 percent of cod caught in the Baltic Sea are illegal, said Mireille Thom, a spokeswoman for Joe Borg, the European Union’s commissioner of fisheries and maritime affairs. New York Times
Business Toolbox: Your customers’ health
More evidence: Fish can ward off Alzheimer's
Studies on rodents and people suggest that a diet rich in DHA, an omega-3 fatty acid found in fish oil, helps delay or prevent Alzheimer's disease. And University of California, Los Angeles, researchers have come up with a possible explanation.
A team led by Greg Cole, professor of neurology at UCLA's David Geffen School of Medicine, has concluded that the DHA protection has to do with a key brain protein called LR11, which helps destroy toxic plaques that lead to Alzheimer's. Scientists know the brains of deceased Alzheimer's patients contain lower-than-normal levels of LR11 and have wondered whether increasing LR11 levels could help delay or prevent the disease.
So Dr. Cole's team added DHA to the diets of rodents that had been genetically altered so that they would develop an Alzheimer's-like disease. The DHA, indeed, increased brain levels of LR11. The scientists also exposed human brain cells to DHA in Petri dishes and found that it increased the amount of the protective protein inside the cells.
Increasing consumption of DHA, which has been shown to decrease the risk of cardiovascular disease, also may reduce the risk for Alzheimer's, says Dr. Cole, a neuroscientist. Dallas Morning News
Business Toolbox: Your supply line
Immigration laws hinder seafood processors
For more than a century, the S.E.W. Friel company has been canning corn in Queen Anne's County. And for the past several years, the Eastern Shore's only remaining cannery has hired Mexicans to work in the plant during the peak months of July and August.
But this year, it looks like Friel won't get the 70 or so seasonal workers it needs. The national cap for migrants to temporarily work in this country under a special visa program was filled before Friel was permitted to apply under the program's rules. And an attempt by Sen. Barbara A. Mikulski to pass legislation to help such businesses was unsuccessful.
"We've been around for over 100 years, and this is the one time in the history of the company that we can honestly say we've reached out and asked for help from Congress," said Jay Friel III. "These seasonal jobs are needed to keep our full-time staff employed."
Though most of the Shore's crab-picking houses have been notified they will get the workers they sought, some companies are in the same boat as Friel. The problem is national, but its impact is particularly strong on the Eastern Shore, where the seasonal nature of many businesses complicates hiring.
Phillips Seafood Restaurants in Ocean City won't get the 120 workers it says it needs to help cook and clean. Other places, including Chesapeake Treasures in Salisbury, which harvests and sells crabmeat, are still in limbo. They have not received word from the federal government about whether their foreign workers will be allowed to return for the season.
"If this program goes away, it will devastate the crab industry in the Chesapeake Bay," said Chesapeake Treasures owner Johnny Shockley. "The work force to process the meat is not there, and it never will be there in this country again."
The visa program, called H2B, has been a lifeline for many seasonal businesses. It lets thousands of workers into the United States on temporary visas to take seasonal jobs that are hard to fill, such as crab-picking and landscaping. The migrants work for the season, and then return home.
The problem for Maryland businesses is that the program has a limit of 66,000 workers nationally -- a limit often reached before many of the state's companies are allowed to apply. This year, the quota was filled by Jan. 2. That shut out Friel; he needs his workers in July, and employers can't apply until 120 days before the work would start.
The crab processors, led by J.M. Clayton Co. owner Jack Brooks, have been lobbying Capitol Hill for a solution -- an expansion of the cap or an exception allowing migrants who have worked before to return.
The processors found an ally in Mikulski, a Maryland Democrat, who has twice been able to push through stopgap legislation allowing former workers to return for another year. Those exceptions, Brooks said, saved the crab-picking industry in 2005 and 2006.
Mikulski's 2005 bill also helped Maryland businesses by earmarking half of the 66,000 visas to businesses needing workers in the winter and the rest to those needing workers in the summer. That likely helped the Shore's warm-weather businesses. Brooks said most of the crab processors got approvals this year before the cap was filled. Baltimore Sun
Business Toolbox: Going green
Selling fish with environmental awareness on the side
LONDON The restaurateur Tom Aikens is opening a sustainable fish and chips restaurant this month in London’s trendy South Kensington. Diners at Tom’s Place will be able to fulfill their consumer desires and be environmentally correct, too, but at a price.
His travails to guarantee a fish supply for his restaurant show how hard it is to find fish that is sustainably and legally caught.
Mr. Aikens spent most of last year learning about fish and developing recipes around fish species that he knows are not overexploited.
“I wanted to change the tradition where you order turbot or salmon from a dealer at Billingsgate and know little about its origins,” he said in a recent interview at another upscale restaurant he owns, called Tom Aikens.
“With meat, I pat the cows, see the farm, meet the farmer. With fish, it takes an incredible amount of time and effort.”
He has consulted half a dozen environmental groups to decide “which fish I shouldn’t be using” and to make sure the rest are sustainably fished. He will get most of his fish from 30 British fishermen whose practices he has studied.
Part of his mission is “to broaden fish tastes outside of cod.” His fish and chips will be made from cod imported from countries where it is not over-fished as well as from sustainable species like pollack, gunard, rays and sole.
He said he hoped to “raise awareness” among the top chefs in London to help bring about self-imposed moratoriums on severely depleted stocks like North Sea cod or Mediterranean bluefin tuna. A portion of the cheapest fish and chips at Tom’s Place, ray for takeaway, will run about £10, or $20.
The United Nations Food and Agriculture Organization has developed a coding system that explains where a meal was caught. That code often appears on fresh and frozen fish sold in the United States and Europe, but deciphering it requires specialized knowledge (FAO Zone 34 is Ghana, for example).
To make things simpler, a few private nonprofit groups, like the Marine Stewardship Council and the Seafood Choices Alliance, have programs to certify that fish is sustainable, but participation is low and almost all of it involves large commercial retailers.
For that reason, it is easiest for most consumers to get certified sustainable fish in the frozen food section of stores like Wal-Mart and Carrefour, which sell Stewardship Council-approved products.
Quick, a fast food chain based in Belgium, offers a fish sandwich approved by the council. But these programs have not extended to fish markets.
“If you’re having a piler in Spain, it’s probably coming from West Africa and may be illegal,” said Rupert Howes of the Marine Stewardship Council. “If it’s cod from the Baltic, there are huge problems with illegal fishing.”
Diners at Tom’s Place will get to eat their fish in good conscience, but not without a dose of global reality: Cards will ask customers for donations to the Stewardship Council and ask, “Where is your fish coming from?” -- New York Times
Thursday, January 17, 2008
Business Toolbox: Your suppliers
Asian seafood giants looking to buy in U.S.
Seafood companies in Korea, Singapore, Hong Kong and Japan may look at acquiring food businesses in the US, according to sector sources interviewed by mergermarket.
In light of news that California-based Del Monte Foods has retained Merrill Lynch to sell its StarKist canned tuna business, as reported by this news service, companies interviewed in Korea, Singapore and Hong Kong said they could be interested in StarKist or other food expansion opportunities in the US.
Dongwon F&B Co, the listed Korean food products provider, could consider canned food buys in the US, a company source said. Dongwon F&B produces and distributes frozen, chilled or room temperature foods. It reported sales of USD 732.6m in 2006.
The estimated deal size for the StarKist business would likely be north of the $181 million market cap of Dongwon F&B, but the Korean company is under the umbrella of Dongwon Group, a large conglomerate. The company source at Dongwon F&B said it could handle a $300 million deal. Financial Times, UK
Business Toolbox: Law and order, international edition
Sell rotten fish, get slapped with a fine
A food giant has been fined £19,500 ($38,294) for selling rotten fish at a supermarket in Malvern.
Morrisons admitted two charges of selling prejudiced food on its fish counter at a hearing at Worcester Magistrates Court
Worcestershire County Council's trading standards team was alerted to an issue with the fish being sold by the UK's fourth largest supermarket chain at its store in Roman Way when a customer found worms in cod fillets bought to feed elderly people at a rest home in September 2006.
Heather Williamson, prosecuting on behalf of Trading Standards, said an investigation was launched and officers found shortcomings into how Morrisons ensures its fish stock is fresh on the counter.
She said the store was unable to offer information on how long fish had been in the store when trading standards took a cod fillet sample in November 2006.
"They couldn't give the boxes with the catch date and use by date because they were thrown away as the fish left the box," she said.
A sample sent off for analysis showed the total volatile nitrogen (TVN) content - the level of bacteria in food - was 99mg in 100g. The court heard anything above 25mg is classified as rotten, while 100mg is considered significantly dangerous of causing food poisoning, although it does depend on an individuals' tolerance.
Miss Williamson said Morrisons was shown the results and contacted for more information on how it handles fresh fish. -- Worcester News, UK
Business Toolbox: Your customers' health
Fish oil may not be a panacea for all
In a systematic review of trials where patients with implantable cardioverter defibrillators used fish oil supplements, Dr. David Jenkins and Dr. Paul Dorian of the University of Toronto found significant differences among the trials, indicating fish oil may be beneficial to some patients while having a negative impact on others.
“Fish oils can have complex and varied effects on the heart,” says Jenkins, a professor of medicine who runs the Clinical Nutrition and Risk Factor Modification Centre at St. Michael’s Hospital.
“These effects include blocking cardiac ion channels, reducing fibrosis in response to mechanical stress, decreasing blood coagulation, and possibly altering immune function.”
There is evidence from multiple large-scale population (epidemiologic) studies and randomized controlled trials that intake of recommended amounts of DHA and EPA in the form of dietary fish or fish oil supplements can reduce the risk of death, heart attack and dangerous abnormal heart rhythms in people with known cardiovascular disease, as well as potentially slow hardening of the arteries and lower blood pressure slightly.
But the evidence also shows high doses can have harmful effects, such as an increased risk of bleeding. Although benefits are proposed for alpha-linolenic acid, scientific evidence is less compelling and beneficial effects may be less pronounced.
“Fish oils have promise as beneficial in cardiovascular disease but our work highlights our gaps in understanding and the need for more research,” adds Dorian, a cardiologist at St. Michael’s Hospital and U of T Professor of Medicine University of Toronto.
The review, which appeared in the January 15 edition of the Canadian Medical Association Journal, also indicates that further research and large randomized controlled trials are needed before long-chain omega-3 fatty acids are used in patients with heart failure and angina. Scientist Live
Business Toolbox: Your environment
Shrimp farming would devastate African environment
LAGOS, Nigeria As important as shrimp is to our menu, its production is very devastating to the environment. This much has been proved in some developing countries of Asia and Latin America where ponds are used to cultivate shrimp, with all the chemicals involved, which are usually injurious to the soil.
The shrimp production methods employed in these developing countries that has generated public outcry is about to start here in Nigeria. Spearheaded by Sulalanka, a Srilankan company, Asians are making frantic efforts to start this shrimp business in Nigeria. This will spell disaster to the nation and soon there may be no land for conventional food cultivation as ponds would be dug, used, abandoned and new ones dug and the process will go on.
The Niger Delta environment which has been fragmented, deforested and degraded by the oil and gas exploration and production and other related industrial activities, recently witnessed a greatest threat to its existence in the form of the introduction of industrial shrimp farming with presidential support from the Obasanjo.
The president ordered the ministries of Agriculture and Environment to give special encouragement to industrial shrimp farmers specially those willing to export shrimp to the United States of America.
After the first attempt was halted, the United States Agency for International Development (USAID) and the Shell Petroleum Development Company (SPDC) started another attempt to start industrial shrimp farming. They also stopped on account of pressure by Non-governmental Organisations and Community Based Organisations in Nigeria.
Having failed in the Niger Delta region the Asians now prefer the southeast and southwest regions of Nigeria, meaning that they would construct pounds to cultivate it. AllAfrica, by Akie Hart and Evang. I. H. Peppl of the Nigeria shrimp working group, which is a broad-based coalition to tackle industrial shrimp aquaculture in Nigeria
Business Toolbox: Keeping legal
Fish fraud: Guilty
WASHINGTON David S. Wong, a resident of Elk Grove Village, Ill., pleaded guilty in U.S. District Court in Los Angeles to violating the Lacey Act for purchasing and re-selling a specific species of fish in the catfish family when he reasonably should have known that the fish had been imported illegally, the Justice Department announced.
Wong admitted to purchasing and re-selling frozen fillets of the fish Pangasius hypophthalmus, a member of the catfish family, marketed by the approved trade names of “swai” or “tra” but referred to in some seafood markets as “basa.” The fish that Wong purchased was labeled as “sole” and imported without the payment of the required anti-dumping duty of 63.88 percent.
According to the plea agreement filed in this case, between November 2005 and May 2006, Wong purchase, on behalf of his employer, over $197,000 worth of frozen fish fillets from Virginia Star Seafood Corporation, in a series of six transactions.
In each of Wong’s transactions, the fish ordered and received was Pangasius hypophthalmus but it was labeled as sole. Wong knew that the fish he purchased was subject to an import duty and that there is no such anti-dumping duty imposed on sole.
True World Food Chicago LLC, a subsidiary of Wong’s then-employer, True World Food, Inc., entered a guilty plea to a single Lacey Act violation on Dec. 10, 2007. Justice Department
Business Toolbox: Your environment
Overfishing killing fishermen
CABRAS, Italy Seven hours after setting out into the inky 3 a.m. blackness, the Crazy Horse's two-man crew pulls back into port with the fruits of their morning's labor: just a few small buckets of fish, worth maybe $60.
"That's the average now," sighs Gianni Pisanu, whose boat is docked nearby, as he helps his neighbors tie up. "The sea is impoverished now."
For more than 50 years, the nearly two dozen countries bordering the Mediterranean have struggled to jointly manage the shared bounty of the sea, whose uniqueness makes managing this crisis both unusually difficult and extremely important.
But their efforts have stalled often amid the conflicting political and economic interests in this diverse region, which contains everything from the heavily subsidized Italian fleet -- one of the biggest in the sea with more than 14,000 boats -- to thousands of subsistence fishermen in Morocco.
The benefits of preservation are manifold, however, in this marine ecosystem, whose share of global biodiversity is eight times greater than its size.
Now, that diversity is threatened. According to the United Nations, 85 percent of species in the sea are already being fished at or above sustainable levels. Some are near commercial extinction.
Other species, like turtles, dolphins, and sharks, often caught accidentally in fishermen's nets, are also being driven toward extinction. A recent report by the World Conservation Union, which monitors endangered species, found that 42 percent of the sea's 71 shark and ray species are threatened or endangered -- a global high. Fishing is the most serious threat, the report found.
As his friends untangle the last fish from their nets, Mr. Pisanu watches a large vessel with a giant metal apparatus on its stern chug out to sea. "A bottom trawler," he explains, describing a kind of boat that arrived here two decades ago, dragging weighted nets. "Before trawling, the catches would have been 80 percent bigger."
Twice as many fish are caught in the Mediterranean today than in 1950. The Mediterranean alone cannot provide enough fish to meet local needs. Southern Europeans eat significantly more fish than the global average of 35 pounds per person annually.
Spaniards consume 90 pounds a year, while Italians, French, and Greeks, eat almost 45 pounds -- much of which is imported. Though catches are down from their mid-1980s peak, the fact that fishermen expend greater effort to catch fewer fish indicates that stocks are overexploited. Trawling has been identified as the most environmentally destructive type of fishing here.
"The fundamental problem is that the sea is not managed with the objective of conservation, or rational management of the resource, but mostly in the short-term interest of those few fishermen who take as much as they can," says Alessandro Gianni, a fisheries campaigner with Greenpeace, whom Pisanu contacted for help. "The more economically profitable ... [push] out the smaller artisanal fishermen."
Gianni Usai, regional director of Legapesca, the largest local fisherman's cooperative in Cabras, was one of the first locals to recognize that there was a problem. Twenty years ago, he began to notice that lobster catches were declining, from 10 tons a year in the mid-1980s to between 3 and 4 tons in the early 1990s. Today, local fishermen catch less than half a ton. But for years, his warnings were ignored.
"When there's a fire in the woods ... everyone is upset and goes and stops it. In the sea, it's like there's been a fire forever, but no one does a thing," says Mr. Usai.
One solution to overfishing that is increasingly being considered by environmental groups and even fishing groups like Legapesca is the creation of marine parks. Those would ban or severely limit fishing. A pilot project near Cabras to create a protected area for lobsters to breed has had some success, says Usai.
But while there's general agreement that Mediterranean fishing needs to be curtailed, attempts to do so have sputtered in the region's unique political and biological environment. In part because of the sea's rich biodiversity, the vast majority of fishing here does not target specific species. With the exception of a few boats that focus on high-value fish, like bluefin tuna and swordfish, most fishermen scoop up whatever their nets happen to catch. This makes conservation techniques used elsewhere, such as catch quotas, largely ineffective.
And with 21 countries, plus the Palestinian territories, bordering the sea and sharing its resources, political agreements can be hard to arrive at.
"The particular thing about the Mediterranean is that most of the waters are international waters," says Susanna St. Trappa, a fisheries expert with World Wildlife Fund (WWF). "Every solution must come with consensus and to reach consensus with 21 countries is a very big task."
The General Fisheries Commission for the Mediterranean, established under the United Nations, serves as a forum for cooperation on fisheries issues. Environmental groups credit it with becoming more aggressive in recent years about brokering agreements -- such as a 2005 ban on bottom trawling in waters deeper than 3,000 feet. In addition, the European Union now bans the practice close to shore in waters less than 150 feet deep.
And there is a general consensus about what the root of the problem is: overcapacity. Although there are fierce debates about how to measure it, the EU estimates that its fishing capacity in all its waters, including the Mediterranean, is 40 percent higher than is sustainable.
But efforts to reduce capacity have failed, or in some cases backfired. On the northern shore -- there's little data from the south -- the total number of European boats fishing the Mediterranean has decreased. But environmental groups say that EU subsidies intended to help fishermen modernize their fleet enabled many to upgrade from small boats like Pisanu's 33-foot Nina, which he inherited from his father, to bigger, more environmentally damaging vessels. In Cabras, for example, local fishing organizations say subsidies helped fishermen purchase many of the devastatingly efficient trawlers based there.
In Italy -- which has the largest fishing industry in the Mediterranean -- trawlers make up only a small percentage of the fishing fleet, but account for more than half of catches. But bottom trawling churns up the sea floor, destroying vital habitat for many bottom-dwelling species, and is among the most wasteful forms of fishing. Although estimates vary widely, up to 70 percent of the fish caught by bottom trawlers are thrown back because they are the wrong type.
Legally, trawlers shouldn't be fishing the same waters as Pisanu. Artisanal fishermen still own and operate two-thirds of the region's boats but are rapidly being outfished by bigger, more technologically advanced boats.
But Usai says enforcement is difficult because few fishermen, even environmentally conscious ones, are completely compliant with current laws. It's hard, he admits, to ask authorities to enforce regulations only against big boats.
But if nothing changes, small fishermen like Pisanu say their life on the sea is threatened. "It's my passion," he says. "But I can't really say if I'll be fishing in 20 years." -- Christian Science Monitor
Business Toolbox: Another explanation
Mediterranean shrimp victim of weather?
Europeans are so hungry for the red shrimp (Aristeus antennatus) that it can fetch as much as €200 a kilogram ($294) -- making its fishery one of the most valuable in the Mediterranean Sea.
When the deep-sea shrimp are plentiful, trawlers sweep up thousands of metric tons of them in a season. But sometimes, adult shrimp seem to disappear for years from the most productive fishing grounds before eventually bouncing back. Now researchers think they know why: pulses of muddy submarine currents that may be influencing deep-sea fisheries around the world.
The study was done in the Gulf of Lions, off the coast of Spain, which is one of the richest sources of red shrimp in the Mediterranean Sea. Two years ago, a team from the Marine Sciences Institute in Barcelona and other institutions reported that submarine canyons in the Gulf of Lions occasionally funnel large currents of water and sediment into the deep sea.
Although such currents, known as sediment gravity flows, have been known for a long time, the mechanism was new. Each winter, the researchers determined, surface waters are chilled by winds and become dense enough to cascade into the deep. During particularly cold winters, the water flows as fast as 80 centimeters a second and carries enormous amounts of sediment from the canyons.
Joan Company, a deep-sea ecologist at the Marine Sciences Institute, wondered about the current's effect on deep-sea life. He, Pere Puig, and others at the institute compiled nearly 30 years of data on shrimp catches and compared them with observations of water and sediment.
The team reports online today in PLoS ONE that each episode of deep-water cascading through the canyon was followed by a statistically significant drop in the amount of shrimp brought back by the trawlers, presumably because the crustaceans are swept away and killed by the sediment.
Just 2 months after a major cascade in February 1999, for example, the shrimp fishery collapsed. The good news is that the populations recover within 3 to 5 years after the flood. One reason could be the additional nutrients that arrive with the sediment.
Fisheries biologist Daniel Pauly of the University of British Columbia in Vancouver, Canada, is convinced that the flows can have an impact. "It's a neat mechanism," he says. But he is skeptical about scientists' ability to change fishing patterns in the Mediterranean or elsewhere in the world, where the data are not nearly as good as in the Gulf of Lions. "There is no fishery that would take such advice for its quota, because it would be highly uncertain," he says. Science Daily
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