Virginia’s Commercial Fishing Industryweb.vims.edu/library/Kirkley/Kirkley2.pdfVirginia™s Commercial Fishing Industry: ... fishing crew and manufacturers of process-ing equipment,

Its Economic Performance and Contributions

Virginia's CommercialFishing Industry:

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Funding for this report was provided by. . .

� Virginia Institute of Marine Science

� Virginia Polytechnic Institute and State University,Commercial Fisheries and Shellfish TechnologiesProgram (C/FAST)

� Virginia Sea Grant Marine Advisory Program

� Virginia Marine Resources Commission, CommercialFisheries Improvement Fund

� Virginia Marine Products Board

� Virginia Seafood Council

Editor and Designer: Susan Christine Waters

The photography and illustrations in Virginia�s Commercial

Fishing Industry: Its Economic Performance and Contributions are

copyrighted. Permission to use artwork must be obtained fromthe originators of the artwork. Artwork credits: cover, Virginia

Marine Products Board; 2, Susan Christine Waters, Virginia Sea

Grant, Virginia Institute of Marine Science (VIMS); 4, 31, 52,William DuPaul, Director, Marine Advisory Services, VIMS; 7,

9,19, 21, 25, 29,33, 36, Ellen Smoller, Virginia Marine Resources

Commission; 10, 14, 42, 48, 51, 58, Bill Jenkins, VIMS; 16,Zapata Protein; 30, Robert Fisher, Virginia Sea Grant, VIMS; 35,

VIMS archives; 38 Alice Jane Lippson. Food photography on

page 58 was made possible by the Rivers Inn, Gloucester Point,Virginia. Illustrations: VIMS archives.

Virginia Institute of Marine Science, College of William & Mary

Virginia Sea Grant Program

Special Report in Applied Marine Science and Ocean Engineer-

ing No. 337. Virginia Sea Grant Advisory __.

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Virginia's Commercial Fishing Industry:Its Economic Performance and Contributions

ByJames Kirkley

Virginia Institute of Marine ScienceSchool of Marine Science

College of William & Mary1997

http://www.vims.edu

http://www.wm.edu

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Table of ContentsVirginia�s Commercial Fishing Industry:

Its Economic Performance

And Contributions..................................... 5

Virginia�s Commercial Fisheries:

The Wild Fisheries And Species ..................... 11

Commercial Aquaculture ................................. 34

The Industry, The People, And

The Communities .................................... 37

Virginia Seafood Processing

And Wholesaling ..................................... 49

International Seafood Trade

And Virginia ............................................ 53

The Economic Importance Of Virginia�s

Fishing Industry ...................................... 59

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Virginia�s CommercialFishing Industry:

Its Economic Performanceand Contributions

hen the first English colonies were established in Virginia, the bounty of theChesapeake region provided some subsistence and commercial opportunities. It wasnot until after the Revolutionary War, with the enactment of the Potomac River Compactof 1785, that commercial fishing became an important industry in Virginia. TheCompact created the stability necessary for industrial expansion by allowing Virginiafishermen to freely fish all portions of the Potomac River, which was owned by Mary-land to the Virginia shoreline, in exchange for free entry of Maryland ships throughthe Virginia Capes.

By the early 1800s, Virginia fishermen were shipping fishery products around theworld but were primarily dependent on domestic markets in Virginia and Maryland, theNortheast, and as far west as California. Sturgeon, salted herring, oysters, rockfish,shad, croaker, trout, and blue crabs were the major species or products during this timeperiod. Fresh fish and shellfish were mostly locally consumed since methods ofpreservation were inadequate to prevent spoilage.

The commercial fishing industry through most of the 1800s was relatively unimpor-tant in terms of economic importance and contributions to the state�s economy. Thecommercial fisheries were not substantially developed until the mid 1800s and it wasprimarily for oysters (Quittmeyer 1957). By 1840, the value of products of all Virginiafisheries, including whalebone, but not oysters, was only $4,000.

By 1900, the animal that helped support the early colonization of Virginia had allbut disappeared. Sturgeon had become nearly extinct and replaced by more abundantspecies of finfish and shellfish. In the 1928 Report of the Commission to Investigate andSurvey The Seafood Industry of Virginia, the primary species of commercial importancewere listed as oysters, shad, menhaden, blue crabs, hard clams, and bay scallops. The

For four months of the year, February, March, April and

May, there are plenty of sturgeon; and also in the same

months of herrings, some of the ordinary bigness as ours in

England, but the most part far greater, of eighteen, twenty

inches, and some two feet in length and better; both these

kings of fish in these months are most plentiful and in best

season which we found to be most delicate and pleasant

meat.

There are also trouts, porpoises, rays, oldwives,

mullets, plaice, and very many other sorts of excellent good

fish, which we have taken and eaten.�Thomas Hariot

W

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three most valuable species between 1900 and 1927 were oysters, white shad, andblue crabs.

Oyster and finfish contributed substantially to the building of many coastal cities,towns, and communities. The 1928 Report of the Commission to Investigate and Survey TheSeafood Industry of Virginia stated that there were approximately 100,000 persons thatsecured their livelihood, or a part of their livelihood, in some way through commercialfisheries. More than 30,000 individuals were entirely dependent upon the seafoodindustry, and the other two-thirds, dependent to a lesser degree.

These important commercial fisheries, however, were not without problems in theearly 1900s. Between 1901 and 1925, landings of oysters in Virginia declined from6,067,669 bushels to 4,356,416 bushels. The number of individuals earning a livingfrom tonging for oysters declined from 14,000 to 5,000 individuals, or 64 percentbetween 1903 and 1927. In contrast, shad landings remained nearly constant between1901 and 1925. In 1901, shad landings were 6,927,212 pounds; landings were6,103,704 pounds in 1925. The value of shad landings increased by 275 percent duringthe same period. The landings and landed value of blue crabs also experienced asubstantial increase between 1901 and 1925. In 1901, landings and landed value forblue crabs were 6,113,277 pounds and $52,863. In 1925, landings and landed valuehad increased to 18,531,994 pounds and $523,733.

By the late 1930s, Virginia seafood products were being shipped all over the UnitedStates as well as being exported to numerous foreign countries. Because of perishabilityproblems, Virginia could not easily expand its limited foreign market. Yet, Virginia wasshipping fresh and frozen products, on a regular basis, to Boston, Massachusetts;Omaha and Lincoln, Nebraska; Birmingham, Alabama; Jacksonville, Florida; Minne-apolis, Minnesota; and places in between. Most of the demand for Virginia seafood wasfor oysters, and to a lesser extent, for croaker. Approximately 75 percent of Virginia�sseafood production was shipped out of Virginia.

Between 1935 and 1948, the fifteen top commercial species were croaker, sea trout,shad, porgy, alewife or river herring, flounder, rockfish (striped bass), sea bass, butter-fish, spot, Boston mackerel, catfish, oysters, blue crabs, and hard clams. Croaker was themost important in terms of landed value of finfish, and oysters dominated the landedvalue of shellfish. In 1935 and 1946, croaker ranked first in landed value and pound-age. In 1948, alewife had the greatest landings, but croaker maintained its leadershiprelative to the landed value of finfish. Throughout the entire period and relative to allspecies of finfish and shellfish, oysters had the highest landed value.

The number of individuals earning

a living from tonging for oysters

declined from 14,000 to 5,000

individuals, or 64 percent

between 1903 and 1927.

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After World War II, the commercialfisheries, although only marginallycontributing to the economy of Virginia,contributed substantially to coastaleconomies. In 1950, the total value ofagricultural production was 21 times thelanded value of all fish, except menha-den, in Virginia. When we examine thecounty and city level, however, the picturechanges. Out of 27 Virginia counties orcities with some coastal access or linkages,12 counties or cities had landed values in

excess of 25 percent of the value ofagricultural production. The counties orcities with landed values in excess of$400,000 were Accomack, Elizabeth City,Gloucester, Lancaster, Mathews,Middlesex, Norfolk, Northampton,Northumberland, Westmoreland, andYork.

Virginia fisheries also did not contrib-ute much to employment opportunities atthe state level. In 1950, the number of

fishermen employed accounted for 0.84percent of total employment in Virginia.At the county and city level, particularlyamong coastal communities, commercialfishing was often a major source ofemployment. In counties likeNorthumberland, the number of fisher-men accounted for more than 30 percentof all employment.

To assess the impacts solely by thenumber of people employed in harvesting

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and processing is very misleading. TheVirginia seafood industry contributes moreto employment than just the number offishermen and employees of processingand wholesaling businesses. Boat design,construction, sales and repair, as well asgear sales and repair are part of theeconomic picture. Included too are truckdrivers, owners and sales clerks at whole-sale and retail outlets, restaurant ownersand workers, lawyers, doctors, collegeprofessors, and fishery scientists andmanagers. Companies which benefit rangefrom stores which sell groceries to thefishing crew and manufacturers of process-ing equipment, to firms which produceand sell ice and ones which sell fuel.

Even though the industry has a demon-strated value, resource managers andlegislators were and are concerned aboutthe industry. Almost half a century ago, in1951, the Virginia Marine AdvisoryLegislative Council responded to concernsabout decreasing catches and decliningeconomic opportunities in coastal commu-nities. The report issued by the Council,The Seafood Statutes and the Rehabilitation ofthe Seafood Industry, was presented to theCommonwealth�s General Assembly. Ofparticular concern were the declines inoysters, crabs, and shad. It was also notedthat many of the important finfish speciessuch as rockfish, seatrout, croaker, and spotwere subject to violent fluctuations inresource abundance and availability.Presently, there is no commercial shadfishery. The rockfish catch, while allowedto increase in recent years, is restricted.

Seatrout is being increasingly regulatedsince resource levels are declining. Theblue crab resource appears to be in a stateof decline, and scientists are concernedabout resource levels. On the other hand,croaker appears to be highly abundant.

It is important to remember that eventhough natural stocks are imposing limitson harvest levels, American consumers areincreasingly demanding more healthyprotein which presently means fish.Between 1909 and 1994, consumersincreased consumption from elevenpounds per individual to more than 15.2pounds per individual. A substantialamount of the increase occurred between1970 and 1994 when per capita consump-tion increased from 11.8 to 15.2 poundsper person. In addition, the U.S. popula-tion increased from 202 to 259 millionbetween 1970 and 1994. In contrast, theper capita consumption of red meat, whilebeing much higher than the consumptionof fish, decreased from 131.7 to 114.1pounds per person between 1970 and1994. On the other hand, per capitaconsumption of poultry products nearlydoubled; poultry demand increased from34 to slightly over 60 pounds per personbetween 1970 and 1994.

The American appetite for seafood hasfar outstripped the supply of domesticseafood. In 1976, American consumersdemanded 7.4 billion pounds of seafood.The U.S. fishing industry could onlysupply 37.5 percent of U.S. demand; 62.5percent of the demand was satisfied with

imports. In 1994, U.S. residents con-sumed 13.7 billion pounds of seafood,and imports accounted for 42.1 percentof the domestic supply available fordomestic consumption. Most of theincrease in demand occurred between1988 and 1990 when consumptionincreased from 10 billion pounds to over13 billion pounds. While the growingappetite for seafood has been partlysatisfied by increased domestic produc-tion and increased volume of imports,aquaculture has also helped satisfyconsumer demand. In 1983, reportedU.S. aquaculture products contributedapproximately 308 million pounds tototal domestic supply; in 1993, aquacul-ture production exceeded 700 millionpounds. These aquaculture statisticspertain only to catfish, salmon, trout,and selected shellfish. Species likerockfish and tilapia are not included;reported U.S. production of tilapiaexceeded 16 million pounds in 1994.

The Commonwealth of Virginia hassubstantial economic opportunities infisheries even though resource levels ofmany species are fully exploited or over-exploited. Value-added production andincreased marketing can all contribute toenhancing the value of Virginia seafood.Export opportunities are expanding forspecies landed in Virginia. The Asianmarket appears to offer considerableexpansion opportunities. Aquacultureoffers substantial opportunities forsatisfying a growing world demand forseafood.

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Out of concerns about the welfareof the industry and resource levels, andin recognition of the need to improveresource utilization, the VirginiaMarine Resources Commission and theCommercial Fishing Advisory Boardcommissioned this study to determinethe economic importance and contri-butions of the commercial fishingindustry of Virginia. This studypresents an examination of the eco-nomic role, contributions, and impactsof commercial fishing relative to theeconomies of the state and coastalcommunities of Virginia.

The primary focus is on sales orrevenue, output or production, em-ployment, and income generated bythe industry. A simple summary of thenumbers, however, can in no way dojustice to demonstrating just howimportant the industry is. Lest weforget, the commercial fishing industryis an industry of opportunities. Theindustry is sometimes good andsometimes not so good, but when theresource is appropriately nurtured,men and women of all backgroundsand ages can earn a good livingthrough hard work. It is an industrythat can last forever if the resource andthe marine environment are reasonablymaintained. Last, but possibly mostimportant, the fishing industry pro-vides a high-quality source of proteinfor personal consumption.

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t would take an exhaustive survey just to determine the number of different fisheriesin Virginia. Numerous gear are employed by vessels and boats of different types andconfigurations. The Virginia Marine Resources Commission (VMRC), the state agencyassigned the responsibility of carrying out the state�s marine resource management,issues approximately 78 different types of commercial fishing licenses based on geartype, number of gear, and species. The state does not issue licenses, however, for allVirginia-based fisheries. Fisheries harvested in the exclusive economic zone (EEZ) mustbe permitted by the federal government. A fishery is not defined only in terms of thegear used to harvest the resource, but also in terms of product form, area caught, arealanded, and market sold in. In addition, there are concerns about whether or not thefishery is a full-time, part-time, or occasional fishery. Recent concerns are aboutwhether or not aquaculture comprises a fishery, or whether it should be viewed asagriculture and not a fishery.

Although the number of fisheries and gear types used to harvest finfish and shellfishwithin Virginia waters and the exclusive economic zone are substantial, a limitednumber of gear types account for the majority of the landings. The major gear typesused within Virginia waters are oyster hand tong, crab dredge, crab trap, crab pot,ordinary clam tong, various types of gill nets, conch dredge, fyke net, and purse seines.The major gear types for the offshore fisheries are scallop dredge, surf clam and oceanquahog dredge, trawls, and long-lines. In terms of landed value, purse seines typicallyaccount for the highest landed value. The scallop dredge, however, has frequentlyaccounted for slightly more landed value than purse seines. Crab pots are responsiblefor the third highest landed value in the state. Haul seines, pound nets, and patenttongs for clams, although few in number, also greatly contribute to Virginia landings.

The VMRC does not maintain data by commercial fishing vessel that can be easilyused to determine the number of fishing boats. The agency does maintain verydetailed information about licenses. In 1994, the numbers of licenses issued for

IVirginia�s Commercial Fisheries

The Wild Fisheriesand SpeciesAlthough the number of fisheries

and gear types used to harvest

finfish and shellfish within Virginia

waters and the exclusive economic

zone are substantial, a limited

number of gear types account for

the majority of the landings.

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commercial fishing activities exceeded14,000. One individual, however, mayhave more than one license; thus, thenumber of licenses does not indicate thenumber of individuals engaged in com-mercial fishing. In retrospect, the numberof licenses in 1953, 1960, 1970, 1980,1990, and 1993 were 12,030; 17,259;11,020; 16,963; 16,102; 10,769; and14,172 (Figure 1).

Although the number of licenses is notnecessarily indicative of the number ofindividuals involved in the industry, itdoes provide an indication of activity. In1953, 3,203 licenses were issued for handtonging oysters. Today, with the declineof the oyster resource in Virginia, less than

400 licenses have been issued for handtonging oysters. The majority of thelicenses issued are for crab gear andgillnets.

Virginia also has a relatively largeoffshore fleet. In 1994, there were morethan 250 documented vessels fishing outof Virginia. These were mostly trawl,scallop dredge, and long-line vessels;prior to 1990, there was also a largeoffshore surf clam and ocean quahogdredge fleet. This count is not indicativeof all offshore activity occurring fromVirginia ports. Numerous vessels whichregularly operate from Virginia facilitiesare registered in other states. It is not anuncommon sight to observe a New

Bedford, Massachusetts vessel offloadingfinfish or shellfish at a Virginia port.

In 1994, there were 3,062 individualsregistered to commercially fish withinVirginia waters or the Territorial Sea (allinshore waters out to three miles offshore).Considering crew who work for the licenseholders and the offshore vessels, which donot have to be licensed by Virginia,approximately 7,100 individuals weredirectly engaged in harvesting activities in1994.

Relative to the total number ofindividuals employed in Virginia�3.2million�7,100 individuals engaged incommercial fishing does not seem veryimportant. Fishermen account for only0.21 percent of the total employment inVirginia. Employment in all sectors ofagriculture, forestry, and fisheries com-bined accounted for 7.65 percent of thetotal employment in Virginia in 1994.Virginia�s Workforce 2000 study projectsthe employment in agriculture, forestry,and fisheries will account for only 0.67percent of total employment in the year2000.

Even if the total number of individualsengaged in fishing seems low, the com-mercial industry generates employment inother sectors of the economy. Hotels,motels, eating and drinking establish-ments, and grocery stores are businesses inwhich seafood is sold. These industriesare projected to have high growth inemployment opportunities in the future.

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Relative to 1994 U.S. fisheries land-ings, Virginia ranked third (Figure 2).Virginia followed Alaska and Louisiana inquantity of landings, the result of largelandings of menhaden. In value terms,Virginia landings were the ninth highest.Virginia followed California�not bad for acoastal state with a population equal to 21percent of California�s population.

What sets Virginia�s seafood industryapart from many other states is thediversity of species and product forms.Approximately fifty different species offinfish and shellfish are landed each yearat Virginia ports. It is the blue crab andoyster which remain supreme in theconsumer�s mind. Virginia blue crabs andoysters are the best, so people say. It is atoss-up as to whether or not Virginia,Maryland, or Louisiana is the nation�s topproducer of blue crabs. Relative to totallanded value in Virginia, blue crabs,flounder, oysters, hard clams, sea scallops,and menhaden typically account for morethan 90 percent of the landed value of allmarine finfish and shellfish. In 1994, theabove-mentioned species accounted for89.4 percent of the value of finfish andshellfish landed in Virginia (Figure 3).These same species accounted for slightlymore than 94 percent of the total quantitylanded in 1994.

Nearly all of the landings of blue crab,oysters, hard clams, and menhaden comefrom the Chesapeake Bay. Blue crabs areprimarily harvested by crab pots; oysters

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Table 1. Primary Fishing Areas and Gear Types of Virginia�s Fisheries.

Species Primary Gear Primary Area

River herring Gill net InshoreShad Gill net InshoreGray trout Gill net InshoreSpotted trout Gill net InshoreMenhaden Purse seine InshoreSpot Gill net InshoreCroaker Gill net InshoreStriped bass Gill net InshoreBlack drum Gill net InshoreEel Eel pot InshoreFluke Trawl OffshoreMackerel-Boston Trawl OffshoreMackerel-Spanish Pound net InshoreBluefish Gill net InshoreScup Trawl OffshoreBlack sea bass Trawl OffshoreTuna Longline OffshoreDolphin Longline OffshoreSharks Longline OffshoreKing mackerel Gill net InshoreHard clams Patent tong InshoreConchs Dredge (pots offshore) InshoreHard blue crabs Crab pots InshoreBlue crabs-Peelers Peeler pots InshoreOysters-market Hand tong InshoreSea scallops Scallop dredge OffshoreSurf clams Hydraulic dredge OffshoreOcean quahogs Hydraulic dredge Offshore

are mostly taken by hand tong; hardclams are harvested principally by handand patent tongs and dredge; menha-den are harvested mostly by purse seine(Table 1). Sea scallops are taken exclu-sively in the offshore waters or AtlanticOcean by dredge. Flounder andmenhaden are harvested both in theChesapeake Bay and in the offshorewaters of the Atlantic. Flounder areharvested primarily by trawl in theoffshore waters. Most of the menhadencatch comes from the Chesapeake Baypurse seine fishery.

Like other fisheries throughout theworld, many of Virginia�s fisheriesappear to be fully utilized. There aresimply few or little growth opportunitiesrelative to increasing total production.Total landings in Virginia exhibited aslight upward trend between 1970 and1994 (Figure 4). In fact, landingsincreased 6.2 percent between 1970 and1994. In comparison, landed valueincreased by nearly 500 percent between1970 and 1994. The increase in value oflandings was primarily the result ofincreased harvests of sea scallops, hardclams, soft-shell crab, emerging fisheriessuch as the conch fishery, and our ever-present economic inflation. Fishermenalso focused on higher-value speciesduring this period, and consumerssubstantially increased their desire forseafood as they attempted to eat morehealthy foods.

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FinfishDating back to the 1600s on up to

today, Virginia watermen have harvestedfinfish. In the early times, sturgeon andriver herring were heavily harvested andwere the major commercial fisheries ofVirginia. As consumers� tastes andpreferences became different, and astechnology changed over time, so did thespecies being harvested. In 1994, totalfinfish landings in Virginia were 536.5million pounds with a landed ordockside value of $45.2 million. Relativeto 1970, finfish landings have increasedby a modest 8 percent (Figure 5). In1970, finfish landings equaled 495.4million pounds. Value, on the otherhand, has risen by 289 percent since1970. There has been, though, a sub-stantial change in the species composi-tion as watermen have shifted fishingeffort to those fisheries with higherexpected earnings.

Since 1935, thirteen species havetraditionally accounted for more than 98percent of finfish landings. In general,the thirteen species may be thought of interms of industrial and edible finfishspecies. Menhaden is the major indus-trial species and croaker, seatrout, shad,porgy, alewife, flounder, rockfish (stripedbass), sea bass, butterfish, spot, Bostonmackerel, and catfish are the major ediblefinfish. Some species, like alewives, areboth edible and industrial.

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In Virginia, menhaden, which is notnormally consumed as food, has ac-counted for about 92 percent of finfishlandings in Virginia. The second mostimportant species in recent years, relativeto landed value, is summer flounder;flounder, on average, accounts for lessthan 1 percent of total commercial finfishlandings but nearly 10 percent of thelanded value of all species. There are,however, growing fisheries or expansionopportunities for eels. And in recentyears, there has been a resurgence ofcroaker, spot, seatrout, and striped bass�all of which were once major finfishspecies landed in Virginia.

In comparison, the twelve ediblespecies have historically accounted formore than 90 percent of the landings ofedible finfish. Species landed in Virginiaare no longer only those available in theChesapeake Bay. Today, it is common-place to find tuna, dolphin (mahi-mahi),shark, cobia, and various mackerelsavailable in the local markets and restau-rants. All these species are available eitherin the Bay, nearshore, or offshore waters ofVirginia. It is not uncommon to evenhave the more northern species such ascod and haddock landed in Virginia asVirginia vessels return home from fishingthe north Atlantic.

AtlanticMenhaden

Atlantic menhaden, fatback, moss-bunker, bunker or Brevoortia tyrannus, is byfar the largest finfish fishery in Virginia interms of quantity landed and value oflandings. The menhaden fishery is anindustrial fishery ratherthan the usual seafoodfishery. Menhaden is asmall oily fish of theherring family and ishighly valued for its oiland use as fish meal.Menhaden is also used asbait by commercialwatermen and recreationalanglers. The fishery is oneof the oldest and largest inNorth America. Menha-den are distributed fromNova Scotia to Florida andmove north and south withthe seasons. Menhadenspawn in the Atlantic shelfwaters in late fall andwinter, with young menha-den or juveniles appearingin the Chesapeake Bayduring early spring andsummer. Menhaden arefilter feeders and feed onplanktonic plants.

The Atlantic menhaden occur in largeschools, sometimes appearing over severalsquare acres, and are thus highly vulner-able to harvesting by purse seine, themajor gear. Menhaden are, to a muchlesser degree, also harvested by snapperrigs. A very small quantity of menhadenare caught by pound nets.

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Relative to the total quantity of finfish and shellfish landed in Virginia, menhadenhave accounted for slightly more than 87 percent (Figure 6). In value terms, menhadenlandings have been responsible for 21 percent of the landed value of all species landedin Virginia.

The primary gear accounting for the majority of menhadenlandings is the purse seine. There are only a few companiesengaged in the purse seine fishery. In 1994, eighteen purse seinevessels landed 502,361,980 pounds of menhaden with an ex-vessel value of $17,502,418 (Table 2). Snapper rigs and poundnets harvested an additional 5,664,625 pounds worth $550,182in 1994.

Although the number of companies engaged in the purseseine fishery are relatively few, the fishery is of considerableeconomic importance to the local community of Reedville inNorthumberland County. In 1994, the local companies had atotal payroll in excess of $10 million. They employed 296individuals aboard the purse vessels and 274 individuals in

shore-side support operations. Theyspent more than $2 million on utilities in1994 just to support shoreside activities.

The menhaden firms had total sales inexcess of $30 million in 1994. More than$20 million in sales were for fish meal.The menhaden companies spent morethan $17 million just on harvestingmenhaden in 1994. Fishing crew earned$7.4 million or an average salary of$25,000 per person per fishing season(typically between May and November or 8months when vessel maintenance and gearare considered).

Shore based production and salesactivities generated more than $3.5million in direct payments to employees.More than 500,000 hours of manpowerwas necessary to support shore-basedactivities. In terms of full-time employ-ment (2,080 hours per employee per year),shoreside activities provided an averageannual salary of $14,300 per employee.

Table 2. Virginia Dockside Landings, Value, and Prices,Menhaden, Selected Years, 1935-1994.

Dockside Dockside Dockside PriceYear Landings Value Dollars

Pounds Dollars Per Pound

1935 N/A1965 351,613,000 5,249,000 0.0151975 315,783,000 7,717,000 0.0241985 633,010,000 25,360,000 0.0401994 508,026,605 18,052,600 0.036

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In addition, the menhaden companiespaid approximately $2,600 in support ofbenefits for each full-time equivalentemployee.

AmericanShad

Shad, Alosa sapidissima, is an anadro-mous species which seasonally returns tofreshwater to spawn. Spawning occurs inlate winter and early spring. Shad havelong been a delicacy of Virginia�s waters.In fact, shad planking parties are stillimportant to Virginia politics. Thepreferred product by consumers, however,is the roe of the shad. The flesh isprimarily used as bait or simply dis-carded.

Unfortunately, the shad fishery has fallen on hard times.Landings have plummeted from a high of 11.5 million pounds in1897 to less than 300,000 pounds in 1994 (Figure 7). In 1935,landings of shad were 2.9 million pounds with a landed value of$275,000; landings and the landed value were 2.96 millionpounds and $307,000 in 1965 (Table 3). The landed value in1994 was less than $251,000. Between 1935 and 1965, thenominal, unadjusted for inflation, average price increased by only$0.01, from $0.09 to $0.10 per pound. From 1965 to 1994,however, the average price per pound increased by 857 percent to$0.96 per pound. When adjusted for inflation, the price of shadstill increased between 1965 and 1994, from $0.10 to $0.35 perpound.

Table 3. Virginia Dockside Landings, Value, and Prices,American Shad, Selected Years, 1935-1994.



1935 2,883,000 275,000 0.0951965 2,955,000 307,000 0.1041975 1,137,000 309,000 0.2721985 633,000 216,000 0.3411994 237,657 244,908 1.031

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major productforms of today.Herring is alsoused for bait inother Virginiacommercial andrecreationalfisheries.

In 1935,landings ofalewives inVirginia wereapproximately

11 million pounds with anestimated ex-vessel or docksidevalue of $65,000 (Table 4). In1965, landings were 36 millionpounds with a dockside value of$520,000. In 1994, only 178,000pounds were landed; the estimateddockside value was $26,000.

Nominal or unadjusted forinflation prices substantiallyincreased between 1935 and 1994.In 1935, the dockside price perpound received by fishermen was ameager $0.006. The price re-ceived in 1965 was $0.01 perpound. Between 1965 and 1992,the nominal price increased to$0.07 or by more than 400percent. If the price is adjustedfor general inflation, fishermenreceived $0.053 per pound in1994 for river herring in terms of1965 value.

Table 4. Virginia Dockside Landings, Value, and Prices,Alewives, Selected Years, 1935-1994.



1935 10,973,000 65,000 0.0061965 36,200,000 520,000 0.0141975 11,360,000 408,000 0.0361985 432,000 20,000 0.0461994 178,119 26,249 0.147

Alewives

Alewives, Alosa, or river herrings,actually consist of two different specieswhich are typically not distinguished bycommercial watermen. Alewife andblueblack herring are both anadromous,migrating from the sea into freshwater tospawn in late winter or early spring. Theprimary gear was historically the poundnet. The predominant gear of today isthe gill net.

The alewife, like menhaden, is anoily-fleshed fish which is rarely eatenfresh. George Washington operated oneof the early American Colonial fisheriesfor alewives. At that time, alewives wereused for fertilizer and food. Salt herring,the primary product of alewives duringthe late 1700s, sold for about $7 a barrel.During the 1940s and 1950s, the majoralewife or herring products were canned,salted, and cured; these are still the

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totaled 23 million pounds and accountedfor 38 percent of all edible finfish landedin Virginia (Table 5). In comparison,landings of croaker accounted for only 2percent of edible finfish species landed inVirginia in 1994. In 1945, croakerlandings reached a historical high of over55 million pounds. Between 1965 and1994, croaker landings increased from 1.5to 5.7 million pounds.

The level of landings of croaker maybe quite misleading about the importanceof the species to the seafood industry.Landings of croaker, like many finfishspecies of Virginia, have been extremelyvariable over time. For example, landingsincreased from 1.5 million in 1965 to 4.7million in 1975. Between 1976 and1977, landings increased by more than 45percent to 8.6 million pounds. Subse-quently, landings of croaker plummetedto 119,000 pounds in 1982 and increasedto 2.7 million pounds in 1985.

In 1935, the landed value of croakerin Virginia was $293,000. In contrast to

many Virginia species,the landed value ofcroaker decreasedbetween 1935 and1965, going from$293,000 to $154,000.The landed value ofcroaker in 1994 was $2million.

The nominalaverage price perpound for croaker

Table 5. Virginia Dockside Landings, Value, and Prices,Atlantic Croaker, Selected Years, 1935-1994.



1935 23,038,000 293,000 0.0131965 1,532,000 154,000 0.1011975 4,721,000 513,000 0.1091985 2,769,000 553,000 0.2001994 5,712,329 2,001,229 0.350

increased from $0.01 in 1935 to over $0.10in 1965. Between 1965 and 1994, thenominal price per pound increased from$0.10 to over $0.35 per pound. Whenadjusted for inflation, the average priceper pound increased by $0.03 per poundbetween 1965 and 1994.

Spot

Spot, Leiostomus xanthurus, or silvergudgeon or lafayette, is another verypopular finfish species, harvested by bothcommercial and recreational anglers inVirginia. Spot, although notoriously knownfor being boney, is also prized for its sweettasting flesh, particularly pan fried. Likecroaker, Spot has traditionally been one ofthe major finfish species landed in Vir-ginia.

Spot are distributed from Massachusettsto the Bay of Campeche, Mexico. Theytypically start showing up in the Chesa-peake Bay in April and remain until earlyfall. Spot have traditionally been har-vested by haul seines, but gill nets andpound nets are now responsible for most ofthe catch.

Spot, like many of the other species offinfish harvested in the Bay, are extremelysensitive to environmental conditions.Landings may be low in one year andeight times as high in the next year. For

AtlanticCroaker

Another major finfish species ofVirginia with substantial significance tothe commercial fisheries is AtlanticCroaker, Micropogonias undulatus, alsocalled crocus, hardhead, or King Billy.The species is as highly valued by recre-ational anglers as it is by commercialanglers.

Croaker are distributed along theAtlantic coastal areas, from Massachusettsto Florida and even in the Gulf of Mexico.Many landed croaker are typically lessthan one pound, yet the species may growto over four pounds and reach an age offour to five years old.

Croaker has been one of the majorfinfish species of Virginia. The primarycommercial gear used to harvest croaker isthe gill net. In 1935, croaker landings

21

example, landingswere only 116,000pounds in 1968 butincreased to over1,000,000 pounds in1969.

In 1935, reportedcommercial landingsof spot were 407,000pounds with adockside value of$14,000 (Table 6).The nominal price per pound was $0.03.Landings increased to nearly 1.8 millionpounds in 1965 and 4.3 million poundsin 1994. In 1935 and 1965, spot ac-counted for 0.6 and 2 percent, respec-tively, of the total landings of ediblefinfish. Spot accounted for more than 13percent of the edible finfish landed inVirginia in 1994.

The nominal price per pound in-creased from $0.03 per pound in 1935 to$0.14 and $0.38 per pound in 1965 and1994, respectively. After adjusting forinflation, the price per pound actuallydecreased between 1965 and 1994; real oradjusted price decreased from $0.14 to$0.13 between 1965 and 1994.

Changes in the price per pound forspot perhaps best illustrate a majorproblem confronting watermen. In goodresource years, commercial harvestersexperience significant price reductions.In poor resource years, harvesters usuallyenjoy high prices but little supply. The

bottom line is that the harvester is alwaysat the mercy of the market and naturalresource.

Seatrout

Seatrout, Cynoscion regallis, or grayseatrout, weakfish, trout, or gray trout as itis commonly known, is another finfishthat is important to both recreational andcommercial anglers. Seatrout is closelyrelated to croaker, spot, and black drum.The seatrout is found from Massachusettsto Florida, infrequently off Nova Scotia,and in the Gulf of Mexico. It is highlyprized by consumers. The major marketforms for locally harvested seatrout arefresh whole and filleted. The primarycommercial gear used to harvest gray troutin Virginia is the gill net.

Landings of gray trout have beenerratic but considerably less erratic than

Table 6. Virginia Dockside Landings, Value, and Prices,Spot, Selected Years, 1935-1994.



1935 407,000 14,000 0.0341965 1,751,000 248,000 0.1421975 1,918,000 276,000 0.1441985 1,539,000 564,000 0.3661994 4,259,830 1,625,753 0.382

22

the landings of other finfish species inVirginia. In 1935, commercial harvesterslanded 13.6 million pounds of grayseatrout, and in 1945, harvesters experi-enced record landings of 22.5 millionpounds. Between 1965 and 1986, land-ings remained virtually unchanged,although experiencing considerablevariation between the two years. Landingsduring both time periods were 2 millionpounds. Unfortunately, landings of graytrout declined to a low of 1.3 millionpounds in 1994. Similar low landingswere observed between 1967 and 1969 butsubstantially increased in 1970.

The landed value of seatrout in 1935was nearly equal to the landed value ofseatrout in 1965 (Table 7). Between theseperiods, however, landed value greatlyfluctuated. In 1935, the landed value was$171,000. By 1945, the landed valueincreased to $2.4 million. In 1965, thelanded value was down to $180,000 andslowly increased to over $1 million by1979. In 1994, the landed value ofseatrout was $729,000.

In 1935, watermen received approxi-mately $0.01 per pound. In 1965, theyreceived about $0.09 per pound. Theprice received per pound in 1994 forseatrout was $0.56 which, even afteradjusted for inflation, equaled a 125percent increase that is indicative of thevalue consumers have increasingly placedon seatrout.

Scup

Scup or porgy, Stenotomus chrysops, hasbeen another popular Virginia finfish.Porgy are available in coastal waters, fromthe Gulf of Mexico to Cape Hatteras,North Carolina. During the wintermonths, porgy are available offshorebetween New Jersey and North Carolina.Porgy are also frequently caught byMassachusetts recreational anglers. Porgyis typically a pan sized fish but doesbecome large enough for filleting. Most ofthe scup landed in Virginia are harvestedby the offshore trawlers.

Scup is particularly subject to largefluctuations in resource abundance.Landings have ranged from a low of184,000 pounds in 1985 to over 13million in 1960. Between 1935 and 1948,landings increased from 1.9 millionpounds to 6 million pounds (Table 8). In1965, landings were only 479,000 pounds.Landings further decreased to 202,749pounds in 1994.

Between 1982 and 1986, the landedvalue of scup averaged $412,000 per year.In 1994, the landed value was down to$91,000. The landed value of scup,however, has been as high as $800,000,which occurred in 1966.

Like most finfish species of Virginia,the landed value of scup in 1935 was quitelow. Virginia watermen received $0.01 perpound in 1935. In 1965, the averagedockside price per pound was $0.08. In1994, the nominal dockside price was$0.45 per pound. After adjusting forinflation, the price of scup was $0.16 perpound in 1994, or 104 percent higherthan it was in 1965.

SummerFlounder

Although other types of flounder arelanded in Virginia, the summer flounder,Paralichthys dentatus, or fluke, flounder,and plaice, as it is commonly known, isthe premier flounder of Virginia. It ishighly desired by commercial and recre-ational anglers and diners throughout theUnited States. The summer flounder is ausually abundant flatfish of the MiddleAtlantic Bight. It is found in the Chesa-peake Bay, in nearshore coastal waters,and offshore in the Atlantic Ocean. Theprimary gear used to harvest summerflounder is the trawl. Incidental harvests,however, are also made by Virginia�s largescallop fleet.

Summer flounder is marketed in avariety of forms. These include freshwhole, filleted, stuffed, and frozen. Acommon favorite of restaurant diners is

23

flounder stuffed with crab meat. Baked and broiled fillets havealso become a popular product form of summer flounder.

In general, landings of summer flounder have increased since1935, but there have been several periods of dramatic ups anddowns (Table 9). In 1935, landings were only 672,000 pounds butincreased to over one million pounds in 1939. In 1965, landingsof summer flounder equaled 1.9 million pounds. Between 1978and 1979, landings increased from 5.9 million to over 10 millionpounds. In 1994, landings of summer flounder were down to only3 million pounds, a result of stringent management quotas placedon the species.

The value of landings has also dramatically changed since1935. In 1935, the value received by Virginia watermen forsummer flounder was $34,000 or $0.05 per pound. In 1965,Virginia watermen received $0.18 per pound for a total landedvalue of $363 thousand. In 1994, Virginia fishermen received$1.35 per pound; the total landed or dockside value of summerflounder was $4.1 million in 1994. Even after adjusting forinflation, fishermen realized a 172 percent increase in thedockside price of summer flounder between 1965 and 1994. Thelarge increase in prices paid to fishermen for flounder indicateshow the American consumer has truly come to prefer flounderrelative to many other species of finfish.

BlackSea Bass

The black sea bass, Centropristis striata, also called sea bass andblackfish, has been one of the most popular species of Virginiafinfish since the 1930s. The sea bass is quite common to thecoastal and offshore waters between Massachusetts and Florida.Most of the commercial landings in Virginia come from the falland winter offshore trawl fishery. There is also a small pot fishery

Table 9. Virginia Dockside Landings, Value, and Prices,Flounder, Selected Years, 1935-1994.



1935 672,000 34,000 0.0511965 1,977,000 363,000 0.1841975 3,418,000 958,000 0.2801985 5,063,000 4,384,000 0.8661994 3,035,186 4,097,396 1.350

Table 8. Virginia Dockside Landings, Value, and Prices,Scup, Selected Years, 1935-1994.



1935 1,935,000 28,000 0.0141965 6,277,000 479,000 0.0761975 409,000 71,000 0.1741985 164,000 52,000 0.3171994 202,749 91,190 0.450

Table 7. Virginia Dockside Landings, Value, and Prices,Seatrout, Selected Years, 1935-1994.



1935 13,555,000 171,000 0.0131965 2,007,000 180,000 0.0891975 4,090,000 554,000 0.1351985 2,052,000 1,083,000 0.5281994 1,336,862 760,652 0.569

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which operates between spring and fall inthe Chesapeake Bay and territorial waters.

Sea bass is typically sold whole and infresh fillet form. Fillets, however, havebeen relatively few during the past fewyears. The sea bass may live as long astwenty years but bass older than nine yearsare thought to be quite rare. The maxi-mum size attained is approximately 24inches or about six pounds. Most black

sea bass presently being marketed aretypically under three pounds.

The sea bass has been a very popularspecies in Virginia but only during thepast 50 years. Between 1935 and 1942,landings were typically below 250,000pounds (Table 10). During the late 1940s,annual landings substantially increased to2 to 4 million pounds. All through the1960s, 1970s, and 1980s, annual landingswere regularly in excess of 1 million

pounds. Landingsin 1994 were only371,000 pounds.

The valuereceived by fisher-men for sea bass hasbeen quite high,even during the1940s. In 1935,landed value wasonly $8,000 but hadincreased to morethan $297 thousandin 1948. In 1965,black sea bass wereworth $368,000 atthe dock. In 1986,the dockside valuewas $943,000. Thelanded value in 1994was $436,000. Inrelation to the lastfive years, the valueof sea bass was thethird highest relativeto edible finfish;

Table 11. Virginia Dockside Landings, Value, and Prices,Striped Bass, Selected Years, 1935-1994.



1935 375,000 39,000 0.1041965 2,213,000 433,000 0.1961975 1,331,000 642,000 0.4821985 241,000 259,000 1.0751994 281,581 460,839 1.637

Table 10. Virginia Dockside Landings, Value, and Prices,Sea Bass, Selected Years, 1935-1994.



1935 211,000 8,000 0.0381965 4.771,000 368,000 0.0771975 1,546,000 367,000 0.2371985 603,000 506,000 0.8391994 295,867 295,375 0.998

only summer flounder and seatrout hadannual landed values higher than blacksea bass.

Between 1935 and 1994, the nominaldockside price for sea bass increased, from$0.04 to $1.17 per pound. In 1965,fishermen received $0.07 per pound forsea bass. In terms of the real rate ofincrease, the dockside price of sea bassincreased at an annual rate of 16.9 percentper year between 1965 and 1994.

StripedBass

Striped bass, Morone saxatilis, rock,rockfish, or striper, has historically beenan important commercial and gamefishspecies. It is a popular anadromous fishof North America. The range of stripedbass is from the St. Lawrence River toFlorida, and in the Gulf of Mexico. It ishighly prized by consumers for its flavorand size. In recent years, striped basshave been produced quite successfully byaquaculture producers. It is not uncom-mon for striped bass to be more than 50pounds.

In 1935, striped bass was one of theless popular commercial species. Land-ings were only 375,000 pounds (Table 11).By the 1940s, however, annual landingsregularly exceeded 2 million pounds.The record high level of landings was 2.9

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million pounds in 1973. During the1980s, stringent regulations by theVirginia Marine Resources Commissionfor the purpose of rebuilding this impor-tant commercial and recreational fishspecies restricted landings to very lowlevels. In 1986, only 27,000 pounds ofstriped bass were landed in Virginia. In1994, the relaxation of the very restrictiveregulations allowed an annual harvest ofslightly more than 281,000 pounds.

Throughout the 1930s, 1940s, and1950s, the landed value of striped basswas typically less than $350,000. Duringthe 1960s, the landed value per yearfrequently exceeded $400,000. Landedvalue reached a high of more than$770,000 in 1973. In 1994, the landedvalue of striped bass was $460,000.

Like nearly all Virginia finfish species,the ex-vessel or dockside price of stripedbass has widely fluctuated. In 1935,fishermen received $0.10 per pound. By1965, Virginia watermen received nearlydouble the 1935 price�$0.19 per pound.In 1994, the price received at the dockfor striped bass was $1.64. After adjust-ing for inflation, Virginia watermenenjoyed a price of $0.59 per poundrelative to the 1965 price of $0.19 perpound.

ShellfishThe shellfish fisheries of Virginia are

extremely important to local economies,and the fisheries for which the economicimportance of fisher-ies is, perhaps, bestillustrated. Numeroustypes of shellfish areexploited withinVirginia waters orlanded at Virginiaports, but the bluecrab, sea scallop, andhard clam reignsupreme. In 1994,these three speciesaccounted for morethan 94 percent of thelanded value ofshellfish, and 70percent of the landedvalue of edible finfishand shellfish. Duringthe 1970s, particularlybefore 1976, oystersand blue crabs werethe major shellfishspecies harvested byVirginia commercialfishermen. In the1940s, oysters typi-cally accounted formore than 50 percentof the landed value ofall edible finfish andshellfish.

Blue crabs, sea scallops, hard clams,and oysters are not the only shellfishspecies caught or landed in Virginia. Surfclams and ocean quahogs were previously

26

harvested offshore and regularly landed byVirginia vessels; the surf clam and oceanquahog fisheries no longer operate out ofVirginia. The conch fishery, having littleeconomic importance in prior years, hasbecome an expanding Virginia fishery oflate.

In 1935, the total landings and landedvalue of shellfish in Virginia were 37million pounds and $2 million (Figure 8).By 1947, the total landings and landedvalue increased to 60 million pounds andnearly $11 million. By the late 1980s,Virginia watermen landed in excess of 74

million pounds of shellfish and receivedmore than $47 million for their efforts.Unfortunately, there has been a relativedecline in recent years. In 1994, Virginiacommercial fishermen landed 44 millionpounds of shellfish and received, beforeexpenses and taxes, slightly more than$56 million. Most of the reduction inlandings between the 1970s and today wasthe result of declining landings of surfclams and oysters and stringent state andfederal regulations on harvesting bluecrabs and sea scallops.

Blue Crabs

Possibly the most prized species ofVirginia seafood, Callinectes sapidus ishighly desired by consumers around theworld. The preferred product forms arewhole hard crabs, crab meat, and soft-shelled crabs which are cleaned and eatenwhole. Blue crabs are quite common incoastal waters, rivers, and estuaries, fromNew Jersey to Florida and along the GulfCoast to Texas. The blue crab is evenavailable in Massachusetts� waters, itsnorthern extreme. The major gear typeused to harvest crabs in Virginia is thecrab pot. However, crab traps, scrapes,and trotlines are also used to harvest bluecrabs.

The blue crab was not always thepreferred choice of Virginia consumers.During the 1930s and 1940s, landingsseldom exceeded 20 million pounds peryear (Table 12). From 1947 on, it ap-peared that Virginians and Americanconsumers had a love affair with bluecrabs. A receptive market responded toadvances in pasteurization which allowedconsumers the opportunity to purchasecrab meat on a year-round basis. Anincreasing preference for hard crabs andpicked crab meat propelled the blue crabto the number one Bay shellfish species interms of landed value. Annual landings

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increased to over 32 million pounds inthe late 1940s and regularly exceeded 40million pounds between 1965 and 1990.

Difficult times were ahead for bluecrabs during the early 1990s. In 1994,landings declined to slightly less than 35million pounds, which is below the long-run average of 40 million pounds per year.The state legislature is considering variousoptions for managing and regulating theblue crab fishery in conjunction withregulatory strategies by Maryland.

The landed value of blue crabs wastypically quite low relative to the landedvalue of Virginia oysters. Between 1935and 1949, the dockside value of blue crabswas less than $2 million per year; thelanded value of market oysters regularlyexceeded $2 million per year. From about1981 on, the landed value of blue crabsexceeded the landed value of oysters. In1993, the landed value of hard blue crabsexceeded $26 million. Unfortunately, thedockside value declined to $22.7 millionin 1994.

Table 12. Virginia Dockside Landings, Value, and Prices,Blue Crab, Selected Years, 1935-1994.

Dockside Dockside Dockside Price Year Landings Value Dollars


1935 21,211,000 645,000 0.030 1965 51,642,000 4,169,000 0.081 1975 35,573,000 5,366,000 0.151 1985 38,884,000 9,119,000 0.235 1994 35,239,292 22,697,976 0.644

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The price received by fishermen forblue crabs has been extremely variableover time. In 1940, the dockside pricesreceived by fishermen for hard and softcrabs were $0.02 and $0.07 per pound,respectively. In 1994, the nominal prices(unadjusted for inflation) for hard andsoft crab prices were, respectively, $0.58and $4.22 per pound. The obviousdisparity in the prices of hard and softcrabs has been brought about by anincreasing U.S. and world demand forsoft crabs. A large quantity of soft crabsare regularly shipped to the Japanesemarket.

HardClams

The hard clam, Mercenaria mercenaria,quahog, littleneck, top neck, cherrystone,or chowder, is another one of Virginia�svalued species. The terms littleneck, topneck, cherrystone, and chowder allindicate different market categories. Themost common name for the hard clam isquahog. The hard clam, highly desiredby consumers, has experienced substantialgrowth over the past fifty years.

The hard clam is distributed along theAtlantic Coast, from the Gulf of St.Lawrence to Florida and along the GulfCoast to the Yucatan Peninsula. It iscommonly found in shallow, high salinitywaters over a diverse range of bottomtypes. The primary harvesting areas in

Table 13. Virginia Dockside Landings, Value, and Prices,Hard Clams, Selected Years, 1935-1994.



1935 1,644,000 371,000 0.226 1965 2,487,000 1,337,000 0.538 1975 1,088,000 1,022,000 0.939 1985 613,000 1,519,000 2.478

Virginia are the lowerJames River, the YorkRiver, and seaside ofthe Eastern shore.The primary gear isthe patent tong.

The hard clamfishery has tradition-ally been a mainstayof Virginia�s fisheries,although it did notsignificantly contribute to the earnings offishermen until after World War II.Between 1935 and 1949, landings of hardclams were typically less than 2 millionpounds with a dockside value usually lessthan $500,000 (Table 13). Even throughthe 1980s, landings of hard clams wereabout the same as they were during the1930s and 1940s; landings typicallyaveraged less than 1.0 million pounds ofmeats per year.

On the other hand, there have beensubstantial increases in the landed valueand price per pound. In 1976, 893thousand pounds of hard clams generated$868,000 for watermen; the dockside pricewas $0.97 per pound. In 1994, 1.1million pounds of hard clams generated adockside value of $6 million; the pricehad substantially increased to $5.12 perpound. After adjusting for inflation, thedockside price of hard clams experienceda real increase of 245 percent between1965 and 1994.

Oysters

Until the past ten years, the primadonna species of Virginia was the oyster,Crassostrea virginica. The oyster fishery wasonce the fishery of Virginia. It supportedthousands of people. Oysters were astaple for soldiers during the Revolution-ary and Civil Wars. Prior to 1900, land-ings regularly exceeded 40 millionpounds of meats per year. After 1900 andon up through the early 1960s, landingswere typically in excess of 15 millionpounds. Since 1965, landings per yearhave been well below 2 million pounds.Landings in 1994 were a meager 301,000pounds.

The American, or Eastern, oyster is themost abundant oyster species available inU.S. waters. It is found in brackish watersof bays and inlets along the Atlantic andGulf coasts. In Virginia, oysters areharvested from public and private

29

Table 14. Virginia Dockside Landings, Value, and Prices,Oysters, Selected Years, 1935-1994.



1935 14,317,000 997,000 0.069 1965 12,568,000 10,291,000 0.819 1975 6,237,000 4,999,000 0.802 1985 4,721,000 7,141,000 1.513 1994 300,292 812,387 2.703

grounds. The public areas areknown as Baylor Grounds andconsist of approximately 250,000acres.

Traditionally, landings fromprivate grounds exceeded theharvests from the public areas.From about 1975 on, harvests frompublic areas have exceeded harvestlevels from private grounds. Themajor gear type for oysters is thehand tong.

In 1935, the dockside value ofmarket oysters was $997,000 (Table14). In 1965, the value hadincreased to $10.3 million.Between 1965 and 1986, theaverage annual landed value was$5.1 million. In 1994, oystersprovided only $812,000 in incometo fishermen. The equivalent pricein 1994 was $2.70 per pound; theprice in 1965 was $0.82 perpound. Relative to 1965, the realprice of oysters increased only 19percent while production costsincreased by nearly 300 percent.

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Surf Clam

The surf or sea clam, Spisulasolidissima, is a relative newcomer toVirginia. Although surf clams havebeen available off the Atlantic coastfor a long time, it was not until the1940s that the fishery began off theNew Jersey Coast. Rumor has it thatthe fishery really expanded in theearly 1970s in response to HowardJohnson restaurants� serving ofbreaded clam strips in their restau-rants. In Virginia, the fishery hasdisplayed a roller coaster pattern ofups and downs and did not actuallybegin until about 1968.

Surf clams occur in the offshoreareas, from the Gulf of St. Lawrenceto the northern Gulf of Mexico.Commercial concentrations areprimarily found off New Jersey andthe Delmarva Peninsula (Delaware/Maryland/Virginia). Surf clams aremost abundant between New Yorkand Cape Henry, Virginia. The surfclam has a life span of 17 to 20 yearsand can grow to be quite large. Themaximum size of the surf clam, inshell width, is about nine inches,although clams larger than 8 inchesappear to be quite rare. The primarygear used to harvest surf clams is adredge.

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In 1968, the first year in which surf clam landings werereported for Virginia, fishermen landed 17,000 pounds of surfclam meats (Table 15). Landings in 1973 and 1974 were 43 and58 million pounds of meats. Between 1975 and 1986, landingswere relatively stable and typically between 12 and 15 millionpounds. By 1991, landings of surf clams in Virginia had droppedto zero as surf clam companies folded or left the state. Thereremain, still, surf clam processing activities within Virginia.

An interesting aspect of the surf clam is that it is the first U.S.fishery in the exclusive economic zone (EEZ) managed by indi-vidual transferable quotas or ITQs. Under this regime, harvestersare allocated a certain quantity of surf clams that they may harvestin a year. Holders of these ITQs can sell, loan, lease, give-away,or simply not use their ITQs. This is one of the few fisheries inthe United States in which privatization of harvesting rights hasbeen attempted.

Sea Scallops

Sea scallops, Placopecten magellanicus, is another relativenewcomer to Virginia fisheries. Although widely distributed andavailable off the coast of Virginia, the species was not regularlyharvested by Virginia vessels until the late 1940s and early 1950s. In1950, for example, vessels fishing for sea scallops landed only92,500 pounds of scallop meats (Table 16). In 1994, scallop land-ings in Virginia were nearly 6 million pounds or 6,476 percenthigher than they were in 1950.

Unlike oysters, hard clams, and blue crabs, which are landedwhole or live, only the muscle of the sea scallop is typically landed.The primary gear is the dredge, although small quantities areharvested by trawl. At sea, crew shuck or remove the muscle fromthe whole scallop and then place the meats in linen cloth bagswhich are stowed on ice until offloaded at the dock. A relativelysmall quantity of sea scallops is landed whole, as shellstock.

Table 16. Virginia Dockside Landings, Value, and Prices, SeaScallops, Selected Years, 1935-1994.



1935 0 1965 2,830,000 1,725,000 0.610 1975 1,266,000 2,324,000 1.836 1985 2,868,000 13,355,000 4.657 1994 6,083,224 26,622,000 4.376

Table 15. Virginia Dockside Landings, Value, and Prices,Surf Clams, Selected Years, 1935-1994.



1935 0 0 1965 0 0 1975 39,089,000 5,682,000 0.145 1985 13,393,000 7,403,000 0.553 1994 0 0

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The sea scallop is distributed from theGulf of St. Lawrence to Cape Hatteras,North Carolina. Large concentrations ofsea scallops are typically found on GeorgesBank off New England, in the mid-Atlantic areas off New Jersey, and right offof Chincoteaque, Virginia. Virginiavessels, although working mostly on themid-Atlantic resource areas, also exploitthe New England Georges Bank resourcearea. In addition, New England vesselsfrequently exploit the mid-Atlantic areasand land scallops at Virginia ports. Thescallop fishery has become the state�smost important fishery in terms ofdockside value.

More than 60 scallop dredge vesselsbased in Virginia harvested about 6.1million pounds of scallop meats in 1994.Between 1965 and 1986, landings ex-ceeded 5 million pounds in only threeyears�1978, 1979, and 1980. The 20year average annual landings between1965 and 1986 was 2.8 million pounds.

The sea scallop fishery has beenregulated by the New England FisheryManagement Council (NEFMC) since1983. Between 1983 and 1994, landingswere subject to restrictions on the numberof meats per pound which could belanded. Since March 1994, fishing ofscallops has been regulated by restrictionson the number of days at sea a vessel mayfish, the number of crew allowed pervessel, and the size of the fishing gear.

More important than landings to theeconomies of the state and coastal commu-nities is the landed value. In 1994, thedockside value was $26.6 million. Thelargest dockside value ever observedbetween 1965 and 1993 was $24 million,which occurred in 1979. Even afteradjusting for inflation, the landed value in1994 was 467 percent higher than it wasin 1965.

Like nearly all wild species fisheries,the dockside price of sea scallops has beenextremely variable. Between 1965 and1994, prices received by scallop fishermenvaried between $0.60 and to over $5.50per pound of scallop meat on a trip basis.Traditionally, prices have been veryresponsive to changes in landings. In thecase of sea scallops there are numerousresource areas, port of landings, differenttypes of scallops harvested, and importsfrom Canada and other nations whichaffect the dockside price. For example,the total landings of sea scallops in theUnited States was 18 million pounds in1994; total imports ofall types of scallopsexceeded 57 millionpounds which ex-ceeded imports in allyears between 1985and 1994. In 1994,scallop fishermenlanding in Virginiareceived, on average,just under $5.00 perpound.

Table 17. Virginia Dockside Landings, Value, and Prices,Conch, Selected Years, 1935-1994.



1935 0 1965 232,000 25,000 0.108 1975 1,085,000 115,000 0.106 1985 84,000 142,000 1.690 1994 1,249,774 456,452 0.365

Conch

The conch, Busycon spp., fishery hasbecome increasingly important to Virginiawatermen during the past five years.Three types of conch are harvested withinVirginia waters: (1) knobbed whelk,Busycon carica; (2) channeled whelk,Busycon canaliculatum; and (3) lightningwhelk, Busycon contrarium. In Virginia,the whelk or conch fishery is primarily aninshore fishery with the majority of theharvest being taken by conch dredge.Conchs are also taken in large quantitiesby clam and crab dredges; however,harvests by clam dredges have beennonexistent since 1988.

In 1965, only 232,000 pounds ofconch were landed in Virginia (Table 17).

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More than 1 million pounds were landedin 1975. Landings substantially declinedbetween 1975 and 1992 and increased in1993 and 1994. Landings averaged justunder 350,000 pounds a year between1975 and 1994. Landings in 1994equaled 1.2 million pounds, which wasthe highest observed level of landingsbetween 1965 and 1994.

Conch has never accounted for asignificant portion of total dockside valueof shellfish. This does not mean it is notof significance. To those fishermendependent upon revenues from thefishery, the conch resource is quiteimportant. In 1965, conch accounted for0.1 percent of the total dockside value ofshellfish. In 1986, conch still accountedfor less than 1.0 percent of the total

landed value of shellfish. In 1994, conchaccounted for only 0.82 percent of thetotal landed value of all shellfish. Al-though conch has not been a majorcontributor to dockside value, it is ananimal that is being increasingly de-manded throughout the world, and onewhich offers additional export opportuni-ties for Virginia watermen.

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Table 18. Production and Sales of Selected VirginiaAquaculture Products, 1995

Species Production Gross Sales Unitsa Dollars

Clams, mature 50,200,000 8,032,000

Oysters, mature 259,000 62,160

Soft-shell Crabs 417,705 4,840,142

Other Species -- 1,502,000

All Salt Wate -- 14,436,302

Trout 1,193,730 2,255,044

Catfish 14,870 28,329

Striped Bass 11,750 41,986

Other Fresh -- 2,897,944

All Fresh Water -- 5,223,303

aProduction of clams and oysters is in terms of number ofunits; soft-shell crab production is in dozens of crabs; theproduction of troup, catfish, and hybrid striped bass is interms of pounds.

Although aquaculture�the humanintervention and control of the growthand production processes�has long beenperformed around the world, it has onlybeen in the past 10 years that aquaculturehas taken off in the United States. In1980, the U.S. Bureau of Census and theU.S. Department of Agriculture consid-ered aquaculture to be of such littleconsequence that they did not even reportstatistics on aquaculture production in theU.S. In 1985, farmers reported receiving$205 million for aquacultured products,and in 1992, farmers received slightlymore than one-half billion dollars foraquacultured products. In 1994, justcatfish and trout farmers received morethan $400 million.

In the past, aquaculture focusedmainly on catfish, trout, ornamental fish,and gamefish for restocking purposes;today, there is a myriad of differentspecies. Tilapia and salmon have becomethe success stories of the 1990s. Crawfishhave been successfully cultured for numer-ous years. Several mollusks�oysters, hardclams, mussels, and bay scallops�arebeing increasingly produced via culture.Even alligator is farm raised now. Severalmarine finfish species, such as cod andwinter and summer flounder, are currentlythe focus of extensive research.

In Virginia, numerous products areraised or produced by aquaculturemethods. The largest product in terms ofsales is hard clams. The value paid in1995 to growers of hard clams exceededthe value paid to all aquaculture produc-ers of all freshwater species in Virginia

Commercial Aquaculture

(Table 18). In 1993, the latest year forwhich detailed information is available,clam culture operators produced over 72million clams at a price of $0.16 per clam.In comparison, the wild fishery had a totaldockside value of $4 million in 1994.Soft-shell crabs followed clams with a

35

reported sales value of nearly $5 million.This amount does not even include thevalue of the wild captured soft crabs.Other species or products raised inVirginia include tilapia, hybrid stripedbass or rockfish, trout, catfish, oysters, bayscallops, crawfish, goldfish, koi carp,ornamental fish, and aquatic plants.

Numerous trade and industry publica-tions frequently state that aquaculture isthe fastest growing agricultural industry inthe United States. This particularlyappears to be the case relative to livestockand related products or protein sources.Since 1985, aquaculture production has

increased by 145 percent. The productwith the second highest rate of growth isbroilers.

Even if aquaculture appears to havepromise, it is not without problems.Prices of aquaculture production areparticularly susceptible to increasedlandings and imports of the same orcompeting species. For example, ifVirginia watermen were allowed to harvestmore striped bass, the prices received byhybrid striped bass producers mightdecline. Individuals with large capitalinvestments would not be able to compete.Alternatively, if the U.S. market were

flooded with inexpensive imports thatwere nearly perfect substitutes, hybridproducers could be in trouble.

Although aquaculture may be sensitiveto changes in the wild fisheries andimports, it is of growing importance toVirginia. Thacker (1994), in an analysis ofthe economic impacts of aquaculture onthe Eastern Shore of Virginia, estimatedthat clam aquaculture in 1992 generatedfull-time employment for 45 individuals.Soft shell crab aquaculture was estimatedto generate employment for more than200 individuals in Virginia�s Eastern Shoresoft-shell crab businesses.

In Virginia, numerous products

are raised or produced by

aquaculture methods. The

largest product in terms of sales

is hard clams.

36

37

verall, Virginia�s workforce is a relatively well-educated and diverse group.Slightly more than 3.0 million individuals are employed in Virginia and just under one-half are females. The unemployment rate is a little less than 4.5 percent. There is alsoa large number of military bases in Virginia; more than 182,000 active military person-nel and 84,000 civilian employees work on military installations in Virginia. Theaverage annual pay in Virginia is about $25,000 per year. Relative to the approximately4 million individuals 25 years of age and older and living in Virginia, nearly 75 percentgraduated from high school and approximately 25 percent graduated from college.

The median annual family income, the level at which about 50 percent of thefamilies have higher family incomes and 50 percent of the families have lower incomes,is $38,283. Approximately 12 percent of Virginia households have incomes in excess of$75,000, and nearly 40 percent of the households have family incomes below $25,000per year. The per capita personal income was $19,701 (personal income equals the totalvalue of all goods and services produced in the state plus income from other nationsand personal interest income less payments to other nations, consumption of fixedcapital, indirect business taxes, corporate profits, interest payments, and social insur-ance).

Excluding government agencies and employees, railroad workers, and self-employedindividuals, Virginia has a total of approximately 156,000 business establishments.About 2.4 million individuals were employed by the 156,000 businesses in 1994. Therewas a total annual payroll of nearly $60 billion; this translates into an average pay perperson of $24,000 per year.

Relative to major industry groupings for Virginia�agriculture, manufacturing,wholesale and retail trade, finance and insurance and real estate, health services, public

The Industry, The People,And The Communities

Virginia�s Workforce

OThe total ex-vessel or dockside

value of fisheries, including the

menhaden fishery, exceeded

$100 million in 1994.

38

administration�manufacturing, wholesaleand retail trade, and public administra-tion accounted for 44 percent of allemployment in 1994. Agriculture, whichalso includes some sectors of forestry andfisheries, accounted for slightly more thantwo percent of total statewide employmentin 1994.

Overall, approximately 31 full-timejobs are generated per million dollars oflanded finfish and shellfish in Virginia.Thus, Virginia�s harvesting sector pro-vided full-time employment opportunitiesfor an estimated 2,724 individuals in1994. If all markets and economic sectorsare considered, the fishing industry ofVirginia provided 10,798 person-years ofemployment in 1994.

The total value of goods and servicesproduced by Virginia exceeded $142billion in 1994. Four basic industrygroups�manufacturing, finance andinsurance and real estate, services, andgovernment�were responsible for 70percent of the total value of production.Agriculture accounted for about 1.5percent of the total value of all goods andservices produced in Virginia in 1994.

Virginia agriculture, a major source ofprotein production, had total sales inexcess of $1.6 billion in 1994. The

average value of product sold per Virginiafarm was slightly more than $36,000. Thetotal ex-vessel or dockside value of fisher-ies, including the menhaden fishery,exceeded $85 million in 1994. It shouldbe remembered that there were more than44,000 farms in Virginia in 1994; less than15,000 different licenses were issued tofishermen in 1994 and many fishermenwere required to obtain more than onelicense.

Virginia has 105 counties and inde-pendent cities or places called city. EveryVirginia county and city has some type ofreported agriculture, but not all countieshave forestry and fisheries production.The Virginia Marine Resources Commis-sion maintains information on fisherylandings and dockside values for approxi-mately 45 Virginia counties or cities.

Relative to the 45 counties and cities,only one county had the landed value offish exceeding the value of agriculturalproducts sold in 1987 (the most currentdata available on agriculture). YorkCounty, which for agricultural reportingpurposes also includes the cities ofHampton, Poquoson, and Newport News,had landings with a higher value thanagricultural products sold in 1987.Counties with significant landed valuerelative to the value of agricultural prod-ucts sold in 1987 included Chesapeake,Norfolk, Portsmouth, Gloucester,Lancaster, Mathews, and Northumberland.

Alice Jane Lippson

39

The workforce dependent upon theVirginia seafood industry is a diverse lot.The education level ranges from individu-als with less than a sixth grade educationto ones possessing a doctorate. Numerousindividuals work part-time and full time atfishing. In recent years, there has been aninflux of individuals pursuing fishing as asecond career. Commercial fishing alsoprovides supplemental income for manyretired individuals; for many, commercialfishing is an activity that offers someincome without a substantial capital outlayor large investment.

The Virginia waterman is older thanthe typical Virginia worker. The averageage for a Virginia fisherman is 51 years;the typical age of a worker in the overallworkforce of Virginia is between 25 and 44years. Most Virginia watermen are between40 and 69 years old, with some individu-als being over ninety years of age (Figure9). In contrast, some fishermen are intheir teens; the minimum age is aboutthirteen years old.

The average number of years ofexperience for a working waterman is 25years. Approximately ten percent of thefishermen have more than 50 years ofexperience working the water. Sevenpercent of the watermen were relativelynew to fishing in 1994 and thus had less

than one year of experience as commercialfishermen (Figure 10). Sixty-four percentof Virginia�s commercial fishermen hadless than twenty years of experience.

Individuals earning a living fromcommercial fishing in Virginia are rela-tively well educated. Nearly 70 percent ofthe commercial fishermen have a high-school education or higher (Figure 11).Ten percent of the fishermen graduatedfrom college. Relative to the state popula-tion of individuals 25 years or older, 75

percent of the individuals graduated fromhigh school; thus, the education attain-ment by watermen is comparable to thatfor the state workforce.

For the interested individuals, thereare female commercial harvesters withinthe Commonwealth. Approximately 2percent of commercial harvesters arefemale while 98 percent are male (Figure12). The female harvesters mostly workthe inshore or Bay fisheries of Virginia.

The Fisheries Workforce

40

Nearly 75 percent of commercialharvesters are married or supportingdependents (Figure 14). Approximately46 percent of the harvesters have 2 ormore dependents. Overall, the numberof individuals in a household with

statistics could, though, reflect a bias inthe sampling scheme. In mail surveys, thesample strategy used to obtain informationfor this report, there tends to be a dispro-portionate rate of non-response by minori-ties.

A majority of the harvesters are whiteor Caucasian. Only two percent ofVirginia watermen are black or AfricanAmerican. Approximately one percent ofthe harvesters are Asian American andAmerican Indian (Figure 13). These

41

commercial harvesters is about equal tothat for the state. The average householdsize for commercial fishermen is 2.68while that for the state is 2.61.

What about the sources of householdincome? Not all household income comesfrom commercial fishing. Thirty-twopercent of commercial fishing householdsdepend exclusively on commercial fishingfor household income. Sixty-eightpercent of Virginia harvesters work otherjobs to support themselves and theirfamilies. Approximately 27 percent of thefishing households have spouses that workand help support the family. On average,about 58 percent of the total householdincome comes from fishing, 7 percentcomes from a spouse working, 34 percentis derived from a second job, and lessthan one percent comes from othersources (Figure 15).

The fact that watermen households donot receive 100 percent of the householdincome from fishing should not besurprising. In our society, more than onefamily member, particularly husband andwife, both work. In the inshore or Bayfisheries of Virginia, approximately 32percent of Virginia commercial fishinglicense holders are full time; 68 percent ofthe license holders obtain income byworking other jobs during a year. In theoffshore fisheries, nearly all incomeearned by a fisherman is derived fromcommercial fishing.

A question that is often of interest toindividuals is what kind of money does a

fisherman make. In order to address thisquestion, it is necessary to consider threebroad groups: (1) the owner/operator, (2)the hired or self-employed captain, and(3) the crew member or deck hand. It also

is important to realize that fishing, likefarming, is a business in which productiv-ity and good luck are reflected in thepaycheck.

42

Most commercial fisheries distrib-ute earnings according to a lay-systemor formula. The formula typicallyvaries by fishery and often by vessel.Under a lay-system, captain and crewoften receive a percentage of totalvalue of the product sold. In somefisheries, the captain and crew mustpay all or most trip-related costs. Inother fisheries, the captain and crewmay be guaranteed a minimumamount per day or per trip or apercentage of the quantity caught.

In 1994, the average return to anowner/operator (captain who also ownsthe fishing boat) was about $31,000.Yet, earnings for some owner/operatorsexceeded $550,000 per year. Captainsearned an average $19,451 in 1994,and crew received an average of$17,860 per year. The range ofcaptain�s income was $80 to over$100,000, while the range for crew was$75 to $87,032 per year in 1994.Total average earnings or earnings perVirginia worker in all jobs in 1994 was$20,624.

43

All too often, the communities depen-dent upon commercial fishing are over-looked. It is comfortable to assess theeconomic importance of fishing relative tothe big picture or economic impacts at thestate level. With this type of assessment,the commercial fishing industry does notappear to be very important. Totalearnings at the state level are approxi-mately $100 billion. Total earnings forself-employed fishermen, miners, andother self-employed individuals are lessthan $7 billion. Total employment at thestate level is 3.2 million individuals, withall self employed individuals contributingless than 45,000 jobs.

The real picture, of course, is howmany jobs and how much income doesfisheries contribute. In general, $1million of landed product generates full-time employment for about 31 individualsper year in harvesting or supportingsectors. In addition, $1 million of landedproduct generates approximately $2.17million in total community value. Forsome coastal communities, the number ofjobs and income generated from commer-cial fishing is quite important becausethere are few alternative employmentopportunities.

The Virginia Marine ResourcesCommission monitors fishing activity at45 counties, cities, or communities (Table19). The major Virginia fishing communi-

ties relative to value of landed product arethe cities of Hampton and Newport News,and York County. Excluding the value ofmenhaden, Hampton, Newport News, andYork County account for 70 percent of theex-vessel value of all species landed inVirginia.

Hampton, Newport News, and YorkCounty all have fishing fleets whichharvest scallops. In 1994, sea scallopswere responsible for 74, 69, and 60percent of the landed value at Hampton,Newport News, and York County, respec-tively. These three areas, alone, generatedfull-time employment opportunities forabout 4,730 individuals in Virginia.

The three major fishing port areas areall mostly urban areas, although YorkCounty does have some rural areas. Totalemployee or worker earnings paid inHampton, Newport News, and YorkCounty were, respectively, $468 million,$2.8 billion, and $1.9 billion. All threeareas have some economic dependency onmanufacturing, businesses that mechani-cally or chemically transform substances ormaterials into new products, whichincludes fish processing. Governmentand services account for 58 and 69percent of total earnings in York Countyand Hampton, Virginia. Manufacturingand government account for 62 percent oftotal earnings in Newport News.

In comparison, the smaller and morerural fishing counties and communitieshave less dependency on government andmore on manufacturing, agriculture,forestry, and fisheries. Accomack, whichhas a large fishing community and lands63 different species, realizes about 34percent of total earnings from manufactur-ing; services account for 66 percent oftotal earnings. In Northumberland, homeof the menhaden processors, manufactur-ing accounts for 46 percent of totalearnings received by workers.

Communities like Gloucester andMathews have relatively large Bay-basedfisheries but only have a modest depen-dency on manufacturing. About 82 and70 percent of total earnings received byworkers in Gloucester and Mathews,respectively, was earned from service-basedindustries or employment opportunities.

Even though the commercial fisheriesdo not appear to have large contributionsto overall employment and earningsopportunities, it should be realized thatVirginia fisheries do contribute to the stateeconomy and are of substantial impor-tance to the economies of some coastalcommunities. A small county likeAccomack, which has a population of only32,200 individuals, has fishing activitieswhich generate full-time employment for848 individuals throughout the state infishing, restaurants, wholesaling, process-

The Fishing Communities

44

Table 19. Economic Characteristics of Selected Virginia Fishing Communities, 1994

County/ Population Major Industry Total Average No. of Major Species in Landed Full-time VirginiaCommunity (thousands) In Terms of Employment Earnings Species Terms of Value Value Employment

Earnings (thousands) Per Worker Landed Generated byFishing

Accomack 32.2 Manufacturing 16.1 $19,154 63 Blue crab 6,882,110 848Charles 6.6 Government 1.5 17,170 6 Catfish 8,498 1Norfolk 246.3 Military 89.6 26,694 48 Summer Flounder 1,461,447 180Chesapeake 173.5 Services 72.4 21,399 2 Blue crab 30,716 4Essex 9.1 Services 5.1 16,837 3 Blue crab 89,856 11Fairfax 896.8 Services 554.4 34,312 5 Catfish 69,617 9Hampton 138.9 Government 74.6 24,888 69 Scallops 17,059,928 2103Gloucester 32.3 Services 10.6 15,964 30 Blue crab 4,853,196 599James 50.2 Services 39.1 21,289 5 Blue crab 218,002 27King George 14.9 Government 9.5 30,099 8 Blue crab 242,893 30King William 11.9 Manufacturing 4.8 25,229 3 Blue crab 68,393 8Lancaster 11.0 Services 5.7 17,080 27 Blue crab 1,489,908 184Mathews 8.6 Services 2.3 14,797 32 Blue crab 4,104,513 506Middlesex 9.1 Services 3.7 15,852 13 Blue crab 1,031,988 127New Kent 11.1 Services 2.9 18,276 3 Gizzard shad 108,398 13Northampton 13.0 Services 5.7 18,740 52 Blue crab 2,692,177 332Northumberland 11.0 Manufacturing 3.9 18,300 28 Menhaden 20,436,975 2,520Prince George 51.2 Government 28.7 28,439 1 Catfish 56,269 6Virginia Beach 425.4 Services 197.5 21,002 42 Blue crab 1,323,772 163Prince William 273.1 Retail 107.5 24,170 5 Blue crab 51,477 6Richmond 7.4 Government 3.5 19,325 15 Eel 392,694 48Stafford 73.3 Services 20.4 21,274 14 Blue crab 418,845 52Westmoreland 16.1 Services 4.8 14,179 20 Blue crab 1,527,922 188York 61.6 Services 21.1 22,163 33 Scallops 7,668,129 945Newport News 176.9 Manufacturing 105.3 26,280 57 Scallops 13,639,243 1,682Chesterfield 209.3 Manufacturing 113.7 19,765 1 Catfish 38,829 5Portsmouth 104.0 Government 42.1 na 2 Blue crab 140,332 17Isle of Wight 25.1 Manufacturing 11.7 25,477 5 Blue crab 266,536 33King & Queen 6.3 Manufacturing 2.9 7,810 2 Blue crab 27,345 3Suffolk 52.1 Services 22.5 na 2 Blue crab 395,745 49Surry 6.1 NA 2.7 na 2 Catfish 27,148 3Virginia 6,473.0 Services 3734.0 26,409 75+ Scallops 101,245,000 10,798a - Landed value reported by National Marine Fisheries Serviceb - Based on Virginia Marine Resources reported landed value of $87,584,647

ing, retail sales, and support industries. Acommunity like Hampton relies onservice-based industries for nearly 90percent of total earnings and has fishingactivities which generate full-time employ-

ment opportunities for about 2,103individuals in the harvesting sector.

Each of the three major fishingcommunities also has many species

landed as compared to some fishingcommunities which have few specieslanded. Hampton leads the state in termsof number of different species landed;approximately 69 different species are

a b

45

regularly landed in Hampton. AccomackCounty is second with 63 different specieslanded. Newport News has the thirdhighest number of different specieslanded. Other communities or countieswith a diverse number of species regularlylanded include Norfolk, Gloucester,Lancaster, Mathews, Northampton,Northumberland, and Virginia Beach.

Yet, when the various communities arecompared to each other, there are substan-tial differences. For example, Hamptonand Newport News are primarily urbanareas while Accomack and numerousother communities are largely rural. Thenthere are the in-between communitiessuch as Gloucester and Mathews, whichare neither rural or urban.

Accomack, like many of the otherfishing communities, is quite different interms of fisheries and economic structurethan either Hampton or Newport News.In Accomack, blue crabs account for about55 percent of the total landed value. Bluecrabs, quahogs, spot, and croaker accountfor 79 percent of the landed value. Spotcontribute more than 6 percent to totalex-vessel, landed, or first-sale value inAccomack. Gray seatrout account forabout 1.5 percent of the total landed valuein Accomack. In Hampton, 83 percent ofthe total landed value is due to seascallops and five species of flounderwhich are harvested mostly in the offshorefisheries. Blue crab, which is primarilyharvested inshore, accounts for 5.2percent of the total landed value in

Hampton; yet, Hampton is home to themajor crab picking and processingfacilities of Virginia. Newport News issimilar to Hampton; sea scallops andmixed flounder account for 79 percent ofthe total landed value and blue crabs makeup 6.9 percent of the total landed value.

Between 1986 and 1988, Accomackand numerous other communities weremajor fishing communities in Virginia.Total landed value at Accomack Countywas $10 and $9 million in 1986 and 1988.The total landed value in Hampton andNewport News in 1986 was $10.9 millionand $9.0 million, respectively. Landedvalues for the two communities of Hamp-ton and Newport News in 1988 were,respectively, $15.4 million and $11.4million.

What eventually happened toAccomack to cause such a large decline inlanded value? In 1990, the large, off-shore, surf clam fleet left Accomack. Priorto 1990, surf clams and ocean quahogsaccounted for about 36 percent of the totalannual landed value. Sea scallops andblue crabs also accounted for a large shareof total landed value in Accomack. In1994, surf clam landings in Accomackwere 0.0 pounds. Blue crabs accountedfor 55 percent of the total landed value.Sea scallops accounted for only 0.02percent of total landed value in 1994; in1988, scallops were responsible for 6percent of the total ex-vessel value inAccomack.

During the early 1970s, NorthamptonCounty was a major fishing community inthe state. In 1974, Northampton ac-counted for 21.4 percent of the state widelanded value of finfish and shellfish (Table20). In 1994, Northampton contributed ameager 2.6 percent to total landed value.Northampton, like Accomack, sufferedfrom the exit of the surf clam and oceanquahog fishing vessels and processors. In1974, surf clams accounted for 81 percentof the total landed value at Northampton.In 1994, croaker, spot, blue crabs, andhard clams accounted for 83 percent ofthe landed value at Northampton. Yet, 52different species were landed atNorthampton in 1994.

Northumberland is another majorfishing community of Virginia. Thecounty is relatively rural with a populationof only 11,000. In terms of commercialfishing activities, one might think of thecounty as having limited fishing opportu-nities. This is because the primary fisheryoperating out of the county is menhadenand there are only two companies whichregularly land menhaden.

In 1974, the landed value of all finfishand shellfish, excluding menhaden, was$1,839,459 for Northumberland. Ifmenhaden landings are included, thetotal landed value increases to $13 millionwhich equals nearly 37 percent of the totallanded value in Virginia in 1974. In1994, the total landed value equaled $21million or 21 percent of the total landedvalue in Virginia.

46

Table 20. Dockside Value of Selected Virginia Fishing Communities

County/Community 1974 1980 1985 1994

Accomack 1,900,210 9,841,711 8,924,234 6,882,110Charles 56,183 0 0 8,498Norfolk 1,514,916 271,669 2,433,363 1,461,447Chesapeake 0 1,218 0 30,716Essex 78,625 7,151 17,205 89,856Fairfax 164 13,441 8,447 69,617Hampton 2,506,609 19,351,585 8,006,231 17,059,928Gloucester 1,409,121 3,006,614 2,191,581 4,853,196James 391,767 122,762 92,367 218,002King Georges 108,346 266,250 122,214 242,893King William 24,465 12,913 42,564 68,393Lancaster 1,898,501 2,807,135 2,523,784 1,489,908Mathews 1,263,194 1,622,213 2,334,015 4,104,513Middlesex 686,877 1,365,326 918,378 1,031,988New Kent 0 276,584 11,508 108,398Northampton 7,627,292 3,710,501 4,751,060 2,692,177Northumberland 12,785,747 27,294,635 27,771,511 20,436,975Prince George 0 0 0 56,269Virginia Beach 214,871 1,079,187 782,813 1,323,772Richmond 657,096 393,106 329,058 392,694Stafford 53,766 232,640 126,978 418,845Westmoreland 1,055,915 2,185,300 1,654,112 1,527,922York 502,469 4,907,075 8,910,301 7,668,129Newport News 1,226,055 7,585,245 4,553,335 13,639,243Prince William 1,616 108,005 117,890 51,477Chesterfield 0 0 0 38,829Portsmouth 825 521,987 69,266 140,332Isle of Wight 97,090 231,145 207,663 266,536King & Queen 14,727 0 0 27,345Suffolk 66,703 33,052 4,160 395,745Surry 0 0 0 27,148Virginia 35,667,000 84,993,000 76,535,000 101,245,000

The major species landed atNorthumberland, excluding menhaden,are quahogs, blue crabs, striped bass,spot, sea trout, flounder, and croaker. Thelanded value of all these species combinedaccount for 96 percent of the landed valueof all species other than menhaden.

After counties like Accomack,Northampton, and Northumberland,

there is a real hodgepodge of fishingcommunities. For example, ChesterfieldCounty reported total landings worth $28thousand and consisting solely of catfish.Some fishing communities, like Ports-mouth, have exhibited extreme variationin the number and value of species landedsince 1973. In 1973, blue crabs andoysters were the only species landed in

Portsmouth; the total landed value was$14,021. In 1980, 23 different specieswere landed with a total ex-vessel value of$521,987; no oysters or blue crabs werelanded in 1980 in the city of Portsmouth.In 1994, eleven species were landed inPortsmouth; the total landed value was$104,339 with blue crabs accounting for91 percent of the landed value. Then,there are the fishing communities likethose of Gloucester County in which adiverse number of species are regularlylanded, but the landed values are rela-tively stable and low; the landed value inGloucester has traditionally been between$2 and $3 million per year since 1973.

As previously indicated, there are alimited number of species which accountfor a majority of the landed value offinfish and shellfish in Virginia. Bluecrabs, menhaden, spot, croaker, summerflounder, hard clams, oysters, and seascallops are the primary species in termsof value. Blue crabs and sea scallops,alone, account for 56 percent of the totallanded value. Summer flounder accountsfor approximately 5 percent of the totallanded value. Combined, all of the abovespecies account for 93 percent of the totalstate-wide ex-vessel value.

Value is not a constant; it is dependentupon demand and supply conditionsthroughout the world, resource andclimatic conditions, fisheries managementand regulation, and prevailing economicconditions. A large influx or supply ofclose substitutes for any one species can

47

quickly depress the prices and valuesreceived by fishermen. For example, theprice received by fishermen for blue crabsdeclined 14 percent between 1990 and1992 but increased 46 percent between1992 and 1994. The supply of potentialsubstitute products increased by 55percent between 1992 and 1994.

How are each of the fishing communi-ties dependent upon the various species?Alternatively, what might happen to thepotential source of fishermen�s income iffor some reason fishermen could nolonger harvest a particular species? Insome communities, loss of the ability toharvest certain species would nearly shutdown the local fishing industry.

Loss of access to blue crab could havea significant impact on employmentopportunities for fishermen in severalcommunities. In 1994, total landed valuein Accomack was $6.8 million; blue crabsaccounted for 55 percent of the totallanded value. Coincidentally, full-timeemployment opportunities for approxi-mately 585 individuals in Virginia wouldbe lost. Alternately, approximately 77person years of employment in harvestingwould be lost. In communities likeMathews and Gloucester, loss of harvestingopportunities for blue crabs would gener-ate short-term unemployment for about 69and 60 percent of the working watermen.In Northampton, Northumberland, andYork counties, full-time employmentopportunities in harvesting would bedecreased by 60, 8.5, and 26 percent,

respectively, if blue crabs could not beharvested.

In some communities, loss of access toblue crabs would have a minimal impacton the harvesting sector but possiblesignificant impacts on processing andwholesaling. Hampton would lose aboutsix percent of its watermen if the blue crabcatch declined to zero. On the otherhand, several companies which processand depend on blue crabs for all of theirbusiness would be substantially affected.

What about the species dependencyover time? How has the species composi-tion and quantity of landings changedover time relative to the various fishingcommunities?

Relative to 1974, the quantity oflandings has declined in most communi-ties (Table 20). Exceptions include Hamp-ton, New Kent, Stafford, York, NewportNews, Portsmouth, Prince George, Ches-terfield, Chesapeake, Fairfax, Hanover,Isle of Wight, and Suffolk. Hampton,Newport News, and York experiencedsubstantial growth in the offshore seascallop and summer flounder fisheries.All of the other communities, except NewKent, which had increased landingsexperienced growth in the blue crabfishery. New Kent has increased landings,of gizzard shad. In recent years, all thecounties have experienced substantialdeclines in the landings of blue crabs.

Over time, there has been a shift inthe diversity of species. In 1974, blue

crab was the primary species landed inseven Virginia fishing communities. Seascallops was not a major species for anyfishing community. In 1994, blue crabwas the major species of 18 fishingcommunities and sea scallops accountedfor the majority of landed value in threecommunities�Newport News, York, andHampton.

Overall, sea scallops, menhaden, andblue crabs contribute the greatest value tothe state and to the coastal fishing com-munities. Relative to the landed value ofall species, except menhaden, blue crabsand sea scallops accounted for 77 percentof the state�s ex-vessel or landed value in1994. Eighteen Virginia fishing commu-nities derived a plurality of ex-vessel valuefrom blue crabs. Three communitiesdepended primarily on sea scallops. Thecatfish fishery, a relatively small statefishery, was the most important species inex-vessel value terms to four communitiesin 1994.

Virginia�s fishing communities arequite diverse. Even though a limitednumber of species support the bulk of thecommercial fisheries, more than 75species are regularly landed among thevarious fishing communities of Virginia.Over time, as some resources have de-clined or experienced problems, Virginia�sfishermen have found alternative speciesto harvest and thus provided an importantand highly desired source of protein�Virginia seafood.

48

49

hen individuals think of the commercial seafood industry, they typically onlythink about the harvesting sector, the fishermen, and the fish being caught. Rarely dothey consider processing, wholesaling, restaurants, grocery stores, and other retail sales.Yet, it is these sectors in which the bulk of the income is derived and jobs are created.

The National Marine Fisheries Service (NMFS) reports that there were approximately108 processors or wholesalers in Virginia in 1994. In actuality, there were probablyconsiderably more; a survey conducted for this study found more than 300, actually 348,wholesalers and primary processors in Virginia.

Unfortunately, the NMFS data on processed products and wholesalers are incom-plete. The data reporting system is purely voluntary, and NMFS is unable to obtain datafrom all processors and wholesalers.

The 108 processing plants and wholesalers reported by NMFS employed approxi-mately 2,300 individuals in 1994. Average annual earnings per full-time worker wasapproximately $14,351.20. Processing and wholesaling, alone, generated a payroll wellin excess of $30 million in 1994.

The products and species available from Virginia dealers and processors are quitediverse, and perhaps, too numerous to determine. From a Virginia dealer, you canobtain King crab from Alaska or Russia, shrimp from Thailand, mahi-mahi and seascallops from the Atlantic ocean, and blue crabs and oysters from the Chesapeake Bay;more than 98 species of finfish and shellfish are harvested in Virginia waters or areasnear the Virginia coastline.

More than 35 species available from local fisheries are regularly marketed in Virginia.It is not uncommon for a medium to large-size processor to carry more than 30 different

Virginia Seafood Processingand Wholesaling

WMore than 35 species available

from local fisheries are regu-

larly marketed in Virginia. It is

not uncommon for a medium to

large-size processor to carry

more than 30 different species

of local finfish and shellfish.

50

Table 21. Production, Sales, and Employment for Virginia Processors, 1994

Product Form/Species Number Employment Pounds of Sales of Price Perof Processed Processed PoundCompanies Product Product-$

Blue Crab 22 685 5,220,839 23,566,863 4.51Hard Clams 8 414 36,063,696 34,827,514 0.97Oysters 26 484 3,969,118 15,543,013 3.92Edible Finfish 5 92 667,830 1,934,093 2.90Edible Shellfish 49 1,516 44,154,078 75,937,626 1.72Industrial 7 688 191,788,082 56,347,018 0.13All Productsa 58 2,207 236,609,990 134,220,737 0.44

aProcessed products with and without menhaden. All price per pound and pounds of processed product information excludes processedmenhaden. Sales value or the value of processed products and the number of companies engaged in processing, however, includeprocessed menhaden. In 1994, menhaden processors produced approximately $24.2 million (73 thousand short tons) of fish meal, $5.5million (18.8 thousand metric tons) of fish oil, $1.1 million (6.9 thousand short tons) of solubles, and $0.36 million (quantity is unavailable)of other products.

Data Source: National Marine Fisheries Service. Data obtained on processing activities in Virginia by NMFS are based on a voluntary datacollection program. Data available on number of companies, employment, production, and value are, therefore, considerably lower thanactual numbers.

species of local finfish and shellfish.Typical product forms include live, fresh,frozen, canned, tray/vacuum pack, pas-teurized, prepared, partially prepared,breaded, and individual quick frozen.

Data available from NMFS indicatesthat there were 56 processing companiesin 1994. The 56 companies employed1,933 individuals and produced236,609,990 pounds of product, exclusiveof processed menhaden, worth$103,040,994. These 56 processingcompanies produced 35 individualproduct forms. The average price re-ceived per pound of processed productwas $0.44. If menhaden products areincluded, Virginia processors produced

$134.2 million of processed products in1994.

In terms of edible seafood products,the value of processed shellfish productsexceeded the value of processed finfishproducts by $74 million in 1994 (Table21). NMFS reports only five companiesengaged in processing edible finfish and49 companies processing edible shellfishin 1994.

The five companies processing ediblefinfish produced 667,830 pounds ofprocessed product in 1994. The averageprice per pound received by these proces-sors was $2.90; total revenue received forprocessed edible finfish products was $1.9

million. The five companies employed 92individuals in 1994.

The 49 companies which processededible shellfish in 1994 produced44,154,078 pounds of processed productswith a total value of $75,937,626. Theaverage price received for processed edibleshellfish products was $1.72. The 46companies employed 1,516 individuals.

The third category of processedproducts is industrial products. NMFSreports that five companies were engagedin processing industrial products in 1994.These statistics, however, omit two othercompanies which process fish and shell-fish for industrial purposes. All total, theseven companies produced more than 200

aa

a

51

million pounds of product and received$54 million in sales revenue. Productsproduced by these seven companiesinclude fish meal, oil, solubles, bait, andnumerous other products. The sevenindustrial processors employed 688individuals in 1994.

Excluding menhaden, the three majorspecies processed in Virginia are bluecrabs, hard clams, and oysters. Seascallops likely have the highest processedproduct value but areexcluded from the NMFSreporting system because ofconfidentiality; NMFS willnot release data on three orless companies.

Blue crabs, hard clams,and oysters accounted for 55percent�$73.9 million�ofthe value of all reportedprocessed products inVirginia during 1994.Processors produced 45.2million pounds of productsfrom the three species.Total employment generateddirectly from processing thethree species was 1,588individuals.

In 1994, approximately22 companies processedblue crab in Virginia. The22 companies produced 5.2million pounds of processedproducts worth $23.6million. The 22 companies

employed 685 individuals. The averageprice received per pound for processedblue crab products was $4.51.

Only eight companies reportedprocessing hard clams in Virginia in 1994.Clam processors produced 36 millionpounds of product with a total sales valueof $34.8 million. Processors of clamsemployed 414 individuals in 1994. Theaverage price received for processed clamproducts was $0.97 per pound.

Even though the wild oyster fishery ofVirginia has been negligible for the pastfive years, processors produced 3,969,118pounds of oyster products in 1994. Theyreceived slightly more than $15.5 millionin sales revenue. Processors of oystersallowed employment opportunities for 484individuals. The average price receivedfor processed oyster products was $3.92per pound.

52

53

ith the introduction of improved packaging and transportation, seafood hastruly become an international commodity. Today, the shrimp you eat at a restaurantmay have been shipped from Thailand, Ecuador, China, Mexico, or a host of othernations. The shrimp may have been grown on a farm in another country. If it isscallops you want, the chance is good that you will buy scallops produced in Canada,China, Peru, or Japan. Nearly 80 percent of tilapia in the U.S. market, an increasinglypopular species, is obtained from one farm in Columbia and one farm in Costa Rica.Trade has allowed American consumers to have a readily available supply of an ex-tremely diverse number of products, usually at reasonable prices.

The National Marine Fisheries Service provides regular production reports on theworld catch of fish, crustaceans, and mollusks for 39 foreign nations. The leadinginternational producer is China, followed by Peru and Japan. The United States ranksfifth in world production. Between 1989 and 1993, the world catch increased from100,115,000 to 101,418,000 metric tons. On a continent basis, Asia is the world leaderin seafood production. The commercial catch by Asia was 51,429,000 metric tons in1993, a number which equaled 51 percent of the world�s catch. South America andEurope are the 2nd and 3rd leading producers of seafood. North America ranks 4thand accounts for 8.7 percent of the world�s production of seafood.

International Seafood Tradeand Virginia

The World of Seafood

WIn the past ten years,

Virginia has become a

major player on the

international seafood

trading scene.

54

In 1994, the United States importedseafood and related products from morethan 200 nations. The total value of theimports was almost $12 billion, a 79.5percent increase over the value of importsin 1985 ($6.6 billion) (Table 22). TheUnited States collected $243 million induties assessed against the 1994 imports.The average annual rate of growth inimports was 6.9 percent between 1985 and1994. The top three nations from whichthe U.S. imported seafood were Thailand($1.7 billion), Canada ($1.6 billion), andItaly ($1.3 billion). For all the ballyhooabout China, the United States importedonly $358 million worth of seafood fromChina in 1994.

The single, edible, seafood producthaving the highest value among importsin 1994 was shrimp; the U.S. imported621 million pounds with an importedvalue of $2.65 billion. The leadingfishery commodity imported by theUnited States was nonedible fisheryproducts such as industrial-based productsand pet food. In 1994, the U.S. imported$5.25 billion worth of nonedible fisheryproducts.

The United States has consistently hada deficit balance of trade (the value of U.S.exports to foreign nations is less than thevalue of imports into the United States).

The U.S. Balance of Trade

Table 22. Value of U.S. Imports and Exports, $1,000s.

Year Value of Imports Value of Exports

1985 6,678,586 1,139,1771986 7,626,293 1,393,8081987 8,817,697 1,722,1101988 8,871,997 2,338,3871989 9,604,356 4,938,1411990 9,047,680 5,965,9391991 9,435,060 6,541,8081992 9,871,262 7,119,6321993 10,622,387 6,924,7241994 11,986,879 7,380,861

In 1994, the U.S. exported$7,380,861,000 worth of seafood productsto foreign nations or $4.6 billion less thanthe U.S. imported. Japan and Canadareceived $3.8 billion of U.S. exports,nearly 52 percent of the total U.S. ex-ports.

55

The major edible product exported bythe United States was salmon. In 1994,the U.S. exported $523 million worth ofsalmon. Nonedible fishery productexports, however, were valued at $4.2billion in 1994 and accounted for 57percent of the total U.S. exports.

Virginia and Foreign Trade

Table 23. Virginia Foreign Trade in Fishery Products,1985-1994

-----------------------------Dollars---------------------------------

Year Imports Exports Trade Balance

1985 61,126,981 6,634,254 -54,492,7271986 46,270,211 3,713,227 -42,556,9841987 65,554,926 6,498,394 -59,056,5321988 71,198,140 15,866,736 -55,331,4041989 93,669,466 56,002,613 -37,666,8531990 114,644,297 68,233,061 -46,411,2361991 116,622,521 86,445,652 -30,176,8691992 129,595,717 121,120,919 -8,474,7981993 110,138,886 128,118,753 17,979,8671994 112,438,050 141,318,987 28,880,937

In the past tenyears, Virginia hasbecome a major playeron the internationalseafood trading scene.In slightly less than adecade, the value ofexports has increasedto 21 times its value in1985. In 1985, Vir-ginia imported $61million worth ofseafood and relatedproducts from 38foreign nations andexported $6.6 million

to 15 foreign nations (Table 23). In1994, Virginia imported $112.4 millionfrom 48 nations while exporting $141.3million to 71 nations around the world(Figure 16). Virginia is the only state tohave a surplus balance of trade inseafood and related products.

Which nations are major tradingpartners with Virginia? In 1985, twelvenations exported more than $1,000,000per nation worth of fishery products toVirginia (Table 24). In 1990, 14 nationsexported more than $1,000,000 worth offishery products to Virginia. In 1994,the number of nations whose exportvalue to Virginia exceeded $1 millionincreased to 19. The top three nations

Figure 16. Virginia Foreign Trade in Seafood,1994.

Imports to VirginiaEqualed $112,438,050

Virginia is the ohnly state with surplus balance of trade inseafood and related; U.S. had a deficit balance of trade inseafood.

Exports to 71 Nations

Exports from Virginiato Foreign nations

Virginia SeafoodIndustry

U.S. Imports:$11,986,879,000

$141,318,987U.S. Exports:$7,380,861,000

In 1994, Virginia received imports from 48 nations

56

Table 24. Nations Exporting $1,000,000 or More to Virginia

Nation -------Value of Imports------------Dollars------1985 1990 1994

Ecuador 1,436,225Chile 1,825,012 2,061,181Brazil 20,888,270 27,317,048 17,162,100Uruguay 1,044,628 5,529,654Argentina 1,286,711 20,325,150 20,395,594Iceland 19,210,210 2,119,501 1,475,048Norway 1,176,400Denmark 2,685,976 4,740,917Netherlands 1,170,882France 2,517,787 2,093,007 1,470,045Germany 2,274,945 24,905,913 27,547,683Japan 1,854,539 1,115,291United Kingdom 1,247,309 1,513,243Belgium 6,187,558 4,605,427Switzerland 1,886,462India 4,289,109 2,618,348Bangladesh 1,719,327Thailand 6,555,382 2,984,234Philippines 2,485,970 1,181,564China 4,162,099 5,248,723South Korea 1,385,838Peru 2,372,240Faroe Island 1,652,008Ireland 2,732,566Italy 1,152,147

in terms of value of seafood products fromwhich Virginia imported in 1994 wereGermany, Argentina, and Brazil (Figure17). The top three nations which Virginiaexported seafood and related products towere Germany, Italy, and Japan.

What were the major products im-ported from other nations between 1985and 1994? In 1985, 13 products whosevalues exceeded $1 million were importedby Virginia. The number of $1 millionproducts imported by Virginia in 1990 was

17. In 1994, the number of importedproducts whose values exceeded $1million was 13.

In 1985, the majority of major prod-ucts imported by Virginia from othernations were for human consumption(e.g., fresh and frozen cod fillets, rocklobster tails, and shrimp). The fivehighest-valued import commodities in1985 were rock lobster tails ($10.8 mil-lion), groundfish fillets ($14.9 million),raw peeled and prepared shrimp ($8.7

million), seaweed ($687,234), and per-fumes and toilet water with alcohol ($4million).

During the 1990s, there was a changein the type of products Virginia importedfrom foreign nations. Rock lobster andshrimp were still imported in 1994, butincreasing amounts of flatfish wereimported. There was a mix of groundfishspecies imported in fillet form. Scallopsand canned tuna were also imported. Petfood, however, was the highest valuedcommodity imported in 1994. The fivehighest-valued commodities in 1994 were(1) pet food ($16 million), (2) flatfishfillets ($13 million), (3) rock lobster tails($11 million), (4) fillets made fromnumerous marine species ($10.8 million),and (5) seaweed ($7 million).

What about the nations to whichVirginia exports? In 1985, Virginiaexported to 15 nations. In 1990, thenumber of nations to which Virginiaexported increased to 59. Virginiaexported to 71 nations in 1994. In 1985,however, only the Netherlands importedmore than $1 million of fish productsfrom Virginia (Table 25). In 1990, therewere 15 nations which purchased $1million or more of fish products fromVirginia, and in 1994, 28 nations pur-chased $1 million or more of fish prod-ucts from Virginia. In 1994, 11 nationspurchased $5 million or more in fishproducts from Virginia (Figure 18).

57

Table 25. Nations Importing $1 Million or MoreFrom Virginia

Nation Value of Exports 1985 1990 1994----------------------Dollars-------------------

Netherlands 5,010,736 15,139,033 6,906,380Sweden 4,271,134 2,578,444United Kingdom 3,973,0295,384,210Belgium 4,882,719 8,053,833France 3,679,985 3,988,619Spain 1,602,841 7,189,397Italy 1,944,947 15,244,665Israel 1,119,667 1,677,104Saudi Arabia 1,960,626 5,012,295Thailand 2,869,098 2,437,018South Korea 2,040,587 6,999,964Taiwan 1,843,138 5,486,990Japan 7,905,591 9,387,126Australia 3,223,057 4,325,389New Zealand 1,235,017Brazil 2,472,993Argentina 2,198,580Norway 1,036,853Denmark 1,250,330Ireland 1,534,037Germany 18,600,305Austria 1,154,104Switzerland 3,456,943United Arab Emirates 1,981,881Malaysia 1,216,441Singapore 2,317,644Philippines 1,658,047Hong Kong 5,765,508South Africa 1,716,558

58

Who were the major nations and whatdid they purchase from Virginia? Majornations, in terms of value of productspurchased from Virginia, were the UnitedKingdom, the Netherlands, Belgium,Germany, Spain, Italy, Saudi Arabia,South Korea, Hong Kong, Taiwan, andJapan; in 1994, these nations eachpurchased $5 million or more in fishproducts. Eight other nations purchased$2 million or more in fish products fromVirginia.

Of the $94 million spent by the 11foreign nations on fish products fromVirginia in 1994, the major purchases werefor cat and dog food. The 11 nationsspent $26.8 million to obtain cat and dogfood from Virginia in 1994. They spent$16.3 million on saturated, acyclic,monocarboxylic acid, a substance used tomake margarine in some countries. Othermajor products obtained from the 11nations included organic surface, activeagents, fish leather, paints and varnishesof polymers, protein isolates, menhadenoil, prepared livestock feed, and perfumesand toilet waters. Of the 11 nations,Japan was the only nation which pur-chased more than $1 million of an edibleseafood product from Virginia; theJapanese obtained $2.1 million of frozencrab in 1994.

Unfortunately, export statistics pro-vided by the United States Department ofCommerce may be misleading. Exportsare attributed to the state from which theproduct is actually exported or shipped toa foreign nation. Many Virginia fishproducts (e.g., soft-shelled crabs, seascallops, flounder fillets, and mollusks)are shipped to other states because of cost

savings. In this latter case, Virginiaforeign shipments are credited to the statefrom which the product was shipped to aforeign nation.

59

The Economic Importance of Virginia�sFishing Industry

Economic Impact Measures

In 1994, approximately 6,433 individuals derived some level of income directlyfrom commercial harvesting activities in Virginia. In addition, more than 2,300individuals were employed in wholesaling and processing activities. The menhadenindustry alone employed 274 people to support shore-based activities. All in all, morethan 9,000 individuals were involved in the harvesting, processing, and wholesaling offinfish, shellfish, and related products in Virginia.

A strict count of the number of people employed in harvesting, processing andwholesaling, and in harvesting-related shoreside support activities, is quite misleadingin terms of the number of jobs which are, in some measure, dependent upon thefisheries. The commercial industry produces employment in restaurants, grocerystores and fish markets. In the case of a seafood restaurant, waiters, waitresses, chefs,and busboys are needed in the operation. The impact goes further: energy is used toprepare meals, and dinnerware and cookware must be purchased. Similarly, commer-cial fishing not only employs captains and crew; workers are needed to service theboats, the engines, and individuals are required for the maintenance of the extensivearray of electronic equipment which can often be found on many vessels. Grocerystores routinely include a seafood section, and that area employs personnel. Theextent to which a commercial fishing industry can have an impact on a community isfar-reaching. Here are just two examples: specialized insurance agents are employedto meet the needs of vessel owners; accountants are required to maintain financialrecords.

Less obvious than the jobs created in restaurants and groceries, are those found insome other sectors: in advertising, law, construction, oil refining, and marine research.Then, there is the even less obvious, next round of impacts: all sectors providing

In 1994, approximately 6,433

individuals derived some level of

income from harvesting activities in

Virginia (i.e., catching fish and

shellfish).

60

goods and services to the harvesting sectoror related market chains (e.g., processorsand restaurants) must purchase goods andservices from other businesses. This, inturn, generates more sales, employments,and income. People who earn incomefrom fishing�as well as the ones servingfish and customers from restaurants�buyhomes, purchase life insurance, go groceryshopping, take vacations, and pay utilitybills. These expenditures generate moreoutput, more income, and more employ-ment.

Measures of the economic impacts ofVirginia�s commercial fishing industryinclude total sales or output, income, andfull-time employment generated because ofcommercial fishing and related activitieswithin the state. Total output is a grossmeasure of economic activity which equatesto the total margin of businesses. Forexample, for a fishery product, the marginis the difference between the price paid forthe product by the consumer or wholesaledealer and the dockside or wholesale valuefor an equivalent weight of the product.Employment is simply person years ofemployment. Income includes all income(e.g., wages, salaries, bonuses, profits,commissions, and other income) earned byemployees and owners at the variousmarket levels.

At the same time that all levels ofimpact are included, we must deduct alleconomic activity occurring out of state(e.g., the value of processed products mayinclude raw materials purchased from out

of state). Any value exported out of stateor produced out of state and which doesnot have a discernible impact uponVirginia�s economy must be excluded fromour measures of the economic impacts onVirginia�s economy.

It should also be noted that at thesame time commercial fishing engenderswork opportunities, the nature of thatemployment may not be as straight-forward as it might be in other sectors.For example, many jobs are part-time orseasonal, and many watermen andoffshore fishermen work second jobs.Even though the loss of one job may seemsignificant, an individual losing his orher job in fishing may actually only loseone or two weeks of employment. Yet, forother people, losing a job in fishing maybe the equivalent of losing a career. Forthis reason, it is necessary in this report toconsider employment in terms of full-timeequivalent units (person years of employ-ment per year).

Determining ImpactsThe determination of economic

impacts or the importance of the fishingindustry to the economy of Virginia isquite complicated. In economic terms,three levels of impacts are consideredbased on what is called an input/outputmodel.

The input/output model is simply amethod for measuring or describing, inquantitative terms, the links among

industries, final expenditures by consum-ers, and primary inputs, such as labor, inan economy. For example, fishermenland $1 million of fish. In order to landthat $1 million, however, they had topurchase fuel, food, groceries, insurance,and pay income to crew. In turn, thecompany which sold the fuel to the vesselhad to purchase fuel from a refinery whichhad to purchase oil from an oil company.Each level of production�fishermen, fueldealer, refinery, and oil driller�also hadto purchase goods and services fromnumerous other sectors of the economy.The input/output model allows the flow ofthe transactions to be assessed in terms ofvalue of output, income generated, andemployment.

We formally measure output, income,and employment as follows: (1) output isthe gross receipts of businesses in harvest-ing, (2) output for wholesale and retailtrade businesses is the gross margin orgross receipts less the cost of goods sold;(3) income is payroll or earnings ofhouseholds and businesses, but excludesthe value of benefits; (4) employment isactually the number of annual average jobsemployed in a given business sector and isclose to the concept of full-time-equivalentemployment.

There are three levels of impacts whichare of concern: (1) direct, (2) indirect, and(3) induced. Direct impacts reflect output,income, and expenditures which occurdirectly from initial expenditures by

61

businesses. Indirect impacts reflect theoutput, income, and employment gener-ated throughout the economy of Virginiabecause businesses�while selling tofishermen, processors, and retailers�mustalso acquire goods and services. Theinduced impacts reflect the output,income, and employment generated inVirginia�s economy by the spending ofhousehold income by individuals em-ployed in fishing, wholesaling, retailing,and the various support industries.

Direct impacts reflect expenditureswhich are made solely in Virginia and arethus exclusive of expenditures made ongoods and services produced in otherstates. For example, Virginia fishermenspent, excluding wages and profit, $56.8million on goods and services in Virginiato produce $87.6 million worth of finfishand shellfish in 1994. When wages,returns on investment, and profit areincluded, total expenditures were thedockside value of $87.6 million. Expen-ditures, exclusive of wages and profit, bycommercial fishermen which actuallygenerated economic impacts for theVirginia economy totaled $31.3 million.If wages and profit are included, totalexpenditures which affected the Virginiaeconomy were $55.3 million.

In the case of retail and wholesaletrades, the value of products manufacturedoutside of Virginia are also excluded fromthe impacts expenditures. As an example,the direct impacts on employment reflectemployment in Virginia generated directly

by initial expenditures (e.g., number offishermen, number of individuals inprocessing plants, or number of peopleemployed in a retail store because ofselling fish to consumers).

Indirect impacts are a bit moredifficult to understand than direct im-pacts. In simple terms, indirect impactsmay be thought of as those impacts frombusinesses which support the directproducing sectors. For example, acompany which makes and sells fishinggear in Virginia requires raw materials andaccounting services for their business; theoutput, income, and employment gener-ated to the raw materials and accountingservice businesses are measures of theindirect impacts.

The induced impacts are perhaps themost complex to understand. An exampleof an induced impact would be the level ofoutput, income, and employment gener-ated by a fisherman having a houseconstructed or by purchasing groceries forat-home consumption. Alternatively,induced impacts reflect output, income,and employment generated in Virginia byhouseholds receiving income for anyfishing related expenditures.

For the purposes of this report, theharvesting sector direct output is measuredin terms of the output of the primary anddirect sectors which include the ex-vesselvalue of finfish and shellfish and the valueof output related to expenditures in theharvesting sector. Two levels of impactsare combined to reflect the direct impacts

of the harvesting sector: (1) the output orlanded value of the primary sector, and (2)the in-state impacts related to expendi-tures on harvesting activities. Alterna-tively, we follow the conventional defini-tion of direct impacts and define directoutput for the harvesting sector as the sumof the value of output, payroll, andexpenditures resulting directly from initialexpenditures by the harvesting sector.Purchases of goods and services from outof state suppliers are subtracted from themeasure of direct output.

Relative to the other sectors, the valueof output is excluded; for example, theoutput impacts related to processingreflect only the outputs generated bysuppliers of goods and services to supportprocessing. Alternatively, output for theother sectors is defined as a gross margin.The reason for excluding the value ofoutput from the other sectors is to avoiddouble-counting the value of landedfinfish and shellfish. For example, if thevalue of output of processors was included,the measure of output would include notonly the value of processed product butalso all expenditures on finfish andshellfish.

Assessing or understanding theincome impacts may also be confusing.This is because wages, salaries, compensa-tion, and profits are combined into oneincome measure and generate no impactsuntil they are spent by households. As anexample, consider wages and compensa-tion for the harvesting sector. In 1994,

62

captains, crew, and vessel owners received$30.8 million in the form of wages, profit,and other income. The payment to crewand vessel owners has no direct economicimpacts; it is only after crew and ownersmake purchases of goods and services thatimpacts are generated. Thus, the directand indirect impacts of wages, salaries,and profits equal zero; there are, however,induced impacts once households makeexpenditures on goods and services.

Another confusing aspect of income isthat for some sectors and level of impacts,income impacts exceed the value of outputimpacts. The fact that in some casesincome exceeds output does not mean thata particular sector is losing money.Remember that output for each impactlevel and sector, other than the harvestsector, is a margin and not the total valueof output. For example, Virginia proces-sors had total sales of $223.2 million andtotal expenditures on finfish and shellfishfrom Virginia harvesters and other whole-sales and processors equal to $87.5million. The direct Virginia output equalsthe value added or margin which is $223.2million less $87.5 million which equals$135.7 million less out-of-state expendi-tures ($17.8 million) and all wages, profit,and other compensation ($61.1 million).The total direct Virginia output thusequals $48.0 million.

In contrast, total direct Virginiaprocessor income was $86.9 million in1994, which did exceed the value of directoutput. In this instance, processors,

which are primary producers, must paywages and returns to sectors providinggoods and services to processors. There isthus a direct income component for theprocessing sector and the other sectors.The value of the output of the primarysectors is excluded from the outputmeasure of each sector.

Economic Impacts:Industry

Virginia�s fisheries are numerous andcomplex�too numerous and complex, infact, to present detailed analyses of theeconomic impacts on a fishery by fisheryor species by species basis. The examina-tion of the economic importance ofVirginia�s commercial fisheries are thuslimited to the major species and fisheriesor to aggregations of species and fisheries.Economic impacts are examined relativeto the following species or species group-ings: (1) blue crabs, (2) oysters, (3) cul-tured hard clams, (4) hard clams, (5) seascallops, (6) flounder, (7) industrial, and(8) other finfish, and (9) other shellfish.In order to simplify the analysis and avoidan extensive replication of numbers, weinitially present the impacts relative to thetotal commercial fishing industry ofVirginia. We then present the impactsrelative to each of the above listed speciesor species groupings.

The economic impact assessment isthus very limited and must be viewed asextremely conservative. Excluded from

the analysis are cultured finfish and surfclam processing. Also excluded from theanalysis is the sale of species caught byrecreational anglers. Certain products orspecies were excluded because appropriatedata could not be obtained or the researchdid not require an assessment of certainproducts.

State ImpactsIn 1994, the commercial harvesting

sector landed $87.6 million worth offinfish and shellfish in Virginia. In orderto produce $87.6 million worth of finfishand shellfish, harvesters spent, exclusiveof wages and profit, $56.8 million inVirginia. The major expenditure or costcategories were fuel and oil, and mainte-nance and repair (Table 26). Expendi-tures on gear and supplies were the thirdhighest cost category. Profits, wages, andcompensation to crew, captain, and boatowners equaled $30.8 million; in-stateexpenditures on wages, profits, andcompensation equaled $24 million.

Of the total cost, excluding wages andprofit, of $56.8 million, only $31.3million generated economic impacts forthe economy of Virginia. Including wagesand profits, the total expenditures by theharvesting sector which affected theVirginia economy in 1994 equaled $55.3million. The low in-state expenditure wasprimarily because of fuel, gear, andsupplies, which are manufactured mostlyout of state. For example, Virginiafishermen spent $12.6 million on fuel, but

63

Table 26. Harvesting Sector Expenditures, 1994

Expenditure or Direct In-State Expenditures .Cost Category or Local Expenses Affecting Virginia

Dollars Economy Dollars

Fuel and Oil 12,582,971 2,305,440Ice 1,691,180 1,663,829Bait2,578,344 658,379Food 2,300,782 1,260,901Repair and Maintenance 10,903,103 10,903,103Gear and Supplies 8,124,749 1,813,162Other Miscellaneous 4,890,125 3,687,063 PurchasesLicense and Permit Fees 1,662,816 1,662,816Docking Fees 693,772 693,772Insurance 3,793,444 2,986,416Interest Payments 2,986,416 2,636,747Depreciation 4,570,190 67,456Wages, Compensation, 24,029,270 24,029,270 and ProfitTotal 80,807,161 55,336,473

after adjusting the fuel expenditure forfuel supplies originating from out of state,only $2.3 million remained in state.

Processors purchased $48.8 millionworth of fish products from Virginiaharvesters and $38.7 million worth ofproducts from other Virginia suppliers offinfish and shellfish. Virginia processorsadded $135.8 million in value to the$87.5 million worth of purchased prod-ucts. Total sales by Virginia processorswere $223.2 million in 1994. Virginiaprocessors spent slightly more than $109million to process products in Virginia in1994. After deducting for goods andservices purchased outside of Virginia, the

total economic output of processingactivities on Virginia�s economy was$191.6 million in 1994.

Distributors purchased $65.8 millionof product from Virginia harvesters andother Virginia suppliers. They generated$9.2 million in value added, and had totalsales of $75 million. After deducting forall out of state expenditures, distributorshad a total economic impact on output of$14.5 million on the Virginia stateeconomy.

Retail operations, which includerestaurants and grocery stores, had totalsales of $78.1 million. Restaurantsacquired $18.9 million in seafood prod-

ucts and had total sales of $52.1 millionin seafood products. The total economicoutput for the Virginia economy generatedby restaurants serving seafood was $60.3million in 1994. Total sales by retailoperations, exclusive of restaurants, were$26.1 million in 1994. Excluding all outof state purchases of goods and services,the economic output for the Virginiaeconomy generated by seafood sales byretail food markets was $8.9 million in1994.

In 1994, the commercial fishingindustry of Virginia generated a totaloutput in Virginia of $465.4 million, atotal income of $326.7 million, and atotal employment of 10,798 full-time jobsor person-years of employment for theeconomy of Virginia (Figure 19). Asmight be expected, most of the jobs weregenerated from processing, wholesaling,and harvesting activities (Table 27).Restaurant activities provided the thirdhighest source of employment. Of thetotal 10,798 person years of employmentgenerated by the fishing industry, harvest-ing activities generated 2,724 person-years, processing and wholesaling wereresponsible for 5,488 person-years ofemployment, distributing generated 440person-years, restaurant activities provided1,863 person years, and retail food salescontributed 282 person-years of employ-ment to the Virginia economy.

The total direct output, employment,and income in Virginia associated with thecommercial fishing industry in 1994

64

amounted to, respectively, $183.7 million,5,497 person years of employment, and$166.7 million in income. Inducedimpacts, which are typically the largesteconomic impacts, in terms of output,employment, and income were $253.4million, 4,805 person years, and $143.2million in income. Indirect impacts,which are typically lower than the directand indirect impacts equaled $28.3million in output, 496 in person years ofemployment, and $16.9 million inincome.

As is typical of the fishing industry,the largest contributions to Virginia�seconomy by the fishing industry weregenerated by harvesting and processingactivities. In 1994, harvesting andprocessing activities, respectively, ac-counted for 82%, 77%, and 76% of totaloutput, income, and full-time employmentgenerated by the commercial fishingindustry.

In somewhat simpler and perhapsmore useful terms, for every $1 million inexpenditures by commercial fishing

activities, the economy ofVirginia has an output ofapproximately $5.3 million.There is a total payroll andprofit of $3.7 million, andtotal employment generatedin Virginia is 123.3 person-years of employment.

Impacts: Speciesand Fisheries

Although approximately50 different species of finfishand shellfish are regularlylanded by Virginia fishermen,only a limited number areimportant in terms ofdockside or landed value(Table 28). Blue crabs,menhaden, and sea scallopsaccount for 77 percent of thetotal landed value. If hardclams and summer flounder

dockside revenues are considered, the fivespecies account for about 89 percent of thetotal landed value of finfish and shellfish.

When the economic impacts areconsidered, a different story emerges. Forexample, oysters, which have been in aserious state of decline for several years,are the fourth most important specieswhen total output is considered. Oystersalso generate the third highest level ofincome and employment relative to allspecies landed in Virginia. Low-valuedfinfish is the fifth most important fishery

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Table 27. Economic Impacts of Virginia�s Commercial Fishing Industry

Impacta Harvesting Processing Distributing Food Retail CumulativeService Markets

Direct:Output-$b 117,088,794 47,955,813 3,068,151 13,736,488 1,841,209 183,690,455Income-$c 41,214,616 86,895,954 7,054,333 27,185,078 4,334,154 166,684,136Employment- 1,366 2,793 223 967 147 5,497 Person YearsIndirect:Output-$ 8,700,932 14,559,883 1,000,164 3,550,181 483,617 28,294,728Income-$ 5,062,618 8,713,867 635,536 2,179,852 296,650 16,888,524Employment- 159 244 20 65 9 496 Person YearsInduced:Output-$ 64,282,220 129,107,084 10,412,580 43,002,945 6,585,253 253,390,081Income-$ 36,314,933 72,940,620 5,882,820 24,294,664 3,720,432 143,154,470Employment- 1,200 2,451 197 830 126 4,805Total-Direct+Indirect+InducedOutput-$ 190,071,946 191,623,373 14,480,871 60,289,613 8,910,079 465,375,882Income-$ 82,591,932 168,550,570 13,572,630 53,659,505 8,351,232 326,725,869Employment- 2,724 5,488 440 1,863 282 10,798

aNumbers may not add to totals because of rounding errors.bOutput for all sectors other than the harvesting sector excludes the value of output for that sector and instead measures thevalue added by that sector.cWages, compensation, and profit are included for all sectors except the harvesting sector. This is because the harvesting,processing, distributing, retailing, and restaurant businesses are actually primary sectors which do not generate an incomeimpact until after they pay expenses which become direct sector impacts.

Table 28. Total Virginia State Impacts by Species: All Sectorsa

Species/Fishery Ex-vessel or Output Income Person-Years ofDockside Value Dollars Dollars Employment

Dollars

Blue Crabs 22,697,976 110,412,672 75,557,461 2,533Industrial 18,411,902 98,875,398 66,420,320 2,180Sea Scallops 26,621,774 94,028,650 57,556,335 1,908Oysters 812,387 73,144,605 67,104,118 2,203Low-value Finfish 6,878,953 30,241,003 19,156,927 620Hard Clams 5,934,974 26,851,536 18,657,533 618Flounder 4,116,796 19,575,592 13,155,050 434Moderate to High 1,221,491 6,579,099 4,858,330 160 Value FinfishOther Shellfish 755,574 5,009,437 3,810,569 127Sharks and Tuna, 132,820 657,890 449,227 15 LonglineTotal Virginia 87,584,647 465,375,882 326,725,869 10,798

aTotal impacts equals the sum of direct, indirect, and induced impacts over all sectors.

in terms of totaloutput, totalincome, andperson-years ofemployment. Low-value finfishinclude speciessuch as spot andcroaker and havean averagedockside price perpound of $0.34.On the other hand,the high-valuefinfish, such asstriped bass, trout,and seabass, are theeighth mostimportant in termsof output, income,and employment.The averagedockside price perpound for the high-value species is $0.75.

Blue Crabs Blue crab is recognized as the

foremost seafood by Virginia consumers.The total landed value of hard, soft, andpeeler blue crabs was $22.7 million in1994. Virginia watermen paid $15.2million or 67 percent of total docksidevalue just for fuel and crew to harvest bluecrabs in 1994. Of the total $22.7 millionlanded value in Virginia, Virginia proces-sors purchased only $12.6 million ofproduct from Virginia suppliers. Totalsales of blue crabs and related products inVirginia totaled $79.1 million in 1994.

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Table 29. Economic Impacts of Virginia�s Commercial Fishing Industry, Blue Crabs

Impacta Harvesting Processing Distributing Food Service Retail Markets CumulativeDirect:Output-$b 29,460,896 8,450,095 370,023 5,765,912 776,224 44,823,150Income-$c 9,621,819 14,622,985 850,761 11,410,979 1,827,209 38,333,753Employment- 332 468 27 406 62 1,294 Person YearsIndirect:Output-$ 1,922,260 2,728,595 120,621 1,490,194 203,885 6,465,556Income-$ 1,093,762 1,611,415 76,646 914,996 125,063 3,821,882Employment- 34 46 2 27 4 113 Person YearsInduced:Output-$ 15,287,492 21,753,849 1,255,769 18,050,553 2,776,235 59,123,899Income-$ 8,636,435 12,290,132 709,475 10,197,723 1,568,474 33,402,239Employment- 286 414 24 348 53 1,125 Person YearsTotal-Direct+Indirect+InducedOutput-$ 46,670,648 32,932,610 1,746,410 23,306,659 3,756,344 110,412,672Income-$ 19,351,714 28,524,467 1,636,875 22,523,364 3,520,744 75,557,461Employment- 651 927 53 782 119 2,533 Person Years


After adding the direct harvestingsector impacts to the dockside value, thetotal direct output of the harvesting sectoramounted to $29.5 million (Table 29).The direct person-years of employmentgenerated by the harvesting of blue crabswas 332. Relative to average annualincome per person-year in 1994, theharvesting sector generated $28,981.

After deducting for product eithershipped out of state or purchased out ofstate, the total output over all sectors was$110.4 million. The corresponding total

income and total employment generatedwithin Virginia equaled, respectively,$75.6 million and 2,533 person-years ofemployment. Total average per person-year of income generated from the crabfishery was $29,829.

As is typical of most industries, themajority of the economic impacts aregenerated by household expenditures byindividuals employed in the direct andindirect sectors. For example, the totalcumulative output of all direct sectors�harvesting, processing, distributing,

restaurants, andretail markets�was$44.8 million in1994. The totalcumulative output ofthe indirect orsupporting sectorswas only $6.5million. The outputgenerated byhousehold expendi-tures by individualsemployed in thedirect and indirectsectors, however,equaled $59.1million or nearly 54percent of the totaloutput of all sectorsand levels of impact(i.e., direct+indirect+induced).

Althoughhousehold expendi-

tures by individuals employed in thedirect and indirect sectors generated thelargest output, the greatest income wasgenerated by the direct sectors ($38.3million vs. $33.4 million). The directsectors also generated the highest level ofemployment. Out of the 1,294 person-years of employment generated by thedirect sectors, harvesting and processingactivities were responsible for 800 person-years or 61 percent of total employmentgenerated by the direct sectors. Relativeto total employment over all sectors, directharvesting and processing activities

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Table 30. Economic Impacts of Virginia�s Commercial Fishing Industry, Industrial Species

Impacta Harvesting Processing Distributing CumulativeDirect:Output-$b 24,628,640 14,789,099 1,539,024 40,956,762Income-$c 9,554,213 20,452,314 3,538,544 33,545,070Employment-Person years 329 653 112 1,094Indirect:Output-$ 2,149,110 4,271,200 501,695 6,922,005Income-$ 1,127,699 2,618,554 318,793 4,065,046Employment-Person years 35 73 10 118Induced:Output-$ 15,492,151 30,281,113 5,223,083 50,096,346Income-$ 8,751,909 17,107,160 2,950,898 28,809,966Employment-Person years 288 581 99 967Total-Direct+Indirect+InducedOutput-$ 42,269,900 49,341,708 7,263,789 98,875,398Income-$ 19,433,875 40,178,241 6,808,204 66,420,320Employment-Person years 652 1,307 220 2,180

aNumbers may not add to totals because of rounding errors.bOutput for all sectors other than the harvesting sector excludes the value of output for that sector and insteadmeasures the value added by that sector.cWages, compensation, and profit are included for all sectors except the harvesting sector. This is because theharvesting, processing, distributing, retailing, and restaurant businesses are actually primary sectors which donot generate an income impact until after they pay expenses which become direct sector impacts.

accounted for 32 percent of the totalemployment generated by blue crabs. Ifthe total of direct, indirect, and inducedis considered, the harvesting, processingand restaurant sectors accounted for 93percent of the total employment.

Industrial FishIndustrial species, primarily menha-

den, account for approximately 88 percentof total landings of all species by Virginiawatermen but only 21 percent of the totaldockside value. In 1994, Virginiawatermen spent approximately $9.4million or 51 percent of dockside value onfuel and crew to harvest $18.4 millionworth of industrial species. Virginiaprocessors of industrialproducts utilized only $11.7million worth of docksidelandings in Virginia; the restof the $18.4 million ofproduct landed in Virginiawas either sold as bait orshipped out of state foradditional processing. Totalsales of industrial speciesand related products inVirginia were $80.1 millionin 1994.

The total direct harvest-ing sector output equaled$24.6 million (Table 30).Total direct income gener-ated by the harvesting sectorwas $9.6 million and the

number of person-years of employmentwas 329. The average annual income forthe direct sectors was $29,040 in 1994.

Deducting for out of state purchasesand sales, the total output for the Virginiaeconomy generated by the industrialfishery was $98.9 million in 1994. Thecorresponding total income and employ-ment were, respectively, $66.4 million and2,180 person-years. The average perperson-year of income amounted to$30,468.

There is no food service or retailmarket components for the industrialspecies. All impacts are generated only byharvesting, processing, and distributing

activities. The cumulative or total directoutput, income, and employment gener-ated by industrial species equaled, respec-tively, $41 million, $33.5 million, and1,094 person-years.

In comparison, the total output,income, and employment generated bythe indirect sectors were, respectively, $6.9million, $4.1 million, and 118 person-years. Of the total indirect output,income, and employment, processingactivities, respectively, accounted for 62,64, and 61 percent.

Expenditures by households employedin the direct and indirect sectors gener-ated the highest output but not the

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Table 31. Economic Impacts of Virginia�s Commercial Fishing Industry, Sea Scallops

Impacta Harvesting Processing Distributing Food Service Retail Markets CumulativeDirect:Output-$b 36,565,758 2,271,584 447,103 4,352,659 580,916 44,398,020Income-$c 12,417,392 5,528,642 1,027,984 8,970,320 1,367,460 29,311,798Employment- 393 179 33 319 46 970 Person yearsIndirect:Output-$ 2,719,760 704,566 145,748 1,171,461 152,585 4,894,119Income-$ 1,652,265 413,005 92,613 719,291 93,596 2,970,769Employment- 52 11 3 22 3 91 Person YearsInduced:Output-$ 18,725,187 8,226,466 1,517,361 14,189,776 2,077,700 44,736,489Income-$ 10,578,251 4,647,748 857,267 8,016,564 1,173,826 25,273,656Employment- 350 155 29 274 40 847 Person YearsTotal-Direct+Indirect+InducedOutput-$ 58,010,704 11,202,640 2,110,208 19,893,896 2,811,202 94,028,650Income-$ 24,648,074 10,589,380 1,977,855 17,706,145 2,634,881 57,556,335Employment- 795 345 64 615 89 1,908 Person Years


highest income or employment. Totalinduced output was $50.1 million; totalincome and employment generated by theindustrial fishery were $28.8 million and967 person-years. Induced employmentaccounted for 44 percent of the totalemployment generated by the industrialfishery and related activities, and directemployment was 50 percent of the totalperson-years of employment.

Relative to the total of direct, indirect,and induced impacts, harvesting andprocessing were responsible for 1,959person-years of the 2,180 person-years of

employment generated by the industrialfishery. These two sectors accounted for93 percent of the total output and 90percent of the total income associated withthe fishery.

Sea ScallopsThe sea scallop fishery is an offshore

fishery of Virginia. Of all the Virginiafisheries, the sea scallop fishery has thehighest landed or dockside value. It alsois probably the most labor intensivefishery because of the need to shuckscallop meats at sea. In 1994, the

dockside or ex-vessel value was $26.6million. In order to land 6.1 millionpounds or $26.6 million worth of scallopmeats, Virginia scallop vessel owners spent$12 million just on fuel and crew in 1994.

The economic contributions of seascallops rank third among all the specieslanded in Virginia. In 1994, the totaloutput, income, and person-years ofemployment generated by all activities inall sectors equaled, respectively, $94million, $66.4 million, and 1,908 (Table31). Unlike many of the other species inwhich sizeable quantities of Virginia

supplies werepurchased from outof state suppliers,most of the seascallops processedor sold in Virginiawere landed inVirginia. In 1994,processors obtained$24 million worth ofscallop meats;distributors obtained$11.2 million worthof product fordistribution;restaurants pur-chased $6.2 millionof sea scallop meatsfrom Virginiasources; and retailmarkets paid $7.1million for seascallop product.

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Total sales of sea scallops and relatedproducts in Virginia in 1994 was $70.3million.

In terms of direct impacts, the output,income, and employment generated bythe harvesting, processing, and selling seascallops totaled, respectively, $44.5million, $29.3 million, and 970 person-years of employment. Harvesting activitiesaccounted for the majority of the output�82 percent. Harvesting, restaurant sales,and processing accounted for 92 percentof the direct income. Relative to totaldirect employment, harvesting andprocessing activities accounted for 59percent of total person-years of employ-ment and food service or restaurant salesaccounted for 33 percent of the total 970person-years of employment.

Of the total output, income, andperson-years of employment generated byall sectors and impact levels, the inducedimpacts equaled, respectively, 48 percent,44 percent, and 44 percent of the totaloutput, income, and person-years ofemployment. In comparison, the indirectimpacts on the Virginia economy werequite small. Total indirect output was only$4.9 million. Total indirect income was$3 million, and total employment wasonly 91 person-years of employment inVirginia in 1994.

Harvesting, processing, and foodservice sales accounted for the bulk of thetotal output, total income, and totalemployment relative to all impacts and

sectors. The sum of direct, indirect, andinduced output for harvesting, processing,and retail food or restaurant sales was$89.1 million or 95 percent of the totaloutput. Similarly, the three sectorsgenerated total income of $52.9 million,which equaled 92 percent of the totalincome generated by harvesting, process-ing, distributing, and selling of seascallops and related products in Virginiain 1994. The three sectors accounted for1,755 or 92 percent of the 1,908 person-years of employment generated by produc-tion and sales activities of sea scallops inVirginia.

OystersOysters, long a mainstay seafood

product of Virginia, have been plaguedwith problems over the past two decades.Resource levels and harvests have drasti-cally declined because of overfishing anddisease. Moreover, there has been asignificant downward decline in consumerdemand for oysters. The commercialfishery during the past few years has beensubject to very restrictive regulations andthe focus of considerable research effort torestore the resource and fishery.

In 1994, total landings of oysters fromVirginia waters were only 300,526 pounds,and the total landed value was only$812,387. Harvesters spent approxi-mately $588,000 on fuel and crew toharvest oysters in 1994. Yet, total sales ofoysters and related products in Virginia in1994 were $81 million. In fact, the total

sales of oysters and related productsexceeded the sales of all other species inVirginia. It is estimated that processors,other dealers, restaurants, and retailmarkets obtained approximately $31million worth of oysters and oysterproducts from out of state in 1994.

In comparison to the other fisheriesand species, the economic impacts of theharvesting sector are quite small. In 1994,the total direct output generated by theharvesting sector equaled $1 million whilethe total direct output or value added ofthe processing sector was $13.2 million(Table 32). Yet, when food service orrestaurant sales and retail food marketsales are examined, they also have rela-tively low outputs. The economic impactsderived from indirect activities are alsoquite small. Of the total of direct, indi-rect, and induced output, income, andemployment, the indirect output, income,and person-years totaled, respectively, 6,4, and 3 percent in 1994.

It is, in fact, the induced impacts ofprocessing activities which generate themost significant impacts. Processingactivities accounted for 86, 87, and 87percent of total output, income, andperson-years of employment in 1994.Oddly enough, it is the householdexpenditures by individuals employed inprocessing and related support businesseswhich generate the largest impacts onoutput, income, and employment. In1994, household expenditures generated$45.4 million in total output, $25.7

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Table 32. Economic Impacts of Virginia�s Commercial Fishing Industry, Oysters

Impacta Harvesting Processing Distributing Food Service Retail Markets CumulativeDirect:Output-$b 1,035,388 13,231,242 221,811 1,521,686 237,356 16,247,483Income-$c 261,728 30,497,046 509,990 3,011,481 558,730 34,838,975Employment- 9 988 16 107 19 1,139 Person YearsIndirect:Output-$ 51,392 4,110,575 72,306 393,278 62,345 4,689,897Income-$ 29,724 2,414,377 45,946 241,477 38,242 2,769,767Employment- 1 67 1 7 1 78 Person YearsInduced:Output-$ 397,883 45,443,796 752,773 4,763,736 848,927 52,207,115Income-$ 224,774 25,674,492 425,296 2,691,289 479,614 29,495,465Employment- 8 857 14 92 16 987 Person YearsTotal-Direct+Indirect+InducedOutput-$ 1,484,662 62,785,725 1,046,888 6,678,700 1,148,629 73,144,605Income-$ 516,224 58,585,813 981,227 5,944,237 1,076,586 67,104,118Employment- 17 1,911 32 206 36 2,203 Person Years


million in income, and 857 person-yearsof employment.

Low-Value FinfishLow-value finfish represent a real

hodgepodge of species. Included arethose species in which the ex-vessel ordockside price is below $0.50 per pound.Low-value finfish species include smalltrout, small to medium croaker, small tomedium spot, whiting, Atlantic mackerel,smooth and spiny dogfish, gizzard shad,catfish, some sharks not taken by longline

gear, sheepshead, black drum, and skate.In 1994, the total landed value of low-value finfish was $6.9 million. Of thetotal landed value, harvesters paid about$3.5 million for fuel and labor or about 51percent of the total landed value. Totalsales of low-value finfish in Virginia were$20.5 million in 1994. Of the total salesof low-value finfish in 1994, 100 percentof the raw material supply was obtainedfrom Virginia sources.

Of all the fisheries, the low-valuefinfish ranked fifth in terms of impacts but

was considerablybelow the top fourspecies. In 1994,total output fromall sectors andrelative to allimpact levels was$30.2 million(Table 33). Incomparison, totaloutput fromoysters, the fourthranked output, was$73.1 million.Low finfishproduction andsales activitiesgenerated a totalincome of $19.2million and totalemployment of620 person-yearsin Virginia in1994.

The contributions to Virginia�seconomy by the direct and inducedproduction and sales activities were nearlyequal. Total output, income, and employ-ment by the direct sectors equaled,respectively, $13.7 million, $9.7 million,and 307 person years. Household expen-ditures by individuals employed in thedirect and support sectors generated $14.5million in output, $8.2 million in income,and 275 person years of employment in1994.

Relative to all sectors, harvesting and

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Table 33. Economic Impacts of Virginia�s Commercial Fishing Industry, Low-value Finfish

Impacta Harvesting Processing Distributing Food Service Retail Markets CumulativeDirect:Output-$b 9,405,690 4,056,823 194,338 29,861 22,419 13,709,132Income-$c 3,515,093 5,610,309 446,825 59,096 52,775 9,684,098Employment- 110 179 14 2 2 307 Person YearsIndirect:Output-$ 747,571 1,171,640 63,351 7,718 5,889 1,996,168Income-$ 494,049 718,300 40,255 4,739 3,612 1,260,955Employment- 16 20 1 0 0 37 Person YearsInduced:Output-$ 5,395,955 8,306,463 659,538 93,482 80,185 14,535,623Income-$ 3,048,401 4,692,694 372,621 52,813 45,312 8,211,830Employment- 100 159 12 2 2 275 Person YearsTotal-Direct+Indirect+InducedOutput-$ 15,549,216 13,535,007 917,226 131,061 108,493 30,241,003Income-$ 7,057,532 11,021,361 859,697 116,648 101,689 19,156,927Employment- 226 358 28 4 3 620 Person Years

aNumbers may not add to totals because of rounding errors.bOutput for all sectors other than the harvesting sector excludes the value of output for that sector and instead measures the valueadded by that sector.cWages, compensation, and profit are included for all sectors except the harvesting sector. This is because the harvesting, processing,distributing, retailing, and restaurant businesses are actually primary sectors which do not generate an income impact until after theypay expenses which become direct sector impacts.

processing were responsible for most ofthe output, income, and employmentgenerated by low-value finfish. Harvestingand processing accounted for 96 percentof the total output of $30.2 million, 94percent of the total income, and 94percent of the total person-years ofemployment generated by direct, indirect,and induced activities.

Hard ClamsHard clams or quahogs, while one of

Virginia�s major species in terms ofconsumer preferences, ranked only sixth

in terms of economic impacts. In 1994,the dockside value of hard clams was $5.9million. Hard clams have been increas-ingly produced via aquaculture. Hardclam culture operators reported total salesof $8 million in 1995. Hard clam produc-tion numbers and sales are not availablefor 1994. A Virginia survey of cultureoperators revealed that production andsales of hard clams in 1995 were 50.2million mature clams and $8 million.Based on a survey of clam operators, it isestimated that total sales of cultured clams

in Virginia were approximately $7.6million.

Harvesters paid about $5.2 million forfuel and crew to harvest clams in 1994.Alternatively, the cost and fuel and crewwere about 87 percent of the totaldockside value. A considerable amount ofhard clams from harvesters and cultureoperators were shipped out of state in1994. Oddly, a sizeable amount of hardclams were purchased out of state for in-state consumption. Of total in-state salesof $19.2 million, approximately 33

percent of thehard clams andrelated productswere obtainedfrom out-of-statesuppliers.

Hard clamproduction,processing, andsales activitiesgenerated a totaloutput of $26.9million in Virginiain 1994 (Table 34).The correspond-ing total incomeamounted to $18.7million and totalperson-years was620. Thus, hardclam productionand sales, whilepossibly importantto some local

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Table 34. Economic Impacts of Virginia�s Commercial Fishing Industry, Hard Clams

Impacta Harvesting Processing Distributing Food Service Retail Markets CumulativeDirect:Output-$b 7,936,479 2,424,529 165,827 202,219 26,363 10,755,418Income-$c 3,087,694 5,588,363 381,272 400,201 62,057 9,519,587Employment- 107 181 12 14 2 31 Person YearsIndirect:Output-$ 665,742 753,233 54,057 52,263 6,925 1,532,219Income-$ 397,047 442,417 34,349 32,090 4,247 910,151Employment- 12 12 1 1 0 27 Person YearsInduced:Output-$ 4,946,505 8,327,246 562,778 633,061 94,289 14,563,880Income-$ 2,794,459 4,704,665 317,954 357,650 53,270 8,227,998Employment- 93 157 11 12 2 274Total-Direct+Indirect+InducedOutput-$ 13,548,726 11,505,029 782,661 887,544 127,576 26,851,536Income-$ 6,279,015 10,735,432 733,573 789,939 119,574 18,657,532Employment- 212 350 24 27 4 618 Person Years

aNumbers may not add to totals because of rounding errors.bOutput for all sectors other than the harvesting sector excludes the value of output for that sector and instead measures the valueadded by that sector.cWages, compensation, and profit are included for all sectors except the harvesting sector. This is because the harvesting,processing, distributing, retailing, and restaurant businesses are actually primary sectors which do not generate an income impactuntil after they pay expenses which become direct sector impacts.

economies, are not very significant relativeto total state-wide employment generatedby the commercial fishing industry; hardclam activities account for only 0.07percent of the total 10,798 person-years ofemployment generated by the fishingindustry of Virginia.

Of the total $26.9 million in totaloutput, harvesting, culturing, and process-ing activities accounted for 93 percent.Relative to total income, these samesectors accounted for 91 percent. Harvest-ing, culturing, and processing contributed

562 person-years to employment inVirginia in 1994. Overall, employmentgenerated directly by harvesting, cultur-ing, and processing accounted for 47percent of all employment generated bythe production and sales of hard clams inVirginia in 1994.

FlounderAlthough Virginia fishermen regularly

land nine species of flounder, summerflounder is the most highly desiredflounder in Virginia. In 1994, fishermenlanded 3.1 million pounds of flounder.

The total dockside value of all flounderwas $4.1 million; 99 percent of the totalvalue of flounder landings was attributableto summer flounder. The average priceper pound of flounder paid to fishermenwas approximately $1.34 in 1994.

Virginia fishermen spent approxi-mately $2.3 million on fuel and wages tocatch and land flounder in 1994. Totalexpenditures, excluding wages, accountedfor approximately 63 percent of thedockside value. Including wages, the totalcost of catching and landing flounder was

93 percent of thedockside value in1994.

The total sales ofall flounder inVirginia amounted to$15.6 million in1994. Relative toother species orspecies groups,flounder rankedseventh in terms oftotal sales in Virginia.Of the total Virginiasales of flounder,approximately 60percent of productwas obtained fromVirginia sources whilethe remaining 40percent was obtainedfrom out of statesources.

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Table 35. Economic Impacts of Virginia�s Commercial Fishing Industry, Flounder

Impacta Harvesting Processing Distributing Food Service Retail Markets CumulativeDirect:Output-$b 5,366,031 1,785,649 74,387 951,623 120,205 8,297,894Income-$c 1,922,840 2,469,431 171,031 1,883,300 282,959 6,729,561Employment- 59 79 8 67 10 220 Person YearsIndirect:Output-$ 320,653 515,709 24,249 245,946 31,573 1,138,130Income-$ 195,159 316,167 15,408 151,014 19,367 697,115Employment- 6 9 0 5 1 21 Person YearsInduced:Output-$ 2,821,874 3,656,169 252,452 2,979,115 429,924 10,139,534Income-$ 1,594,219 2,065,534 142,628 1,683,061 242,891 5,728,334Employment- 53 70 5 58 8 193 Person YearsTotal-Direct+Indirect+InducedOutput-$ 8,508,558 5,957,563 351,087 4,176,683 581,702 19,575,592Income-$ 3,712,240 4,851,157 329,067 3,717,369 545,217 13,155,050Employment- 118 158 11 129 18 434 Person Years


In terms ofcontributions tothe Virginiaeconomy, thetotal output,income, andperson-years ofemploymentgenerated byflounder-relatedproducing andselling-relatedactivitiesequaled,respectively,$19.6 million,$13.2 million,and 434 (Table35). Directharvestingactivities andhouseholdexpenditures byindividualsemployed inharvesting andprocessing were responsible for 61 percentof the total output in Virginia in 1994.

Of the total income generated byflounder-related production and salesactivities, nearly 48 percent was derivedfrom the direct harvesting, processing,and serving of meals in restaurants.Household expenditures by individualsemployed in those same direct sectorsgenerated almost 41 percent of the totalincome.

Flounder production and salesactivities generated 434 person-years ofemployment for the economy of Virginiain 1994. Of this total, only 59 person-years of employment were generated in thedirect harvesting sector. Processing andserving meals in food service establish-ments generated another 146 person-yearsof employment for the Virginia economy.Total household expenditures by allindividuals employed in the direct andsupport or indirect sectors generated 193person-years of employment. Support

sectors or those sectors providing goodsand services for harvesting, processing,distributing, and selling flounder gener-ated only 21 person-years of employment.

Moderate to High-Value FinfishThe moderate to high-value finfish,

like the low-value finfish, encompasses anextensive number of diverse species. Forexample, this category includes largecroaker, large weakfish, striped bass,dolphin or mahi-mahi, tuna and albacorenot harvested with longline, amberjack,

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Table 36. Economic Impacts of Virginia�s Commercial Fishing Industry, Moderate/High-value Finfish

Impacta Harvesting Processing Distributing Food Service Retail Markets CumulativeDirect:Output-$b ,610,567 424,084 34,509 378,401 40,882 2,488,443Income-$c 389,555 1,222,311 79,342 748,871 96,235 2,536,315Employment- 12 38 3 27 3 83 Person YearsIndirect:Output-$ 75,984 135,528 11,249 97,797 10,738 331,297Income-$ 44,371 79,953 7,148 60,049 6,587 198,108Employment- 1 2 0 2 0 6 Person YearsInduced:Output-$ 545,098 1,766,325 117,114 1,184,608 146,218 3,759,362Income-$ 307,922 997,948 66,166 669,248 82,608 2,123,893Employment- 10 33 2 23 3 71 Person YearsTotal-Direct+Indirect+InducedOutput-$ 2,231,650 2,325,934 162,871 1,660,806 197,838 6,579,099Income-$ 741,865 2,300,213 152,656 1,478,166 185,430 4,858,330Employment- 24 74 5 51 6 160 Person Years


bonito, large butterfish, cobia, cod, reddrum, and numerous other species. Thereis a mixture of numerous inshore andoffshore species. In 1994, the totaldockside value of all species in thiscategory was only $1.2 million. Totallandings were only 1.6 million pounds.The average price per pound received bycommercial fishermen relative to allspecies in this group was $0.76 perpound.

Expenditures on fuel and paymentsmade to labor to catch and land high-value finfish equaled only $326,140 or 27

percent of the dockside value. If allexpenditures except payments made tocrew and profit are considered, Virginiafishermen spent approximately $1.1million or 86 percent of the docksidevalue to catch and land high-value finfishin 1994. Harvesting activities related tothe moderate to high-value finfish gener-ated only 12 person-years of employmentfor Virginia in 1994.

In terms of economic importance, themoderate to high-value finfish were themost important species or species group-ing. In 1994, production and sales

activities generated$2.5 million ofoutput, $2.5 millionof income, and 83person-years ofemployment for theVirginia economy(Table 36). Sectorsproviding support-ing goods andservices generated$331,297 of output,$198,108 of income,and only six person-years of employ-ment. Householdexpenditures byindividuals em-ployed in the directand support orindirect sectorsgenerated $3.8million of output,$2.1 million ofincome, and 71

person-years of employment.

All production and sales activities andhousehold expenditures by individualsemployed in all direct and indirect sectorsgenerated a total output of $6.6 million in1994. Total income and person-years ofemployment were, respectively, $4.9million and 160. Relative to the totalincome generated in the economy,processing and food service sales ac-counted for 41 percent of the total in-come; expenditures by householdsemployed in processing food service

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Table 37. Economic Impacts of Virginia�s Commercial Fishing Industry, Other Shellfish

Impacta Harvesting Processing Distributing Food Service Retail Markets CumulativeDirect:Output-$b 899,686 502,904 18,286 290,991 34,154 1,746,021Income-$c 388,948 870,281 42,044 575,882 80,398 1,957,553Employment- 13 28 1 20 3 65 Person YearsIndirect:Output-$ 35,650 162,391 5,961 75,206 8,971 288,179Income-$ 20,759 95,903 3,788 46,177 5,503 172,130Employment- 1 3 0 1 0 5 Person YearsInduced:Output-$ 585,382 1,294,672 62,059 910,965 122,156 2,975,233Income-$ 330,719 731,442 35,061 514,653 69,014 1,680,889Employment- 11 25 1 18 2 57 Person YearsTotal-Direct+Indirect+InducedOutput-$ 1,520,718 1,959,971 86,305 1,277,161 165,281 5,009,437Income-$ 740,429 1,697,622 80,892 1,136,711 154,915 3,810,569Employment- 24 55 3 39 5 127 Person Years

aNumbers may not add to totals because of rounding errors.bOutput for all sectors other than the harvesting sector excludes the value of output for that sector and instead measuresthe value added by that sector.cWages, compensation, and profit are included for all sectors except the harvesting sector. This is because the harvesting,processing, distributing, retailing, and restaurant businesses are actually primary sectors which do not generate an incomeimpact until after they pay expenses which become direct sector impacts.

services and related support businessesgenerated another 34 percent of the totalincome. Similarly, processing and foodservice sales and household expendituresby individuals employed in these sectorsgenerated 76 percent of the total 160person-years of employment generated byall activities related to moderate to high-value finfish.

Other ShellfishIn 1994, other shellfish species were

not very important to the economy ofVirginia or the commercial fishing indus-try. Yet, it is a case ofevery little bit helps.Other shellfishinclude species suchas conch, lobster,horseshoe crab, crabsother than blue crabs,and several othershellfish species.Total landings andlanded or docksidevalue amounted to,respectively, 2 millionpounds and$755,574. Theaverage price perpound received byfishermen was $0.38.Harvesting activitiesgenerated only 13person-years ofemployment forVirginia in 1994.

Total sales of other shellfish in Virginiain 1994 were $4.4 million. Of the $4.4million in total sales, about 25 percent ofthe product was purchased by restaurants;52 percent was purchased by processorsfor additional processing. Retail foodmarkets purchased only 12 percent of thetotal product.

Total output, income, and person-yearsof employment generated by the produc-tion and sales of other shellfish andexpenditures by individuals employed inthe production and sales of other shellfishor related support industries equaled,

respectively, $5 million, $3.8 million, and127 (Table 37). Of the total output,expenditures by households employed inthe direct production and sales sectorsaccounted for 35 percent. In contrast,expenditures by individuals employed inthe direct and indirect sectors generated59 percent of the total output.

Relative to the total employment of127 person- years generated by all sectors,the direct sectors accounted for 65 person-years or 51 percent of the total person-years of employment. Household expen-ditures generated another 57 person-years

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Table 38. Economic Impacts of Virginia�s Commercial Fishing Industry, Sharks and Tuna

Impacta Harvesting Processing Distributing Food Service Retail Markets CumulativeDirect:Output-$b 179,659 19,805 2,845 63,136 2,689 268,134Income-$c 55,335 34,272 6,540 124,948 6,330 227,425Employment- 2 1 0 4 0 8 Person YearsIndirect:Output-$ 12,810 6,395 927 16,317 706 37,156Income-$ 7,783 3,777 589 10,019 433 22,601Employment- 0 0 0 0 0 1 Person YearsInduced:Output-$ 84,693 50,985 9,654 197,650 9,618 352,600Income-$ 47,845 28,805 5,454 111,663 5,434 199,200Employment- 2 1 0 4 0 7 Person YearsTotal-Direct+Indirect+InducedOutput-$ 277,163 77,185 13,425 277,103 13,014 657,890Income-$ 110,963 66,854 12,583 246,629 12,197 449,227Employment- 4 2 0 9 0 15 Person Years

aNumbers may not add to totals because of rounding errors.bOutput for all sectors other than the harvesting sector excludes the value of output for that sector and instead measuresthe value added by that sector.cWages, compensation, and profit are included for all sectors except the harvesting sector. This is because the harvesting,processing, distributing, retailing, and restaurant businesses are actually primary sectors which do not generate an incomeimpact until after they pay expenses which become direct sector impacts.

of employment. The indirect or supportindustries generated only 5 person-yearsof employment.

Sharks and Tuna, LonglineSharks and tunas, while highly desired

by consumers, are relatively unimportantto the commercial seafood industry ofVirginia. Total landings were only 69,484pounds in 1994. The ex-vessel ordockside value was also low�$132,820.Fuel expenditures and payment to crewwere only $53,580 in 1994. Total non-

labor expenses equaled only $97,251.The total harvest of sharks and tuna bylongline generated only two person-yearsof employment in the harvesting sector.

Total sales of sharks and tunasamounted to $476,517 in 1994. Of thetotal $476,517 million in sales, approxi-mately 60 percent of the product wasobtained from out of state sources. Restau-rant and other food service sales ac-counted for 50 percent of the total sales.Retail market sales for at-home consump-

tion accounted for only 9 percent of thetotal sales in Virginia.

The total output of all production andsales activities and expenditures byindividuals employed in the direct andindirect sectors was only $657,890 in 1994(Table 38). Total income and employmentwere $449,227 and 15 person-years. Theindirect or support sectors contributedonly $37,156, $22,601, and 1 to totalVirginia output, income, and person-yearsof employment.

The directsectors and expendi-tures by individualsemployed in thedirect and indirectsectors generated atotal output of$620,734 or 94percent of the totaloutput. They alsoaccounted for 95and nearly 100percent of the totalincome and person-years of employ-ment. Food servicesales accounted for42, 55, and 60percent of the totaloutput, income, andperson-years ofemployment gener-ated by the produc-tion and sales of

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sharks and tunas in Virginia in 1994.

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Documents

Virginia’s Commercial Fishing Industryweb.vims.edu/library/Kirkley/Kirkley2.pdfVirginia™s Commercial Fishing Industry: ... fishing crew and manufacturers of process-ing equipment,