Projects or Corporate Expansion?

Hello Fishies!

I hope that you and yours enjoyed a blessed Thanksgiving. We certainly did! And look below, there are still turkeys out there!

APICDA owns one umbrella profit-making subsidiary, APICDA Joint Ventures, Inc. (AJV). AJV, in turn, has invested in several subsidiary companies. APICDA has formed, and may continue to form, for-profit subsidiary corporations to serve as the profit-making investment arms of the organization.

APICDA is proposing to move forward with a number of projects during the 2006-2008 CDP cycle. These projects will generate new capital and equity, and will expand and help stabilize the local economies in each of our member communities.

The following infrastructure projects are proposed in this CDP:

• Secure Funding for Construction of a Boat Harbor in Atka

• Widen Face of Atka City Dock

• Nikolski Mooring System

• Complete Nikolski Airport Improvements

• Akutan Harbor

• Support Construction of Central Bering Sea Research Facility in St. George

• Complete False Pass Airport Improvements

• Mark the Nelson Lagoon Ship Channel with Private Aids to Navigation

• Develop Akutan Support Services and Businesses

• Akutan Halibut Quota Share Purchase Program

• Construct New and Larger Atka Pride Seafoods Plant

• Develop Fuel Supply Business, Ship Support Businesses, and Other Uplands

• Development in Atka

• Operate Shoreside Processing Facility in St. George

• Construct Shoreside Processing Facility in Nelson Lagoon

• Develop Nelson Lagoon Store and Ship Supply

• Operate Bering Pacific Seafoods

• Develop False Pass Store, Fuel Farm, and Ship Supply

• Product Diversification Program

• Freight/Logistics/Passenger Ships

• APICDA Vessels, Inc.

• Expand Small Boat Fleet

• Ugludax Lodge, L.L.C.

• Purchase Crab Harvesting and Processing Shares

• Pursue Investments in Shoreside Support Companies

• Develop a Private Label and Marketing Program

• Explore Power Generation Joint Venture

There is NO reason, in my opinion, for these CDQ’s to be engaged in any of the above named enterprises. Remember, this is government sanctioned. It has become a very big, very powerful entity. You may have heard, or been engaged in conversations regarding “big business”. How the large gobbles up the small, ending up with a total control of the industry.

Well, there you are.

Stay tuned.

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APIDCA Mission Statement

Hello Fishies!

The award for the biggest turkey in Alaska this season is a tie. Its just too difficult to decide if the CDQ or the Processor control over the crab fishery is the worst.

From the APIDCA's own site:

The Aleutian Pribilof Island Community Development Association will develop commercial and sport fishing industry related opportunities to enhance the long-term social and economic viability of the coastal communities and their residents in the Bering Sea and Aleutian Islands.

APICDA will optimize benefits to its member communities and their residents through the development of infrastructure and fishery support services in the communities, the acquisition of seafood related businesses, including fishing vessels and/or processing facilities and support service industries at economically beneficial prices, and the acquisition of harvest and processing rights. By enabling the communities to participate in the Bering Sea and Aleutian Island fisheries, APICDA will:

• Promote and participate in business opportunities with capital investment funds.

• Relieve chronic social problems through the creation of jobs, and encourage individual growth through educational and vocational opportunities.

• Promote community control over their individual economic and social destinies; and,

• Continue to assist each community as they make the transition from reliance upon a CDQ allocation to economic and social self-sufficiency.

How on earth do you think that this transition will ever be able to happen? By purchasing or building all facets of the fishing industry the CDQÂ’s have a strangle hold on the communities and the industry!

According to their 2005 year end report, the APICDA has paid its 6 management or administrative employees in excess of $450,000. Some people are most definitely benefiting from this arrangement.

I hope you all enjoy your turkey - I know that the APIDCA is!

Stay tuned!

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APICDA and Alaska Crab

Greetings Fishies!

For the APICDA, the original CDQ species was pollock and the amount allocated to the program was 7.5% of the total allowable catch. Over the years the program has expanded to include all groundfish, crab and halibut fisheries in the Bering Sea/Aleutian Islands. The allocation percentage is now 10% for pollock and crab, 7.5% for the remaining groundfish species, and varying percentages for halibut depending upon the area.

CDQ groups typically lease their CDQ allocations to other companies to harvest and process their allocation. In 1992, when the CDQ groups had virtually no assets, 100% of the CDQ allocations were leased to companies that had no CDQ ownership. Over the years the six groups have acquired ownership throughout the industry and now in excess of 60% of CDQ allocations are harvested and processed by companies of which the CDQ groups own all or part.

From their year end publication:

APICDA owns 100% of APICDA Vessels, Inc and Atka Pride Seafoods is owned 50% by APICDA and 50% by the Atka Fishermen’s Association. Harvesting our CDQ with our vessels and processing our CDQ in our plants in our communities has always been a goal of APICDA.

Bristol Bay Red King Crab: APICDA will have constructed a shoreside processing plant in False Pass (Bering Pacific Seafoods) by the conclusion of 2005. The plant will have the capability to process crab. BPS did not qualify for individual processor quota shares (IPQs). As a result, the only crab that BPS will be able to purchase are category B shares. The red king crab CDQ allocation will be an important part of Bering Pacific Seafoods operations, and an important economic contributor to False Pass and its residents.

Commencing with 2006, we intend that 100% of our red king crab CDQ allocation will be harvested by vessels owned in whole or part by APICDA and delivered for processing to the new Bering Pacific Seafoods shoreside processing facility in False Pass.

APICDA owns 100% of Bering Pacific Seafoods and owns or will own a portion of the vessel(s) harvesting our red king crab CDQ. Harvesting our CDQ with our vessels and processing our CDQ in our plants in our communities has always been a goal of APICDA.

Opilio Tanner Crab: APICDA will have constructed a shoreside processing plant in St. George by the conclusion of 2005. The plant will have the capability to process crab. The economy of St. George is virtually at a standstill following the collapse of the opilio crab fishery. The only real hope to establish a viable economy for the community is through a shoreside processing facility. The opilio crab CDQ allocation will be an important part of the new facility’s operations, and an important economic contributor to St. George and its residents.

Commencing with 2006, we intend that 100% of our opilio crab will be harvested by vessels owned in whole or part by APICDA and delivered for processing to the new shore side processing facility in St. George.

Stay tuned...you will be stunned when you learn about all of the things this group owns and the amount of control they have over everything from the price of fish to where they are delivered!

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APICDA, F/V Far West Leader & The Deadliest Catch

Greetings Fishies!

No doubt by now you have ascertained that I am no fan of the CDQ. In my last post I was living up to the shrewish description of my name. Bear with me a bit longer and it is very possible that you will understand.

At first blush you may think that the following is a good thing:

APICDA purchased an additional 25% ownership in the Farwest Leader Partnership. The Farwest Leader Partnership owns and operates the F/V Farwest Leader, a 100 foot vessel. The vessel operates in the Bering Sea/Aleutian Islands. The Farwest Leader harvests crab, Pacific cod, sablefish and tenders salmon. In addition to its harvesting capabilities, the vessel also has extensive fishing rights which include shares of various Bering Sea crab species. APICDA’s partner in this venture is Trident Seafoods.

If you recall from my prior post the F/V Far West Leader is one of the boats that is to be featured on The Deadliest Catch Season 3. This CDQ has purchased an additional ownership in this vessel, along with Trident Seafoods.

Will the producers of the tv show tell you about that?

This puts a major processor and a governmental agency in charge of even MORE fishing quota. That fishing quota should be in the hands of individuals, be it the captains or crew that have harvested it over the years.

It is a sad state of affairs that has allowed this sort of a thing to occur.

Continuing from the public report:

APICDA concluded its Bering Sea “A” season pollock fishery during the first quarter, harvesting 100% of the allocation. APICDA also harvested 100% of our 2006 opilio and bairdi Tanner crab CDQ allocations in the first quarter, and 100% of our Pacific cod CDQ “A” season allocation in the first quarter.

The F/V Konrad 1 participated in three fisheries in the first quarter. In January, the Konrad participated in the western gulf Tanner crab fishery harvesting approximately 41,000 pounds of bairdi (nearly 15% of the entire quota for this area). In February, the vessel participated in the state and federal Pacific cod fishery, harvesting over 200,000 pounds of Pacific cod. She is currently harvesting Bering Sea IFQ/CDQ sablefish.

The F/V Taty Z participated in several fisheries in the first quarter. In early March the vessel harvested APICDA’s 3A/B IFQ halibut. Later in the month, the vessel participated in various IFQ Gulf of Alaska sablefish fisheries. The vessel is now in the process of gearing up for the Aleutian Island halibut fishery.

Sad.

Stay tuned

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CDQ: Aleutian Pribilof Island Community Development Association

Hello Fishies!

Today I write to you with more definitive information regarding the CDQ system. As I noted in a prior post, there are six of these entities. I would like to explore each of them, some more in depth than others. I believe that as we look at the Aleutian Pribilof Island Community Development Association you will find them fascinating.

Each of these CDQ's must render a quarterly report and these are public documents available both from the state and on the internet. Please note that there are two versions, the public one that we have access to, and another, confidential report, that we do not. As these CDQ's are a governmental enterprise, and the government's actions should at least be transparent, if not conducted in public, I have some serious concerns.

The bulk of my gleanings come from the first quarter report of 2006 which was made available in May of 2006:

APICDA's employment goal for 2006 is to provide at least 80 jobs for APICDA residents. By
the conclusion of the first quarter, a total of 32 job positions (32 discrete individuals) had been
filled by APICDA residents, generating wages of $284,473 – over $8,890 per job. Based on
population, we employed just over seven percent (6%) of APICDAÂ’s community members

during the first quarter of 2006.

The above figure represents an average. They entered the 32 jobs into the wages figure and have given us the average. I wonder how many of these jobs are full or part time, family wage or year round jobs.

During the first quarter, sixteen individuals attended various vocational education or specialized training programs. APICDA invested $14,921 in vocational education scholarships for its residents this quarter.

Forty -one individuals used APICDA higher education scholarships during the first quarter of the year. Each scholarship is capped at $5,000 for the school year. A total of $102,500 in higher education scholarships were disbursed in the first quarter.

To whom? Where? Are these going to be degrees or skills that will be brought back to the comunity? Is the money for living expenses? Too many questions on this one!

The APICDA board, subsidiary boards, and committees were quite active in the first quarter. These various boards and committees conducted a total of ten meetings over the quarter.

Ahhh yes. Meetings...in the community or some where else?

Management and staff spent approximately 55 "person days" in the APICDA region in the first quarter. Project development, project maintenance, and community outreach were some of the activities/purposes for their trip(s) to the APICDA communities.

Excuse me. You don't live there??

It gets much more interesting. Don't forget that all the starting monies are from seafood, and there is a heavy presence in the processing and fishing vessel ownership.

Stay tuned!

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Community Development Quota

Hello Fishies!

Today's topic is a continuation of my last post regarding the government allocating the fisheries to itself.

From the Alaska Department of Commerce:

The Community Development Quota Program began in December of 1992 with the goal of promoting fisheries related economic development in western Alaska. The program is a federal fisheries program that involves eligible communities who have formed six regional organizations, referred to as CDQ groups. There are 65 communities within a fifty-mile radius of the Bering Sea coastline who participate in the program.

The CDQ program allocates a portion of the Bering Sea and Aleutian Island harvest amounts to CDQ groups, including pollock, halibut, Pacific cod, crab and bycatch species. There are no significant amounts of salmon allocated. Based upon its evaluation of the Community Development Plans submitted by the six CDQ groups, the State of Alaska and the National Marine Fisheries Service periodically allocates percentages of each species to CDQ groups. The CDQ program was granted perpetuity status during the 1996 reauthorization of the Magnuson-Stevens Act.

The program was modeled after the Alaska Native Claims Settlement Act (ANCSA). However, the CDQ program was created with three primary differences:

• Government oversight of all business activities
• Community based shareholders instead of individual shareholders
• Requirement that all investments be fisheries related

The six CDQ groups are:

• Aleutian Pribilof Island Community Development Association (6 communities)
• Bristol Bay Economic Development Corporation (17 communities)
• Central Bering Sea Fishermen's Association (1 community)
• Coastal Villages Region Fund (20 communities)
• Norton Sound Economic Development Corporation (15 communities)
• Yukon Delta Fisheries Development Association (6 communities)

And now for the spin:

Since 1992, over $110 million in wages, education, and training benefits have been generated for over 25,000 residents. As of 2003, the asset value of the six CDQ groups exceeded $260 million. Since 1992, over $500 million in revenues have been generated. The CDQ program has been successfully contributing to fisheries infrastructure in western Alaska by funding docks, harbors, and the construction of seafood processing facilities. The CDQ program has allowed CDQ groups to acquire equity ownership interests in the pollock, Pacific cod, and crab sectors which provide additional revenues to fund local in-region economic development projects, and education and training programs.

At first glance this sounds oh so lovely doesn't it? But consider this: would those dollars have better spent in the private sector? Government's inability to manage almost anything is legendary. This writer is of the opinion that in the right hands, that $110 million would have at least been doubled. Private investment and ownership always trumps any attempt at socialism.

Stay tuned!

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Community Protection Measures

Hello Fishies!

What follows is another slice of the crab pie where governmental entities actually OWN some of the IFQ! Unfortunately this has been upheld from it's earlier implementation in the halibut and sablefish IFQ.

What are Community Protection Measures?

These are primarily limits on the amount of PQS and IPQ that can be used outside of communities with historic reliance on the crab fisheries, which means that more than 3% of a crab fishery was processed there. There are nine Eligible Crab Communities (ECCs): Adak, Akutan, Unalaska/Dutch Harbor, False Pass, King Cove, Kodiak, Port Moller, Saint George, and Saint Paul. The three main protection measures are:

“Cooling off” Period
Right of First Refusal (ROFR), and
QS Purchase

What is the “Cooling Off” Period?

Until July 1, 2007, PQS and IPQ based on processing history earned in an ECC generally cannot be transferred from that community. The use of IPQ outside the community during this period is limited. Ten percent of the IPQs that are issued for a crab QS fishery or 500,000 pounds (226.7 mt), whichever is less, may be leased for use outside that ECC. The amount of IPQ that may be leased outside that ECC will be divided on a pro rata basis among all PQS permit holders issued IPQ for use in that ECC for that year. Four crab fisheries would be exempt from the cooling off provision: Eastern and Western Tanner crab, Western Aleutian Islands red king crab, and Western Aleutian Islands golden king crab.

Are there any exceptions to the “Cooling Off” restrictions?

Yes, if there is an “unavoidable circumstance” then the restrictions may be lifted for a specific processor in a specific ECC. The definition of an “unavoidable circumstance” is provided in the regulations.

What is Right of First Refusal (ROFR)?

Before NMFS issues any PQS, an ECC may establish a contract with that PQS holder which guarantees the ECC first rights to any PQS proposed for sale for use outside that community. Some requirements exist for IPQ as well. ROFR does not apply to Adak.

Can communities purchase QS?

Each ECC can purchase QS and lease the IFQ to community residents. Communities would need to submit an annual report to NMFS if they purchase QS.

What happens to CDQ crab?

The allocation to CDQ* groups increases to 10% of the TAC for the rationalized crab fisheries, except for Western Aleutian golden king crab, which has a 10% allocation specific to the community of Adak. This adds two new CDQ species, Eastern Aleutian golden king crab and Western Aleutian red king crab. The Norton Sound king crab CDQ allocation remains 7.5% of the TAC.

What specific community measures apply to Adak?

(1) Cooling off period applies.
(2) ROFR does not apply.

(3) Special allocation of 10% of the Western Aleutian golden king crab TAC. This allocation goes to an entity formed by the residents of Adak, or the Aleut Corporation if an entity doesn’t form for the first 2 years only. This allocation must be used for fishery development in Adak.

(4) QS can be held and IFQ leased to residents.

(5) 50% of the Western Aleutian golden king crab must be processed in Adak.

What specific measures apply in Non-CDQ ECCs?

Cooling off period applies.
Non-CDQ ECCs may enter a ROFR contract with a processor before the PQS application is submitted to NMFS. The governing body for each non-CDQ community must select the ECC entity to represent it for purposes of ROFR. The governing body of each ECC is:

Unalaska: City of Unalaska
King Cove: City of King Cove & Aleutians East Borough
Port Moller: Aleutians East Borough
QS can be held and IFQ leased to residents.

What specific measures apply to CDQ ECCs?

Cooling off period applies.

CDQ EECs may enter a ROFR contract with a processor before the PQS application is submitted to NMFS. The governing body for each ECC is the CDQ group for that community:

Akutan, False Pass, St. George: APICDA
St. Paul: CBSFA
QS can be held and IFQ leased to residents.

What specific measures apply to Kodiak?

Cooling off period applies.

The ECC entity of Kodiak may have a ROFR contract with any processor in any community in the North Gulf of Alaska before the PQS application is submitted to NMFS. The City of Kodiak and Kodiak Island Borough select the ECC entity.

QS can be held and IFQ leased to residents.

Is the CDQ crab fishery part of the Program? Do I need to have IFQ to fish in the CDQ fishery? How does IPQ relate to the CDQ crab fisheries?

Except for the CDQ fishery for king crab in Norton Sound, all CDQ crab is "rationalized" crab. However, you do not need Quota Share (QS) or IFQ for CDQ crab fisheries. You must fish under an authorized CDQ Group's CDQ crab allocation and all crab must be delivered to a Registered Crab Receiver (RCR). An RCR does not need IPQ to receive CDQ crab.

Is your head hurting yet? Sorry but we are just scratching the surface of this insane plan.

Stay tuned!

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*Community Development Quota which will be covered next.

Crab & Artichoke Croissants

Greetings Fishies!

This is another recipe that is entirely too tasty for you to miss!

1/3 pound crab meat
1/3 cup mayonnaise
¼ teaspoon dill
1 clove garlic, minced
Dash cayenne pepper
2 tablespoons chopped parsley
4 ounces cheddar cheese, shredded
1 (2 ¼ oz.) can ripe olives, sliced
1 artichoke heart, drained and cut up
3 croissants

In a small bowl, mix together the mayonnaise, dill, garlic, cayenne pepper and parsley. Add the crab, 3 ounces of the shredded cheese, artichoke heart and olives. Split the croissants in half, horizontally. Place them on a baking sheet, cut side up. Spread each half with crab mixture, then sprinkle on the remaining cheese. Broil the sandwiches about 4 to 6 inches from heat, until topping is melted, about 3 to 5 minutes.

Remember to check this blog's archives and-

Stay tuned!

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Who is the Fishwife?

Hello Fishies!

First let me thank you for taking the time to read and respond to this blog. In turn, I do read ALL of your different forums - from the Deadliest Catch, My Space and Fish-n-Chat to the F/V Northwestern. (More on that topic coming soon). While I do get a kick out of your speculation as to my identity, none of you know me. From the very beginning of the show I have been silent and this blog is the vehicle that I have chosen to get information out to you.

Yes I am a fishwife as defined in the very first blog post. I know the sides of the industry that never get mentioned: processor politics, government/enforcement and what fishermen and their families really are like. It is my intention to pass items along to you and help to educate you my dear Fishies, while dispelling rumor and inaccuracies. Rest assured that I will never ever knowingly post anything about the industry that is false or misleading.

Don'’t forget that true Alaskan King Crab is now on the market!

Stay tuned!

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Time Bandit Update

Hello Fishies!

This just in - at the last minute the Hillstrand brothers did lease some king crab quota. What this does or does not do for their standing in the Deadliest Catch I don't know. What I do know is that the brothers themselves crewed. What their real bottom line is remains to be seen.

Stay tuned!

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