Seafood Economics Contributes $6B to Alaska’s Economy: ASMI Report

Image: Alaska Seafood Marketing Institute.

The seafood industry plays a critical role in Alaska, employing over 48,000 workers annually and contributing $6 billion to the state’s economy, according to a new report from the Alaska Seafood Marketing Institute.

Alaska has the most prolific commercial fishing industry in the U.S., harvesting more seafood than all other states combined, according to ASMI data.

“The economic benefits of the seafood industry are felt by all Alaskans,” said Jeremy Woodrow, executive director of ASMI, which released the 2024 update of “The Economic Value of Alaska’s Seafood Industry” report on April 24.

Current global challenges notwithstanding, the variety and superior quality of products Alaska has to offer is unmatched, Woodrow said.

“Research shows that consumers strongly prefer wild seafood to farmed, they want to add more sustainable seafood to their routines and they place a high value on the health benefits of seafood,” he said.

The report considers only the commercial seafood industry and does not address economic impacts stemming from recreational, charter, or subsistence uses of Alaska’s seafood resources. Highlights include:

  • The seafood harvest of 5.8 billion pounds was worth $2 billion in 2022. Processors turned that haul into 2.3 billion pounds of product worth $5.2 billion, adding $3.2 billion in value.
  • Among the many thousands of workers employed by the seafood industry were 17,000 Alaskans from over 142 communities. In 2021-22, total labor income came to $2.3 billion, including multiplier effects.
  • Seafood processing is the largest manufacturing sector in Alaska, accounting for 66% of the state’s manufacturing employment in 2022.
  • More than half the industry’s skippers, active permit owners and crew, a total of some 13,000 harvesters, are Alaska residents.
  • The industry paid over $161 million in taxes, mostly to state and local governments, plus fees and self-assessments in 2022, and was the largest source of tax revenue for 11 municipal governments in 2022.
  • Nationally, Alaska seafood contributes $15.8 billion to the nation’s economy. The seafood industry is one of the largest sources of employment, wages and tax revenue, the report noted.
  • Alaska seafood also contributes to the global seafood supply, ranking at about 60% of the total U.S. seafood harvest, with more wild-caught seafood than all other states combined, and 1.3% of the global seafood harvest, including wild capture and aquaculture. The industry creates 81,000 full-time equivalent jobs nationally.

Meanwhile, global market pressures are having a significant impact on all Alaska fishermen, fishing families and businesses. Data compiled for the report shows that a combination of factors, from local to global, contributed to lower prices for Alaska, U.S. and international seafood in 2023.

Lower consumer demand in 2023 led to U.S. seafood retail sales volumes falling below pre-pandemic benchmarks, reversing substantial gains in 2020 and 2021. According to the report, consumers cited cost as a primary reason they moved away from seafood.

The U.S. dollar was strong in 2023 compared to the currencies of key Alaska seafood importers, especially Japan, making Alaska seafood prices less competitive.

The carryover of 2022 product inventory, including sockeye salmon, white fish and king crab from Russia made wholesale and retail markets less motivated to buy 2023 products. Meanwhile, global harvest increased supply for many key Alaska seafood products.

ASMI is a public-private partnership between the State of Alaska and the state’s seafood industry, established to foster economic development. ASMI’s stated mission is to increase the economic value of Alaska seafood.

The organization’s full 32-page economic value report, which was completed by contractor McKinley Research Group on ASMI’s behalf, can be seen and downloaded at https://tinyurl.com/5822fu5t.