Dear Area E Fishermen,
As you prepare for the upcoming 2021 fishing season, PWSAC would like to provide an update regarding the cost recovery program. As many of you may have heard, best October budgetary assumptions required a larger than historic cost recovery goal during the 2021 season. Considering this, we wanted to take the time to provide a bit of context to the industry.
Some factors listed below played a significant role in the development of PWSAC’s 2021 budget, ultimately impacting cost recovery goals.
- Age of PWSAC infrastructure.
- Changing regulations requiring significant operational and capital expenditures.
- COVID pandemic creating new costs burdens.
After significant effort by staff and the board to manage areas listed above, the board approved a budget addressing the corporations needs as quickly as possible to put many of these challenges behind us as soon as possible. PWSAC takes its fiduciary responsibility to the fleet and industry seriously and will continue to complete its work in the most cost-effective manner possible.
During the 2021 season, PWSAC will conduct cost recovery with a total revenue goal of $15.9 million. PWSAC must project the percentage of its run to be utilized for Cost Recovery and Brood stock. Best assumptions are made regarding price/lb and return forecasts when planning for cost recovery. It was estimated in 2021 that 54% of the gillnet fish (chum and sockeye) would be used, along with an 39% of the seine fish (pink). As all of you know, actual run size and fish prices will ultimately dictate the outcome at the end of the season.
PWSAC is happy to have received more favorable pricing than anticipated for the cost recovery bidding process. Fish purchase licensing agreements prevent PWSAC from divulging pricing and/or quantity for the term of the agreement. We are pleased to share that the chum and sockeye requirements for cost recovery will be significantly less than projected. Pink market conditions too have proven to be better than assumed.
We are optimistic that PWSAC run performance will come in close to forecast. Securing broodstock is always of highest priority to ensure maximum releases for maximum returns. We ask for everyone’s understanding during that oft challenging aspect of the fisheries. We will also work diligently with processors and harvesters during the season to complete our cost recovery as quickly as possible allowing for as much common property opportunity as possible. We hope everyone has a safe 2021 fishing season. If you have further questions, please contact your board representative.
DEVELOPING SUSTAINABLE SALMON FISHERIES
FOR ALASKA AND THE WORLD
P.O. Box 1110 × Cordova, Alaska 99574
P. 907 424 7511 × F. 907 424 7514