Kenai Peninsula Borough
144 North Binkley Street     Soldotna, AK 99669
Phone - (907) 262-4441 or (800) 478-4441

Kenai Peninsula Borough Commercial Fishing Industry

The Constitution of the State of Alaska directs that natural resources be managed for maximum benefit to its people. It also directs that renewable resources be managed for maximum sustainable yield. Each of these directives impact management of commercial fisheries in KPB waters, namely Cook Inlet and Prince William Sound. Salmon fisheries within the KPB include five species; sockeye or red salmon, chinook or king salmon, coho or silver salmon, pink salmon or humpy, and chum or dog salmon. Other fisheries include groundfish such as halibut or sole; middle fish such as cod, sablefish, herring, and pollock; and shellfish - shrimp, scallops, oysters; as well as other developing fisheries.
Salmon fisheries are more politicized than other fisheries as commercial fishers, sport fishers and subsistence users vie for greater shares of the resource. More permits are issued and greater production is harvested in this fishery than any other within KPB waters. Management of fisheries was under federal jurisdiction from the time Alaska was purchased until statehood. Federal management was weak so the State took over and a science-based management style was implemented. Two management goals were adopted; 1) to ensure spawning stock escapement and 2) to provide allocation of fish to user groups by management plan priorities. Management plans provide that subsistence uses must be given top priority, a dynamic political issue. As of October 1999, the federal government regained management authority in response to perceived issues of management inequities.
Harvesting. The customary salmon harvest methods are gill netting - either set or drift, and purse seining. Allocation conflicts occur within these commercial fishery sub-groups as well. Purse seiners, generally 30’ to 40’ long, play a net into the water while traveling in a circle around a school of fish. When the circle is complete, the bottom of the net is closed to capture the fish. Gillnetters set nets along the coastline, catching fish as they migrate to spawning beds. Individual nets are 30 to 40 fathoms long.
Shrimp and other bottom fish may be harvested by pots placed in likely locations at depths greater than 100 feet, and by trawlers, where vessels in the Cook Inlet, which may be 80 to 100 feet in length, tow large cone-shaped, weighted nets near the bottom of the body of water. Finally, longliners are those vessels that set a line that may be up to a mile long, harvesting halibut, black cod, lingcod and rockfish. Vessels used in this fishery are generally 50 to 100 feet long.
Commercial fishing in the region now known as the Kenai Peninsula Borough began in the 1880’s when salting was the primary preservation method. Since that time, canning and freezing have emerged as preservation methods of choice by commercial buyers. As harvest season arrives, airlines carry fresh salmon to markets outside Alaska, to consumers desiring the natural, fresh product.
Management issues include potential for over harvesting, pollution, conservation, equity between fisheries, predatory threats, oceanic environmental conditions and jurisdictional rights. Some of these issues are poorly understood and may be impossible to manage. 
Salmon. Of all KPB fisheries, the salmon fishery has the greatest impact on the KPB economy due to its size. It is difficult to assess the employment impact because many operations are family-owned and operated, releasing them from normal labor reporting practices, though processors may hire anywhere from 300 to over 1,000 employees, depending on the size and timing of the commercial harvest. Provision of high quality salmon for premium prices remains a priority. 

Several taxes are paid within the industry for development and maintenance of the fishery with various intents. A 1% tax is imposed on permit holders by the State for operations of the Alaska Seafood Marketing Institute. This tax is based upon the ex-vessel value paid by processors to commercial fishermen. A 2% Salmon Enhancement Tax is also assessed on the ex-vessel value paid to salmon fishers. Finally, the 3% Raw Fish Tax is paid by the processor, based upon the ex-vessel value of all fish processed in the facility. This tax is refunded to local governments as revenue sharing. 
Halibut. Halibut farms are in experimental stages in Norway and other countries in this global industry and may be a factor affecting the KPB commercial halibut industry in the not-to-distant future. Farmed halibut are provided shelving because they like to rest on the floor of the ocean. Shelving provides an abundance of space for each fish while not requiring the full extent of ocean floor that would normally be required for the same number of fish in the wild. Homer and Seward are two of Alaska's top landing ports in pounds of halibut. Homer received slightly more than 9.5 million pounds during 2006, the top landing port, while Seward received 6.0 million pounds, third highest following Kodiak with over 8.5 million pounds. Halibut is often trucked from Homer and Seward to be marketed in the lower 48 states.

The halibut fishery is managed in a unique way through an individual fishing quota (IFQ) system where fishers may catch an allocated poundage annually, but may fish anytime during the season rather than during set open harvest periods. IFQ's offer scheduling flexibility to the fishers as weather can be a safety factor. IFQ's also have a market value and can be bought or sold.

The estimated ex-vessel value of halibut harvested in 2C and 3A and delivered to upper or lower Cook Inlet processors was $15,694,461 during 2006. Total ex-vessel value for the region was estimated at $52,226,380. Approximately one-third (30.1%) of the area harvest is processed in the upper or lower Cook Inlet.
Sablefish. Sablefish, also known as black cod, are a high quality fish producing white meat. The fish are not commonly fished for sport as they are found in cold, deep water. The high oil content of sablefish makes it especially rich in Omega-3 fatty acids which many experts believe reduce the incidence of heart disease. Seward is the top landing port, landing 6.1 million pounds during 2006. Homer received 2.0 million pounds. Sitka, Dutch Harbor and Kodiak are among favored ports.
Shellfish. Several KPB residents participate in crab and other shellfish fisheries, but the harvest is a minimal portion of the KPB fishing industry and the permits are not issued for areas of the KPB so no data is presented specifically for those fisheries. 

          Overview     Employment     
KPB Halibut   Landings by Port    Permit Activity     
KPB Sablefish (Black Cod)  Landings by Port   Permit Activity     
Cook Inlet Salmon Weight Harvested      Price per Pound of Harvest    Number Harvested  
               Average Weight of Fish Harvested        Exvessel Values
KPB Permit Values     KPB Salmon Permit Activity     Upper Cook Inlet Salmon Harvest     Lower Cook Inlet Salmon Harvest   
Fishery Taxes
      Estimated Gross Earnings       Total KPB Permit Activity     

Kenai Peninsula Borough Home Page           Economic Analysis Office Home Page          Economic Analysis Index