Economics Breakout Discussion Recap Reducing Costs and Improving Operational Planning Harvesting More Fish Growing Demand and Increasing Value for the Fish

Reducing Costs and Operational Planning Fishery Cost Profile Buyback Cost Recovery Leasing Quota Observers Catch Monitors Opportunity Costs Roadblocks that lead to increased costs (inefficiency and loss of access) Forgone revenue from unharvest quota Administrative costs Quota management Bookkeeping Landing Taxes Insurance Mortgage Crew Gear Maintenance Regulatory participation Gas Bait and Ice Storage Processing supplies Marketing/Port/Coop fees Safety Equipment Lawsuits

Reducing Costs and Operational Planning Fishery Cost Profile Buyback Cost Recovery Leasing Quota Observers Catch Monitors Opportunity Costs Roadblocks that lead to increased costs (inefficiency and loss of access) Forgone revenue from unharvest quota Administrative costs Quota management Bookkeeping Landing Taxes Insurance Mortgage Crew Gear Maintenance Regulatory participation Gas Bait and Ice Storage Processing supplies Marketing/Port/Coop fees Safety Equipment Lawsuits

Ideas and Opportunities Buyback Continue refinance/restructure/forgiveness efforts Collaborate on buyback efforts – communicate and leverage Cost Recovery Increased transparency, industry participation Leasing Quota Explore ways to address increasing price for constraining catch Consider limits on sablefish transfer/accumulation between trawl and fixed gear Industry collaboration on facilitating access to OFS quota Reduce time lag in confirming observer reports to avoid surprises and late quota purchases Opportunity & Administrative Costs Identify ways to increase efficiency, reduce opportunity costs and support business planning

Ideas and Opportunities Observers & Catch Monitors Find Efficiencies and consider duplication Coordinate on sharing catch monitors; observer pools Explore if VMS and EM are duplicative Opportunities to reduce costs Modify qualification requirements for service providers (observers) to support local, community capacity Evaluate EM for catch monitoring Explore if NOAA observers can provide monitoring Starting the clock on observer days Consider if 100% “Cadillac” observer package is necessary for accountability Other Insurance pools

Reducing Costs and Operational Planning Considerations: Are there local solutions for local problems? Cost impacts are disproportionate throughout the fishery – how can/should costs scaled to the size of operations? Where can additional flexibility be added into the program?

Harvesting More Fish Harvesting Challenges: Choke species Regulatory constraints Antiquated regs Sideboards and silos Quota movement and markets Stock assessments and ACLs

Ideas and Opportunities Quota Caps and Quota Markets Reevaluate annual QS/QP limits Quota transfer between sectors Mechanisms to mitigate overages Extend trading season Financial instruments Quota overage trading Last resort markets Access to quota holder information to facilitate trading Balance movement of sablefish between sectors (stabilize QP prices) On the water efficiency & Gear Joint registration Increase flexibility for gear modifications Gear innovation – new ways to harvest target, avoid bycatch Allow multiple gears on a single trip Allow declaration at sea

Ideas and Opportunities Antiquated effort controls Eliminate RCAs Remove seasons (year round mid-water trawl) Eliminate outdated gear restrictions Stock Assessments and ACLs Quicker incorporation of new information Revisit red light – green light (slow up, fast down) Increase allowable carryover Revisit risk policy and level of precaution in setting ACLs Cooperative initiatives Benefits of cooperatives (access and risk) Facilitate development, consider broader risk pools Information exchange of industry innovation (share research)

Harvesting More Fish Considerations: The different fleets have different challenges and needs Harvesting decisions are driven by fear/risk What is the utilization goal for the fishery? What is realistic? What level of risk aversion is warranted in the fishery under the quota program? What are the scientific opportunities and constraints to obtaining more choke species quota (e.g., improving stock assessments, “credit” for hotspot closures) Are there opportunities for real-time management?

Growing Demand and Increasing Value Challenges: Costs are influencing fishing decisions which influence markets Not an identify for west coast groundfish Consistency – relates back to utilization – peaks and valleys – not a constant supply Regulatory challenges and utilization is the starting point Competition with global markets – price is a driver Communication and networking – lack of clarity and good communication Market timing challenges – relationship and interactions with other fisheries Lack of clear starting point – chicken and egg Lack of processing capacity Maintenance of product quality throughout the chain Old way of doing business – change is hard

Ideas and Opportunities Increasing value/demand/markets will help reduce impacts of costs Planning and coordination with processors to set up markets Communication Utilizing existing entities to drive collaborative relationships Marketing associations that can own the responsibility Reversing the narrative - storytelling Marketing an labeling (branding) – establish recognition Reversing the narrative - storytelling Wide spectrum of levels, using a variety of tools (e.g. social media) Cooperatives could play a supporting role Education and outreach Understanding what each part of the supply chain needs/wants Expansion of frozen markets Planning and coordination with processors to set up markets Niche markets Ability for frozen product to fill fresh market gaps Increase value through preserving quality

Growing Demand and Increasing Value Considerations: Price relationships (incentives and supply: demand: price relationships) Processers are not the final market What are regional considerations that influence markets and collaborations? Traceability and marketing come with costs – who should incur those costs? How much is enough when it comes to traceability and sharing information? What is the right level for marketing efforts? (species, region, etc.) Increasing demand requires a coordinated and dedicated effort