Index
Overview
Fishing Ports and Commercial Landings
Commercial Fishermen
Wholesale and Distribution Sector
Foreign Trade in Seafood Products
Processing Sector
Retail Markets and Supermarkets
Restaurants/Food Service
Industry Summary

 

OVERVIEW

The seafood industry in New York is a diverse and highly dynamic collection of individuals and businesses. To adequately describe the industry and its economic importance we need to look at all of its sectors including: fish and shellfish harvesters, processors, wholesalers and distribution firms, and retail stores and restaurants that sell seafood directly to the consumer. 

New York’s Seafood Council and Sea Grant have collected information available from government and other sources for a number of years to help us better understand, describe, and communicate information about the size, diversity, and importance of New York’s seafood industry. The purpose of this “Industry Profile” is to combine information collected in 1995 with new updated information available from 1999 to 2000 that describes what we do know about New York’s seafood industry.

A recent New York Sea Grant study completed in 2001 attempted to estimate the economic contributions of the sport fishing, commercial fishing, and seafood industries to the economy of New York State. The following table and some of the information included in each of the subsequent sections contain summaries of many of the conclusions reported by economists from the Bethesda, MD firm of TechLaw, Inc. who conducted this study using available data for the year 1999.

“The New York seafood industry contributed at least $7.9 Billion to the economy of the state in 1999 and directly employed over 96,000 New Yorkers.”

Source: The Economic Contribution of the Sport Fishing, Commercial Fishing and Seafood Industries to New York State, New York Sea Grant Publication Number NYSGI-T-01-001, Stony Brook, NY, May 2001

To see an Executive Summary of this report and information on how to request a copy, Click Here.

Each industry sector makes essential and important contributions to the industry and its overall economic value to the state. Commercial fishing is the foundation of the seafood industry. Fishermen, like farmers, are the primary producers of a food product. To put the economic contribution of commercial fishermen in perspective, we can compare the value of the products that they harvest to the value of other agricultural food commodities produced in New York State. In 1999, fish and shellfish landings ranked fourth in value for raw food products produced in New York State. Milk production was first with an estimated value of $1.8 billion, followed by apples at $138 million, meat (beef, lamb and pork) at $131 million, and fish and shellfish at $76 million. The only other two food products produced in New York in 1999 with an estimated value greater than $50 million were grapes and potatoes.

New York State has a large and diverse population of over 18 million, accounting for about 7 percent of the total U.S. population. It’s no surprise that much of the state’s seafood industry consists of businesses that source, ship, distribute and sell seafood products to meet the needs and preferences of this large and diverse group of consumers. The industry’s largest sectors are wholesale businesses that find, buy, ship and distribute seafood products from every part of the U.S. and the world to the large number of seafood retail markets, supermarkets and restaurants that sell seafood to New York residents. Each sector of the industry is interdependent with the others, and they all work together to deliver seafood products to New York consumers. Each of the following sections summarizes currently available information on each of these sectors
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MAJOR NEW YORK FISHING PORT AREAS AND COMMERCIAL LANDINGS

Commercial fishing has been a New York tradition since colonial times. It continues to be an important economic activity today, and a variety of individuals and families still make their living catching fish and shellfish. Most commercial fishing activity occurs in the coastal and ocean waters that surround Long Island including the Island’s numerous bays, Long Island Sound, and the Atlantic Ocean. A small number of commercial fishermen also catch some types of fish in freshwater rivers such as the Hudson and in the Great Lakes.

Commercial fishing ports are located along the South and North shores of Long Island from Brooklyn and the Bronx in New York City to the eastern tip of the Island’s North and South Forks. New York’s largest commercial fishing ports are Montauk, Shinnecock/Hampton Bays, and Greenport all located on the East End of Long Island. For more information on the two largest NY commercial fishing ports see the industry profiles of Montauk and Shinnecock.

 

According to estimates published by the National Marine Fisheries Service, in 1999 there were 678 commercial fishing vessels (craft greater than 5 net registered tons) and 2,825 fishing boats (craft less than 5 net registered tons) in New York. These numbers may be lower than the actual number of vessels operating in New York because they do not include vessels with no federal permit (for example in-shore vessels who only work in state waters) and individuals who live in New York but keep their vessels in non-New York ports. The types of vessels operating in NY range from small 15-foot clam boats that work in near shore bays to large 90-foot deep-sea trawlers or longliners that often fish hundreds of miles from shore in the Atlantic Ocean.

Both the amount and value of New York landings have fluctuated over the past several years, and decreased significantly since 1997. Much of the recent decrease in commercial landings can be attributed to new fisheries management regulations that have limited the commercial catch of many different types of fish, and the 1999 lobster mortality that occurred in Long Island Sound which was declared a marine resource disaster by the Secretary of Commerce in January 2000.

In 2000, 41.3 million pounds of fish and shellfish with a dockside value of $59.6 million was landed in New York according to the National Marine Fisheries Service. This is a significant decrease from the peak reached in 1997 when 63.0 million pounds of fish and shellfish were landed in New York with a dockside value of $97 million. Studies have estimated that the total contribution of commercial fishery landings to the local economy is 3 to 4 times the reported dockside value. For 1999, the New York Sea Grant study estimated that New York’s commercial fishing industry contributed a total of $149.6 million to the state’s economy and directly employed approximately 10,500 New Yorkers. Yearly landings statistics for the past three decades are summarized in the two figures below.

 

 

In 2000 the amount of finfish harvested in NY was about 17.5 million pounds or about 43% of the total catch. The amount of squid harvested was 12.2 million pounds or 29% of the total catch, and the amount of shellfish (primarily bivalves and crustaceans like clams, oysters, and lobsters) harvested 11.6 million pounds or 28% of the total catch. However, the shellfish harvest made up 60% of the total dockside value of the commercial catch at $36 million as compared to $15.9 million (27% of the total value) for all fish species combined, and $7.7 million (13% of the total value) for squid. The major species landed by New York commercial fishermen in order of total volume and their total dockside value in 2000 include:

* Flounder includes summer, winter, yellowtail, witch and windowpane flounder
** Tuna includes albacore, bigeye, blackfin, bluefin, little tunny, skipjack & yellowfin
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COMMERCIAL FISHERMEN

The harvesting or commercial fishing sector of the industry is a diverse group of individuals and businesses whose income is derived in whole or in part by selling the fish or shellfish that they harvest. New York State requires residents who take and land food fish for commercial purposes (taking food fish by any method for subsequent sale, trade or barter) to purchase a commercial fishing license. It is not legal to sell fish without this license. In addition, a license is required to commercially harvest crustaceans (lobsters and crabs) and shellfish (hard clams, soft clams, surf clams, oysters, mussels, and scallops). These licenses are available from the NYS Department of Environmental Conservation (DEC), and specific fees and qualifying criteria are associated with each type of license. The following table summarizes the commercial fishing permits issued in 2000 and in 1995. The number of individuals who purchased permits in each category decline significantly (from 27% to almost 50%) in the period from 1995 to 2000.

Data on employment in the commercial fishing industry is limited. Neither the U.S. Bureau of the Census nor the U.S. Bureau of Labor Statistics, the two primary sources of employment data for the United States, collect information on self employed persons. The majority of commercial fishermen in New York are self-employed. The 2001 NY Sea Grant report estimated that 10,500 New Yorkers were directly employed in the commercial fishing sector in the state. The following table summarizes how that estimate was derived by estimating employment associated with various commercial fishing permit categories.

Estimated Number of Employees in NY’s Commercial Fishing Industry, 1999

Source: The Economic Contribution of the Sport Fishing, Commercial Fishing and Seafood
             Industries to NY State, NY Sea Grant Publication NYSGI-T-01-001, Stony Brook, NY, May 2001.

Fishermen in New York use a variety of different types of gear depending on the targeted species and where fishing occurs. The following charts, based on National Marine Fisheries Service statistics, identify the major types of fishing gear utilized by New York fishermen and their relative contribution to New York’s commercial harvest in terms of both the volume and value of the commercial catch in 2000.

In New York, commercial fishermen work both in offshore ocean waters and the numerous in-shore waters bays on the south shore of Long Island and Long Island Sound. Where fishing occurs depends on the type of fish or shellfish that the fisherman is planning to catch. Approximately two thirds of the commercial shellfish catch, primarily lobsters, clams, oysters and crabs is harvested in waters under state jurisdiction up to three miles from the shore. In contrast, from two thirds to three fourths of the commercial catch of finfish and squid are caught in offshore waters under federal jurisdiction from 3 to 200 miles from the shore. The following table summarizes where New York’s commercial harvest of finfish, squid and shellfish were caught in 2000.

     New York Commercial Fishery Landings in 2000 by Distance from Shore

 

 

The 2001 NY Sea Grant economic study attempted to characterize where NY commercial fisherman sold their products. Overall, almost two thirds of NY’s commercial catch is sold to wholesalers. While there is considerable variation from one type of fishery to another, the following chart summarizes where commercially harvested seafood products in New York are sold.

Commercial Fishing Summary

Commercial fishery landings have decreased in recent years due to fisheries management regulations and the lobster mortalities in Long Island Sound. In 2000, 41.3 million pounds of fish and shellfish with a dockside value of $59.6 million were landed in NY. The major commercial species landed in NY are squid, lobster, hard clams, surf clams, whiting and flounder. Approximately 72% of the total catch was finfish and squid with almost three fourths of this catch harvested in federal waters 3 to 200 miles from shore. Only 28% of the total commercial harvest was bi-valve and crustacean shellfish. Three species comprised over 90% of the shellfish harvest including: surf clams 48%,  lobsters 26%, and hard clams 20%.  According to the National Marine Fisheries Service, 95% of the commercial harvest of these three species occurred in state waters 0 to 3 miles from shore. The major commercial fishing gear types ranked in order of their total contribution to the total value of the commercial harvest were: tongs and rakes for clams and oysters; otter trawls for squid, hake, flounder and other finfish; lobster pots and traps; clam dredges for surf clams; longlines for tilefish, tuna and other pelagic species; hand lines and then gill net for finfish species. The latest estimate of the number of New Yorkers employed in commercial fishing was 10,500 in 1999.
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WHOLESALE AND DISTRIBUTION SECTOR

New York has one of the largest consumer marketplaces in the country. A major part of the state’s seafood industry consists of the large network of wholesale and distribution businesses that supply the products needed by retailers and restaurants to satisfy their customer’s demand for seafood products. There are many different types of wholesale businesses that specialize in supplying a variety of different products and markets. Business activities can range from small wholesalers who buy products from local fishermen and sell them to local retail stores or restaurants to large NY based importers who source products from around the world and sell them in markets across the U.S.

Wholesale operations tend to be versatile and diverse businesses that are dynamic and constantly changing to take advantage of new opportunities or to adapt to changing market conditions. These businesses may also be involved in other activities such as processing or retailing which makes it difficult to identify all businesses in the wholesale sector of the seafood industry, the number of people they employ, and their contribution to New York’s economy.

Estimates of the size and contribution of the wholesale sector of the seafood industry are available from several sources. The National Marine Fisheries Service estimated that in 1999 there were 355 seafood wholesale “plants” in New York that employ an average of 2,748 individuals. A comparison of NMFS figures for other states shows that only Alaska, California, Florida and Massachusetts have more wholesale seafood businesses than New York. The 2001 NY Sea Grant study estimated that there were 310 fish and seafood wholesalers that employed 4,100 people in New York in 1997. 

The 2001 NY Sea Grant economic study estimated that the total sales of wholesale fish and seafood products in New York was just over $2.0 billion in 1999. Approximately one third of the total sales of the state’s seafood wholesalers occurred at New York City’s Fulton Fish Market. The total contribution of the wholesale sector (including Fulton Market) to the economy of New York State in 1999 was estimated to be $1.7 billion, including almost $800 million in value added to the seafood products that these firms bought and sold. 

 

Fulton Market

The Fulton Fish Market in Manhattan is the largest wholesale seafood market in the U.S.  For over a century, seafood products from the entire Atlantic seaboard and other parts of the U.S. and the World have been shipped to Fulton Market for display and sale to retail stores and restaurants throughout the New York City metropolitan area. Between 50 to 55 individual businesses are located at Fulton Market. Each business locates, buys, receives, displays, and then sells a variety of different seafood products to a range of regular and casual customers who specifically travel to Fulton to purchase the seafood products they need. Some firms specialize in certain types of products or products from specific parts of the country or the world. Total employment at Fulton was estimated to be approximately 600 New Yorkers in 1999. In the 2001 NY Sea Grant economic study, total sales at Fulton Market were estimated to be $655 million in 1999. This estimate of total sales is based on the 218.3 million pounds volume of fish handled by Fulton Market’s establishments in that year, estimates of the sources and value of these inputs, and the value added by these businesses. Fulton Market’s total direct contribution to the economy of NY State was estimated to be $545 million in 1999. 

Product Flow in New York Wholesale Businesses

The 2001 NY Sea Grant economic study attempted to characterize the source of products used by wholesale businesses in New York and where those products were sold.  Although there is considerable variation from one wholesale business to another, two models were developed: one for Fulton Market and one for all other seafood wholesale businesses in New York.

 

Fulton Market wholesalers buy two thirds of the seafood products that they sell from other states in the U.S. and one fifth from foreign sources.  Almost half of the product sold by other New York wholesalers comes from foreign sources with an almost equal amount from processors, other U.S. states and Fulton Market.  Almost half of the products sold at Fulton Market are purchased by retail seafood markets, and about one fifth by restaurants in the New York City metropolitan area.

The primary customers for the rest of NY’s wholesale businesses are restaurants and food service operations (60%) and retail markets/supermarkets (30)%. It was estimated that approximately 10% of the customers who buy seafood from NY seafood wholesalers are located outside the state.
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FOREIGN TRADE IN SEAFOOD PRODUCTS

New York is a major center for international trade in seafood products. The 2001 NY Sea Grant study estimated that in 1999 there were 171 firms in New York involved in the import or export of seafood products. Of these, 142 or 83% were located in the five boroughs of New York City. Many of these firms are involved in the import or export of seafood products, as well as wholesale sales to retail markets and restaurants. Seafood moves into and out of the region to or from distant markets by land (truck) and by air and ocean carrier. There are three customs districts where seafood products enter New York: at Buffalo, Ogdensburg and New York City.

Imports - According to the 2001 NY Sea Grant economic study, a total of 501.1 million pounds of seafood products valued at $1.15 billion were imported through the three ports of entry into New York State. The New York City customs district accounted for 91% of the total volume of imports and 95% of the total value. New York accounted for approximately 7% of the total value of all seafood products imported into the U.S. in 1999. In 1999 approximately 54% of all seafood imports arrived by land, 36% by sea, and 11% by air. Major seafood products imported into New York ranked by dollar value included: shrimp imports were valued at $490 million or 44% of the total dollar value of all edible seafood products imported; tuna $131.6 million or 12% of the total; lobster $83.4 million or 8% of the total; salmon $71.3 million or 6% of the total; and all other marine fish $48.2 million or 4% of the total imports. 

Exports – According to the 2001 NY Sea Grant economic study, 158 million pounds of seafood products valued at $339.2 million were exported from New York State. The New York City customs district accounted for 55% of the total volume of exports and 69% of the total value. New York accounted for approximately 3% of the total value of seafood exported from the U.S. in 1999. About 54% of the exports from New York were by land, 23% by sea, and 24% by air.

 

Shellfish Shippers

Another unique component of the wholesale sector of the seafood industry are firms specifically licensed to ship bi-valve shellfish (clams, oysters, mussels, and bay scallops). Permits are required in New York and other states to process or ship these products. There are currently 7 different types of shellfish processor or shipper permits available in New York. Each permit allows the holder to ship certain specified types of products in either inter or intra state commerce. Some individuals or firms in each permit category may only be involved in buying and selling shellfish while many others also wholesale a variety of other seafood products in addition to shellfish. The following table summarizes shellfish shippers permits sold by the NYS Department of Environmental Conservation in 2000 and 1995. For descriptions of permit categories see the DEC’s Marine Fisheries Environmental Conservation Law. The number of firms or individuals holding these permits has decreased significantly (by as much as 55%) from 1995 to 2000 in all permit categories except for Class B shippers.

Wholesale Summary

The wholesale sector is the largest sector of New York’s seafood industry other than restaurants that only derive a portion of their total sales from seafood products. There are approximately 350 firms involved in wholesaling and distributing seafood products in New York. Wholesale sales in New York were over $2.0 billion in 1999, and wholesalers contributed over $1.7 billion to the state’s economy. Approximately one-third of the total sales in this industry sector occur at New York City’s Fulton Fish Market. International trade represents a significant portion of all seafood economic activity in New York. More than $1.1 billion worth of seafood products were imported in 1999 by the 171 firms (83% in New York City) involved in importing seafood, and almost $340 million worth of seafood products were exported.

PROCESSING SECTOR

The seafood processing sector in New York is characterized by a small number of establishments that exclusively or primarily process seafood and many more that process seafood as one of a number of different activities. Firms engaged in multiple activities may also be involved in wholesale, retail or other activities making it difficult to profile this industry sector. Determining the exact number of processors in New York is difficult because various government agencies define “processing” differently depending on their responsibilities or area of jurisdiction.

In 1998 the Bureau of the Census reported that there were 18 establishments with a total of 339 employees in New York where seafood production, preparation and packaging was the primary business activity, 7 firms with 225 employees involved in seafood canning, and 11 firms with 48 employees involved in fresh and frozen seafood processing. Most of the establishments reported by the Bureau of Census were small with 11 having fewer than 10 employees, 3 with fewer than 20 employees and only two with more than 100 employees. The National Marine Fisheries reported that there were only 7 seafood processing plants In New York that employed 179 people in 1999. In 2000, 20 firms held the Class A permit from the NYS Department of Environmental Conservation that allows the firm to both process and ship bivalve molluscan shellfish.

An analysis of records from the New York State Department of Agriculture and Markets reported in the 2001 NY Sea Grant economic study showed that there are at least 1,250 establishments in New York that do some seafood processing. Of these firms, 1172 are also retail markets or grocery stores. The NY Department of Agriculture and Markets categorizes the type of processing activity conducted in these establishments. By far the greatest number of establishments (930) were packing seafood, and 614 were cooking or otherwise heat treating seafood products. Most of the establishments are believed to pack or cook seafood products for retail sale at their own establishment.

F & L Fillet Company, Fulton Fish Market, New York City, New York

There are a number of firms that are involved in more complex processing activities that produce a variety of specialty seafood products from smoked and pickled fish to gefilte fish, sushi and other items. According to NYS Department of Agriculture and Markets records there were 70 firms that smoke seafood products and 9 firms that pickle seafood products. Of these, 13 firms smoke seafood products only and 3 firms pickle seafood products only. This data is consistent with industry observations that New York has been and continues to be a major producer of smoked fish and other specialty seafood products. At one time Brooklyn in New York City was deemed the smoked fish capital of the U.S. There are still at least a dozen firms in Brooklyn and Queens whose primary activity is the processing of smoked fish products. These firms primarily process cold smoked salmon and a variety of other cold and hot smoked fish products. It has been estimated that these firms produce several million pounds of smoked fish products annually for sale to retails stores, delicatessens and restaurants in New York and across the country.

The 2001 NY Sea Grant economic study also attempted to characterize New York processor’s sources of seafood products and identify where these processors sold their products. The majority of seafood products purchased by processors were from foreign sources and their products were primarily sold to wholesalers/distributors, retail stores or restaurants. The following tables summarize inputs and outputs for seafood processors in New York as described in this study.

The 2001 NY Sea Grant economic study estimated that the processing sector of the New York seafood industry had $369 million in total sales in 1999. This study also estimated that the processing sector of the seafood industry directly employed 1,500 individuals and contributed $386.8 million to the economy of New York State. The majority of the seafood processing firms are located in New York City and Long Island.

RETAIL MARKETS AND SUPERMARKETS

Retail fish markets and supermarkets comprise another large sector of the seafood industry in New York both in terms of the number of businesses and number of employees. Information about this sector was compiled in the 2001 NY Sea Grant economic study using data provided by the NYS Department of Agriculture and Markets which licenses food processing and retail businesses in New York and data from the U.S. Bureau of the Census.

In 2000, NY Department of Agriculture and Markets data showed a total of 1,220 markets in New York State that sell seafood products. Of these, approximately 400 appeared to primarily or solely sell seafood products directly to the public. In comparison, 1997 data from the U.S. Bureau of the Census showed that there were 10,418 “grocery” stores in New York State and 1,175 meat and fish markets. Census data also showed that these grocery stores had 176,923 employees and the meat and fish markets had 4,902 employees. Based on estimates of the total value of retail sales of fish and seafood for these stores and figures for typical sales per employee at these establishments, the Sea Grant study estimated that there were 10,100 New Yorkers whose employment was directly related to the retail sales of fish and seafood products.

Overall sales for grocery stores in New York State totaled $24.3 billion in 1997 and sales for meat and seafood markets totaled $759 million. The NY Sea Grant study estimated that seafood accounts for approximately 5% or $1.3 billion of the total sales at grocery stores and approximately $217 million at specialty markets in New York.

Based on these estimates, the 2001 NY Sea Grant economic study concluded that the Supermarket/Fish Market sector of the seafood industry contributed approximately $700 million to the economy of NY in 1999 and employed over 10,000 New Yorkers.

The Sea Grant study also attempted to characterize where retailers get the seafood products that they sell. Although there is considerable variation depending on the type of retail operation and where they are located in New York, the primary source of seafood products for retail sale is from wholesalers. The following table summarizes estimates of where the retail sector as a whole gets the seafood products that it sells.

RESTAURANTS/FOOD SERVICE

New York restaurants are a major part of the state’s seafood industry by virtue of the value that they add to each fish and seafood product that they purchase, prepare and sell. This activity makes a substantial contribution to the economy of the state and is a significant source of employment. Because of the large number of restaurants in NY and the high value of the products that they sell, the portion of this industry directly dependent on seafood sales makes it the largest sector of the NY’s seafood industry.

The 2001 NY Sea Grant economic study used U.S. Bureau of Census data on the number of restaurants in New York, their employment and sales to estimate the portion of that total that could be directly attributed to seafood products. In 1997 the Census Bureau estimated that there were 30,329 restaurants in New York with total sales of $15.7 billion that employed 375,706 people. Based on estimates of the sources and value of seafood products in NY and the value added by restaurants, this study estimated that restaurant sales of fish and seafood in New York was $3.4 billion in 1999. Using estimates of the portion of total restaurant sales related to seafood and typical sales figures per employee, this study estimated that total restaurant employment related to seafood sales was 70,000 in New York in 1999. The overall economic contribution associated with the sale of seafood products by the restaurant sector of the industry was estimated to be almost $5.0 billion in 1999.

The 2001 NY Sea Grant economic study also attempted to characterize where restaurants and food service operations in New York purchase the seafood products that they sell. Although there is considerable variation depending on the type of retail operation and where they are located in New York, the primary source (almost 90%) of seafood products purchased by restaurants is from wholesalers. The following table summarizes estimates of where the restaurant/food service sector as a whole gets the seafood products that it sells.

INDUSTRY SUMMARY

“New York has a large and diverse seafood industry that contributed $7.9 Billion to the economy of the state in 1999 and employed for over 96,000 New Yorkers.”

The state’s large and diverse consumer population influences the size and makeup of the New York’s seafood industry. The industry’s largest sectors are the restaurants and retail markets that sell seafood products directly to consumers. The second largest industry sector is the wholesale businesses that locate, buy, distribute and sell seafood products from New York as well as from the rest of the country or the world to these retail stores and restaurants. Primary production businesses including processors and commercial fishermen are important sectors of the industry and add the most value to the seafood products they catch or process. While these two sectors are not the largest in New York State they have the potential for the greatest economic return to the state. The following describes a scenario that would generate the greatest economic benefit to the NY economy: a fish is caught by a New York fishermen and then sold to a NY processor who fillets the product and then sells the fillet to a NY wholesaler who then sells it to a NY retail store or restaurant who sell it to a NY resident. Each NY firm adds value to the product and that added value contributes to the economy of the state. This multiplier effect, however, is limited because the total amount of fish and shellfish harvested commercially in New York represents a very small portion of the total demand in the state. For this reason, the majority of the seafood products sold in New York must be brought in from other parts of the U.S. as well as many other countries around the world. The state’s large wholesale/distribution sector has developed to provide the services that make it possible to meet this existing demand.

Montauk Lighthouse, Montauk, New York

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