The Portland Fish Exchange first opened its doors almost 25 years ago. At that time it was a state-of-the-art facility built to serve the multitude of fishing vessels in southern Maine. However, the past several years have been particularly hard on the fishing industry in Maine with changes in regulations, a dwindling fleet of vessels. The exchange, which acts as one of the last remaining sales points in the state, is struggling to keep its doors open.
Landings at the Portland Fish Exchange have declined steadily over the years, from 22 million pounds in 2005 to an estimated 2.5 million this year. The vendor population has also decreased from a high of 350 vessels in the late 90’s to about 20 active vessels involved with the exchange today.
The loss of landings has been partially blamed on a ban that prevents fisherman from selling lobster bycatch, as well as a five percent tax on diesel fuel. Many fisherman in Maine are choosing to land in Massachusetts where they have the potential to earn extra revenue by selling bycatch as well as the opportunity to fuel up without having to pay sales tax. Berthing space in Massachusetts ports are also cheaper.
State officials are aware of the struggle, but little has been done to address the exodus of boats to Massachusetts ports. “There was a one-year exemption on diesel fuel tax but no bill has gone into effect to remove it entirely,” says Bert Jongerden, General Manager of the exchange.
The fish exchange is making changes on the inside in order to stay afloat. Their crew of 12 full-time employees is a vast drop from the 65 they employed back in the 90’s. “We’ve rented off one-third of our net yard to a lobster bait operation-our revenue stream is probably 35 percent based on rental income now,” says Jongerden. “We also do bait storage, warehousing, really whatever we can to keep the lights on.”
In order to adjust to the changing climate, the exchange has also installed an online auction system so buyers can more easily source fish from them. The auction system was an investment made a few years ago in anticipation of fewer boat landings and has created additional and much-needed revenue.
A recent board meeting with city councilors and Terry Stockwell, director of external affairs at the Department of Marine Resources, resulted in an experimental period of blind bidding. Many sellers felt that the transparency of the auctions at the exchange was driving buyers off to the blind auctions in Massachusetts. The trial period began on October 11 and will last 90 days. “Doing this was prudent since we need to keep the boats happy. If they bring their fish here we can get our revenues back again,” says Jongerden.
It isn’t all bad news though. Jongerden has recently seen a slight perk in revenue as fishermen have been landing more Pollock. “Things are moving ahead now but it’s still pretty tenuous,” says Jongerden. “But if we can get the fisherman back to Maine, then we’ll be in business.”