Tag Archives: private equity firms
How foreign private equity hooked New England’s fishing industry
The 85-foot trawler, deep green and speckled with rust, was returning from a grueling fishing trip deep into the Atlantic swells. As sunrise broke over New Bedford harbor, the fish were offloaded in plastic crates onto the asphalt dock of Blue Harvest Fisheries, one of the largest fishing companies on the East Coast. About 390 million pounds of seafood move each year through New Bedford’s waterfront, the top-earning commercial fishing port in the nation. Leeman and his crew are barely sharing in the bounty. On deck, Leeman held a one-page “settlement sheet,” the fishing industry’s version of a pay stub. Blue Harvest charges Leeman and his crew for fuel, gear, leasing of fishing rights, and maintenance on the company-owned vessel. Across six trips in the past 14 months, Leeman netted about 14 cents a pound, and the crew, about 7 cents each — a small fraction of the $2.28 per pound that a species like haddock typically fetches at auction. Photos, >click to read< 12:04
Senators Demand Federal Scrutiny of Private Equity’s Incursion Into Fishing
Three U.S. senators, including two members of a Senate subcommittee that oversees the fishing industry, are calling for greater federal scrutiny of private equity’s incursion into East Coast commercial fishing. The ProPublica/New Bedford Light investigation found that a federal regulatory system known as “catch shares,” which was adopted in 2010 to reduce overfishing, has fostered private equity’s consolidation of the industry at the expense of independent fishermen. The single largest permit holder in the New England groundfish industry is Blue Harvest Fisheries, which has rights to catch 12% of groundfish, approaching the antitrust cap of 15.5%. The current antitrust cap “fails to prevent excessive consolidation in the fishery,” said Geoff Smith, one of 18 members of the New England Fishery Management Council, which advises NOAA. >click to read< 10:23
Investigation reveals private equity firms dominate the New Bedford fishing industry
A debate is raging in the local scallop industry about whether fishermen should be allowed to lease their permits. Supporters say the proposal could help fishermen with a small catch share, or those who can’t get out to sea, stay in the business, because they could lease their permit to another captain. Opponents worry it would allow big companies to consolidate the industry and push small fishermen out, similar to what has happened in the groundfishing industry. CAI’s Kathryn Eident talked with Will Sennott, a reporter with the New Bedford Light, about his investigation into permit leasing in the groundfishing industry, and how he found that some of the biggest winners are multinational private equity firms, not small fishermen. >click to read< 16:21
How Foreign Private Equity Hooked New England’s Fishing Industry
Before dawn, Jerry Leeman churned through inky black waters, clutching the wheel of the fishing vessel F/V Harmony. The 85-foot trawler, deep green and speckled with rust, was returning from a grueling fishing trip deep into the Atlantic swells. Leeman and his crew of four had worked 10 consecutive days, 20 hours a day, to haul in more than 50,000 pounds of fish: pollock, haddock and ocean perch, a trio known as groundfish in the industry and as whitefish in the freezer aisle. Leeman and his crew are barely sharing in the bounty. On deck, Leeman held a one-page “settlement 
sheet,” the fishing industry’s version of a pay stub. Blue Harvest charges Leeman and his crew for fuel, gear, leasing of fishing rights, and maintenance on the company-owned vessel. Across six trips in the past 14 months, Leeman netted about 14 cents a pound, and the crew, about 7 cents each — a small fraction of the $2.28 per pound that a species like haddock typically fetches at auction. >Photos, click to read< 08:01
