APPENDIX III APPENDIX III 
Foreign fishing fleets cannot compete in the fresh fish 
market because they are not allowed to land fresh fish in 
the United States. 
Processors buy frozen fish blocks from foreign countries. 
These blocks are partially thawed, breaded, and refrozen 
and the product is then sold to customers who package them 
as fish sticks. Much of the imported fish goes to fast 
food stores and other high-volume operations. 
Markets 
The United States is the principal market for groundfish 
products. This country consumed about 9. percent o£ the 
world catch of groundfish in 1972 and received 65 percent 
of the total world exports of fillets and billocks: In 1974 
the United States produced only about 2 percent of the 
blocks it used (table 4). 
Growth of the U.S. market for fillets and blocks has been 
phenomenal. In 1973 855.4 million pounds of groundfish 
products were consumed--practically all as fillets, steaks 
portions, or fish sticks. The annual market growth rate 
averaged 7 percent during the 5 years ending 1973, despite 
steady and sizable advances in price levels. 
The continued rise in import volume, up almost 300 per- 
cent in 10 years, has made possible the steady growth of 
the U.S. groundfish market. Domestic landings have not im- 
proved, although the steady deterioration of landings was 
arrested during 1970-73. Thus, ever-larger volumes of im- 
port fillets and blocks have been required to meet market 
needs. 
World demand for groundfish products has placed a bio- 
logical and economic strain on the supplies of traditional 
species. As a result, the composition and source of U.S. 
imports is undergoing a considerable change. The composi- 
tion (by species) and source (by country of origin) of U.S. 
fillet and block imports during 1968 and 1973 are compared 
ine alolewor 
Fifty-eight percent of U.S. block imports during 1972 
were cod and 15 percent were pollock. These shares shifted 
to 43 percent and 29 percent, respectively, during 1973. 
Cod blocks traditionally have been the preferred raw ma- 
terial for portions and sticks. The growing cod shortage, 
however, has forced increasing dependence on other species, 
especially Alaska pollock. 
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