APPENDIX III APPENDIX III 
according to an industry official, because the cost of im- 
ported sardines has increased more than the cost of domestic- 
ally produced sardines. Higher foreign inflation rates, cur- 
rency adjustment which favored U.S. products, and depletion 
of European herring stocks were cited as major reasons for the 
relatively higher cost of imported sardines. 
Increased abundance of juvenile herring off the U.S. 
coast is needed for the United States to take full advantage 
of this opportunity. With increased abundance, imports of un- 
processed Canadian-caught herring could also be reduced. Over 
one-half of the 1975 U.S.-packed sardines, according to an in- 
dustry official, was processed from juvenile herring imported 
from Canada. 
The catching of adult herring by U.S. fishermen and the 
transfer of the catch directly to foreign vessels is also a 
possibility. A European industry official has had preliminary 
discussions with U.S. fishermen on this subject. 
In Alaska the fishmeal and oil markets provide an oppor- 
tunity for expanding the Alaskan herring industry. A 1972 
NMFS report pointed out that Alaska's herring processing 
plants were standing idle, although the resource was as 
healthy as ever. For example, in 1937, 249 million. pounds, of 
Alaska herring were used to produce fishmeal and oil, but the 
report said this industry failed due to increased foreign 
competition, high labor costs, and restrictive fishery regula- 
tion by Alaska. 
Another potential opportunity for the herring fishery in 
Alaska is the growth of the export market for herring roe and 
eggs on kelp. Between 1973 and 1974 the tonnage of these two 
herring products greatly increased. 
OBSTACLES INHIBITING GROWTH 
AND DEVELOPMENT OF THE FISHERY 
Resource availability 
Atlantic herring stock size and the resultant catches 
have shown wide natural fluctuations. Atlantic herring 
stocks off the U.S. coast are seriously depleted. Large in- 
creases in fishing effort helped maintain high catches despite 
a drastic decline in stock abundance. 
NMFS reported that, for Alaskan herring stocks, a relation- 
ship between the number of herring eggs produced and the re- 
sulting adult herring has not been established. Limited 
spawnings have occasionally produced a large number of fish, 
and heavy spawnings have sometimes resulted in small numbers. 
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