APPENDIX III APPENDIX III 
vessels in the U.S. groundfish fleet can easily be con- 
verted to scallop fishing. 
Product development and processing 
With current market acceptance, there is little need 
to develop new product forms. Processing of sea scallops 
is relatively simple and current processing methods appear 
to be efficient. 
Marketing potential 
Scallops are a highly desired food item and enjoy a 
favorable marketing position capable of absorbing increased 
supplies. 
OBSTACLES INHIBITING GROWTH AND DEVELOPMENT 
Resource availability and management control 
Lack of information has been an obstacle limiting full 
determination of the availability of scallop resources. 
A new stock assessment is needed, particularly in relation 
to estimating the current population sizes and recruitment. 
While more data is needed, there is adequate information to 
initiate management regulations. On the basis of available 
data, NMFS officials believe that the Georges Bank resource 
is being overfished, primarily by Canadian fishermen. Many 
scallops, they explained, are harvested at sizes much 
smaller than the size producing maximum yield. NMFS offi- 
cials have also noted small sea scallops being harvested in 
Middle Atlantic scallop beds by U.S. fishermen. Adoption 
of proposed sea scallop size regulations, as noted previously, 
would belp to increase availability of this resource. 
Harvesting capability 
Although the exvessel price of scallops has been rela- 
tively high, reduced overall resource abundance and strong 
foreign competition limit opportunities for increasing the 
fleet size. Industry officials cited other general problems 
affecting the scallop fishery, such as import duties on 
foreign electronic fishing gear and high protection and 
indemnity insurance premiums because of the Jones Act (46 
WaSnlEs Wisks))c 
Product development and processing 
Processors of sea scallops indicated that their only 
obstacle to plant and product expansion is the limited supply 
of the resource. 
PS\l 
