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Topic 1: Tbe intrinsic characteristics of Pacific whiting and 

 relevance to public regulation of the resource. 



Pacific whiting is the largest stock of groundfish found off the 

 West coast of the United States (excluding Alaska) (Dorn et al. 

 1990) . The off-shore stock of Pacific whiting is characterized by 

 a complex set of biological and intrinsic (pre-harvest) product 

 quality characteristics — characteristics which for three decades 

 have confounded the domestic industry's ability to successfully 

 process and market Pacific whiting products (Sylvia and Peters 

 1991) . These characteristics include: 1) high annual variation in 

 recruitment; 2) complex annual migration patterns across three 

 national borders (Mexico, the United States, and Canada); 

 3) spatial segregation of fish by age class during summer feeding 

 (smaller and younger fish tend to stay south, larger older fish 

 tend to travel further north) (Dorn et al. 1990, Dorn and Methot 

 1992) ; 4) a relatively soft and delicate flesh which bruises easily 

 if mishandled; 5) infestations of myxosporidia parasites which can 

 make the fish unsightly; 6) high level of protease enzymes (in 

 conjunction with the myxosporidia parasites) that can turn the 

 flesh into "mush" if the product is not handled carefully during 

 catching, processing, distribution, and food preparation, and; 7) 

 annual variation in proximal content (protein, moisture, lipids, 

 ash) that may affect recovery rates, quality, and prices for 

 processed products (see Marine Fisheries Review 1985, volume 47 

 (2) , for a review of many of these issues) . 



These issues are critical because where, when, and how the fish are 

 captured and processed can affect the economic benefits generated 

 from the fishery by impacting total stock size and allowable 

 harvest, stock variability, product characteristics, supply 

 availability, shelf life, and a number of other intrinsic and 

 extrinsic product quality characteristics (Enriquez 1992; Enriquez 

 and Sylvia 1992). In turn, these characteristics can affect the 

 total volume and quality of output products, impact market price 

 and production costs, and ultimately affect the long-run investment 

 decisions to improve and control product characteristics for a 

 relatively wide range of marketable products. 



To put these issues into perspective the stock of Pacific whiting 

 may be thought of as a capital asset. Because it is a renewable 

 resource the value of the asset can grow and change over time as a 

 result of biological factors, regulatory decisions, and market 

 conditions. Like an investment in a savings account or the stock 

 market, the investor must decide on the timing, amount, and form of 

 the withdrawal (harvests) in order to maximize benefits from 

 managing the investment (the resource stock) over time. 



This perspective has particular relevance for Pacific whiting given 

 its variability and temporal and spatial characteristics. 

 "Withdrawals" (harvests) which are not optimally controlled can 

 result in lower returns to investors (i.e., the industry and 



