A tale as old as time: consolidation of the industry is bad for business, the environment, and the list goes on. It’s been 13 years since NAMA and New England fishermen warned decision makers that Catch Share policy would result in the fisheries equivalent of swapping out Main Street for Wall Street. 13 years since small-scale New England fishermen and NAMA offered safeguard solutions such as consolidation caps and owner-operator incentives - and been repeatedly and actively ignored.
Now we’re witnessing the results of fisheries decision-makers’ decisions when last week Blue Harvest - a vertically integrated seafood company controlled by billion-dollar private equity firm, Bregal - filed for bankruptcy and left millions in unpaid debt to local businesses.
The warning signs were there when in May 2016, Carlos Rafael was indicted on 27 counts of fraud and other charges covering more than 800,000 pounds of fish. Failed New England Catch Share policies enabled his manipulation and monopolization of the supply chain. Despite the compounding evidence that the system was broken, nothing changed. In 2020, 12 of Rafael’s boats, and 27 associated fishing permits, were sold to Blue Harvest, simply transferring the monopoly to another name.
Blue Harvest is the largest quota share owner in the Northeast, and with their bankruptcy filing, their 12% quota holdings have been locked up. It is unknown when that quota might become available. In addition to this, Blue Harvest is leaving millions in unpaid debt to local businesses. According to their filings, Blue Harvest’s debts total over $100 million to more than 1,000 independent contractors and companies.
As addressed in our media statement, along with the slew of economic consequences of the closure, Blue Harvest is leaving lasting ecological impacts. After their 2020 purchase of the Carlos Rafael quota, Blue Harvest heavily practiced pulse fishing on species like haddock. The added pressure on haddock from larger-scale vessels “contributed toward NMFS’s announcement the stock had become overfished and in 2023 the Council approved an 84% cut.” The impacts to haddock populations will ripple throughout the marine ecosystem.
Blue Harvest’s fishing practices, closure, and bankruptcy will leave independent fishing businesses and their communities devastated. Yet again, Catch Share management has fostered a monopolistic consolidation of the industry, leading to less resilient fishing communities whose well-beings are tied to the successes and failures of one major player.
To learn more about the Catch Share system, visit our Catch Shares 101 page.
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