Japan's Squid Fishing Industry

WILLIAM G. COURT

Introduction Korea, Thailand, and Taiwan have es­ oceanographic changes, but it is now tablished squid fisheries, a quality widely attributed to overfishing. Dried-squid (surume) has been an product, and good access to Japan's Increased catches by Japanese boats item of commerce, ceremony, and diet markets, and many other nations are overseas have characterized the past 10 in Japan for hundreds of years, and actively developing squid fisheries to years. In 1977 this figure reached about squid is caught and is a popular food compete for that market. Con­ 18 percent of Japan's total squid land­ throughout the island nation. sequently, increases in supply may hold ings of 490,000 tons and continues to Immediately after World War II, squid prices down (Rodgers, 1979). rise. Squid imports have been increas­ food shortages, a surplus of labor, and Also, Japan prefers frozen to pro­ ing since initiated in 1971, and in 1978 the low capital investment required for cessed imports and this discourages achieved a record high of about squid jigging stimulated the rapid de­ processing and the investment oppor­ 100,000 tons, or 10 percent of the vol­ velopment of the fishery. In 1952 squid tunities it offers. Furthermore, Japan is ume of total fishery imports. landings reached 646,730 tons and, at more interested in joint ventures or In 1978 over 85 percent of the land­ 15 percent of the total, became Japan's other access to foreign fishing grounds ings in Japan's waters consisted of T. most abundant landing. than in merely purchasing squid, and pacijicus and Ommastrephes bartrami Until the mid-1960's most landings some nations are more disposed to such (LeSueur). Loligo pealei (LeSueur) were dried and much of the product was arrangements than is the United States. and lllex illecebrosus (LeSueur) from exported to China. Since then domestic Thus the United States faces severe the northwest Atlantic, lllex argen­ ... markets have been developed for a wide competition, and it will be difficult to tinius (Castellanos) from Argentine variety of fresh, frozen, and processed establish squid markets in Japan. The waters, Nototodarus sloani gouldi products and demand has increased. following discussion attempts to intro­ (McCoy) from Australia, and The main cause of worldwide de­ duce Japan's squid fisheries and mar­ velopments in squid fisheries within the kets and to provide some background past decade has been the inability of against which to evaluate strategies for Japan's squid fisheries to continue to developing the U.S. squid fishing meet this demand from waters adjacent industry. to Japan. The overseas extension of Ja­ 700 pan's squid fisheries and the rise of The Fishery foreign squid fisheries to supply Ja­ pan's markets attests to this. Today Japan's domestic landings have been squ id resources are depleted in Japan's decreasing since reaching a record high waters and the nation's overseas squid of 773,777 tons in 1968, and although fisheries are increasingly restricted. Todarodes pacificus (Steenstrup) pre­ Consequently, Japan's squid imports dominated until 1970, the composition are increasing and its squid fishing in­ of the landings has changed markedly dustry is actively seeking and par­ since then (Fig. 1). Depletion of the T. ticipating in joint ventures overseas. pacijicus resource was influenced by o'------'-_--'-_L-----L_-'----'__ What opportunities does Japan's 1963 1965 1967 1969 1971 1973 1975 1977 squid market offer the U.S. fishing in­ Year dustry? Unlike salmon and crab, the major U.S. exports to Japan, squid is a William G. Court is a research student at the Tokyo University of Fisheries, 4-5-7 Konan, Figure I.-Japan's squid landings, relatively low-value item and it is Minato-ku, Tokyo 108, Japan. Home Address: 1963-77. Solid line = "Surume­ widely available in the waters of na­ c/o HASHIO, 3-7-9 Kita, Koenji, Suginami-ku, ika" (Todarodes pacificus, Tokyo 166, Japan. Views or opinions expressed Nototodarus sloani sloan;, etc.); tions with fishing costs considerably or implied do not necessarily reflect the position dashes = other squid (Ommastrephes lower than those of the United States. ofthe National Marine Fisheries Service, NOAA. bartrami, Loligo spp., etc.).

July-August 1980 1 .. Nototodarus sloani sloani (Gray) from equipment is the electric generator New Zealand constituted most of Ja­ which, because of the high power de­ pan's overseas landings. Imports were mand of the squid-attracting lights, ­ dominated by the same species with the may have a capacity of as much as 300 exception of O. bartrami. kW on a 30-ton boat. However, many About 70 percent of Japan's squid feel such bright lighting is unnecessary landings are caught by jigging, a simple and wastes precious fuel. There are un­ mechanized method which usually enforced limits on the power of light­ takes place at night when bright over­ ing, but gross violation is reportedly head lights attract the squid. Jigs, 6-cm common. However, the Kudo Fisheries lures with clusters of unbarbed hooks, Cooperative Association in southern are secured at 90-cm intervals on a Hokkaido, the northernmost of Japan's monofilament line which is continu­ Typical Japanese squid jigs. Photo main islands, has for 10 years limited ously lowered and raised with a jigging courtesy of the Yamaha Fishery its 10-ton boats to 15 kW, and this motion at depths of 30 m to more than Journal. cooperative has one of the best landings 140 m. Squid, attacking the moving and income records in the region. jigs, ensnare their tenacles on the Most boats over 90 tons and some of hooks. The jigs shift to a horizontal schemes. Most smaller boats are made the smaller ones have freezing equip­ position when reeled aboard, and thus of either wood or ferro-reinforced plas­ ment on board. The 90-100 ton boats the squid readily become disengaged. tic while steel hulls predominate in usually have a freezing capacity of8-12 The percentage of squid landed by those over 50 tons. tons and the larger boats 10-17 tons per jigging is declining; other fishing Since 1963, the proportion of land­ day, and an experienced crew must methods include use of drift gillnets, set ings made by jigging has changed work a hard day plus overtime to freeze nets, and bottom trawls. Most of Ja­ markedly by size of boat. The percent­ this amount. Virgin grounds with a lim­ pan's squid fishing off North America, age of landings by boats less than 3 tons ited number of boats could yield Argentina, and Africa, and some of that and by 10-50 ton boats has decreased catches in excess of these quantities, in in home waters, is by trawlers. That off almost two-thirds and that of 3-10 ton which case access to large-capacity New Zealand is by a combination of boats has remained constant. The shore-based freezing and storage trawlers and jigging boats. In 1979, large-scale and 90-100 ton boats made facilities or other arrangements would jigging on a limited scale began off less than 5 percent of the landings in have to be made. However, the catch eastern Canada. 1963 and now account for over 50 per­ per unit effort (CPUE) on the Japanese ­ Trawling endangers both squid and cent of the total. These changes reflect and New Zealand fishing grounds is not other resources because it catches ev­ the increase in the scale of the boats, sufficient to make this a problem. erything without discrimination and the shift in the focus of the fishery from One of the 99-ton boats jigging ex­ seems to damage small squid which es­ coastal to offshore waters, and the de­ perimentally off eastern Canada has cape through the mesh. Jigging catches velopment of Japan's overseas jigging been specially equipped with expanded only squid and exerts less pressure on fisheries. freezing capacity. However, limited the resource per unit of effort than does Of the approximately 30,000 small­ storage space on this size boat necessi­ trawling. Therefore, as a resource man­ scale boats which jig for squid, 86 per­ tates frequent trips to shore, thus reduc­ agement measure, the Canadian Gov­ cent also fish for other species. How­ ing time on the fishing grounds and, in ernment has reportedly considered en­ ever, 42 percent of the medium-scale turn, efficiency. couraging the foreign boats fishing for boats and all of the large-scale boats The high costs of large-scale boats squid within Canada's 200-mile zone to fish only for squid. The number of discourages their use by the coastal na­ shift to jigging (Watanabe'). medium-scale boats has decreased to tion. Therefore a barge-mounted, highly Japanese squid jigging boats are di­ 2,300 in the past 6 years, but the automated freezing plant might be con­ vided into three classes: Small-scale, number of 90-100 ton boats has in­ sidered for use in conjunction with 1-30 ton; medium-scale, 30-100 ton; creased. Of the latter, 646 or 77 percent small- and medium-scale boats for the and large-scale, 100-500 ton. How­ are highly efficient, specially designed offshore fishery. Another application ever, the Japanese system computes squid jigging boats. The number of for a barge might be for preliminary fishing boat tonnage at one-half to large-scale boats has been fixed at 212 processing at sea to avoid expensive one-quarter of the value which would since 1973, but through license transfer land-based waste-water treatment and be assigned by standard classification their average size has increased annu­ disposal problems. Some Japanese pro­ ally. Most of these boats are former cessors feel that this would require such tuna long-liners, but recently several a large barge and would entail so many 'Hidenobu Watanabe, Managing Director, such boats have been designed and built logistical and other problems as to be Ogura Fisheries Company, 2-7 Bandai Shima, Niigata-shi, Niigata-ken, Japan 950. Pers. com­ specifically for squid jigging. unfeasible; however, one U.S. com­ mun. One of the most important pieces of pany is considering it.

2 Marine Fisheries Review I I I Hokkaido has traditionally been a .... /" ..... / major focus of Japan's squid fishery, CHINA \ RUSSIA I and the squid fishing industry is still I I centered in northern Japan. The Tsug­ lV- am Strait runs betweek Hokkaido and I' Aomori, the prefecture at the northern // '().0 extremity of Honshu, Japan's main is­ NORTe-KOREA d l·~_ land, and connects the Pacific Ocean .j; with the Sea of Japan. Strategic loca­ / '\ so." '00' PACIFIC OCEAN 'f! tion on this waterway provides access ;r to the major squid fishing grounds and OUTH :OREA ..0 is an important factor in the prominence /' of this area in the industry (Fig. 2). ljv / / KURIL ISLANDS Hokkaido and Aomori, home of38 per­ /0 • Li (RUSSIA) cent of the medium-scale and 55 per­ F cent of the large-scale squid jigging ~/I WOKU ~." :'V{. KYUSHU boats, accounted for well over half of Japan's squid landings in 1978. Some East China Sea HOKKAIDO 2,000 companies scattered throughout Japan process squid and it is the main Figure 2. -Japan and adjacent areas. product of 200 of these. However, pro­ duction is concentrated in and around Hakodate, a port in southern Hokkaido; Hachinohe, Aomori's major port; and Ohata, an Aomori port on the Tsugaru fishery for O. bartrami developed in the tions within the restricted area have Strait. Leading manufacturers of squid northwest Pacific east of Hokkaido and been by licensed squid jigging boats processing equipment and the major northeast of Honshu, and in 1978 this and many others are participating. This producer of automatic squid jigging species accounted for almost half of the situation has arisen partially because machines are located in Hakodate and squid caught in Japan's waters. most squid jigging boats are operating adjacent areas. In 1978 a major drift gillnet fishery at a financial loss . The drift gillnet boats The fishery for T. pacificus begins in for O. bartrami rapidly developed in have catch rates about ten times that of May with fishing for small squid off the northwest Pacific. Initially most of the jigging boats and considerably western Kyushu and gradually moves the participants were salmon drift lower fuel consumption (Anonymous, northward as the growing squid swim gillnet boats after the close of their sea­ 1979a). However, drift gillnetting is toward the nutrient rich waters off son, but many squid boats soon joined applicable to only certain species of northern and eastern Hokkaido. Areal them. The efficient new method soon squid. differences in fishing seasons lead to began to threaten the livelihood of the Today the medium-scale jigging interregional friction and competition squid jigging boats and opposition boats concentrate on the offshore Sea of as many boats from various parts of mounted. Jigging interests argued that Japan fishing grounds during spring and Japan follow the migrating squid. they have a prior claim to and are summer and late in the season shift to However, this practice is threatened by economically dependent upon the the Pacific to fish for O. bartrami. the difficulty of obtaining fuel supplies, fishery. Furthermore, they maintain Some of the large-scale boats fish for T. especially for boats away from their that drift gillnetting of squid is: 1) Too pacificus in the northern part of the Sea home port. efficient; 2) threatens recruitment by of Japan, primarily within the Soviet Initially, the squid jigging fishery catching spawning squid which are low zone, but their main fishing grounds are was primarily a nearshore fishery by in value anyway; 3) causes waste as in the Pacific. small boats, but with the automation of much dead squid is lost from the net; Winter is an idle period for most jig­ jigging and increases in the value of and 4) is often used as a cover for il­ ging boats in Japan's waters. To extend squid, boats were enlarged and fishing legal salmon fishing. the amount of time fishing during a grounds extended. Until the late 1960's On 1 January 1979 the Fisheries year, over half the large-scale and many most of the larger boats fished in the Agency, a part of the Ministry of Ag­ of the 90-100 ton boats fish squid in the Pacific southeast of Hokkaido. How­ riculture, Forestry, and Fisheries, pro­ Southern Hemisphere between De­ ever, landings decl ined precipitously hibited drift gillnet fishing for squid cember and May. During the 1979-80 after 1968 and the focus of the offshore north of lat. 20 0 N and west of long. season about 269 of these boats were to fishery shifted to the autumn subpopu­ 170 o E, and some squid jigging interests fish near New Zealand and Australia: lation ofT. pacificus in the central part are now appealing for a total ban on the 113 are licensed to fish in New Zealand of the Sea of Japan. In 1975 a jigging fishery. However, over half the viola- waters, and the remainder were to be

July-August 1980 3 Fishing, sOl1ing, and drying squids. Photos courtesy of the Yamaha Fishery Journal.

involved in joint venture test fishing Japan's squid fisheries are charac­ able to jig off northeastern North (Anonymous, 1979b). Other boats terized by intensive fishing effort and America between July and December were to fish off Equador and Mexico. thus by severe competition and margin­ and off Argentina between January and Access to foreign fishing grounds has al economic efficiency in both the June. R eguI'abon traditionally provided Japan's fishing domestic and international arenas. In industry with both landings and a the northwest Pacific, resource deple­ The squid jigging fishery was unreg­ means to reduce pressure on heavily tion, excessive competition, restric­ ulated until 1969 because the resource utilized domestic waters. Con­ tions on operations and winter inactiv­ was abundant, but with declining sequently, it has permitted a disregard ity make a large number of Japan's CPUE, competition among the large for management of the resource. How­ 95-500 ton jigging boats eager to gain number of boats gradually became a ever, by reducing such access, the es­ access to other squid resources. The problem. In 1969 the large-scale, and 4 tablishment of 200-mile zones has en­ round trip from Japan to Australia is 45 years later the medium-scale, boats couraged an emerging awareness days and that from Japan to Newfound­ were licensed by the Ministry of Ag­ among Japanese fishermen and land is 90 days, yet Japanese boats still riculture and Forestry (it became the fisheries administrators of the need for seek access to these grounds. Some op­ Ministry of Agriculture, Forestry, and fisheries resource management. timistic boat-owners dream of being Fisheries in 1978). Thus boats over 30

4 Marille Fisheries Review tons are regulated by the Fisheries to and 30 tons have come under the come an effective instrument of Agency. In 1972, to reduce competi­ regulation of prefectural Sea Area fisheries resource management for most tion and interference between the vari­ Fisheries Adjustment Committees or of free-swimming species. Their main ous classes of boats, waters adjacent to the respective prefectural governors; purpose is to arbitrate disputes concern­ Japan, including most parts of the Sea the jurisdiction of these entities encom­ ing use of the fishing grounds. In other of Japan, were closed to the large-scale passes the coastal waters of the indi­ words, the function of these commit­ boats and jigging by medium-scale vidual prefectures. Thus, in a pattern tees, and, incidentally, that of the boats was prohibited in certain coastal familiar in Japan's fisheries, regula­ Fisheries Agency as well, seems to be waters. tions gradually forced the larger boats "fisheries management" rather than The following year boats fishing in offshore or overseas in order to reserve "fisheries resource management" 2 New Zealand were licensed. Also in the coastal waters for the smaller boats. (Keen ). 1973, as a conservation measure during Unlike the Regional Fisheries Coun­ the spawning season, jigging by boats cils in the United States, Sea Area 'Keen, Elmer A. 1979. Fisheries resource man­ over 30 tons was prohibited in Japan Fisheries Adjustment committees have agement - an assessment of the Fisheries Con­ servation and Management Act of 1976. San during March and April. neither the political power nor the geo­ Diego State Univ., Dep. Geogr., San Diego. Un­ Since 1973 most boats between 5 or graphic extent to enable them to be- publ manuscr., 19 p.

July-A ugust 1980 5 Equitable, unified management of long experience as a "free" (unregu­ About 40 percent of the landings are the T. pacificus stock is difficult to lated) fishery persists in both regulation marketed fresh or frozen, and achieve because, as the squid migrate and practice. Thus, even after the de­ "sashimi," finely-sliced uncooked far along Japan's coasts and through the cline in the resource had become evi­ squid eaten lightly dipped in soy sauce offshore waters of the Sea of Japan and dent, there was little conceptual moti­ flavored with "wasabi" (Japanese the waters of South Korea, North vation to stem the increase in fishing horseradish), and "sushi," uncooked Korea, and the Soviet Union, political effort. squid on bite-sized portions of and geographic division of both domes­ Associations representing the vinegared-rice, are very popular items tic and international jurisdiction medium-scale and large-scale squid which constitute a major part of this strongly discourages if not precludes jigging boats have considerable politi­ demand. Fresh and frozen squid is often unified policy. Moreover, fishing sea­ cal influence, and the sheer number of purchased for home consumption in sons and the nature of the fishery vary small-scale boats makes them a strong various fried, roasted, broiled, un­ from place to place. vested interest. Furthermore, the large cooked, sauteed, and dressed forms. Thus there is little incentive for re­ amount of social and economic invest­ A Japanese meal usually consists of source management on the part of the ment in the squid jigging fisheries com­ numerous different dishes served so individual prefectures because, while pounds this inertia. Thus even if the that each person at the table partakes of its cost would be borne by the indi­ government was resolved to reduce each dish in the amount and order that vidual prefecture alone, its benefits fishing effort, it would be an extremely he or she wishes. Consequently, there would be shared by all prefectures in difficult task. The Fisheries Agency is a demand for a wide variety of items common. Similarly, although Japan thinks it advisable to reduce fishing ef­ which can be marketed in very small makes over 70 percent of the landings fort, but refuses to subsidize it, both quantities and can be served either as of the species, resource management because great cost is involved and be­ sold or with little additional prepara­ incentive is diminished on the national cause such support is no more justi­ tion. Many processed products meet level as well. fiable in the case of the squid fishery this criterion and are frequently sold in Differences in the degree of depen­ than it is in that of other fisheries suffer­ packs as small as 50-100 g (1.8-3.5 dence of the various boats upon the ing from excessive concentrations of ounces). In the past 10 years the fishery and the wide range in their size fishing effort. number ofprocessed squid products has and capabilities further complicate reg­ Severe restrictions establishing catch increased greatly. Imported squid is ulation. Although fishing effort is ex­ quotas, allowable gear, and fishing used to produce many of these and cessive, the lack of alternative fisheries areas have forced reductions in some sources claim that such products resources or other appropriate Japanese fishing effort within the are partially intended to "camouflage" employment, plus the intractable ques­ Soviet zone. The Soviet restrictions the taste of the unfamiliar species. tions of responsibility, cost, and cause hardship to Japan's squid fleet, Several products in addition to those equitability, challenge both the will and but are positive resource management already mentioned include: ika­ the attempt to reduce it. Thus fishing measures. However, such policy is moromi, squid pickled in miso, yeast, effort remains excessive, the resource possible because it is imposed by an and rice or wheat; ika-mirin, squid is in a critical state, and the majority of external entity which bears no respon­ pickled with red pepper and soy sauce; the boats operate at marginal or sub­ sibility to the affected fishermen and yaki-ika, roasted squid; ni-ika, boiled marginal levels. because, although the regulating au­ squid; koji-ika, fermented squid; Ko­ Government fisheries policy has em­ thority owns the resource, it derives rean style shiokara, salt-fermented phasized development and the mainte­ little benefit from the regulated fishery. squid with ground hot-peppers; un­ nance of employment to the neglect of cooked squid with herring or sea urchin resource management, and an exces­ roe; diced, boiled squid with kelp; ika­ Consumption sive number ofboats is one of the major tsukudani, various boiled, soy sauce­ problems of the fishery today. The be­ After 1960, new processing flavored items; smoked squid; lemon lief that it does not matter how much techniques and the development of fro­ flavored squid; ika-kamaboko and squid is caught, because, as it has a zen seafood distribution chains stimu­ numerous other products made from I-year life cycle, it will die anyway, has lated the demand for squid and facili­ squid-based fish-paste and other ingre­ influenced this policy. Thus the avail­ tated both wider product lines and new dients. Minor amounts of total landings ability of low-interest government markets. Since 1973, increasing rela­ are canned, salted, and smoked, and in loans for investment in boats encour­ tive price has resulted in a 15 percent 1977 about 14,000 tons was marketed aged increases in fishing effort. The decrease in urban consumption of as shiokara, salt-fermented squid. licensing system was imposed only squid, but it is still higher than that of These are but a selection of the major after the number of boats had become any other species. In 1977 per capita products available, and there are many excessive, and the ability to transfer consumption of squid was roughly 4.65 variations on, and combinations of, licenses makes it even more difficult to kg (10.23 pounds) (round weight equi­ these items. reduce their number. Furthermore, the valent). Almost 50 percent of total landings

6 Marine Fisheries Review are processed into a wide variety of neither fresh nor does it have the most lowers value, especially when selling dried and flavored forms. Surume preferred taste. Thus most of it is on the fresh and frozen market. Fur­ • (dried-squid) is produced by slitting the purchased as raw material for process­ thermore, color, mantle-thickness, and mantle, removing the organs and dry­ ing and therefore brings a relatively low degree of freshness determine value ing the mantle and tenacles either ar­ price. Additionally, squid caught by and potential use, thus both the type of tifically or naturally. it is widely used trawl is slightly misshapen and below squid and the stage of life when caught for ceremonial purposes such as wed­ standard quality, and it often sells at 20 are important. High temperature dings and shinto festivals and as a raw to 25 percent less than those caught by rapidly spoils squid and rain discolors material for further processing. Lightly jigging. Depending on the species and it, thus weather conditions at the time of roasted, manually torn into thin strips other mentioned factors, the price may harvest affect the yuality and con­ and served with a mayonnaise-soy be further discounted. The tax on fro­ sequently the value of landings. sauce dip, it is hard and chewy like beef zen squid is 15 percent, shipment from Differences between species tradi­ jerky and is often eaten with alcoholic the West Coast costs $0.27 per kg tionally landed in Jdpan and those beverages. ($0.12 per pound) and insurance, cus­ domestic and foreign species which Saki-ika, which was developed in toms clearance, and middlemen add have recently come into prominence about 1960 to utilize the abundance of further costs. have forced changes in processing and squ id then available, is essentially a Two examples may help to explain consumption. Texture, flavor, size, and further processed version of surume. Japan's market. In Newfoundland in structure determine the potential uses of To produce it, squid is boiled to remove I978,lllex squid, much of which was to squid on both the fresh and processed the skin and is then roasted, mechani­ be exported to Japan, sold for $0.176 markets. In the case of processing, it cally torn into thin strips, flavored, and per kg ($0.08 per pound) at the dock took expensive, major adjustments in sold ready-to-eat in plastic bags. and $0.44 per kg ($0.20 per pound) to technique and equipment to adapt saki­ Numerous variations on this product packers. The same squid later brought ika processing plants for the utilization are available and have become very $1.27 per kg ($0.58 per pound) on the ofO. bartrami, and now that the transi­ popular. In addition to being an accom­ wholesale market in Japan. Consider­ tion has been effectively made, a large paniment to alcoholic beverages, these able amounts of squid purchased in segment of the processor's market is products are widely used as general Argentina sold in Japan in the autumn dependent upon O. bartramt for raw • party foods and snack items, and much of J979 at a 29 percent discount for material. of their success lies in the convenience $1.12 per kg ($0.51 per pound). Similarly, horizontal alignment of with which they can be marketed and The quality of the fresh and frozen mantle fiber is essential for such pro­ consumed. product depends on careful handling cessing, but the Illex squid has vertical The Japanese have the highest per from the moment the squid is caught structure. Illex is also unsuitable for capita consumption of seafood in the until it is sold to the final consumer, and this type of processing because it does world and a long tradition as a fish­ the Japanese market is far more de­ not yield the soft, fibrous texture and eating people. Thus their fish handling, manding and rigorous than that of the appearance which is required of the processing, and consumption patterns United States. It took 3 years ofnegoti­ product. Nototodarus sloani gouldi are highly refined and the average ation, expensive mistakes, and mutual from Australia has confronted market­ Japanese is aware of and insists upon effort to establish effective squid han­ ing problems because of its large size, degrees of difference in taste which the dling practices in the export of Cana­ short tenacles, and poor yield when consumer in the United States does not dian Illex to Japan. Much training of processed. Some 0f the Argentine Jl/ex even seem to recognize. Hence, the and dfort by U.S. fishermen and fish landed to date has been inferior because Japanese market has very sensitive handlers will be required in order to it was spawning or had spawned color, flavor, and quality requirements. meet the exacting Japanese standards. Squid consumption increases mark­ Furthermore, the Japanese are However, numerous trading, proces­ edly in December and January in con­ habituated to the flavor of local species. sing, and fish marketing companies, junction with Japan's protracted New Squid is considered most delicious often working in combination, provide Year's celebrations. Demand for fresh and uncooked and is prefen'ed financial, technical, and supervisory surume is high at this time because of its served in this manner. Consequently, assistance to a wide range of squid traditional and ceremonial uses and, fresh T. pacificus and Loligo spp. bring fisheries activities in other countries. along with saki-ika and other items, the choice squid prices. Such efforts to insure a dependable because of the many parties and gather­ In m id- September 1979, fresh, supply of quality squid for Japan can ings which occur during this festive high-quality squid sold on the provide markets, increase local prices, period. Most of Japan's domestic land­ wholesale Tokyo market for $5.00 per and stimulate fisheries development. ings are made between July and kg ($2.27 per pound). However, for Certain sizes of squid are desirable, November and the amounts fluctuate several reasons United States or other and shipments must be of similar-sized widely between and within seasons and foreign suppliers would receive a con­ squid. Mixing of different sizes or among the various species landed. siderably lower price. Imported squid is slight deviations from the desired size Therefore, foreign suppliers must be

July-August 1980 7 aware of the state and season of Japan's processors in order to give them some The United States and other coun­ domestic market. control over supply and thus to preclude tries on the one hand and processors and A distinctive feature of Japan's squid their domination by the trading com­ other groups in Japan on the other have market is its ability to utilize both vari­ panies. Thus the government controls been encouraging the Japanese Gov­ ous kinds of squid and squid ofdifferent both the amount and distribution of ernment to increase import quotas and degrees of quality to produce a wide squid imports, and, to protect the busi­ to otherwise relax restrictions on squid range of products. This enables suc­ ness interests of those who deal in imports. However, Japanese society cessful use of several different sources squid, it does not publicly disclose this traditionally protects established in­ of supply which yield both a variety of information. terests and the party in power derives species and inconsistent quality. The Altogether, 210 companies hold im­ political strength from a system of dis­ highest quality product is sold on the port quotas, sometimes as little as 10 proportionate representation in which retail or specialty market and a wide tons apiece. However, major trading the electorate in rural areas, including range of lower quality squid is pro­ and fishing companies and their the fishing communities, plays an im­ cessed. The very high unit price of one affiliates hold large blocks. As imports portant part. Thus, although fishermen portion of a shipment enables the use of are limited, an import quota has value. form but a small portion of the elector­ residual, low-quality squid for the pro­ Quota holders may realize this value ate, the present government is commit­ duction of low-value items. This helps through either control of that much of ted to protecting them and thus is reluc­ explain why some imported squid sells the market, sale (at about 5 percent of tant to increase the quota enough to at or below cost. However, the quality the sale price in Japan), or other trans­ meet domestic demand. Hence, the im­ product usually brings a price sufficient fer. port quota system supports a Japanese to compensate for the extra handling The Ministry of International Trade style modus vivendi whereby fisher­ costs involved. and Industry (MIT!) administers the men, processors, trading companies, quota system and has the difficult and and government administrators each politically onerous task of establishing participate in a regulated market. The Import Quota System the amount of the quota. It attempts consumer pays for the system and its Squid imports were banned until both to insure that the total supply will administration through inflated squid 1970 because Japan's squid fisheries be sufficiently shy of demand to main­ prices and through taxes. Another fac­ satisfied domestic demand until land­ tain a high value for domestic squid and tor in Japan which contributes to the ings began to decline drastically after simultaneously to recognize the in­ high cost of squid and to the difficulty 1968. In 1971 a squid import quota terests of other participants in the mar­ of changing the situation is the long, system was established to permit lim­ ket. The quota is set twice each year on intricate network of middlemen be- • ited imports. It protects domestic the basis ofestimated landings and may tween producer and consumer. At­ fishermen from foreign competition by be adjusted subsequently as conditions tempts to shorten and simplify distribu­ regulating total squid supply in order to warrant. The Trade Department of the tion channels are meeting with limited maintain a high market price. Fisheries Agency's Marketing Division success, but the impediments outlined Imported squid is classified into two handles that proportion of the quota above apply in this case as well. categories and nine subcategories as designated for processors and distri­ Japan's import quota for squid has follows: "Raw squid," which includes butes it among their four national been increased for fi ve reasons: 1) The 1) live, 2) fresh, 3) frozen, 4) chilled, cooperative associations: One each for T. pacificus stock has not recovered; 5) salted, and 6) brine-soaked; and processors of dried-squid, delicacy 2) access to foreign squid resources has "dried-squid" which includes foods, pre-cooked foods, and general been restricted; 3) Japanese participa­ 7) dried, 8) smoked, and 9) prepared fisheries products. tion in joint venture squid fisheries or preserved squid (canned, boiled, In administering the import quota overseas has increased; 4) the govern­ seasoned, salt-fermented, and prepara­ system, the government weighs protec­ ment favorably considers import quota tions). Items 8 and 9 may be imported tion of the fishermen more heavily than requests from ventures involving freely and import quotas have been es­ the interests of the consumer. For Japanese boats; and 5) both foreign and tablished for items I through 7 example, in fiscal !978, the estimated domestic groups have been strongly (JETRO, 1979). total domestic supply of squid, includ­ pressuring the government to make There are three categories of quotas, ing the landings of Japanese-flag boats such increases. However, the amount one each for processors, trading com­ which fished overseas, was subtracted of the import quota is tied to domestic panies, and fisheries development. from estimated demand for the year and landings, and if landings increase Their relative proportions vary each the impOJ1 quota was set at less than 60 sufficiently in the future, reductions in year and in 1979 were approximately percent of the remainder (JETRO, the quota could result. 70,25, and 5 percent, respectively. Al­ 1979). Thus the planned deficiency in In 1977, Japan's small import quota though initially the quota was only for supply exceeded 40,000 tons, caused for dried squid was not all utilized, and trading companies, the government high domestic prices, and resulted in a therefore the amount was not increased later designated a quota specifically for decrease in squid consumption. the following year. The Fisheries

8 Marine Fisheries Review Agency's Trade Division reportedly Conclusion ing techniques might suggest ways to would increase the quota and proces­ stimulate domestic demand in the - sors would purchase a competitively Japan's international demand for United States. priced product if it were available. squid is high and continues to grow, Thus Japan's squid market offers an Korea, Thailand, and Argentina and and traditional consumption patterns incentive to develop the U.S. squid other countries export various dried suggest that it might rise even further if fishing industry. Furthermore, over squid products to Japan. Although some of the artificial price support half of U.S. fisheries exports go to dried squid produced in Newfoundland mechanisms were removed. However, Japan and 88 percent of these are high­ is exported to expanding markets in the combination of established value items, but expansion of U.S. ex­ Hong Kong and Taiwan, exports to suppliers, squid fisheries development ports and, consequently, of the U.S. Japan have been limited, and in 1979 by several nations which intend to ex­ fishing industry depends upon exploita­ the poor dried-squid market in Japan port squid to Japan, and Japan's in­ tion of the underutilized species. Thus, foiled attempts to increase sales to Ja­ creasing overseas participation in joint attempts to export squid to Japan could pan. However, various companies in venture squid fisheries make competi­ yield valuable experience in marketing Newfoundland are producing or plan­ tion severe. Thus the extent and nature lower-value, underu tilized species on ning to produce for the Japanese mar­ of international competition strongly our largest export market. This could ket, and several people on the U.S. East recommend that development ofaU.S. later facilitate similar efforts with other Coast are considering similar enter­ squid fishing industry should include available fisheries resources. prises. the establishment of a domestic market In 1978 , Japan imported 118,000 to complement exports to Japan. If suc­ Acknowledgments tons of frozen and 4,000 tons of pro­ cessful, this could insure sound de­ I am deeply grateful to many people cessed squid and cuttlefish. (Figures for velopment and future expansion of in all aspects ofJapan's fishing industry the two items are frequently recorded U.S. squid fisheries by providing ac­ for their assistance and explanations: to together, thus individual values cannot cessible markets. James Johnson, U.S. Embassy, Tokyo; readily be determined.) However, I es­ The preceding pages merely outline Susumu Kato, NMFS Tiburon timate that about 80 percent of this Japan's squid fishing industry, but Laboratory; Elmer Keen, San Diego amount is squid. The major exporters of plans to develop U.S. squid fisheries State University; and others for assis­ frozen squid were Korea, Canada, would benefit from detailed study of tance, direction, and encouragement, Spain, Taiwan, and Argentina. United certain of its aspects. Several items and to the Japanese Ministry of Educa­ States squid exports to Japan totaled might include: 1) Analysis of the ad­ tion for funding my research. - 1,909 tons and were almost exclusively vantages, disadvantages, and relative frozen Loligo opalescens (Berry) from costs of each fishing method; 2) inves­ Literature Cited California. The United States ranked tigation of specific markets and market­ Anonymous. 1979a. Kiro ni tatsu ika nagashi­ ami no 'shikaku·. (The drift-gill net fishery for tenth among over 30 suppliers. Inciden­ ing strategies for particular species of squid: Can it continue?) Suisan Keizai, 7830, tally, in 1978, Japan caught 42 percent U.S. squid; and 3) evaluation ofpossi­ p. 3. of the squid caught by foreign fisher­ ble U.S. -Japan cooperative arrange­ 1979b. Osutoraria shiso kyoka. (Permission to test fish in Australia.) Suisan men in the U.S. 200-mile zone, and 85 ments to develop the U.S. industry. Keizai, 7852, p. I. percent or 6,053 tons of Japan's catch Joint enterprises with Japan might JETRO (Japan External Trade Organization). off the U.S. East Coast was squid. offer access to Japan's market and in­ 1979. Frozen squid and cuttlefish. Access to Japan's import market, No.8, 17 p. JETRO, Japan exported minor amounts of squid sure the cooperation of the Japanese 2-5, Toranomon 2-chome, Minato-ku, Tokyo and squid products to the United States, Government; these two points are of 197. Rodgers, H. E. (Editor). 1979. Squid outlook: mostly to supply ethnic markets in paramount importance. Additionally, Tasmania 1979-80. Tasmanian Fish. Dev. Au­ Hawaii and California. study ofJapanese products and process- thority. Hobart, 60 p.

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