February, 2008
Steelhead Committee Report                                                                                          
In the late 1970s (Chair Eric Carlisle was not sure of the year), the provincial and federal governments signed an agreement re steelhead production at DFO hatcheries.  Under this agreement, steelhead smolts would be raised at DFO hatcheries under provincial direction, and DFO would pay for this program.  This steelhead production would be compensation for steelhead intercepted and harvested in commercial salmon fisheries.  At this time and for many years afterward, the commercial fishermen were able to retain steelhead caught in their nets. 
However, for several years commercial fishermen have been required to release any steelhead they catch and have also been required to carry live boxes to assist in the release of steelhead.  Therefore, a case could be made for DFO not paying for hatchery steelhead production—harvest is not allowed.  But Carlisle stressed that there is a significant mortality when commercial fishermen release steelhead from gillnets or from purse seines, so a case can be made for the agreement signed about 30 years ago to continue. 
At the October SEHAB meeting (which Carlisle was unable to attend), members decided to investigate steelhead production costs at DFO facilities.  When he was informed of this project by Jack Minard, Carlisle contacted Reid Schrul, Manager of Capilano Hatchery.  Schrul told Carlisle that DFO had assembled all the hatchery steelhead production numbers several years ago.   DFO staff in Ottawa had been making noises about cutting costs by ceasing production of steelhead, but DFO personnel on the west coast had said that they were in the business of getting fish back to the rivers and that the steelhead production should continue.  On Carlisle’s behalf, Schrul asked his superiors if Carlisle could be given the steelhead production numbers document, but they did not respond to this request.  Therefore, Carlisle had to do it the hard way-contact the various hatchery managers and  ask for the information.
Capilano Hatchery:  Manager Reid Schrul said the target is 20,000 steelhead smolts a year and the cost is $25,000, or about $1.25 a smolt.  With the 2003 brood year, Capilano Hatchery changed from a two year program to a one year program. 
Seymour Hatchery (a CEDP facility):  Manager Brian Smith (a former SEHAB member) reported that a one-year program for the average 30,000 steelhead produced a year costs $31,453.34.  With in-kind contributions (volunteer time, donations of DFO truck time, etc.) added, however, the cost would be $61,053.34.  A two year program (which Seymour Hatchery recently discontinued) used to cost $47,348.05 or, with in-kind contributions, $78,948.06. 
Smith had worked out his costs for the DFO steelhead cost report to the penny.  The DFO bean counters look upon in-kind work as a cost, not a benefit, hence the higher cost figures if in-kind contributions are included.
Chehalis Hatchery:  Manager Larry Kahl said his targets are 40,000 WSH smolts, 25,000 SSH smolts and 25,000 searun cutthroat trout smolts, and the total cost at full production would be about $35,000.
Inch Creek Hatchery:  Manager Stu Barnetson reported that his facility produces 20,000 WSH smolts for release into Stave River and the cost is $20,000, or $1.00 a smolt.
Chilliwack Hatchery:  Manager Bob Stanton said his steelhead program is the most expensive program at the hatchery on a per-smolt basis and the steelhead program accounts for 25% of the total hatchery biomass produced.  The steelhead are raised in river water for the first 6 months, then in 11 degrees Celsius well water for three months, then in a mixture of river and well water for the final three months prior to release.  The largest production well costs $4,000 a month in electricity to operate.  Fuel for a backup diesel generator (used in case of power failure) adds to the cost.  Fish food for steelhead accounts for about 25% of the hatchery’s total fish food budget or 10% of the annual operating budget.  Once overhead cost, staff salaries, etc. are included, the cost per smolt is one dollar plus.  Over the last 7 years, Chilliwack Hatchery has released in excess of 110,000 steelhead smolts except for 2005 (109,123) and 2006 (95,259).  The highest release occurred in 2003—134,701.  Stanton pointed out that the variability in steelhead releases results from the different numbers of wild adult steelhead captured for use as brood stock each year, adult steelhead holding survival, and incubation and rearing survivals. 
Jack Minard said he has available similar information from Vancouver Island Hatcheries and, if all the steelhead production costs are added together, the total is about $500,000.  Ev Person mentioned the steelhead costs at Kitimat Hatchery.  Several SEHAB members commented on the value of the steelhead programs at the various hatcheries and expressed the hope that the federal and provincial governments would continue to live up to the agreement signed in the early days of the Salmonid Enhancement Program.