The Annual Economic Survey of Federal Gulf Shrimp Permit Holders: Report on the Design, Implementation, and Descriptive Results for 2006

This technical memorandum documents the design, implementation, data preparation, and descriptive results for the 2006 Annual Economic Survey of Federal Gulf Shrimp Permit Holders. The data collection was designed by the NOAA Fisheries Southeast Fisheries Science Center Social Science Research Group to track the financial and economic status and performance by vessels holding a federal moratorium permit for harvesting shrimp in the Gulf of Mexico. A two page, self-administered mail survey collected total annual costs broken out into seven categories and auxiliary economic data. In May 2007, 580 vessels were randomly selected, stratified by state, from a preliminary population of 1,709 vessels with federal permits to shrimp in offshore waters of the Gulf of Mexico. The survey was implemented during the rest of 2007. After many reminder and verification phone calls, 509 surveys were deemed complete, for an ineligibility-adjusted response rate of 90.7%. The linking of each individual vessel’s cost data to its revenue data from a different data collection was imperfect, and hence the final number of observations used in the analyses is 484. Based on various measures and tests of validity throughout the technical memorandum, the quality of the data is high. The results are presented in a standardized table format, linking vessel characteristics and operations to simple balance sheet, cash flow, and income statements. In the text, results are discussed for the total fleet, the Gulf shrimp fleet, the active Gulf shrimp fleet, and the inactive Gulf shrimp fleet. Additional results for shrimp vessels grouped by state, by vessel characteristics, by landings volume, and by ownership structure are available in the appendices. The general conclusion of this report is that the financial and economic situation is bleak for the average vessels in most of the categories that were evaluated. With few exceptions, cash flow for the average vessel is positive while the net revenue from operations and the “profit” are negative. With negative net revenue from operations, the economic return for average shrimp vessels is less than zero. Only with the help of government payments does the average owner just about break even. In the short-term, this will discourage any new investments in the industry. The financial situation in 2006, especially if it endures over multiple years, also is economically unsustainable for the average established business. Vessels in the active and inactive Gulf shrimp fleet are, on average, 69 feet long, weigh 105 gross tons, are powered by 505 hp motor(s), and are 23 years old. Three-quarters of the vessels have steel hulls and 59% use a freezer for refrigeration. The average market value of these vessels was $175,149 in 2006, about a hundred-thousand dollars less than the average original purchase price. The outstanding loans averaged $91,955, leading to an average owner equity of $83,194. Based on the sample, 85% of the federally permitted Gulf shrimp fleet was actively shrimping in 2006. Of these 386 active Gulf shrimp vessels, just under half (46%) were owner-operated. On average, these vessels burned 52,931 gallons of fuel, landed 101,268 pounds of shrimp, and received $2.47 per pound of shrimp. Non-shrimp landings added less than 1% to cash flow, indicating that the federal Gulf shrimp fishery is very specialized. The average total cash outflow was $243,415 of which $108,775 was due to fuel expenses alone. The expenses for hired crew and captains were on average $54,866 which indicates the importance of the industry as a source of wage income. The resulting average net cash flow is $16,225 but has a large standard deviation. For the population of active Gulf shrimp vessels we can state with 95% certainty that the average net cash flow was between $9,500 and $23,000 in 2006. The median net cash flow was $11,843. Based on the income statement for active Gulf shrimp vessels, the average fixed costs accounted for just under a quarter of operating expenses (23.1%), labor costs for just over a quarter (25.3%), and the non-labor variable costs for just over half (51.6%). The fuel costs alone accounted for 42.9% of total operating expenses in 2006. It should be noted that the labor cost category in the income statement includes both the actual cash payments to hired labor and an estimate of the opportunity cost of owner-operators’ time spent as captain. The average labor contribution (as captain) of an owner-operator is estimated at about $19,800. The average net revenue from operations is negative $7,429, and is statistically different and less than zero in spite of a large standard deviation. The economic return to Gulf shrimping is negative 4%. Including non-operating activities, foremost an average government payment of $13,662, leads to an average loss before taxes of $907 for the vessel owners. The confidence interval of this value straddles zero, so we cannot reject, with 95% certainty, that the population average is zero. The average inactive Gulf shrimp vessel is generally of a smaller scale than the average active vessel. Inactive vessels are physically smaller, are valued much lower, and are less dependent on loans. Fixed costs account for nearly three quarters of the total operating expenses of $11,926, and only 6% of these vessels have hull insurance. With an average net cash flow of negative $7,537, the inactive Gulf shrimp fleet has a major liquidity problem. On average, net revenue from operations is negative $11,396, which amounts to a negative 15% economic return, and owners lose $9,381 on their vessels before taxes. To sustain such losses and especially to survive the negative cash flow, many of the owners must be subsidizing their shrimp vessels with the help of other income or wealth sources or are drawing down their equity. Active Gulf shrimp vessels in all states but Texas exhibited negative returns. The Alabama and Mississippi fleets have the highest assets (vessel values), on average, yet they generate zero cash flow and negative $32,224 net revenue from operations. Due to their high (loan) leverage ratio the negative 11% economic return is amplified into a negative 21% return on equity. In contrast, for Texas vessels, which actually have the highest leverage ratio among the states, a 1% economic return is amplified into a 13% return on equity. From a financial perspective, the average Florida and Louisiana vessels conform roughly to the overall average of the active Gulf shrimp fleet. It should be noted that these results are averages and hence hide the variation that clearly exists within all fleets and all categories. Although the financial situation for the average vessel is bleak, some vessels are profitable. (PDF contains 101 pages)

Socio-economic dimension of fish farming in Assam

Information on socio-economic framework of the fish farmer community forms a benchmark for policy formulation to develop this economically backward sector. Very few studies have been conducted on the socio-economic aspect of fish farming. Two districts of Assam, Darrang and Nagaon, were selected for this study where 120 respondents from each district were selected randomly. The characteristics representing the personnel and socio-economic attributes of the fish farmers are presented in this paper. The socio-economic status of fish farmers has to be improved by bringing the modern concepts of fish farming to the doorstep of farmers.

Limited access alternatives for the Pacific groundfish fishery

Despite its wide acceptance in other fisheries, limited access remains a controversial topic among Pacific coast groundfish fishermen and fishery managers. It is controversial because it immediately opens a wide array of public policy issues. How should the public conserve fish stocks, and who should benefit from harvesting those fish? What are the costs and benefits to the public, the taxpayer, the fishing industry, and the coastal communities supporting the groundfish industry? Should the government push the industry to be economically efficient in harvesting; or should it discourage technical efficiency to conserve fish stocks? Should management preserve the economic status quo by protecting existing harvest shares? These are the broad issues occupying the discussions of policy makers and academic writers concerned with resource management. The goal of this introductory section is to define limited access, to dispel some basic misunderstandings about limited access, to clarify the optional forms oflimited access, and to review the various resource management objectives addressed. This should set the stage for the following more lengthy discussions. By reducing the scope of needless misunderstandings, it should also help to make future discussions of limited access more productive. (PDF file contains 52 pages.)

Widow rockfish: Proceedings of a workshop, Tiburon, California, December 11-12, 1980

This workshop was organized because of the increase between 1978 and 1980 in coastwide landings of widow rockfish, from less than 1,000 mt to more than 20,000 mt, and because of scientists' concern with the lack of knowledge both of the fishery and biology of the species. Most scientists active in research on Pacific groundfish, as well as some members of the fishing industry and fishery managers, attended the workshop. These proceedings contain the report of the workshop discussion panel, status reports on California, Oregon, and Washington fisheries through 1980, and a collection of seven papers presented at the workshop. The status reports provide an historical perspective of the development of an important fishery. The papers present a fairly complete survey of biological knowledge of widow rockfish, economic status of the fishery, and fishery-independent methods for estimation of abundance. The papers also contain some information developed after the workshop. Since the workshop, the fishery has matured. Largest landings were made in 1981, when more than 28,000 mt were landed. Maximum sustainable yield (MSY) is estimated to be slightly less than 10,000 mt, and the stock appeared to be at about the MSY level in 1985. The Pacific Fishery Management Council and National Marine Fisheries Service have implemented regulations that have maintained landings since 1983 at approximately the maximum sustainable yield level. Fishery-dependent stock assessments are being made on an annual basis for the Pacific Fishery Management Council. While these assessments are considered to be the best possible with available data, scientists responsible for the assessment have chosen to delay their publication in the formal scientific literature until more data are obtained. However, the stock assessment reports are available from the Pacific Fishery Management Council. In addition to the papers in this collection, three papers have been published on widow rockfish since 1980. BoehIert, Barss, and Lamberson (1982) estimate fecundity of the species off Oregon; Gunderson (1984) describes the fishery and management actions; and Laroche and Richardson (1981) describe the morphology and distribution of juvenile widow rockfish off Oregon. During the past decade, the fishery for widow rockfish has developed from a minor fishery to one of the more important on the Pacific Coast. Our knowledge of the biology and dynamics of the species has progressed from minimal to relatively extensive for a groundfish species. It is our intention in preparing this collection of papers to make this knowledge readily available to the scientific community. (PDF file contains 63 pages.)

Assessing the sustainability of brackish water aquaculture systems in the Philippines. Working Paper 4: Aquaculture and poverty - a case study of five coastal communities in the Philippines

After reviewing the rather thin literature on the subject, we investigate the relationship between aquaculture and poverty based on a case study of five coastal communities in the Philippines. The analysis relies on a data set collated through a questionnaire survey of 148 households randomly selected in these five communities. The methodological approach combines the qualitative analysis of how this relationship is perceived by the surveyed households and a quantitative analysis of the levels and determinants of poverty and inequality in these communities. There is overwhelming evidence that aquaculture benefits the poor in important ways and that it is perceived very positively by the poor and non-poor alike. In particular, the poor derive a relatively larger share of their income from aquaculture than the rich, and a lowering of the poverty line only reinforces this result. Further, a Gini decomposition exercise shows unambiguously that aquaculture represents an inequality-reducing source of income. We believe that the pro-poor character of brackish water aquaculture in the study areas is explained by the fact that the sector provides employment to a large number of unskilled workers in communities characterized by large surpluses of labour. Our results also suggest that the analysis of the relationship between aquaculture and poverty should not focus exclusively on the socio-economic status of the farm operator/owner, as has often been the case in the past. [PDF contains 51 pages]

Characterization of rural livelihood of Lake Chad basin fishermen

The study examined the characterization of rural livelihood of the fishermen in the Nigeria portion of Lake Chad Basin are as part of European Commission (EC) founded project entitled "Sustainable development of continental fisheries; a regional study of policy options and policy formation mechanisms for the Lake Chad Basin" Wealth ranking exercise which was not based on real income but on production capacity of the fishermen was carried out in twenty (20) villages survey on the western part of the region using Rapid Rural Appraisal Technique with semi- structured interviews. The different activities carried out by the villagers for living were identified according to their socio-economic status. This was followed by an assessment of the socio-economic characterization within each wealth group. Series of comparative analysis of the ethnic composition, accessibility of fishing gear ownership by the population were done. The results show that the 3 wealth groups in the region include the rich (Group 1) the middle class (Group 2) and the poor (Group 3). It was identified that fishing is just one component of the socio-economic production system along side farming, livestock rearing and trading which are closely integrated. The diversified livelihood system being practiced in the Chad Basin region are not only less vulnerable but also more sustainable

An Overview of Guam's Inshore Fisheries

Guam's nearshore reef fishery is a multi-gear, multispecies fishery that has undergone major changes through the years. Methods have evolved and become more modern. This, along with the changing economic status of Guam, has severely stressed the fishery. Top targeted species are being overexploited and "growth overharvesting" is occurring; the more serious form of "recruitment overharvesting," is happening to some of the key species. Major management concerns are discussed with respect to overfishing and habitat destruction. Management recommendations for this fishery include gear restrictions, size restrictions, and the establishment of marine conservation areas.

Institutional support for freshwater aquaculture development: a study of Mirzapur district of Uttar Pradesh, India

The aquaculture sector has been playing an increasingly dominating role in Indian fisheries scenario since the last two and half decades. Introduction of induced breeding and composite fish culture (CFC) technologies has changed the freshwater aquaculture sector in India. Institutional support has been one of the most crucial aspects in all fisheries development programs, more so in the Indian context where most of fish farmers are socially and economically weak. The innovation of CFC technology in freshwater aquaculture sector in the early seventies generated the need for adequate and effective institutional support to farmers. Under the freshwater aquaculture development program, the Fish Farmers Development Agencies (FFDA) have been established at district level to provide technical and extension support to the farming community besides arranging ponds on lease and supply of seeds. In addition to above, FFDAs are also expected to arrange loans from banks and provide subsidies. Thus, FFDAs are meant to provide institutional support to fish farming community in the country. In view of the above, an effort was made to study the adequacy and effectiveness of institutional support provided by the FFDA, Mirzapur for the development of aquaculture in Mirzapur district of Uttar Pradesh {U.P.), India. Study reveals that leasing of ponds for fish farming has been favourable to economically weaker sections of societies while bank loan accessibility is more for those having relatively higher economic status. Though the FFDA, Mirzapur performed well in providing training to potential fish farmers and creating awareness about fish farming, its effectiveness could not be equally seen in seed supply.

Marketing of small indigenous species of fish (SIS) in three selected fish markets of Mymensingh

A socio-economic survey was conducted round the year in three fish markets at Mymensingh, Bangladesh. The selected markets were categorized as rural market (Sutiakhali market), a peri-urban market (Kamal Ranjeet market, BAU) and an urban market (Notun Bazar market, Mymensingh town). It was learnt from the survey that the availability of Small Indigenous Fish Species (SIS) declined to a great extent over the last few years and at presently many of such fish species are either threatened or at the edge of extinction. The supply of SIS was highest in KR market (37% of total) and more or less similar in Notun Bazar and Sutiakhali fish market (25 and 27% respectively). The total supply of SIS fluctuated from 25% to 35% throughout the year in these markets. About 48 SIS were found in the sampled markets over the survey period. The highest number of species (45) was found in KR market followed by Notun Bazar (42) and Sutiakhali (37) fish markets. During the survey, three critically endangered species namely, schilbid catfish, garua catfish and rita were found in these markets. Beside these, other 11 and 10 species were listed to be endangered and vulnerable respectively. The biodiversity of 21 SIS found in three markets were no threat at all. Three species (guntea loach, Indian glass barb and flying barb) were 'data deficient' as reported by the IUCN Red Book (IUCN-Bangladesh 2000). From the supply point of view small prawn, spotted snakehead, stinging catfish, pool barb, striped dwarf catfish, Gangetic mystus, walking catfish and tank goby were the prominent fish. The least available species found in this survey were lesser spiny eel, barred spiny eel, Gangetic ailia, freshwater garfish, zig-zag eel, flying barb, Ganges river sprat, freshwater river shad and dwarf gourami. The weight of SIS available in Notun bazar was highest and nearly double than other two markets. There was no significant difference recorded in the supply of SIS in Sutiakhali and KR markets. The average monthly SIS supply was 185, 192 and 467 kg in KR, Sutiakhali and Notun Bazar, respectively; therefore, the cumulative average supply was 844 kg per month in three markets. The price of SIS ranged widely from taka 50-450/kg depending on species, location of market, time of purchase and the condition of fish. In general small prawn, ticto barb, dwarf gourami, Gangetic leaffish, and Annandale loach were sold at a lower price (ranged taka 50-100/kg) and these species could be considered at the bottom of the market-price list. Other SIS like walking catfish, climbing parch, butter catfish, cotio and schilbid catfish valued as highest price (ranged taka 150-450/kg). There was no specific marketing chain for SIS in Mymensingh region. The components of marketing channels and their expansion varied with seasons and locations. The general pattern, however, was as this - after buying fish from fish farmer/fishermen, middlemen (locally known as Foria) used to buy fish to wholesale market and sell to the wholesalers. The retailers used to buy fish from wholesaler through auction to the highest bidders. The retailers then send the fish to particular market where the fish reached the consumers. The livelihood strategy of SIS retailers in three fish markets showed that socio-economic constraints such as low income, poor educational background, low economic status and lack of capital are the main constrains [sic]. Most of the retailers proposed that government should control the fish price throughout the year, so that the producers can get reasonable and stable price. Construction of cold storage and preservation facilities at market sites, improvement of road and communication, improvement of physical market facilities and reduction of market chain is essential. Credit facilities, improvement of their standard of living, health and sanitary condition, housing condition, children education and access to drinking water facilities were identified as additional aspects to improve socio-economic condition of SIS retailers.

Crabbing into an uncertain future: the blue swimming crab fisher in coastal town of Eastern Philippines

This research project sought to find out the socio-economic status of the small-scale fishers of the blue swimming crab (Portunuspelagicus) in Samar, considering the diminishing volume of catch of the species in the recent years. Using a blend of quantitative and qualitative methods, the study employed an interview schedule, focus group discussion (FGD) and observation in collecting data not only from the fishers but also from other sectors directly involved in the blue swimming crab industry.

South and South-East Asian coastal fisheries: their status and directions for improved management: conference synopsis and recommendations

As a step to address the problems of coastal fisheries in Asia, the WorldFish Center joined forces with fisheries agencies from eight developing Asian countries (Bangladesh, India, Indonesia, Malaysia, The Philippines, Sri Lanka, Thailand and Vietnam) and the Asian Development Bank, to implement a project entitled “Sustainable Management of Coastal Fish Stocks in Asia” (also known as the “TrawlBase” project). The project was implemented between 1998 and 2001. The main achievements of this partnership were: (a) Development of a database called “Fisheries Resource Information System and Tools” (FiRST), which contains trawl research survey data and socioeconomic information for selected fisheries, and facilitates its analysis; (b) Evaluation of the extent of resource decline and over-fishing, both biological and economic, in the region; (c) Identification of the measures needed to manage coastal fisheries in the participating countries, resulting in draft strategies and action plans; and (d) Strengthening of national capacity in coastal fisheries assessment, planning and management.

Recommendation domains for pond aquaculture: country case study: development and status of freshwater aquaculture in Malawi

This monograph is a result of a 3-year project to produce a decision-support toolkit with supporting databases and case studies to help researchers, planners and extension agents working on freshwater pond aquaculture. The purpose of the work was to provide tools and information to help practitioners identify places and conditions where pond aquaculture can benefit the poor, both as producers and as consumers of fish. This monograph is the case study for Malawi. Written in three parts, it describes the historical background, practices, stakeholder profiles, production levels, economic and institutional environment, policy issues, and prospects for aquaculture in the country. First, it documents the history and current status of the aquaculture in the country. Second, it assesses the technologies and approaches that either succeeded or failed to foster aquaculture development and discusses why. Third, it identifies the key reasons for aquaculture adoption.