Tropical river fisheries valuation: background papers to a global synthesis

This report is a compilation of five regional reviews that document the global status of tropical rivers and inland fisheries in three continents: Latin America, Africa and Asia. It explores the role of ‘valuation’ methods and their contribution to policy-making and river fishery management. From the compilation, the best estimate of the global value of inland fisheries for those three continents is US$ 5.58 billion (gross market value), which is equivalent to 19 percent of the current value of annual fish exports from developing countries (US$ 29 billion) for 2004. The compilation shows that there is a general shortage of information on inland fisheries, especially derived from conventional economic valuation methods, though information from economic impact assessment methods and socio-economic and livelihood analysis methods is more widely available. The status of knowledge about the impact of changes in river management on the value of tropical river fisheries is weak and patchy. Although the impacts of large dams on the hydrology, ecology and livelihood support attributes of tropical rivers are well-recognized, there have been only few valuation studies of these issues. The document highlights the need for further valuation studies of tropical river and inland fisheries in developing countries. It underlines how vital it is for policy-makers and other stakeholders to understand the importance of these natural resources in order to make appropriate decisions concerning their role in development policy and illustrates why capacity building in valuation should become a major priority for agencies concerned with fisheries management and policy-making.

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)

How much does the fishery at Apo Island benefit from spillover of adult fish from the adjacent marine reserve?

The contribution of the no-take marine reserve at Apo Island, Philippines, to local fishery yield through “spillover” (net export of adult fish) was estimated. Spatial patterns of fishing effort, yield, and catch rates around Apo Island were documented daily in 2003−2004. Catch rates were higher near the reserve (by a factor of 1.1 to 2.0), but fishing effort was often lowest there. Higher catch rates near the reserve were more likely due to spillover than to low fishing intensity. Lower fishing effort near the reserve may have been due to 1) weather patterns, 2) traditional importance of other fishing grounds, 3) high variability in catch rates, 4) lower market value of target species, and 5) social pressures. The yield taken near the reserve was only 10% of the total yield, but the actual spillover contribution was probably much less than this. This study is one of the few to estimate the spillover contribution to overall yield and to document the responses of fishermen to spil

Gear modifications for fishing octopus, Octopus vulgaris, on live-bottom and adjacent flat bottom habitats in coastal waters off North Carolina

The Common Octopus, Octopus vulgaris, is an r-selected mollusk found off the coast of North Carolina that interests commercial fishermen because of its market value and the cost-effectiveness of unbaited pots that can catch it. This study sought to: 1) determine those gear and environmental factors that influenced catch rates of octopi, and 2) evaluate the feasibility of small-scale commercial operations for this species. Pots were fished from August 2010 through September 2011 set in strings over hard and sandy bottom in waters from 18 to 30 m deep in Onslow Bay, N.C. Three pot types were fished in each string; octopus pots with- and without lids, and conch pots. Proportional catch was modeled as a function of gear design and environmental factors (location, soak time, bottom type, and sea surface water temperature) using binomially distributed generalized linear models (GLM’s); parsimony of each GLM was assessed with Akaike Information Criteria (AIC). A total of 229 octopi were caught throughout the study. Pots with lids, pots without lids, and conch pots caught an average of 0.15, 0.17, and 0.11 octopi, respectively, with high variability in catch rates for each pot type. The GLM that best fit the data described proportional catch as a function of sea surface temperature, soak time, and station; greatest proportional catches occurred over short soak times, warmest temperatures, and less well known reef areas. Due to operating expenses (fuel, crew time, and maintenance), low catch rates of octopi, and high gear loss, a directed fishery for this species is not economically feasible at the catch rates found in this study. The model fitting to determine factors most influential on catch rates should help fishermen determine seasons and gear soak times that are likely to maximize catch rates. Potting for octopi may be commercially practical as a supplemental activity when targeting demersal fish species that are found in similar habitats and depth ranges in coastal waters off North Carolina.

Ecological and economic consequences of hypoxia: Topic 2 Report for the Integrated Assessment on Hypoxia in the Gulf of Mexico

In this report we have attempted to evaluate the ecological and economic consequences of hypoxia in the northern Gulf of Mexico. Although our initial approach was to rely on published accounts, we quickly realized that the body of published literature deahng with hypoxia was limited, and we would have to conduct our own exploratory analysis of existing Gulf data, or rely on published accounts from other systems to infer possible or potential effects of hypoxia. For the economic analysis, we developed a conceptual model of how hypoxia-related impacts could affect fisheries. Our model included both supply and demand components. The supply model had two components: (1) a physical production function for fish or shrimp, and (2) the cost of fishing. If hypoxia causes the cost of a unit of fishing effort to change, then this will result in a shift in supply. The demand model considered how hypoxia might affect the quality of landed fish or shrimp. In particular, the market value per pound is lower for small shrimp than for large shrimp. Given the limitations of the ecological assessment, the shallow continental shelf area affected by hypoxia does show signs of hypoxia-related stress. While current ecological conditions are a response to a variety of stressors, the effects of hypoxia are most obvious in the benthos that experience mortality, elimination of larger long-lived species, and a shifting of productivity to nonhypoxic periods (energy pulsing). What is not known is whether hypoxia leads to higher productivity during productive periods, or simply to a reduction of productivity during oxygen-stressed periods. The economic assessment based on fisheries data, however, failed to detect effects attributable to hypoxia. Overall, fisheries landings statistics for at least the last few decades have been relatively constant. The failure to identify clear hypoxic effects in the fisheries statistics does not necessarily mean that they are absent. There are several possibilities: (1) hypoxic effects are small relative to the overall variability in the data sets evaluated; (2) the data and the power of the analyses are not adequate; and (3) currently there are no hypoxic effects on fisheries. Lack of identified hypoxic effects in available fisheries data does not imply that effects would not occur should conditions worsen. Experience with other hypoxic zones around the globe shows that both ecological and fisheries effects become progressively more severe as hypoxia increases. Several large systems around the globe have suffered serious ecological and economic consequences from seasonal summertime hypoxia; most notable are the Kattegat and Black Sea. The consequences range from localized loss of catch and recruitment failure to complete system-wide loss of fishery species. If experiences in other systems are applicable to the Gulf of Mexico, then in the face of worsening hypoxic conditions, at some point fisheries and other species will decline, perhaps precipitously.

Impact of hatchery releases on the recreational fishery for Pacific threadfin (Polydactylus sexfilis) in Hawaii

The Pacific threadfin (Polydactylus sexfilis) is considered one of the premier Hawaiian food fishes but even with catch limits, seasonal closures, and size limits, catches have declined dramatically since the 1960s. It was identified as the top candidate species for stock enhancement in Hawaii, based on the decline in stocks, high market value, and importance of the fishery. In the stock enhancement program for Pacific threadfin, over 430,000 fingerlings of various sizes were implanted with coded wire tags and released in nursery habitats along the windward coast of Oahu between 1993 and 1998. Because few Pacific threadfin were present in creel surveys conducted between 1994 and 1998, Oahu fishermen were offered a $10 reward for each threadfin that was caught (for both hatchery-reared and wild fish). A total of 1882 Pacific threadfin were recovered from the reward program between March 1998 and May 1999, including 163 hatchery-reared fish, an overall contribution of 8.7% to the fishery. Hatchery-reared fish accounted for as high as 71% of returns in the release areas. Hatchery-reared fish were recovered on average 11.5 km (SD=9.8 km) from the release site, although some had moved as far away as 42 km. Average age for recovered hatchery-reared fish was 495 days; the oldest was 1021 days. Cultured Pacific threadfin juveniles survived and recruited successfully to the recreational fishery, accounting for 10% of fishermen’s catches on the windward side of Oahu. Recruitment to the fishery was highest for the 1997 release year; few juveniles from earlier releases were observed. Presence of a few large, fully developed females in the recreational fishery suggested that hatchery-reared fish can survive, grow, and reproductively contribute to the population. Implementation of an enhancement program that is focused on juveniles and perhaps large females, as part of an integrated fishery management strategy, could speed the recovery of this fish population.

On acid sulfate soils of the coastal aquaculture ponds of Bangladesh

With the stimulus of the very high international market value of penaeid shrimp, new pond areas for shrimp farming are rapidly being added in Bangladesh. Unfortunately, this expansion is occurring with the loss of some natural mangrove forests and with soils and sediments that are far from ideal for aquaculture. In this study, two representative shrimp farming areas were surveyed and pH, in profile depth, was recorded. It was found that the shrimp farming areas of the Chakaria Sundarban are more acidic than those of the Khulna-Satkhira region due to the acid sulfate soils.

Report of Catch Assessment Survey of Lake Albert – Albert Nile conducted in July 2012

A Catch Assessment Surveys (CAS) with the overall objective of generating information on the fish production and commercial value of the fisheries of Lake Albert and Albert Nile system was implemented by the National Fisheries Resources Research Institute (NAFIRRI) in collaboration with the Department of Fisheries Resources (DFR), Local Government staff (FOs) and BMU members at selected landing sites on Lake Albert (12 landing sites) and Albert Nile (26 landing sites) in July 2012. A total 622 and 313 boat days on Lake Albert and Albert Nile respectively were sampled for a period of 9 days. Results indicate an annual landing of 151,600 and 5,900 tonnes (t) of fish with an estimated beach value of 122.5 and 14 Billion (UShs) from Lake Albert and Albert Nile respectively. Over 80% of the catch from Lake Albert comprised the small pelagic species; Neobola bredoi (Muziri) and Brycinus nurse (Ragoogi) followed by Nile perch (6%). However, due to low market value of the small fishes and the high prices attached to Nile perch for industrial processing and export market, the contribution of the latter to beach value rose to 34% of the total. The contribution of the light fishery based on small pelagic species (B. nurse and N. bredoi) are insignificant on Albert Nile. Even if the small pelagic species may be present in the river system, a light fishery based on these two is yet to be developed. Proportionally, Albert Nile still remain a multispecies fishery with over 20 fish species harvested commercially. Interestingly, the Albert Nile fishery still remains primitive with simple crafts and gears (mainly dugout canoes, traps, and gillnets). This could suggest that the more developed the system becomes the higher the level of transformation in its fisheries leading to simplification, characterized by reduction in multispecies nature and dominance of few species. Illegal gears especially undersized gillnet of mesh size less than 4 inches were the most dominant in the Lake Albert and Albert Nile fisheries. They captured large quantities of immature fish particularly when used to target Nile perch, Bagrus, Nile tilapia, and large Barbus spp. Their impact when used to target the smaller species (Ragoogi, Angara & Ngasia) is yet to be evaluated. A specific study to analyze selectivity and impacts of these nets is a recommended. However, the dominance of 1.5” mesh sizes especially on Albert Nile to target Angara, Ngassia and Barbus, is definitely destructive to their fisheries and should be checked forthwith. In addition, there is an emerging fishing method locally referred to as “Salsio or Luzira” whereby fishers stay on the lake from 3 days up to 2 weeks without returning to the landing site. They carry with them food and salt for processing the catches on the lake, and in the case of Albert Nile on make shift shelters on islands and in the game park. They normally use gillnets of 3-3½ inch mesh size and caught mainly Nile perch & Bagrus (Pethi & Munama). On return they land several tons of fish. Most of these Catches are not captured in the estimates presented in our analyses since we target daily fishing boats. The possible impacts of this fishing method should be studied and appropriate action recommended.

New evidences on the distribution of predatory pelagic sharks in the tuna grounds of the Indian Ocean

Since the commencement of the exploitation of oceanic tuna resources of the Indian Ocean seventeen years ago, the hooked rates for the tuna species have declined in many areas of the Ocean but there are no evidences of such a trend in the case of the sharks. As a result, the percentage composition of sharks in the longline catches and the percentage of the tuna catch damaged by sharks show an increase. Hence there is an urgent need for innovation of the existing longline gear in order to increase the fishing efficiency for hooking the tuna species with a corresponding reduction in its efficiency for hooking sharks. At the beginning of this fishery, hooked sharks were discarded at sea, at a later stage the liver and fins were taken and the carcass discarded and presently the sharks are also brought along with the tuna catch. Though the shark meat has a very low market value it is brought in order to cover up for the declining tuna catches. Thus it has become very necessary to increase the demand for shark meat by developing products or by-products utilizing shark meat and ensuring the successful continuity of the tuna longline fishery. The pattern of distribution of shark species in the time grounds of the Pacific, Indian and Atlantic Oceans and also the predation of hooked tunas by sharks were discussed earlier (Sivasubranianiam 1963, 1964 and 1966). Some contribution to these studies is made in this paper based on new data become available.

Status and prospects of mackerel and tuna fishery in Bangladesh

Present status and future prospects of mackerel and tuna fisheries in Bangladesh were assessed during July 2003-June 2004. The work concentrated on the fishing gears, length of fishes, total landings and market price of the catch and highlighted the prospects of the fishery in Bangladesh. Four commercially important species of mackerels and tuna viz. Scomberomorus guttatus, Scomberomorus commerson, Rastrelliger kanagurta, and Euthynnus affinis were included in the study. About 95% of mackerels and tuna were caught by drift gill nets and the rest were caught by long lines (4%) and marine set-bag-net (1%). Average monthly total landing of mackerels and tunas was about 264 t, of which 147 t landed in Cox's Bazar and 117 t in Chittagong sites. Total catches of the four species in Cox's Bazar and Chittagong sites were found to be 956 and 762 t, respectively. The poor landing was observed during January-February and the peak landing was in November and July. Gross market value of the annual landing of mackerels and tunas (1,718 t) was found to be 1,392 latch taka. Nevertheless, the mackerel and tuna fisheries in Bangladesh are increasingly contributing to the marine fish production of the country and have very good potential for further expansion for both domestic and export market.

Value-added shrimp product is tops: market potential

The article discusses the potential for export of value-added shrimp products from developing countries. European Economic Community is considered to be one of the top consumers, while Thailand and India are two of the top producers.

Market opportunity identification for minor crops for food security through value chain studies

The brochure is to contribute to the overall goal of stimulating the adaptation of pro-poor agri-food systems innovations to improve food security and sustainable natural resource management among rural poor farmers. The paper seeks to identify and exploit opportunities for expanding market access for minor crops and NRM products. The minor crops studied included cow pea, sorghum, groundnut, sweet potato and yam.

Smoked marine fish from Western Region, Ghana: a value chain assessment

The value chain analysis of ths report focused on smoked marine fish- overwhelmingly the most important fish product originating in Western Region, Ghana. Smoked fish from Western Region is mainly destined for the domestic market where demand is very strong. Small quantities of smoked fish are destined for markets in Togo, Benin and Nigeria. The underlying objective of the fisheries value chain analysis is to identify opportunities for growth in the fisheries value chain, with an emphasis on those opportunities that have the potential to generate significant additional livelihoods, particularly at the level of the fishing communities and for low-income groups. The results from the value chain analysis will be used to identify pilot interventions to promote those livelihood outcomes. The main focus for the study is smoked fish (major species/product forms) destined for domestic markets. However, work will also be undertaken on the fresh fish trade and frozen fish to find out more about the significance of these value chains.

Analysis of the retailer value chain segment in five governorates

This study is the third output of the SDC-funded “Improving Employment and Income through Development of Egyptian Aquaculture” (IEIDEAS), a three-year project being jointly implemented by the WorldFish Center and CARE International in Egypt with support from the Ministry of Agriculture and Land Reclamation. The aim of the study is to gather data on the retailer segment of the aquaculture value chain in Egypt, namely on the employment and market conditions of the women fish retailers in the five target governorates. In addition, this study provides a case study in Minya and Fayoum of the current income levels and standards of living of this target group. Finally, the study aims to identify the major problems and obstacles facing these women retailers and suggest some relevant interventions.

Assessment of the carp seeds value chain in southern Bangladesh (final draft)

The Aquaculture for Income and Nutrition (AIN) project implemented by World Fish and funded by USAID, aims at increasing aquaculture production in 20 districts of Southern Bangladesh (Greater Khulna, Greater Barisal, Greater Jessore and Greater Faridpur) to reduce poverty and enhance nutritional status. As part of its initial scoping activities World Fish commissioned this value chain assessment on the market chains of carp fish seed (spawn, fry and fingerlings) in the southern region of Bangladesh. The purpose of this study is to obtain a clearer understanding of the volumes of fish produced and consumed in Southern Bangladesh and their origin (by system and location), their destination (by type of market, type of consumer and location), and to gain a clearer understanding of potential market based solutions to farmer’s problems, which the project could implement.