The fisheries of Zanzibar: potential for new investments

Zanzibar, one of the poorest areas of sub-Saharan Africa, has a good potential for foreign investment in offshore (EEZ) marine capture fisheries, in aquaculture and in fi sheries infrastructure. Zanzibar’s fisheries resources could be better managed in an effort to alleviate the poverty of its rural population and to provide food security. At present, Zanzibar’s fisheries are artisanal and its total annual production of fish of just over 20000 t, caught in inshore waters, is consumed locally. The government of Zanzibar has liberalized its policies to make Zanzibar a good environment for foreign investment.

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)

Description of economic data collected with a random sample of commercial reef fish boats in the Florida Keys

This study summarizes the results of a survey designed to provide economic information about the financial status of commercial reef fish boats with homeports in the Florida Keys. A survey questionnaire was administered in the summer and fall of 1994 by interviewers in face-to-face meetings with owners or operators of randomly selected boats. Fishermen were asked for background information about themselves and their boats, their capital investments in boats and equipment, and about their average catches, revenues, and costs per trip for their two most important kinds of fishing trips during 1993 for species in the reef fish fishery. Respondents were characterized with regard to their dependence on the reef fish fishery as a source of household income. Boats were described in terms of their physical and financial characteristics. Different kinds of fishing trips were identified by the species that generated the greatest revenue. Trips were grouped into the following categories: yellowtail snapper (Ocyurus chrysurus); mutton snapper (Lutjanus analis), black grouper (Mycteroperca bonaci), or red grouper (Epinephelus morio); gray snapper (Lutjanus griseus); deeper water groupers and tilefishes; greater amberjack (Seriola dumerili); spiny lobster (Panulirus argus); king mackerel (Scomberomorus cavalla); and dolphin (Coryphaena hippurus). Average catches, revenues, routine trip costs, and net operating revenues per boat per trip and per boat per year were estimated for each category of fishing trips. In addition to its descriptive value, data collected during this study will aid in future examinations of the economic effects of various regulations on commercial reef fish fishermen.(PDF file contains 48 pages.)

Trace Metal Sensors for Coastal Monitoring, Seaside, California, April 11-13, 2005: workshop proceedings

The Alliance for Coastal Technologies (ACT) Workshop on Trace Metal Sensors for Coastal Monitoring was convened April 11-13, 2005 at the Embassy Suites in Seaside, California with partnership from Moss Landing Marine Laboratories (MLML) and the Monterey Bay Aquarium Research Institute (MBARI). Trace metals play many important roles in marine ecosystems. Due to their extreme toxicity, the effects of copper, cadmium and certain organo-metallinc compounds (such as tributyltin and methylmercury) have received much attention. Lately, the sublethal effects of metals on phytoplankton biochemistry, and in some cases the expression of neurotoxins (Domoic acid), have been shown to be important environmental forcing functions determining the composition and gene expression in some groups. More recently the role of iron in controlling phytoplankton growth has led to an understanding of trace metal limitation in coastal systems. Although metals play an important role at many different levels, few technologies exist to provide rapid assessment of metal concentrations or metal speciation in the coastal zone where metal-induced toxicity or potential stimulation of harmful algal blooms, can have major economic impacts. This workshop focused on the state of on-site and in situ trace element detection technologies, in terms of what is currently working well and what is needed to effectively inform coastal zone managers, as well as guide adaptive scientific sampling of the coastal zone. Specifically the goals of this workshop were to: 1) summarize current regional requirements and future targets for metal monitoring in freshwater, estuarine and coastal environments; 2) evaluate the current status of metal sensors and possibilities for leveraging emerging technologies for expanding detection limits and target elements; and 3) help identify critical steps needed for and limits to operational deployment of metal sensors as part of routine water quality monitoring efforts. Following a series of breakout group discussions and overview talks on metal monitoring regulatory issues, analytical techniques and market requirements, workshop participants made several recommendations for steps needed to foster development of in situ metal monitoring capacities: 1. Increase scientific and public awareness of metals of environmental and biological concern and their impacts in aquatic environments. Inform scientific and public communities regarding actual levels of trace metals in natural and perturbed systems. 2. Identify multiple use applications (e.g., industrial waste steam and drinking water quality monitoring) to support investments in metal sensor development. (pdf contains 27 pages)

Fish production from aquatic weeds

Irrigation in the eleven River Basin Authorities and in particular in the South Chad Irrigation Project and the Baga Polder Project is increasing and demands high yearly investments for aquatic weed control in canals and drains. If the weeds are biologically controlled by the grass carp (Ctenopharyngodon idella Val.), the costs will be turned into profit, particularly when the fish production (resident fish plus grass carp) is harvested and sold for food. The use of irrigation canals and drains for aquaculture in the form of fish polyculture may be a wise step towards increased fish production. This paper highlights the concept of fish production from aquatic weed control and concludes that it is a proven profitable venture in several countries

Present status and potentials of inshore and offshore pelagic fisheries in the capture and processing industries of Nigeria

Apart from activities of some foreign-based vessels, commercial exploitation of pelagic fishery resources in Nigeria has been limited to inland and inshore waters. Estimated potential for the inshore pelagic fishery is 70,000-90,000 tonnes while the small pelagic resources in the near offshore as well as tuna and tuna-like fishes further offshore have potentials of about 10,000 metric tonnes each. Despite the abundance of tuna within and adjoining the Nigerian EEZ, and its importance in the international market, only foreign-flagged vessels take advantage. In addition, the inshore pelagic fisheries in Nigeria have for long remained underexploited. The most common processing method has remained the age-old traditional smoke-drying, which is inadequate resulting in colossal waste through denaturation and incessant infestations by insects and moulds among other causes. The use of modern smoking techniques coupled with effective distribution systems can undoubtedly reduce waste. However, these are often not within the reach of most artisanal processors. It is proposed that the organised private sector should invest on simple but proven processing equipment such as smoking kilns. The inshore pelagic fish species and other small fishes can sustain cottage canning industries sited in fishing villages/settlements while larger canning factories should be based on offshore resources. Modalities for successful investments are highlighted, while a major consideration is given to joint ventures

Investment prospects in fish feed technology

The author endeavours to analyse the recent trend in the local production of fish by sector over a period of 5 years, 1980-1985 and the data available to the author on the Nigerian fish imports. The present and future deficit in fish production in Nigeria could only be met from the capture fishery and the fish farm industry but more likely from the latter. The production techniques involved in fish feed industry are illustrated in this paper with standard feed formulations to arrive at a suitable fish diet. Associated problems of fish feed industry and their possible solutions are highlighted. A case study of investment prospects in fish feed industry as well as the production of brine shrimps are suggested as possible areas of investments in the industry. The unit production cost of fish feed is about 700/ton, while in the case of artemia (brine shrimp), the estimated unit cost if about 400/ton

Strategies for the establishment of profitable fish farms in Nigeria

Cost projections for the establishment of a fish farm in Nigeria was conducted. It is shown that fish farming should be a lucrative venture. However, many private fish farms are not making the desired profits because of a variety of problems. Besides managerial incompetence, availability of fingerlings for stocking in the ponds is shown to be a serious handicap to the success of investments in a fish farm. It is suggested that where the funds are available, each farm should be equipped with facilities for raising its needs of fingerlings. Since useful capital would be involved and knowledgeable experts to run the hatcheries are few, it is recommended that fish farms within a state or adjacent states should combine to establish viable cooperative hatcheries

Fish farming in Anambra State: economic criteria

The paper is based on the premise that an understanding of the role and potentials of fish farming entrepreneurs in terms of their activities and expectations would enhance fish production and productivity. To this end, the present paper investigates the activities of 24 fish farmers in Anambra State, Nigeria. Based on the fish farmers' experience, the paper presents fish farming investments, budgets and recommendations that could ensure fish farming development as a profitable business venture and at the same time ensure greater fish production in the country

Building a sustainable community of coastal leaders to deal with sea level rise and inundation

Sea level rise and inundation were stated to be the highest priorities in the community-developed Ocean Research Priorities Plan and Implementation Strategy in 2005. Although they remain stated priorities, very few resources have been allocated towards this challenge. Inundation poses a substantial risk to many coastal communities, and the risk is projected to increase because of continued development, changes in the frequency and intensity of inundation events, and acceleration in the rate of sea-level rise along our vulnerable shorelines. (PDF contains 4 pages) There is an increasing urgency for federal and state governments to focus on the local and regional levels and consistently provide the information, tools, and methods necessary for adaptation. Calls for action at all levels acknowledge that a viable response must engage federal, state and local expertise, perspectives, and resources in a coordinated and collaborative effort. A workshop held in December 2000 on coastal inundation and sea level rise proposes a shared framework that can help guide where investments should be made to enable states and local governments to assess impacts and initiate adaptation strategies over the next decade.

If the tide is rising, who pays for the ark?

Two common goals of this meeting are to arrest the effects of sea level rise and other phenomena caused by Greenhouse Gases from anthropogenic sources ("GHG",) and to mitigate the effects. The fundamental questions are: (1) how to get there and (2) who should shoulder the cost? Given Washington gridlock, states, NGO's and citizens such as the Inupiat of the Village of Kivalina have turned to the courts for solutions. Current actions for public nuisance seek (1) to reduce and eventually eliminate GHG emissions, (2) damages for health effects and property damage—plus hundreds of millions in dollars spent to prepare for the foregoing. The U.S. Court of Appeals just upheld the action against the generators of some 10% of the CO2 emissions from human activities in the U.S., clearing the way for a trial featuring the state of the art scientific linkage between GHG production and the effects of global warming. Climate change impacts on coastal regions manifest most prominently through sea level rise and its impacts: beach erosion, loss of private and public structures, relocation costs, loss of use and accompanying revenues (e.g. tourism), beach replenishment and armoring costs, impacts of flooding during high water events, and loss of tax base. Other effects may include enhanced storm frequency and intensity, increased insurance risks and costs, impacts to water supplies, fires and biological changes through invasions or local extinctions (IPCC AR4, 2007; Okmyung, et al., 2007). There is an increasing urgency for federal and state governments to focus on the local and regional levels and consistently provide the information, tools, and methods necessary for adaptation. Calls for action at all levels acknowledge that a viable response must engage federal, state and local expertise, perspectives, and resources in a coordinated and collaborative effort. A workshop held in December 2000 on coastal inundation and sea level rise proposes a shared framework that can help guide where investments should be made to enable states and local governments to assess impacts and initiate adaptation strategies over the next decade. (PDF contains 5 pages)

An overview of the challenges and prospects in developing an aquaculture industry in Lagos State, Nigeria

Macroeconomic growth and the development of sustainable business activities are interrelated. In Lagos State, aquaculture is a marginal economic activity thriving mainly on a semi-intensive level. Notwithstanding the available potentials for the development of successful commercial aquaculture enterprises in the state, the transformation to a full-flagged industry continues to be undetermined by certain critical factors. Feasible development strategies may be sought in increasing all stakeholders' capacity in the formulation of policies, plans and regulations, a complete separation of aquaculture from the capture fisheries in administrative structure and policy; the adoption of precautionary approach; provision of economic incentives to enhance private investments and increase output,respectively

Assessment of the impact of aquatic resources research by ICLARM: scope and methodologies

The importance of quantifying the economic returns to investments in aquatic resources research together with the social, environmental and institutional impacts of such investments is widely recognized among ICLARM's donors, trustees and beneficiaries. As with other Consultative Group on International Agricultural Research (CGIAR) centers, ICLARM is being asked to provide specific accounts of the outputs of its research and their impact on farms and on fisheries, including their socioeconomic impact. Such impact information has become a necessary, though not sufficient, basis for setting priorities and allocating resources for research for the CGIAR centers. This paper discusses the types and methods of impact assessment relevant to ICLARM's work. A three-pronged assessment approach is envisaged to capture the full range of impacts: 1) ex ante assessment for research priority setting; 2) assessment prior to dissemination or adoption along with monitoring and evaluation; and 3) ex post impact assessment. It also discusses the objectives and scope for operational impact assessment of ICLARM's research.

Markets, marketing and production issues for aquaculture in East Africa: the case of Uganda

Aquaculture is currently responsible for an insignificant proportion of total fish production in Uganda. However, given the increasing demand for fresh fish in urban and peri-urban araes, and threats to the supply of fish from natural catch fisheries, the potential exists for a strong market in aquaculture. Small-scale fish farmers located relatively close to markets or all-season roads, and who can supply consistent and high quality produce, will have the widest range of marketing opportunities, and will likely be within the area of operation of potential traders and intermediaries that deliver fish to markets. Fish farmers that are not close to roads, or produce unreliable quantities and variable quality products may face high transaction costs of marketing their product, and decreasing net returns to production. The authors found that significant on-farm labor, and access to input markets are important factors leading to positive net returns to fish production. Areas with high population density and relatively low wages will be well suited to labor intensive aquaculture. The authors concluded that aquaculture development has good potential in certain areas of Uganda and should therefore be pursued as a potential development pathway. However, policy makers should consider the importance of the price of fresh fish relative to the cost of labor, as well as other factors including the importance of smallholder credit and access to extension services, when directing investments in aquaculture technology.