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)

The Kandhkelgaon Story: a bold bid by women in Kandhkelgaon Village, Saintala Block, Bolangir District, to break out of their poverty trap

One third of the people on earth who are described as living in absolute poverty are found today in India. “These people,” says Mr B K Satpathy, “are caught in a poverty trap’.” “Poverty trap?” we ask. “These are creative weavers; their cloth has a distinctive style, but those who supply their thread also take away and sell the cloth, paying just a small labor cost for each saree. If they are skilled and work hard this amounts to only 25-30 rupees (60-70 US cents) per day.” Under this arrangement, weaving does not provide enough to live on, and people are seeking ways to escape their entrapment in poverty. (Pdf contains 6 pages).

Improvements to Data Collection in Commercial Fisheries Using Electronic Reporting Methods: Cost/Efficiency and Implications for Use in Ecosystem Management.

Data have been collected on fisheries catch and effort trends since the latter half of the 1800s. With current trends in declining stocks and stricter management regimes, data need to be collected and analyzed over shorter periods and at finer spatial resolution than in the past. New methods of electronic reporting may reduce the lag time in data collection and provide more accurate spatial resolution. In this study I evaluated the differences between fish dealer and vessel reporting systems for federal fisheries in the US New England and Mid-Atlantic areas. Using data on landing date, report date, gear used, port landed, number of hauls, number of fish sampled and species quotas from available catch and effort records I compared dealer and vessel electronically collected data against paper collected dealer and vessel data to determine if electronically collected data are timelier and more accurate. To determine if vessel or dealer electronic reporting is more useful for management, I determined differences in timeliness and accuracy between vessel and dealer electronic reports. I also compared the cost and efficiency of these new methods with less technology intensive reporting methods using available cost data and surveys of seafood dealers for cost information. Using this information I identified potentially unnecessary duplication of effort and identified applications in ecosystem-based fisheries management. This information can be used to guide the decisions of fisheries managers in the United States and other countries that are attempting to identify appropriate fisheries reporting methods for the management regimes under consideration. (PDF contains 370 pages)

Aspects of the oyster season in Maryland: Involving labor conflicts detrimental to both seafood and cannery industries, with special reference to the latter

For fully three decades there has been an almost steady decline in Maryland's oyster production... are alarmed for its future. Reasons for decline, data supplied,importance of brood oysters and clutch replenishment. Problems of warm weather and bacterial activity as well as tongs grinding the bottom. Conflicts in canning of early season oysters and late season crops like tomatoes. (PDF contains 16 pages)

Protein and amino acid requirements of warm-water fishes: a tool to efficient and low-cost fish feed production in Nigeria

Numerous investigations have utilized various semi-purified and purified diets to estimate the protein and amino acid requirements of several temperate fishes. The vast literature on the protein and amino acid requirements of fishes has continued to omit that of the tropical warm water species. The net effect is that fish feed formulation in Nigeria have relied on the requirement for temperate species. This paper attempts to review the state of knowledge on the protein amino acid requirements of fishes with emphasis on the warm water species, the methods of protein and amino acid requirement determinations and the influence of various factors on nutritional requirement studies. Finally evidence are presented with specific examples on how requirements of warm water fishes are different from the temperate species and used this to justify why fish feed formulation in Nigeria are far from being efficient

Growth response, feed conversion rate and cost benefits of hybrid catfish fed maggot meal based diets in outdoor tanks

The growth response, feed conversion ratio and cost benefits of hybrid catfish, Heterobranchus longifilis x Clarias gariepinus fed five maggot meal based diets were evaluated for 56 days in outdoor concrete tanks. Twenty-five fingerlings of the hybrid fish were stocked in ten outdoor concrete tanks of dimension 1.2mx0.13mx0.18m and code MM sub(1)-MM sub(5) in relation to their diet name. Five isonitrogenous and isocaloric maggot meal based diets namely MM sub(1)-0% maggot meal, MM sub(2)-25% maggot meal, MM sub(3)-50% maggot meal, MM sub(4-)75% maggot meal and MM sub(5-) 100% maggot meal were used for the experiment. The higher the proportion of maggot in the meal, the higher the ether extract and crude fiber. No significance difference P>0.05 exists between ash content of the experimental diets. Diet MM sub(2) had the best growth performance and highest MGR with a significant difference P<0.05 with other diets fed fish. No significance differences P>0.05 exists between the growth parameters for diets MM sub(1), MM sub(3), and MM sub(4). A positive correlation (r=1.0) exists (P<0.05, 0.25) between the growth parameters for the different experimental diets. Highest correlation r super(2)=0.9981 exists P<0.05 between MGR within the treatments. However, there no significant (P>0.05) difference in expenditure but there is between the profit indices and incidence of cost between the trials. MM sub(2) has the best yield cost and net profit. Without any reservation, inclusion of maggot based meal diet is recommended as feed of hybrid catfish to 75% inclusion for growth and profit incidence

Effects of photoperiod on growth of larvae and juveniles of the anemonefish Amphiprion melanopus

Rearing of anemonefishes is now relatively routine compared to the culture of cardinalfishes (Apogonidae) or angelfishes (Pomacanthidae). However, it is still a labor intensive, time intensive and expensive procedure. To reduce time and cost of rearing anemonefishes, experiments were undertaken to improve the methods for rearing Amphiprion melanopus. These experiments were conducted to determine the effect of the length of photoperiod on larval duration, growth to metamorphosis and early juvenile phase. Growth of larvae was significantly faster and the duration of the larval phase was significantly shorter, under a photoperiod of 16 hours light/8 hours dark, compared to the photoperiods of 12 hours light/12 hours dark and 24 hours light/0 hours dark.

Dietary Phytase: an ideal approach for a cost effective and low-polluting aquafeed

Global fishmeal production from wild-catch sources cannot continue to increase indefinitely; suitable alternatives have to be found for sustainable aquaculture. Plant-based aquafeed seems to be the ideal alternative to this, but has its own limitations. Plant ingredients are rich in phytic acid, which reduces the bioavailability of nutrients like minerals and protein to the fish, thereby causing aquaculture pollution. Dietary phytase treatment reduces the aquaculture pollution by improving the bioavailability of nutrients, and reduces the feed cost as evident from poultry and piggery. Phytase activity is highly dependent upon the pH of the gut. Unlike mammals, fish are either gastric or agastric, and hence, the action of dietary phytase varies from species to species. In this article, the authors attempt to summarise various effects of phytase on nutrient utilization, growth of fish and aquatic pollution.

Seasonality, labor and integration of aquaculture into southern African smallhold farming systems

Fish production on Malawian smallholdings is generally limited by the quantity and quality of inputs to the pond (Brummett and Noble 1995). The timing of labor availability and other farm activities limit the amount farmers put into their ponds resulting in lower growth rates and yields. There is potential for improving production and yields through modifications of production schedules to accommodate other farming activities. Limited material and labor inputs among farming system enterprises can be better allocated by considering seasonal availability of inputs and adapting the pond and fish farming technology to the farming system. This case from Malawi demonstrates that aquaculture technology that neglects the annual cycle of events and constraints on the farm will not be easily integrated into the farming system. Focusing on technology that maximizes fish production rather than facilitation of adoption and integration has been a feature of the majority of African smallholder agriculture/aquaculture projects. Farming Systems Research (FSR) must identify niches and opportunities for system improvement for it to be worth supporting as a development intervention.

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.

Low cost murrel seed production technique for fish farmers

A simple and low-cost breeding technology for breeding the striped murrel, Channa striatus in hapas in ponds was developed in India.

The cost of action: CRM investment in the Philippines

Knowing the cost of investment in coastal resources management (CRM) is important especially in understanding the cost of undertaking one and ascertaining whether the outcomes are worth the money spent. In the Philippines, various CRM projects have already been initiated and no studies have tried to account for the total level of investment. This paper provides an estimate of money spent or invested on CRM in the Philippines and examines the investment per km2 of coral reefs.

Promotion of substrate based microbial biofilm in ponds: a low cost technology to boost fish production

Microbial biofilms have been found to increase fish production in ponds by increasing heterotrophic production through periphyton proliferation on available substrates. In this paper, the role of substrate based microbial biofilm in the production of Cyprinus carpio and Labeo rohita grown in ponds is investigated, using an easily available and biodegradable agricultural waste product (sugarcane bagasse) as substrate.

Low cost breeding and hatching techniques for the catfish (Heteropneustes fossilis) for small-scale farmers

The high demand for the stinging catfish (Heteropneustes fossilis) and declining wild stocks led the Centre for Aquaculture Research and Extension of India to look for methods for the culture of the species. This paper presents a low-cost, simple breeding technique developed and tested by the Centre that can be easily adopted by rural farmers.

Low cost light traps for coral reef fishery research and sustainable ornamental fisheries

Two relatively inexpensive light traps to capture pre-settling reef fish and invertebrates are described. A trap made from a plastic bucket (with plastic bottles, a small plastic waste bin and two sheets of plywood) that costs US$15 appears to be just as effective as a large aluminium and plexiglass trap that costs US$275.