Ecolabels and certification for small-scale operators

(PDF has 16 pages.)

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)

Knowledge, attitudes and perceptions of management strategies and regulations of the Florida Keys National Marine Sanctuary by commercial fishers, dive operators, and environmental group members: A baseline characterization and 10-year comparison

This research is part of the Socioeconomic Research & Monitoring Program for the Florida Keys National Marine Sanctuary (FKNMS), which was initiated in 1998. In 1995-96, a baseline study on the knowledge, attitudes and perceptions of proposed FKNMS management strategies and regulations of commercial fishers, dive operators and on selected environmental group members was conducted by researchers at the University of Florida and the University of Miami’s Rosenstiel School of Atmospheric and Marine Science (RSMAS). The baseline study was funded by the U.S. Man and the Biosphere Program, and components of the study were published by Florida Sea Grant and in several peer reviewed journals. The study was accepted into the Socioeconomic Research & Monitoring Program at a workshop to design the program in 1998, and workshop participants recommended that the study be replicated every ten years. The 10-year replication was conducted in 2004-05 (commercial fishers) 2006 (dive operators) and 2007 (environmental group members) by the same researchers at RSMAS, while the University of Florida researchers were replaced by Thomas J. Murray & Associates, Inc., which conducted the commercial fishing panels in the FKNMS. The 10-year replication study was funded by NOAA’s Coral Reef Conservation Program. The study not only makes 10-year comparisons in the knowledge, attitudes and perceptions of FKNMS management strategies and regulations, but it also establishes new baselines for future monitoring efforts. Things change, and following the principles of “adaptive management”, management has responded with changes in the management plan strategies and regulations. Some of the management strategies and regulations that were being proposed at the time of the baseline 1995-96 study were changed before the management plan and regulations went into effect in July 1997. This was especially true for the main focus of the study which was the various types of marine zones in the draft and final zoning action plan. Some of the zones proposed were changed significantly and subsequently new zones have been created. This study includes 10-year comparisons of socioeconomic/demographic profiles of each user group; sources and usefulness of information; knowledge of purposes of FKNMS zones; perceived beneficiaries of the FKNMS zones; views on FKNMS processes to develop management strategies and regulations; views on FKNMS zone outcomes; views on FKNMS performance; and general support for FKNMS. In addition to new baseline information on FKNMS zones, new baseline information was developed for spatial use, investment and costs-and-earnings for commercial fishers and dive operators, and views on resource conditions for all three user groups. Statistical tests were done to detect significant changes in both the distribution of responses to questions and changes in mean scores for items replicated over the 10-year period. (PDF has 143 pages.)

Charter and Party Boat Operators in the U.S. Gulf of Mexico: A Social Structure Perspective

To better address the charter and party boat fishery needs in the U.S. Gulf of Mexico, fishery managers must understand the linkages between the industry and other groups and organizations that affect its success. Gulf state charter and party boat operators were interviewed to ascertain the extent of their social network linkages, membership in community organizations, business community relationships, and linkages to information sources. Approximately one-third to one-half of the charter and party boat operators did not belong to local community organizations that could assist their business through tourism promotion or natural resource protection. Despite their limited integration in the community, the vast majority of operators gave and received referrals from other businesses. Of four major information sources, the National Weather Service and the County Marine Extension agents were rated highest and lowest, respectively, in mean importance to charter and party boat operators. Results suggest that business success can be enhanced by strengthening network ties between operators and local businesses, chambers of commerce, and tourism organizations. For this to occur, individual operators and charter/party boat organizations need to become more effective in representing industry interests. Informational linkages between industry and govemment agencies also need improvement.

Integrated cage-cum-pond culture systems with high valued climbing perch (Anabas testudineus) in cages and low-valued carps in open ponds

An on-farm trial was conducted over 150 days to determine appropriate stocking ratio, growth and production of climbing perch (Anabas testudineus) in cages and carps in open water of ponds in eighteen farmers' ponds from Haluaghat Upazila at Mymensingh district of Bangladesh. One or two 1 m super(3) cage was suspended in each of 12 earthen ponds and other 6 ponds served as control without cages. Climbing perch of 2-3 g in size were stocked in cages while fingerlings of silver carp (Hypophthalmicthys molitrix), catla (Catla catla), rohu (Labeo rohita), mirgal (Cirhinus cirrhosus), rajputi (Puntius sarana) and common carp (Cyprinus carpio) were stocked at 1 fish/m super(2) with a species ratio of 5:4:4:4:2:1 in open water of all ponds to give cage to open-pond fish ratios of 1:1 (T sub(1:1)) and 2:1 (T sub(2:1)) and 0:1 (T sub(0:1)) as three treatments with six replicates each. Survival of climbing perch was higher in T sub(1:1) (61.67%) than that of T sub(2:1) (29.5%) and was significantly different (p>0.05) between the treatments. Stocking of small size climbing perch fry increased the mortality rate in cages. The net yields of Thai koi were 0.13±0.01 (t/ha) and 0.10±0.01 (t/ha) in treatments T sub(1:1) and T sub(2:1), respectively and both were significantly different (p>0.05). Survival of-open-pond carps was high, ranging from 50 to 91.67% with significantly lower in T sub(0:1) than that of T sub(1:1) and T sub(2:1) treatment. Net and gross yield of each carp species were significantly higher in the T sub(1:1) and T sub(2:1) treatment than that in T sub(0:1) treatment. Net revenues were positive but low in all treatments. Therefore, bigger size climbing perch with lower stocking ratio (T sub(1:1)) is suitable for integrated cage-pond culture of climbing perch and carps. However, more on-farm trials in different ecosystem with scientific interventions are necessary to develop the technology for further dissemination among the rural farmers.