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)

Coral Remote Sensing Workshop: Proceedings and Recommendations, 17-18 September, Sheraton, Brickell Ave, Miami FL

Coral reefs exist in warm, clear, and relatively shallow marine waters worldwide. These complex assemblages of marine organisms are unique, in that they support highly diverse, luxuriant, and essentially self-sustaining ecosystems in otherwise nutrient-poor and unproductive waters. Coral reefs are highly valued for their great beauty and for their contribution to marine productivity. Coral reefs are favorite destinations for recreational diving and snorkeling, as well as commercial and recreational fishing activities. The Florida Keys reef tract draws an estimated 2 million tourists each year, contributing nearly $800 million to the economy. However, these reef systems represent a very delicate ecological balance, and can be easily damaged and degraded by direct or indirect human contact. Indirect impacts from human activity occurs in a number of different forms, including runoff of sediments, nutrients, and other pollutants associated with forest harvesting, agricultural practices, urbanization, coastal construction, and industrial activities. Direct impacts occur through overfishing and other destructive fishing practices, mining of corals, and overuse of many reef areas, including damage from souvenir collection, boat anchoring, and diver contact. In order to protect and manage coral reefs within U.S. territorial waters, the National Oceanic and Atmospheric Administration (NOAA) of the U.S. Department of Commerce has been directed to establish and maintain a system of national marine sanctuaries and reserves, and to monitor the condition of corals and other marine organisms within these areas. To help carry out this mandate the NOAA Coastal Services Center convened a workshop in September, 1996, to identify current and emerging sensor technologies, including satellite, airborne, and underwater systems with potential application for detecting and monitoring corals. For reef systems occurring within depths of 10 meters or less (Figure 1), mapping location and monitoring the condition of corals can be accomplished through use of aerial photography combined with diver surveys. However, corals can exist in depths greater than 90 meters (Figure 2), well below the limits of traditional optical imaging systems such as aerial or surface photography or videography. Although specialized scuba systems can allow diving to these depths, the thousands of square kilometers included within these management areas make diver surveys for deeper coral monitoring impractical. For these reasons, NOAA is investigating satellite and airborne sensor systems, as well as technologies which can facilitate the location, mapping, and monitoring of corals in deeper waters. The following systems were discussed as having potential application for detecting, mapping, and assessing the condition of corals. However, no single system is capable of accomplishing all three of these objectives under all depths and conditions within which corals exist. Systems were evaluated for their capabilities, including advantages and disadvantages, relative to their ability to detect and discriminate corals under a variety of conditions. (PDF contains 55 pages)

Biology, Oceanography, and Fisheries of the North Pacific Transition Zone and Subarctic Frontal Zone: Papers from the North Pacific Transition Zone Workshop, Honolulu, Hawaii, 9-11 May 1988

In the past few years, large-scale, high-seas driftnet fishing has sparked intense debate and political conflict in many oceanic regions. In the Pacific Ocean the driftnet controversy first emerged in the North Pacific transition zone and subarctic frontal zone, where driftnet vessels from Japan, the Republic of Korea, and Taiwan pursue their target species of neon flying squid. Other North Pacific driftnet fleets from Japan and Taiwan target stocks of tunas and billfishes. Both types of driftnet fishing incidentally kill valued non-target species of marine life, including fish, mammals, birds, and turtles. In response to public concerns about driftnet fishing, government scientists began early on to assemble available information and consider what new data were required to assess impacts on North Pacific marine resources and the broader pelagic ecosystem. Accordingly, a workshop was convened at the NMFS Honolulu Laboratory in May 1988 to review current information on the biology, oceanography, and fisheries of the North Pacific transition zone and subarctic frontal zone. The workshop participants, from the United States and Canada, also developed a strategic plan to guide NMFS in developing a program of driftnet fishery research and impact assessment. This volume contains a selection of scientific review papers presented at the 1988 Honolulu workshop. The papers represent part of the small kernel of information available then, prior to the expansion of cooperative international scientific programs. Subsequent driftnet fishery monitoring and research by the United States, Canada, Japan, Korea, and Taiwan have added much new data. Nevertheless, this collection of papers provides a historical perspective and contains useful information not readily available elsewhere. (PDF file contains 118 pages.)

The Ballad of Whoi Bob: a tale of the IGY or the Briny Deep Discovered, with many particulars of the extraordinary adventures and the heroic tasks of science at sea

PDF contains 19 pages

Policy analysis of shoreline restoration options on private shorelines of Puget Sound

Puget Sound shorelines have historically provided a diversity of habitats that support a variety of aquatic resources throughout the region. These valued natural resources are iconic to the region and remain central to both the economic vitality and community appreciation of Puget Sound. Deterioration of upland and nearshore shoreline habitats, have placed severe stress on many aquatic resources within the region (PSAT, 2007). Since a majority of Washington State shorelines are privately owned, regulatory authority to legislate restoration on private property is limited in scope and frequency. Washington States’ Shoreline Management Act (RCW 90.58) requires local jurisdictions to plan for appropriate future shoreline uses. Under the Act, future development can be regulated to protect existing ecological functions, but lost functions cannot be restored without purchase or compensation of restored areas. Therefore, questions remains as to the ecological resilience of the region when considering cumulative effect of existing/ongoing shoreline development constrained by limited shoreline restoration opportunities. In light of these questions, this analysis will explore opportunities to promote restoration on privately owned shorelines within Puget Sound. These efforts are intended to promote more efficient ecosystem management and improve ecosystem-wide ecological functions. From an economics perspective, results of past shoreline management can generally be characterized as both market and government failure in effectively protecting the publics’ interest in maintaining healthy shoreline resources. Therefore coastal development has proceeded in spite of negative externalities and market imbalances resulting in inefficient resource management driven by the individual ambitions of private shoreline property owners to develop their property to their highest and best use. Federally derived property rights will protect continuation of existing uses along privately owned shorelines; therefore, a fundamental challenge remains in sustainable management of existing shoreline resources while also restoring ecological functions lost to past mistakes in an effort to increase the ecologic resiliency within the region. (PDF contains 5 pages)

Applying Habermas's critical theory to public administration and policy: A case study of Florida Everglades restoration program

The foundation of Habermas's argument, a leading critical theorist, lies in the unequal distribution of wealth across society. He states that in an advanced capitalist society, the possibility of a crisis has shifted from the economic and political spheres to the legitimation system. Legitimation crises increase the more government intervenes into the economy (market) and the "simultaneous political enfranchisement of almost the entire adult population" (Holub, 1991, p. 88). The reason for this increase is because policymakers in advanced capitalist democracies are caught between conflicting imperatives: they are expected to serve the interests of their nation as a whole, but they must prop up an economic system that benefits the wealthy at the expense of most workers and the environment. Habermas argues that the driving force in history is an expectation, built into the nature of language, that norms, laws, and institutions will serve the interests of the entire population and not just those of a special group. In his view, policy makers in capitalist societies are having to fend off this expectation by simultaneously correcting some of the inequities of the market, denying that they have control over people's economic circumstances, and defending the market as an equitable allocator of income. (deHaven-Smith, 1988, p. 14). Critical theory suggests that this contradiction will be reflected in Everglades policy by communicative narratives that suppress and conceal tensions between environmental and economic priorities. Habermas’ Legitimation Crisis states that political actors use various symbols, ideologies, narratives, and language to engage the public and avoid a legitimation crisis. These influences not only manipulate the general population into desiring what has been manufactured for them, but also leave them feeling unfulfilled and alienated. Also known as false reconciliation, the public's view of society as rational, and "conductive to human freedom and happiness" is altered to become deeply irrational and an obstacle to the desired freedom and happiness (Finlayson, 2005, p. 5). These obstacles and irrationalities give rise to potential crises in the society. Government's increasing involvement in Everglades under advanced capitalism leads to Habermas's four crises: economic/environmental, rationality, legitimation, and motivation. These crises are occurring simultaneously, work in conjunction with each other, and arise when a principle of organization is challenged by increased production needs (deHaven-Smith, 1988). Habermas states that governments use narratives in an attempt to rationalize, legitimize, obscure, and conceal its actions under advanced capitalism. Although there have been many narratives told throughout the history of the Everglades (such as the Everglades was a wilderness that was valued as a wasteland in its natural state), the most recent narrative, “Everglades Restoration”, is the focus of this paper.(PDF contains 4 pages)

Protecting a threatened coastal fish species through regional collaboration

Rainbow smelt (Osmerus mordax) are small anadromous fish that live in nearshore coastal waters during much of the year and migrate to tidal rivers to spawn during the spring. They are a key prey species in marine food webs, as they are consumed by larger organisms such as striped bass, bluefish, and seabirds. In addition, smelt are valued culturally and economically, as they support important recreational and commercial fisheries. The Atlantic Coast range of rainbow smelt has been contracting in recent decades. Historically, populations extended from the Delaware River to eastern Labrador and the Gulf of St. Lawrence (Buckley 1989). More recent observations indicate that rainbow smelt spawning populations have been extirpated south of Long Island Sound, and evidence of spawning activity is extremely limited between Long Island and Cape Cod, MA. In the Gulf of Maine region, spawning runs are still observed, but monitoring surveys as well as commercial and recreational catches indicate that these populations have also declined (e.g., Chase and Childs 2001). Many diverse factors could drive the recently noted declines in rainbow smelt populations, including spawning habitat conditions, fish health, marine environmental conditions, and fishing pressure. Few studies have assessed any of these potential threats or their joint implications. In 2004, the National Marine Fisheries Service (NMFS) listed rainbow smelt as a species of concern. Subsequently, the states of Maine, New Hampshire, and Massachusetts were awarded a grant through NMFS’s Proactive Conservation Program to gather new information on the status of rainbow smelt, identify factors that affect spawning populations, and develop a multi-state conservation program. This paper provides an overview of this collaborative project, highlighting key biological monitoring and threats assessment research that is being conducted throughout the Gulf of Maine. (PDF contains 4 pages)

Assessment of inland waters fisheries in Nigeria with implications for improved freshwater fish production, poverty alleviation and food security

Rapid Appraisals of the current fisheries situations of some selected inland water bodies in Nigeria were carried out within the framework of Aquaculture and Inland Fisheries Project (AIFP) Annex II of the National Special Programme for Food Security (NSPFS). This paper presents the results of the fishery assessment of one of the selected inland water bodies (Sabke Lake) in Nigeria with a view to optimizing the fish yield through the adoption of improved culture based fishery techniques and community-based fisheries management. The lake is unmanaged and the fishing pressure was found to be very high. Also a number of fishermen were found using small mesh size nets to crop the juveniles of highly valued fish species for an optimum catch. About 14 fishermen ought to have been engaged in full time fishing activities if the fisheries of this lake is to be managed on a sustainable basis. However, a surplus of over 100 fishermen was recorded actively fishing during the period of the study. The results further revealed that Fisheries Rules and Regulations were not established for the national exploitation and proper management of the fisheries of many inland water bodies including Sabke Lake. All these have a depilatory effect on the abundance and sizes of fish harvested from the nigerian inland water bodies especially Sabke Lake. A community based management system that establishes a participatory involvement of fishermen in the conservation and national exploitation of fisheries resources for their own well being is recommended for Sabke Lake and other inland water bodies in Nigeria

Prosomal-width-to-weight relationships in American horseshoe crabs (Limulus polyphemus): examining conversion factors used to estimate landings

Horseshoe crabs (Limulus polyphemus) are valued by many stakeholders, including the commercial fishing industry, biomedical companies, and environmental interest groups. We designed a study to test the accuracy of the conversion factors that were used by NOAA Fisheries and state agencies to estimate horseshoe crab landings before mandatory reporting that began in 1998. Our results indicate that the NOAA Fisheries conversion factor consistently overestimates the weight of male horseshoe crabs, particularly those from New England populations. Because of the inaccuracy of this and other conversion factors, states are now mandated to report the number (not biomass) and sex of landed horseshoe crabs. However, accurate estimates of biomass are still necessary for use in prediction models that are being developed to better manage the horseshoe crab fishery. We recommend that managers use the conversion factors presented in this study to convert current landing data from numbers to biomass of harvested horseshoe crabs for future assessments.

Potential causes of mortality for horseshoe crabs (Limulus polyphemus) during the biomedical bleeding process

Biomedical companies catch and bleed horseshoe crabs for the production of Limulus amebocyte lysate (LAL), a product used for protecting public health (Berkson and Shuster, 1999). LAL is a clotting agent, derived solely from horseshoe crab blood cells, which is used to detect the presence of pathogenic gramnegative bacteria in injectable drugs and implantable medical and dental devices (Mikkelsen, 1988; Novitsky, 1991). In addition, LAL is used in many diagnostic tests for such illnesses as gram-negative bacterial meningitis and typhoid fever (Ding and Ho, 2001). Because the LAL test allows one to detect femtogram levels of endotoxin (Ding and Ho, 2001), it is the most effective test for detecting endotoxin contamination, and its increasing use in medical and pharmaceutical laboratories makes it a highly valued product.

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.

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.

How many species are there?

For convenience, many assume that about 10 million species exist, though the final figure is likely to be 30-50 million.