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)

A manual of previously recorded non-indigenous invasive and native transplanted animal species of the Laurentian Great Lakes and coastal United States

This manual presents geographic information by state of occurrence, and descriptions of the socio-economic impact created by the invasion of non-indigenous and native transplanted animal species in the Laurentian Great Lakes and the coastal waters of the United States. It is not a comprehensive literature review, but rather is intended as a primer for those unfamiliar with the socio-economic impacts of invasive aquatic and marine animals. Readers should also note that the information contained in this manual is current as of its publication date. New information and new species are routinely being added to the wider literature base. Most of the information was gathered from a number of web sites maintained by government agencies, commissions, academic institutions and museums. Additional information was taken from the primary and secondary literature. This manual focuses on socio-economic consequences of invasive species. Thus, ecological impacts, when noted in the literature, are not discussed unless a connection to socio-economic factors can be made. For a majority of the species listed, either the impact of their invasion is not understood, or it is not published in sources surveyed. In the species summaries, sources of information are cited except for information from the U.S. Geological Survey’s (USGS) Nonindigenous Aquatic Species Database http://nas.er.usgs.gov. This website formed the base information used in creating tables on geographic distribution, and in many of the species summaries provided. Thus, whenever information is given without specific author/source and date citation, it has come from this comprehensive source. (PDF contains 90 pages)

Persistence of viable but non-culturable bacteria during the production and distribution of drinking water

The direct measurement of in situ respiring bacteria using 5-cyano-2,3-ditolyl tetrazolium chloride (CTC) shows that, especially for Gram-negative bacteria, large numbers of viable but non-culturable (VBNC) bacteria are present in finished water from a conventional water treatment plant, and the regrowth of bacteria along distribution networks can be seen rapidly by using this very sensitive technique. The level of bacterial inactivation with chlorine is much less important than has been previously supposed (based on experiments with non-injured laboratory strains of bacteria and classical culture techniques). Threshold values of VBNC bacteria leaving water treatment plants or regrowing along distribution systems have to be determined for better control of coliform regrowth and health- risks associated with the consumption of drinking water.

Diversity of selective and non-selective fishing gear and their impact on inland fisheries in Bangladesh

The paper describes the wide range of traditional fishing gear used by subsistence and professional fishers in the inland waters in Bangladesh as well as their impact on the fisheries and the environment. The negative impacts indicate the need for regulation of specific types of fishing gear at particular times of the year. An awareness/training program should be extended to the fishermen to create awareness of the long-term effects of their fishing practices and to impart knowledge of fishing laws.

An Accounting of the Sources of Steller Sea Lion, Eumetopias jubatus, Mortality

During 1991–2000, the west-are additional mortalities that fueled the ern stock of Steller sea lions, Eumetopias decline. We tabulated the levels of reported jubatus, declined at 5.03% (SE = 0.25%) anthropogenic sources of mortality (sub- per year, statistically significant rates (P < sistence, incidental take in fisheries, and 0.10) in all but the eastern Aleutian Islands research), estimated another (illegal shoot-region. The greatest rates of declines oc-ing), then approximated levels of predation curred in the eastern and central Gulf of Alas-(killer whales and sharks). We attempted to ka and the western Aleutian Islands (> 8.2% partition the various sources of “additional” per year). Using a published correction mortalities as anthropogenic and as addifactor, we estimated the total non-pup pop-tional mortality including some predation. ulation size in Alaska of the western stock We classified 436 anthropogenic mortalities of Steller sea lions to be about 33,000 ani-and 769 anthropogenic plus some predation mals. Based on a published life table and mortalities as “mortality above replace-the current rate of decline, we estimate that ment”; this accounted for 26% and 46% of the total number of mortalities of non-pup the estimated total level of “mortality above Steller sea lions during 1991–2000 was replacement”, respectively. The remaining about 6,383 animals; of those, 4,718 (74%) mortality (74% and 54%, respectively) was are mortalities that would have occurred if not attributed to a specific cause and may be the population were stable, and 1,666 (26%) the result of nutritional stress.

Alternative phosphorus sources for formulated fish feed

An experiment was conducted to evaluate the possibility of using inorganic fertilizer triple super phosphate (TSP), inorganic fertilizer 16:20 (a 16:20 grade fertilizer contains 16 percent N and 20 percent P20 5), rice-bran and duck-manure as phosphorus sources in formulated fish feed for Nile tilapia ( Oreochromis niloticus). Experiment was conducted for a period of 2 months in net-cages suspended in fertilized earthen ponds and all male sex-reversed Nile tilapia (9.39- 10.37 g) were used in the experiment. Seven treatments including one non-feed treatment were used in this experiment. Treatment 1 (non-feed), treatment 2 (-P) where fish fed with phosphorus non-supplemented diet acted as control 1 and treatment 3, 4, 5, 6 and 7 where fish fed with 3% di-calcium phosphate (DCP), 3% triple supper phosphate (TSP), 7% 16:20 inorganic fertilizer, 30% rice-bran and 30% duck-manure supplemented diet, respectively. Results showed that the TSP and 16:20 grade inorganic fertilizer supplementation in diets as phosphorus sources were equivalent to DCP (Di-calcium phosphate) supplementation in terms of growth performance, feed utilization efficiency and final body composition of Nile tilapia. Ricebran and duck-manure were not found as good phosphorus sources.