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)

An appraisal of the efficiency of fish marketing system in Lake Chad basin

Fish products from the Chad Basin Lake play important role in meeting fish protein needs of Nigeria: they contribute not less than 25% of the total domestic fish supply and are significant in determining the availability of processed products and reduction of post-harvest losses. Processors, marketers and consumers are the major actors in appraising a marketing system. The results show that most sellers (4-7.5%) are within the age range of 30-39 years. Desires for more earnings led the markets to diversify their business activities to food stuff trading (37.5%), dried meat/livestock sales (37.5%), farming (12.5%), and transportation (12.5%). 65% of traders dispose off their products mostly in the mornings and evenings, 70% of the products are sold smoked while 50% of products are sold to individual consumers. Lake Chad fish products have a long distribution chain. There is also a high degree of buyers and sellers concentration in the primary fish markets and secondary (urban) markets. The products have a vertical regional movement with southern traders (82.5%) dominating the business, thus making the products popular all over Nigeria. Product differentiation with imperfect pricing policy is common occurrence. Lake Chad fish marketing system has distortions that impede its efficiency, recommendations are made on how to ensure a better efficiency of the system

Microsatellite primers for red drum (Sciaenops ocellatus)

In this note, we document polymerase-chain-reaction (PCR) primer pairs for 101 nuclear-encoded microsatellites designed and developed from a genomic library for red drum (Sciaenops ocellatus). Details of the genomic library construction, the sequencing of positive clones, primer design, and PCR protocols may be found in Karlsson et al. (2008). The 101 microsatellites (GENBA NK Accession Numbers EU015882-EU015982) were amplified successfully and used to genotype 24 red drum obtained from Galveston Bay, Texas (Table 1). A total of 69 of the microsatellites had an uninterrupted (perfect) dinucleotide motif, and 30 had an imperfect dinucleotide motif; one microsatellite had an imperfect tetranucleotide motif, and one had an imperfect and compound motif (Table 1 ). Sizes of the cloned alleles ranged from 84 to 252 base pairs. A ‘blast’ search of the GENBANK database indicated that all of the primers and the cloned alleles were unique (i.e., not duplicated).

A survey of the quality of salt cured fish produced in the Kanyakumari Disrict [i.e. District], Madras State

A survey of the quality of salt cured fish in Kanyakumari District, Madras State was done during the years 1963 and 1964 to obtain necessary basic information to formulate quality standards for these products which are gaining importance in the export trade. 155 trade samples of sun-dried, dry-salted, wet-cured and pit-cured fishery products were examined for their chemical quality and organoleptic characteristics. 26.5% of the sun-dried products, 25% of the wet cured fish, 55.21% of the dried salted products and none of the pit cured samples were found to be good in quality. The sun dried products were generally found to have heavy admixture of sand and were inadequately dried. The chief defects in the salt cured fish products were found to be the use of spoiled fish, imperfect cleaning and washing, use of impure salt, inadequate salting, curing and drying, and unhygienic conditions in all stages. Quality standards must be formulated for each variety of salt cured fish product and adequate measures taken to rectify the defects and enforce the quality standards.

Survey on the quality of Jaadi available [in] Sri Lankan market

A quality of survey was conducted at the fish curing yards in a northwest coast and the southern coast in Sri Lanka. A total of 40 samples different varieties of fishes were collected from the market and jaadi curing yards and all were evaluated for the quality, fungal and insect infestation. Samples were analyzed for proximate composition chemical, microbiological and sensory quality. Thirty percent of the total analyzed samples of fish were found to be unfit for consumption. Samples collected from Negombo were found to the infected with maggots. Only 42% samples had dry matter above 50%. All the samples showed a protein content above 20%. The highest protein content was 27.92% in hurulla. Over 90% of the samples had TVN at acceptable quality limits (>40). The TBC for 33% of the samples were in the range 104-105/g range, while 48% were in the range of 107-108/g due to contamination of maggots and fungi. The Survey showed jaadi had a high level of protein in its composition. But defects of curing process such on imperfect cleaning inadequate salting resulted in low (Chemical and microbiological) quality of the product.

Quality of cured fishery products from Malabar and Kanara coasts

Results of chemical, bacteriological and organoleptic quality studies of cured fishery products of commerce collected from six major fish curing centres on the west coast of India are presented. 77.12% of the samples had moisture above 35%, 97.18% showed salt content below 25% and all samples had acid insoluble ash above 1.5%. 42.32% gave standard plate counts above 10,000 and 45.77% were contaminated with 'Red' halophiles. The major defects in curing were imperfect cleaning, inadequate salting and unhygienic conditions of processing.