| | Navigate the Atlas:  | |
|
|
|
|
|
|
|
|
|
|
|
|
| | | Economics of fishing Operations |
| |
|  A more specific level includes reference to the fishing area, gear and the main target species, such as the North Sea herring purse seine fishery,Gulf of Mexico shrimp trawl fishery,southern ocean Patagonian toothfish longline fishery.While capture fisheries encompass thousands of fisheries on a global scale, they are often categorized at the level of which a fishery is managed nationally and/or regionally.The following brief descriptions provide an overview of capture fishery types. Industrial fisheriesCapital-intensive fisheries using relatively large vessels with a high degree of mechanization and that normally have advanced fish finding and navigational equipment.Such fisheries have a high production capacity and the catch per unit effort is normally relatively high. In some areas of the world industrial fisheries is synonymous with fisheries for species that are used for reduction to fishmeal and fish oil (e.g. the trawl fishery for sandeel in the North Sea).Small-scale fisheries Labour-intensive fisheries using relatively small crafts (if any) and little capital and equipment per person-on-board. These are most often family-owned; may be commercial or for subsistence; usually consume little fuel and are often equated with artisanal fisheries. Artisanal fisheriesSometimes referred to as small-scale fisheries, these are typically traditional fisheries involving fishing households (as opposed to commercial companies), using relatively small amount of capital, relatively small fishing vessels, making short fishing trips, close to shore, mainly for local consumption.In practice, definition varies between countries, e.g. from gleaning or a one-person canoe in poor developing countries, to more than 20 m. trawlers, seiners, or long-liners in developed ones. Artisanal fisheries can be subsistence or commercial fisheries, providing for local consumption or export. In general, though by no means always, they use relatively low level technology. Artisanal and industrial fisheries frequently target the same resources which may give rise to conflict. Recreational (sport) fisheriesHarvesting fish for personal use, leisure, and challenge (e.g. as opposed to profit or research). Recreational fishing does not include sale, barter or trade of all or part of the catch.Commercial fisheriesFisheries undertaken for profit and with the objective to sell the harvest on the market, through auction halls, direct contracts, or other forms of trade.Subsistence fisheriesA fishery where the fish caught are shared and consumed directly by the families and kin of the fishers rather than being bought by intermediaries and sold at the next larger market. Pure subsistence fisheries are rare as part of the products are often sold or exchanged for other goods or services.Traditional fisheriesFisheries established long ago, usually by specific communities that have developed customary patterns of rules and operations. Traditional fisheries reflect cultural traits and attitudes and may be strongly influenced by religious practices or social customs. Knowledge is transmitted between generations by word of mouth. They are usually small-scale and/or artisanal.Revenues and costs mainly determine the economics of fishing operations. Revenues depend on species and quantities caught and prices obtained, which again depend on marketing channels and markets, seasonal fluctuations and other factors. | | | | In the 10 countries, which participated in the previous as well as in the recent study, two countries showed marked improvements in the profitability of their fishing vessels i.e. France and Spain while two countries showed a declining profitability i.e. the Peoples Republic of China and Germany. In the remaining six countries i.e. the Republic of Korea, Indonesia, India, Senegal, Argentina and Peru, the situation was similar as during the previous study carried out between 1995 and 1997. | | | | These overall positive results were also achieved because of higher prices paid to producers as compared to the previous study period. There were only few indications that fishing effort had been reduced and fish stocks had recovered. It was also observed that some fishing fleets had adapted themselves to new conditions dictated by depleted and changing abundance of resources and new access to markets in the context of globalisation by changing their fishing operations. Those vessels, which had previously shown positive results but now incurred losses, were generally older vessels due to the fact that they continued to work on overexploited stocks. | | | | Regarding the impact of government financial transfers it was found that in two countries, belonging to the European Union and in India, almost all types of vessels covered by the cost and earnings study, which received subsidies, would also have been profitable without subsidies. In the Republic of Korea, the situation was mixed while in Thailand, those types of vessels. which could avail themselves of tax exemptions on fuel needed the tax exemption in order to have a positive gross cash flow. No subsidies were available in Indonesia. | | | | In the case of other countries it was observed that no detailed empirical information was available neither on the amount of government financial transfers to the fishing industry nor on the financial performance of individual fishing enterprises. There is a need to collect and analyse information on the quantity and impact of government financial transfers on the economic performance of fishery enterprises with a view to reduce and rationalise the use of scarce government financial resources and to avoid that subsidies have a negative impact on fisheries resources, on the coastal environment and on trade. | | | | A more specific level includes reference to the fishing area, gear and the main target species, such as the North Sea herring purse seine fishery,Gulf of Mexico shrimp trawl fishery,southern ocean Patagonian toothfish longline fishery.While capture fisheries encompass thousands of fisheries on a global scale, they are often categorized at the level of which a fishery is managed nationally and/or regionally.The following brief descriptions provide an overview of capture fishery types. Industrial fisheriesCapital-intensive fisheries using relatively large vessels with a high degree of mechanization and that normally have advanced fish finding and navigational equipment.Such fisheries have a high production capacity and the catch per unit effort is normally relatively high. In some areas of the world industrial fisheries is synonymous with fisheries for species that are used for reduction to fishmeal and fish oil (e.g. the trawl fishery for sandeel in the North Sea).Small-scale fisheries Labour-intensive fisheries using relatively small crafts (if any) and little capital and equipment per person-on-board. These are most often family-owned; may be commercial or for subsistence; usually consume little fuel and are often equated with artisanal fisheries. Artisanal fisheriesSometimes referred to as small-scale fisheries, these are typically traditional fisheries involving fishing households (as opposed to commercial companies), using relatively small amount of capital, relatively small fishing vessels, making short fishing trips, close to shore, mainly for local consumption.In practice, definition varies between countries, e.g. from gleaning or a one-person canoe in poor developing countries, to more than 20 m. trawlers, seiners, or long-liners in developed ones. Artisanal fisheries can be subsistence or commercial fisheries, providing for local consumption or export. In general, though by no means always, they use relatively low level technology. Artisanal and industrial fisheries frequently target the same resources which may give rise to conflict. Recreational (sport) fisheriesHarvesting fish for personal use, leisure, and challenge (e.g. as opposed to profit or research). Recreational fishing does not include sale, barter or trade of all or part of the catch.Commercial fisheriesFisheries undertaken for profit and with the objective to sell the harvest on the market, through auction halls, direct contracts, or other forms of trade.Subsistence fisheriesA fishery where the fish caught are shared and consumed directly by the families and kin of the fishers rather than being bought by intermediaries and sold at the next larger market. Pure subsistence fisheries are rare as part of the products are often sold or exchanged for other goods or services.Traditional fisheriesFisheries established long ago, usually by specific communities that have developed customary patterns of rules and operations. Traditional fisheries reflect cultural traits and attitudes and may be strongly influenced by religious practices or social customs. Knowledge is transmitted between generations by word of mouth. They are usually small-scale and/or artisanal. | | | | The main cost factors are capital investment and operation costs, which can be divided in labour costs, running costs and vessel costs. The major components of labour costs are wages and other labour charges such as insurance and employer' s contributions to pensions funds. Running costs are principally composed of fuel, lubricants, cost of selling fish, harbour dues, cost of ice, food and supplies for the crew. The major elements of vessel costs are vessel and gear repair and maintenance expenses and vessel insurance. | | | | In addition, fishing operations also carry external costs which are sometimes difficult to quantify. External costs are defined as costs which are created by a fishing enterprise for others, i.e. other enterprises or society, for example through depletion of fish stocks or destruction of the coastal ecosystem. | | | | The economic and financial performance of fishing operations is generally assessed with the help of two indicators. For the assessment of the economic performance of a fishing vessel, as in the case of other economic enterprises, the ratio between net cash flow and total earnings (NCF/TE) is used. This ratio is a general indicator of economic profitability/ viability of enterprises as it shows the amount of total earnings required by a certain type of fishing vessel in order to generate a given amount of net profit. The financial performance is assessed with the help of the rate of return on investment (ROI). The ratio shows how much money needs to be invested in a fishing enterprise in order to generate a certain net profit. | | | | The economic development and performance of fishing operations is affected by various factors including fluctuations in revenue, perishability of product, falling yields i.e. catch per unit of effort, static or falling demand, unforeseen increases in the cost of key inputs and catch and effort restrictions. Theory suggests that in an open-access, unregulated fishery, the fishery will eventually end up producing at the point where total revenue equals total costs. | | | | Recent empirical information on the economics of fishing operations has been provided by a global study on the economic viability of marine capture fisheries carried out by the FAO Fisheries Department and published in the FAO Fisheries Technical Paper 421, Techno-economic performance of marine capture fisherieshttp://www.fao.org/DOCREP/004/Y2786E/Y2786E00.HTM. (The studies validate the findings of surveys carried out between 1995 and 1997 and published in FAO Fisheries Technical Paper No. 377http://www.fao.org/DOCREP/003/W9926E/W9926E00.HTM .) | | | | 1999 and 2000, FAO conducted 15 country level studies on the economic and financial performance of marine capture fisheries in close co-operation with fisheries research institutions and national fisheries administrations in selected countries in Asia, Africa, Latin America and Europe. | | | | The findings suggest that, despite fully and sometimes over-exploited fisheries resources, in most cases marine capture fisheries is an economically and financially viable undertaking, which generates sufficient revenue to cover the cost of depreciation as well as the opportunity cost of capital to generate funds for reinvestment in addition to generating employment, income and foreign exchange earnings. | | | | Of the 108 types of fishing vessels studied in 15 South American/Caribbean, European, African and Asian countries, 105 or 97 % had a positive gross cash flow and fully recovered their cost of operation. Only three types of vessels i.e. stow-nettersinChina and and semi- industrial and industrial shrimp and bottom fish trawlers in Trinidad and Tobagoshowed operational losses. When also considering the cost of capital i.e. the cost of depreciation and interest, 92 out of the 108 types of vessels or 85 % showed a net profit after deducting the cost of depreciation and interest. | | | | |
 | | | | |
|
|
1076 Topics - 5135 Related Knowledge - 2534 Members - 34 Editors |
