Ex-vessel Prices Research Articles

Quantifying the economic effects of different fishery management regimes in two otherwise similar fisheries.

In the southeast U.S., two very similar fisheries are managed by very different management regimes. In the Gulf of Mexico Reef Fish fishery, all major species are managed by individual transferable quotas (ITQs). The neighboring S. Atlantic Snapper-Grouper fishery continues to be managed by traditional regulations such as vessel trip-limits and closed seasons. Using detailed landings and revenue data from logbooks together with trip-level and annual, vessel-level economic survey data, we develop financial statements for each fishery to estimate cost structures, profits, and resource rent. By comparing the two fisheries from an economic perspective, we illustrate the detrimental effects of the regulatory measures on the S. Atlantic Snapper-Grouper fishery and quantify the difference in economic outcomes, including estimating the difference in resource rent. We find that the choice of fishery management regime shows up as a regime shift in the productivity and profitability of the fisheries. The ITQ fishery generates substantially more resource rents than the traditionally managed fishery; the difference is a large fraction of revenue (~30%). In the S. Atlantic Snapper-Grouper fishery, the potential value of the resource has almost completely dissipated via lower ex-vessel prices and hundreds of thousands of gallons of wasted fuel. Excess use of labor is a lesser issue.

Costly crustaceans: A hedonic price analysis of the Florida stone crab

The stone crab (Menippe mercenaria and Menippe adina) fishery is the second most valuable commercial fishery in the state of Florida, with $30 million in dockside annual landings in 2019, It is a unique fishery in that only the claws are harvested, and the crab is returned to the sea where a high portion of them survive. There is substantial variability in the ex-vessel prices paid to fishers for stone crab claws, with claws yielding from $5 to over $30 per pound. However, there is limited knowledge with respect to what influences the prices of this valuable seafood product. Hedonic models allowed us to estimate the effect that different product attributes of a harvested stone crab claw have on the price. Here, we used commercial landings data from 2009 to 2020 to investigate the impact of attributes including claw size, county landed, fishing year, month, and area fished (inshore or offshore). The premiums associated with these attributes are highly variable with the largest premiums based on claw size followed by county landed, with south Florida and the Keys having higher price premiums than northwest Florida. There was interannual variation for the month attribute, with the middle of the fishing year having the highest price (January, February) and the lowest was placed on the start and end of each fishing year (October, November, May). These results provide basic economic information and regional insights into one of the most valuable fisheries in Florida and the Gulf of Mexico, and can help inform managers and stakeholders on the balance between profitability and sustainability of this unique fishery.

Sharing in the commons: Evaluating the pooling system in a Danish seine fishery in Japan

This paper examines an extreme voluntary cooperation institution called ‘pooling system’ which is designed to manage the Danish seine fishery in the Muroran region, Hokkaido, Japan. This institution requires all vessels to fish together and to share the revenue. This paper examines the historical context in which this unique management was established, details of current management practices, and their impact on the ex-vessel price and productivity of the fishery. Using a difference-in-differences design, we show that the pooling system raised the price of walleye pollock (Gadus chalcogrammus), the main target species, by around 24%, while it also raised the total landings per net by around 25%. The price increase is likely due to quality improvement, while the productivity increase is likely due to improved spatial allocation of fishing efforts. We argue that the existence of this unique management system for more than two decades is largely due to these large economic benefits. In addition, the small number of vessels and owners has played a major role in facilitating consensus building and discouraging shirking. Finally, the existence of a skipper with strong leadership was fundamental to the establishment of this system.

Evaluating the impact of COVID-19 on ex-vessel prices using time-series analysis

The spread of coronavirus disease 2019 (COVID-19) and subsequent lockdown measures have impacted economies and industries worldwide. The fisheries industry witnessed a sharp decline in demand and a slump in fish prices due to its dependence on the food service industry. It is important to quantitatively assess those fish species affected most and the extent of the pandemic’s impact on them, to take specific countermeasures. We propose a time-series analysis as an alternative to the current practice of using ad hoc year-on-year comparisons. Although the pandemic makes it difficult to construct a counterfactual approach due to the lack of an appropriate control group, we use time-series forecasting to simulate normal conditions using pre-pandemic data. In Tokyo, the unit price of fish species that were negatively impacted by the food services industry dropped by 12.65% to 14.64%, and by 26.08% to 28.22% after the declaration of a state of emergency. Seasonality, short weekly cycles, and short-term market trends are factors that affect the price of fish. Species-specific impact estimates related to the COVID-19 pandemic can allow policymakers to implement recovery measures in a more targeted and effective manner. The results of our analysis can increase fishers’ and policymakers’ awareness of the usefulness of economic analyses and incentivize them to release data to establish a system to accumulate and analyze data strategically for urgent and appropriate interventions in the fisheries industry.

Sale price flexibilities of Mediterranean hake and red shrimp

The formation of ex-vessel price of two important Mediterranean fisheries products (hake and red shrimp) was studied through an inverse demand approach, using data from the Catalonia bottom trawl fishery (NW Mediterranean). In both species, the landings by commercial category (proxy for fish size) and total landings determined the daily price fetched at the auction, as summarized by the quantity and scale coefficients (“flexibilities”) derived from the inverse demand model. In general, quantity flexibilities were between −0.1 and − 0.6, indicating that a 1% increase in the landings of one category (for a given species) would reduce the average daily ex-vessel price by 0.1–0.6%. Scale flexibilities were generally lower than − 1, showing that these species tend to behave non-homothetically, especially for the large size categories. These results imply that changes to the quantities landed and the size composition of landings, resulting for instance from fisheries management measures, will affect sale prices. Simulations of sale price for scenarios of reduced landings, in line with fishing at maximum sustainable levels, showed that losses in revenue would be much less than the losses projected with constant prices. Similarly, higher landings resulting from rebuilt stocks would yield lower revenues from these stocks because of the generally negative flexibilities.

China’s fish maw demand and its implications for fisheries in source countries

The demand for fish maw (i.e., dried swim bladder) has apparently intensified during the past decades in Hong Kong and mainland China; currently, maw has similar annual import volumes but far higher mean unit values than other important seafood delicacies like shark fins and sea cucumber. Escalated demand for seafood delicacies can significantly contribute to the depletion of marine resources; yet a comprehensive understanding of maw value and the fisheries that supply it is lacking. We review available information on eight important maw-supplying species in major and largely undocumented source countries to examine the susceptibility and exposure of fisheries to the maw trade, which primarily serves Chinese demand. Comparing ex-vessel price ratios of maw to flesh (USD/kg), the overall mean price of maw can be as much as 72 times higher (range between 12:1 and 8389:1). Catch, price and export trends demonstrate that demand for maw is likely intensifying in countries already supplying it, shifting or expanding to new species, and emerging in new regions. We find that most maw-supplying species are under high fishing pressure, poorly or not protected. Those that yield the highest maw prices exhibit spawning aggregations, making them exceptionally vulnerable to overexploitation. While management interventions are needed to sustain fishery resources and capture economic benefits, their effectiveness will be challenged by the high value of maw.

International trade of Amazon fish byproducts: Threats and opportunities for coastal livelihoods

This study uses Brazil's export data for fish byproducts as a proxy for understanding trends in maw (swim bladder) trade on the Amazon coast. National exports totaled 4657.9 metric tons (t) and USD 163,476,733 from 2012 to 2020, with 21 countries or territories listed as importers and China accounting for 97% of the total volume. Annual export volumes increased from 153.2 t in 2012 to 733.4 t in 2020. Amazon states represented 95.6% of the total export volumes, which increased from 127 t in 2012 to 637 t in 2020, an increase of 398%. Maws are the main fish byproduct exploited in this region. They are considerably more expensive than flesh per unit weight of all 10 species (Sciaenidae and Ariidae) traded, with mean ex-vessel prices varying from 2 to 115 times more than the flesh. The volume of fish that is required to be harvested to produce 1 kg maw (fish:maw ratio) varies between 20 and 70 kg. The maw trade includes threatened species, and most fisheries remain under open access. Given that maw demands are rising, with new species entering the market, regulation measures should be implemented to protect vulnerable fishery resources and sustain the livelihoods of local communities.

Increasing value through gear flexibility: a case study of US west coast sablefish

This paper explores the potential economic gains of allowing additional flexibility in gear choice, within rights-based management programs. A case study of US west coast sablefish (Anoplopoma fimbria) provides an example of a commercially important species where gear-switching is currently occurring within the individual fishing quota (IFQ) program, allowing us to isolate the economic potential of gear flexibility along two important margins: size and quality. We conduct a hedonic price analysis of ex-vessel prices using panel fish ticket data and linear mixed-effect econometric models to examine the influences of gear, size, condition, fishing sector, port group, landing month, and year on the price of sablefish. We generate a counter-factual scenario that represents the IFQ fishery where the use of fixed gear is prohibited by predicting what the size composition of catch would have been if the sablefish had been caught with trawl gear. We find that the flexibility of targeting sablefish with fixed gear between 2011 and 2016 generated an annual mean 10.45% increase in total revenue, or US$1.17 million, compared with the trawl-only scenario. These results show sablefish value increases through implementing gear flexibility, which contributes to a broader conversation of allocative efficiency.

Alternative seafood marketing systems foster transformative processes in Mediterranean fisheries

Local fisheries have often limited influence on the pricing dynamics due to their low capacity of production and because they must compete with aquaculture products or imported seafood. As a response, new marketing and labelling initiatives, such as direct sale and certification of origin schemes, have emerged. In Catalonia and the Balearic Islands, over the last 15 years, these initiatives have been thriving in the interstices of the traditional marketing channels, which start at the auction as the first sale system and largely determine the ex-vessel prices. These initiatives represent a pragmatic effort to cope with the diminishing fisheries resources while adding value to the catches and helping to improve the sale prices. They are also a way to acquire larger market flexibility to face global challenges. We investigated emerging marketing and labelling initiatives by means of one discussion session, semi-structured interviews with fishers, fishmongers and other actors involved in the production, first sale and distribution of seafood. In this paper, we draw from 4 years of fieldwork in Catalonia and the Balearic Islands to investigate the history and evolution of alternative seafood marketing arrangements and why some have succeeded and others failed. The research provides an illustrative example of how fishers adapt and resist global market forces and calls into question the monopolistic structures grounded in the existing relationships between fisheries associations and middlepersons. The results of the fieldwork also highlighted the problem of adjusting catches to demand, and the conflicts of interest between the fisheries sectors, enterprises and fisheries associations.

Ex-vessel price monitoring design in small-scale fisheries: An application in Chilean fisheries

Small-scale fishery monitoring programs can provide valuable information about ex-vessel prices, which are essential for economic analyses and fisheries management. Ex-vessel prices obtained without adequate statistical support can generate inconsistent data and imprecise estimates that do not comply with quality standards that guarantee their usefulness in decision-making. We propose methodological approach for monitoring of ex-vessel prices across a wide range species and coves. In this study, an ex-vessel prices monitoring design was applied to small-scale fisheries in Chile. Our proposal includes: i) development of a sample frame, ii) adoption of a sampling design and estimators for the mean ex-vessel prices and their variance; and iii) determination of sample sizes. A sample frame of 40 species and 54 coves were selected to be monitored, representing close to 94 % of the small-scale landings. We proposed a stratified two-stage sampling design. Sample sizes of 2–5 days/month per species in each cove are suggested, with minimum limits between 3 and 10 transactions/day, in accordance with price variability. In coves where catch is transferred directly from fisher to consumer (shortened trade chains), higher and more variable prices were verified. In contrast, coves that destined their catch only to processing plants, ex-vessel prices remained relatively constant. The precision in mean ex-vessel price estimate depend largely on the number of days sampled. Data collection system used should be updated periodically, in order to capture the dynamics of the seafood trade at the landing sites and ensure precise and accurate estimates of mean ex-vessel prices. The methodological approach for price monitoring developed in this study can be used to implement or improve other ex-vessel price monitoring designs in small-scale fisheries.

Fishing methods for Atlantic cod and haddock: Quality and price versus costs

This study explores trade-offs between fish quality, fishing efficiency, costs and profitability across three different vessel groups in the Norwegian groundfish fishery, that is, vessels fishing with bottom trawls, longlines and Danish seines. The results of hedonic price analysis at the ex-vessel level of the value chain indicate substantial differences in fish quality as Atlantic cod caught with longlines obtain price premiums of 15.0 % and 12.6 % compared with bottom trawling and Danish seining, respectively, holding other variables constant. For haddock, longlining obtains a price premium of 20.0 % compared with Danish seining and 13.3 % compared with bottom trawling. However, despite better quality and prices, the costs of fishing are substantially higher for longliners than for bottom trawlers and Danish seiners, which explains the differences in profitability favoring the more technically efficient bottom trawlers and Danish seiners. Policy implications are discussed considering trade-offs between fish quality, ex-vessel prices and vessel profitability. In a highly regulated fishery such as the Norwegian groundfish fishery, with individual vessel and vessel group quotas based on historical fishing rights, policy intervention is important for optimal use of limited fish stocks but is not necessarily straightforward.

Market Impacts of a Toxic Algae Event: The Case of California Dungeness Crab

Perceptions of seafood safety are a known driver of seafood demand, and misinformation about seafood safety has generated documented welfare losses in seafood markets. Welfare losses known as avoidance costs can occur when consumers respond to imperfect information about a contamination event, perceiving a health risk from seafood consumption where one does not exist. Furthermore, contamination events can enable other indirect economic impacts in the form of welfare transfers within the seafood supply chain. Here we explore the indirect economic impacts generated by the prolonged 2015 harmful algal bloom event in California. During this event, harmful algae produced high levels of domoic acid (a neurotoxin), resulting in closures for all commercial Dungeness crab fisheries in California that lasted roughly four and a half months. To estimate the impacts of the event, we investigate whether Dungeness crab prices, both at the ex-vessel and consumer levels, were negatively impacted by the event after the closures were lifted and the crab was declared safe to eat. We find ex-vessel prices fell by at least 9.6% while consumer prices were not impacted. We put forth three competing theories to explain these outcomes and discuss the efficiency and distributional implications of each alternative.

Collective Share Quotas and the Role of Fishermen’s Organizations in Ex-Vessel Price Determination

AbstractThis article examines the collective bargaining efforts of atomized fishermen with a monopsony-like buying sector. Government allocation of collective share quotas to fishermen’s organizati...

Erratum

Previous article FreeErratumOriginal articleCatch Shares and Shoreside Processors: A Costs and Earnings Exploration into the Downstream SectorPDFPDF PLUSFull Text Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinked InRedditEmailQR Code SectionsMoreMarine Resource Economics 33(3):289–307 (2018)An error was identified in the Abstract of the following article, which appeared in MRE 33(3). This statement serves to outline the error and provide a correction, which was submitted by the lead author, Marie Guldin in June 2019.PerspectivesGuldin, M., and C. M. Anderson. 2018. “Catch Shares and Shoreside Processors: A Costs and Earnings Exploration into the Downstream Sector.” Marine Resource Economics 33(3):289–307.Please see the error, in bold, in the following original abstract.ABSTRACTAlthough processors can be a significant source of fishery-based employment and rent generation, land-based processors are often not included in analyses of fishery management impacts, generally because no data are available. This article utilizes facility-level, cost-earnings data on shoreside processors in the Pacific whiting fishery to describe behavior before and after rationalization in 2011, where 20% of the harvesting quota was allocated to processors. Predicted effects on processors centered on the potential for season lengthening to lead to increased ex-vessel prices and efficiency gains in the use of processing inputs, like labor and utilities.Data show longer seasons following rationalization, with processors paying higher ex-vessel prices as the ratio of ex-vessel to export prices fell. Estimated changes in efficiency match predictions directionally, but are not statistically significant, which may be due, in part, to the limited number of facilities and the range of other factors from which the impacts of rationalization must be disentangled.Please see the correction, in bold, in the following revised abstract.ABSTRACTAlthough processors can be a significant source of fishery-based employment and rent generation, land-based processors are often not included in analyses of fishery management impacts, generally because no data are available. This article utilizes facility-level, cost-earnings data on shoreside processors in the Pacific whiting fishery to describe behavior before and after rationalization in 2011, where 20% of the harvesting quota was allocated to processors. Predicted effects on processors centered on the potential for season lengthening to lead to increased ex-vessel prices and efficiency gains in the use of processing inputs, like labor and utilities. Data show longer seasons following rationalization with higher average ex-vessel prices, which comprise a larger share of the export price. Estimated changes in efficiency match predictions directionally, but are not statistically significant, which may be due, in part, to the limited number of facilities and the range of other factors from which the impacts of rationalization must be disentangled.The error has been corrected in the online version of this article. Previous article DetailsFiguresReferencesCited by Marine Resource Economics Volume 34, Number 3July 2019 Article DOIhttps://doi.org/10.1086/705120 Views: 187Total views on this site HistoryReceived June 22, 2019Accepted June 22, 2019Published online July 17, 2019 © 2019 MRE Foundation, Inc. All rights reserved.PDF download Crossref reports no articles citing this article.Related articlesCatch Shares and Shoreside Processors: A Costs and Earnings Exploration into the Downstream Sector23 Apr 2018Marine Resource Economics

Recreational Leasing of Alaska Commercial Halibut Quota: The Early Years of the GAF Program in Alaska

The Pacific Halibut Catch Sharing Plan formalized the process for allocating halibut between the Alaska commercial and recreational charter sectors. It included a new program intended to allow for “flexibility” through inter-sectoral trading, permitting charter operators to lease commercial halibut pounds to relax client harvest restrictions. Here we evaluate the first two years of lease market activity and participation. Participation from some commercial quota holders in the lease market suggests that the program provided beneficial flexibility; in fact, the number of transfers to the charter sector was greater than transfers within the commercial sector for some quota types. We also identified a high proportion of self-leasers. However, transfers to the charter sector were on average smaller than within-sector commercial transfers, and total poundage leased by the charter sector was low compared with commercial transfers. Usage of leased quota by the recreational charter sector enables the harvest of larger fish or additional fish, and provides flexibility in catch composition on halibut closure days. Finally, the value-per-pound may be higher in the charter sector, as commercial-to-charter transfer prices approached the commercial ex-vessel price.

Estimating fishers' net income in small-scale fisheries: Minimum wage or average wage?

Small-scale fisheries (SSFs) are complex social-ecological systems that are affected not only by biological responses to oceanographic changes but also by socio-economic conditions and market demand expressed from local to global scales. Ex-vessel prices are generally elastic and volatile from year to year or even from season to season, depending on many factors. This variability makes it difficult to keep fishers' incomes and livelihoods stable over time. Here, we use a multispecies small-scale fishery from the Ria de Arousa (NW Spain) as an example to illustrate the complexity and economic contributions of SSFs and to analyse the performance of SSFs in terms of net income per fisher. Our results show that the mean total landed value from SSFs is approximately 35 million US$·year−1, which represents almost 25% of the total annual value of Spanish SSF landings and almost 4% of the value of European Union SSF landings. Our study reveals that from 2008 to 2014, the total landed value of the fishing fleet operating in the area has decreased by 11.8 million US$·year−1, a decrease of 18.8% within the seven-year study period. The study also indicates that floating shellfisheries are by far the type of fishing gear that generates the largest total landings and landed value in the Ria de Arousa, generating a mean revenue of 19.66 million US$·year−1. The total economic weight of floating shellfisheries together with the high distribution of licenses provides license holders with year-round economic stability. The combination of the number of fishing gear selected and the number of species that generate their revenues plays an important role in shaping fishers' ability to obtain an income from SSFs. Nevertheless, high dependence on and specialisation in shellfisheries could reduce fishers' social-ecological resilience and hamper their ability to cope with uncertain natural dynamics in changing ecosystems. We find that the net income per fisher varies between 4,000 and 42,000 US$·year−1, with a mean net income per fisher of 21,800 US$·year−1. Taking into account the Spanish minimum wage, almost 40% of fishers in the study area earn at least the minimum wage, 8% earn almost double the minimum wage, and 1.4% make three times the minimum wage. From a global perspective, we found that only three out of the 33 countries analysed present fishers' net incomes that are above or almost equal to the national average wage and far above each country's minimum wage.

Ex-vessel price formation of fish species with low and irregular harvests: The case for John dory in Mie Prefecture, Japan

Ex-vessel price formation of fish species with low and irregular harvests: The case for John dory in Mie Prefecture, Japan

Catch Shares and Shoreside Processors: A Costs and Earnings Exploration into the Downstream Sector

Although processors can be a significant source of fishery-based employment and rent generation, land-based processors are often not included in analyses of fishery management impacts, generally because no data are available. This article utilizes facility-level, cost-earnings data on shoreside processors in the Pacific whiting fishery to describe behavior before and after rationalization in 2011, where 20% of the harvesting quota was allocated to processors. Predicted effects on processors centered on the potential for season lengthening to lead to increased ex-vessel prices and efficiency gains in the use of processing inputs, like labor and utilities. Data show longer seasons following rationalization, with processors paying higher ex-vessel prices as the ratio of ex-vessel to export prices fell. Estimated changes in efficiency match predictions directionally, but are not statistically significant, which may be due, in part, to the limited number of facilities and the range of other factors from which the impacts of rationalization must be disentangled.

Drivers and rates of stock assessments in the United States.

Fisheries management is most effective when based on scientific estimates of sustainable fishing rates. While some simple approaches allow estimation of harvest limits, more data-intensive stock assessments are generally required to evaluate the stock’s biomass and fishing rates relative to sustainable levels. Here we evaluate how stock characteristics relate to the rate of new assessments in the United States. Using a statistical model based on time-to-event analysis and 569 coastal marine fish and invertebrate stocks landed in commercial fisheries, we quantify the impact of region, habitat, life-history, and economic factors on the annual probability of being assessed. Although the majority of landings come from assessed stocks in all regions, less than half of the regionally-landed species currently have been assessed. As expected, our time-to-event model identified landed tonnage and ex-vessel price as the dominant factors determining increased rates of new assessments. However, we also found that after controlling for landings and price, there has been a consistent bias towards assessing larger-bodied species. A number of vulnerable groups such as rockfishes (Scorpaeniformes) and groundsharks (Carcharhiniformes) have a relatively high annual probability of being assessed after controlling for their relatively small tonnage and low price. Due to relatively low landed tonnage and price of species that are currently unassessed, our model suggests that the number of assessed stocks will increase more slowly in future decades.

Ex-vessel Fish Price Database: Disaggregating Prices for Low-Priced Species from Reduction Fisheries

Ex-vessel fish prices are essential for comprehensive fisheries management and socioeconomic analyses for fisheries science. In this paper, we reconstructed a global ex-vessel price database with the following areas of improvement: 1) compiling reported prices explicitly listed as ‘for reduction to fishmeal and fish oil’ to estimate prices separately for catches destined for fishmeal and fish oil production, and other non-direct human consumption purposes; 2) including 95% confidence limit estimates for each price estimation; and 3) increasing the number of input data and the number of price estimates to match the reconstructed Sea Around Us catch database. Our primary focus was to address this first area of improvement as ex-vessel prices for catches destined for non-direct human consumption purposes were substantially overestimated, notably in countries with large reduction fisheries. For example in Peru, 2010 landed values were estimated as 3.8 billion real 2010 USD when using separate prices for reduction fisheries, compared with 5.8 billion using previous methods with only one price for all end-products. This update of the price database has significant global and country-specific impacts on fisheries price and landed value trends over time.