Ex-vessel Prices Research Articles

Ecological and economic considerations in the conservation and management of the Pacific sardine (Sardinops sagax)

In this paper, we consider economic and ecological issues associated with the Pacific sardine ( Sardinops sagax ) as a commercially harvested species relative to its importance as prey for species of commercial, recreational, and ecological significance. Using economic theory and ecosystem modeling results for the California Current, we investigate whether sardines might be more valuable as forage than as commercial landings. Our analysis considers various conditions under which this would be justified. For example, ex-vessel prices of commercially important sardine predators near the high end of their respective ranges in recent years and the ex-vessel price of sardine at the low end of its respective range would favor leaving more sardine as forage fish. However, even if it were advisable to reduce the volume of the sardine fishery to leave more forage for other, more valuable species, it does not necessarily imply that the sardine fishery should be shut down altogether. Rather, our results indicate that consideration of the trade-offs is a key element of ecosystem-based fishery management.

Ex-vessel Pricing and IFQs: A Strategic Approach

In this article, intraseasonal fishing is modeled as a differential game between fishers in a total allowable catch (TAC)-regulated fishery with and without individual fishing quotas (IFQs). Heterogeneous harvest values are included by incorporating time-specific harvest costs and a cumulative-harvest effect into fishers' profit functions. I also allow for strategic interaction among fishers via ex-vessel price dynamics. The equilibrium harvest strategies of the differential games are solved numerically through the use of a genetic algorithm. It is demonstrated how different harvesting sector environments lead to varying degrees of ex-vessel price increases when IFQs are implemented. The primary result shows that possible margins for competition among fishers, other than competition for a greater share of the TAC, can exist even under IFQ management and this competition, especially when combined with noncompetitive processors, may be substantial enough to prevent sizeable rent transfers from the processing sector to the harvesting sector.

Ex-vessel Pricing and IFQs: A Strategic Approach

Abstract In this article, intraseasonal fishing is modeled as a differential game between fishers in a total allowable catch (TAC)–regulated fishery with and without individual fishing quotas (IFQs). Heterogeneous harvest values are included by incorporating time-specific harvest costs and a cumulative-harvest effect into fishers' profit functions. I also allow for strategic interaction among fishers via ex-vessel price dynamics. The equilibrium harvest strategies of the differential games are solved numerically through the use of a genetic algorithm. It is demonstrated how different harvesting sector environments lead to varying degrees of ex-vessel price increases when IFQs are implemented. The primary result shows that possible margins for competition among fishers, other than competition for a greater share of the TAC, can exist even under IFQ management and this competition, especially when combined with noncompetitive processors, may be substantial enough to prevent sizeable rent transfers from the ...

A bio-economic analysis of long term changes in the production of French fishing fleets operating in the Bay of Biscay

Selective fishing pressure on more highly valued marine living resources is one of the key factors proposed to explain changes occurring in fish communities and associated landings of commercial fisheries. The aim of this paper is to establish the nature of changes in the landings of French fishing fleets operating in the Bay of Biscay in the period 1973-2002, and whether these changes could be related to the relative economic attractiveness of different fish species. The analysis focuses on trends observed in the landings of all commercial fish species over the last three decades. It is based on data of annual quantities landed and ex-vessel prices compiled from official French landings records, and on bio-geographical descriptors of these species derived from published data. Using simple index numbers and multivariate analysis, we examined changes in total landings in terms of their volume and value, as well as changes in their composition. We show that the composition of landings significantly changed over the study period, with an increase in the proportion of pelagic species, of lower economic value. The average ex-vessel price of production by the fleets tended to decrease from the late 1980s; partly due to a cross-species drop in prices, occurring mainly after 1993, but also to the increased proportion of low-priced species in the landings. This caused a significant drop in the total gross value of production in the second half of the study period.

Technical efficiency of shrimp fishery in South Carolina, USA

The increased inflow of imported shrimp into the US has lowered shrimp prices in the marketplace and with it, ex-vessel prices received by shrimp fishermen. Proposed remedies are aimed at strategies to increase the prices received by domestic producers. This study looks into issues related to the production side by estimating the technical efficiency of South Carolina shrimp boat operators. Estimates using a stochastic production frontier method show that average efficiency is 46%. This finding has strong implications on the long-term survival and viability of the local shrimp industry as it continues to face competition from low-priced imports.

Spatial integration of freshwater fish markets in the Northern Baltic Sea area

Freshwater fish species and Baltic salmon ( Salmo salar) are important to small-scale fisheries in Finland and Sweden. The formerly local markets for these species have expanded as trade has been opened up to international competition. In this study we use cointegration analysis to test the spatial integration of freshwater fish markets in Finland and between Finland and Sweden. The analysed fish species are salmon, perch ( Perca fluviatilis), pikeperch ( Sander lucioperca), European whitefish ( Goregonus lavaretus) and pike ( Exos lucius), and the data covers ex-vessel prices from 1993 or 1995 to 2004. We found that the regional prices in Finland were cointegrated. This indicates that the prices are determined on a single market in Finland. Moreover, the study suggests that Finnish and Swedish markets in Baltic salmon, whitefish, pikeperch and perch were partially integrated, while integration of pike markets could not be found. The political implication is that an essential part of the local small-scale fisheries’ operational environment is determined outside the national borders.

Ex-Vessel Pricing and IFQs: A Strategic Approach

In this paper, intraseasonal fishing is modeled as a differential game between fishermen in a total allowable catch-regulated fishery with and without individual fishing quotas (IFQs). Heterogeneous harvest values are included by incorporating time-specific harvest costs and a stock effect into fishermen's profit functions. I also allow for strategic interaction among fishermen via ex-vessel price dynamics. The equilibrium harvest strategies of the differential games are solved numerically through the use of a genetic algorithm. I demonstrate how different harvesting sector environments lead to varying degrees of ex-vessel price increases when IFQs are implemented. The primary result shows that possible margins for competition among fishermen, beyond competition for a greater share of the total allowable catch, can still exist under IFQ management and may be substantial enough to be able to prevent sizeable rent transfers from the processing sector to the harvesting sector.

A Global Ex-vessel Fish Price Database: Construction and Applications

We describe the first effort at creating a global ex-vessel fish price database, which is required for understanding the economic behavior of participants in the world’s fisheries. We demonstrate potential applications of the database by linking it to a spatially defined catch database, which makes it possible to attach landed values to species in both time and space. This is the first database available publicly where interested members of the public, researchers and managers can easily find and access ex-vessel prices of the world’s major commercial fish species. Preliminary results indicate that the average real price of a number of species have declined between 1950 and 2002. The estimated landed value of fish globally, in year 2000 dollars, was about US$24 billion in 1950. It increased steadily to about US$90 billion in the early 1970s, reached a peak of US$100 billion at the end of the 1980s, and declined to about US$80 billion in 2000. The top 15 fishing countries cumulatively account for 79% of total real landed value, with Japan leading, even though the value of its landings has been declining.

Price linkages in Pacific tuna markets: implications for the South Pacific Tuna Treaty and the Western and Central Pacific region

A revenue-sharing arrangement is under consideration between the USA and Western and Central Pacific Island Parties. When the ex-vessel price for cannery-grade skipjack tuna is above a minimum price, Pacific Island Parties would share in the increased revenue. This arrangement would provide economic incentives to these island nations to control fishing capacity and thereby increase revenues and economic rents. This potential arrangement raises the issue of which market and species prices to use as a benchmark, Bangkok or Pago-Pago; American Samoa and skipjack or yellowfin tuna. This paper, through a time series analysis of spatial price linkages, finds price leadership for skipjack in Bangkok. Macroeconomic and regional economic implications of enhanced price stability and higher revenues in the region are also discussed.

Flexible catch-balancing policies for multispecies individual fishery quotas

In multispecies fisheries managed with individual fishery quotas, fishers targeting certain species often have insufficient quota to cover other jointly caught species. New Zealand employs a unique, dual quantity–price system to address this problem. In lieu of acquiring quota, fishers can opt to pay a fee per unit of catch known as deemed value (DV). Although designed primarily to create flexibility in catch balancing for individuals, this system can allow aggregate catches to exceed total allowable catches (TACs). The DV system reduces the likelihood that target species catches are constrained by TACs of bycatch species, but also increases the risk of overexploitation of bycatch species. Using a bioeconomic model, we evaluate the risk and efficiency of alternative DV policies in fisheries with one target and one bycatch species. Our simulations suggest that increasing DVs above ex-vessel price in response to TACs being exceeded can control risk of overexploitation without reducing overall efficiency; however, this does shift rents from owners of target species quota to owners of bycatch species quota.

An Econometric Market Model for the Pacific Halibut Fishery

The Alaska and British Columbia fishery for Pacific halibut has undergone substantial restructuring over the last decade, from a regulated open-access no-holds-barred derby that largely relied on frozen inventories to satisfy market demand, to a slow-paced individual quota-based fishery that has reorganized supply chains to deliver high-quality fresh product throughout a protracted season. We have developed a simultaneous equation model of the markets for Pacific halibut and used simulations based on our model to examine: (i) linkages between harvest and revenue; (ii) ex-vessel price and revenue-induced consequences of the Alaska IFQ program; (iii) likely ex-vessel price and revenue effects of the proposed elongation of the halibut season; and (iv) potential effects of the emergence of competing supplies from halibut aquaculture.

Derby Fisheries, Individual Quotas, and Transition in the Fish Processing Industry

Processors adapt to the pulse of landings in derby fisheries by investing in large-scale facilities capable of preserving and storing fish products. In fisheries where the pulse of landings suppresses the ability of processors to meet consumer demand for fresh product, the imposition of individual quota (IQ) systems transforms the associated fish processing industry. The cost of fresh fish processing is generally lower and more malleable than that for preserved fish, and consumers may pay a price premium for fresh product, which creates an opportunity for entry by fresh-fish processors and results in higher equilibrium ex-vessel prices. Incumbent firms are likely to experience an economic dislocation due to a diminished value of nonmalleable capital used to preserve and store fish products. Our paper generalizes and provides a modeling framework for the observed changes in the British Columbian halibut harvester/processor industry complex following the introduction of an IQ system.

Long-term population structure, mortality and modeling of a tropical multi-fleet fishery: the red grouper Epinephelus morio of the Campeche Bank, Gulf of Mexico

This paper develops a precautionary bioeconomic approach for the red grouper ( Epinephelus morio) multi-fleet fishery in the Campeche Bank, Gulf of Mexico, based on a long-term analysis covering the years 1980–2000. Population structure was estimated through commercial sampling of the three fishing fleets participating in the fishery: two Mexican (one artisanal and the other industrial) and one Cuban (industrial). Length frequency distributions (LFDs) did not show significant differences between the Mexican industrial and the Cuban fleets, but differed from those of the artisanal fishery, which targets smaller individuals. The lack of differences in the LFDs between years suggests that the population structure was stable during the last two decades. However, the instantaneous coefficient of total mortality Z, estimated through length-converted catch curves, significantly increased during the 21-year period of analysis, being in average 1.22 times higher in 2000 than in 1980. Annual estimates of yield and Z, together with unit costs of effort and ex-vessel prices, were used as inputs to build a bioeconomic yield–mortality model. A sensitivity analysis was performed under three scenarios of natural mortality M (0.16, 0.25 and 0.35 per year). The yield at maximum economic yield ( Y MEY) and the associated mortality levels Z MEY and F MEY were always the most conservative bioeconomic reference points (BRPs). The yield at maximum biological production ( Y MBP), Y MEY and mortality-related BRPs were substantially lower than those based on maximum sustainable yield (MSY), thus constituting useful target BRPs for precautionary management. The bootstrap method used for determining the uncertainty associated at BRPs, shows that the best targets BRPs were Y MEY and Y MBP, whereas MSY is confirmed as a risky and limit BRP. A simple approach to the formulation of risk-averse management strategies was explored using the percentiles of cumulative distributions of MSY, Y MBP and Y MEY estimates generated from bootstrap against Z. We conclude that the red grouper fishery at Campeche Bank is overexploited and that immediate management actions are needed to prevent stock collapse.

A comparison of yield per recruit and revenue per recruit models for the Oregon ocean shrimp, Pandalus jordani, fishery

Fishery regulations for Oregon ocean shrimp, Pandalus jordani, are designed to protect age 1 shrimp from overharvest and sustain long-term fishery benefits. Designing appropriate management regulations including minimum mesh size and season dates is complicated by the interaction of natural mortality, fishing mortality, and market factors including prices and revenues. The effects of these variables on management strategies were evaluated using yield per recruit and revenue per recruit models. The model that maximized yield indicated that an early season-opening date was optimal; however, due to size dependent ex-vessel prices, the revenue model suggested that a season-opening delay could generate higher total revenues, while decreasing total effort and total harvest. These results demonstrate that, depending on management objectives, incorporating market information may have a significant effect on selection of regulatory controls in this fishery.

Market-oriented regional fisheries management—an analysis of four fish regions in the North Atlantic

What influence do exchange methods have on ex-vessel prices and what are the potential implications for the regional management of the fisheries? This paper undertakes an empirical analysis of exchange methods and ex-vessel prices for specific demersal fish controlled for fish size and quantity in four North Atlantic regions, including Iceland, North-Norway and Scotland. The methodology consists of a comparative analysis of total average price (TAP) and Anova analysis of monthly average prices of cod and plaice landed fresh during the period 1990–1999. Scotland's auctions have the highest TAPs for the species analysed whilst the lowest TAPs are returned from contract sales in Iceland and North-Norway. Icelandic auctions and Møre–Romsdal auctions adopt intermediate positions in this price hierarchy. Price differences are still present even when correcting for factors such as legal barriers, transport costs from different geographical locations, exchange fees and seasonal variations in supplies. The implications of these findings for current and prospective systems of regional resource and coastal management are then considered and the scope and need for further study is established.

A Microeconomic Analysis of the Formation and Potential Reorganization of AFA Coops

The American Fisheries Act establishes procedures under which a group of vessels and a processing plant can form a coop, the main purpose of which is to establish a rights-based regulation program that will protect the interests of both parties. The core principles for coop formation are specified, and operating procedures which must be followed in order to obtain maximum efficiency gains are derived. How the efficiency gains are split among coop members by the choice of the ex-vessel price is demonstrated. In certain circumstances, a vessel and its harvest rights may switch coops. The effects of these shifts on efficiency are analyzed in a way that separates the effects of the vessel shift and of the transfer of production, and that specifies the conditions under which there will be net efficiency gains. Finally, it is demonstrated that the quasi-rents of all members of both coops are affected by a vessel switch. This provides a reference for understanding when a vessel will agree to a shift and the ince...

Equilibrium Prices in a Vertically Coordinated Fishery

Competition among processing firms is analyzed in a fishery that is managed under a total allowable catch constraint. Firms compete first in the ex-vessel market for round fish and then in the downstream consumer market. Nash equilibrium prices are characterized at each stage of the vertical market. When the number of processors is sufficiently large, equilibrium prices are approximately Walrasian. The ex-vessel price is close to the processor marginal valuation of the round fish and the consumer price clears the total quantity of processed fish. Implications for market structure, conduct and performance, and fisheries management policy are drawn.

Shrimp Ex-Vessel Prices Landed from the Gulf of Mexico

A 3SLS procedure is employed to analyze U.S. Gulf of Mexico shrimp ex-vessel prices by size class and import supplies using monthly time-series data for the period from 1981 to 1995. Results indicate that the U.S. Gulf of Mexico shrimp ex-vessel prices are inflexible. Own-price flexibilities range from -0.0663 to -0.1027. Primary substitutes for U.S. Gulf of Mexico shrimp are cross-size U.S. Gulf of Mexico shrimp and imported supplies from South America. Structural changes and seasonal variations are evident for U.S. Gulf of Mexico shrimp ex-vessel prices as well as import supplies.

Climate Fluctuation and Revenue Maximization in the Eastern Bering Sea Fishery for Walleye Pollock

The eastern Bering Sea fishery for walleye pollock Theragra chalcogramma yields gross exvessel revenues on the order of US$300 million. Small variations in exvessel prices, total allowable catches, or allocation of catches between seasons and among industry sectors can lead to large changes to exvessel revenues. Our estimated bioeconomic model suggests that oceanographic conditions associated with lagged temperature anomalies exert a significant influence on recruitment and have a persistent effect on total biomass. Exvessel revenues increase or decrease as a function of increased biomass, depending on market relationships and harvest policies. When harvest limits are based on constant exploitation rates, temperature anomalies affect harvester revenues with a 3–4-year lag. We used the integrated model for stochastic simulations of −3°C to +5°C temperature anomalies and 10–30% annual exploitation rates. Median recruitment increased in the simulations as a function of temperature and exploitation rate. Median spawning biomass was positively related to temperature but inversely related to exploitation rate. The frequency of recruitment failure and stock failure increased at high exploitation rates across the range of temperature anomalies examined. Although median catch was positively related to temperature and exploitation rate, so was its variance. Expected exvessel revenues were maximized along a ridge that extended from a 26–30% exploitation rate at low temperatures to a 13–16% exploitation rate at high temperatures.

Estimated Economic Impacts of Potential Policy Changes Affecting the Total Allowable Catch for Walleye Pollock

Abstract Walleye pollock Theragra chalcogramma accounts for approximately 1 of every 20 kg of world landings of fish, shellfish, and crustaceans. There has, however, been little formal market analysis of walleye pollock. In this paper, an international econometric demand and supply model is constructed and estimated for walleye pollock caught in the waters off Alaska. The Japanese market for surimi was the most important modeled factor in determining exvessel prices for Alaska pollock. Model simulations were employed to investigate potential revenue effects of changes in the total allowable catch. In the short run, policy decisions that increase harvest from 1993 levels would also increase revenues to the pollock harvesting sector. In 1993, exvessel revenues would have continued to increase until harvest levels reached 1.7 million metric tons, at which point revenues would have started to decline. Likewise, decreases in harvest from 1993 levels would have lowered exvessel revenues.