Harvesting costs and revenues: Implication of the performance of open-access industrial fishing fleets off Rio Grande, Brazil. (July 2018)

• Record Type: Journal Article
• Authors: Rodrigues, Amanda Ricci; Abdallah, Patrízia Raggi; Gasalla, Maria A.
• Is Part Of: Marine policy. Volume 93(2018)
• Page Start: 104
• Page End: 112
• Publication Date: 2018-07
• Subjects: Financial performance -- Fishing subsidy -- Economic indicators -- Fisheries -- Multi-fleet approach -- Operational cost; Marine resources -- Economic aspects -- Periodicals; Fisheries -- Periodicals; Ressources marines -- Aspect économique -- Périodiques; Pêches -- Périodiques; Fisheries; Marine resources -- Economic aspects; Periodicals; 333.916405
• DOI: 10.1016/j.marpol.2018.04.008
• Languages: English
• ISSNs: 0308-597X

Abstract

Abstract: In order to assess the performance of major commercial fleets, key factors affecting fishing costs and revenues are provided along with a framework to standardize economic knowledge construction in data-poor fisheries, such as South Brazil's. Additionally, the effects of fuel subsidy policies on profitability were further evaluated among fleets. The unprecedented set of field survey data generated by this study revealed that fuel consumption, fish price, and catch volume were the main factors affecting profitability. Annual gross profit was positive for all fleets. Longliners showed the highest gross profit margin (29%), while single-bottom-trawlers, close to unviability, showed the lowest (0.9%). Overall, subsidies were ineffective in increasing Rio Grande fleet gross profits and may be masking poor economic performance, primarily for single-bottom-trawlers. Specific policy advice aiming to protect both economic performance and natural resources are discussed, including the importance of economic data collection and cost-benefit analysis. Highlights: Profitability and cost estimates varied among the four different fishing fleets. Longliners and pair-bottom-trawlers are profitable, but single-bottom-trawlers are not. Fuel, fish price and catch were the main factors affecting costs and gross profit. Fuel subsidies shown to be ineffective to increase profit and can mask economic performance. Profitability was positive for all open-access fleets even without fuel subsidies.