Slide 1
Max NielsenFOI, University of Copenhagen, Denmark
Ola FlaatenUniversity of Tromso, Norway
Staffan WaldoAgriFood Economics Centre, department of Economics, SLU, Sweden.
Paper presented at the 19th EAFE Conference, Malta, 6-8 July 2009
Socio-economic return in Nordic fisheries
Slide 2
• Purpose
• Definitions
• Model
• Cases
• The size of the socio-economic return• Current• Maximum
• Conclusions
Outline
Slide 3
Purpose
Study made for the Nordic Council and presented for the Nordic fisheries Ministers at the Faroe Islands in 2006
To focus on the Nordic fisheries in a socio-economic perspective
The purpose of fisheries management• Socio-economic return• Operational profit• Regional policies – populate remote areas and employment• Fleet structure – coastal fisheries
Focus on the socio-economic return
Slide 4
Definitions
Socio-economic return of fisheries:
A net-surplus which on a given time is left for the remuneration of capital and labour beyond what is achieved in other businesses.
Calculation:Turnover – costs (excluding for labour and capital)– costs of labour in alternative use– costs of capital in alternative useSocio-economic return
Maximum socio-economic return:
The annual maximum remuneration which in the long run is left after payment of capital and labour beyond what is achieved in other businesses
Slide 5
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Current and maximum socio-economic return
Slide 6
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Stock B
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Current and maximum socio-economic return in multi-species fisheries
Biology:
• Based on ICES ACFM advise – SSB and fishing mortality
• MSY determined by assumption as the SSB which gives the largest possible sustained yield
• Fishing mortality assumed sustainable and includes risk through recruitment -> shift curve up/down
Slide 7
Model
Socio-economic return:
Maximum socio-economic return: given DS1 = 225, 300
Economic model Biological model
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Slide 8
Cases
Individual transferable quotas in the Icelandic trawler fishery. Individual non-transferable quotas in the Norwegian coastal fishery. Days-at-sea regulation of pair-trawler fishery at the Faroe Islands. Rations regulated pelagic fishery in Sweden. Licence regulated mussel fishery in Denmark.
Slide 9
Cases
Iceland Norway Faroe Islands
Sweden Denmark
Employment 2.100 1.870 322 344 75
No. of boats 76 1.145 29 57 63
Insurance value (avr. Mio. DKK) 35 0,3 12 19 2
No. of days-at-sea (average) 267 171 244 203 203
Share of total landing value (%) 42 9 33 46 4
Landing value 2001-03 (mio. DKK) 2.543 793 302 387 133
Species CodRedfish
CodHaddock
SaitheCod
Herring Sprat
Blue mussel
Slide 10
Size of the current socio-economic return
Iceland Norway FaroeIslands
Sweden Denmark
Million. DKK 765 -176 84 12 80
Share of catch value 30% -22% 28% 3% 60%
Slide 11
The maximum socio-economic return
Methods: Bio-economic model No. of days at sea determined
Assumptions:1. Unchanged fleet structure and unchanged fishing pattern. 2. Fishing mortality today is in accordance with the precautio-
nary principle. 3. The state of stocks for stocks without biological information
follow the state of the stocks for which information is available.
4. The maximum capacity utilisation is 300/225 days.
Slide 12
The maximum socio-economic return
The socio-economic return can be over-estimated in Iceland, the Faroe Islands and Norway The socio-economic return can be increased in all cases. The relative low maximum socio-economic return in Norway reveal structural relations related to regional priorities
Iceland Norway FaroeIslands
Sweden Denmark
Increase (mio. DKK) 768 343 58 198 19
Maximum socio-economic return (mio. DKK) 1.533 167 142 210 99
Share of catch value 60% 21% 47% 53% 74%
Slide 13
The maximum socio-economic return
Fleet adjustment – reduction in no. of vessels:
Reduction in no. of vessels on 50-77%
Iceland Norway FaroeIslands
Sweden Denmark
In 2003 76 1.145 29 57 66
Reduction – stock and boats -46 -677 -12 -35 -18
Reduction – 300/225 days-at-sea per boat -3 -201 -3 -7 -15
Total reduction -49 -878 -15 -42 -33
Adjusted fleet 27 267 14 15 33
Slide 14
Conclusions
Fisheries have socio-economic potential
The size of the socio-economic return:
Positive of varying degree in 3 of 5 cases Can increase in all casesImproved fisheries management is the key – biologically and economically
