Challenges of Natural Resource Economics and Policy 2010 Economic Status, Performance, and Impacts of the Gulf of Mexico Shrimp Fishery in 2008 Preliminary Results Christopher Liese Jack Isaacs Alex Miller NOAA Fisheries, Southeast Louisiana Department of Gulf States Marine Fisheries Science Center Wildlife and Fisheries Fisheries Commission Challenges of Natural Resource Economics and Policy 2010 New Orleans, Louisiana May 26-28, 2010

Outline Background Two 2008 Surveys Design, Population and Sampling, Implementation Survey Results: Vessel Averages Extrapolation to the Industry Economic Impacts

Side note: Landings and Revenue

Background 1 Economic data collections few and far between Local/State; small samples; no statistical design; not repeated; hence generally not comparable Difficult population to survey (2002/04 surveys): Texas Rest of Gulf Source: Numbers derived from contractor’s progress and final reports.

Background 2 New survey approach in 2007: Minimalist approach Collect “bread and butter” annual economic data Standardized across the region Regularly and timely Mail survey Produce an Annual Report for the federally-permitted Gulf shrimp industry

Two Fleets: Inshore & “Federal”

Survey Design – Question Development

Balance sheet (point in time) Assets Liabilities Vessel and Gear (market value) Loans (outstanding amount) Equity

Cash flow statement (period of time) Incoming/Receipts Outgoing/Payments From operations Shrimp revenue Other commercial fishing revenue Non-operating Government payments Variable cost Fuel Crew (hired) Other (supplies) Fixed cost Vessel/gear related Overhead Loan payments Net cash flow (+) Note: Commercial fishing operations that generate revenue from other sources pose a problem. Practically, few such vessels exist in the Gulf shrimp fishery.

Income statement (period of time) Revenue Expenditures From operations Shrimp revenue Other commercial fishing revenue Non-operating Government payments From operations Fuel Crew (hired) Other (supplies) Owner’s labor Vessel/gear related - minus new investment Overhead Depreciation Net revenue from operations Non-operating Interest payments Profit The difference between the Cash Flow and Income statement is the focus on financial transactions in the Cash Flow vs. real economic cost in the Income statement. Costs that generate no financial flow (e.g., owner’s time) are included, and financial flows that do not represent costs are excluded (e.g., investments).

“Federal” Survey Instrument Past survey instruments and instructions are available at: http://www.sefsc.noaa.gov/shrimpecon.jsp

Technical Memos (www.sefsc.noaa.gov/shrimpecon.jsp) The tech memos are available at: http://www.sefsc.noaa.gov/shrimpecon.jsp

Two Fleets: Inshore & “Federal”

2008 Inshore Survey

Inshore Survey Instrument

Inshore Survey Instrument, cont.

Population and Sampling 17

Problems Federal Inshore Non-shrimp vessels Inactive vessels Crazy numbers Inshore Recreational boats

Survey Results: Vessel Averages 20

Vessel Characteristics (2008)

Balance Sheet (2008)

Vessel Operation (2008)

Income Statement (2008)

Extrapolation to Total Shrimp Harvesting Sector in the Gulf 25

Fishery Total – Balance Sheet

Fishery Total – Cash Flow (2008)

Total Fishery – Impacts (2008)

Ideas or Questions?

Additional Material

Standardized Results and Trends Averages for the Active Gulf Shrimp Fleet

Sampling & Response Rate 34

Vessel Characteristics 2008 results are preliminary and could change in the final report.

Balance Sheet 2008 results are preliminary and could change in the final report.

Vessel Operation Note: The financial statements are averages across vessels. This applies to the prices as well, i.e., the price the average vessel paid. This contrasts with the average price per gallon or pound that the industry paid. 2008 results are preliminary and could change in the final report.

Cash Flow Statement 2008 results are preliminary and could change in the final report.

Expenses in Percent of Total 2008 results are preliminary and could change in the final report.

Income Statement 2008 results are preliminary and could change in the final report.