1. Challenges of Natural Resource Economics and Policy 2010
Economic Status, Performance, and Impacts of the Gulf of Mexico Shrimp Fishery in 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

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

3. Side note: Landings and Revenue

4. 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.

5. 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

6. Two Fleets: Inshore & “Federal”

7. Survey Design – Question Development

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

9. 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.

10. 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).

11. “Federal” Survey Instrument
Past survey instruments and instructions are available at:

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

13. Two Fleets: Inshore & “Federal”

14. 2008 Inshore Survey

15. Inshore Survey Instrument

16. Inshore Survey Instrument, cont.

17. Population and Sampling17

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

20. Survey Results: Vessel Averages20

21. Vessel Characteristics (2008)

22. Balance Sheet (2008)

23. Vessel Operation (2008)

24. Income Statement (2008)

25. Extrapolation to Total Shrimp Harvesting Sector in the Gulf25

26. Fishery Total – Balance Sheet

27. Fishery Total – Cash Flow (2008)

28. Total Fishery – Impacts (2008)

29. Ideas or Questions?

32. Additional Material

33. Standardized Results and Trends Averages for the Active Gulf Shrimp Fleet

34. Sampling & Response Rate34

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

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

37. 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.

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

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

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