1. Economics of the West Coast Groundfish Trawl Catch Share Program Erin Steiner, Amanda Warlick, Marie Guldin, Lisa Pfeiffer, Jerry Leonard Economic and Social Science Research Program Northwest Fisheries Science Center West Coast Groundfish Quota Program Workshop Portland February 17, 2016

2. Economic Data Collection (EDC) Program Data are collected from May-September, collecting the previous year’s data All catch share participants submit annual reports EDC methods and reports were presented: SSC Econ Subcommittee – April 2013 Council, SSC, GAP, GMT – June 2013 Council, SSC, GAP, GMT – November 2014 U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 2

3. Overview High level information about the fisheries Catcher vessels First Receivers/Shorebased Processors Motherships Catcher Processors U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 3

4. Overview High level information about the fisheries Catcher vessels First Receivers/Shorebased Processors Motherships Catcher Processors U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 4

5. Definitions Whiting includes at-sea and shoreside catcher vessels Groundfish includes all non-whiting groundfish Groundfish vessels include both trawl vessels and “gear switchers” U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 5

6. TAC Utilization - whiting U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 6

7. TAC utilization – groundfish U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 7

8. TAC - high utilization U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 8

9. TAC – low utilization U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 9

10. Ex-vessel prices: whiting U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 10

11. Ex-vessel price: sablefish and petrale sole U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 11

12. Ex-vessel prices: other quota species U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 12

13. Catcher Vessels U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 13

14. Number of catcher vessels U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 14 Buyback programCatch share program 37% decrease 18% decrease

15. Number of catcher vessels U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 15 Pre catch share baseline Catch shares

16. Fleet-wide total ex-vessel revenue U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 16

17. Fleet-wide percent of total revenue U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 17

18. EDC Measures of Net Revenue Ex-vessel revenue: total paid by motherships, buyers, and Shorebased processors to vessels U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 18

19. EDC Measures of Net Revenue Variable costs – costs that vary with fishing effort U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 19

20. EDC Measures of Net Revenue Variable cost net revenue: measure of operating profitability U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 20

21. EDC Measures of Net Revenue Fixed costs – costs that do not vary with fishing effort U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 21

22. EDC Measures of Net Revenue Total cost net revenue measure of long-term profitability U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 22

23. Net revenue while fishing for whiting U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 23

24. Net revenue while fishing for whiting U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 24

25. Average variable costs for whiting U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 25

26. U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 26 Net revenue while fishing for groundfish X`

27. U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 27 Net revenue while fishing for groundfish

28. Average variable costs for groundfish U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 28

29. Groundfish net revenue by state U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 29

30. First Receivers and Shorebased Processors U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 30

31. First Receiver/Shorebased Processor Net Revenue – all species U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 31

32. First Receiver costs U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 32 excludes purchases of fish (60-70% of variable costs)

33. Production value by species U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 33

34. Catcher Processors U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 34

35. Catcher Processor Net Revenue U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 35 Average vessel (millions of 2014 $)

36. Motherships U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 36

37. Mothership Net Revenue U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 37 Average vessel (millions of 2014 $)

38. U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 38

39. Come talk to us at the poster session! U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 39 http://www.nwfsc.noaa.gov/research/divisions/fram/economic/economic_data_reports.cfm

40. Thank you to: Economic Data Collection Program Participants (vessels and processors) Pacific States Marine Fisheries Commission and PacFIN West Coast Region Office Office of Law Enforcement U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 40

41. Crab and Shrimp prices U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 41

42. Catch share vessels by fishery U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 42

43. Total ex-vessel revenue by fishery U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 43

44. Total ex-vessel revenue by fishery U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 44

45. Observer Subsidies U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 45 Total Cost (per day) Reimbursement (per day) Industry Cost (per day) Percent Reimbursed 2011 $365$325$40 90% 2012 $420$328$92 79% 2013 $420$256$164 61% 2014 $450$216$234 48% sources: pacific sates, AOI, saltwater

46. Industry portion of observer expenses U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 46

47. Observer expenses as a proportion of revenue U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 47

48. Why don’t we deduct quota costs? Quota is an asset Economic theory, quota value = variable cost net revenue Can’t estimate value of barter fish U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 48

49. Quota expenses per vessel U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 49

50. Quota expenses as a proportion of revenue U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 50

51. Total sablefish landings by gear and quota U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 51

52. U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 52 Sectors

53. Variability in net revenue per day U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 53

54. Variability in net revenue per lb of sablefish U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 54

55. ∆ Input Price: Net revenue per day fishing U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 55 Average quota price

56. Cost Recovery For FY 2014, the following contributed to the DPC for the WCR: Total cost of Shoreside: $1,877,752.00 Total cost recovery payments: $1,356,285.28 (72%) U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 56

57. Crew wage per day U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 57

58. U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 58 Costs deducted