James L. Anderson & Jingjie Chu. World Bank. February 4, Rome, Italy
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1 ALLFISH Partnership/ICFA James L. Anderson & Jingjie Chu World Bank February 4, Rome, Italy
2 Some Guiding Principles Commercial fishing is a business and should create sustainable positive net income and create wealth. Ecological sustainability is necessary, but not sufficient, for commercial fisheries to generate sustainable income and create wealth. sustainability is necessary for economic sustainability.
3 The Fishery Performance Indicators (FPIs) are designed to evaluate and compare the world s fisheries management systems based on their ability to generate sustainable income and create wealth in an ecologically sustainable and socially acceptable manner. Purpose
4 Note on Sustainable Fishing Certification & Ecolabels Given the substantial cost of many certification programs they are inherently biased toward rich nations. Yet much of seafood trade flows from the poor and underdeveloped to the rich The emphasis is on biological and ecosystem indicators and regulatory compliance does not address the essential objective of managing commercial fisheries to create sustainable income and wealth
5 An Example: The management of the MSC Certified Alaska salmon fishery imposes significant costs and hampers innovation, quality, and marketing. Alaska s Bristol Bay drift gillnet salmon fishery (Photograph by Bart Eaton, Source: Gunnar Knapp) 5
6 Alaska Sockeye salmon 2006 Photo: M. Gleason Sockeye salmon in a Bristol Bay gillnet at low tide Source G. Knapp Better and more consistent quality is essential for improving markets QUALITY Fundamental changes in management and fishing practices are needed 6
7 Alaska Salmon - MSC Certified The state mandates the use of inefficient boats and gear The current management system forces fishermen to race for fish The current management system discourages investment in processing and marketing. Knapp, G. Challenges and Strategies for the Alaska Salmon Industries ISER, University of Alaska, Anchorage
8 Globally the cumulative economic loss over the past three decades ranges around $US 2 trillion The Sunken Billions: The Economic Justification for Fisheries Reform. Agriculture and Rural Development, The World Bank, Washington, DC, 2008
9 Greater attention must be focused on Governance systems Economic factors
10 FPIs are Designed to Incorporate the Three Sustainabilities Necessary for Wealth Creation Ecological Sustainability Economic Sustainability Sustainability
11 Readily Available Understandable Characteristics of Indicator Components Accurate Relevant Quantifiable
12 Output Input Performance Indicators of sustainable income and the creation of wealth in an ecologically sustainable and socially acceptable manner Performance Factors that enable success or contribute to failure
13 The Fishery Performance Indicators - Outputs 62 components covering 11 dimensions: Fish Stock Health & Environmental Performance Harvest Performance Harvest Asset Performance Risk Owners, Permit Holders & Captains Crew Market Performance Processing & Support Industry Performance Post-harvest Asset Performance Processing Owners & Managers Processing Workers
14 COMPONENT DIMENSION MEASURE Ecologically Sustainable Fisheries Harvest Sector Performance Fishery Performance Indicators Outputs Fish Stock Health & Environmental Performance Harvest Performance Asset Performance Risk Owners, Permit Holders & Captains Crew Proportion of Harvest with 3 rd Party Certification Fish Stock Sustainability Index (NMFS) Percentage of Stocks Overfished Non-landings Mortality Landings Level Excess Capacity Season Length Ratio of Asset Value to Gross Earnings Total Revenue versus Historic High Asset (Permit, Quota) Value versus Historic High Borrowing Rate Relative to Risk-free Rate Source of Capital Functionality of Harvest Capital Annual Total Revenue Volatility Annual Landings Volatility Intra-annual Landings Volatility Annual Price Volatility Intra-annual Price Volatility Spatial Price Volatility Contestability & Legal Challenges Earnings Compared to National Average Earnings Fishery Wages Compared to Non-fishery Wages Social Standing of Boat Owners and Permit Holders Proportion of Nonresident Employment Earnings Compared to National Average Earnings Fishery Wages Compared to Non-fishery Wages Social Standing of Crew Proportion of Nonresident Employment Crew Experience Age Structure of Harvesters DOMINANT SUSTAINABILTY CATEGORY Ecology Ecology Ecology Ecology
15 Post Harvest Performance Fishery Performance Indicators Outputs Cont. Market Performance Processing & Support Industry Performance Asset Performance Ex-vessel Price versus Historic High Final Market Use International Trade Final Market Wealth Wholesale Price Relative to Similar Products Capacity of Firms to Export to the US & EU Ex-vessel to Wholesale Marketing Margins Yield of Processed Product Capacity Utilization Rate Product Improvement Regional Support Businesses Time to Repair Borrowing Rate Relative to Risk-free Rate Source of Capital Age of Facilities Earnings Compared to National Average Earnings Processing Owners & Managers Processing Workers Manager Wages Compared to Non-fishery Wages Social Standing of Processing Managers Nonresident Ownership of Processing Capacity Earnings Compared to National Average Earnings Worker Wages Compared to Non-fishery Wages Social Standing of Processing Workers Proportion of Nonresident Employment Worker Experience
16 The Fishery Performance Factors: Inputs 45 components covering 8 dimensions: Macro Factors-Environmental, Economic & Access Rights Harvest Rights Collection Action Management Inputs Management Participation Markets and Market Institutions Infrastructure
17 Fishery Performance Factors Inputs (Enabling Wealth Creation) Property Rights & Responsibility Management Post-harvest Macro Factors Access Harvest Collective Action Inputs Participation Markets & Market Institutions Infrastructure Environmental Performance Index (EPI) Governance Indicator Effectiveness Governance Indicator Voice & Accountability Index of Economic Freedom Gross Domestic Product (GDP) Per Capita Proportion of Harvest Managed Under Limited Access Transferability Index Security Index Durability Index Flexibility Index Exclusivity Index Proportion of Harvest Managed with Rights-based Management Transferability Index Security Index Durability Index Flexibility Index Exclusivity Index Participation in Harvester Organizations Harvester Organization Influence on Fishery Management & Access Harvester Organization Influence on Business & Marketing Management Expenditure to Value of Harvest Management Employees to Value of Harvest Management Employees per Permit Holder Research as a Proportion of Fisheries Management Budget Level of Subsidies Days in Stakeholder Meetings Industry Financial Support for Management Landings Pricing System Availability of Ex-vessel Price & Quantity Information Number of Buyers Degree of Vertical Integration Level of Tariffs Level of Non-tariff Barriers International Shipping Service Road Quality Index Technology Adoption Extension Service Reliability of Utilities/Electricity Access to Ice & Refrigeration
18 Case Studies Already Done Under Review Will Work on Alaska Salmon New England Groundfish Guyana Fisheries New England Lobster Iceland Lobster Philippine Swimming Crab Indonesia Swimming Crab Ghana Coastal Fisheries Lake Malawi Fisheries Bangladesh Inland Fisheries 18
19 Planning a workshop in North American Association of Fisheries Economists (NAAFE) Forum May 11-13, researchers Review cases studies Determine the usefulness, limitations, cost and time required to implement the FPI approach
20 Alaska Salmon Management Areas: Alaska State Waters: Southeast, Prince William Sound, Cook Inlet, Bristol Bay, Kodiak, Chignik, Alaska Peninsula, Kuskokwim and Yukon. Species: Five targeted species: Pink (or humpy) salmon Chum (or dog) salmon Sockeye (or red) salmon Coho (or silver) salmon Chinook (or king) salmon 2008: 34% of the Commercial Harvest originates from Hatcheries Source: G. Knapp
21 Alaska Salmon Principle of sustained yield, for the maximum benefit of the people of the state. In-season openings and closures to managed for target escapement Gear, vessel characteristics, area and time of fishing are strictly controlled 35 Hatcheries are used enhance the harvest No Alaska salmon stocks are considered overfished MSC Certified as Sustainable 7472 Permits (35 % harvest by non-resident)
22 New England Groundfish Management Areas: Offshore miles: Georges Bank, Gulf of Maine, Cape Cod and Southern New England/Mid-Atlantic Species: 15 - Atlantic cod, haddock, pollock, yellowtail flounder, witch flounder, windowpane flounder, American plaice, Atlantic halibut, redfish, ocean pout, wolfish, white hake, silver hake (whiting), red hake and offshore hake. Vessels: Trawlers, feet; 3 to 7 day trips Photos: J.L. Anderson
23 New England Groundfish Management: Seasonal and year-round area closures, Gear restrictions, Minimum fish size limits, Trip limits (poundage per trip) Limited access Restrictions on the number of days at sea each year < Ex-vessel $92 million Overfishing: 4 Stocks not overfished or experiencing overfishing 2 Stocks not overfished, but experiencing overfishing 2 Stocks overfished but not experiencing overfishing 10 Stocks overfished and experiencing overfishing Source: Johnston, R. and J.G. Sutinen One Last Chance: The Economic Case for a New Approach to Fisheries Management in New England. Pew Environment Group, Washington, DC.
24 Processing Workers Fish Stock & Envir. Perf Proc. Owners 3.0 Risk 2.0 Market Performance Asset Performance - Post-harvest Proc. & Support Perf. Harvest Performance Crew Asset Performance - Harvest Owners/Captains ALASKA SALMON NEW ENGLAND GROUNDFISH
25 ALASKA SALMON - FISHERY PERFORMANCE FACTORS NEW ENGLAND GROUNDFISH - FISHERY PERFORMANCE FACTORS Macro Factors 5 Harvest Rights 4 3 Management Inputs 2 1 Management Partcipation 0 Access Rights Collective Action Markets Infrastructure
26 THANK YOU!
27 Quality Better and more consistent quality is essential for improving markets Fundamental changes in management and fishing practices are needed Alaska Sockeye salmon 2006 Photo: M. Gleason Sockeye salmon in a Bristol Bay gillnet at low tide Source G. Knapp 27
28 Some Guiding Principles Commercial fishing is a business and should create sustainable positive net income and create wealth. Ecological sustainability is necessary, but not sufficient, for commercial fisheries to generate sustainable income and create wealth. sustainability is necessary for economic sustainability.
29 (1995) Over twenty (20) species including: Gillbacker Bangamary Grey Snapper Sea Trout Sharks Penaeid shrimps Seabob Whitebelly shrimp Photos: J.L. Anderson
30 Guyana Fisheries (1995) Artisanal fishery 70-80% of Harvest Eight inshore fisheries complexes Artisanal fleet: 1,300 boats 5,000 Artisanal fishermen 75 % Coop members Considerable subsistence inland fishery. Photos: J.L. Anderson
31 Guyana Fisheries (1995) Industrial fleet: 114 trawlers (21 meters in length, on average) Target Penaeid shrimps, seabob and limited finfish. Most of this industrial harvest was exported. Peeled Shrimp for Export Photo: J.L. Anderson Guyana Shrimp Trawler 1995 Photo: J.L. Anderson
32 Test Cases Alaska Salmon New England Groundfish New England Lobster Iceland Lobster Philippine Swimming Crab Indonesia Swimming Crab Ghana Coastal Fisheries Lake Malawi Fisheries Bangladesh Inland Fisheries
33 Already done New England Groundfish Alaska Salmon
34 Guyana Fisheries: Wealth-Enabling Factors
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