Fishery economic status report

208 Pages·2007·1.73 MB·English

fi shery economic status report
abare research report 07. 19
paul newton, roslyn wood, david galeano,
simon vieira and richard perry
october 2007
abare
abareconomics.com
innovation in economics
abare
© Commonwealth of Australia 2007
This work is copyright. The Copyright Act 1968 permits fair dealing for study,
research, news reporting, criticism or review. Selected passages, tables or
diagrams may be reproduced for such purposes provided acknowledgment of the
source is included. Major extracts or the entire document may not be reproduced
by any process without the written permission of the Executive Director, ABARE.
ISSN 1037-8286
ISBN 978-1-921448-02-7
Newton, P., Wood, R., Galeano, D., Vieira, S. and Perry, R. 2007, Fishery
Economic Status Report, ABARE Report 07.19 Prepared for the Fisheries Resources
Research Fund, Canberra, October.
Australian Bureau of Agricultural and Resource Economics
GPO Box 1563 Canberra 2601
Telephone [phone] Facsimile [phone]
Internet www.abareconomics.com
ABARE is a professionally independent government economic research agency.
ABARE project 3160
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fi shery economic status » abare research report 07.19
foreword
The inaugural release of the Fishery Economic Status Report brings together
available indicators of the economic performance of each of the diverse fi sheries
managed by the Australian Fisheries Management Authority (AFMA). The indica­
tors are central to AFMA, industry and community assessments of fi sheries perform­
ance and AFMA’s performance in pursuit of its objective of maximising economic
effi ciency in fi sheries management. Many regional communities rely on fi sheries
being sustainable and profi table, and the wider community too expects Common­
wealth resources to be managed effectively over time.
This report can be used in conjunction with the Bureau of Rural Sciences Fishery
Status Reports for an indication of the biological and economic health of
Australian Government managed fi sheries.
Phillip Glyde
Executive Director
October 2007
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fi shery economic status » abare research report 07.19
acknowledgments
The authors acknowledge the contributions of Laura Hohnen, Hugh Green and
Anthea McQueen in the compilation of this report. Thanks to Dr Nick Rayns,
Mary Lack, Cathy Dichmont, Neil Garbutt, Leanna Tedesco, Brenda Dyack, Peter
Gooday, Tom Kompas and Don Gunasekera for providing valuable comments.
The authors also gratefully acknowledge the support of the Fisheries Resources
Research Fund.

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fi shery economic status » abare research report 07.19
contents
overview 1

1 introduction 9

economics of fi shery management 11

fi sheries management options 15

economic performance indicators 18

how much to spend on performance monitoring 18

harvest strategy policy 21

2 production, trade and costs 22

Commonwealth fi sheries’ production 22

exchange rates and Australian fi sheries trade 24

fuel prices and fi shing costs 28

‘Securing our Fishing Future’ adjustment package 29

3 the fi sheries 31

4 large fi sheries 32

eastern tuna and billfi sh fi shery 32

Heard Island and McDonald Island fi shery 45

northern prawn fi shery 50

southern bluefi n tuna fi shery 60

southern and eastern scalefi sh and shark fi shery 69

Torres Strait fi sheries 95

5 small fi sheries 107

Bass Strait central zone scallop fi shery 110

Coral Sea fi shery 117

Macquarie Island toothfi sh fi shery 121

Norfolk Island fi shery 125

north west slope trawl fi shery 128

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fi shery economic status » abare research report 07.19
skipjack fi shery 132

small pelagic fi shery 136

southern squid jig fi shery 140

South Tasman Rise fi shery 148

western deepwater trawl fi shery 151

western tuna and billfi sh fi shery 153

6 commercial fi shing and regional communities 160

home ports and unloading ports of Commonwealth fi sheries 160

employment in commercial fi shing, seafood processing and

seafood wholesaling 163

employment in ports servicing Commonwealth fi sheries 164

references 186

appendixes
A estimating the economic performance of

Commonwealth managed fi sheries 177

B glossary and abbreviations 181

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fi shery economic status » abare research report 07.19
boxes
1 AFMA objectives 9
2 maximum economic yield and the open access equilibrium 13
3 economic performance indicators and tools 19
4 calculating the gross value of production for the
Commonwealth southern bluefi n tuna fi shery 24
5 catches of squid in other Commonwealth fi sheries 143
6 Indian Ocean Tuna Commission 160
fi gures
1 net economic return (the difference between fi shing costs
and revenue) is maximised at MEY 13
2 real gross value of Australian fi sheries production 22
3 value of production of major Commonwealth fi sheries,
205-06 23
4 real value of Commonwealth fi sheries production and the
US–Australian exchange rate 24
5 value of Australian fi sheries exports, 2005-06 25
6 real gross value of Australian fi sheries exports 26
7 real Australian export prices for key species 26
8 real value of exports of edible fi sheries products,
by destination 26
9 Japanese exchange rate and yen price of key export
species to Japan 27
10 Australian imports of edible fi sheries products, 2005-06 27
11 real value of Australian imports of edible fi sheries products,
by source 28
12 real average retail price of diesel fuel across Australian
capital cities 29
13 volume of production – eastern tuna and billfi sh fi shery 35
14 value of production – eastern tuna and billfi sh fi shery 35
15 net economic returns – eastern tuna and billfi sh fi shery 42
16 reported catch, by species – CCAMLR subdivision
encompassing the Heard Island and McDonald Island fi shery 46
17 volume of production – northern prawn fi shery 52
18 value of production – northern prawn fi shery 52
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fi shery economic status » abare research report 07.19
19 Japan–Australia exchange rate 52

20 destination of Australian prawn exports, 2005-06 53

21 source of Australian imports of prawn products, 2005-06 53

22 net economic returns – northern prawn fi shery 58

23 volume of production – southern bluefi n tuna fi shery 62

24 value of production – southern bluefi n tuna fi shery 62

25 value of southern bluefi n tuna exports, by processing method 62

26 reported catch of southern bluefi n tuna, by nation 65

27 movement of southern bluefi n tuna around Australia,

and associated fi shing effort 66

28 volume of production – southern and eastern scalefi sh

and shark fi shery 73

29 value of production – southern and eastern scalefi sh

and shark fi shery 73

30 catch as a percentage of available TAC in the southern

and eastern scalefi sh and shark fi shery, by species in 2006 88

31 Commonwealth trawl sector – southern and eastern

scalefi sh and shark fi shery 89

32 gillnet, hook and trap sector – southern and eastern

scalefi sh and shark fi shery 89

33 number of hours trawled – Commonwealth trawl sector 90

34 cumulative sum of ITQ ownership, March 2006– southern

and eastern scalefi sh and shark fi shery 90

35 volume of production – Torres Strait fi sheries 97

36 value of production – Torres Strait fi sheries 97

37 volume of production – Torres Strait prawn fi shery 97

38 value of production – Torres Strait prawn fi shery 97

39 volume of production – Torres Strait tropical rock

lobster fi shery 98

40 value of production – Torres Strait tropical rock

lobster fi shery 98

41 net economic returns – Torres Strait prawn fi shery 105

42 total factor productivity index – Torres Strait

prawn fi shery 105

43 volume of production – Bass Strait central zone

scallop fi shery 112

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fi shery economic status » abare research report 07.19
44 value of production – Bass Strait central zone scallop
fi shery 112
45 net economic returns – Bass Strait central zone scallop
fi shery 116
46 volume of production – north west slope deepwater
trawl fi shery 129
47 value of production – north west slope trawl fi shery 129
48 volume of production – southern squid jig fi shery 142
49 value of production – southern squid jig fi shery 142
50 volume of squid production in Commonwealth fi sheries 142
51 value of squid and cuttlefi sh imports and exports 143
52 net economic returns – southern squid jig fi shery 147
53 TAC determination – South Tasman Rise fi shery 149
54 volume of production – western deepwater trawl fi shery 152
55 value of production – western deepwater trawl fi shery 152
56 volume of production – western tuna and billfi sh fi shery 154
57 value of production – western tuna and billfi sh fi shery 154
58 employment, by community 168
maps
Commonwealth fi sheries 31
1 eastern tuna and billfi sh fi shery 34
2 Heard Island and McDonald Island fi shery 45
3 northern prawn fi shery 51
4 southern bluefi n tuna fi shery 61
5 southern and eastern scalefi sh and shark fi shery 71
6 Great Australian Bight trawl, Commonwealth trawl and
east coast deepwater trawl sectors of the southern and
eastern scalefi sh and shark fi shery 72
7 gillnet, hook and trap sector of the southern and eastern
scalefi sh and shark fi shery 72
8 Torres Strait fi shery management area 96
9 Bass Strait central zone scallop fi shery 111
10 Coral Sea fi shery 118
11 Macquarie Island fi shery 122
12 Norfolk Island fi shery 126
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fi shery economic status » abare research report 07.19
13 north west slope trawl fi shery 129
14 eastern zone of the skipjack tuna fi shery 133
15 western zone of the skipjack tuna fi shery 133
16 small pelagic fi shery 137
17 southern squid jig fi shery 141
18 South Tasman Rise sector of the southern remote zone 148
19 western deepwater trawl fi shery 151
20 western tuna and billfi sh fi shery 155
tables
summary of economic performance of each Commonwealth fi shery 3
1 comparison of input and output controls 16
2 fuel costs as a percentage of total cash costs, by fi shery 29
3 competitive trigger TACs for broadbill swordfi sh, 2007
– eastern tuna and billfi sh fi shery 36
4 Eastern Tuna and Billfi sh Fishery Management Plan 2005
– excerpts relating to economic effi ciency 37
5 average fi nancial performance of vessels – eastern tuna
and billfi sh fi shery 40
6 vessels, permits, hooks and shots – eastern tuna and billfi sh
fi shery 41
7 catch limits for the 2006-07 season – Heard Island and
McDonald Island fi shery 47
8 Heard Island and McDonald Island Fishery Management
Plan 2002 – excerpts relating to economic effi ciency 47
9 latent effort – Heard Island and McDonald Island fi shery 49
10 Northern Prawn Fishery Management Plan 1995
– excerpts relating to economic effi ciency 54
11 number of vessels – northern prawn fi shery 54
12 fi nancial performance of the fl eet – northern prawn fi shery 56
13 active permits, 30 March 2006 – northern prawn fi shery 57
14 Southern Bluefi n Tuna Fishery Management Plan 1995
– excerpts relating to economic effi ciency 63
15 CCSBT annual catch allocations, 2007 to 2009 64
16 latent effort – southern bluefi n tuna fi shery 67
x