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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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)

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

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

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

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

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

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

Come talk to us at the poster session! U.S. Department of Commerce | National Oceanic and Atmospheric Administration | NOAA Fisheries | Page 39

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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