cost and earningsof fishing vessel

BY JUBIYA SURESH SCHOOL OF INDUSTRIAL FISHERIES CUSAT

COST AND EARNINGS OF FISHING VESSELS

BACKGROUND

DURING 1990’S FAO studied the viability of Worlds fishing fleets

Data needed size of the fishing fleet and recorded landings

Result costs exceeded incomes by substantial amounts.

Includes three principal units -

Traditional,motorized,mechanised units

Traditional fishing unit:

small-scale fishing using traditional methods.

Crafts includes catamarans, canoes, coracle etc.

Gears includes throw nets, dragnets etc.

Comprises few labours ,small amount of capital.

Motorized fishing unit: traditional crafts are motorized.

Mechanized fishing unit:

Capital intensive large scale fishing

Uses highly mechanized crafts such as line boats,

gill-netters, trawlers.

High production capacity& catch /unit operation.

MECHANIZED BOAT

Marine fishing industry

Major findings of the study Inspite of heavily and overexploited

fishery resources marine capture fishery is still economically viable

Source of income and generate employment foreign exchange earnings

World wide trend

AFRICA

small sDrift netters

Hook and line fisheries

Purse seining, shrimp trawlingPole and liningECONOMICALLY

VIABLE

Small scale gill netters

NEGATIVE CASH FLOW

ASIA

purseseine.,bottom and midwater trawlers, pair

trawlers,jiggers,long liners, pole and line

vessels

ECONOMICALLY VIABLE

Small scale gillnetters,

smaller bottom pair

trawlersNEGATIVE

CASH FLOW

Developed countries Developing countries

Labour cost is the most important component

Second important is running cost

Labour cost only account for between 17 and 40% of total operating cost

Running and vessel costs accounts for the major share

INDIAN CONTEXT………..

POSITIVE NET SURPLUSTuna long

liners,purseseiners,

trawlers

Seiners and hand liners

NEGATIVE CASHFLOW

Fishing fleet

Fishing crafts

Traditional : plank built canoe, dug out, catamaran, coracles.

Motorized : canoe, catamaran with outboard motors.

Mechanized : trawlers, gillnetters,purse seiners ,pole & liners.

There are about 2,43,939 fishing crafts for marine fishing.

It includes 107448 traditional,76748 motorized traditional & 59743 mechanized boats.

catamaran Motorized canoe trawler

Fishing gears in India

Trawl net Seine netGill net

Scoop net fish trapBottom trawling

Small crafts below 40 m are vanishing from the sector??

Substantial rise in the fuel cost

Increase in the operational cost

Poor economic returns

ECONOMIC ANALYSIS

FIXED COST

VARIABLE COST

INTEREST ON CAPITALDEPRECIATION COST OF

CRAFT GEAR AND ENGINE

FUEL CHARGES,CREW SHARES,AUCTION CHARGES FOOD

ALLOWANCES ICE AND OTHER

MISCELLANEOUS EXPENDITURES

EARNINGS Profit earned by the operator only if total cost less than total revenue BREAK EVEN POINT Point at which GAIN=LOSS In fishing operation is the

level of output at which the revenue by fishing is exactly equal to the cost of working of output

Break even point

TOTAL REVENUE Obtained by multiplying the number of fishing days or month with revenue per day. this revenue is multiplied by 12 to obtain revenue of the year

NET PROFIT=TOTAL REVENUE-TOTAL COST

GROSS PROFIT=TOTAL REVENUE-VARIABLE COST

RETURN ON INVESTMENT=(NET REVENUE/INITIAL INVESTMENT)*100

PAY BACK PERIOD=INITIAL INVESTMENT / NET PROFIT

A) initial investment

B)Fixed cost

C)operating cost

Craft+gear+others

Depreciation of craft ,gear ,and

others+interest on capital

repair and maintenance of craft ,gear ,and others+wages

TOTAL COST

NET OPERATING INCOME

PROFIT

FIXED COST+OPERATING

COST

FIXED COST – OPERATING COST

GROSS REVENUE – TOTAL COSTS

CMFRI Cochin has selected cochin fisheries harbour for surveying of trawl units in 1991

OUTCOME OF THE STUDY

Most of the trawlers were 32 footers and operate up to 70 m depth

Cost of the trawlers Rs 4 lakh Depreciation Rs

83,333

Catch composition

catch

crustaceanperchescarangidscephalopod

RETURNS

Gross annual revenue of a trawl unit at cochin fisheries harbour during 1991 was

Rs 8,51,085Annual net operating income

2.64 lakhs for

253 daysNet annual profit of a trawl unit Rs

67,491

Thankyou for

your attent

ion