Cost and earningsOF FISHING VESSEL
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Transcript of 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