Cost structure and financial performance of marine commercial fisheries in the South Brazil Bight

Abstract

In Brazil, economic data on fisheries are generally scarce, and difficult to interpret with respect to costs and fishery viability, thus making it difficult to practice consistent policy and industrial decision-making. Financial performance was assessed, as were the key factors affecting the fishing costs and profitability of the major fisheries fleets that operated in three Southeast and South regions. Through an unprecedented set of field survey data from 160 fishing vessels obtained during 2013–2014, we provide a cost-benefit comparison between different fleets and landing sites. Three generalized additive models (GAMLSS) were explored to identify major factors affecting gross profit. Fuel consumption, vessel repairs, revenue, and volume of catch were the most statistically significant factors explaining gross profit margin. For trawlers and purse-seiners, technical features such as vessel size and the number of fishing trips explained profitability, respectively, while the landing costs were significant to both types of fleet. Gross profits for trawlers also depend on ice cost and fleet type. Large pelagic fisheries showed the highest gross profit, while shrimp-trawlers, bottom-gillnetters and a purse-seining fleet showed the lowest profit, close to unviability. Indirectly, population size of target species may be influencing profitability. Labor wages increase when the financial performance of fleets improve; however, reduced yields and high operational cost levels may decrease the salaries. Specific policy advice and management strategies aiming to protect both financial performance and natural resources are highlighted, including the importance of cost-benefit analysis to help businessmen and vessel owners to identify factors that influence fleet profitability, thereby facilitating the creation of measures for increased efficiency. The approach presented may contribute to standardizing economic knowledge construction in data-poor fisheries, such as S/SE Brazil's and in other jurisdictions of Brazil or elsewhere.