cost and earningsof fishing vessel
TRANSCRIPT
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BY JUBIYA SURESH SCHOOL OF INDUSTRIAL FISHERIES CUSAT
COST AND EARNINGS OF FISHING VESSELS
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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.
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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
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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
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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
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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
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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
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INDIAN CONTEXT………..
POSITIVE NET SURPLUSTuna long
liners,purseseiners,
trawlers
Seiners and hand liners
NEGATIVE CASHFLOW
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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
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Fishing gears in India
Trawl net Seine netGill net
Scoop net fish trapBottom trawling
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Small crafts below 40 m are vanishing from the sector??
Substantial rise in the fuel cost
Increase in the operational cost
Poor economic returns
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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
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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
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Break even point
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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
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RETURN ON INVESTMENT=(NET REVENUE/INITIAL INVESTMENT)*100
PAY BACK PERIOD=INITIAL INVESTMENT / NET PROFIT
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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
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TOTAL COST
NET OPERATING INCOME
PROFIT
FIXED COST+OPERATING
COST
FIXED COST – OPERATING COST
GROSS REVENUE – TOTAL COSTS
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CMFRI Cochin has selected cochin fisheries harbour for surveying of trawl units in 1991
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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
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Catch composition
catch
crustaceanperchescarangidscephalopod
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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
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Thankyou for
your attent
ion