lobsters to dollars: the economic impact of the lobster … · 2018. 3. 2. · lobsters to dollars:...
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LobsterstoDollars:TheEconomicImpactoftheLobsterDistribution
SupplyChaininMaine
MaineFishermen’sForum– Friday,March2,2018
AnnieTselikis,ExecutiveDirectorMaineLobsterDealers’Association
MichaelDonihue,ProfessorofEconomicsColbyCollege
WHATISALOBSTERDEALER?
MaineLobsterDealers• “Dealers”takelobsterandmoveitintoandthroughthesupplychain.• Thoseactivitiesmayinvolve:• Buyinglobsterfromharvestersorwharves• Trucking• Aggregatinganddistributingproduct• Longtermholding• Gradinglobsterforqualityandquantity• Addingvalueviagradingorthroughprocessing• Marketing,promotion,andsales
WHATISTHESUPPLYCHAIN?
ITISCOMPLICATED
• Whathappenswhenlobstermencomeinfromfishing?• Whatdoesthewharforco-opdowiththeproduct?• HowdoesliveboatrunlobsterbecomeA-gradequartersorB-gradehalves?Frozen4oz tailsorfreshTCKmeat?• Howdoesanyofthisproductgettocustomersandconsumersaroundtheworld?
FOCUSOFTHISSTUDY
• EconomicimpactofthewholesaledistributionsupplychaininMaine• Lobsterdealersspendbillionsofdollarseachyearpurchasinglobsters• Fromfishermen• Fromeachother
• Distributionsupplychainbeginsatthepointoflandingandendsatthecustomer
UNDERSTANDINGECONOMICIMPACT• Directeffects– allspendingandincomebythedealers(e.g.,wages&salaries,cratepurchases,spendingonbait,utilities,maintenance,andpackaging).• Indirectmultipliereffects– successiveroundsofeconomicactivityresultingfrombusiness-to-businesstransactionsrelatedtoadealer’soperations.• Inducedmultipliereffects– successiveroundsofeconomicactivityresultingfromearnedincomespendingbyadealer’semployees.• Economicoutput– valueaddedtotheMaineeconomyviathewholesaledistributionoflobsterspurchasedbydealers.• Jobssupported– thenumberofworkerswhosejobsareimpactedbythedirectspendingandrelatedmultipliereffectsofthedealernetworkinMaine.
WHATDIDWEMEASURE?
• Employmentcostsandtraining(TSA,HACCP,MSC,BRC)• Utilities(heat,fuel,water,energy,phones)• Operatingexpenses(insurance,legal,gear,equipment,marketing,taxesandfees,officeexpenses)• Contractedservices(trucking,subcontractors,etc)• Lobsterpurchases
DistributionofLobstersinMaine
• Wholesaledistributionoflobsters,likethesupplychainforjustaboutanyproduct,islargelyinvisibletocustomersandpolicymakers• Theiractivitiesinvolvegrading,packaging,processingandshipping• Nopubliclyavailabledataontheiractivities
LobstersPurchased(lbs) 120.2million Jobs
DirectEffects $187 million 740
IndirectEffects $36 million 393InducedEffects $20.6million 173
TotalImpact $244 million 1,306
• Economicfootprinthasneverbeenstudied
• 21dealersparticipatedinadetailedstudyoftheirspendingandincomefor2016
• ResultisanestimateofthetotalimpactoftheiroperationsontheMaineeconomy
EconomicImpactoftheLobsterDealerNetwork
• Anannualcontributionof$1billiontotheMaineeconomy• Supporting4,000jobsannually
LobstersPurchased(lbs) 120.2million Jobs
DirectEffects $187 million 740
IndirectEffects $36 million 393InducedEffects $20.6million 173
TotalImpact $244 million 1,306
IMPACTANALYSIS:
PARTICIPATINGMAINELOBSTERDEALERS:A.C.Inc.AtwoodLobsterBeanMaineLobsterD.B.RiceFisheriesLTDEasternTradersGarboLobsterGouldsboroEnterprisesGreenheadLobsterInlandLobsterIslandSeafood
J.P.'sShellfishMaineCoastMaineLobsterOutletMaineSeafoodVenturesReadySeafoodRockyCoastMaineLLCSeaSaltLobsterSeaviewLobsterStoningtonLobsterCo-opTaylorLobsterCompanyVinalhaven Fishermen'sCo-op
THANKYOUFUNDINGPROVIDEDBY: RESEARCHANDPROGRAM
ADMINISTRATIONBY:LobsterResearch,EducationandDevelopmentFund
LEARNMORE:Visitourwebsitewww.colby.edu/lobsters2dollars