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Technological progress and capacity estimations - Management implications for the Danish cod trawl fishery Erik Lindebo, SJFI Copenhagen, Denmark. Capacity management Baltic cod fishery Baltic cod fleet Investment & tech. progress Analysis: Dataset
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Technological progress and capacity estimations - Management implications for the Danish cod trawl fishery • Erik Lindebo, SJFI • Copenhagen, Denmark
Capacity management • Baltic cod fishery • Baltic cod fleet • Investment & tech. progress • Analysis: Dataset • Analysis: Technological progress • Analysis: DEA capacity estimates • Limitations • Management implications
Capacity management • MAGPs 1983 to present • 1990’s – Danish fleet reduced by over ¼ (GT, kW) • Strict policy and limited fleet renewal • 2000-01 expansion allowed under current MAGP targets • 23% (GT) and 26% (kW) • 19% (GT) and 29% (kW) for trawl segment
Impact of technological progress • Tech. progress allows: • Increase production level given effort or • Maintain production level whilst reducing effort • International estimates of 2-3% per annum • Paper partly based on EU study (UK, France, Holland and DK) “The impact of technological progress on fishing effort” • Danish cod trawl fishery in the Baltic Sea
Finland Norway Sweden Estonia Russia Denmark Latvia Baltic Sea Lithuania Bornholm Germany Poland
Baltic cod fishery • Cod fishery is the most valuable in Denmark • Fine balance between human and environmental factors • Winter months – high season • Eastern and Western cod stocks • ICES recommends reduction in fishing mortality • 1980-90’s has seen a boom-and-bust period • Problems expect to intensify due to stock problems in North Sea
Baltic cod fleet • Trawling vessels dominate • Mobile fleet with variable strategies • Influx of larger vessels from North Sea during boom period • Later years – smaller, flexible vessels have dominated • Managed by quota rations, mesh sizes, closed seasons etc.
Investments & tech. progress • Tightening of capacity-enhancing project investments • Renovations, electronics, fish handling, engines, safety equip. • Limited incentives since cod decline in 1992-93 • Qualitatively analysed through industry interviews and literature
Analysis: Dataset • 23 trawlers actively fishing Baltic cod (sub-fleet) • February, 1987-99 • Made specific to enable the use of cod stock (SSB) information • Directorate of Fisheries data variables such as: • Landing data (cod/other), days at sea, landing declarations, GT, kW, length, age, insurance value, homeport, fishing gear, SSB (two stocks), tech. progress dummy
Analysis: Technological progress • Undertaken by Jim Kirkley and Cathy Morrison • Standard economic analytical procedure (technical change) • Sub-fleet production was –3% per annum • Sub-fleet CPUE declined over the period • Insurance value is representative of progress • Vessels varied in extent of contribution to overall tech. progress • Sub-fleet tech. progress of 1.8% per annum
Technological change for trawling sub-fleet, 1987-99 Year to Year Mean 87-93 Mean 94-99 Cumulative 10 25 8 20 6 15 Year to Year/Mean Cumulative 4 10 2 5 0 -2 0 1990-91 1991-92 1996-97 1997-98 1998-99 1987-88 1988-89 1989-90 1992-93 1993-94 1994-95 1995-96
Analysis: DEA capacity estimates • Mathematical linear programming technique, estimating the relative efficiency of vessels • Potential capacity output given inputs • Capacity utilisation (CU)……see Table 5 on page 17 • Vessel CU range 0.52-0.92 (1987-99 average) • Sub-fleet CU 0.73 (1987-99 average) • CU scores are worse in later years • Bornholm have fewer problems with capacity • Vessels with lowest CU show greater tech. progress
Limitations • Results for 23 vessels cannot be aggregated to fleet level • No annual data to take account of flexible fishing strategies and objectives of investments • No distinction between cod and other fish landings • Impact of management regulations (quota rations) will determine investment incentives and capacity utilisation • DEA analysis • Revenue-based approach • Larger vessel sample with annual data • Tentative results due to vessel-specific and seasonal data
Management implications • Vessels with high tech. progress have low CU increased potential has not been realised due to restricted quota rations • Better CU for Bornholm vessels • Technological progress – not uniform over time and driven by fisher incentives (stock status) • Capacity problems in analysed fleet • Fishing industry acknowledges that there is overcapacity • possible capacity expansion under MAGPs (trawl segment)? • Question validity and objectives of MAGP targets