Economic Information 



There has been some work in the field of 

 fisheries economics during the past 25 years to 

 begin a body of data and theory concerning 

 the appHcation of economics to fisheries 

 management problems, and the impact of 

 economists on Public Law 94-265 is clear. 



However, additional economic information 

 is necessary under the new law for several 

 purposes: 



• to determine the optimum yield; 



• to project the domestic catch and capacity 

 to catch; 



. to promote efficiency in the harvest sec- 

 tor of the fishing industry; 



• to understand and manage the impact of 

 foreign fishing and imports of fish to U.S. 

 markets; 



. to determine the greatest overall benefit 

 to recreational fishing; and 



• to define fisheries on economically rele- 

 vant terms. ^i 



The following is a discussion of what infor- 

 mation is important in each of these areas: 



1) Optimum Yield. — The information base 

 of the Regional Councils must be adequate to 

 permit determination of the optimum yield. 

 The biological data which exists or can be 

 generated by existing procedures are not suffi- 

 cient alone. Economic and social data are re- 

 quired under the law. Economic data neces- 

 sary to help in determining the optimum yield 

 would include cost and returns, price projec- 

 tions and regional employment considera- 

 tions for a range of management options. 

 Whenever management plans will cause 

 variations in the quantities of fish which will 

 reach markets, price- and market-structure 

 analyses will be necessary for the people 

 whose incomes will be affected. Expenditure 



and employment data will also be required on 

 sectors of the economy, such as processing, 

 transportation, and sales outlets which have 

 strong links with the fishing industry and will 

 feel induced or secondary impacts of fisheries 

 management. 



2) Domestic Catch Projections. — How much 

 of the optimum yield will be harvested by U.S. 

 fishermen depends, to a large extent, on new 

 investments which are influenced by the 

 economic returns of fishermen. Domestic 

 catch, therefore, cannot be reliably projected 

 without a knowledge of the cost and revenue 

 relationships of the U.S. fleets. In addition to 

 the normal free-market forces which affect 

 cost and revenue, there are various domestic 

 and foreign policies which are important. 

 Among these are vessel-construction sub- 

 sidies, marketing programs, fisheries develop- 

 ment policies, and trade barriers to U.S. ex- 

 ports. 



3) Efficiency in the Harvest Sector. — Effi- 

 ciency in the harvest sector is one of the goals 

 of the various management schemes which 

 may be implemented. Consideration of effi- 

 ciency requires a formal integration of biologi- 

 cal and economic concepts and an adequate 

 data base to express concepts in quantitative 

 terms. The economic data required include 

 cost and earnings information by vessel and 

 gear type, demand relationships and potential 

 nonfishing employment and earnings oppor- 

 tunities for fishermen. 



4) Impact of Foreign Fishing and Imports. — 

 Economic information on foreign fleets is of 

 particular importance where the fish har- 

 vested affect international trade of U.S. impor- 

 ters or exporters. On the import side, fish may 



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