FISHERY BULLETIN: VOL. 74, NO. 1 



Vrooman and Smith's (1971) larval data provide a 

 rough measure of variation in recruitment during 

 1962-66, a recent period of population stability. 

 Comparison of their largest index of larval abun- 

 dance (63 X 10^2) with the mean value during this 

 period (48 x lO^^) indicates that values of MULT 

 apparently should not exceed 1.30. Table 8 lists 

 some representative values of SMULT(RATIO), 

 given MULT values in the range 1.05-1.20. 



Table 8. — Egg to recruit survival multipliers (SMULT) for a 

 family of three stock-recruit curves passing through the same 

 equilibrium point. A unique curve depends on the value of 

 MULT which defines parameters A and B. Each multiplier 

 corresponds to given ratio between present and equilibrium 

 biomass of the spawning stock. 



Table 9. — Costs and prices for the northern anchovy model 

 as adapted from Stadelman (1974). 



RATIO 



Curve 

 MULT 



A 



B 



1 



1.05 

 0.04762 

 0.95238 



2 



1.10 

 009091 

 090909 



3 



1 20 

 0.16667 

 0.83333 



0.10 

 0.20 

 0.30 

 0.50 

 0.75 

 1.00 

 2.00 

 3.00 



7,00 

 4.20 

 3.00 

 1 91 

 1.31 

 1.00 

 0.51 

 0.34 



5.50 

 3.67 

 2.75 

 1.83 

 1.29 

 1 00 

 0.52 

 0.35 



4.00 

 3.00 

 2.40 

 1.71 

 1.26 

 1.00 

 0.55 

 0.38 



Some Economic Content 



Costs and prices used in this study (Table 9) 

 have been adopted from among those estimated 

 by Stadelman (1974). While these values are 

 dated, particularly with respect to the price in- 

 crease experienced in 1974, they still serve to il- 

 lustrate our example applications. Following his 

 suggestion, it is assumed that landing taxes have 

 been removed, that the union has allowed fisher- 

 men to receive a guaranteed wage (rather than a 

 share), and that it also has permitted crew size to 

 be reduced on vessels equipped with power 

 drums. Such changes conceivably would permit 

 the fishery to take advantage of new technology 

 that would provide the impetus for its immediate 

 economic expansion. Moreover, it is assumed that 

 quotas have been removed. In their stead, deci- 

 sion makers allow the fishery to expand to its 

 economically optimal level, insuring however 

 that only that fleet size is used and that catch is 

 taken which supplies the optimal level of process- 

 ing capacity in the system. 



These assumptions, particularly the ones per- 

 taining to crew wages and to quotas, may not be 

 very realistic, but they do provide the basis for 

 some interesting modelling applications. Their 

 use infers that the harvesting-processing configu- 



Item 



Without 

 power drum 



With 

 power drum 



Harvesting costs: 



Annual fixed cost/vessel 

 (Depreciation, moorage, 

 property taxes, office and 

 shore expenses, insurance) 



Return on investment (15%) 



Guaranteed wages 

 (Crew and captain) 



Drum cost (Depreciation 

 and return on investment) 



Fixed cost/year 

 Fixed cosfday fished 



(Fuel and maintenance) 

 Cost/t\/IT anchovy caught 



(Net repair) 



$30,126 



24,779 

 132,000 (11) 



186,90500 

 77.75 



2.20 



$30,126 



24,779 

 84,000 (7) 



6,900 



145,805.00 

 77.75 



2.20 



Processing costs: 

 Annual fixed cost/plant 

 (Overhead, 1 5% return on 

 investment) 

 Purchase price of anchovy/MT 

 Processing cost of anchovy/IVIT 

 tVlarket pnces: 

 Fish meal/MT 

 Fish oil/N/TT 



$150,000.00 



25.00 

 5.50 



250.00 

 110.00 



rations of this study fulfill three criteria: 1) they 

 maximize net economic yields; 2) they allow for 

 payment of opportunity wages to crew members 

 and of opportunity returns^ to capital invested in 

 the system; 3) they utilize state of the art tech- 

 nology. Opportunity wages are set at a guaran- 

 teed salary of $12,000/man. Also, a 15% rate of 

 return is used to compensate an investor for his 

 loss of alternative uses of capital, for his risk, and 

 for his managerial skill. 



State of the art technology implies the use of 

 new plants and new vessels. According to the 

 above study, a new plant has only limited storage 

 capacity for raw materials, a processing capacity 

 of 20 tons/h, and conversion factors of 0.20 for 

 meal and of 0.01 for oil. By working 20 h/day, 252 

 days/yr, such a plant could process 92,000 MT of 

 anchovy annually. The above study also found 

 that a 210-ton (191-MT) purse seiner was the most 

 economically efficient harvesting unit. A new 

 vessel of this size could be equipped with a power 

 drum, which would lead to a reduction in crew 

 size (from 10 to 6 men) but not necessarily to an 

 increase in harvesting efficiency. 



Stadelman (1974) indicated that prices of fish 



^One who invests labor or capital in a particular economic 

 opportunity should at least earn that amount which might be 

 returned by his next best investment alternative. The amounts 

 that could have been earned from this second choice are 

 termed opportunity returns; i.e., opportunity wages should be 

 earned by labor and opportunity returns by capital. 



124 



