LYNDE: ECONOMIC FEASIBILITY OF GROUNDFISH HARVEST 



Management Council, FO. Box 3136 DT, Anchorage, AK 

 99510, 220 p. 

 l978b. Fishery management plan and draft environmen- 

 tal impact statement for the groundfish fishery in the 

 Bering Sea Aleutian Island area. North Pacific Fishery 

 Management Council, RO. Box 3136 DT, Anchorage, AK 

 99510, 279 p. 



Smith, F. J. 



1975. The fisherman's business guide. International 

 Marine Publ. Co., Camden, Maine, 172 p. 



Sullivan, J. J., and R O. Heggelund. 



1979. Foreign investment in the U.S. fishing indus- 

 try. Lexington Books, Lexington, Mass., 185 p. 



U.S. Bureau of the census. 



1978. Statistical abstract ofthe United States: 1978. 99th 

 ed. Wash., D.C., 1057 p. 



U.S. Department of Commerce. 



1979. Fisheries of the United States, 1978. U.S. Dep. 

 Commer, NOAA, Natl. Mar Fish. Serv., Curr. Fish. Stat. 

 7800, 120 p. 



APPENDIX I. —COST DERIVATIONS AND SOURCES OF ESTIMATES 



I. A. Boat and engine routine maintenance. 7% ofthe vessel's initial value (VIV) is based on Marine 

 Economics Data Sheets ^'^"^' for bottom draggers which indicate boat and engine repairs ranging 

 from 5.1 to 11.49c (average 7.0%) of the vessel's market value. Katz and Lee^^ used a "rough 

 estimate" of 6% for crab vessels. 



B. Insurance. 2.1% of VIV for hull is a midpoint estimate based on a range of 1.7 to 2.5% (Jaeger 

 footnote 11; Katz and Lee footnote 28). 



C. Depreciation. Based on the following assumptions for vessel type 1 (Jaeger footnote 9): 



Electronics 



Engine 



Hull 



Over a SO-jo- period, assuming constant replacement costs, costs due to depreciation will be 5 x 

 $100,000 + 3 X $250,000 + $1,150,000 = $2,400,000. The yearly cost is then $80,000 which equals 

 0.0533 VIV Assuming equal cost proportions for vessel type 2 (electricity 6.7% , engine 16.7% , and 

 hull 76.6% of VIV) also yields 0.0533 VIV 



D. Association dues. From Katz and Lee (footnote 28) updated to current values based on insurance 

 cost index (U.S. Bureau ofthe Census 1978). 



E. Contingencies/Miscellaneous. From Smith. ^^ 



F. Average annual cost of financing. Assumes 80% VIV financed and amortization through equal 

 monthly payments. Financing for vessel type 1 is for 20 yr at 10% annual interest. Financing for 

 vessel type 2 is for 15 yr at 8.5% interest. Differences in interest rates are due to different times of 

 purchase. 



^'Marine Economics Data Sheets. 

 ■^''Marine Economics Data Sheets. 

 ^^Marine Economics Data Sheets. 

 ^''Marine Economics Data Sheets. 

 '^'Marine Economics Data Sheets. 

 ^*Katz, R L., and C. L. Lee. 1976. 



Seattle drag fishing business. 

 Seattle drag fishing business. 

 Seattle drag fishing business. 

 Seattle drag fishing business. 



1971a. 

 1971b. 

 1971c. 

 1971d. 



1977. Charleston dragfishingbusiness. Oregon State University Extension Sen'ice SR500-19. 

 Computing annual return to vessel investment in a fisheries economic projection model — 

 demonstration of method, based on a vessel in the Bering Sea king crab fishery. Norfish Tech. Rep. 63, 10 p. 



"Smith, F. J. 1978. Understanding and using marine economics data sheets. Oreg. State Univ. Sea Grant Spec. Rep. 500, 4 p. 



Oregon State University Extension Service SR500-9. 

 Oregon State University Extension Service SR500-10. 

 Oregon State University Extension Service SR500-11. 

 Oregon State University Extension Service SR500-12. 



313 



