80 



VALUE ADDED 



The value added table reflects changes in the value 

 of fishery products from year to year, using measures 

 such as mark-up, value added as a percent of 

 mark-up, and sales of fishery products in each 

 sector (1). Using a model developed for Fisheries of 

 the U.S. in 1987, the value added table has been 

 updated each year to incorporate changes in the 

 annual quantity and value of landings, and in 

 imports and exports of several species. These 

 annual updates allow partial re-estimation of the 

 mark-ups, value added, and sales of each sector. 



Complete re-estimation of the annual mark-ups and 

 value added requires secondary information such as 

 average revenues and costs of operation for 

 businesses involved in the processing , wholesaling , or 

 retailing of fishery products. The revenue and cost 

 data needed to estimate mark-ups in each sector 

 are only published once every five years. In 

 addition, there is a two-year lag between the 

 collection and publication of this data. Thus, the 

 margins estimated in the value added tables from 

 1987 through 1991 are based on 1985 financial data 

 which became available in 1987. 



The 1992 value added table incorporates newly 

 available 1990 financial data, as well as 1992 

 fisheries data, to re-estimate the mark-up of fishery 

 products at each market level. Therefore, the 

 estimated 1992 mark-ups and value added 



in each sector reflect the annual change in fisheries 

 activity as well as changes in the economy as a 

 whole since 1987. 



To differentiate between the effects of changes in 

 the economy versus changes in fishing activity, the 

 1992 model was estimated using both the 1985 and 

 the 1990 financial data. The effects of the updated 

 financial data are an increase of 1 1 .8 percent in the 

 estimated 1992 total U.S. value added activity and 

 a 31.5 percent increase in estimated consumer 

 expenditures. 



Incorporation of new financial information indicates 

 that in every sector the mark-up of fishery inputs has 

 increased while the value added as a percent of 

 total mark-up has decreased. This suggests that 

 harvesters, processors, wholesalers, and retailers are 

 paying more for purchased inputs and are charging 

 more for the transformed fishery product, while not 

 paying significantly more for the components of 

 value added. 



It is anticipated that the model upon which the 

 value added table is based will be revised every five 

 years to make use of the periodic update of 

 revenue and cost data. The financial data used to 

 estimate margins and value added in the 1992 

 value added table will be used until 1997, when 

 1 995 data becomes available. 



(1) See footnotes following the value added table for definitions of these terms. 



