prices, as shown hy figure VIII - 26, followed the decline in the whole- 

 sale market in May of 1953. "Bie fact that the peak expansion of the 

 fleet coincided with the period of declining prices did not make matters 

 any easier for the fisherman. 



As long as demand remains brisk, the fi^erman can intensify 

 his effort, distribute his fixed costs over a larger catch (provided 

 resource limitations do not prevent increasing pix>duction) and thereby 

 increase his profit, without weakening the market. New operating units 

 at such times will be able to share in the general prosperity prevailing 

 in the industry. If supply is relatively inflexible, the stepped-up 

 fishing activities will manifest themselves primarily in a decline in 

 tons of shrimp caught per ton of fishing capacity engaged in the fishery 

 and in an increase in the ex-vessel price. If supply increases, the 

 change in productivity per ton will depend on the respective rates of 

 increase in supply and in fishing activity. Similarly, what happens 

 to price will be determined by the rates of growth of supply and demand. 



Trends in the shrimp industry which are typified by the above- 

 described conditions can be summarized on the basis of statistical 

 information presented in preceding chapters of this report. 



The increase in demand for shrimp is best shown by a comparison 

 of per capita consumption between prewar and postwar years. As illus- 

 trated in table VIII - 26, in 1930 the average American consumed approxi- 

 mately one-half of a pound of shrimp in edible weight, the equivalent 

 of about one pound of raw heads-on shrimp. So far, in the 1950»s per 

 capita consumption has been twice as high. 



Figure III - 38 shows that for every ton of fishing capacity 

 in the shrimp fishery an average of 6-1/2 tons of shrimp were taken in 

 1930 as well as in 191^0, as against approximately two tons in 1950, 1953, 

 and 195U. This decrease in productivity per ton of fishing capacity 

 took place during a period when supply was being substantially expanded 

 as the result of the exploitation of the new fishing grounds off the 

 Dry Tortugas and in the Gulf of Campeche. The rate of expansion of the 

 fleet, however, far outstripped the rate at which supplies were added 

 from the new grounds. 



Everything else remaining equal, the lowering of the produc- 

 tivity per ton of vessel fishing capacity affects the fisherman adversely. 

 With fixed costs distributed over a smaller output, net return is 

 inevitably diminished. Fortunately for the fisherman, the increase in 

 demand for shrimp permitted a steep rise in price since supply was unable 

 to keep pace. Figure VIH - 22 shows that the average value of a pound 

 of shrimp to the fisherman in recent years has been from seven to nine 

 times the 1930 value. In contrast, as indicated by the United States 

 Bureau of Labor Statistics price index series, the general level of 

 prices only doubled during the same period. 



Iii6 



