The expansion of operations in 1950 had necessitated invest- 

 ment in larger craft, better quality gear, and mor« costly specialized 

 equipment. As long as the boats were small, the fisherman's investment 

 in fixed assets was fairly moderate and the industry was controlled by 

 a variable cost pattern. This made it possible to adjust operations 

 relatively quickly to changes in market price. As fixed costs assumed 

 a larger role, fishing operations became more vulnerable to fluctuations 

 in the market. When prices broke in 1953 the vessel break-even point 

 moved upwards to a greater extent than if fixed costs had not increased, 

 as they had after 1950. Therefore it was necessary for the fisherman 

 to increase his catch solely to meet expenses. 



By reducing catch per unit of gear, the increase in the rate 

 of additions to the fleet only served to make a difficult situation 

 worse. 



Break-even charts (figures IV - Ul and IV - 142) for vessel 

 operations in 1953 and 195U (the data are based on an average of 38 

 identical vessels for which cost information had been obtained) graphi- 

 cally illustrate what happened to the fisherman's business during the 

 1953-195U shrimp market depression. While the average vessel with a 

 cost and price structure similar to the one shown in the figures, broke 

 even by catching U9,000 pounds in 1953, it had to increase its catch by 

 over 19,000 pounds, approximately iiO percent, in order to break even 

 in 195U. 



The impact of the price break did not affect all fishermen 

 alike. Among the most seriously affected were Florida operators, more 

 specifically, fishermen making the long Canq>eche trip. Table IX - Ul 

 shows that Carapeche production throughout the year 195U was substantially 

 below the level of the preceding year. The decline in the catches of 

 the Florida -based Carapeche craft was such that total Florida production 

 fell from 58.5 million pounds in 1953 to 50.9 million pounds in 195U. 

 This despite the fact that landings of Florida craft engaged in the 

 Tortugas fishery were higher in 195^4 than in 1953, and landings of the 

 remainder of the shrimp fleet of the State (boats unloading at upper 

 west and upper east coast ports) were about the same in both years. 



The drop in catch in the Campeche fishery is in seeming con- 

 trast with all that has been stated so far. A lowering of prices and 

 an upward movement of the break-even point, should have contributed to 

 an intensification of the efforts of fishermen. A rise in the number 

 of shrimp trawls operating in the State, from 8U6 in 1953 to 1,090 in 

 195i;, constitutes a further reason why Florida catch figures in 195b 

 should have been in excess of the preceding year. 



150 



