CHAPTER m 

 PRODUCTION COSTS IN SHRIMP FISHING 



ABSTRACT 



COST OF PRODUCTION DATA IN THE SOUTH ATLANTIC AND GULF 

 SHRIMP FISHERY FOR A SAMPLE OF SHRIMP CRAFT WERE SUMMARIZED SEPA- 

 RATELY FOR CRAFT IN THE VESSEL AND MOTOR BOAT CATEGORIES AS WELL AS 

 BY GEOGRAPHIC SUB-AREAS. 



THE PRINCIPAL ELEMENTS OF "TRIP" EXPENSE, I.E., ITEMS 

 WHICH ARE IN THE NATURE OF DIRECT OR VARIABLE COSTS. ARE CREW WAGES 

 FUEL, ICE, GROCERIES, AND COSTS OF PACKING AND UNLOADING WHICH ARE DE- 

 FRAYED BY THE VESSEL. "BOAT" EXPENSES-WH ICH RESEMBLE INDIRECT OR 

 FIXED COSTS— ARE REPAIR AND MAINTENANCE, FISHING GEAR' AND RTggTNG. 

 DEPRECIATION, INTEREST, AND INSURANCE COSTS. 



IN THE SAMPLE OF VESSELS FOR WHICH DATA WERE OBTAINED. 

 TRIP EXPENSES AVERAGED ABOUT THREE-FIFTHS AND BOAT EXPENSES TWO- 

 FIFTHS OF THE DOLUR OF EXPENSE. COSTS OF OPERATION OVER A THREE- 

 YEAR PERIOD SHOWED GREATER STABILITY THAN RECEIPTS FROM CATCH AS A 

 RESULT, OPERATIONS IN 1954, WHEN PRICES REMAINED DEPRESSED FOR THE 

 ENTIRE YEAR WHILE COSTS DID NOT CHANGE SUBSTANTIALLY FROM THE LEVEL 

 OF THE PRECEDING YEAR, WERE UNPROFITABLE IN THE MAJORITY OF INSTANCES 

 GROSS RECEIPTS PER POUND IN 1954 AVERAGED FROM 36.79 CENTS FOR 12 

 VESSELS IN THE ALABAMA, MISSISSIPPI, AND LOUISIANA REGION TO 47 27 

 CENTS FOR NINE VESSELS IN THE SOUTH ATLANTIC AREA; COST OF PRODUCTION 

 PER POUND— FROM 30.35 CENTS FOR THE ALABAMA, MISSISSIPPI, AND LOUISIANA 

 VESSELS TO 50.99 CENTS FOR TWO VESSELS IN WESTERN FLOR I D^. AVERAGE 

 RECEIPTS AND COSTS OF MOTOR BOAT OPERATIONS WERE GENERALLY LOWER THAN 

 THOSE OF VESSELS FISHING THE SAME AREAS. 'nlkally luwlk THAN 



CREW WAGES. THE MOST IMPORTANT SINGLE ELEMENT OF COST 

 ACCOUNTED FOR 30 TO 47 CENTS OF EVERY TRIP EXPENSE DOLLAR SPENT.' 

 FUEL COSTS, RANKING NEXT IN IMPORTANCE AMONG TRIP EXPENSES REPRE- 

 SENTED FROM 7 TO 16 PERCENT OF TOTAL EXPENSES. REPAIRS AND MAINTENANCE 

 AND VESSEL DEPRECIATION WERE THE BIGGEST BOAT EXPENSE ITEMS, ACCOUNTING 

 TOGETHER FOR AT LEAST 14 CENTS AND FOR NEARLY 25 CENTS IN SOME IN- 

 STANCES, OF EVERY EXPENSE DOLLAR. THE DISTRIBUTION OF THE MOTOR BOAT 

 COST TOTAL OVER INDIVIDUAL COMPONENTS SHOWED A SIMILAR PATTERN. 



FUEL AND ICE CONSUMPTION DATA OBTAINED FROM ANOTHER SHRIMP 

 VESSEL SAMPLE INDICATED THE FOLLOWING: «NumLK bHKIMP 



VESSELS RANGING FROM 40 TO 60 FEET IN LENGTH ON THE AVERAGE 

 CONSUMED BETWEEN 12.000 AND 15.000 GALLONS OF FUEL ANNUALLY AVERAGE 

 CONSUMPTION PER HOUR AT SEA. ACCORDING TO THE FIGURES BASED ON A 12^ 

 HOUR FISHING DAY WAS APPROXIMATELY FIVE GALLONS FOR THESE VESSELS 

 PER POUND OF SHRIMP TAKEN, FUEL CONSUMPTION AVERAGED CLOSE TO ONeI 

 THIRD OF A GALLON. THE VESSELS IN EXCESS OF 60 FEET IN LENGTH IN 

 CONTRAST, CONSUMED ON THE AVERAGE OVER 27,000 GALLONS OF FUEL ANNUALLY 

 AND AT LEAST 10 GALLONS PER HOUR AT SEA. IN TERMS OF THE NUMBER OF 

 Trpf L°L,^"""''^ ■^""^^' ^"^'- CONSUMPTION OF THeTarg[r VESSE^If eS- 

 SMALLER VESSELs'^^'^^^' "^'^ ^°^ ^'^^^'^ APPRECIABLY FROM THAT OF THE 



TOTAL ANNUAL CONSUMPTION OF ICE ON VESSELS FOR WHICH DATA 

 THM^ coI'^^mP ^^ >^^^^^^^. KNOWLES AND ASSOCIATES RANGED FROM 169.5 

 TONS FOR ONE VESSEL WITH A 7-TON HOLD CAPACITY OPERATING OUT OF 



riD^^lTv^^n^n?^""^'' ™ ^^^-^ "^°^2 ^OR ^ VESSEL WITH A 37-TON HOLD 

 nmm/ Tur'^^AMniov ?^ °^ BROWNSVILLE, TEXAS. CONSUMPTION WAS LOWEST 

 Sav Tu Jn^ JANUARY-APRIL PERIOD AND WAS HIGHEST DURING THE MONTHS OF 

 MAY THROUGH AUGUST. IN TERMS OF POUNDS OF SHRIMP CAUGHT. HOWEVER 



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