APPENDIX III APPENDIX IIT 
Harvesting capacity 
Stock depletion in the North Atlantic is directly re- 
lated to an intense buildup of fishing effort resulting in 
a harvesting level greater than stock replacement. Biolo- 
gists believe that environmental factors have also contrib- 
uted to the stock decline. In 1967 there were 89 vessels; 
in 1972 about 400. Because of this increase in vessels, 
and the decline in stocks, this fishery is considered to 
have excess harvesting capacity. The extent of this excess, 
however, has not been determined since there. is a wide 
variation in vessel size and many vessels also harvest 
other species. 
The catch per unit effort in the South Atlantic is 
quite low due to the large number of vessels. Only the high 
price of shrimp enables many vessels to operate at a profit. 
It 1S easier to enter vessels in the fishery than to re- 
move them because these capital investments have low resale 
values. Consequently, investment in vessels may have 
exceeded an optimal level. 
The shrimp harvesting capability along the Gulf coast 
appears to exceed that required to harvest the available 
resource. Shrimp landings over the last 1l years or so 
have been essentially constant. Generally, the catch per 
unit of effort has decreased which indicates more intensive 
effort for a relatively constant level of shrimp stock 
(i.e., more vessels and increased fishing power). 
Operating costs 
Increased fuel, insurance, and financing costs have 
been a major problem for fishermen. Fuel costs (diesel) 
have increased 300 to 400 percent since 1973, insurance 
rates are up dramatically--especially for wooden hulls--and 
interests rates are high. Costs of gear continue to rise. 
Equity requirements (25 percent) were high for financing 
new vessels even before all these other cost increases 
occurred. Meeting the equity requirement is now more diffi- 
cult because of the high vessel cost; $100,000 to $200,000 
and more in some cases. Credit iS a Serious problem. 
Of course, much of these costs have to be included in 
the cost of shrimp, but elasticity of market acceptance 
determines the extent to which these costs can be transferred. 
If the market prices do not rise proportional to increased 
operating costs, the return per unit of effort will decrease, 
especially considering the decreasing catch per unit of ef- 
fort; a lower value per share for the crew could result, as 
well as lesser quality and crew availability. 
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