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society) . For Pacific whiting these lower returns could be a 

 result of: 1) fish that are harvested when they are too small and 

 haven't grown to the "optimal level of maturity" (Sylvia and Peters 

 1991; Enriquez and Sylvia 1992) ; 2) harvesting too early in the 

 year when the post spawning condition and proximal composition 

 (levels of proteins, lipids, and moisture) of the fish may result 

 in a relatively low valued return on investment, (Peters et al. in 

 press; Morrissey, personal communication) , and; 3) harvesting too 

 early or in such large quantities that the industry must pay 

 substantial inventory costs (Sylvia and Peters 1991) . However, it 

 should be noted that the opportunity costs associated with internal 

 rates of return from the whiting fishery will vary depending on the 

 industry component (e.g., on-shore versus off-shore) and the other 

 management rules in effect. 



Topic 2: Some general findings on market and production issues and 

 management of the Pacific whiting fishery. 



The issues summarized under Topic 1 begin to illustrate the 

 potential relationships between public policy, market demand, 

 industry response to regulatory strategies, and the value of 

 product characteristics. Most of the products processed from 

 Pacific whiting are sold in global markets where prices and price 

 variability are subject to impacts by market forces exogenous to 

 the fishery (Natural Resource Consultants 1990; Sylvia, in press). 

 The one exception, however, is product quality which is partially 

 endogenous to the fishery and can be improved, controlled, and 

 promoted depending on industry strategies and fisheries regulatory 

 polices. 



This issue can be illustrated in findings from a survey conducted 

 in 1990-1991 on the importance and value of product characteristics 

 of headed and gutted (H&G) , fillets, and surimi products produced 

 from hake/whitings (Sylvia and Peters 1991, Sylvia, in press) . 

 Table 1 shows how "break-even prices" for first and second 

 receivers (respectively, wholesalers who buy from processors, and 

 firms which buy from wholesalers) , and "small" and "large" buyers 

 (large buyers have revenues greater than $10,000,000) are affected 

 by changes in characteristics of a frozen whiting fillet product 

 with the following "fixed" characteristics: shelflife of 12 months, 

 slightly off-white color, moderately firm texture, 95% uniform in 

 product attributes, "ideal" package (e.g., 5 lb frozen blocks), and 

 terms of "net 30 days". 



Supplying a 4-6 oz, skin-off fillet, 7 months a year accompanied by 

 marketing support increases market price by $.24 over the "basic" 

 product. "Large" first receivers offer $.04 less than "small" 

 first receivers in exchange for larger purchase volumes. Second 

 receivers offer approximately 2 percent more at break-even prices 

 than first receivers and pay not only a higher "base price" but 

 offer a higher absolute premium for improved attributes. 



