PILOT STUDY OF THE ECONOMIC PERFORMANCE OF
COASTAL PURSE SEINERS IN MOROCCO.
- Case of the Atlantic Center of MoroccoMorocco
CAPACITY DEVELOPMENT OF FISHERIES RESOURCE
MONITORING FOR SUSTAINABLE MANAGEMENT OF SMALL
PELAGIC RESOURCES IN THE KINGDOM OF MOROCCO.
-SOCIO-ECONOMY OF SMALL PELAGIC FISHERY IN MOROCCO-
Abdelkabir KAMILI*, Amale LAABDI*, Abdelhak LAHNIN*, Hamid CHFIRI*
Gakushi ISHIMURA***, Tadanori FUJINO**, Naoki TOJO**, Kazushi MIYASHITA***, Anwar TALIBI****
* Agadir
Regional Centre of INRH, Morocco.
**Japan International Cooperation Agency (JICA).
*** Hokkaido University, JAPAN.; ****Assistant to the INRH-JICA project.
Abdelkabir KAMILI ; Fisheries economist.
Questions and views welcome to:
kamili_s@yahoo.fr
INTRODUCTION.
Small pelagic fishing is one of the fishing activities, socio-economically important in Morocco. It represents, in 2010, approximately 80% of the
total landing weight which corresponds around 1.9 billion MAD (0.17 billion €) . Also, this fishery largely contributes to employment,
trade, transportation and processing industry. Thus, sustainable development of this fishing sector is aimed as part of national vision (Halieutis
strategy launched by the Moroccan government in 2010). To develop an effective policy and to evaluate the impact of the current measures based
on the national vision, socio-economic survey and analysis is one of the important studies that should be conducted to contribute to this objective.
Since July 2010, a capacity development project for fisheries resource monitoring of small pelagic resources has been launched by "Institut
National de Recherche Halieutique" (INRH), Morocco and Japan International Cooperation Agency (JICA). As a part of this project, we focus on
the coastal seiners in the Atlantic Center of Morocco. Coastal seiners account for 62% of the vessels number fishing small pelagic fishes and, in
2010, 96% of their landings. We analyze 128 purse seiners (19% of all coastal purse seiners operating in the Moroccan Atlantic Ocean) as an
economic system of creating wealth for the benefit of the different stakeholders. In order to analyze the economic performances of Moroccan
coastal seiners, we examine the main economic indicators by boat (employment, fishing effort, productivity, operating costs, value added, etc.).
And, based on this study, we aim to clarify the structure and composition of costs and the allocation of the generated added value.
METHODOLOGICAL APPROACH: DATA COLLECTION
STRATEGY.TYPE OF DATA
NATURE OF DATA
METHOD / POSSIBLE SOURCES OF DATA
Order of data consideration
Internal
data
OBJECTIVES .
DEFINITION OF THE STUDIED FISHERY.
FISHING AREA.
Agadir and regions. mainly areas corresponding to the sardine stock A and B.
(Atlantic coast of Morocco)
MAIN SPECIES
EXPLOITED
Sardine (Sardina pilchardus)
Mackerel (Scomber japonicus y S. scombrus)
Anchovy(Engraulis encrasicolus)
Horse mackerel (Trachurus trachurus)
Round sardinella (Sardinella aurita)
REFERENCE YEAR
2011
VESSELS AND GEAR
All purse seiners operative in coastal fishing zone predefined and using, as
fishing gear, the purse seine.
•Official statistics.
•Biological data: for an eventual
bio-economic analysis.
•Bibliography.
 Understand the mechanisms governing the dynamics of the activity
of small pelagic fishery and propose recommendations for its
management.
 Analyze the economic performance of coastal purse seiners.
seiners
 Design and examine an appropriate methodology to be applied along
the Atlantic coast of the region.
Choice of
the
variables
PROBLEMS
AND
ISSUES
•Official statistics :
- Statistics of landings.
- Data relating to the fleet :
Number of fishing units, Revenue
sharing system…
- Data relating to the boat :
Technical data, fishing effort,
production, operating costs…
- Other information : informal
circuits, market information …
•Bibliography.
Secondary
data
External
Data
Primary data
•Unavailable data: repair costs,
investments, debts…
MARKET ANALYSIS OF THE SAMPLED PURSE SEINERS PRODUCTION.
1%
fishmeal and oil
33%
SARDINELLA
Frozen
Fish
4%
Frozen Fish
5%
(WEIGHT)
(VALUE)
40%
40%
20%
20%
Figure 1. DESTINATION OF THE COASTAL
SEINERS SAMPLED PRODUCTION
FISHERMEN
(LANDING)
Informal circuit
Direct Sales:
Intermediaries
Formal circuit
Byproducts factories
Retail
(fresh consumption )
(Source : A. KAMILI, 2006. Bio-économie et gestion de la pêcherie des petits pélagiques - cas de l’Atlantique
Centre Marocain -. Master en économie et gestion des pêches. Université de Barcelone. Espagne.)
PRICE ANALYSIS
Weighted Average Price in MAD
10
Weighted Average Price in MAD
8
Baits
6.4
Freezing
5.5
Canning
4
consumption
Byproducts
2
1.8
1.5
Salting
1.1
Semi-canned
0
Anchovy
Horse mackerel
Mackerel
Sardine
Round
sardinella
Small pelagic fishes have three principal markets
which are: The fishmeal and fish oil industry
(54%), canning industry (26%) and Fresh
consumption market (16%). Over 60% of sales
value is generated through canning industry and
fresh consumption market (figure 1 & 3).
The analysis of the evolution of the coastal fleet
production, between 1983 and 2011, showed that
landings by weight are dominated by small pelagic
(85%), sardine represents alone 69%. Though,
small pelagic do not have a high commercial value
(39%) (figure 2).
If we consider the different target markets, the
average price of the same specie changes according
to its destination. Thus, for example, fish destined
to the by-products factories, are sold at lower
prices because of their low quality. In this category
of fish, we find principally sardines (0.07 €/kg) and
also anchovy, mackerel and round sardinella with
an average price of about 0.08 €/kg (figure 4).
The differences between the prices of the same
specie vary from one specie to another according to
the target market (canning, Freezing, fishmeal an
oil…). Indeed, differences in average prices for
anchovy are higher compared to those of other
species.
DESIGN OF THE SAMPLING FOR ENTIRE STUDY.
O
P
E
R
A
T
I
N
G
C
O
S
T
S
17
40
46
25
49±6
67±6
87±5
101±6
319±62
389±57
429±63
468±52
31±5
35±3
37±4
39±4
Total effort (in days)
124±43
117±46
136±31
136±28
Average age of vessels (years)
27±13
22±11
14±10
12±10
0.87±0.6
1.31±0.84
2.24±0.88
2.69±0.95
-
Sampled purse seiners
T.J.B average (Tx)
Average engine power (CV)
Average Crew
Average production (x1000Tons)
VALUES ARE EXPRESSED IN : 104 MAD (103 € ); AND : 1MAD
= 0.088€ = 0.124$.
Sales of production
Average capital of vessels
LABLOR COSTS (CREW SHARE) : (60% x
Amount to be shared in case of reported production and 50% of the
amount to be shared in case of undeclared production (FAKIRA))
-
SHIPOWNER ANNUAL COSTS:
-
SAFI
Figure 5. EVOLUTION OF THE CONTRIBUTION (IN%) TO THE
OVERALL PRODUCTION OF SMALL PELAGIC FISH AT
DIFFERENT MOROCCAN PORTS (BETWEEN 1983 AND 2011).
Number of ports
visited
Number of
boats
%
1
2
3
4
5
6
Grand total
5
30
39
42
10
2
128
4
23
30
33
8
2
100
Figure 7. DISTRIBUTION OF FISHING EFFORT BY CLASS OF TJB
76 (67)
81 (72)
58 (51)
89 (78)
166 (146)
202 (178)
35 (31)
38 (34)
26 (23)
94 (83)
113 (99)
11 (10)
20 (17)
55 (49)
56 (50)
NET BENEFITS (Π).
-0,1 (-0.09)
7 (6)
PROFITABILITY RATE (Π/capital).
-0.03%
1.7%
-
OPPORTUNITY COST.
COST
-
NET OPERATING SURPLUS
41 (36)
9.8%
42 (37)
9.2%
Figure 8. SYNTHETIC SCHEME SHOWING THE COSTS AND REVENUES OF COASTAL PURSE SEINERS
STUDIED.
The second category is related to costs borne only by the ship-owner. It includes all annual costs relating mainly to the insurances (46%) and
repairs (31
31%). The costs of this second category are taken after deducting the common costs and the share due to the crew.
ANALYSIS OF THE STRUCTURE AND AVERAGE COMPOSITION
OF COSTS AND INCOMES.
STRUCTURE OF TOTAL COSTS
SHIP-OWNER
OWNER COSTS*
12%
COMMON COSTS**
26%
Interest & taxes
3%
46%
36% 38%
31%
21%
2007
14%
4%
6%
3%
Centre Régional de l’INRH à Agadir
Tel. 05.28.82.29.42 / Fax. 05.28.82.74.15
Mailing address : Quartier Industriel, BP : 5221, CP : 80004. Agadir. Maroc.
51 (45)
46 (41)
DEPRECIATION.
1995
The spatial dynamics of boats studied is very important at the
Centre and South of the Kingdom (figure 7). In fact, according
to the socio-economic surveys, these boats have made seasonal
movements between different ports in this area following the
availability and abundance of the resource. For this, it is difficult
to attribute a particular vessel to a given port.
The sampling design at the next stage of the study along the
Atlantic coast of the region, with financial support of JICA,
should take into account these results, and the sampling rate
should be designed on the whole region. Also, the socio-economic
surveys should be conducted at several ports in order to test
whether or not there are differences between ports, particularly
in terms of operating costs. For the choice of representative
ports, we based on the importance of the landings of the coastal
seiners since 1983 (figure 5 & 6). Thus, the selected ports are:
Dakhla, Laayoune, Tan Tan, Agadir et Safi. These ports
represent about 90% of national production of small pelagic.
In Morocco, the coastal purse seine fleet consists of 915 vessels,
658 of them are registered in the Atlantic ports and 257 vessels
in the Mediterranean ports (INRH "National Report, Small
Pelagic Fish", 2012). The sampling rate proposed for the entire
study, is 40%, about 263 vessels (49% has already been achieved
through this pilot study).
39 (34)
32 (28)
CASH-FLOW
=
1989
ANALYSIS OF THE SPATIAL DYNAMICS OF THE SURVEYED BOATS.
430 (378)
130 (115)
0
Figure 6. EVOLUTION OF THE PRODUCTION OF SMALL
PELAGIC FISH BETWEEN 1983 AND 2011 IN THE
MOROCCAN PORTS.
363 (319)
104 (92)
DAKHLA
0%
205 (180)
47 (41)
2001
20%
143 (126)
32 (28)
-
100000
CASABLANCA
454 (400)
NET PREMIUM
10% Of the Gross Income
+
1983
40%
421 (370)
19 (17)
200000
SIDI IFNI
397 (349)
PART OF THE SHIPOWNER
FINANCIAL COSTS.
INCOME TAX : IR
300000
ports)
TARFAYA
349 (307)
AMOUNT TO BE SHARED
The expenses of coastal seiners can be divided into two main
categories (figure 8 & 9): The first category is the common
costs supported by the ship-owner and the crew members. It
includes all costs directly related to the fishing activity : fuel
(36%), social security levies (38%) and production taxes
(14%), etc.
400000
Reste des
ports (37
-
COMMON COSTS:
GROSS OPERATING SURPLUS
Production
500000
(tons)
HISTORY OF DEVELOPMENT OF SMALL PELAGIC FISHERY IN MOROCCO (ANALYSIS OF PRODUCTION ).
60%
Other reserved parts
CAPI (Grading desk of industrial fish)
Thus, to increase the wealth generated by the small pelagic landings, it is recommended that:
1.Encourage modernization programs:
- Of the fleet that aim to improve storage conditions on board vessels.
- Of the processing industries aiming to increase production capacity and creating new products with more value.
2.Promote the fresh consumption market, at the national level, through awareness campaigns on the importance of
the nutritional values of small pelagic fish.
80%
-
ILLEGAL SALES (also goes under the name : "FAKIRA").
SARDINE
Figure 4. WEIGHTED AVERAGE PRICE OF MAIN SPECIES OF SMALL PELAGIC
FISH ACCORDING TO THE DIFFERENT MARKETS
100%
>=95
GROSS SALES
Figure 3. COMMERCIALIZATION CIRCUIT OF SMALL PELAGICS FISH ON
THE ATLANTIC CENTER OF MOROCCO.
6
(VALUE)
"FAKIRA" (Premium
Premium for sailors):
sailors) Equivalent to the value of a part.
(Data source : ONP; 2011)
Freezing
Baits
MACKEREL
(WEIGHT)
Canning factories
Local Markets
LANDING
ANCHOVY
Figure 2. EVOLUTION OF THE PRODUCTION OF SMALL PELAGICS BY
THE MOROCCAN COASTAL FLEET (BETWEEN 1983 AND 2011)
CAPI
Exportation
HORSE
MACKEREL
0%
0%
[75-95]
=
canned fish
38%
60%
60%
Fresh
consumption
23%
[55-75]
=
16%
80%
80%
Fresh
consum
ption
canned
fish
26%
OTHER SPECIES
OTHER THAN
SMALL
PELAGICS.
=
0.3%
[35-55]
=
Fishmea
l and oil
54%
100%
100%
•Surveys by questionnaires : (Ship-owners, skippers,
fishermen, industrials…).
•Interviews : Shipyards, Mechanics, Net makers,
Accountants, banks, experts in maritime affairs,
Insurance ...
TJB Classes
Technical characteristics of the
boats sampled (value ± standard
deviation)
Semi-canned &
Salting
•ONP (Office National des pêches), MPM (ministry).
•Accountants.
•Professional, commercial and industrial associations.
•Annual Reports (ONP, MPM…)
•Private studies…
AVERAGE RESULTS OF THE SAMPLED
PURSE SEINERS BY CLASS OF TJB.
MAIN RESULTS AND DISCUSSION OF THE SOCIO-ECONOMIC
ECONOMIC STUDY OF THE BOATS SAMPLED.
Semicanned&
Salting
•INRH
2%
1%
Repairs
Premiums & Accountants fees
Insurances (Body & AT)
Taxes & administrative fees
Others
139
73
70
62
46
LABLOR COSTS
(CREW SHARE)
59%
46
46
42
39
Work on land
Regular maintenance
Food & water
Fuel
Social security levies
Taxes of production
39
* Annual operating costs supported only by the ship-owner.
ship
** Operating costs supported by both the ship-owner
ship
and the crew members.
*** In 2011 : 1MAD = 0.088€=0.124$
0.088
39
39
31
31
31
15
Annual average income of crew
members (x1000 MAD***)
In our study, vessels have
generated in average, a annual
added value of about 2 million
MAD by vessel (0.18 million €).
Their contribution to wealth
creation at national level is very
important.
However,
their
economic performance can be
influenced by:
The size since the profitability rate
is higher for large vessels (new
ships, 9.5%) compared with small
vessels (old ships, -0.03%).
The structure of operating costs,
specifically the common costs of
fuel and social levies and also the
ship-owner costs relating to
insurances and repairs.
In addition, the destinations of the
landings affect directly the
performance levels achieved.
The comparison of the average
profitability rate of the coastal
purse seiners calculated in this
study (5.17%) and the one found
by A. KAMILI in 2006 (6.13%),
based on the same calculation
methods in the same region,
showed a decline of about one
point. This decline could be
explained by the general increase
of the input prices (especially fuel
price) against nearly stable prices
of fishing products.
Figure 9.
9 STRUCTURE AND AVERAGE COMPOSITION OF COSTS AND INCOMES OF THE PURSE SEINERS STUDIED.
CONCLUSION.
CONCLUSION
The preliminary results shows that the economic performance of the coastal purse seiners is strongly related to their sales market and the size and
age of the vessel.
vessel Any renewal and modernization of the fleet are highly recommended. Alongside these recommendations desired for this fishing
segment, it is imperative to support industrial activities generating great added value (particularly canning factories) and develop the fresh
consumption market, in order to ensure the development synchronization of the small pelagic fish sector from upstream to downstream.
Note that these results are related to the region of this pilot study (Moroccan Atlantic Centre). These results allowed us to deepen our knowledge on
the small pelagic fishery. In the next phase, the verification and extrapolation of these results should be of a broader study across all ports along the
study area.
IIFET 2012
Tanzania
Visible Possibilities
The Economics of sustainable Fisheries, Aquaculture and Seafood Trade