Cost and earningsOF FISHING VESSEL

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Cost and earningsOF FISHING VESSEL

  1. 1. COST AND EARNINGS OFFISHING VESSELS BY JUBIYA SURESH SCHOOL OF INDUSTRIAL FISHERIES CUSAT
  2. 2. BACKGROUND DURING 1990’S FAO studied the viability of Worlds fishing fleets Data needed size of the fishing fleet and recorded landings Result costs exceeded incomes by substantial amounts.
  3. 3. Marine fishing industryIncludes three principal units -Traditional,motorized,mechanised unitsTraditional fishing unit: small-scale fishing using traditional methods. Crafts includes catamarans, canoes, coracle etc. Gears includes throw nets, dragnets etc. Comprises few labours ,small amount of capital.Motorized fishing unit: traditional crafts are motorized.Mechanized fishing unit: Capital intensive large scale fishing Uses highly mechanized crafts such as line boats, gill- netters, trawlers. High production capacity& catch /unit operation. MECHANIZED BOAT
  4. 4. Major findings of the study Inspite of heavily and overexploited fishery resources marine capture fishery is still economically viable Source of income and generate employment foreign exchange earnings
  5. 5. World wide trend AFRICA Drift netterssmall s Hook and line fisheries Purse seining, Small scale gill shrimp trawling netters Pole and lining NEGATIVE CASH ECONOMICALLY FLOW VIABLE
  6. 6.  ASIA Small scale gillnetters, smaller bottom pair trawlers purseseine.,bottom and NEGATIVE midwater trawlers, pair CASH FLOW trawlers,jiggers,long liners, pole and line vessels ECONOMICALLY VIABLE
  7. 7. Developed countries Developing countries  Labour cost only account Labour cost is the most for between 17 and 40% of important component total operating cost Second important is  Running and vessel costs running cost accounts for the major share
  8. 8. INDIAN CONTEXT……….. Seiners and hand liners NEGATIVE CASHFLOW POSITIVE NET SURPLUS Tuna long liners,purseseiners, trawlers
  9. 9. Fishing fleet Fishing crafts Traditional : plank built canoe, dug out, catamaran, coracles. Motorized : canoe, catamaran with outboard motors. Mechanized : trawlers, gillnetters,purse seiners ,pole & liners. There are about 2,43,939 fishing crafts for marine fishing. It includes 107448 traditional,76748 motorized traditional & 59743 mechanized boats.catamaran Motorized canoe trawler
  10. 10. Fishing gears in India Trawl net Gill net Seine netBottom trawling fish trap Scoop net
  11. 11. Small crafts below 40 m arevanishing from the sector?? Substantial rise in the fuel cost Increase in the operational cost Poor economic returns
  12. 12. ECONOMIC ANALYSISFIXED COST INTEREST ON CAPITAL DEPRECIATION COST OF CRAFT GEAR AND ENGINE FUEL CHARGES,CREW SHARES,AUCTION CHARGES FOOD ALLOWANCES ICE ANDOTHER MISCELLANEOUS VARIABLE COST EXPENDITURES
  13. 13.  EARNINGS Profit earned by the operator only if total cost less than total revenue BREAK EVEN POINT Point at which GAIN=LOSS In fishing operation is the level of output at which the revenue by fishing is exactly equal to the cost of working of output
  14. 14. Break even point
  15. 15.  TOTAL REVENUE Obtained by multiplying the number of fishing days or month with revenue per day. this revenue is multiplied by 12 to obtain revenue of the year NET PROFIT=TOTAL REVENUE-TOTAL COST GROSS PROFIT=TOTAL REVENUE-VARIABLE COST
  16. 16. RETURN ON INVESTMENT=(NET REVENUE/INITIAL INVESTMENT)*100 PAY BACK PERIOD=INITIAL INVESTMENT / NET PROFIT
  17. 17. A) initial investment Craft+gear+others Depreciation of craftB)Fixed cost ,gear ,and others+interest on capital repair andC)operating cost maintenance of craft ,gear ,and others+wages
  18. 18.  TOTAL COST FIXED COST+OPERATING COSTNET OPERATING INCOME FIXED COST – OPERATING COSTPROFIT GROSS REVENUE – TOTAL COSTS
  19. 19.  CMFRI Cochin has selected cochin fisheries harbour for surveying of trawl units in 1991
  20. 20. OUTCOME OF THE STUDY Most of the trawlers were 32 footers and operate up to 70 m depth Cost of the trawlers Rs 4 lakh Depreciation Rs 83,333
  21. 21. Catch composition catch crustacean perches carangids cephalopod
  22. 22. RETURNS Gross annual revenue of a trawl unit at cochin fisheries harbour during 1991 was Rs 8,51,085Annual net operating income 2.64 lakhs for 253 daysNet annual profit of a trawl unit Rs 67,491
  23. 23. Thankyou for yourattention

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