Can vessel buybacks pay off: An evaluation of an industry funded fishing vessel buyback

Fishing vessel and permit buyback programs have been implemented to reduce excess capacity and improve profitability in a number of fisheries around the world. These programs are generally publicly funded, but in a few cases they have been financed by loans to be paid back by the remaining fleet. In 2003, a buyback permanently removed 91 vessels and 239 fishing permits from the Pacific groundfish trawl fishery and associated corollary fisheries of Dungeness crab and pink shrimp. The buyback was financed with $10 million in public funding and a $36 million loan to be repaid over 30 years with fees on landings. In the same year, a control date was set for catch share program in the groundfish trawl fishery. When the catch share program was implemented in 2011, the permit owners that remained in the fishery after the buyback were allocated the quota shares that would otherwise have been issued to the permits bought back in 2003. Estimates of the annual profits generated by this quota are compared to the cost of servicing the buyback loan. The results provide evidence that a buyback program, when implemented in conjunction with catch shares, can enable a sustained increase in profitability for the remaining vessels sufficient to justify its cost. However, using landings taxes as the mechanism to repay the loan may result in a mismatch between those who benefit from and pay for the buyback.     

Vessel buybacks in fisheries: The role of auction and financing structures

Vessel buyback programs intended to address overcapacity and excess capitalization in fisheries can lead to dramatically different levels of decapitalization depending on program structure and availability of vessel-specific information. This paper develops a simple theoretical model of self-financing vessel buybacks to examine equilibrium outcomes using sequential versus take-it-or-leave-it auctions, and financing schemes which allocate costs either homogeneously or according to rents captured through the buyback. This model demonstrates that programs which spread costs evenly among remaining vessels limit the possible extent of buybacks, as do programs which buy vessels one at a time in sequence rather than all at once. In addition to the theoretical modeling, a stylized case study inspired by the Inter-American Tropical Tuna Fishery is also provided. This analysis suggests that a wide range of auction structures could roughly half the size of the existing fleet, and starkly demonstrates how information poor settings can entirely derail a buyback.     

Managing the offshore and coastal fisheries in Taiwan to achieve sustainable development using policy indicators

This study establishes an offshore and coastal fisheries policy indicator system to evaluate the performance of policies to achieve sustainable development in offshore and coastal fisheries. A modified Delphi method is used to establish this system, and the weights of indicators are calculated using the analytic hierarchy process (AHP) to aggregate indicators. Results show that ecological policies have not achieved their goals because production and catch per unit effort are decreasing. Indicators with respect to management efficiency have increased after the implementation of the buyback and off-fishing programs. However, net returns indicator, which is affected by increasing cost and production value, is stable. Due to inefficient management resulting from insufficient resources, indicators for the number of illegal fishing cases per year and the number of smuggled aquatic production incidents have increased. This shows that requirement for enhanced compliance is necessary. The objective for cultivating talents in fisheries has not been achieved because average wage for fishers is lower than the average civil wage, resulting in an increase in the hiring of foreign fishers.     

Into the scrap iron business: Transaction costs for fleet sustainability in Norway

For decades the need to reduce surplus fishing capacity has been a fisheries political priority. While decommissioning schemes (buyback programs) usually is a publicly financed measure to reduce capacity, the Norwegian decommissioning scheme is privately financed. Whereas market-based transactions are assumed to lead to cost free adaptations, the Norwegian version reflects public policy aims which impose severe transaction costs on private actors. This article examines the use of market mechanisms for fleet capacity reduction, how private actors adapted to the new order, and the transfer of quota transaction costs from the public to the private sphere.     

Mixed messages: Buying back Australia's fishing industry

This paper discusses the process and outcomes of a major buyback of commercial fishing concessions across all Australian Commonwealth-managed fisheries through 2006. It argues that the intent of the buyback program was ambiguous, the process was flawed, and the outcomes of doubtful benefit to fish or to fishermen. This case study directs attention to deeper issues that prevail in forms of managing people under the guise of a non-explicit ideology of “extol and control”.     

Defining success in fisheries and conflicts in objectives

The traditional fisheries management objectives of maximizing yield and employment lead to heavily exploited stocks. Many current high-profile disputes arise from conflicting objectives, and the proposed solutions to “the fisheries problem” are primarily particular stakeholders’ efforts to have managers implement their own objectives. I suggest many “failures” are in fact successes for other objectives. Fisheries objectives, as reflected in management actions, are changing. Two current trends are the acceptance of objectives that value less disturbed ecosystems and acceptance of fisheries allocation through dedicated access to improve the fisheries’ economic efficiency. I suggest that increased use of dedicated access will result in more congruent objectives and less conflict.     

Stakeholder objective preferences in Australian Commonwealth managed fisheries

Fisheries management is increasingly involving a wide range of stakeholders in the decision making process. However, in most fisheries, the set of management objectives are poorly defined, and the implicit importance placed on these objectives may vary considerably both between and within different stakeholder groups. This may lead to conflicts within management advisory groups where members from different stakeholder groups view potential management outcomes substantially differently, and inconsistencies in decision making when changes in stakeholder representation take place. In this paper, the institutional structure of fisheries management in Australia and the roles the different organisations play in shaping fisheries management plans are detailed. An explicit hierarchy of management objectives is developed in collaboration with key managers and policy makers. A large survey of stakeholders involved in Australian Commonwealth fisheries management was undertaken to determine stakeholder preferences relating to these objectives. The results highlight the differences in perspectives regarding the relative importance of the multiple objectives of fisheries management. While on average stakeholder preferences generally correspond with their expected preference set, the results also indicate that there is generally low coherence within stakeholder groups.     

Designing ITQ programs for commercial recreational fishing

This paper discusses the potential for implementing individual transferable quota (ITQ) schemes in commercial recreational fisheries, focusing particularly on charter and headboat fisheries. After a brief discussion of ITQs in commercial fisheries, the paper discusses the manner in which rents get dissipated in commercial recreational fisheries. Fishing mortality in recreational fisheries is determined as a joint outcome of angler behavior and trip supply. In the recreational sector under open access conditions, there are likely to be too many vessels providing too many trips at prices that are too low. Vessel input configurations are likely to be distorted in a manner that generates excessive fishing mortality. Designing ITQs for recreational fisheries requires consideration of issues not prominent in the design of commercial fisheries. Among the most important is the manner in which angler preferences and types affect overall mortality from both landings and discards. While catch and release fisheries and pure food fish recreational fisheries are relatively easy to manage with recreational ITQs, fisheries with both angler types present difficult monitoring problems that add complexities to ITQ design. Various ways to design programs that account for both landings and discard mortalities and that generate incentives for anglers and vessel owners to reduce discard mortality are discussed.     

Catch-quota balancing in multispecies individual fishing quotas

Individual fishery quotas (IFQs) are an increasingly prevalent form of fishery management around the world, with more than 170 species currently managed with IFQs. Yet, because of the difficulties in matching quota holdings with catches, many argue that IFQs are not appropriate for multispecies fisheries. Using on-the-ground-experience with multispecies IFQ fisheries in Iceland, New Zealand, Australia, and Canada, we assess the design and use of catch-quota balancing mechanisms. Our methodology includes a mix of interviews with fishery managers, industry representatives, and brokers, literature review, and data analysis. We find that a combination of incentives and limits on use rates for the mechanisms provide sufficient flexibility to the quota owner without the fishery manager incurring excessive levels of overexploitation risk. Contrary to some opinions, these programs are evidence that it is possible to implement IFQ programs for multispecies fisheries and that they can be profitable and sustainable.     

The scope of fisheries learning exchanges for conservation

Over the past decade, fisheries learning exchanges (FLEs), in which representatives from different fisher communities come together to share marine conservation challenges and solutions, have been produced by a range of non-government organizations (NGOs) and federal agencies. This paper presents an overview of the history and scope of FLEs. A literature review, questionnaire, expert workshop, and key informant interviews were conducted. A content analysis was performed of the key informant interviews using a grounded theory approach. This paper offers a formal definition of a FLE, describes different configurations of FLEs, discusses the utility, common objectives, and common outcomes of FLEs, and outlines a research agenda for future work on FLEs. Organizers have found FLEs to have four main utilities: 1) FLEs leverage peer-to-peer sharing so that participants open each other's horizons for improving fisheries and fishing 2) FLEs catalyze and speed change, 3) FLEs are good for sharing thoughts that are difficult to receive and accept, 4) FLEs facilitate involvement and commitment from relevant parties needed for change. The most commonly documented purposes of FLEs were related to marine reserves, fisheries management strategies, bycatch reduction, and alternative livelihoods to fishing. The most common objectives among the FLEs surveyed were to encourage action or behavior, to openly exchange ideas, and to introduce new technology. As a result of FLEs the common outcomes were that participants were inspired to make changes, new programs were implemented, relationships were built and connections made, and participants enhanced their understanding of marine management strategies.     

Participation and resistance: Alternative seafood marketing in a neoliberalera

This paper suggests that detrimental effects of certain neoliberal fisheries policies are key drivers behind the development of alternative seafood marketing programs in North America. It examines the structures, market and non-market values, and challenges of these programs. The primary aim of the research, based on interviews involving 20 programs and a conference workshop, was to advance understanding of the market value of alternative seafood marketing to fishers and communities. However, the importance of a broader set of non-market values was repeatedly highlighted by those engaged in these programs. Overall, the research suggests that alternative seafood marketing can enable fishers to participate in fisheries managed by neoliberal, market-based policies, through the promotion of market values along their diverse value chains. At the same time, alternative seafood marketing appears to resist market-based fishing systems, sometimes through the promotion of broader, non-market outcomes. Common challenges along these alternative seafood value chains highlight the structural conflicts that exist while simultaneously participating in and resisting neoliberal fisheries structures.     

Objectives of fisheries management: case studies from the UK, France, Spain and Denmark

The main objectives of fisheries management are generally similar throughout the world. These are often stated in policy documents such as the Common Fisheries Policy and the Magnuson–Stevens Fishery Conservation and Management Act. However, at the local level often the key objectives of management are more detailed, characterised by both the overriding management structure and the status and type of fishery concerned. In this paper, we consider case study fisheries from the UK, France, Spain and Denmark to compare some of the various types of fisheries and fisheries management systems that exist in the European Union. From this, we define the key objectives for each management system.     

Performance of community-based coastal resource management (CBCRM) programs in the Philippines: A meta-analysis

Community-based coastal resource management (CBCRM) is a major conservation and fisheries management strategy in the tropics. In this study, the performance of 16 CBCRM programs in the Philippines was assessed using a meta-analysis of eight indicators that represented the perceptions of local resource users. Overall, the CBCRM programs in the Philippines were perceived to have a significant positive impact. However, the performance of each of the indicators was mixed. Although the CBCRM programs were perceived to be effective in empowering the local fishing communities, their perceived impact on improving the state of the local fisheries resources remained limited. This highlights the importance of incorporating ecological and socio-economic considerations in setting fisheries management regimes.     

Results based management in fisheries: Delegating responsibility to resource users

While the notion of results based management has been devoted recent attention in the context of reforming European fisheries management, it remains unclear what it entails. A conceptual model of results based management in fisheries is proposed as a way for public authorities to delegate specific management and documentation responsibilities to resource users. The model comprises three defining features: (1) That authorities define measurable objectives for the utilization of fisheries resources; (2) that resource users are made responsible for achieving these objectives and for (3) providing documentation that allows for an audit of the extent to which they are met. Selected cases are used to illustrate these features. Rationales and prospects of introducing results based management as an alternative in a European fisheries management context are discussed, giving consideration to how it may be pursued under the reformed common fisheries policy.     

Searching for market-based sustainability pathways: Challenges and opportunities for seafood certification programs in Japan

Over the past two decades, there has been a proliferation of consumer-facing, market-based initiatives for marine conservation—most notably in seafood eco-labels and sustainability certifications. Yet, despite the growing recognition of these initiatives by consumers and retailers in North America and Europe and the (subsequent) acceptance of their role in seafood distribution by fisheries and fish marketing industries around the world, seafood certification programs have thus far made little progress in Japan. Here, the evolution of the three seafood eco-label and certification programs in Japan is examined and insights into the ongoing challenges they face in terms of the domestic supply chain network, consumer preference and their social-cultural attitude toward sustainability are provided. Despite an initial lack of success, seafood certification programs in Japan can be useful in enhancing consumer awareness for fisheries resource conservation and identifying Japanese domestic small-scale fisheries that are already engaged in sustainable fishing practices. A possible pathway for developing an eco-certification program suitable for the Japanese seafood market is provided through integration of environmental and cultural sustainability under the existing certification framework.     

Catch share programs in the Western Pacific—A solution in search of a problem?

The movement toward catch shares by NOAA Fisheries and fisheries managers worldwide responds to dysfunctional fisheries plagued by a host of interrelated problems including radically shortened seasons, a race to fish, supply gluts, lowered product quality, increased bycatch, safety issues, excess capacity, and lack of profitability. However, the NOAA Catch Shares Policy recognizes that catch shares are not appropriate for every fishery, and others have agreed that the success of catch shares programs depends on their fit with ecological, economic, and social characteristics. This article describes the characteristics of the Hawaii-based deep-set longline fleet, identified by NOAA Fisheries as a possible candidate for catch shares because it operates under a bigeye tuna quota instituted by the Western and Central Pacific Fisheries Commission. One of the main concerns in the fishery is the potential for closing during the holiday season, a culturally important time for fish consumption in Hawaii. An evaluation of the fishery suggests that many of the problems leading to development of catch shares programs in other fisheries are not present, but that some warning signs exist which could be addressed by catch share programs or other management alternatives.     

Being heard: Thinking through different versions of rationality,epistemological policing and dissonances in marine conservation

Emerging from ethnographic research conducted on the west coast of South Africa, this paper explores the ways in which fishers contrast their experience of fishing prior to the implementation of the Marine Living Resources Act, and the rise of fortress style conservation in fisheries management. Conservation as rhetoric has been used as a powerful means of supporting and justifying fisheries management objectives. The paper argues that fishers engage with their environments in ways that are different from how management understands human–nature relations. As a consequence, fortress style fisheries management and policing disallow fishers to engage with the sea in the ways that are intrinsic to their fishing practices. This results, in many instances, in curtailing the ways in which fishers are allowed to think about and interact with the sea. With the impending implementation of EAF in South Africa and the global call for working with multiple knowledges, the paper calls for relational ways of engaging in conservation.     

Fish harvest tags: An alternative management approach for recreational fisheries in the US Gulf of Mexico

This paper explores the potential adaptation of harvest tags to the Gulf of Mexico recreational reef fish fishery. The discussion addresses conceptual, theoretical, and practical issues surrounding the application of harvest tags, as well as challenges and opportunities related to the design of tag programs. A review of hunting and fishing tag programs around the world and analysis of Gulf recreational fisheries suggests that tags have the potential to improve control over total catches, increase economic benefits and provide better information for fishery management. Results also provide insight into potential use of fish tags in large-scale recreational fisheries nationwide.     

Incorporating economics into fisheries management frameworks in Australia

A large gap has been identified between the current and optimal economic performance of wild-capture commercial fisheries in Australia. Economic approaches have the potential to assist fisheries to bridge this gap, such as bio-economic models that combine biology with fishing costs to evaluate the economic performance of a broad range of management measures. Economic objectives are prevalent in overarching Australian fisheries legislation, however economic data is often not collected and economic analyses or instruments not broadly applied. This paper reviews selected Australian fisheries to demonstrate the accrued economic benefits from applying formal bio-economic models and conducting empirical analyses of the impact of supply on product value. Challenges to the implementation and continued use of economic analyses and instruments are discussed including: (i) short-term transition costs and associated trade-offs between ecological, economic, social and political objectives; (ii) scarce logistical and financial capacity to collect and analyse economic data; (iii) a lack of desire among industry to change and transition to economic targets such as maximum economic yield (MEY), particularly when it is associated with lower catches; and (iv) a lack of economic literacy among fisheries managers and industry. It is contended that many of these challenges initially arise from an absence of clearly identified and prioritised objectives within overarching legislation and management plans. Once objectives are prioritised, limited resources can be allocated more efficiently to improve data collection, economic analysis and increase awareness as well as education of managers and industry.     

Review of indicators in fisheries management – a development perspective

A review of indicators for an ecosystem approach to fisheries management is presented, focusing on multispecies fisheries and limited resources for assessments and implementation, as often is the case in developing countries. Emphasizing the need to link indicators to management objectives, indicators from the literature are grouped into four categories, relating to the immediate fisheries resource base (single-species and multispecies indicators) and the wider ecosystem (habitat structure and ecosystem functioning). The usefulness of these indicators is assessed along three dimensions of acceptability among stakeholders, observability, and relation to fisheries management using a traffic light approach. The top ranking indicators are highlighted as a generally good start for any particular fishery management case. It is, however, argued that, even with similar management objectives, indicators need to be specific to both ecosystems and the institutional set-up if they are to be effective for management, and that indicators may consequently differ considerably between individual management applications.