The Australian fisheries economic indicators reports present results from ABARES' fishery surveys on financial returns to fishers and net economic returns from fisheries to the Australian community. The reports include a range of other economic indicators, including productivity analysis.
Southern and Eastern Scalefish and Shark Fishery
This report covers the Commonwealth Trawl Sector (CTS), and the Gillnet, Hook and Trap Sector (GHTS) of the Southern and Eastern Scalefish and Shark Fishery (SESSF), with new survey results for the 2013-14 and 2014-15 financial years and non-survey based estimates of net economic return for the 2015-16 and 2016-17 financial years.
- Profit at full equity was positive and increased for the average boat in the CTS from 2013-14 to 2014-15 but was lower than the peak in 2008-09. In the GHTS, profit at full equity improved from negative to positive between 2013-14 and 2014-15, but the result in 2015-16 was lower than its 2008-09 level.
- Net economic return (NER) in the CTS increased in 2014-15 following three years of decline. Preliminary non-survey based estimates indicate that NER further increased in the 2015-16 and 2016-17 financial years.
- NER in the GHTS is estimated to have been negative in the 2013-14 and 2014-15 financial years. However, preliminary non-survey based estimates indicate that NER was positive in the 2015-16 and 2016-17 financial years with 2015-16 being the first positive NER in the fishery since 2008-09
Northern Prawn Fishery - Financial and economic performance 2017
- The NPF is one of Australia’s most valuable fisheries. In 2016–17 the fishery was the highest earning Commonwealth fishery, achieving a gross value of production of $118 million and accounting for 29% of Commonwealth fishery gross value of production.
- This report provides financial and economic performance indicators for the Northern Prawn Fishery (NPF). Survey-based results are presented for the 2014–15 and 2015–16 financial years and preliminary non–survey based results for economic performance are presented for the 2016–17 financial year.
- Profit at full equity for the average NPF boat has continued to rise in 2014–15 and 2015–16. This increased reflected lower fuel prices, an increased catch, increased prices for banana prawns in 2014–15 and 2015–16 and a shift in catch composition toward higher unit value tiger prawns in 2014–15.
- Fuel and crew costs make up the largest proportions of cash costs in the fishery. Fuel costs made up 31% of total cash costs in 2014–15 and 29% in 2015–16. Crew costs 28% and 35% of total cash costs.
|Total cash receipts||$||2,106,322||2,474,842|
|Total cash costs||$||1,564,347||1,723,437|
|Boat cash income||$||541,975||751,406|
|– less depreciation||$||37,905||39,588|
|Boat business profit||$||504,070||711,818|
|– plus interest, leasing, rent||$||27,485||25,342|
|Profit full equity||$||531,556||737,160|
|Rate of return to full equity||%||12||17|
- Net economic return of the fishery is estimated to have increased to $20.7 million in 2014–15 and $30.9 million in 2015–16. Growth in fishing income was driven by increased landings of tiger prawns in 2015–16 and higher than average catch and price for banana prawns in both survey years. A significant reduction in unit fuel prices has contributed to boosting NER. In 2016–17 net return is estimated to have declined by 2 per cent to $30.3 million.
|Fishery cash profit||$m||22.7||33.0||33.1|
|– less owner and family labour, opportunity cost of capital and depreciation|
|– plus interest, leasing and management fees|
|Net return (excluding management costs)||$m||23.2||32.8||32.3|
|Net return (including management costs)||$m||20.7||30.9||30.3|
p Preliminary estimate.
Australian fisheries economic indicators report 2015: financial and economic performance of the Northern Prawn Fishery
Australian fisheries economic indicators report 2013: the NPF
Australian fisheries surveys report 2011: the NPF and BSCZSF
Australian fisheries surveys report 2009: the NPF and TSPF
Australian fisheries surveys report 2007: the NPF and TSPF
Australian fisheries surveys report 2005: the NPF and TSPF
Australian fisheries surveys report 2003: the CTF, NPF and TSPF
Australian fisheries surveys report 2001: the CTF, NPF and TSPF
Australian fisheries surveys report 1999: the CTF, GHTS, NPF and TSPF
Australian fisheries surveys report 1997: the CTF, NPF and TSPF
Australian fisheries surveys report 1995: the CTF, GHTS, NPF and TSPF
Australian fisheries surveys report 1993: the CTF, GHTS and NPF
Australian fisheries surveys report 1992: the CTF, ETBF and NPF
Eastern Tuna and Billfish Fishery - 2018
Authors: David Mobsby, Stephanie Black, Robert Curtotti and Michael Dylewski
This report presents results of the 2018 survey of the Eastern Tuna and Billfish Fishery (ETBF). The results comprise survey-based estimates of financial and economic performance for the 2015–16 and 2016–17 financial years, as well as non-survey-based estimates of economic performance for the fishery in the 2017–18 and 2018–19 financial years. Results of the survey are used to estimate the economic performance of the ETBF and provide insights into the drivers of the fishery’s economic and financial performance and how management and policy changes influence this.
Other indicators presented in the report include total factor productivity, terms of trade, management costs and quota latency.
The construction of these indicators draws upon the data collected through the fisheries survey program. Together with the financial and economic performance information, these indicators help to form a comprehensive picture of the economic performance of the ETBF over a number of years.
Key findings and results
- Net economic returns have demonstrated a persistent long-term positive trend as has productivity. Net economic returns for the fishery were $9.1 million in 2015–16 and $4.6 million in 2016–17. Lower net economic returns in 2016–17 mainly resulted from fishing income decreasing proportionately higher than fishing costs.
- Preliminary net economic returns in 2017–18 and 2018–19 were estimated to be $5.6 million and $3.7 million respectively.
- The large reduction in the fleet since the early 2000s and the shift to individual transferable quota from 2011 has likely resulted in more productive and profitable operators remaining in the fishery. This is also consistent with the increasing productivity trend.
- Profitability for the average ETBF operator was positive in 2015–16 and 2016–17. Profit at full equity, a profit indicator that assumes all assets are fully owned by operators, for the average boat in the fishery was $263,916 in 2015–16 and $259,982 in 2016–17.
- The largest share of cash costs in 2015–16 and 2016–17 were crew costs (25% and 22%, respectively) and freight and marketing expenses (23% in both years).
- Fuel costs were another large contributor to cash costs and increased by 21% in 2016–17, which reflect higher fuel prices and increased number of fishing days.
Total factor productivity (TFP) analysis shows a rising trend of productivity in the ETBF, which increased by an annual average of 5% between 2002–03 and 2016–17.
The terms of trade index, an indicator measuring the level of fishery output prices compared with input costs faced by fishers, declined between 2002–03 and 2012–13. Terms of trade improved in the ETBF from 2013–14 to 2016–17, reflecting a combination of higher fish prices and lower input prices, and had a strengthening effect on NER for the fishery.
Total management costs in the fishery generally declined between 2002–03 and 2016–17. Management costs per vessel increased from 2005–06 to 2007–08 when implementation of the Securing our Fishing Future structural adjustment package caused a restructure of the fishery. This is because similar management costs were shared among fewer vessels. Management cost per vessel has trended down since 2007–08. Management cost as a percentage of GVP declined from a high of 11% in 2005–06 to 4% in 2016–17.
Management through total allowable commercial catch (TACC) limits and individual transferable quotas (ITQs) commenced in 2011. The level of latency in the ETBF, measured by the proportion of TACC not caught in the fishery, has varied across the key species since 2011. In the 2015 fishing season, very low latency levels were recorded for yellowfin tuna and striped marlin. In contrast, latency for albacore, a relatively low unit value species, remained high in the 2015 season—nearly two-thirds of the TACC remained uncaught that season. Between the 2015 and 2018 seasons latency increased for yellowfin tuna and striped marlin, decreased for swordfish, and remained largely unchanged for albacore and bigeye.
Australian fisheries economic indicators report 2018: Financial and economic performance of the Eastern Tuna and Billfish Fishery - PDF [1.5 MB]
Australian fisheries economic indicators report 2018: Financial and economic performance of the Eastern Tuna and Billfish Fishery - MS Word [2.5 MB]
Torres Strait Prawn Fishery – 2013
This report presents results of the 2013 Torres Strait Prawn Fishery survey, comprising survey based estimates of financial and economic performance for the 2010-11 and 2011-12 financial years, as well as non-survey based estimates of economic performance for the fishery in the 2012-13 financial year. Other indicators presented in the report include the productivity index, input costs and output prices and management costs.
- Profit at full equity - an estimate of profits based on all assets being fully owned by operators - was negative for the average vessel in the fishery in 2010-11 and 2011-12, at -$89 491 and -$87 366 respectively.
- The change in profit at full equity was primarily attributed to higher cash receipts, which in turn led to higher vessel cash income and higher profit at full equity.
- The net economic returns (including management costs) remained negative at -$2.1 million in 2010-11 and -$2.7 million in 2011-12.
- In 2012-13 preliminary net economic returns were estimated at -$2.3 million using non-survey based methods.
- The negative net economic returns from the Torres Strait Prawn Fishery is mainly attributed to the high costs associated with operating in a remote fishery.
DataSupporting data tables: Australian fisheries economic indicators report 2013 - Torres Strait Prawn Fishery - MS Excel [0 MB]
Economic indicators in fisheries management
In September 2007 the Australian Government released the Commonwealth Fisheries Harvest Strategy Policy to provide guidelines for sustainable and profitable management of Commonwealth fisheries. The policy aims to maintain key commercial stocks at ecologically sustainable levels and maximise economic returns to the Australian community by targeting maximum economic yield (MEY) (DAFF 2007). To assess the performance of Commonwealth fisheries against their MEY targets, fishery policymakers frequently rely on economic indicators that provide them with information to inform management decisions and monitor performance.
Informing management decisions against the economic objective
This type of economic indicator is forward-looking and can advise fishery managers on policy settings necessary to achieve MEY. Bioeconomic models provide indicators for this purpose; models have been developed for the Northern Prawn Fishery (Kompas & Che 2003), the Great Australian Bight Trawl Fishery (Kompas et al. 2012) and the Southern and Eastern Scalefish and Shark Fishery (Kompas & Che 2008). Management strategy evaluation-based approaches that include an economic component can also serve this purpose.
Monitoring management performance against the economic objective
This type of economic indicator is retrospective and assesses previous economic performance. It can provide insight into the impact of previous management decisions on economic performance. Most indicators examined in this report fall under this category. This includes the survey-based estimation of NER, productivity indexes, entitlement values, management costs, latency and terms of trade analysis.
Total factor productivity analysis is an economic tool used to assess how well fishers use inputs to produce outputs and how their ability to convert inputs into outputs over time has changed with changes in the fishery’s operating environment. Productivity indexes can inform fishery managers about the effect of management arrangements on average productivity levels in the fishery.
Analysis of fishers’ terms of trade provides an indication of drivers behind changes in profitability or NER. It uses an index approach to examine changes in the price of inputs and outputs for a fishery over time and reveals information about the productivity improvements required to offset long-term declines in the terms of trade.
In contrast, entitlement values (or quota values) signal the expected value of future profits to be obtained from the fishery. When compared over time, entitlement values can serve as a general indicator for how well the resources in a fishery have been sustained or managed. If entitlement values are increasing over time, this suggests resources are being managed effectively because operating in the fishery is deemed to have become more profitable.
Measures of management costs, in absolute terms and as a proportion of gross value of fishery production (GVP) and per active boat, also provide information about the cost-effectiveness of fishery management—another key objective referred to in the Fisheries Management Act 1991.
Latency, or the proportion of uncaught quota, can indicate limited economic incentives for fishers to participate in the fishery. A fishery where operators are not utilising their right to fish is unlikely to be near its MEY target.