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Profitability, Factor Intensity and Economic Efficiency of Marine Fisheries Productiqn in Bangladesh

M.S. Islam
Professor
Department of Agricultural Economics, BAU, Mymensingh.

M.M. Haque
Assistant Professor
Graduate Training Institute, BAU, Mymensingh.

Abstract/ Executive Summary:

This paper attempted to determine the profitability, factor intensity and economic efficiency of marine fisheries production by using different technologies. In order to attain this objective. a total sample of 425 fishing units (firms) comprising 25 trawler. 200 gillnct, 100 setbag net and 100 longlinc firms were selected on the basis of purposive random sampling technique from four coastal districts (Cox's Bazar, Chittagong, Bansal and Patuakhali) of Bangladesh. Data were collected for the year 2000 covering both monsoon and non-monsoon season on trip monitoring basis. The study revealed that marine fishing was highly profitable and net profit was positive in all selected technologies but it varied widely among the gears. The net profit of shrimp trawler. fin fish trawler. gillnet, setbag net and longline were Tk 8619670. 3793760, 1089190.796900 and 620330 respectively. A production function analysis was done to determine the factor intensity and economic efficiency of marine fishing by different gears and to assess the contribution of variable factors involved in marine fishing. Except tonnage in setbag net and experience of head crew in gillnet, all other input coefficients were statistically significant at different level (0.0 I to 0.10). For all the selected technologies increasing returns to scale were found indicating that increasing use of included fishing inputs by 1 %, catch revenues might be increased by 1.23 to 3.15% for five selected gears.

Keywords: Marine fisheries, Profitability, Factor intensitv and economic efficiency

Location: Cox's Bazar, Chittagong, Barisal and Patuakhali

Start Date: 00-00-2000

End Date:

Program Area: Socio-economic and Policy

Commodity: Marine fish

Objectives:

To determine the profitability, factor intensity and economic efficiency of marine fisheries production by using different technologies

Methodology:

Two important variables that is, catch and efforts are involved in economics of marine fish production. Actually catch is revenue and efforts are costs in marine fishing. Accordingly, information on quantity of catch, different species being caught, fishing inputs used, cost of fishing inputs, revenue received from disposal of fish under different technologies in different locations were collected to examine the profitability of marine fishing in respective gears. Since the marine fishing activities are concentrated in only the coastal districts of Cox's Bazar, Chittagong, Barisal and Patuakhali, selected locations of these districts were chosen for the study. Trawler, gill net, longline and set bag net fishing were investigated as these four gears contribute much to the total marine landing. Data were collected for the year 2000 covering both monsoon and non-monsoon season on trip monitoring basis. A total sample of 425 fishing units (firms) comprising 25 trawlers, 200 gill net, 100 longline and 100 setbag net firms were selected purposively. Secondly, multiple regression model was used to determine factors intensity and economic ef.ficiency of marine fishing by different gears and to assess the contribution of variable factors involved in marine fishing. The general form of the marine fishery production function described by Panayotou (1987), as a function of effort (X), which is a composite index of fishing inputs: Y = f(X) For econometric estimation with empirical data, the estimated equation was: InY = lna + b₁ln X. + b₂1nX₂ + b₃lnX3+ b₄1nX₄+ b₅lnX₅ + b₆InX₆ + b₇lnX₇ + b₈lnX₈ + InU₁ where, Y is an index of catch constructed by adding the quantities of individual species caught weighted by their relevant per unit prices (differential monopsony is assumed away); and X_I, X₂, X₃ X₄, X₅, X₆ X₇ and X₈ stand, respectively for the crew cost, fuel cost, capacity of trawler/boat, engine HP, cost of preserving fish (refrigeration/ice/salt) in fishing time, age of head crew and experience of head crew; bi's are parameters and U, is disturbance term with appropriate properties. For different locations, gear wise analysis was clone to determine the profitability and economic efficiency of production technologies used in marine fishing.

Source of Information: Bangladesh J. Train. and Dev. Vol. 16(1&2), 2003: 81-89 ISSN 1013-0306

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

Marine fishing is highly profitable. The net profit was positive in all selected technologies but it varies among the gears. It was found that there were significant differences in net profit, RROI and RRCI among technologies. Net profit was exceptionally higher in industrial (trawler) fishing compared to the gears used in artisanal fishing. But RRCI was higher in artisanal fishing compared to the technologies used in industrial fishing. For all the selected gears increasing returns to scale were found and the results indicate that increasing use of included fishing inputs by I %, catch revenues might be increased by 1.23 to 3.15% for five selected gears.

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