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Capacity and Factors Affecting Capacity Utilization of Marine Fisheries: a Case of Gill-net Fleet in the Bay of Bengal

Md. Akhtaruzzaman Khan
Assistant Professor
Department of Agricultural Finance in Bangladesh Agricultural University, Mymensingh, Bangladesh

Atle Guttormsen
Professor
UMB School of Economics and Business Norwegian University of Life Sciences P. Box 5003 N- 1432 Ås NORWAY

Abstract/ Executive Summary:

Excess capacity and overexploitation are the main problems for the sustainability of marine fisheries around the world. This study estimates the capacity utilization, excess capacity and factors affecting capacity utilization of the multispecies gill-net boats operating in the Bay of Bengal using cross-sectional primary data collected from the two main marine fishing areas in Bangladesh. Data envelopment analysis (DEA) method is used by applying a general algebraic modeling system (GAMS). Moderate to low degrees of observed capacity utilization and high levels of technical inefficiency are observed in the monsoon and non-monsoon seasons, respectively; however, unbiased capacity utilization is close to full in both seasons. High degree of excess capacity exists in both seasons; therefore more than one-third of boats can be decommissioned. Boat capacity, number of trips per month and trip duration is the main factors affecting capacity utilization in gill-net fishing. Licensing restrictions seem to be an effective instrument for auto-elimination of boats from the fishery; however, this will have large distributional effects that need to be taken into account.

Keywords: Gill-net, Bangladesh, Capacity utilization, Data envelopment analysis

Location: Chittagong and 94 from Cox’s Bazar district, Bangladesh

Start Date: 00-07-2010

End Date: 00-09-2010

Program Area: Resource Development and Management

Commodity: Employement, Socio-economic status

Objectives:

To estimates the capacity utilization, excess capacity and factors affecting capacity utilization of the multispecies gill-net boats operating in the Bay of Bengal using cross-sectional primary data collected from the two main marine fishing areas in Bangladesh.

Methodology:

Studies of capacity are typically based on the “hold capacity approach,” which provides a technological limit to maximum production. Data on the number of vessels, individual hold capacity and a maximum number of fishing trips are required for this approach. There are many difficulties associated with this method (Gréboval 1999). The Technical Working Group of FAO suggested two practical alternative methods of capacity measurement: peak-to-peak methods and data envelopment analysis (DEA). The peak-to-peak method capacity is measured by observed relationships between catch and fleet size over time. The peak-to-peak method requires data on landings and vessel numbers and some identification of a technological time trend (Gréboval 1999). On the other hand, DEA is a mathematical programming method that determines the optimal solutions given a set of constraining relations. DEA is well suited in situations where there are limited amounts of data, and when data are unstructured. In effect, DEA analysis only requires data on key inputs and output. DEA is suggested as the most appropriate methodology to estimate fishing capacity because it is able to measure fishing capacity at an individual species level in a multispecies fishery (FAO 2000). Another advantage of the DEA method is that it can incorporate multiple inputs and multiple outputs in the analysis (Kirkley and Squires 2003; Pascoe 2007). Therefore, DEA has been applied in estimating the CU and technical efficiency of fisheries sectors worldwide over the last one and a half decades (FAO 1998; Kirkley et al. 2002; Kirkley and Squires 2003; Kirkley et al. 2003; Maravelias and Tsitsika 2008; Tingley and Pascoe 2005a; Tingley and Pascoe 2005b; Tingley et al. 2003; van Hoof and de Wilde 2005; Vestergaard et al. 2003). Cross-sectional data collected in face-to-face interviews are used in this study. A pretested questionnaire was administered to collect information from the gill-netters operating in the Bay of Bengal. The questionnaire contains information on the personal characteristics of the captain (operator), boat tonnage, engine horsepower, nets and associated boat equipment used for fishing, fishing trips, fish catch, variable input costs and information on the share system of earnings of the boat/gill-net vessels. Lists of gill-net operators fishing in Chittagong and Cox’s Bazar port were obtained from the Marine Office of the Department of Fisheries, Chittagong. A total of 146 gill-netters comprising 52 from Chittagong and 94 from Cox’s Bazar were included following a random sampling procedure. The survey was conducted during July–September 2010.

Source of Information: Norwegian University of Life Sciences, NO–1432 Ås, Norway; ISBN 978-82-575-1098-5, ISSN 1503-1667

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The purpose of this study was first to measure the CU and excess capacity of the artisanal gill-net fleet in the Bay of Bengal and second to develop an effective policy for policymakers as well as fishermen that will maximize the economic benefit of fishermen and ensure the sustainability of the marine fishery. Output-oriented DEA was used in our analysis. Cross-sectional primary data for both monsoon and non-monsoon seasons for the year 2010 were collected from the two main marine fishing areas in Bangladesh. The estimated average CU appears to be low in both seasons and varies between seasons. This indicates that observed output is significantly lower than capacity output, implying the existence of severe overcapacity in Bangladesh gill-net fishing. An overwhelming majority of boats operate with CU < 1. In addition, high levels of technical inefficiency also exist in both seasons. Poor CUs are mainly a result of low levels of variable inputs relative to their capacity and high levels of technical inefficiency. Variable input utilization rates are lower than is optimal. High degrees of excess capacity exist in the monsoon as well as the nonmonsoon seasons, which should be the major concern for policy makers. Under the condition that remaining boats are fully utilized, withdrawal of around a one-third of the operating boats/vessels might seem a reasonable management measure toward reducing overexploitation and attaining sustainable fisheries in the Bay of Bengal. More days at sea with large capacity boats is highly recommended for improving the CU in the Bay of Bengal.

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