Download 1- Name of indicator, authors

Socio-economic indicators of aquaculture performance
DWhitmarsh
Objective
Indicator
Supply availability
Total output of aquaculture products by country or region
Consumption of aquaculture products per capita
Consumption of aquaculture products as a % of total fish consumption
Consumer prices for aquaculture products
Livelihood security
Total employment in aquaculture by country or region
Regional dependency ratios
Income per capita in aquaculture
Employment multipliers
Income multipliers
Economic efficiency
Productivity ratios
Value added per unit
Profit per unit
Environmental damage costs per unit
Policy response costs per unit
Producer prices for aquaculture products
Social acceptability
Public attitudes towards the aquaculture sector
User conflicts
ECASA WP 2
Friday, 17 December
2004
Annotated sheet for indicators1
related to the impact of aquaculture on the environmenti
1- Name of indicator, authors
Consumer prices for aquaculture products
DWhitmarsh
2- Computation : Formulae, or model output.
Whenever possible, please use a range of 0-100. Ranking the results in few classes
(five?) is another option for qualitative indicators.
Prices paid by consumers for farmed fish will vary according to local market conditions, but an indication
of the underlying trend can be obtained from wholesale prices. Because these are determined in a relatively
few market centres (in Europe, these would be Rungis and Billinsgate) the task of obtaining representative
prices is much simplified. Such data are available in various market reports and trade journals (normally
requiring a subscription), and there is the usual requirement to convert nominal prices into ‘real’ terms
when making comparisons over time in order to remove the effects of inflation. This can be done by
deflating the original aquaculture wholesale prices by the relevant consumer price index (CPI).
3- List of data / parameters required for computation.
Sources:
Agra Europe WorldFish Report. Fortnightly wholesale prices for the main farmed species (e.g. salmon,
sea bass, sea bream) sold at Rungis and Billingsgate are reported.
FAO Globefish European Price Report. Wholesale and export prices for several farmed species in
various European countries are reported monthly, along with general comment on market conditions.
NOAA Fishery Market News. Data on monthly wholesale prices (extending back to 1991 in some cases)
for the main farmed species sold in US and European markets are produced.
1
Please return these sheets to the WP 2 leader, BEFORE end of March 2005.
This document is intended to be used for internal work on ECASA workpackage. The
final indicator sheet may include a format somewhat different. Please suggest any
improvement for both the content and the form of this document.
i
ECASA WP 2
Friday, 17 December
2004
Annotated sheet for indicatorsi
related to the impact of aquaculture on the environmenti
1- Name of indicator, authors
Environmental damage costs per unit
DWhitmarsh
2- Computation : Formulae, or model output.
Whenever possible, please use a range of 0-100. Ranking the results in few classes
(five?) is another option for qualitative indicators.
Very great uncertainty attaches to the economic costs arising from the environmental impact of
aquaculture, and this is further complicated by the fact that such costs are highly context-specific (i.e. the
harm caused by aquaculture pollution will vary widely according to circumstances – farm location, feeding
regime, etc.). Regarding the eutrophication effects of cage aquaculture, the small number of economic
studies published to date testifies to the serious methodological challenges of reliably estimating the
environmental damage costs. For computational purposes, a basic way forward would be to estimate (a)
the release of N and P per unit of farmed production, and (b) impute an economic value to these figures
using methodologies based on either (i) abatement expenditure, (ii) dose-response, (iii) contingent
valuation, or (iv) a ‘benefit transfer’ approach.
3- List of data / parameters required for computation.
Sources :
The following studies use one or other of the valuation techniques mentioned above, and provide estimates
of the damage costs of eutrophication from aquaculture:
Folke, C., Kautsky, N. and Troell, M. 1994. The costs of eutrophication from salmon farming:
implications for policy. Journal of Environmental Management. 40: 173-182
Smearman, S., D’Souza, G. and Norton, V. 1997. External costs of aquaculture production in West
Virginia. Environmental and Resource Economics 10: 167-175
The following study estimates the costs of eutrophication in the Baltic from all sources, and could possibly
be used as the basis for calculating the externalities of nutrient releasse from aquaculture :
Gren, I-M., Turner, K. and Wulff, F. 2001. Managing a Sea: the Ecological Economics of the Baltic.
Earthscan.
ECASA WP 2
Friday, 17 December
2004
Annotated sheet for indicatorsi
related to the impact of aquaculture on the environmenti
4- Name of indicator, authors
Total employment in aquaculture products by species and country
DWhitmarsh
5- Computation : Formulae, or model output.
Whenever possible, please use a range of 0-100. Ranking the results in few classes
(five?) is another option for qualitative indicators.
Employment is normally classified according to whether it is full-time or part-time, though the latter can be
converted to FTEs using appropriate weights. Most statistical sources measure employment in terms of
absolute numbers (or FTEs).
6- List of data / parameters required for computation.
Sources:
Data on employment in aquaculture are quite fragmented, but some figures can be obtained from the
following:
OECD Review of Fisheries (Annual). Total employment in aquaculture for certain OECD countries.
(Annexes and individual country reports give more detailed employment figures).
UK Annual Business Inquiry. Total employment (rounded to nearest thousand) for all UK aquaculture
enterprises (2000 – 2003).
Scottish Sea Fisheries Statistics. Staff employed in aquaculture (from 1992) for Scotland, distinguishing
between salmon, trout and shellfish.
Scottish Fish Farms Annual Production Survey. Staffing and manpower for salmon and other species in
Scotland (from 1990), regionally disaggregated .
Statistics Norway, Statistisk sentralbyra. Number of workers and labour input in Norwegian aquaculture
(from early 1990s), regionally disaggregated.
ECASA WP 2
Friday, 17 December
2004
Annotated sheet for indicatorsi
related to the impact of aquaculture on the environmenti
7- Name of indicator, authors
Multiplier indicators of dependency
DWhitmarsh
8- Computation : Formulae, or model output.
Whenever possible, please use a range of 0-100. Ranking the results in few classes
(five?) is another option for qualitative indicators.
Multiplier effects define the total economic activity supported directly and indirectly by one industry or
sector. In this context they can be used to determine the dependency of particular regions on aquaculture.
If multiplier effects are large it implies that changes in the output of aquaculture may induce
correspondingly large (i.e. ‘multiplied’) changes in the output and employment of other sectors, which is
clearly a matter of policy concern in regions of high unemployment. If the objective is livelihood security,
it is employment multipliers and income multipliers that are most relevant. Calculating these is complex,
and normally involves an input-output model of the whole regional economy of which aquaculture is one
component. Such models are routinely constructed for the Scottish economy, and it is therefore possible to
derive multiplier effects of fish farming within the regional economy. Other European countries normally
produce national input-output tables, and these can in some circumstances be adjusted (using the GRIT
technique) with local data so as to measure the dependency of particular regions on fishing or aquaculture.
9- List of data / parameters required for computation.
Sources:
Mega Pesca (1999). Regional socio-economic studies on employment and the level of dependency on
fishing. Coordination and Consolidation study Lot 23, Commission of the European Communities. The
report gives multiplier indicators of dependency on aquaculture (and fishing) for EU countries and regions,
along with a description of the methodology used to derive them.
Scottish Executive, Input-Output Tables and Multipliers for Scotland. Data for 2001 and previous
years (back to 1998) are published, including estimates of the income and employment multipliers for
Scottish fish farming.
ECASA WP 2
Friday, 17 December
2004
Annotated sheet for indicatorsi
related to the impact of aquaculture on the environmenti
10- Name of indicator, authors
Total output of aquaculture products by species and country
DWhitmarsh
11- Computation : Formulae, or model output.
Whenever possible, please use a range of 0-100. Ranking the results in few classes
(five?) is another option for qualitative indicators.
Output can be measured in physical terms (e.g. metric tonnes) and / or value (€, £, $, etc.). However,
monetary values need to be converted from nominal to ‘real’ terms when making comparisons over time.
This requires that the original series be deflated in order to eliminate the effects of inflation in the national
economy to which it applies. Deflators are normally based on consumer price indices (CPIs) which are
published by most national governments.
12- List of data / parameters required for computation.
Sources:
FAO FishStat Plus. Aquaculture production data by weight (1950 – 2003) and value in $ (1984 – 2003)
for all countries, disaggregated by (i) species, (ii) geographical area and (iii) environment (freshwater,
brackishwater, mariculture).
OECD Review of Fisheries (Annual). Aquaculture production data by weight and value in $ for all
OECD countries. (Annexes give total EC production data for main species by weight and value).
Federation of European Aquaculture Producers. Aquaculture production by weight and value (1997 –
2004) for European countries, disaggregated by species.
Eurostat New Cronos database. Aquaculture production by weight (1990 – 2002) for EU-25 countries
and others (e.g. US, Canada, Japan).
Scottish Sea Fisheries Statistics. Aquaculture production data (from 1992) for Scotland, specifying
salmon and mussels.
Scottish Fish Farms Annual Production Survey. Production of salmon and other species in Scotland
(from 1990), regionally disaggregated
Statistics Norway, Statistisk sentralbyra. Tonnage and value of Norwegian aquaculture production
(from early 1990s), regionally disaggregated
ECASA WP 2
Friday, 17 December
2004
Annotated sheet for indicatorsi
related to the impact of aquaculture on the environmenti
13- Name of indicator, authors
Producer prices for aquaculture products
DWhitmarsh
14- Computation : Formulae, or model output.
Whenever possible, please use a range of 0-100. Ranking the results in few classes
(five?) is another option for qualitative indicators.
Prices are not usually given explicitly, but can be derived from data on the value and quantity of
aquaculture production. FAO FishStat Plus gives values in US $, which have been converted from local
currencies using the appropriate yearly exchange rates. These are believed to correspond approximately
with the prices received by producers in each country, and if required can be converted back to local
currencies given that historic data on exchange rates is easily obtainable. For time series analysis it is also
necessary to convert prices from nominal to ‘real’ terms in order to remove the effects of inflation, which
can be done by deflating the original aquaculture product prices by the relevant consumer price index
(CPI).
15- List of data / parameters required for computation.
Sources:
FAO FishStat Plus. Prices of aquaculture products in US$ from 1984 to 2003 can be derived from the
value and tonnage figures. Data are for all countries, disaggregated by (i) species, (ii) geographical area
and (iii) environment (freshwater, brackishwater, mariculture).
Federation of European Aquaculture Producers. Prices of aquaculture products in € from 1997 – 2004
for European countries can be derived from the value and tonnage figures. Data are disaggregated by
species.
ECASA WP 2
Friday, 17 December
2004
Annotated sheet for indicatorsi
related to the impact of aquaculture on the environmenti
16- Name of indicator, authors
Productivity ratios
DWhitmarsh
17- Computation : Formulae, or model output.
Whenever possible, please use a range of 0-100. Ranking the results in few classes
(five?) is another option for qualitative indicators.
Productivity is a measure of output per unit of input. Data on the output of aquaculture products is available
from a number of sources (see other sheet), and ideally we require data on both labour and capital in order
to calculate an appropriate measure of total factor productivity (TFP). Data on capital employed in
aquaculture is limited, and in practice this means that it may only be possible to derive labour productivity
(i.e. output per person employed). Despite its limitations, trends in labour productivity are an important
indicator of technical progress in aquaculture, and productivity differences between farms may give a
portent of which farms are most vulnerable to falling prices and profits.
18- List of data / parameters required for computation.
Sources:
In deriving labour productivity, the output and employment data may need to be assembled from different
sources. At the national level, these include the ones specified in the other annotated sheets.
One source which gives output and employment figures for different countries in the same publication is:
OECD Review of Fisheries (Annual). Labour productivity can be derived from the aquaculture
production and employment figures.
More detailed productivity data for Scotland is given in:
Scottish Fish Farms Annual Production Survey. Labour productivity on Scottish salmon farms in
tonnes per person (from 1990) are reported, also data on productivity by size of company.
And for Norway:
Fiskeridirektorat, konomiske Analyser Fiskeopdrett. Labour productivity on Norwegian fish farms in
tonnes per man-year are reported, and capital productivity can be derived from the information given on
assets employed.
ECASA WP 2
Friday, 17 December
2004
Annotated sheet for indicatorsi
related to the impact of aquaculture on the environmenti
19- Name of indicator, authors
Profit per unit
DWhitmarsh
20- Computation : Formulae, or model output.
Whenever possible, please use a range of 0-100. Ranking the results in few classes
(five?) is another option for qualitative indicators.
Profitability is a basic indicator of financial viability, but with the exception of Norway few countries
appear to publish cost and earnings surveys of their aquaculture sectors on a routine basis. In the absence
of published data, profitability needs to be calculated from its different elements (i.e. input costs, FCRs,
prices, etc.) and this information necessarily has to be assembled from a variety of sources.
21- List of data / parameters required for computation.
Sources:
The most comprehensive source of data on the profitability of aquaculture producers is from Norway:
Fiskeridirektorat, konomiske Analyser Fiskeopdrett. Annual operating profit and related financial
ratios for Norwegian fish farms.
For the UK, there are no published profit figures but the nearest approximation (indicative of trends) is:
UK Annual Business Inquiry. Turnover and gross value added (£) for all UK aquaculture enterprises
(2000 – 2003).