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Optimal Exploitation and Management of a Highly Variable Fishery: Preliminary Results from the Falkland Islands Loligo Squid Fishery

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  • Loligo gahi (Patagonian longfin squid) has been the target of a major trawl fishery in the waters around the Falkland Islands since the early 1980s. The catch of this short-lived species can fluctuate markedly due to variation in seasonal recruitment. Ex-vessel prices of loligo are also variable due to international market conditions and variation in the average size of squid landed. Given the importance of the fishery to the Falkland Islands, there is considerable interest in exploring opportunities to improve the value of the fishery through alternative harvest strategies, industry involvement in downstream market sectors, and by establishing rights-based management regimes. To evaluate these opportunities, cost and market data were collected. Hedonic output price and input cost models were empirically estimated and used to determine revenues and profits for three years from 1999 through 2001. Results show that the industry as currently structured has been relatively profitable at moderate stock and recruitment levels but may be unprofitable at low stock and recruitment levels. The implications of these findings for developing an integrated bioeconomic model of the fishery are discussed.
  • Keywords: bioeconomic modelling, Hedonic price functions, Loligo squid, Fisheries Economics, Falkland Islands, cost functions, rights-based management, Theoretical and Empirical Bio-Economic Modelling
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  • Harte, Michael, Sherry Larkin, Gilbert Sylvia. 2002. Optimal Exploitation and Management of a Highly Variable Fishery: Preliminary Results from the Falkland Islands Loligo Squid Fishery. Peer Review: No. In: Proceedings of the Eleventh Biennial Conference of the International Institute of Fisheries Economics and Trade, August 19-22, 2002, Wellington, New Zealand: Fisheries in the Global Economy. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2002. CD ROM.
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