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The Fisherman's Share of the Wholesale Price Public Deposited

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Abstract
  • Fishermen regularly argue that processors should pay them more; processors argue they can't afford to pay more. Fisherman are often skeptical of processors' arguments about what processors can afford to pay, and whether ex-vessel prices are "fair." Fishermen often argue that a significant drop in the "fishermen's share" of the wholesale price (=ex-vessel price / wholesale price) is an indication that they are being paid unfairly (or worse, as an indicator of illegal collusion by processors). This paper examines how we would expect the fisherman's share to change as prices change, given assumptions about (a) the fisherman's share of total fishing and processing costs; and (b) the fisherman's share of total fishing and processing profits. It demonstrates that if the fisherman's share of profits is more than the fisherman's share of costs, then the fisherman's share of the price will fall as prices fall. Intuitively, if costs are fixed, then as prices fall the share of profits in total value declines. The greater fishermen's market power and the greater their share of profits, the more likely their share of the wholesale price is to fall as the price falls. The paper applies this theoretical framework to analyze trends in the fisherman's share in Alaska's Bristol Bay salmon fishery, where the fisherman's share has historically risen or fallen as wholesale prices have risen or fallen--suggesting that fishermen capture a larger share of the profits than their share of the costs.
  • Proceedings of the Eighteenth Biennial Conference of the International Institute of Fisheries Economics and Trade, held July 11-15, 2016 at Aberdeen Exhibition and Conference Center (AECC), Aberdeen, Scotland, UK.
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Citation
  • Challenging New Frontiers in the Global Seafood Sector: Proceedings of the Eighteenth Biennial Conference of the International Institute of Fisheries Economics and Trade, July 11-15, 2016. Compiled by Stefani J. Evers and Ann L. Shriver. International Institute of Fisheries Economics and Trade (IIFET), Corvallis, 2016.
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Déclaration de droits
Peer Reviewed
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ISBN
  • 0976343290

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