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Comparing Capacity Utilisation, Allocative Efficiency and Financial Performance in the Trawl Fisheries of Brittany (1994-2003)

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Abstract
  • Overcapacity situations appear regularly in the activity of marine natural resource exploitation. The measure of capacity utilisation and allocative efficiency for fishing vessels is an approach that can determine the details of that overcapacity. On the one hand, DEA (Data Envelopment Analysis) methodology can be used in the case of multi-production to produce individual measures of economic performances, defined through the concept of efficiency. On the other hand, the assessment of financial performance requires the availability of individual data on cost and earnings for the same set of fishing firms. The former method is based on outputs (landings by species) and inputs (fixed and variable) and provides a relative measure for firms (or Decision-making units) being compared, hence at least one firm will lie on the frontier in a DEA analysis. In this context, capacity utilisation, technical efficiency and economic (or revenue) efficiency are main results derived from a linear programming model. Allocative efficiency can be derived from economic and technical efficiency as a final score. The latter approach gives a measure of financial performance from individual bookkeeping data. Gross revenue and gross surplus can then be used to compare financial performance of trawlers with their economic performance computed from DEA model. Both methods are used and compared for the same set of vessels, namely the commercial trawl fisheries of the French region of Brittany.
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  • Le Floc'h, Pascal and Simon Mardle. 2006. Comparing Capacity Utilisation, Allocative Efficiency and Financial Performance in the Trawl Fisheries of Brittany (1994-2003). In: Proceedings of the Thirteenth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 11-14, 2006, Portsmouth, UK: Rebuilding Fisheries in an Uncertain Environment. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2006. CD ROM. ISBN 0-9763432-3-1
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  • The National Oceanic & Atmospheric Administration Marine Fisheries Service, United States Department of Commerce (NOAA Fisheries); United Kingdom Department for Environment, Food and Rural Affairs (DEFRA); The United States Agency for International Development supported Aquaculture Collaborative Research and Support Program (ACRSP).
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