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Quagrainie0197poster.pdf

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https://ir.library.oregonstate.edu/concern/conference_proceedings_or_journals/ws859k380

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  • The study examined the determinants of profit margins earned by artisanal fishermen in Ghana using the concept of percentage contribution margin. The effects of selected variables on margins were examined for two marketing agents - spouse and other agents. A system of equations were estimated separately for the major and minor fishing seasons and a combined season for the agents. The percentage of fish sold through the spouse is found to negatively impact contribution margins, suggesting that spouses are perhaps the last resort fishermen use to sell fish. This is a departure from traditional culture where spouses handled fish sales and revenues. Self-financing of fishing activities and boat size are found to positively impact margins and the percentage of fish sold through the spouse. Self-financing and boat size have relatively large impacts on margins. The positive impact of self-financing may be attributed to lower transactions costs while the impact of boat size may result from cost efficiencies, higher catches, and higher revenues. The effects of gear used, i.e., nets and hook-and-line on profit margins are positive. Nets can be targeted at shoals of fish and could result in large quantities of harvest, especially in the major fishing season. The use of hook-and-line is only significant in the minor season for margins earned from selling through other agents. Overall, the study reveals that economic considerations appear to be driving fishermen's choice of marketing agents. As price takers, fishermen can improve profitability through minimizing costs, and improving cost and operational efficiencies.
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