1. COST AND EARNINGS OF
FISHING VESSELS
BY
JUBIYA SURESH
SCHOOL OF INDUSTRIAL FISHERIES
CUSAT

2. BACKGROUND
 DURING 1990’S FAO studied the viability of
Worlds fishing fleets
 Data needed size of the fishing fleet and
recorded landings
 Result costs exceeded incomes by
substantial amounts.

3. Marine fishing industry
Includes three principal units -Traditional,motorized,mechanised units
Traditional fishing unit:
small-scale fishing using traditional methods.
Crafts includes catamarans, canoes, coracle etc.
Gears includes throw nets, dragnets etc.
Comprises few labours ,small amount of capital.
Motorized fishing unit: traditional crafts are motorized.
Mechanized fishing unit:
Capital intensive large scale fishing
Uses highly mechanized crafts such as line boats, gill-
netters, trawlers.
High production capacity& catch /unit operation.
MECHANIZED BOAT

4. Major findings of the study
 Inspite of heavily and overexploited fishery
resources marine capture fishery is still
economically viable
 Source of income and generate employment
foreign exchange earnings

5. World wide trend
 AFRICA
Drift netters
small s Hook and line
fisheries
Purse seining,
Small scale gill shrimp trawling
netters Pole and lining
NEGATIVE CASH ECONOMICALLY
FLOW VIABLE

6.  ASIA
Small scale
gillnetters,
smaller bottom
pair trawlers
purseseine.,bottom and NEGATIVE
midwater trawlers, pair CASH FLOW
trawlers,jiggers,long liners,
pole and line vessels
ECONOMICALLY
VIABLE

7. Developed countries Developing countries
 Labour cost only account
 Labour cost is the most for between 17 and 40% of
important component total operating cost
 Second important is  Running and vessel costs
running cost accounts for the major
share

8. INDIAN CONTEXT………..
Seiners and hand
liners
NEGATIVE
CASHFLOW
POSITIVE NET
SURPLUS
Tuna long
liners,purseseiners,
trawlers

9. Fishing fleet
Fishing crafts
Traditional : plank built canoe, dug out, catamaran, coracles.
Motorized : canoe, catamaran with outboard motors.
Mechanized : trawlers, gillnetters,purse seiners ,pole & liners.
There are about 2,43,939 fishing crafts for marine fishing.
It includes 107448 traditional,76748 motorized traditional &
59743 mechanized boats.
catamaran Motorized canoe trawler

10. Fishing gears in India
Trawl net Gill net Seine net
Bottom trawling fish trap Scoop net

11. Small crafts below 40 m are
vanishing from the sector??
Substantial rise in the fuel
cost
Increase in the operational
cost
Poor economic returns

12. ECONOMIC ANALYSIS
FIXED COST
INTEREST ON CAPITAL
DEPRECIATION COST OF
CRAFT GEAR AND ENGINE
FUEL CHARGES,CREW
SHARES,AUCTION
CHARGES FOOD
ALLOWANCES ICE AND
OTHER MISCELLANEOUS VARIABLE COST
EXPENDITURES

13.  EARNINGS Profit earned by the operator
only if total cost less than
total revenue
 BREAK EVEN POINT
Point at which GAIN=LOSS
In fishing operation is the level
of output at which the revenue
by fishing is exactly equal to
the cost of working of output

14. Break even point

15.  TOTAL REVENUE Obtained by multiplying
the number of fishing days or month with
revenue per day. this revenue is multiplied by
12 to obtain revenue of the year
NET PROFIT=TOTAL REVENUE-TOTAL COST
GROSS PROFIT=TOTAL REVENUE-VARIABLE COST

16. RETURN ON INVESTMENT=(NET REVENUE/INITIAL
INVESTMENT)*100
PAY BACK PERIOD=INITIAL INVESTMENT / NET PROFIT

17. A) initial investment Craft+gear+others
Depreciation of craft
B)Fixed cost ,gear ,and
others+interest on
capital
repair and
C)operating cost maintenance of craft
,gear ,and
others+wages

18.  TOTAL COST FIXED COST+OPERATING
COST
NET OPERATING INCOME
FIXED COST – OPERATING COST
PROFIT GROSS REVENUE – TOTAL COSTS

19.  CMFRI Cochin has selected cochin fisheries
harbour for surveying of trawl units in 1991

20. OUTCOME OF THE STUDY
 Most of the trawlers were 32 footers and
operate up to 70 m depth
 Cost of the trawlers Rs 4 lakh
 Depreciation Rs 83,333

21. Catch composition
catch
crustacean
perches
carangids
cephalopod

22. RETURNS
 Gross annual revenue of a trawl unit at
cochin fisheries harbour during 1991 was
Rs 8,51,085
Annual net operating income 2.64 lakhs for
253 days
Net annual profit of a trawl unit Rs 67,491

23. Thankyou
for your
attention