We explored the economic consequences for the Swedish fishery of
fishing cod and clupeids (sprat and herring) at different total allowable
catches (TAC) in the Baltic Sea. We compared profits in the fishery by
studying combinations of high and low TACs of cod and sprat, respectively,
based on biological scenarios.
The analysis contributes to the literature by
explicitly modeling how changes in the ecosystem could affect the optimal
fleet structure and economic performance of different fleet segments. The
Swedish fishery was used as a case study within the Baltic Sea,
acknowledging that the Baltic Sea is utilized for fishing by all states in the
region and that other countries might face other consequences.
Further, the fishing sector is a complex industry characterized by vessels
participating in multiple fisheries. Each vessel will exploit several fish
stocks enabling the fisherman to choose among stocks. If the fishing
possibilities change, the fisherman will look for alternative fishing activities
for using the company’s labor and capital assets. Thus - through rational
economic decisions made by the fishing industry - a management action in
one fishery will lead to effects in other fisheries that might be difficult for
managers to predict.The analyses were performed using the Swedish
Resource Rent Model for the Commercial Fishery, SRRMCF, which is an
economic model covering the entire Swedish fishery.
The main conclusions from the study were that it was more profitable to
fish the three species at FMSY than at the current utilization levels and that
the economic profitability could be further increased by up to 118 MSEK by
increasing the cod stock at the expense of reducing sprat abundance. These
effects rely on all stocks being fished at sustainable levels.
The report is joint research between AgriFood Economics Centre, the Swedish Authority for Marine and Water Management, and Department of Aquatic Resources at SLU.