EwE Economics

Beth Fulton2012

Costs and prices

Simple bioeconomics

Prices x Costs x

Costs and catch in space = Ecospace

Spatial bioeconomics

Differential implications of management

Spatial bioeconomics

Costs increased, but stocks

high

Costs unchanged, but stocks depleted

Economic chains (potential amplification and knock on effects)

Value Chains

Basic chain idea:

Value Chains

In business theory has more aspects (not all covered in the EwE tool)

Value Chains

SRL Fishers (3 types)

Fish receivers

Interim storage

Pro-cessors(North

& South)

Chinese Importer

Interim Transport

Primary wholesale

Secondary wholesale

Interstate Restaurant

s

Sydney fish

market

Melb. fish

market

Export Destination

Consumers

Interstate retailers

Tasmanian Southern Rock Lobster (SRL)

Lease quota fishers

Quota owner

operators

Day fishers

Burnie airport

Hobart airport

Bass Strait ferry

Australian mainland consumer

s

Chinese consumer

s

20%

30%

70%

5%

Tasmanian consumers

Tasmanian Restaurants

Tasmanian retailers

3%

2%

≈5%

50-70 %*

Vietnam

Philippines

Re-packaging≈10%

20-40 %*

By: Anna Farmery, Ingrid van Putten and Bridget Green (2012)* Australian sales and export figures vary by year

TRL Fishery

(3 sectors)

Fish receivers (drop off points)

Chinese Importer

Interim storage

Airfreight to processors

Export Destination

Consumers

Torres Strait Tropical Rock Lobster (TRL)

TIB (indigenous)

fishers

TVH (non-

indigenous)

fishers

PNG fishers

Chinese consumer

s

Casual fishers

Part –time fishers

Full-time fishers

Operating out of

Queensland

Operating out of

Thursday Island

Return to outer island

Return to Thursday

Island

Return mother-ship then Cairns

Return to PNG

TRL fisher types

Freezer & pond

storage (on island)

Freezer & pond storage (Thursday or Horn Island)

Cairns processor

s

Processor pick-up Cairns wharf

American importer

American consumer

s

Australian (mainland) consumers

37%

37%

35%

65%

45%

55%

25%

Airf

reig

ht &

Sea

fre

ight

5%

45%

50%

383 t tails

320 t live

17 t live

Adapted from Hutton and van Putten et al (2012)

Ecopath (& Ecosim) tool

Value Chains - Ecopath

Default chain available (aggregate for the whole system)

Value Chains – Defaults

Can define own chains (multiple chains)

Value Chains - Chains

Parameterise producer economic values

Products ($/t) Tickets ($/effort) Revenue ($/effort) Wages ($/t or %) Taxes and Subsidies ($/t) Workers (#/t) Owners (#/t) Social dependency (#/worker)

Producers

Parameterise processor economic values

Products ($/t) Wages ($/t or %) Taxes and Subsidies ($/t) Workers (#/t) Owners (#/t) Social dependency (#/worker)

Processors

Parameterise transport economic values

= distributors Products ($/t) Wages ($/t or %) Taxes and Subsidies ($/t) Workers (#/t) Owners (#/t) Social dependency (#/worker)

Transport

Parameterise market economic values

Products ($/t) Wages ($/t or %) Taxes and Subsidies ($/t) Workers (#/t) Owners (#/t) Social dependency (#/worker)

Markets

Easy bit….

Consumers

Or component entry All the same parameters Component type at a time

Spreadsheets

Static outcome based on parameters & ecopath

Value Chains

Dynamic outcome based on parameters & ecosim

No ecospace yet

Value Chains – Through time

Revenue

Profits

Costs

Value Chains – Example

Value Chains – Example

Thank you