Production Analysis of Commercial Fishing in the Lower Amazon

Abstract

"Over the last two decades the commercial fisheries of the Amazon have expanded considerably. Today a large and varied commercial fleet supplies the major urban markets of the region. It is estimated that this sector employs more than 30,000 people and generates over 100 million dollars annually in sales just on the first transaction.

"A recent study of the lower Amazonian commercial fleet analyzed the cost structure, profitability, economic efficiency and labour income based on landing data (n=3144) and economic interviews (n=70) with boat owners. Despite the apparent homogeneity in technology, this study revealed a considerable degree of differentiation of fishing strategies based primarily on the size of fishing vessels. The objective of the present study is to refine the initial analysis to understand further details of the production function of the fleet using a Cobb-Douglas function. This is a conventional model where the level or production depends on the level of input. Two dummy variables were added to the model to capture characteristics of gear and markets used by the boats.

"The model showed that the most important input was ice, followed by number of fishermen, capital and fuel. The values for the marginal productivity of capital, ice and fuel were higher for smaller boats then for larger ones. For labour the relationship was the opposite with marginal productivity higher for larger boats. Implications for management of these results were was outlined."