4. Latin America

4.1 Argentina

Fishing fleet

	Deep sea fleet			Inshore fleet		Total
	Ice trawlers	Freezing vessels	Factory vessels	Coastal vessels	Artisanal boats
Average hold (m 3)	286	693	1 181	80	15	-
Number	196	360	36	200	373	1 165

Fishing areas by main species

Argentine hake:	All year latitude 34° to 46°S; different locations and depth
Southern blue whiting:	Winter, spring: latitude 37°7 to 54°S
	Summer: latitude 42° to 54°S
	Principal area: continental slope and Malvinas islands
White Croaker:	All year
	Buenos Aires coast up to San Matias Gulf
Argentine anchovy:	Spring: off Mar del Plata shore
	Summer: latitude 38°30 to 40°S
	Autumn: latitude 38° to 40°S, continental slope
King clip:	Winter: latitude 41° to 48°S
	Summer: latitude 43°5 to 48°S, continental shelf and slope
Patagonian grenadier:	Winter: latitude 50° to 50°5S and 53° to 54°S
	Summer: latitude 50°5 to 54°5S and NW Malvinas, continental slope.
Patagonian tooth fish	Winter: large concentrations latitude 37°5 to 39°5S
	continental slope and southof Malvines latitude 52°5 to 54°5 S
	Summer: scattered
Sea trout:	All year
	Buenos Aires coastline
Mackerel:	December to April beginning of concentration near Mar del Plata
	Catches latitude 23° to 43°S
Grouper:	All year
	Along coastline; major concentrations: N.San Jorge Gulf and Valdes peninsula.
Flounder:	All year; all along continental slope
Flat head:	All year; temperate waters, all along the coast
Argentine squid:	Summer concentrations off Puerto Deseado and Golfo Nuevo
	Autumn: latitude 38° to 47°S
Shrimp-prawn:	June to March
	Patagonian littoral and Buenos Aires coast
	Standing out San Jorge Gulf and Camarones Bay

Purse seiner, Argentina

Fisheries legislation and regulations

By law existing fishing resources are considered to be under Argentine sovereignty, up to 200 n mi. In principle, this zone can only be exploited by vessels with Argentine flags and holding a licence previously granted by the competent authority.

Since 1992, a decree allows the chartering of foreign flag vessels for periods of three years. Argentina and the European Union have signed a fishing agreement for an annual catch up to 250 000 tons during an initial five-year period.

Since 1970, the sovereignty of the provinces is recognized up to three n mi from shore. The Secretaria de Agricultura, Ganaderia y Pesca, rules and enforces the regulations, decrees and laws related to fisheries especially: fees for each category of fishing boat; bans and restrictions for fishing and gears; safety of fish as food.

Fishing permits range from US$500 to 10 000 per boat, for a maximum period or three years.

In December 1996 new fishing permits were suspended for one year

Age structure of fleet

Age in years	Deep sea fleet			Inshore vessels		Total
	Ice trawlers	Freezer vessels	Factory vessels	Coastal vessels	Artisanal boats
> 35	46	4	-	39	232	321
25 to 35	51	41	8	33	31	164
15 to 25	32	117	20	32	22	223
5 to 15	43	174	8	41	18	284
< 5	24	24	-	47	16	111
Not specified	-	-	-	8	54	62
Total	196	360	36	200	373	1 165

Techno-economic and operational characteristics of individual fishing units

Type of vessel	Length (m)	KW	On board facilities / storage	Fishing gear	Crew size (1)	Fishing days
Ice trawlers
25 m	25	515	Ice + fishhold 64 tons	Bottom trawl	10
30 m	30	661	"	"	13
			100 tons
35 m	35	956	" 170 tons	"	18	234

(1) Estimate

Financial and economic characteristics of individual fishing units

Investment costs (in US$)

Investments in US$	Hull, engine and propulsion, fishing gear
Type of vessel
Ice trawler 25 m	780 000
Ice trawler 30 m	1 200 000
Ice trawler 35 m	2 000 000

Economic and financial performance (in US$)

Type of vessel	Trawler 25 m	Trawler 30 m	Trawler 35 m
Total earnings	855 000	1 050 000	1 940 000
Running costs
Fuel	121 900	134 160	234 050
Harbour dues	64 540	71 030	123 910
Ice	78 880	86 810	151 440
Total running costs	265 320	292 000	509 400
Labour charges
Labour shares, wages	172 460	189 790	331 110
Social insurance	92 860	102 200	178 290
Other labour charges
Total labour charges	265 320	291 990	509 400
Vessel costs
gear expenses
Repairs and maintenance	71 710	78 920	137 680
vessel insurance	7 170	7 890	13 770
General expenses	57 370	63 130	110 140
Total vessel costs	136 250	149 940	261 590
Total costs / expenses	666 890	733 930	1 280 390
Gross cash flow	188 110	316 070	659 610
Depreciation	50 200	55 240	96 370
Interest	(1) 31 600	(1) 48 600	(1) 81 000
Net cash flow	106 310	212 230	482 240

(1) Average amount for repayment on eight year loan 80 percent of investment.
Interest rate nine percent.

Financial services available to fisheries sector

The general conditions for financing enterprises can be applied to the fisheries sector as follows.

Terms of finance:

- Loan is provided for 70 to 90 percent of the total investment;
- loans are provided for capital assets and / or working capital;
- all sizes of enterprises have access to credit;
- repayment period: 2-8.5 years;
- interest rate = 6.5 to 12 percent

4.2 Peru

Purse seiners, Peru

Purse seiners, Peru

Purse seiners, Peru

Fishing fleet

No.	Category of fishing vessels	Type of fishing	Species
	Industrial and semi-industrial
620	Fishing for fish meal industry (fishhold with refrigeration and ice)	Purse seine	Anchovy Sardine
110	Fishing for canning industry or direct consumption (RSW, CSW or ice)	Purse seine	Sardine Chubmackerel Scad
70	Fishing for direct consumption (fishhold with preservation) - ice 90 % - freezing 10 %	Trawl	Hake
	Artisanal fishing
6 250	Essentially wooden boats - 65 % motorised - 35 % non motorised Fishhold capacities 25 % < 1 m tonne 26 % 1 to 2 m tonne 28 % 2 to 5 " 11 % 5 to 10 " 10 % 10 to 30 "	40 % gillnets 20 % handliners 4 % longlines

Fisheries legislation and regulations

- Industrial and semi-industrial vessels operate beyond the 5 n mi limit from shore up to 40- 70 n mi;
- artisanal boats can fish within the 5 n mi limit; most or them extend operations up to 30 n mi and even 80 n mi (longliners).

Main regulations

Minimum sizes for fish and for net-meshes:

Anchovy: minimum size		2 cm minimum mesh-size 13 mm
Sardine	26	38
Chub-Mackerel	32	38
Scad	34	38
Hake	35	110

For purse seiners and trawlers: strict replacement of old vessels, which equal capacity fishing units (volume of fishhold); no increase of fishing effort is permitted.

For hake: vessels longer than 70 m and larger than 1 400 m³ are banned; fishing areas need to be beyond 5 n mi and further than 10 n mi when processing on board; purse seiners are prohibited.

Age structure of fleet

Years	Purse seiners fishing for fishmeal	Purse seiners fishing for canneries	Trawlers fishing hake
> 33	10	-	6
28 - 32	210	15	24
23 - 27	200	13	1
18 - 22	20	-	12
13 - 17	-	11	6
8 - 12	10	-	3
3 - 7	70	11	13
< 3	100	60	5
Total	620	110	70

Techno-economic and operational characteristics of individual fishing units

Types of vessel	Length (m)	KW	On board facilities / storage	Fishing gear	Crew size	Ownership	Fishing days
Purse seiners Fishhold of
35 m3	14.1	147	Fishhold 35 m3	Seine 290 x 37m	6	Company	200
120 m3	21.5	257	120 m3	450 x 70m	10	Company	200
180 m3	25.4	279	180 m3	500 x 80m	11	Company	200
270 m3	31.1	419	270m3	615 x 85m	13	Company	200
350 m3	36.4	632	Ice + fishhold 350 m3	800 x 115m	14	Company	200
Trawlers
80 m3	19.7	305	Ice + Fishhold 80 m3	trawl	10	Company	220
140 m3	28.8	636	140 m3	trawl	11	Company	220
220 m3	33.1	672	220 m3	trawl	15	Company	220

Financial and economic characteristics of individual fishing units

Investment costs (in US$)

Investments	Hull	Fishhold	Deck equipment	Engine and propulsion	Fishing gear	Total value
Depreciation rate	4 %	4 %	10 %	10 %	20 %
Type of vessel
Purse seiner
35 m3
120 m3	554 000		73 000	83 000	110 000	820 000
180 m3
270 m3	1 007 000		175 000	313 000	250 000	1 745 000
350 m3	1 307 000	130 000	260 000	383 000	280 000	2 360 000

Economic and Financial Performance (in US$)

Type of vessel		Purse seiner 35 m3	Purse seiner 120 m3	Purse seiner 180 m3	Purse seiner 270 m3	Purse seiner 350 m3
Total earnings		200 000	480 000	600 000	1 080 000	1 650 000
Running costs
	Fuel	25 000	80 000	110 000	150 000	220 000
	Lubricant	3 000	8 000	11 000	15 000	22 000
	Harbour dues	2 000	4 000	4 000	5 000	6 000
	Other running costs	1 000	2 000	2 000	3 000	3 000
Total running costs		31 000	94 000	127 000	173 000	251 000
Labour charges
	Labour share, wages	35 000	75 000	150 000	210 000	222 000
	Social insurance	16 000	39 000	72 000	100 000	108 000
Total labour charges		51 000	114 000	222 000	310 000	330 000
Vessel costs
	Gear expenses	2 000	3 000	4 000	4 000	5 000
	Repairs and maintenance	12 000	38 000	65 000	85 000	100 000
	Vessel insurance	10 000	16 000	18 000	23 000	30 000
	General expenses	12 000	29 000	32 000	37 000	45 000
Total vessel costs		36 000	86 000	119 000	149 000	180 000
Total costs / expenses		118 000	294 000	468 000	632 000	761 000
Gross cash flow		82 000	186 000	132 000	448 000	889 000
	Depreciation	(1)30 000	59 760	(1)85 000	139 080	177 780
	Interest (2)	20 500	33 600	49 200	71 500	96 800
Net cash flow		31 500	92 640	2 200	237 420	614 420

(1) Estimate
(2) Average amount for repayment on seven year loan 80 percent of investment. Interest rate nine percent.

Type of vessel		Trawler 80 m3	Trawler 140 m3	Trawler 220 m3
Total earnings		697 500	842 810	962 940
Running costs
	Fuel	77 000	132 000	308 000
	Lubricant	5 000	8 000	17 400
	Ice	83 600	92 400	154 000
	Other running costs	1 000	1 100	1 100
Total running costs		166 600	233 500	480 000
Labour charges
	Labour share, wages	94 800	105 600	176 000
Total labour charges		94 800	105 600	176 000
Vessel costs
	Gear expenses	10 000	13 000	15 000
	Repairs and maintenance	20 000	25 000	35 000
	Vessel insurance	2 600	3 000	3 500
	General expenses	8 000	9 900	11 000
Total vessel costs		40 600	50 900	64 500
Total costs / expenses		302 000	390 000	721 000
Gross cash flow		395 500	452 810	241 940
	Depreciation (1)	50 000	65 000	100 000
	Interest (2)	25 400	47 100	67 600
Net cash flow		-320 100	-340 710	-74 340

(1) Estimate
(2) Average amount for repayment on seven year loan 80 percent of investment.
Interest rate nine percent.

Financial Services available to fisheries sector

A number of specialized credit/investment programmes are available for the fisheries sector.

Purse-seiners and trawlers:

No discrimination is made between local and foreign investors. The new financial norms include the financing of joint ventures on the following terms:

Programmes	Terms of payment years	Amount of loan US$	Financing level
PROPEM	2 / grace 7 / repayment	2 000 to 140 000	70 % of investment
MULTISECTORIAL	2 / grace 7 / repayment	50 000 to 5 000 000	60 % of investment
FIMEX	1 year	100 000 to 1 000 000	90 % of investment
EXPORT-FLAR	6 months	50 000 to 1 000 000	100 % of financing
CAF	"	10 000 to 1 000 000	100 % of financing
FLAR	"	100 000 to 2 000 000	90 % of investment

Any commercial bank or financial institution can provide credit for fishery enterprises, based on the above conditions. Rates are discussed for each project separately and there are no capital subsidies and tax exemptions.

Artisanal fishing sector:

This sector is catered for by the National fund for the development of artisanal fishing sector: FONDEPES.

Type of vessel	Freezer trawler	Freezer trawler	Freezer trawler	Tuna seiner	Tuna seiner	Tuna seiner
	56 m	57 m	80 m	56 m	64 m	70 m
Total Earnings	2 283 610	3 564 050	2 365 720	4 262 580	6 259 400	5 321 680
Running costs
Fuel	176 120	295 120	489 090	477 190	596 190	515 270
Lubricant	10 710	20 230	17 850	33 320	59 500	52 360
Harbour dues		28 560	165 410			32 130
Salt				66 640	71 400	60 690
Food	28 560	48 790	96 390	105 910	117 810	154 700
Costs of selling fish	183 260	379 610		1 150 730	1 686 230	1 493 450
Other running costs		53 550		15 470	13 090	20 230
Total running costs	398 650	825 860	768 740	1 849 260	2 544 220	2 328 830
Labour charges
Labour share, wages	593 810	653 310	534 310	721 140	971 040	1 031 730
Social insurance	128 520	229 670	133 280	180 880	182 070	257 040
Other labour charges		28 560	9 500	148 750	227 290	91 630
Total labour charges	722 330	911 540	677 110	1 050 770	1 380 400	1 380 400
Vessel costs
Gear expenses		49 980	115 430	130 900	117 810
Repairs and maintenance	101 150	254 660	229 670	358 190	714 000	636 650
Vessel insurance	73 780	123 760	65 450	94 010	123 760	73 780
General expenses	298 690	320110	55 930	568820	775880	411 740
Total vessel costs	473 620	748 510	466 480	1 151 920	1 731 450	1 122 170
Total costs / expenses	1 594 600	2 485 910	1 912 330	4 051 950	5 656 070	4 831 400
Gross cash flow	689 010	1 078 140	453 390	210 630	603 330	490 280
Depreciation	(1) 223 450	233 240	(1) 350 000	(1) 380 000	416 500	(1) 500 000
Interest (2)	197 700	205 500	283 000	182 200	193 850	205 000
Net cash flow	267 860	639 400	-179 610	-351 570	-7 020	-214 720

(1) Estimate
(2) Average amount for repayment on 13 year loan 80 percent of investment.
Interest rate nine percent.

Terms of Finance:

Amount of credit:

Volume of fishhold (metric tonnes)	Building Material	Region	Amount of Credit US$
<2	Wood	N and S	8 000
3	Wood	N and S	10 000
3	Fibreglass	S	29 000
3	Fibreglass	N	20 000
4	Wood	S	13 000
4	Wood	N	30 000
4	Fibreglass	N and S	35 000
6	Wood	S	16 000
6	Wood	N	38 000
6	Fibreglass	N and S	52 000

Requirements:

Mortgage up to 10 percent of loan (wooden boats)
Mortgage up to 4 percent of loan (fibreglass boats)

Terms of payment:

Amount	Repayment - months	Grace period - months
Up to US$6 500	30	1
US$6 501 to 20 000	42	1
More than US$20 000	48	1

Interest rate : No interest