6. SOCIO-ECONOMIC ANALYSIS

6.1 Fish Prices
6.2 Financial Analysis of Fishing Operations
6.3 Employment in the Fishing Sector

6.1 Fish Prices

Fish prices fluctuate considerably in response to quality, time and quantity of landings, and supply of other foodstuffs, and any analysis of fish prices is complicated by the numerous fish species landed. Therefore any data on such prices need to be treated with some caution.

There has been no comprehensive report on fish prices in West Africa since the reports prepared by Lagoin and Salmon (196 and 1970). Nevertheless some scattered data on present prices have been presented and analysed here, and certain tentative conclusions drawn from the analysis. In general the data on fish prices throughout the Region are poor, and need to be improved if more definitive statements on, for example, trends in fishermen's earnings vis-à-vis the consumer price index are required.

It is apparent from the data presented in Table 6.1 that fish prices are generally lower in the northern part of the Region where fish are more abundant than in the southern part of the Region It is also apparent that the average ex-vessel price of fish caught by inshore vessels is generally higher than the price of fish caught by canoes.

This difference in price between canoe-caught and vessel-caught fish can partly be explained by the better marketing of vessel-caught fish. The fish is nearly always assured of a buyer because the vessel unloads in an urban centre (where not only is there a large market for high-priced fish but also sometimes a fishmeal plant for processing low-priced fish). Furthermore a number of vessels specifically aim to catch high-value species, which can sometimes be exported.

The canoe fishermen are not assured of a good price for their high-value fish, particularly if they land in isolated rural areas. Even if the quality of their catch is better than that of the vessels, they will often obtain a lower price for the fish, simply because transport costs must be taken into account before an urban market is reached. In the case of lower-valued fish such as sardinella, it appears that ex-canoe prices are not necessarily lower than ex-vessel prices, because the demand for the cheaper fish in rural areas is often higher than in urban areas. For example, in Senegal in 1964, the average ex-vessel sardinella price was 9 FCFA per kilogram whereas the lowest rural average price was 12 FCFA per kilogram. In 1974 the urban price for sardinella at 15 FCFA per kilogram was still lower than the average canoe price over the whole country, at 20 FCFA per kilogram.

Table 6.1 Comparison of prices of fish landed by canoes and inshore vessels (1964)

FCFA per kilogram
Country	Canoe	Vessel
Mauritania	28	27
Senegal	19	37
Gambia	21	·
Guinea	54	78
Sierra Leone	21	42
Liberia	19	47
Ivory Coast	27	46
Ghana	27	59
Togo	37	·
Benin	39	51
Nigeria	27	·
Cameroon	54	39
Equatorial Guinea	36	85
Gabon	37	80
Sao Tome and Principe	34	34
Congo	40	36
Zaire	30	30
Average	32	49

Source: Lagoin and Salmon (1967 and 1970)

Table 6.2 Ghana ex-vessel fish prices (1971-74)

Cedi per ton
Fishing technique	Year
	1971	1972	1973	1974
Distant water trawler	212	306	314	372
Inshore vessel	160	140	208	304
Canoe	134	142	306	313

Source: Department of Fisheries, Accra

Table 6.3 Morocco wholesale fish prices (1969-74)

Category of fish		Year
		1969	1970	1972	1973	1974
1st category		6.31	7.01	8.81	9.64	9.96
	percent increase		11.1	25.7	9.5	3.3
2nd category		2.22	2.31	3.29	3.44	3.35
	percent increase		4.0	42.4	4.6	- 2.6
3rd category		0.68	0.74	0.75	0.82	0.94
	percent increase		8.8	1.3	9.3	14.6

Source: Office National des Pêches, Casablanca

Table 6.4 Cameroon quayside fish prices (1971-74)

FCFA per kilogram
Type of fish	Year
	1971	1972	1973	1974
Imported frozen fish (ex-vessel)	42.1	40.6	39.1	44.0
Frozen fish from locally-based boats (ex-vessel)	50.3	58.9	86.1	99.5
Stock fish (CIF)	239.0	272.0	386.0	520.0

Source: Afrique Agriculture (1975)

Table 6.5 Selected data on average prices of fish landed by canoes and vessels (1974)

FCFA per kilogram
Country	Canoe	Inshore trawler	Purse seiner	Distant water caught frozen
Senegal	54	204	15	·
Ivory Coast	· · ·	64	50	·
Ghana	73	62	112	89
Cameroon	· · ·	· · ·	· · ·	99

Source: CECAF Project estimates

Table 6.6 Sierra Leone retail food prices (1962-75)

Cents per ten ounce piece
Food	Year
	1962	1964	1966	1968	1970	1972	1973	1974	1975
Dried bonga	14.3	12.1	10.4	11.1	11.5	10.8	12.9	15.1	16.3
Fresh fish	6.5	5.7	5.8	6.5	7.7	9.6	7.9	10.2	17.8
Rice	5.9	5.9	5.5	5.5	7.1	6.8	6.8	10.4	13.0
Beef	27.2	25.8	21.9	21.9	25.0	26.6	35.4	36.5	41.2

Source: Central Statistical Office, Freetown

Table 6.7 Liberia retail food prices (1964-74)

Cents per pound
	1964	1968	1972	1973	1974	Percent rise 1964-74
Sardinella eba dried	35.6	24.9	38.3	42.7	54.2	52.2
Pampano (Trachinotus spp.)	25.8	25.7	20.7	33.8	47.1	82.5
Horse mackerel	11.8	14.3	18.9	19.3	29.4	149.1
Croaker	13.8	14.0	19.1	22.1	32.2	133.3
2½ oz tin sardines	10.0	10.0	14.6	16.8	22.7	127.0
Brisket meat	60.0	60.0	60.0	69.4	83.9	39.8
Cassava	3.4	3.5	3.2	5.0	7.4	117.6
Rice	12.0	13.4	12.9	20.1	24.9	107.5

Source: Ministry of Planning and Economic Affairs, Monrovia

Table 6.8 Price of imported frozen fish (1964-75)

US dollars per ton
Country	Year
	1964	1973	1974	1975
Sierra Leone	138	129	242	· · ·
Liberia	162	342	· · ·	· · ·
Ivory Coast	· · ·	192	235	339
Ghana	200	·	·	·
Togo	167	168	199	254
Benin	176	153	· · ·	· · ·
Nigeria	154	346	· · ·	· · ·
Cameroon	· · ·	195	220	· · ·
Zaire	· · ·	322	300	· · ·
Average price U.S.$ per ton	166	231	239	296
FCFA per kilogram	33	54	53	60

Source: Lagoin and Salmon (1967) CECAF Project estimates

Table 6.9 Wholesale price of frozen fish imported into CECAF countries (1974)

FCFA per kilogram
Country	City	Species
		English name:	Horse Mackerel	Spanish Mackerel	Sardinella	Sea bream
		Russian name:	Stavrida	Skumbria	Sardinella	Karas
Sierra Leone	Freetown		86	86	96	106
Liberia	Monrovia		114	114	126	138
Ivory Coast	Abidjan		87	92	67	134
Togo	Lomé		98	113	95	121
Benin	Cotonou		123	131	117	148
Nigeria	Lagos		137	· · ·	96	· · ·
Congo	Brazzaville		160	150	·	210

Source: CECAF Project information

A study relating ex-vessel fish price to supply has recently been undertaken at Pointe Noire in the Congo (Le Gall and Petitjean, 1975). They were able to demonstrate that the supply of the pelagic shoaling fish sardinella can be so great that prices fall as landings increase. Indeed this fall in prices is so great that actual receipts from fishing diminish as landings increase. One conclusion is that the fish should be frozen and released at gradual intervals on to the market over a longer period and at a higher price. In contrast to the fast fall of sardinella prices as landings increase, the trawler-caught demersal fish price does not decline so dramatically as landings increase. Indeed the price stabilises at about 73 FCFA per kilogram, and the total receipts from fishing continue to increase in proportion to increased landings.

In general the West African fish prices are not affected by world fish prices because the majority of the fish locally consumed (including that landed by Soviet and East European vessels) is not traded internationally. Nevertheless the world fish prices do have particular relevance to the shrimp, squid and cuttlefish, tuna, and fishmeal that are produced locally and exported, and the prices are shown in Table 6.10. In some ports of the Region, such as Nouadhibou, the world prices have particular significance to the value of fish landings and particularly of sea breams and cephalopods. Since 1973, the world fishmeal price has declined considerably and this has had an important effect on the fishing sector of Morocco and Mauritania where a number of fishmeal plants have closed. The c.i.f. price of fishmeal in Western Europe in 1975 was about U.S.$ 250 per ton and the World Bank has forecast that the world market price in 1980 will be about U.S.$ 380 per ton at 1974 constant prices.

Table 6.10 Prices of internationally traded fish and fish products

US dollars per metric ton
Commodity	Year
	1966	1968	1970	1971	1972	1973	1974	1975
Skipjack tuna	292	288	349	408	446	497	599	519
Shrimp	740	770	1662	2125	2513	3349	2557	4409
Fishmeal	174	166	203	174	204	527	304	263
Squid/cuttlefish	637	738	1073	1544	1476	1680	· · ·	· · ·

Note: Tuna price, premium grade, ex-vessel California: shrimp price, ex-vessel U.S.A., South Atlantic and Gulf, weighted average all sizes/heads off weight; fishmeal, menhaden, U.S. East Coast; fresh squid and cuttlefish, Japan retail price.

Sources: National Marine Fisheries Service, Washington, D.C., and an FAO report quoting Annual Report on Family Income and Expenditure Surveys, Office of Prime Minister, Japan

6.2 Financial Analysis of Fishing Operations

There have been some important financial studies of theoretical fishing operations in Morocco, Senegal, Sierra Leone and Nigeria. It is hoped that, by summarising these studies, there will follow more intensive attention to basic data and that, in the near future, a better understanding of the financial criteria affecting fishing vessel operations will emerge. As a result of such studies, it should be possible to determine whether government incentives appear to be required to stimulate fishery investment and fish output.

Morocco has a fairly sophisticated fishery sector relative to the level of industrialisation achieved in fishing and fish processing operations in other countries of the Region. The fishing fleet is almost fully industrialised, and government accords grants and loans to companies and individuals for improvement of their vessels' fishing profitability. The Norwegian consultancy firm FIDECO studied the state of fishery development (FIDECO, 1974) in the country and analysed the financial operations of purse seiner vessels that were working in 1972. FIDECO grouped the fishing vessels into three size ranges, of less than 25 gross tons, 25 to 40 gross tons, and 40 to 60 gross tons. FIDECO examined the operations of the vessels based in Safi, Essaouira and Agadir and found that the internal rate of return for Safi vessels was negative, and that the rate of return for Essaouira and Agadir vessels was barely positive. In general the rate of return on vessels of the 25 to 40 gross ton range was higher than for other ranges. To some extent the losses of the Safi vessels can be absorbed by the owners, the canneries, for at least the vessels ensure a supply of fish to the canneries. However the key to increasing profitability appears to be in increasing the number of trips and number of hauls per year. In general FIDECO believe that the possibility of obtaining any reduction in operating costs is small unless the number of crew on each vessel is reduced.

FIDECO proposed that a larger vessel than presently used be introduced to the sardine fishery. Based on sardine prices of 200 to 300 dirham (U.S.$ 46 to 70) per ton, the vessel is projected to need to catch 3,900 to 5,800 tons per year to break even. The vessels would fish south of Agadir and would give priority to catching fish for the canneries. This means that brailing of the catch, refrigeration of the fish shortly after catching (primarily with boxing and ice), and a high frequency of calls in port for landing are central operational features. Capital costs are reduced by the investment grant which is 20 percent of the capital cost of the new vessel and revenues are boosted by an 8 percent government subsidy granted to increase landing prices.

Table 6.11 Summary of Morocco purse seiner operations.

Guidelines on operations: generally 35-45 GT, with engine of 150-350 HP, catching 5-6 tons per trip, 175 trips per year, 50% catch sold to canneries at 400 DH (U.S.$ 93) per ton, and 50% catch sold to meal plants at 200 DH (U.S.$ 46) per ton.

thousand US dollars
		Size (gross tons)
		-25	25-40	40-60
Capital cost		35	46	58
Revenue
	Agadir	40	56	59
	Essaouira	·	56	·
	Safi	23	35	43
Operating costs		14	16	20

Source: FIDECO (1974)

Table 6.12 Specifications and costs for proposed FIDECO purse seiner operation

	Unit
Length	metres	28.5
Engine	horsepower	600
Catch per year	tons	3,900 to 5,800
Capital cost	U.S.$ '000	651
Operating costs	U.S.$ '000	126
Catch sales	U.S.$ '000	249

Source: See Table 6.11

Table 6.13 Fishing costs and operations of a Senegal handliner

thousand FCFA
Specifications and capital cost:
	Length, 16.0 metres; crew, 10; engine, 70 HP
	Cost		19,845.0
Operating costs:
	Fuel, ice, maintenance, etc.	3,800.0
	Crew	4,800.0
	Owners' costs	3,600.0
			12,200.0
Revenue:
	120 tons p.a. x 120 FCFA/kilogram		14,400.0

Source: FAO (1975b)

Table 6.14 Costs of a refrigerated cargo carrier based in Senegal

thousand US dollars
Specifications and capital cost:
	Length, 277 feet; deadweight, 1,950 tons; crew, 16; trips, 24 round trips p.a., 250 sailing days
	Cost		6,000.0
Operating costs:
	Fuel, maintenance, etc.	665.0
	Crew	252.0
			917.0
Revenue:
	Based on 43,000 tons sardinella at U.S.$ 49 per ton and no return freight		2,107.0
	Based on 43,000 tons sardinella and 25,000 tons tuna on return at U.S.$ 31 per ton		2,108.0

Source: FAO (1974a)

Table 6.15 Key features of fishing vessel operations in Sierra Leone

	Unit	Artisanal	Trawler/purse seiner	Purse seiner	Purse seiner	Tuna pole and line	Freezer trawler
Length	Feet	27	40	70	62	· · ·	· · ·
Engine	Horsepower	30	100	250	420	200	1,000
Fishing time	Days	200	200	200	300	· · ·	200
Catch per day	Tons	0.125	1.2	17.5	14	· · ·	8.5
Catch per year	Tons	25	240	3,500	4,200	460	1,715
Value per ton	U.S.$	304	152	46	50	400	350
Catch value	U.S.$ '000	7.6	36.5	162	210.6	184	600
Capital cost	U.S.$ '000	8.1	33.9	4001/	269.1	2001/	1,0001/
Operating costs	U.S.$ '000	2.3	20.5	108	103.2	155	430
Source		PROPESCA	PROPESCA	FAO	PROPESCA	FAO	FAO

^1/ Second hand vessels 5 years old
Source: PROPESCA (1974) and FAO (1975c)

Table 6.16 Operations of a gillnet (set net) and ring netting canoe in coastal waters, Nigeria

naira
Capital costs:
	Canoe (8-10 metres)			600
	Outboard (33 horsepower)			800
	Ring net and gillnets			1,920
	Total				3,320
	8 fishermen for ring netting
	3 fishermen for gill netting
Operating costs:
	Labour at N 1/man/day
		ring netting (80 days)		640
		set netting (120 days)		360
	Fuel at 56.3 litres/day at 8.9 kobo/litre			1,000
	Lubricant 37.5 kg/day			75
	Maintenance,		engine	100
			canoe	25
			gear	100
	Total				2,300
Returns:
	Bonga, 7,600 pieces (2.16 tons) per day for 80 days at N 5 for 200 pieces (about 125 lb or 57 kilograms)			15,200
	Others, 6.4 mt p.a. at N 440/mt			2,816
	Total				18,016
Upkeep of fishermen for non - fishing days
	Ring net fishermen - 285 days at N 1/day			2,280
	Gillnet fishermen - 245 days at N 1/day			735

Source: Federal Department of Fisheries, Lagos

6.3 Employment in the Fishing Sector

Data on employment in fishing, fish processing, distribution and marketing are a particularly important guideline to the level of fishery development in a country and the contribution of the fishery sector to national socio-economic development. Yet such data as are available in CECAF countries on employment are rarely adequate for satisfactorily obtaining such a guideline.

In general it is relatively easy to estimate the number of persons engaged in fishing on the basis of the number of vessels and canoes based in a country, multiplied by the average number of crew per vessel. Nevertheless, it is often difficult to know how many vessels are continually operating and how many of the crew are fishing full-time rather than part-time, and a number of full-time fishermen use only beach seines and traps and never fish from canoes.

However it is even less easy to estimate the number of persons involved in fish processing, distribution and marketing (Table 6.17). Women (or mammies) have a tight control of the retail fish markets in many countries and the intensive labour employed in this marketing can involve numerous members of a woman's family, depending on time of day, day of the week, or season. Often the fish is smoked prior to sale. In Nigeria it is estimated that 10 persons are employed in the fishing sector on shore to every person employed in a canoe or vessel, but this ratio is not necessarily characteristic of all West African countries.

Table 6.17 Employment in marine fisheries

Country	Fishing	Processing, marketing, etc.
Morocco	15,000	20,000
Mauritania	2,500	2,000
Senegal	30,000	3,000
Gambia	1,500	· · ·
Gape Verde	1,500	· · ·
Guinea	5,000	· · ·
Sierra Leone	12,000	· · ·
Liberia	3,000	1,000
Ivory Coast	16,000	· · ·
Ghana	66,000	· · ·
Togo	4,000	· · ·
Benin	3,000	2,500
Nigeria	61,000	· · ·
Cameroon	12,000	· · ·
Equatorial Guinea	5,000	500
Gabon	1,500	500
Sao Tome and Principe	2,800	· · ·
Congo	1,000	· · ·
Zaïre	500	· · ·

Source:

Lagoin and Salmon (1967 and 1970)
FAO Fishery Country Profiles
CECAF Project estimates

Table 6.18 Indicative investment and employment in fishing units

Unit	Length metres	Tonnage GT	Engine horsepower	Investment x $ 1,000	Employment	$ 1,000 per job
Canoe	8	· · ·	20	2.5	5	0.5
All-purpose vessel	9	· · ·	30	20.0	9	2.2
Handliner	16	· · ·	70	90.0	10	9.0
Trawler	15	45	200	120.0	10	12.0
	20	90	365	200.0	15	13.3
	25	120	450	300.0	20	15.0
	75	2,000	3,500	6,000.0	60	100.0
Purse seiner	18	80	210	200.0	14	14.3
	28	150	600	667.8	20	33.3
Tuna pole and line	16	50	200	200.0	23	8.7

Source: CECAF Project estimates

This sort of analysis should be treated with some caution as so many combinations of investment and employment creation are possible. For example sometimes the low employment on vessels is compensated for by high employment in on shore processing and in marketing operations. Furthermore, this type of analysis does not take into account the value added to be expected from each type of investment.

Some areas where future attention might be focused to evaluate the role of government development strategies in affecting employment are: (i) the effect of canoe motorisation on employment, either in actual fishing, or in increased employment in the processing and marketing network to deal with increased catches, (ii) the various options open to government in increasing fishery employment in rural and/or urban areas, and (iii) the role of subsidies and/or price increases in increasing employment.

Table 6.19 Indicative investment and employment in processing plants

Unit	tons of raw material per day	$ 1,000 invested	Employment	$ 1,000 per job
Fish fillet, freezing and cold storage	5	80.0	40	2.0
Shrimp freezing and cold storage	1	60.0	25	2.4
Canning	10	100.0	100	1.0
Fishmeal plant	20	100.0	20	5.0
	50	400.0	25	16.0
	100	700.0	30	23.3
Ice plant	20	120.0	6	20.0
	100	500.0	10	50.0

Source: CECAF Project estimates