Mejora de la convivencia escolar

Pond fishing accounts for about 25 percent of total fish production (Table 4.2). Production costs of pond fisheries include costs for fingerlings, fertilizer, feed (rice bran, oil cake), predator control, disease treatment and labour charges. Production costs and returns from pond aquaculture have been calculated by DANE)A* in 1987. The study was carried out in Mymensingh district. Estimated production costs are TK 26,413/ha. In addition to these costs there is a cost for harvesting which is TK 17,500/ha. Harvesting cost is the cost of catching fish.

Gross revenue from pond fishery is estimated to be TK 87,500/ha which implies that the rent is TK 43,587/ha (revenue minus production costs). This implies that the rent is 50 percent of the total revenue. These estimates overstate rent as land costs are not included. Average land rent in 1987 was about TK 10,000/ha in Mymensingh (BBS, 1988). Adjusting the rent by deducting land cost, a rent equal to TK 33,587/ha is obtained. This is 38 percent of the revenue from the pond fishery. Revenues, costs and economic rent from pond fisheries are presented in Table 4.8.

The total depreciation in the pond fishery (DEPp^^j) is calculated in the following way. The resource rent per ha is converted to the rent per kg of fish catch. The rent per kg is then multiplied by the total catch of pond fish in a year.

Rent per ha

Total catch of pond fish (1987) Total area under pond fishery Catch per ha Rent per kg DEPp„„, TK 33,587 (from Table 4.8) 149,420 tonnes or 149,420 x 1000 kg 146,890 ha 1017.2 kg" TK 33'° TK 33 X 149420 x 1000 TK 4.93 billion

** Danish aid agency working in Bangladesh. " 149,420 X 1000 kg - 146,890 ha = 1017.2 kg/ha 10

Using deflators for fisheries sector (given in Appendix A1.3) depreciation for other years is calculated in Table 4.12.

Table 4.8 Economic rent from pond fisheries, 1987 (TK/per ha)

TK/Pond TK/ha Gross Revenue 13,125 87,500 Production Costs Fingerlings 400 2,667 Fertilizer 557 3,713 Feed 1,680 11,200 Predator Control 375 2,500 Disease Treatment 150 1,000 Labour Charges 800 5J33

Total Production Costs 3,962 26,413

Harvesting Costs 2,625 17,500

Land Costs - 10,000

Total Costs - 53,913

Economic Rent

Economic Rent as Percentage of Gross Revenue

33,587 38%

Source: Based on the estimates by DANIDA, 1987.

4.3.2 Depreciation in the Shrimp Farm

Shrimp farms account for 5 percent of total catch. Shrimps are cultured in coastal areas (Khulna and Cox’s Bazar). Though the share of shrimp is not high but it an important sector because of its export potential.

An analysis of costs and returns for shrimp culture in Cox’s Bazar district shows that the net economic return is TK 5030/ha. Gross revenue is TK 20,748/ha. Total production cost is TK 15,718/ha (Rahman, 1989). Production costs include capital cost, equipment cost, leasing cost and operating cost. Expenditures on fry, labour, fertilizer and other variable costs are part of the

operating cost. Expenditures on dykes and earth cutting, sluice gate, office and guard shelter, boat, net and machinery are part of equipment and capital costs. Apart from these costs there is a leasing cost of for the water body. The operating cost is about 39 percent of total production cost. The economic rent for 1989 is presented in Table 4.9.

Table 4.9 Economie rent from shrimp fishery in Cox’s Bazar, 1989 (TK/ha)

Gross Revenue 20,748 Costs Lease 6,541 Capital Cost 2,694 Equipment Cost 301 Operating Cost 6,182 Total Costs 15,718 Economic Rent

Economic Rent as Percentage of Gross Revenue

5,030 24%

Source: Rahman, 1989.

Following the methodology used to estimate the total depreciation in the pond fishery described in section 4.3.1 the total depreciation in the shrimp fishery (DERg^nmp) is calculated.

Rent per ha

Total catch of shrimp (1989) Total area under shrimp farm Catch per ha Rent per kg DEP,_shrimp TK 5,030 (from Table 4.9) 27,510 tonnes or 27,510 x 1000 kg 108,280 ha 254 kg’’ TK 19.80" TK 19.80 X 27,510 X 1000 TK 0.54 billion ” 27,510 X 1000 kg 4- 108,280 ha = 254 kg/ha TK 5,030 4- 254 kg = TK 19.80/kg

Depreciation costs for different years are calculated in Table 4.12 using the fishery sector deflators.

4.3.3 Depreciation in the Subsistence Fishery

The subsistence fishery accounts for 30 percent of the total fish production. Subsistence fishermen are occasional fishermen who fish irregularly. Their main occupation is not fishing. Mainly during the monsoon when the floodplain is inundated these fishermen fish on the floodplain. It is estimated that the number of subsistence fishermen is about 10 million (BBS, 1990). The income from subsistence fishing is estimated by multiplying the average prices of fish and the total number of fish caught. Two indirect methods are used to calculate the cost of subsistence fishing. These are described below.

Method 1

The pond fishery is used as a proxy to estimate the depreciation in the subsistence fishery. Subsistence fishermen do not incur all types of costs since they are not commercial fishermen. The only cost they have to bear is the cost to catch fish i.e. harvesting cost. It is assumed that the harvest cost of subsistence fishermen is equal to that of pond fisheries. Table 4.8 shows that the harvesting cost of pond fisheries is 32 percent of total costs (excluding labour cost). So depreciation in subsistence fisheries is defined as :

DEP,,, = [P - (Cp,„, X 0.32)] X (4.5)

where,

DEPjuj, = depreciation in subsistence fishery

P = price of catch

Cpond = total cost of pond fishing Cpond X 0.32 = cost of subsistence fishing Hsub = catch in the subsistence fishery

Catch (H) in pond fisheries, 1987 Area under ponds

Gross revenue / ha (pond) Total cost/ha Catch / ha in pond Cost / kg in pond 149,420 tonnes or 149,420 x 1000 kg 146,890 ha 87,500 (Table 4.8) TK 53,913 (Table 4.8) 1017.2 kg " TK 53913 4- 1017.2 TK 53/kg

To calculate the income from the fish caught in this sector, fish prices are needed. In the subsistence fishery various types of fish are caught. The main species of fish caught by subsistence fishermen include major carps, catfish, snakehead, prawns and other inland fish (Department of Fisheries, 1988). Fish prices vary according to the species. In Appendix A1.4 fish prices are given. The weighted average of fish prices are used in this calculation. The average price of all types of subsistence fish in 1987 is estimated to be TK 39.12 per kg. The depreciation cost in the subsistence fishery is equal to :

DEP,„b = TK (39.12 - 53 x 0.32) x 149420 x 1000 TK (39.12 - 16.96) x 149420 x 1000 TK 3.31 billion

Method 2

In this method, first the number of days fished by subsistence fishermen is calculated and then the opportunity cost of labour is estimated. Catch in the inland commercial fisheries excluding subsistence fisheries was 417,480 tonnes in 1987. Total number of fishermen in commercial fishing was 751,000 (BBS, 1991). So catch (H) per fisherman will be :

Catch / fishermen 555.89 kg/person/year"

" 149,420 X 1000 kg h- 146,890 ha = 1017.2 kg/ha

Assuming that commercial fishermen work for 8 months i.e 240 days in a year on average, catch per fisherman per day is equal to 2.31 kg/person/day'^

Catch in subsistence fisheries, 1987 = 182,040 tonnes or 182,040 x 1000 kg Number of subsistence fishermen = 10,000,000

Catch/person = 18.20 kg/person/year

The productivity of subsistence fishermen are less than that of commercial fishermen. It is assumed that subsistence fishermen are half as productive as commercial fishermen. So the catch per subsistence fishermen is equal to 1.15 kg/person/day’^. From the information on catch in two fisheries the number of days fished by subsistence fishermen (N) is found to be 16 days per y ear'\

That is, subsistence fishermen are involved in fishing only 16 days in a year. To calculate the depreciation, the labour cost of fishing should be deducted from the income earned from fishing. Subsistence fishermen fish for themselves and they are not paid for fishing. So the labour cost can not be calculated directly. The labour cost is calculated on the basis of the opportunity cost principle. In a labour abundant country like Bangladesh unskilled labour receives wages which can be considered as different from its opportunity cost. A conversion factor of 0.75 is widely used in Bangladesh to convert agricultural market wage rates to shadow wage rates. To calculate the total opportunity cost of labour the annual cost of a labourer is multiplied by the total number of fishermen.

15

16

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18

555.89 kg/person/year -i- 240 days = 2.31 kg/person/day

182,040 X 1000 kg/year 4- 10,000,000 persons = 18.20 kg/person/year 2.31 kg/person/day (com mercial) - ^1 = 1.15 kg/person/day (subsistence)

Subsistence fishing is performed mainly for household consumption. If fish were sold in the market it could contribute to the income of the household. The income of the subsistence fishing is estimated by multiplying the average price of fish and the total number of fish caught. Then the cost is deducted from the income to derive depreciation costs in the subsistence fishery. Therefore:

TOC

DEP,sub Ysub - TOC

04 6) (4.7)

where,

TOC = total opportunity cost, Cj = cost per labourer per day

N = working days of subsistence fishermen in a year L = number of total labourer (subsistence fishermen) DEPjub = depreciation in subsistence fishery

Yjub = total income from subsistence fishery (price x quantity)

In 1987 the daily wage for an agricultural labourer was TK 32.30 (BBS, 1988). So the opportunity cost of labour is TK 24.22 per day’^. The total opportunity cost of labour = TK 24.22 X 16 X 10,000,000 = TK 3.88 billion.

The average price of fish is TK 39.12 per kg (Appendix A1.4). So the income from the subsistence fishing (Yg^y) in 1987 = TK 39.12 x 182,040 x 1000 = TK 7.12 billion.

D E P g ^ y — TK (7.12 - 3.88) billion TK 3.24 billion (1987)

Depreciation costs for subsistence fisheries derived by both the methods are close to each other. The first method i.e. using pond fisheries as the proxy gives a figure of TK 3.31 billion. In the second method the number of fishing days of subsistence fishermen are calculated and the

estimation is based on the opportunity cost of the labour and the price of fish. The second method gives a figure of TK 3.24 billion. The average of the two methods that is TK 3.28 billion is used in this study as the depreciation cost from the subsistence sector. Total catch in the subsistence sector was 182,040 tonnes in 1987. So the rent per kg of fish caught in the subsistence sector is TK 18.02/kg^®.

4.3.4 Depreciation in the Trawl Fishery

Trawl fishing is carried out usually for about eight months a year on average. Expenditures of fishing trawlers have been calculated on the basis of interviews with the owners of trawlers and discussion with the officials of Bangladesh Marine Fisheries Association (BMPA). Table 4.10 shows the yearly cost of a fishing trawler in Bangladesh. Since this estimate is for 1994, this has been converted to 1988 prices on the basis of GDP deflators in order to estimate rent for 1988. The adjusted cost for 1988 is TK 10 million per trawler. This adjustment is done because the available data on the trawl fishery are for the year 1988. The rent from the trawl fishery is calculated in Table 4.11.