Economic Impacts of Private Sector Aquaculture-Based ...

Economic Impacts of Private Sector Aquaculture-Based Recreational Fishing in the

Western USA 2009 Annual Report

Dr. Craig A. Bond, Assistant Professor Daniel Deisenroth, Ph.D. Candidate

Colorado State University

Presented to the WRAC IAC/TC October 7, 2009, Spokane, WA

Project Objectives •  Document the economic

contribution of the ASRF industry and related activity

•  Develop a sampling frame for documenting industry trends over time

•  Generate additional primary research on the industry environment

•  Develop a variety of outreach materials and final report

Anticipated Benefits

Document the economic contributions of the Aquacultural Suppliers of Recreational Fish (ASRF) in the Western United States – Direct, indirect, and induced

spending and employment effects

– Support of recreational fishing

Broad Project Progress Overview

•  ASRF industry surveying and basic IMPLAN analysis complete

•  2,300 angler surveys distributed across CO (1,700) and CA (600) and in process of being returned

•  Private fishery survey at focus group stage (tomorrow @ 12:30PM, 970-491-1210)

•  Time to step up the outreach effort!

ASRF Customer Data

Objective 1: Data Collection •  Survey being developed,

focus group tomorrow •  Distribution October-

December •  Content similar to ASRF

industry survey: sales, expenditures/costs, general business info

ASRF Customer Data

Objective 2: Sampling Frame •  Using ASRF cooperators, over 1,000 CO

customers have been identified –  Includes municipalities, private ranches and

clubs, HOAs, other private property •  If you sell recreational fish and are willing

to share your customer list (or know of contacts that might), please let me know!

Recreational Angler Data

Objective 1: Data Collection •  Leveraged $ with USFWS project (Dr.

Loomis, PI) to expand sampling frame •  Survey instrument designed and focus

grouped (with general public and team members)

Recreational Angler Data Objective 1: Data Collection •  Categories of data include:

–  Attributes of most recent fishing trip (catch rate, location quality, travel time and cost)

–  Expenditure information –  Patterns of fishing behavior over

season –  Contingent behavior (what if catch

rates decline)? –  Demographics


Objective 2: Sampling Frame •  21 private fisheries in CO, 0 in CA •  18 public sites in CO, 17 in CA

–  Split according to budget/labor availability –  About half of public sites in CA are privately stocked –  Regions determined taking into consideration types of

fisheries, decent substitution possibilities, and geographic location (see maps Appendix 3 & 4)


Objective 2: Sampling Frame •  2,300 surveys distributed by students and

private establishments (according to their preferences)

•  Response rate averaging near 70%

Objective 3: Additional Industry Research

•  Incorporation of secondary Alaska data into Western region as appendix in final report

•  Graduate student identified to write theoretical paper on regulation when regulator is also a production competitor

•  Angler spending and angler behavior including private and public sites

ASRF Population: Results •  The following results

summarize our findings regarding the economic contributions of the ASRF industry only (backward linkages) in mostly table form

•  Sample extension-type

document in Appendix 7 of our annual report in mostly graphical form

Households

IndustryBasic

ServicesGoods &

$

Inputs

Products

Inputs

$ $

$

$

Services

$ $

Labor

Households

IndustryBasicIndustryBasic

ServicesGoods &

$

Inputs

Products

Inputs

$ $

$

$

Services

$ $

Labor

Suggestions greatly appreciated ([email protected])!

Identified ASRF Population by State

ASRF Survey Response Rate

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Total Completed andIn ASRF Business

Did not fill out survey

Excluded (e.g. Not InBusiness)

52 Surveys completed for a 30% response rate Survey numbers by State: CA=18, CO=7, OR=7, UT=6, WA=6, ID=3, MT=3, NV=1, WY=1

Typical ASRF Producer Age 55

% Male 90%

Years in ASRF Business 22 Years

Years Working in Aquaculture in General 23 Years

Size of Household (Persons) 3.3 Persons

% Married 88%

% Who Live On-Site 80%

Earnings as a % of Total Income 45%

Mean and Median Sales, All Producers

Average Annual Production and Sales Levels

Pounds Sales $

Salmonids

Production Levels (n=45)

60,546 $160,040

Brokered Levels (n=45)

6,654 $22,704

Warm/Cool Water Species


37,889 $107,589


3,156 $14,853

Median Annual Production and Sales Levels

Pounds Sales $

Salmonids


3,000 $4,262


0 $0



0 $0


0 $0

Mean and Median Sales, Excluding Non-Producers

Average Annual Production and Sales Levels

Pounds Sales $

Salmonids


108,983 $276,992


37,428 $127,707



151,558 $364,148


27,769 $108,922

Median Annual Production and Sales Levels

Pounds Sales $

Salmonids


40,000 $41,000


5,374 $31,274



38,000 $80,000


23,418 $103,985

Salmonid Sales by Size, Excluding Non-Producers

Average Salmonid Sales by Size Category (Excluding Non-Producers)

Size Category Amount Unit Sales (Dollars)

Trophy size (Over 16”) 21,769 Pounds Live Weight $66,032

Catchables (9-16 inches) 112,677 Pounds Live Weight $227,184

Sub-Catchables (less than 9 inches) 45,577 Count $37,423

Forage Minnows 20,000 Count $3,800

Eggs 2,093,500 Count $2,220

Other 12,500 Other $8,750 Median Salmonid Sales by Size Category (Excluding Non-Producers)

Size Category Amount Unit Sales (Dollars)

Trophy size (Over 16”) 5,000 Pounds Live Weight $9,000

Catchables (9-16 inches) 12,400 Pounds Live Weight $30,713

Sub-Catchables (less than 9 inches) 10,000 Count $12,708

Forage Minnows 20,000 Count $3,800

Eggs 183,000 Count $550

Other 12,500 Other $8,750

Warm/Cool Sales by Size, Excluding Non-Producers

Average Warm/Cool Water Species Sales by Size Category (Excluding Non-Producers)

Size Category Sales (Dollars) Trophy size $8,086 Catchables $257,942

Sub-Catchables $34,340 Forage Minnows $9,210

Eggs $0 Other $27,675

Median Warm/Cool Water Species Sales by Size Category (Excluding Non-Producers) Size Category Sales (Dollars)

Trophy size $5,000 Catchables $20,000

Sub-Catchables $14,000 Forage Minnows $2,655

Eggs $0 Other $31,989

Fish Sales by Outlet Where Are The Salmonids Sold?

Sales Outlet Percentage Brokers/Consultants 8%

Food Fish 1% Recreational Outlets (Public) 63% Recreational Outlets (Private) 25%

Other 3% Total 100%

Where Are The Warm/Cool Water Fish Sold?

Sales Outlet Percentage Brokers/Consultants 2%

Food Fish 65% Recreational Outlets (Public) 15% Recreational Outlets (Private) 11%

Other 7% Total 100%

Where are ASRF fish sold?

Where Are The Fish Sold?

Salmonids Warm/Cool Water Species

Within State (Within WRAC) 74% 100%

Out of State, (Within WRAC) 22% 0%

Out of State, (Out of WRAC) 5% 0%

Total 100% 100%

ASRF Annual Expenditures

Table 8: Average Expenditures

Category Average Median

Labor $113,941 $22,500

Non-Depreciated Expenditures $182,580 $8,599

Depreciated Expenditures $113,996 $220

Water Expenditures $2,020 $54

Total Expenditures $412,537 $31,373

ASRF Material Expenditures by Category (Production Function)

Labor Expenditures 22.25%

Feed 12.52%

Fish and Eggs 6.96%

Taxes and Insurance, and Non-Labor Insurance 5.09%

Electricity 3.09%

Shipping and Distribution 2.97%

Gasoline 2.74%

Chemicals/Supplies and Oxygen 1.98%

Benefits 1.92%

Other Utilities and Water Non-Pumping Delivery Costs 1.15%

Non-Shipping Depreciated Vehicle Expenses 0.84%

Other 0.79%

General Consumable Supplies 0.67%

Licenses/Permits/Inspection Fees 0.54%

Marketing and Advertising 0.40%

Natural Gas/Propane 0.17%

ASRF Water Sources

Water Source

Sources

Groundwater 64%

On-Farm Surface Water 20%

Off-Farm Water 16%

Percentage Who Own Their Rights 93%

Source of Material Purchases

Source of Material Purchases

Source Percentage

Within State (Within WRAC) 37%

Out of State, (Within WRAC) 52%

Out of State, (Out of WRAC) 11%

Total 100%

Direct Contributions, Western ASRF

Annual Levels

Total Sales $57,238,415

Total Jobs (FTE) 1,237

Material Expenditures $23,948,134

Other Property Income $12,743,225

Labor Expenditures $12,737,101

Proprietary Income $7,809,955

IMPLAN Model

•  Based on the collected data and estimated production function, the industry expenditure data is fed through the model to trace through all supporting economic activity

•  “Multipliers” provide a convenient way to summarize this activity on a per-dollar sales basis

Estimated Economic Multipliers, WRAC Region (excl. Alaska)

Direct Indirect Induced Total Output Multipliers

1.00 0.43 0.46 1.89 ($ output per $1 ASRF sales) Employment Multipliers

21.61 4.34 3.40 29.35 (jobs per $1 mil ASRF sales) Total Employment Multiplier

1.36 (jobs per 1 ASRF job)

Aggregate ASRF Economic Contributions, Western Region

Direct Indirect Induced Total

Output $57.2 mil $24.6 mil $26.3 mil $ 108.2 mil

Employment 1,237

248

195

1,680

Still to Come… •  Finish angler survey and begin analyzing data

–  Expenditure differences between fishing on public and private lands

–  Substitution between public and private fisheries/public and privately stocked fisheries

–  “What if ASRF didn’t exist”? •  Finish private fisheries survey and begin

analyzing data (contributions) •  Complete economic report that incorporates all

three populations •  Work progressing generally according to

schedule (full presentations ready Spring, ’10)

Outreach to Date

•  Presentation of ASRF results at the Western Agricultural Economics Association meeting, June, 2009

•  Presentation at Colorado Aquaculture Association meetings, Jan, 2009

•  Various Fishline articles updating progress on study

Preparing Outreach Materials

To be prepared: •  Draft economic contribution report in Appendix 7

(results shown today) in extension-type form •  Glossy handouts for distribution •  Powerpoint slides and other material on website •  Press Releases if desired NOTE: We would be happy to “write to order”!

Please let us know your needs!

Getting the Word Out

•  As the data collection effort winds down, we would like to “hit the road” to present our results

•  If you are hosting, or know of, a conference, meeting, or event that may be interested in any of our forthcoming results, please contact us ([email protected], [email protected])

Thanks!

Questions, Comments, Suggestions?

Dr. Craig A. Bond Assistant Professor

Department of Agricultural and Resource Economics Colorado State University

970-491-6951 [email protected]

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