Search

Search Results

• 1. [Article] To Invest or Not -- Renewal of the Norwegian Bottom Trawler Fleet

  In order to survive and prosper fishing companies have to balance the need for continuity and change. Investment strategy is a good indicator on the direction companies are headed in terms of capacity, ...

  Citation × Citation Citation Abstract Copy Title: To Invest or Not -- Renewal of the Norwegian Bottom Trawler Fleet Author: Dreyer, Bent, Larsen, Thomas A, Hermansen, Øystein In order to survive and prosper fishing companies have to balance the need for continuity and change. Investment strategy is a good indicator on the direction companies are headed in terms of capacity, onboard production, and the financial risks they are willing to take. However, the success of an investment does not only depend on company decision and timing, but also how companies tackle unpredicted changes in the competitive environment. Cash flow rise and fall with the quota. Accordingly, successful investment strategies in such settings are often linked to timing and capacity decisions. In this paper we propose a framework that explains the investment strategy behind fishing vessel renewal. The hypothesis that cash flow and profitability impact the decision on when to replace an old vessel with a new is tested by studying the pattern of renewal of Norwegian bottom trawlers in a closed fishery. Results suggest that the decision of renewal is taken on rising quota, just before it peaks. Due to long planning and construction time new vessels are operational under conditions very different than predicted. Declining quota and revenues provides challenging conditions, especially for companies building new vessels. However, companies building new vessels have better economic performance than companies not renewing. And vessels being renewed have more fishing licenses than other vessels. An important observation is that the ITQ system has prolonged renewal, as companies buy licenses rather than new vessels. On rising quotas, owners of fully licensed vessels renew 25% of the Norwegian fleet in 2012-2014. Title: To Invest or Not -- Renewal of the Norwegian Bottom Trawler Fleet Author: Dreyer, Bent, Larsen, Thomas A, Hermansen, Øystein In order to survive and prosper fishing companies have to balance the need for continuity and change. Investment strategy is a good indicator on the direction companies are headed in terms of capacity, onboard production, and the financial risks they are willing to take. However, the success of an investment does not only depend on company decision and timing, but also how companies tackle unpredicted changes in the competitive environment. Cash flow rise and fall with the quota. Accordingly, successful investment strategies in such settings are often linked to timing and capacity decisions. In this paper we propose a framework that explains the investment strategy behind fishing vessel renewal. The hypothesis that cash flow and profitability impact the decision on when to replace an old vessel with a new is tested by studying the pattern of renewal of Norwegian bottom trawlers in a closed fishery. Results suggest that the decision of renewal is taken on rising quota, just before it peaks. Due to long planning and construction time new vessels are operational under conditions very different than predicted. Declining quota and revenues provides challenging conditions, especially for companies building new vessels. However, companies building new vessels have better economic performance than companies not renewing. And vessels being renewed have more fishing licenses than other vessels. An important observation is that the ITQ system has prolonged renewal, as companies buy licenses rather than new vessels. On rising quotas, owners of fully licensed vessels renew 25% of the Norwegian fleet in 2012-2014. Close

• 2. [Article] Input Diversity and Performance in Fish Processing Firms

  Research Paper

  Citation × Citation Citation Abstract Copy Title: Input Diversity and Performance in Fish Processing Firms Author: Dreyer, Bent, Isaksen, John R. Research Paper Title: Input Diversity and Performance in Fish Processing Firms Author: Dreyer, Bent, Isaksen, John R. Research Paper Close

• 3. [Article] Rural community quotas - intentions and impacts

  In many fisheries, the harvesting pattern shows considerable intra-year variation. These fluctuations give challenges for downstream firms in value chains where predictability and continuity in the flow ...

  Citation × Citation Citation Abstract Copy Title: Rural community quotas - intentions and impacts Author: Dreyer, Bent, Hermansen, Oystein In many fisheries, the harvesting pattern shows considerable intra-year variation. These fluctuations give challenges for downstream firms in value chains where predictability and continuity in the flow of production are important. Seasonal harvesting may well be rational from an economic perspective, as migration patterns can give huge variations in catch per unit effort. With limited quotas, profit can be maximized through fishing intensively in short periods. This strategy is particularly present in the Norwegian cod fisheries, where approx. 80 per cent is landed from January to April. During the lean season, fish-processing firms have low capacity utilization, and employees are often laid-off. In order to ease these problems, several schemes have been employed, all aiming at changing the harvesting pattern towards more landings of cod during the autumn. In 2006 and 2007, rural community quotas (RCQs) were re-introduced to improve supplies of raw material to particularly exposed communities in the lean season. An exclusive quota was allocated to an autumn fishery. This was allotted to vessels through a lottery among applicants. Quotas were to be delivered fresh to a specified geographical area. This paper describes and analyses the implementation and impacts of this quota system. The empirical findings reported focuses on the selection of vessels and communities and impact on harvesting pattern and processing. Title: Rural community quotas - intentions and impacts Author: Dreyer, Bent, Hermansen, Oystein In many fisheries, the harvesting pattern shows considerable intra-year variation. These fluctuations give challenges for downstream firms in value chains where predictability and continuity in the flow of production are important. Seasonal harvesting may well be rational from an economic perspective, as migration patterns can give huge variations in catch per unit effort. With limited quotas, profit can be maximized through fishing intensively in short periods. This strategy is particularly present in the Norwegian cod fisheries, where approx. 80 per cent is landed from January to April. During the lean season, fish-processing firms have low capacity utilization, and employees are often laid-off. In order to ease these problems, several schemes have been employed, all aiming at changing the harvesting pattern towards more landings of cod during the autumn. In 2006 and 2007, rural community quotas (RCQs) were re-introduced to improve supplies of raw material to particularly exposed communities in the lean season. An exclusive quota was allocated to an autumn fishery. This was allotted to vessels through a lottery among applicants. Quotas were to be delivered fresh to a specified geographical area. This paper describes and analyses the implementation and impacts of this quota system. The empirical findings reported focuses on the selection of vessels and communities and impact on harvesting pattern and processing. Close