Economic Contribution of Fish and Seafood Markets in Coastal Mississippi

In this issue, Dr. Posadas describes the economic contribution of the fish and seafood markets located in Coastal Mississippi. The Coastal Mississippi Region consists of three counties, namely: Hancock, Harrison, and Jackson Counties. The economic contribution of the fish and seafood markets shows their relative importance to the regional economy of Coastal Mississippi. These retail markets were threatened by the lingering impacts of the man-made disaster associated with the prolonged and twice opening of the Bonnet Carre spillway from February to April and May to July 2019. The extent of the economic impacts of the man-made disaster to the retail markets of Coastal Mississippi will take some time to assess. Instead, some benchmark data about the retail markets during the past five years are presented.

Employment and Wages, Salaries, and Earnings

Fish and seafood markets (NAICS sector 44522) comprises establishments primarily engaged in retailing fresh, frozen, or cured fish and seafood products. The industry directly hired an increasing number of employees from 48 jobs in 2014 to 80 jobs in 2017 in the three Coastal Mississippi Counties. However, the number of jobs directly created by the industry declined to 53 jobs, starting in 2018, and remained at that level in 2019.  

The combined wages, salaries, and proprietor earnings of all the QCEW employees, non-QCEW employees, self-employed, and extended proprietors in the three Coastal Mississippi Counties averaged about $17,600 during the past five years. Higher combined wages, salaries, and proprietor earnings exceeding $20,000 were estimated in 2018.

Distribution of Workers by Gender

The 2018 industrial overview released by EMSI (2019) showed that among workers and owners in the three Coastal Mississippi Counties, 65 percent were male. About 35 percent of the workers and owners were female.

Distribution of Workers by Age

The 2018 industrial overview released by EMSI (2019) showed that among workers and owners in the three Coastal Mississippi Counties are relatively young, averaging 48 years old. Almost 32 percent of the workers and owners are 55 years old and above. The 45-55 years old workers and owners added 30 percent of the total. Over 19 percent belonged to the 35-44 years old age group. More than 18 percent of the workers and owners are below 35 years old.

Distribution of Workers by Race or Ethnicity

The newly released industrial overview (EMSI, 2019) also sorted workers and owners by race or ethnicity. The majority of the workers are White (64.5%), followed by Hispanic or Latino (17.6%). The remaining workers and owners are Asian (9.1%) and Black or African American (8.8%).

Seafood Businesses Registered in MarketMaker

If you need an online database of local fish and seafood markets, you may use the search tool in Mississippi MarketMaker or other state MarketMaker programs. Almost 8,000 “food retailers – fish market” in the United States registered their business profiles in MarketMaker. You can sort the results alphabetically, by relevance, or by the distance to your current location.

By searching for “food retailers – fish market” in Mississippi, a total of 78 businesses are found registered in Mississippi MarketMaker. In the coastal counties of Hancock, Harrison, and Jackson, there are 31 “food retailers – fish market” registered in Mississippi MarketMaker. These coastal seafood businesses are most likely to be directly impacted by the human-made disaster in 2019.

Gross Regional Product

The Bureau of Economic Analysis (2019) defines the gross domestic product (GDP) as the value of the goods and services produced in the United States. The gross regional product (GRP) is simply the GDP for the region of study. EMSI (2019) measures the GRP as the sum of total industry earnings, taxes on production and imports, and profits, less subsidies.

The gross regional product (GRP) in the three coastal counties generated by fish and seafood markets was estimated at $1.72 million in 2018 (EMSI, 2019). The bulk of the GRP consisted of earnings (68%), followed by taxes (18%), and property income (14%).

Disaster Implications

To save lives, properties, and the way of life in New Orleans and surrounding communities, the Bonnet Carre spillway was opened to release floodwater into Lake Pontchartrain and eventually into the Mississippi Sound. The livelihoods and way of life of the fish and seafood businesses and surrounding communities dependent on coastal tourism and the seafood industry are threatened by lingering effects of the man-made disaster associated with the prolonged and twice opening of the Bonnet Carre spillway since February to April and May to July 2019. The massive volumes of freshwater which were dumped into the fertile fishery grounds of the Mississippi Sound brought with them harmful freshwater algae that bloomed all over the coast. Beaches were closed, and advisories were in place until Labor Day weekend and beyond. Massive losses in vital marine resources in Coastal

Mississippi disrupted commercial and recreational fishing activities. The disruption of the local supply chains of seafood products adversely affected local seafood processing, wholesaling, retailing, and restaurant activities.

This man-made disaster is a negative externality that causes consumer and producer losses. Market forces cannot create a system of payments for the offended parties. The government needs to intervene and compensate for the losses suffered by consumers and producers. The effects of the disaster confronting the Mississippi Sound will linger for some time, and the economic hardships will further erode the quality of life of coastal households, businesses, and communities.

Suggested Citation:

Posadas, Benedict C. Economic Contribution of Fish and Seafood Markets in Coastal Mississippi. Mississippi MarketMaker Newsletter, Vol. 9, No. 11. November 5, 2019.  http://extension.msstate.edu/newsletters/mississippi-marketmaker.  

Economic Contribution of Charter Boats For-Hire in Coastal Mississippi

In this issue, Dr. Posadas describes the economic contribution of the charter boats for-hire in Coastal Mississippi. The charter boats for-hire are included in the NAICS code 487210 or “Scenic and Sightseeing Transportation, Water” in the North American Industrial Classification System (NAICS, 2019). This industry comprises establishments primarily engaged in providing scenic and sightseeing transportation on water. The services provided are usually local and involve same-day return to place of origin. Illustrative examples are airboat (i.e., swamp buggy) operation, excursion boat operation, charter fishing boat services, harbor sightseeing tours, and dinner cruises. The Coastal Mississippi Region consists of three counties, namely: Hancock, Harrison, and Jackson Counties. The economic contribution of this industry shows its importance to the regional economy of Coastal Mississippi. The industry was threatened by the lingering impacts of the man-made disaster associated with the prolonged and twice opening of the Bonnet Carre spillway from February to April and May to July 2019. The extent of the economic impacts of the man-made disaster to Coastal Mississippi will take some time to assess. Instead, some benchmark data about the charter boats for-hire during the past five years are presented.

Employment and Wages, Salaries, and Earnings

The industry (NAICS sector 487210)directly provided 65 jobs per year in three Coastal Mississippi Counties since 2014 (Fig. 1). In 2018, the industry provided 69 jobs in the three coastal counties.

The combined wages, salaries, and proprietor earnings of all the QCEW employees, non-QCEW employees, self-employed, and extended proprietors in the three Coastal Mississippi Counties are shown in Fig. 2. Workers and owners received more than $31,000 average earnings in 2018.

Figure 1. Annual Employment of QCEW Employees, Non-QCEW Employees, Self-Employed, and Extended Proprietors. U.S. Bureau of Labor Statistics,Quarterly Census of Employment and Wages (EMSI, 2019).
Figure 2. Wages, Salaries, and Proprietor Earnings of QCEW Employees, Non-QCEW Employees, Self-Employed, and Extended Proprietors. U.S. Bureau of Labor Statistics,Quarterly Census of Employment and Wages (EMSI, 2019).

Distribution of Workers by Gender

The 2018 industrial overview released by EMSI (2019) showed that among workers and owners in the three Coastal Mississippi Counties, 70 percent were male. About 30 percent of the workers and owners were female.

Distribution of Workers by Age

The 2018 industrial overview released by EMSI (2019) showed that among workers and owners in the three Coastal Mississippi Counties are relatively older, with more than six out of ten are 55 years old and above. About 10 percent of the workers and owners are 45-54 years old. About seven percent belonged to the 35-44 years old age group. More than one out of five of the workers and owners are below 35 years old.

Distribution of Workers by Race or Ethnicity The newly released industrial overview (EMSI, 2019) also sorted workers and owners by race or ethnicity. The majority of the workers are White (86.9%), followed Asian (5.6%), and Hispanic or Latino (5.6%). The remaining workers and owners reported two or more races (1.8%).

Charter Boats For-Hire Registered in MarketMaker

If you need an online database of local charter boats for-hire, you may use the search tool in Mississippi MarketMaker or other state MarketMaker programs. More than 900 charter boats for-hire in the Gulf of Mexico States registered their business profiles in MarketMaker. You can sort the results alphabetically, by relevance, or by the distance to your current location.

By searching for charter boats for-hire in the three Coastal Mississippi Counties, a total of 22 businesses are found registered in Mississippi MarketMaker.

Gross Regional Product

The Bureau of Economic Analysis (2019) defines the gross domestic product (GDP) as the value of the goods and services produced in the United States. The gross regional product (GRP) is simply the GDP for the region of study. EMSI (2019) measures the GRP as the sum of total industry earnings, taxes on production and imports, and profits, less subsidies.

The gross regional product (GRP) in the three coastal counties generated by the industry was estimated at 2.67 million dollars in 2018 (EMSI, 2019). The GRP of the industry represents about 0.006 percent of the total GRP in Coastal Mississippi.

Disaster Implications

To save lives, properties and the way of life in New Orleans and surrounding communities, the Bonnet Carre spillway was opened to release floodwater into Lake Pontchartrain and eventually into the Mississippi Sound. The livelihoods and way of life of the charter boats for-hire and surrounding communities dependent on coastal tourism and the seafood industry are threatened by lingering effects of the man-made disaster associated with the prolonged and twice opening of the Bonnet Carre spillway since February to April and May to July 2019.

The massive volumes of freshwater which were dumped into the fertile fishery grounds of the Mississippi Sound brought with them harmful freshwater algae that bloomed all over the coast. Beaches were closed, and advisories were in place during the entire summer and beyond. Massive losses in vital marine resources in Coastal Mississippi disrupted commercial and recreational fishing activities.

This man-made disaster is an externality that causes consumer and producer losses. Market forces cannot create a system of payments for the offended parties. The government needs to intervene and compensate for the losses suffered by consumers and producers. The effects of the disaster confronting the Mississippi Sound will linger for some time, and the economic hardships will further erode the quality of life of coastal households, businesses, and communities.

Suggested Citation:

Posadas, Benedict C. Economic Contribution of Charter Boats For-Hire in Mississippi. Mississippi MarketMaker Newsletter, Vol. 9, No. 10. October 23, 2019.  http://extension.msstate.edu/newsletters/mississippi-marketmaker.  


Economic Impacts of Bonnet Carre Spillway Openings to Mississippi Marine Sectors

October 7, 2019

Bonnet Carre Spillway openings in 2019 

The Mississippi marine sectors were threatened by the lingering impacts of the man-made disaster associated with the prolonged and twice opening of the Bonnet Carre spillway from February to April and May to July 2019. The commercial fishery impacts consist of direct losses of wild harvests by commercial Mississippi fishermen due to the protracted freshwater intrusions. The direct impacts on marine-related businesses consist of direct losses of gross sales by businesses adversely affected by the man-made disaster.  

One approach to estimate the direct losses of this man-made disaster is by comparing the 2019 and future landings, dockside values, or gross sales to previous years’ benchmarks. The direct losses to the marine economic sectors take some time to compute, but preliminary estimates can be projected, and benchmark values during the past five years are compiled. The direct losses are measured by the differences between the benchmark landings, dockside values or gross sales and the 2019 and future landings. 

Bonnet Carre Spillway opening in 2011 

The Mississippi oyster industry underwent severe economic hardships due to the massive destruction and frequent closures of the state public reefs associated with natural and technological disasters since 2005. The absence of access to public reefs caused the shutdown of oyster harvesting activities and associated processing and distribution activities. The direct losses in oyster harvesting associated with the prolonged Bonnet Carre Spillway opening in 2011 ranged from 80% to 100% of the baseline average commercial annual landings in 2002-2004. The cumulative values of commercial oyster landings lost in 2011-2014 reached up to $46.0 million. Negative economic impacts of the prolonged BCS opening consisted of the reduction in economic output by $58 million, between 145 to 324 jobs lost per year and a decline in labor income by more than $21 million in 2011-2014.

The federal disaster assistance and oil spill restore funds allocated to the restoration of the state public oyster reefs are massive. However, the post-disaster economic recovery of the state’s oyster fishery depends on the immediate and timely implementation of appropriate restoration efforts and disaster assistance to oystermen.  The long-term economic recovery of the oyster fishery requires the immediate implementation of the recommendations, projects, and programs outlined by the Governor’s Oyster Restoration and Resiliency Council. 

Publications:

  1. Posadas, Benedict C. Economic Contribution of Commercial Fishermen in Coastal Mississippi. Horticulture and Marine Economics Blog. In preparation.  
  2. Posadas, Benedict C. Economic Contribution of Seafood Processors in Coastal Mississippi. Horticulture and Marine Economics Blog. In preparation.
  3. Posadas, Benedict C. Economic Contribution of Seafood Wholesalers in Coastal Mississippi. Horticulture and Marine Economics Blog. In preparation.  
  4. Posadas, Benedict C. Economic Contribution of Fish and Seafood Markets in Coastal Mississippi. Horticulture and Marine Economics Blog. In preparation.  
  5. Posadas, Benedict C. Economic Contribution of Marinas in Coastal Mississippi. Horticulture and Marine Economics Blog. In preparation.  
  6. Posadas, Benedict C. Economic Contribution of Charter Boats for-Hire in Coastal Mississippi. Horticulture and Marine Economics Blog. In preparation.  
  7. Posadas, Benedict C. Direct Losses to Mississippi Oyster Fishery. Horticulture and Marine Economics Blog. In preparation.  
  8. Posadas, Benedict C. Direct Losses to Mississippi Blue Crab Fishery. Horticulture and Marine Economics Blog. In preparation.  
  9. Posadas, Benedict C. 2019. Economic Contribution of Restaurants and Other eating Places in Coastal Mississippi. Horticulture and Marine Economics Blog. September 30. 
  10. Posadas, Benedict C. 2019. Direct Losses to Mississippi Shrimp Fishery. Horticulture and Marine Economics Blog. September 17. 
  11. Posadas, Benedict C. 2019. Mississippi Commercial Shrimp Fishery Impacts. Horticulture and Marine Economics Blog. July 24.  
  12. Posadas, Benedict C. 2019. Mississippi Commercial Blue Crab Fishery Impacts. Horticulture and Marine Economics Blog. July 23. 
  13. Posadas, Benedict C. 2019. Mississippi Commercial Oyster Fishery Impacts. Horticulture and Marine Economics Blog. July 22. 
  14. **Posadas, Benedict C. 2017. Economic Impacts of the Opening of the Bonnet Carre Spillway to the Mississippi Oyster Fishery.Mississippi State University Extension Service publication 3038 and Mississippi-Alabama Sea Grant publication MASGP-11-041. Mississippi State, Mississippi.
  15. **Posadas, Benedict C. 2017. Economic Impacts of the Opening of the Bonnet Carre Spillway to the Mississippi Oyster Fishery.  Journal of Food Distribution Research. 48(1): 42-45.

ECONOMIC CONTRIBUTION OF RESTAURANTS AND OTHER EATING PLACES IN COASTAL MISSISSIPPI

In this issue, Dr. Posadas describes the economic contribution of the restaurant and foodservice industry in Coastal Mississippi. This issue is an update of Mississippi MarketMaker Newsletter, Vol. 7, No. 23. The Coastal Mississippi Region consists of three counties, namely: Hancock, Harrison, and JacksonCounties. In the three coastal counties, there are 875 restaurant and related-businesses registered in the Mississippi MarketMaker. The economic contribution of the industry shows the importance of the industry to the regional economy of Coastal Mississippi. The industry was threatened by the lingering impacts of the man-made disaster associated with the prolonged and twice opening of the Bonnet Carre spillway from February to April and May to July 2019. The extent of the economic impacts of the man-made disaster to the foodservice industry of Coastal Mississippi will take some time to assess. Instead, some benchmark data about the industry during the past five years are presented.

Employment and Wages, Salaries, and Earnings

Restaurants and other eating places (NAICS sector 7225)directly provided about 15,000  jobs per year in three Coastal Mississippi Counties since 2014 (Fig. 1). In 2019, the entire foodservice industry provided more than 16,000 jobs in the three coastal counties. The number of jobs directly created by the industry represents almost eight percent of all the jobs in Coastal Mississippi this year.

The combined wages, salaries, and proprietor earnings of all the QCEW employees, non-QCEW employees, self-employed, and extended proprietors in the three Coastal Mississippi Counties are shown in Fig. 2. Workers and owners of mobile food service businesses received more than $36,000 average earnings in 2018. Workers in full-service restaurants earned an average $20,000 last year. In 2018, workers in limited-service restaurants received over $15,000 average earnings.

Figure 1. Annual Employment of QCEW Employees, Non-QCEW Employees, Self-Employed, and Extended Proprietors. U.S. Bureau of Labor Statistics,Quarterly Census of Employment and Wages (EMSI, 2019).
Figure 2. Average Earnings of QCEW Employees, Non-QCEW Employees, Self-Employed, and Extended Proprietors. U.S. Bureau of Labor Statistics,Quarterly Census of Employment and Wages (EMSI, 2019).

Distribution of Workers by Gender

The 2018 industrial overview released by EMSI (2019) showed that among workers and owners in the three Coastal Mississippi Counties, 44 percent were male (Fig. 3). About 56 percent of the workers and owners were female.

Figure 3. Distribution of QCEW Employees, Non-QCEW Employees, Self-Employed, and Extended Proprietors by Gender. U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (EMSI, 2019).


Distribution of Workers by Age

The 2018 industrial overview released by EMSI (2019) showed that among workers and owners in the three Coastal Mississippi Counties are relatively young, averaging 33 years old (Fig. 4).

Approximately 10 percent of the workers and owners are 55 years old and above. The 45-55 years old workers and owners added 12 percent of the total. About 17 percent belonged to the 35-44 years old age group. Approximately 62 percent of the workers and owners are below 35 years old.

Figure 4. Distribution of QCEW Employees, Non-QCEW Employees, Self-Employed, and Extended Proprietors by Age Group. U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (EMSI, 2019).

Distribution of Workers by Race or Ethnicity

The newly released industrial overview (EMSI, 2019) also sorted workers and owners by race or ethnicity (Fig. 5). Majority of the workers are Whites (57.9%), followed Black or African American (28.4%), by Hispanic or Latino (6.6%), and Asian (4.6%). The remaining workers and owners are Native American or Alaska Native (0.4%), with two or more races (2.0%), and Native Hawaiian or Other Pacific Islander (0.1%).

Figure 5. Distribution of QCEW Employees, Non-QCEW Employees, Self-Employed, and Extended Proprietors by Race or Ethnicity. U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (EMSI, 2019).

Restaurant Businesses Registered in MarketMaker

If you need an online database of local restaurants and other eating places, you may use the search tool in Mississippi MarketMaker or other state MarketMaker programs. More than 700,000 restaurant businesses in the United States registered their business profiles in MarketMaker. You can sort the results alphabetically, by relevance, or by the distance to your current location.

By searching for restaurants only in the three Coastal Mississippi Counties, a total of 875 restaurant and related businesses are found registered in Mississippi MarketMaker (Fig. 6). The entire foodservice businesses directly employed more than 16,300 workers in 2019 in the three coastal counties. The entire foodservice industry directly contributed almost eight percent of all the jobs in the coastal region in 2019.

This image has an empty alt attribute; its file name is restaurants-coastal-ms.jpg
Figure 6. Map of the Locations of Restaurants in the Three Coastal Mississippi Counties (Mississippi MarketMaker, 2019). 

Gross Regional Product

The Bureau of Economic Analysis (2019) defines the gross domestic product (GDP) as the value of the goods and service produced in the United States. The gross regional product (GRP) is simply the GDP for the region of study. EMSI (2019) measures the GRP as the sum of total industry earnings, taxes on production and imports, and profits, less subsidies.

The gross regional product (GRP) in the three coastal counties generated by the foodservice industry was estimated at over 420 million dollars in 2018 (EMSI, 2019). The GRP of the food service industry represents about 2.6 percent of the total GRP in Coastal Mississippi.

The full-service restaurants contributed more than 48 percent of the gross regional product in Coastal Mississippi. The limited-service restaurants added about 40 percent in the GRP of the three coastal Mississippi counties.  Fig. 7 shows the contributions of the other foodservice sectors to GRP in the coastal counties.

Figure 7. Distribution of Gross Regional Product in the three Coastal Mississippi Counties in 2018 by Sector (EMSI, 2019).


Disaster Implications

To save lives, properties and the way of life in New Orleans and surrounding communities, the Bonnet Carre spillway was opened to release floodwater into Lake Pontchartrain and eventually into the Mississippi Sound. The livelihoods and way of life of the restaurant businesses and surrounding communities dependent on coastal tourism and the seafood industry are threatened by lingering effects of the man-made disaster associated with the prolonged and twice opening of the Bonnet Carre spillway since February to April and May to July 2019.

The massive volumes of freshwater which were dumped into the fertile fishery grounds of the Mississippi Sound brought with them harmful freshwater algae which bloomed all over the coast. Beaches were closed, and advisories were in place until Labor Day weekend and beyond. Massive losses in vital marine resources in Coastal Mississippi disrupted commercial and recreational fishing activities. The disruption of the local supply chains of seafood products adversely affected local seafood processing, wholesaling, retailing, and restaurant activities.

This man-made disaster is an externality that causes consumer and producer losses. Market forces cannot create a system of payments for the offended parties. The government needs to intervene and compensate for the losses suffered by consumers and producers. The effects of the disaster confronting the Mississippi Sound will linger for some time, and the economic hardships will further erode the quality of life of coastal households, businesses, and communities.

Suggested Citation: Posadas, Benedict C. Economic Contribution of Restaurants and Other Eating Places in Mississippi. Mississippi MarketMaker Newsletter, Vol. 9, No. 9. September 30, 2019.  http://extension.msstate.edu/newsletters/mississippi-marketmaker

DIRECT LOSSES TO MISSISSIPPI SHRIMP FISHERY IN 2019

September 17, 2019

This Blog is an update of the previous Blog posted on July 24, 2019 (https://hortmarine.wordpress.com/2019/07/24/commercial-shrimp-fishery-impacts-of-the-protracted-opening-of-the-bonnet-carre-spillway/) which outlined the estimates of the potential direct losses on the Mississippi commercial shrimp fishery associated with the prolonged and twice opening of the Bonnet Carre Spillway since February 2019. As stated earlier, the commercial fishery impacts consist of losses of wild shrimp harvests by commercial Mississippi shrimpers due to the protracted freshwater intrusion. One approach to estimate the direct losses of this man-made disaster is by comparing the 2019 landings to previous years benchmarks.

The charts below show the benchmark monthly and cumulative landings in 2014-18 and the monthly and cumulative landings from January to July 2019. Fig. 1 shows that monthly shrimp landings fell below the five-year averages in January, February, March, April, June and July 2019. Fig. 2 shows that the cumulative shrimp landings were short of the five-year cumulative landings in January, February, March, April, June and July 2019.

Figure 1. Five-year monthly benchmark and 2019 landings. Source of raw data:
Fishery Monitoring Branch. Southeast Fisheries Science Center. NOAA Fisheries.
Figure 2. Five-year cumulative monthly benchmark and 2019 landings. Source of raw data: Fishery Monitoring Branch. Southeast Fisheries Science Center. NOAA Fisheries.

The direct losses of wild shrimp harvests by commercial Mississippi shrimpers are measured by the difference between the benchmark landings and the 2019 landings. Fig. 3 shows the monthly shortfall of shrimp landings in January, February. March, April, June and July 2019. Figure 4 shows the cumulative loss in shrimp landings in January, February. March, April, June and July 2019.

Figure 3. 2019 monthly direct losses of the Mississippi shrimp fishery.
Figure 4. 2019 cumulative direct losses of the Mississippi shrimp fishery.

The decline in the cumulative commercial shrimp landings reached one-half million pounds or 33 percent cumulative shortfall in June 2019. By July 2019, the cumulative decline was more than 700,000 pounds or 33 percent cumulative loss. The five-year benchmark annual dockside values of shrimp landings are almost 18,000,000 dollars. However, the Bonnet Carre Spillway was finally closed on July 27, 2019.

Recently, a few commercial shrimpers reported that practically no shrimp can be caught inside the Mississippi state waters. A few of them resort to shrimping in nearby states just to pay their monthly bills.

These losses are devastating the shrimping communities in Coastal Mississippi. Shrimp harvesting alone contributed almost 24,000,000 dollars to the state economy in 2017 (Figure 5).

Figure 5. Economic contribution of Mississippi shrimp harvesting in 2017.

MISSISSIPPI COMMERCIAL SHRIMP FISHERY IMPACTS

July 24, 2019

I would like to provide estimates of the potential direct losses on the Mississippi commercial shrimp fishery associated with the prolonged and twice opening of the Bonnet Carre Spillway since February 2019. The commercial fishery impacts consist of losses of wild shrimp harvests by commercial Mississippi shrimpers due to the protracted freshwater intrusion. One approach to estimate the direct losses of this man-made disaster is by comparing the 2019 and later years’ landings and dockside values to previous years benchmarks.

There are no monthly data on commercial dockside values for shrimp published by NOAA Fisheries for 2017, 2018, and 2019. The percent losses are reports by MS Department of Marine Resources. Those percentages are indicators of what we have lost so far since it was opened on Feb. 27 to Mar. 30, 2019 and again on May 9 to Jul 4, 2019. The chart below tells us what we know about the dockside values of the commercial shrimp fishery based on the availability of data. During the next five to ten years when all the monthly data on commercial fishery landing values become available, the final losses will be computed.  For now, we can estimate that the potential direct loss is equal to base value times percent loss. 

COMMERCIAL FISHERY IMPACTS

The commercial shrimp fishery impacts consist of losses of wild shrimp harvests by commercial Mississippi shrimpers due to the prolonged freshwater intrusion. Preliminary state reports indicate that commercial shrimp landings in May, June and July 2019 declined by 19, 58, and 60 percent as compared to the previous five-year average, respectively. Mississippi typically lands minimal shrimp harvests from February to April.

The chart above shows the monthly CUMULATIVE dockside values of shrimp landings in Mississippi in two recent periods. With the 2014-16 averages as benchmarks, the cumulative dockside values start at $833,000 in March and end at $14,305,000 in December. The average dockside values during the 2012-16 benchmark period start at $800,000 in March and end at $17,766,000 in December.

Source of raw data: NOAA Fisheries (2019).

SEAFOOD PROCESSING IMPACTS

The estimates of direct losses described above cover only shrimp harvesting. There are other significant post-harvest economic activities. Shrimp processing is a major economic activity in the state. There are also significant wholesale and retail activities of shrimp products performed by local seafood dealers and restaurants. The decline in shrimp landings will adversely affect the processing and distribution activities of these seafood establishments. Inclusion of the direct losses to post-harvest economic activities is necessary for the estimation of the economic impacts of the man-made disaster.

TOTAL ECONOMIC IMPACTS

Finally, economic impacts include direct, indirect, and induced effects. The direct losses represent the direct impact of the commercial fisheries affected by the prolonged freshwater intrusion. There are also backward and forward interactions of the commercial harvesting sector with other economic sectors.

The entire shrimp industry created a total of $215 million economic contribution to the state of Mississippi in 2015. This estimate includes shrimp harvesting, processing, wholesaling and retailers of wild shrimp and other shrimp products. The industry also generated a total of more than 4,200 jobs in the state economy.

UPDATE

An update of this Blog is posted at https://hortmarine.wordpress.com/2019/09/18/direct-losses-to-mississippi-shrimp-fishery-in-2019/

MISSISSIPPI COMMERCIAL BLUE CRAB FISHERY IMPACTS

July 23, 2019

I would like to provide estimates of the potential direct losses associated with the prolonged and twice opening of the Bonnet Carre Spillway since February 2019 to the blue crab fishery in Mississippi. The commercial fishery impacts consist of losses of wild blue crab harvests by commercial Mississippi crabbers due to the prolonged freshwater intrusion. One approach to estimate the direct losses of this man-made disaster is by comparing the 2019 and later years’ landings and dockside values to previous years benchmarks.

There are no monthly data on commercial dockside values for blue crabs published by NOAA Fisheries for 2017, 2018, and 2019. The percent losses are reports by MS Department of Marine Resources. Those percentages are indicators of what we have lost so far since it was opened on Feb. 27 to Mar. 30, 2019 and again on May 9 to Jul 4, 2019. The chart below tells us what we know about the dockside values of the commercial blue crab fishery based on the availability of data. During the next five to ten years when all the monthly data on commercial blue crab landing values become available, the final losses will be computed.  For now, we can estimate that the potential direct loss is equal to base value times percent loss. 

COMMERCIAL FISHERY IMPACTS

The commercial blue crab fishery impacts consist of losses of wild blue crab harvests by commercial Mississippi crabbers due to the prolonged freshwater intrusion. Recent state reports indicate that commercial blue crab landings in June and July 2019 declined by 21 and 39 percent as compared to the previous five-year average, respectively.

The chart below shows the monthly CUMULATIVE dockside values of blue crab landings in Mississippi in two recent periods. With the 2014-16 averages as benchmarks, the cumulative dockside values start at $207,000 in March and end at $1,033,000 in December. The average dockside values during the 2012-16 benchmark period start at $178,000 in March and end at $848,000 in December.

Source of raw data: NOAA Fisheries (2019).

SEAFOOD PROCESSING IMPACTS

The estimates of direct losses described above cover only blue crab harvesting. There are other significant post-harvest economic activities. Blue crab meat picking is a major economic activity in the state. There are also significant wholesale and retail activities of blue crab products performed by local seafood dealers and restaurants. The damage of the blue crab fishery will seriously hamper the processing and distribution activities of these seafood establishments. Inclusion of the direct losses to post-harvest economic activities is necessary for the estimation of the economic impacts of the man-made disaster.

TOTAL ECONOMIC IMPACTS

Finally, economic impacts include direct, indirect, and induced effects. The direct losses represent the direct impact of the commercial fisheries affected by the prolonged freshwater intrusion. There are also backward and forward interactions of the commercial harvesting sector with other economic sectors.

The entire blue crab and oyster industry created a total of $35 million economic contribution to the state of Mississippi in 2015. This estimates includes blue crab and oyster harvesting, processing, wholesaling and retailers of blue crab and oyster products. The industry also generated a total of more than 800 jobs in the state economy.

In the past when separate data for the blue crab and oyster industry were available, estimates showed that the entire crab industry created a total of more than $7 million economic contribution to the state economy in 2009. The industry also generated a total of more than 200 jobs in the entire state.

MISSISSIPPI COMMERCIAL OYSTER FISHERY IMPACTS

July 22, 2019

I received several inquiries for estimates of what the commercial fishery impacts of the prolonged and twice opening of the Bonnet Carre Spillway since February 2019. The commercial fishery impacts consist of losses of wild and farmed oyster harvests by commercial Mississippi fishers and farmers due to the prolonged freshwater intrusion. One approach to estimate the direct losses of this man-made disaster is by comparing the 2019 and later years’ landings and dockside values to previous years benchmarks.

There are no monthly data on commercial dockside values for oysters published by NOAA Fisheries for 2017, 2018, and 2019. The percent losses are reports by MS Department of Marine Resources. Those percentages are indicators of what we have lost so far since it was opened on Feb. 27 to Mar. 30, 2019 and again on May 9 to Jul 4, 2019. The chart below tells us what we know about the dockside values of the commercial oyster fishery based on the availability of data. During the next five to ten years when all the monthly data on commercial oyster landing values become available, the final losses will be computed.  For now, we can estimate that the potential direct loss is equal to base value times percent loss. 

COMMERCIAL FISHERY IMPACTS

Recent state sampling results indicate that almost all of the oyster resources were totally devastated (~100% mortality). With almost total devastation of the oyster fishery by Hurricane Katrina, it took more than two years for any significant landings to occur after some serious management intervention by state regulatory agency. The expected 2019 landings of oysters will be ZERO, and in 2020, landings will be very insignificant if not ZERO without immediate management intervention.

The commercial oyster fishery impacts consist of losses of wild and farmed oyster harvests by commercial Mississippi fishers and farmers due to the prolonged freshwater intrusion. The chart below shows the monthly CUMULATIVE dockside values of oyster landings in Mississippi in two recent time periods. Using the 2014-16 averages as benchmarks, the cumulative dockside values starting at $580,000 in March and ending at $1,247,000 in December. The average dockside values during the 2012-16 benchmark period start at $356,000 in March and end at $1,376,00 in December.

Cumulative-Monthly-Oyster-Dockside-Values-MS
Source of raw data: NOAA Fisheries (2019).

SEAFOOD PROCESSING IMPACTS

The estimates of direct losses mentioned above cover only oyster harvesting. There are other significant post-harvest economic activities. Oyster shucking is a major economic activity in the state. There are also significant wholesale and retail activities of oyster products performed by local seafood dealers and restaurants. The devastation of the oyster fishery will seriously hamper the processing and distribution activities of these seafood establishments. Inclusion of the direct losses to post-harvest economic activities is necessary for the estimation of the economic impacts of the man-made disaster.

TOTAL ECONOMIC IMPACTS

Finally, economic impacts include direct, indirect, and induced effects. The direct losses represent the direct impact of the commercial fisheries affected by the prolonged freshwater intrusion. There are also backward and forward interactions of the commercial harvesting sector with other economic sectors.

The entire blue crab and oyster industry created a total of $35 million economic contribution to the state of Mississippi in 2015. This estimate includes blue crab and oyster harvesting, processing, wholesaling and retailers of blue crab and oyster  products. The industry also generated a total of more than 800 jobs in the state economy.

In the past when separate data for the blue crab and oyster industry were available, estimates showed that the entire oyster industry created a total of more than $13 million economic contribution to the state economy in 2009. The industry also generated a total of more than 350 jobs in the entire state.

Economic Contributions of Commercial Spiny Lobster Fishing in the Gulf of Mexico States

Commercial Landings

The long-term annual commercial spiny lobster landings in the Gulf of Mexico Region are shown in Figure 1. Since 2011, the Gulf States supplied 97% of the entire spiny lobster domestic landings averaging 4.9 million pounds and valued at $40 million annually.

Florida West Coast is the largest producing state in the Gulf of Mexico region, supplying 91% of all domestically-caught spiny lobster and all of the landings in the Gulf of Mexico region. The Florida East Coast provided most of the remaining balance of the total domestic landings of spiny lobster.

spiny-lobster-landings-annual-GoM
Figure 1. Annual commercial spiny lobster landings in the Gulf of Mexico Region. Source of raw data: NOAA Fisheries (http://www.st.nmfs.noaa.gov/).

Economic Contributions

The economic contribution an industry makes locally, region-wide, nation-wide, or globally is crucial information in making private investment decisions, formulating government policy, and developing research and extension programs for the industry. The IMPLAN (http://implan.com/) software and the 2013 input-output data for the five Gulf States were used to estimate the economic contribution of commercial fishing to the Gulf of Mexico regional economy in 2016. The economic analysis used sector 17 or commercial fishing of the 2013 IMPLAN input-output data.

The annual commercial dockside values of spiny lobster in the Gulf of Mexico Region in 2016 reached $39.4 million, which was 2% less than the average yearly dockside values in the region since 2011. The total output contribution of commercial spiny lobster fishing in 2016 amounted to $75.1 million (Figure 2). The spiny lobster commercial fishing sustained 1,043 jobs and generated labor income amounting to $26.9 million in the Gulf regional economy.

The spiny lobster commercial fishing industry generates annual tax revenues for the Gulf States and the U.S. federal government. About $4.6 million was estimated to have been paid by households and businesses in 2016 to the federal government as social insurance tax, tax on production and imports, corporate profit tax, and personal income tax. The Gulf States were expected to have collected taxes from households and businesses in 2016 amounting to $2.25 million as social insurance tax, tax on production and imports, corporate profits tax, and personal tax.

Spiny-lobster-Gulf-economic-contribution
Figure 2. The total economic contribution includes direct, indirect and induced effects estimated by using 2016 annual landing values and 2013 IMPLAN data. The local purchases percentage was set at 100%. The number of jobs is rounded off.

When Hurricane Irma struck Florida in Sept. 2017, the spiny lobster fishing industry was extensively devastated. The more than 350,000 spiny lobster traps were either destroyed or displaced. Also, fishing boats and equipment, docks, fish houses, and other facilities suffered the destructive forces of the hurricane. The hurricane hit during the very peak of the spiny lobster season (Figure 3). The economic devastation of this natural disaster is massive, and the sector hardest hit are the coastal communities engaged in commercial fishing.

spiny-lobster-landings-monthly-GoM
Figure 3. Monthly distribution of commercial spiny lobster landings in the Gulf of Mexico Region. Source of raw data: NOAA Fisheries (http://www.st.nmfs.noaa.gov/).

 

 

Economic recovery of Mississippi commercial fishing from natural and technological disasters

In order to understand the magnitude of the economic impacts of the natural and technological disasters during the past decade to the recreational and commercial fishing sectors, multi-year baseline economic information about each sector in all five Gulf states are currently being compiled from various secondary sources. Illustrative examples on how the time series-data were used in determining the economic recovery paths of the commercial and recreational fishing sectors are shown in Figures 1-3.  Using secondary annual data, economic recovery models were developed incorporating the direct economic impacts of Hurricane Katrina and the Gulf of Mexico oil spill to the Mississippi commercial landing values.

The annual Mississippi commercial landing values published by NOAA Fisheries (2017) adjusted for inflation are shown by the bars labeled as “allmsdef”. The line labeled as “nodisaster” plots the annual predicted commercial landing values without disasters (Figure 1). The vertical distances between the “allmsdef” bars and the “nodisaster” line show the direct negative economic impacts of the natural and technological disasters to the Mississippi commercial fishing sector. The bars show marked reductions in landing values after Hurricane Katrina and the Gulf of Mexico oil spill.

nodisasters
Figure 1. Deflated annual commercial landing values of all species in Mississippi and predicted landing values without disasters.

The economic recovery path shown by the line marked “nokatrina” plots the annual predicted commercial landing values without Hurricane Katrina (Figure 2). The vertical distances between the “allmsdef” bars and the “nokatrina” line show the annual direct negative economic impacts of the natural disaster to the Mississippi commercial fishing sector in 2005 and 2006. The economic recovery path suggests that it took at least two years for Mississippi annual commercial landings to return to the pre-Katrina trend.


Figure 2. Deflated annual commercial landing values of all species in Mississippi and predicted landing values without Hurricane Katrina.

The economic recovery path of the annual commercial landing values without the Gulf oil spill is indicated by the line labeled “nospill” (Figure 3). The vertical distances between the “allmsdef” bars and the “nospill” line indicate the annual direct negative economic impacts of the technological disaster to the Mississippi commercial fishing sector starting in 2010. The suggested economic recovery path implies that it might take more than two years for Mississippi annual commercial landing values to the pre-oil spill trend.

Figure 3. Deflated annual commercial landing values of all species in Mississippi and predicted landing values without Gulf oil spill.

Related Publications:

Posadas, Ben. Mississippi recreational and commercial fishing sectors: A decade after Hurricane Katrina. Mississippi-Alabama Sea Grant Consortium. News/Blog, Aug. 21, 2015.

Posadas, Benedict C. 2015. Economic Recovery of Recreational and Commercial Fishing Sectors from Natural and Technological DisastersMississippi Alabama Sea Grant Extension Program, Ocean Springs, Mississippi.

MAFES bulletin on Estimation of the Baseline for the Assessment of the Economic Impacts of the Gulf of Mexico Oil Spill to the Mississippi Commercial Fishing Sector

MAFES b1204 FRONT COVER

Our MAFES bulletin, “Estimation of the Baseline for the Assessment of the Economic Impacts of the Gulf of Mexico Oil Spill to the Mississippi Commercial Fishing Sector,” is now available on the MAFES website at http://www.mafes.msstate.edu/publications/bulletins/b1204.pdf.

Long-term trends in the combined monthly shrimp landings in the Gulf of Mexico states

monthly-commercial-shrimp-landings-pounds-gulfSource of raw data: NOAA Fisheries.

It seems that the combined Gulf states commercial shrimp landings during peak months are declining over time. Monthly shrimp landings during peak month in early 2000s were over 25,000,000 pounds (headless). There were pronounced dips in monthly landings in 2005-2006, 2008-2009, and 2010-2011. Hurricane Katrina caused massive damages in the commercial fleet in summer of 2005. Hurricanes Gustav and Ike also devastated the region in 2008.  The U.S. economy was in deep financial turmoil and prolonged recession in 2008 to 2009. And lately, the Deepwater Horizon oil spill in 2010 shut down the Gulf fisheries for sometime. Coastal restoration efforts are ongoing to restore the Gulf to its pristine conditions. Gulf Coast households and communities are also struggling to recover from the massive devastations caused by these recent natural and economic disasters.

monthly-commercial-shrimp-landings-pounds-mississippiSource of raw data: NOAA Fisheries.

Over-all commercial shrimp landings in the Gulf are still below baseline levels

In order to understand the magnitude of the long-term individual and joint economic impacts of recent natural and technological disasters to commercial fishing, multi-year baseline economic information are currently being compiled from various secondary sources. For commercial shrimp landings in the Gulf of Mexico states, gulf-wide and individual states landings data since 2010 were compared to baseline landings five years before Hurricane Katrina.  The chart below shows the percent of Gulfwide commercial landings from 2010 to 2015 as a percent of the baseline 2000-2004 commercial landings.

Gom-Shrimp-Landings-Percent-Pre-Katrina-Baseline

Continue reading “Over-all commercial shrimp landings in the Gulf are still below baseline levels”

Diesel fuel prices influence fishermen’s decision to go or not to go fishing

monthly-Gulf-diesel-fuel-prices

The chart above shows the long-term trends in the retail prices of diesel fuel in the Gulf of Mexico region. How did this trends impacted commercial fishing in the state and beyond?  This is the subject of graphic and econometric modeling efforts I am currently undertaking in determining the economic recovery paths of the state marine fisheries industries as a result of the recent natural and technological disasters.

Horticulture and Marine Economics Program Online Valuation Survey

The Coastal Research and Extension Center is Mississippi State University’s “southern exposure,” linking residents of the coastal region to the university. The center’s mission is to conduct research and education programs aimed at developing a better understanding and use of renewable and nonrenewable resources in south Mississippi. Its applied research and educational programs with biological, physical and social systems focus on enhancing the quality of life of residents of Mississippi and other Gulf states. Our priorities address the specific needs of diverse communities including the health and wellbeing of the people and responsible stewardship of unique natural resources.

This 6-point online valuation survey is limited to the assessment of economic benefits to households, industry and government institutions resulting from research, education and extension efforts of the Horticulture and Marine Economics (HME) program. The survey is a critical first step in conducting a future systematic assessment of the economic benefits resulting from this program. This online valuation survey will compile the following economic benefits received by households, private businesses, government offices and non-profit organizations resulting from the following research and extension efforts:

  1. Socio-economic impacts of nursery/greenhouse automation/mechanization
  2. Community economic and disaster preparedness
  3. Economic recovery from natural and technological disasters
  4. Saltwater fishing preferences of Mississippi lifetime sportsmen
  5. Direct marketing of food, seafood and outdoor tourism
  6. Economic impacts of the Deepwater Horizon oil spill
  7. Economic impacts of natural disasters on marine industries
  8. Economic impact analysis of programs and regulations
  9. Other horticulture, marine and coastal economic issues

Please answer all six questions at https://www.surveymonkey.com/r/hortmarine.

I truly appreciate your participation in this online valuation survey of my research and extension program.

Best regards,

Ben Posadas, Ph.D.
Associate Extension Research Professor of Economics
Mississippi State University
Email: ben.posadas@msstate.edu

Economic Impacts of the Deepwater Horizon Oil Spill on Mississippi Seafood and Commercial and Saltwater Recreational Fishing Sectors in 2010

oil_rig_offshore_waters

Posadas, Benedict C. 2015. Economic Impacts of the Deepwater Horizon Oil Spill to Mississippi Seafood, and Commercial and Recreational Fishing Sectors. Mississippi Agricultural and Forestry Experiment Station Bulletin 1218, Mississippi State, Mississippi.

This bulletin presents the results of an economic survey of the impacts of the Deepwater Horizon oil spill on business operations of Mississippi seafood and commercial and saltwater recreational fishing establishments in 2010. These primary data establish the cause-and-effect relationships between the associated economic impacts in affected economic sectors and the oil spill incident. The 331 Mississippi businesses that participated in the survey accounted for 25–65% of the total annual gross sales or employment in sectors included. The oil-spill-related closures of state and federal waters resulted in the shutdown of business operations of participating establishments, on average, for about 4.21 months. In 2010, the direct economic impacts of the oil spill resulted in a decline of almost one-half of the annual total sales and one-third of the total employment as compared with 2009.

Available for download at http://msucares.com/pubs/bulletins/b1218.pdf.

ECONOMIC RECOVERY OF COMMERCIAL FISHING INDUSTRY FROM NATURAL AND TECHNOLOGICAL DISASTERS

GOM_CountiesIn order to understand the magnitude of the economic impacts of the natural and technological disasters during the past decade to the commercial fishing industry, multi-year baseline economic information about the industry in all the five Gulf of Mexico states are currently being compiled from various secondary sources. Commercial Fishing corresponds to economic sectors 114111 (Finfish Fishing) and 114112 (Shellfish Fishing) in the North American Industrial Classification System (NAICS).

  1. Finfish Fishing comprises establishments primarily engaged in the commercial catching or taking of finfish (e.g., bluefish, salmon, trout, tuna) from their natural habitat.
  2. Shellfish Fishing comprises establishments primarily engaged in the commercial catching or taking of shellfish (e.g., clams, crabs, lobsters, mussels, oysters, sea urchins, shrimp) from their natural habitat.

Click the following LINKS to view the recovery path of the Commercial Fishing industry in all five Gulf States:

  1. Alabama  
  2. Florida West Coast 
  3. Louisiana 
  4. Mississippi 
  5. Texas 
  6. Gulf 

Click the following LINKS to view the recovery path of the Commercial Fishing industry by major species:

  1. Shrimp 
  2. Oysters 
  3. Blue crab 
  4. Menhaden 
  5. Foodfish 

ECONOMIC IMPACTS OF THE DEEPWATER HORIZON OIL SPILL TO THE MISSISSIPPI SEAFOOD AND COMMERCIAL AND SALTWATER RECREATIONAL FISHING SECTORS IN THE YEAR 2010

The results of an economic survey of the impacts of the Deepwater Horizon oil spill on business operations of Mississippi seafood and commercial and saltwater recreational fishing establishments in the year 2010 are presented. These primary data establish the cause and effect relationships between the associated economic impacts in affected economic sectors and the oil spill incident. The 331 Mississippi businesses which participated in the survey accounted for 25 to 65 percent of the total annual gross sales or employment in sectors included. The oil spill-related closures of state and federal waters resulted to shut-down in business operations of participating establishments, on average, by about 4.21 months. The direct economic impacts of the oil spill resulted to a decline in 2010 by almost one-half of the annual total sales and one-third of the total employment as compared to 2009

Read the summary of the report at http://www.coastal.msstate.edu/gomosimpacts.html.

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